SUMMER TRAINING PROJECT REPORT ON

“A STUDY OF FINANCE & TAXATION IN CORPORATE

SECTOR”

Submitted to the partial fulfillment of the requirement for the

award of the degree of
MASTER OF BUSINESS ADMINISTRATION
A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW
(2022-2024)

UNDER GUIDANCE OF: SUBMITTED BY:

DR. GAURAV BANSAL JANVI PAL
MBA III SEM
ROLL NO. : 2202310700035

R.D. ENGINEERING COLLEGE DUHAI, GHAZIABAD

(Affiliated to AKTU and Approved by AICTE)

1
 DECLARATION

I do hereby declare that this project work titled “A STUDY OF FINANCE & TAXATION IN
CORPORATE SECTOR” submitted by me for the fulfilment of the requirement for the award of
Master in Business Administration (MBA) is a record of my own research work. The report
embodies the finding based on my study and observation and has not been submitted earlier for the
award of any degree or diploma to any Institute or University.

Date:
Name: JANVI PAL
Roll No: 2200290700035

2
 ACKNOWLEDGEMENT

It is really a great pleasure to have this opportunity to describe the feeling of gratitudeimprisoned
in the core of my heart.
I convey my sincere gratitude to RD Engineering College for giving me the opportunity to prepare
my project work on “A STUDY OF FINANCE & TAXATION IN CORPORATE SECTOR”. I
am thankful to Prof. Dr. Gaurav Bansal for his guidance during my project workand sparing her
valuable time for the same. I express my sincere obligation and thanks to all the Faculties of
Department of Management Studies for their valuable advice in guiding me at every stage in bringing
out this report.
I am also thankful to my family for their kind co-operation which made my task easy.

(JANVI PAL)

3
 TABLE OF CONTENTS
Chapter Title Page No.

Certificate of Guide i
Declaration ii
Acknowledgement iii
Certificate from Employer iv
ABSTRACT Executive Summary 10-11
CHAPTER I • Introduction 12-16
• Importance Of Study
CHAPTER II • About Industry 17-40
• Overview of Company
• History
• Different Product/Services
• Organisation Chart
CHAPTER • 3.0 Introduction to Project 41-70
III 3.1 Project / Internship Summary
3.2 Purpose
3.3 Objective
3.4 Scope
3.5 Literature Review
3.6 Project / Internship Planning
3.6.1 Project / Internship Development Approach
and Justification
3.6.2 Project / Internship Effort and Time, Cost
Estimation
3.6.3 Roles and Responsibilities
3.6.4 Group Dependencies
3.7 Project / Internship Scheduling

4
CHAPTER • Problem Encountered and Possible Solutions 71-80
IV • Interpretation and Analysis of Internship / Project
• Conclusion and Discussion
• Limitation and Future Enhancement

5
CHAPTER V • Learning’s & Value addition during training 81-97
• Difference between practical exposure and theoretical work.
• Challenges faced by you during your internship.
• Usefulness of training should also be highlighted.

ANNEXURE • Bibliography 98-105

• Tables and Charts
• Photographs during Internship / Project work
• Plagiarism Report (should be under 15%) signed by Mentor
• Nalanda e-consortium Report signed by Mentor

6
ABSTRACT

7
 Executive Summer of Internship
The dream of ‘One Country-One Tax’ and India becoming an integrated market from an indirect tax
perspective has come into force from 1st July, 2017. The Constitution of India’s 101st Amendment
Act 2016 – has come into force on 8th September, and notification of the GST Council on 15th
September – the road to GST rollout is clear. Government is keen on introducing GST- the biggest
indirect tax reform. One of the biggest challenges is to train the indirect tax officials of both Centre
and State, as well as the traders. This study assesses the level of GST acceptance, awareness, and
particularly the level of filing of returns and reasons for not filing of returns in time under GST
among the traders.
Another part of the internship I have also worked on preparation and analysis of financial Books of
Accounts of the company named “WOKI COLLECTION” along with the filing of Income Tax
return and assessment and Appeal proceedings.
For this purpose I had to first record all the transactions and then prepare the particular ledgers and
then prepare the final accounts of the company. After preparation of the financial statements, return
was duly filed and intimation was generated on the completion of processing of the Income Tax
return. Due to the assessment notice issued by the assessing officer assessment proceedings were
initiated and due replies were filed and documentation was done and E-proceedings were conducted
and notice of demand and assessment order was passed on the completion of proceedings.
Further, we have mastered the registration processes under GST Act and FSSAI Act and Shop and
Establishment Act.
Also, in finance we undergone a training on the Portfolio management and using the Ratios for
financial analysis of the financial statements.
Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-
related transactions to determine their performance and suitability. Typically, financial analysis is
used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a
monetary investment.

• If conducted internally, financial analysis can help fund managers make future business
decisions or review historical trends for past successes.
• If conducted externally, financial analysis can help investors choose the best possible
investment opportunities.
• Fundamental analysis and technical analysis are the two main types of financial analysis.

8
 • Fundamental analysis uses ratios and financial statement data to determine the intrinsic
value of a security.
• Technical analysis assumes a security's value is already determined by its price, and it
focuses instead on trends in value over time.

Through this process I was also had some experience with auditing process also as I had to reconcile
and match the source vouchers with the recorded transactions. Apart from it I had also prepared the
Final accounts and also analyse the financial position of the company including ratios etc.
As I also have to give suggestions for Stock Trading of the company for the same the financial
analysis of the company became the most useful and effective tool to take proper and optimum
decision to increase their return with low investment.
This is an attempt to know how the theories can be applied to practical situation. As student of MBA
it is a part of study to undergo some project at a good institute or organisation.so for this purpose I
got an internship opportunity to pursue internship at Nitin Tyagi & Company. The first part of report
concentrates on introduction to internship and its importance followed by the overview of the project
and its details. The second part of the report concentrated on general overview of GOODS and
SERVICE TAX in India, various studies conducted on GST and how importantly it plays a role in
Indian economy which is followed by the GST structure in India. The third part explains about the
methodology of study such as sample size, techniques used, variables of the study, limitations of the
research etc. The fourth part is the important and core part of the report which deals with analysis of
data collected from the survey conducted and interpretations were drafted for every issue questioned.
The analysis of data has conducted in three phases, where the first phase is about general information
and transaction analysis, the second phase is about GST awareness and respective e-filing of returns
awareness among the traders / Tax payers which is great content to fulfil the objective of study. The
fourth part is concentrating on detail procedure of e-filing returns process under GST and
comparative analysis of registration and returns filing trends in the last Financial year. Based upon
the above conducted analysis through data and practices for filing and reconciling the GST returns
various finding and observations were identified and accordingly suggestions were drafted which I
feel that would help the Tax department and respective officials to take up some through some
actions to overcome problem faced by the Traders/ Tax payers to not file the returns in time.

9
CHAPTER - I

10
 INTRODUCTION
This report has prepared as a mandatory requirement of the internship program under the MBA
program at the KIET School of Management, KIET group of Institutions. This report is based on the
organization NITIN TYAGI & COMPANY. The Fellowship program at NITIN TYAGI &
COMPANY that this report is based on started from August 20, 2023 till October 02, 2023 – a
period of 45 days. The study is on different job roles and responsibilities at NITIN TYAGI &
COMPANY supervised by Mr. Nitin Tyagi, Owner of the company and this paper has been prepared
under the guidance of Dr. Ranchay Bhateja, Professor at KIET School of Management, KIET
group of Institutions as a part of the fulfilment of credits for the MBA program.
Internship is an on-the-job training programme offered to students to balance the gap between class
room theories and industry expectations. It is an on-field training programme, which may last from 2
months period. During the internship period, the candidate may be paid or not paid with monetary
benefits for the services rendered by him, but definitely compensated with work experience and real-
life learning that benefits his career in the long run.
An internship is a training opportunity which is provided to students, such as graduates or post-
graduates, to seek and feel the actual work experience and corporate culture before they enter any
sector as working professionals. Internship programme is one of the types of on-job training
programme, were the student gets a chance to experience the working environment, gets trained to
the practical work exposure, sees implementation of class room theories in the work field and
identifying the difference, coming with an appropriate opinion to overcome such gaps which
indirectly benefits the university or college to know the actual requirements of industry, and making
necessary changes in academics according to the industry needs so that students benefit
with better outcomes. Internship is a great opportunity even to employers to recognise the talents in
the market, as in the competitive environment and high rate of unemployment, finding a right person
for a right job has become a difficult task. This indirectly makes internship programme effective as
the employer can see a candidate’s potential and dedication towards his work and his skills,
strengths, weakness, etc.., throughout the internship period. An employer can encourage the right and
eligible candidates with pre-placement offer which will help his organisation to hire a suitable
candidate who can contribute to the organisation well.
Objectives of internship:
1. To get an idea about organisation working structure.
2. To gain knowledge about different departments in an organisation and their functioning.
3. To understand corporate culture and environment.

11
4. To identify various decision-taking levels in an organisational structure.
5. To implement class room learning practically and observing the gap.
Reasons for doing internship:
1. To get real-life experience and exposure towards corporate workings.
2. It’s an opportunity to assess our strengths and weaknesess.
3. Helps connect with professional people and opens door to corporate network.
4. Gives an opportunity to prove our self in performance.
5. Acts as a transformational tool to student to become employee.

12
 Importance Of The Study:

Managing money is at the root of all major decisions in business. As such, good financial
management transcends sector, industry and business type, making it one of the most-important
responsibilities of business leaders and directors.

Activities across every area of a business – from SMEs to global corporations – have an impact on
financial performance. Financial performance, in turn,
has an impact on financial sustainability, which has an impact on a company’s current and future
success. In order for a business to thrive, its finances – and its financial management – must be
closely evaluated and controlled by senior management.
Financial management is the specialised process of managing money in order to achieve business
goals. Undertaken by senior management – typically chief financial officers (CFOs) or vice-
presidents of finance, among others – it involves planning, directing, monitoring and controlling
organisational funds in order to make effective financial decisions. In essence, it seeks to apply
management principles to the financial structure of a business.

While ensuring a business is both successful and profitable are the main aims of financial
management, it also seeks to:
• support compliance and regulation adherence
• maximise profits, stakeholder returns and overall company value
• track liquidity and cash flow
• provide economic stability
• enable up-to-date financial reporting and supplies financial information and data to inform
KPIs
• develop financial scenarios to support forecasting
• uphold risk management efforts
While many organisations have in-house financial teams and managers, many also enlist the help of
financial institutions and other professionals to assist them with financial management.
Here are some Valuable insights which helped me to have a successful internship:

Set goals: When beginning your internship, create a clear, personal purpose for why you are there, so
you have a motivating factor to keep you focused on your internship.

13
Stay organised: Since employers assign interns with various tasks, it is helpful to have an
organisational system that works for you, such as using a calendar or agenda.
Be professional: While an internship is sometimes more casual than a job, it is still important to
remain professional and consider how you present yourself to others in the organisation.
Fill your downtime: Let your supervisor know if you are out of tasks so they can find something
else for you to do to keep you busy and productive with the company, allowing you to continue
learning.
Ask questions: As an intern, take advantage of your status as a student to ask your employer and
peers about areas you are having trouble understanding to show your motivation in learning more
about the industry.

14
CHAPTER - II

15
 About Industry
The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of
Parliament, viz. The Chartered Accountants Act, 1949 (Act No.XXXVIII of 1949) for regulation and
development of the profession of Chartered Accountants in the country. The Institute, functions under
the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the
largest professional body of Chartered Accountants in the world, with a strong tradition of service to the
Indian economy in public interest.

The affairs of the ICAI are managed by a Council in accordance with the provisions of the Chartered
Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council constitutes of
40 members of whom 32 are elected by the Chartered Accountants and remaining 8 are nominated by
the Central Government generally representing the Comptroller and Auditor General of India, Securities
and Exchange Board of India, Ministry of Corporate Affairs, Ministry of Finance and other stakeholders.

Over a period of time the ICAI has achieved recognition as a premier accounting body not only in the
country but also globally, for maintaining highest standards in technical, ethical areas and for sustaining
stringent examination and education standards. Since 1949, the profession has grown leaps and
bounds in terms of members and student base.

• Regulate the profession of Accountancy

• Education and Examination of Chartered Accountancy Course
• Continuing Professional Education of Members
• Conducting Post Qualification Courses
• Formulation of Accounting Standards
• Prescription of Standard Auditing Procedures
• Laying down Ethical Standards
• Monitoring Quality through Peer Review
• Ensuring Standards of performance of Members
• Exercise Disciplinary Jurisdiction
• Financial Reporting Review
• Input on Policy matters to Government

16
 TOP 10 CA FIRMS OF INDIA

The company started its journey way back in 1833 when William Welch Deloitte became a
professional accountant. In 1845, William Welch Deloitte and George Touche founded the company
by opening up its first-ever office in London, United Kingdom. The name of the company comes
from Mr. Deloitte’s last name, and in 1857, Deloitte partnered up with Thomas Greenwood, who was
an accountant, and thus, changed the company’s name to Deloitte and Greenwood.

As the company started to flourish, it opened up its first office in New York, the United States of
America, in 1880. Deloitte partnered up for the very first time with Haskins & Sells in 1905, after
which the two firms merged as well.
Deloitte is a universally popular and massive company. The company provides services on tax, audit,
risk management, consulting, financial advisory, and many more. The firm operates with the help of
its member companies across the globe. These member firms are said to operate within 150 nations.
On the other hand, these member firms are part of the UK domiciled private company Deloitte
Touche Tohmatsu Limited. All the member firms follow the rules and regulations of the company
where they are currently located. If you are interested to learn about Deloitte
Deloitte has developed the Auvenir technology. The technology was created internally, and the
technology was designed to replace the accountants and auditors like Deloitte. Auvenir takes the help
of cloud-storage, artificial intelligence, and machine learning to magnify the collaboration and
workflow between the clients and auditors.

17
Price water house Coopers, or PwC for short, is the world’s second largest accounting firm with over
750 offices in more than 150 countries. Its headquarters is located in the United Kingdom and dates
all the way back to 1849 with its founder Samuel Price. Obviously, PwC has expanded quite a bit
with a few mergers over its 150+ year existence.

The two most notable mergers happened in 1874 and 1998. In 1874 one of the original partners left
the small accounting firm leaving only Price and Waterhouse to resume the business. Thus, starting
in 1874 the firm was known as Price, Waterhouse & Co. Over one hundred years later PW merged
with Coopers & Lybrand to create the brand we know today as PricewaterhouseCoopers. And yes, in
print the “w” is always a lower case letter.

During the 1990s PwC grew rapidly and became one of the industry standards in the United States.
They also acquired many of Arthur Andersen’s Chinese client base after their collapse. Today, PwC
has been consistently ranked among the top 100 companies to work for by Fortune Magazine for the
last 11 years. They ranked number 74 in 2023.

PwC actively recruits college students across the country into their student programs. They have
many different tracks like Aspire, Challenge, Explore, Start, Elevate, Advance, and Launch. Each of
these programs is designed to give college students opportunities to learn, grow professionally, and
gain experience in the professional world. Not to mention, students are about 1000 times more likely
to be hired at PwC if they had an internship or a student program experience before.

18
KPMG is the fourth largest big four accounting firm employing 162,000 people. Their global
headquarters is located in Amsterdam although it was not originally founded there. William Peat
founded the company in London in 1891.

Through a series of mergers starting in 1925, KPMG started to take its modern form. In 1979
Klynveld Kraayenhof & Co. of the Netherlands, McLintock Main Lafrentz of the United Kingdom
and United States, and Deutsche Treuhandge sellschaft of Germany merged to form KMG. Later in
1987 Peat Marwick merged with KMG to form the modern KPMG.

In 1997 KPMG attempted to merge with PwC, but it was stalled in the court system and eventually
dropped. After the failed merger KPMG went on to divest much of its consulting and legal
businesses. Now it focuses on three main services: audit, advisory, and tax. KPMG has seen repeated
growth year over here and is viewed as one of the top accounting firms to work for. In fact, Fortune
Magazine rated KPMG highest out of all four big accounting firms in 2023 They were ranked
number 39.
KPMG’s recruiting process starts with colleges. They focus on getting to know students early in their
college careers with programs designed for each class year. They focus on helping students gain
access to their leadership training series, internships, and competitions. You can go to the student
section on their site for more information about finding a KPMG recruiting rep for your university.

It's global approach to service delivery helps provide value-added services to clients.
It’s differentiation is derived from a rapid performance-based, industry-tailored and technology-
enabled business advisory services delivered by some of the leading talented professionals in the
country. KPMG professionals are grouped by industry focus and our clients are able to deal with
industry professionals who speak their language. Our internal information technology and
knowledge management systems enable the delivery of informed and timely business advice to
clients.

19
Ernst & Young, also known as EY, is the third largest big 4 CPA firm with over 700 offices located
in over 150 countries around the world. Its global headquarters is located in the UK where Harding
and Pullein originally found it in 1849. Like all large accounting firms, EY went through a series of
mergers over the years.

There were several mergers between firms like Whinney Smith & Whinney, Ernst & Ernst, Arthur
Young & Co, and Broads Paterson & Co to form the fourth largest accounting firm in 1979. In 1989,
Ernst & Whinney merged with Arthur Young to create the modern EY.

Like the big four firms, EY saw growth and expansion in the 1990s and early 2000s in their
consulting and advisory businesses. This drew concerns from the SEC and other regulators at the
true independence of the big 4 public accounting firms and their clients. EY took a big step in 2000
when they were the first firm to officially and formally separate their consulting side from their
assurance side. Now EY is often viewed as one of the best accounting firms to work for and are
typically ranked on the top 100 best companies to work for by Fortune Magazine. They ranked
number 79 in 2015.

EY has developed a highly technical and advanced tax accounting and reporting program for
accounting professionals. It consists of three different courses starting with the basics of tax law and
ending with advanced income tax compliance. They courses are held at different EY locations
around the country.
EY makes a concentrated effort to find highly qualified and ambition college students to enroll in
their internship programs and leadership conferences. EY focuses on hiring a larger percentage of
their interns because it works. Think about it. They can train students and test them out for a trial run
during the internship. After they are fully trained and graduate college, they become full time team
members. It’s a great model that they take to colleges around the country.

20
BDO is an international network of accounting, tax and advisory firms which perform professional
services to clients throughout the country and around the globe.
The local knowledge of network member firms combined with the international expertise and strength of
our network ensures effective and efficient service delivery to all our clients in every country where BDO
is represented.

BDO was known as the Binder Seidman International Group, formed by respected firms that were
already well established in Canada, Germany, the Netherlands, the UK and the USA, and wished to
share and expand their knowledge in order to better serve their clients. In 1973 the network adopted the
name BDO, made up from the initials of the three founding European member firms: Binder (UK), Dijker
(Netherlands) and Otte (Germany). In 1988, a global structure was established and placed the BDO
acronym before each local member firm’s name.

The BDO story is an amazing one. At the end of 2018, our global organisation has grown to include
80,000 people working out of 162 countries & territories who’ve generated revenues of US$9 billion. Our
past achievements continue to be a strong foundation for us, but the world is changing, and we must
focus now on defining our future and becoming the BDO of tomorrow – today. This year’s GLOBAL
REVIEW aims to demonstrate and clarify how we’re going about achieving this.

BDO has been the recipient of a range of awards in the past year, recognising both our exceptional
quality standards and service delivery. Alongside a number of awards won by our firms, at global
level we were honoured to receive the IAB Network of the Year and the International Payroll awards
in 2015.

BDO India builds on foundations of quality and a business focused & result oriented approach of
servicing clients. Our Partners are reputed with being subject & industry experts and take pride in a work
culture that is both client-centric and knowledge driven.

21
As one of India's largest assurance, tax, and advisory firms, we are dedicated to shaping vibrant
ecosystems through sustainable business practices and innovative solutions. With over 7,500
professional staff across 17 offices, we provide robust compliance services and growth navigation on
complex business and financial matters through focused practice groups. We are based in all the
major cities from New Delhi, Ahmedabad, Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad,
Kochi, Kolkata, Mumbai, Noida and Pune, and we have affiliate arrangements in most of the major
towns and cities across country.

Grant Thornton is one of the world’s leading organisations of independent assurance, tax and
advisory firms. With more than 68,000 Grant Thornton people, across 147 markets, we are focused
on making a difference to clients, colleagues and the communities in which we live and work.
At Grant Thornton India, we adopt a differentiated approach to help our dynamic clients grow and
excel - strategically, operationally and financially, in both the domestic and international markets.
Our firm is a dominant player in the AIM listings market.

Over 7,500 people across our 17 offices are committed to helping dynamic organisations unlock their
potential for growth by fulfilling our simple promise to clients: robust compliance services where we
mirror the agility of our dynamic clients; growth navigation solutions where we give actionable
tailored advice to help our clients reach the next stage in their business plan.

At Grant Thornton, we offer a comprehensive range of advisory services to help you achieve your
goals. We help you create, transform and protect value. From finding ways to finance growth to
understanding how to manage risk and regulation; from identifying opportunities to optimise
operations, to getting the best from talent, our global network provides the expert support you need
to thrive in a fast changing world.

22
At RSM, we help clients overcome new challenges, embrace change and adapt to thrive. By working
together, creating deep insights, combining world-class technology and real-world experience, we
deliver understanding that’s unmatched, and confidence that builds. For a changing world. For the
future. For all.

RSM is a powerful Network of assurance, tax and consulting experts with offices all over the world.
As an integrated team, we share skills, insight and resources, as well as a client-centric approach
that’s based on a deep understanding of your business. This is how we empower you to move
forward with confidence and realise your full potential.

At RSM, we are here to support and advise you on a wide range of issues from audit and assurance,
consulting, tax, risk advisory, IFRS, restructuring, transaction and business and financial advisory
solutions. As well as these core services, around the world we offer a wide range of specialist
services, such as wealth management, IT consulting, legal advisory, forensic accounting and human
resource consulting. Our role is to support you to better understand your businesses, overcome
challenges and achieve your aspirations.
We put ourselves at the heart of your business where we can be most effective. As your long-term
adviser, we gain a deep understanding of every aspect of your business so we can respond with the
right expertise and insights at the right time. Wherever you are in the world, you will enjoy the same
seamless service, combining astute local knowledge with the global expertise of our most senior
professionals. We’re passionate about your success and about empowering you so you can face the
future with confidence.

As the leading provider of professional services to the middle market, our clients range from growth-
focused entrepreneurial businesses through to leading multi-national organisations across many
sectors and operating nationally and across borders.

23
S S Kothari Mehta & Company (SSKM) is chartered accountant firm established in 1953 in Kolkata
and later on expanded its base to New Delhi, Chandigarh & Mumbai as well. With its head office
now in New Delhi, the firm currently has experienced team of around 500 persons led by
management committee and supported by other partners and directors having rich professional
experience of up to 5 decades in their respective fields. Apart from our core offices, SSKM has a
PAN India presence through network of associates.

With over 7 decades of experience, our range of professional services include Audit & Assurance;
Risk Advisory & Internal Audit; Indirect & Direct Taxes; M&A and Transaction Advisory; IT Risk
Advisory; Accounting & Business Process Outsourcing and Regulatory & Compliances.

Our clientele ranges from prominent international clients to well- known domestic clients. The firm
is serving some of the top listed and unlisted companies, new age start-ups and have experience of
working with clients across various sectors like Manufacturing, Service, IT / ITES, Financial
Services etc.

S S Kothari Mehta & Company (SSKM) is chartered accountant firm established in 1971 with
offices in New Delhi, Kolkata & Mumbai. With its head office in New Delhi, the firm currently has
experienced team led by partners and directors having professional experience ranging from 20 to 50
years in their respective fields. Apart from our core offices, SSKM has a pan India presence through
network of associates. Our clients include diversified large and medium Businesses & multinational
promoters.

Ever since our foundation, SSKM has been guided by code of conduct and ethics of our profession
ensuring at all times highest professional standards to our clients. Our range of professional services
include Audit & Assurance ; Tax & Regulatory Services ; Business Advisory ; Accounting &
Business Support, IT Risk Advisory etc.

24
The Saudi National Bank (SNB) is the largest financial institution in Saudi Arabia and one of the
largest powerhouses in the region. SNB plays a vital role in supporting economic transformation in
Saudi Arabia by transforming the local banking sector and catalyzing the delivery of Saudi Arabia’s
Vision 2030. Its strategy is closely aligned with the Vision’s programs. SNB also leverages its
position as the largest institutional and specialized financier in the Kingdom to support the
Kingdom’s landmark deals and mega projects.

SNB’s vision is to be a premier financial and banking service provider locally and regionally through
the fulfilment of strategic aspirations: to be number one in revenues, number one in profit, the best in
customer service, the best digital bank, and the employer of choice, and the best Shariah-compliant
products service provider in the world. The Bank’s effort to achieve these aspirations is reflected in
achieving record annual profits for the eighth consecutive year.

SNB seeks to leverage the expanded scale, reach, and digital capabilities to provide enhanced
products and deliver unparalleled customer experience. SNB robust balance sheet, resilient business
model, and healthy liquidity position enhance the Bank’s capability to compete locally and
regionally, and to facilitate trade and capital flows between the Kingdom and regional and global
markets.

SNB delivers best-in-class digital solutions, drive homeownership through growth in residential
finance, foster MSME development and lending, and seeks to be the foremost trusted partner for top-
tier Saudi corporates and institutions to support the Kingdom’s mega deals and projects, and to be
the biggest provider of Shariah-compliant products for all segments. The Saudi National Bank is a
leader in treasury and capital markets, and it owns both NCB Capital and Samba Capital &
Investment Management, who, together would form the biggest asset manager, brokerage and
investment bank in Saudi Arabia.

25
Luthra & Luthra Law Offices (the “Firm”), was an established Corporate Law Firm of the early 90s,
which coincided with India’s economic liberalization, and soon after its inception, it emerged as a full-
service law Firm, with the acquisition of Chandhoke Sharma & Sondhi.

With “integrity” as its foundation stone, Mr. Rajiv Luthra built the Firm with a passion to serve its
clients’ interests with utmost dedication and professionalism, and invested in its people, such that,
today a number of its current Partners are homegrown!

Rajiv Luthra was a great visionary and an even greater leader, who, as the Managing Partner of the
Firm, led his team to also adopt a forward-looking approach towards the practice of law, combining
both, conventional practice areas and emerging sectors, thus, setting benchmarks and high technical
standards within the fraternity. He set examples by personally involving himself in understanding
clients’ businesses across diverse sectors and jurisdictions and educated members of the Firm to be
known for their proficiency in identifying and mitigating risks by providing exceptional legal guidance
and assistance to a wide range of domestic and international clients.

Over the years, Luthra & Luthra Law Offices assisted numerous multinational corporations in setting
up their presence in India and navigated skillfully through the complex Indian legal system.

In 2018, Luthra & Luthra Law Offices went through a complete re-branding exercise and was
rechristened “L&L Partners Law Offices” however, in 2021-22, it chose to somewhat return to its roots
and be called “Luthra and Luthra Law Offices India”

Today, Luthra and Luthra Law Offices India has amassed a massive amount of knowledge capital that
has been built in the passing of every year, since its inception and it vast experience and comprehensive
industry focus, distinguishes it from other law firms.

26
 Overview of The Company

Nitin Tyagi & Company is one of the best CA Firms in Ghaziabad that provides a wide range
of financial and advisory services all over India and across the world. As part of Nitin Tyagi &
Company, we work with the professionals and organizations on their most challenging
problems and create real impact.
Being the best Chartered Accountants in Ghaziabad with over 3 years of experience, we have
been delivering accurate, relevant and timely information to the decision-makers using
industry expertise. At Nitin Tyagi & Company, we come together and face challenges in such a
way that it drives lasting change for our clients. We create powerful solutions to make a
positive impact day by day. Furthermore, our insights and quality service helps for building
trust and confidence among stakeholders.
We consider that working together makes problems easier to deal with. We have built a
multicultural network of problem solvers to support you in managing according to your values.
Nitin Tyagi & Company has been one of India’s prominent Chartered Accountancy firms
providing wide array of financial and advisory services to numerous reputed Indian companies
having partners who have expertise of more than three years in this Industry. We believe in
delivering accurate, relevant, and timely information to the decision-makers using industry
expertise.

At Nitin Tyagi & Company, our purpose is building a better working world. The insights and
quality services we provide that helps for building trust and confidence among stakeholders. At
Nitin Tyagi & Company, every client is unique and that is why we believe in providing
customized services for which we always discuss client’s needs and tailor our services to meet
those specific needs. We help companies to stay compliant and lawful. We aim at applying
27
intelligence and expertise by providing realistic solutions to complicated business scenarios
using analytical skills, functional expertise and intensive training.

Our consulting focus and core competencies lie in the areas of taxation, auditing, accounting,
and financial advisory.

Our Services:

AUDIT & ASSURANCE

Nitin Tyagi & Company provide a comprehensive range of services including Statutory Audit,
Internal Audit, Tax Audit, and GST Audit to help businesses manage risk and maintain
compliance. Our Audit Methodology is based on the Auditing Standards issued by the ICAI
which are converged with the International Auditing Standards. We have experienced
professionals who have the knowledge and expertise to deliver high-quality and reliable
assurance services. We provide our clients with a comprehensive, cost-effective, and tailored
solution to meet their individual needs. The Audit is the process of evaluating the accounting
entries present in the financial statement of the company. The audit checks the accuracy of the
financial reports. Assurance is the process of analyzing and used in the assessment of
accounting entries and financial records.
The primary purpose of assurance is to check the accuracy of financial reports. It also provides
assurance to all the stakeholders that there is no misrepresentation done in financial records, no
misuse of funds, no fraud, and no fraudulent activities done in a company or done by the company.
An audit aims to provide an objective, independent examination of the financial statements, which
increases the value and credibility of the financial statements produced by management. Hence, it
increases the user's confidence in the financial report, reduces investor risk, and consequently
reduces the cost of capital.

TAXATION
The evolution of the regulatory framework around taxation has been very complex. The main
reason for this is the increase in cross-border trade models. Managing this complexity has
become business critical to maximizing value from all key business decisions. We ensure that
we will add value to your business by providing you with the best direct tax indirect tax advice
and assistance while ensuring your compliance.
28
Nitin Tyagi & Company works with you to complete tax duties accurately, efficiently, and on
time using strict procedures. Taxation services in india are provided with great care and
attention. The need and budget of the client along with the value of time are a few key points
that we consider when offering taxation services in india to our clients. We not only give
advising on income tax planning, filing annual returns etc, but at the same time, we also keep
in consideration your requirements and budget so that you obtain a highly satisfactory service
cost effectively.

Our team of professional under the taxation department has great expertise in offering you
perfect solutions to your queries. With an ever continuing determination and increasing
experience in dealing with taxation issues, our skilled team will offer you the best possible
solutions as we understand how vital tax planning is for an individual or organization. We
offer complete range of customized taxation services designed especially keeping in mind the
need and requirement of the clients all across the globe.

When picking up any service from Auditorsindia, you will acknowledge that we adopt the
combination of latest and efficient taxation service software's in order to keep the results
balanced and highly productive.The business needs more than simply tax planning advice from
their tax consultants.
• We possess a unique feature of being attentive to the requirements and goals of our
clients, our ability to bring good change, and our reputation for upholding quality
and openness.
• As a result, we do all to further strengthen our position as an expert tax advisor.
• Our experts use their accounting skills for income taxes, in-depth knowledge of
technology, and operational model choices to help customers in upgrading their tax
compliance and reporting methods.
• Furthermore, we offer a variety of tax services including tax planning, tax reporting,
and tax provision drafting.
• Hence, Nitin Tyagi & Company has a dedicated team of tax specialists that will help
you and your company in achieving the targeted goal of your business in direct tax
indirect tax.
Our Offerings:
• Business Tax Services

29
• Indirect Tax Compliance

30
 • Transfer Pricing
• Merger And Acquisition
• Valuation Services
• Personal Tax Services

INDIRECT TAX
Consumers pay indirect taxes when they purchase goods and services, as opposed to direct
taxes such as income tax and corporate income tax, which taxpayers pay directly to the
government. Intermediaries, such as retailers, collect indirect taxes from consumers who bear
the ultimate financial burden of taxes. Sales tax, consumption tax, value-added tax (VAT), and
goods and services tax (GST) are examples of indirect tax laws levied on the sale of goods and
services.
Our Indirect Tax Service area includes-
• Perform thorough investigations from an indirect tax view.
• Provide technical help and representation services during departmental audits, conduct
health-check, and guarantee that tax compliances are followed.
• help in developing and filing representations to Advance Governing bodies, as well as
additional tax or government authorities.
• Conduct management/staff training to ensure that everyone is aware of the relevant
Indirect Tax laws and GST regulations.

DIRECT TAX
We have the capability to combine our unique knowledge and experience with our people and
technology platform making us the perfect partner for your tax needs. Nitin Tyagi & Company
is competitive in business tax, international tax, and transactional tax.
• Our tax professionals can also help identify solutions for tax services related to
individuals, compliance, reporting, and legal issues. We invite you to use our
experience, knowledge, and business understanding to help you succeed. As you
navigate your changing responsibilities, we will help you move forward with
confidence in your business during difficult times.

31
INTERNAL AUDIT

Internal Audit is the independent, objective assurance and consulting activity designed to add
value and improve an organization’s operations.

Our Internal Audit Approach: -

A successful internal audit function should add value to the entire organization, as well as
provide assurance to stakeholders. It should be effective, dynamic, and capable of addressing
upcoming challenges, and even more importantly, it should provide you with clarity and a true
understanding of your business.

Nitin Tyagi & Company provides you with a flexible, tailored, and effective risk-based
approach. We understand just how crucial it is to build an internal audit function that is
effective and adds to the overall value creation in your organization.

We can provide you with advice on:

• Regulatory change
• Technology and business innovation
• Governance
• Risk management

STATUTORY AUDIT
The principal task of the statutory audit is to verify that the financial information presented in
the company’s financial statements is accurate and in accordance with the law.

Our Statutory Audit Approach: -

The foundation of the service we deliver is a natural blend of compliance and procedures. We
are experts in the application of audit methods and techniques and apply our expertise to offer
precision and economy to audit.

We provide you with advice on:

• Compliance with regulations

• Accounting treatment with respect to complex transactions

32
 • Control and processing system

ADVISORY SERVICES
Nitin Tyagi & Company is one of the leading CA firms that serves Tax and Advisory Services
in Ghaziabad. Responsive business advice may help you survive in today’s fast changing
environment. We have built a team of Advisor in Ghaziabad that provides comprehensive
advising services to unlock and maintain value in acquisitions and mergers, restructuring,
investigations, and disputes.

• Advisory services is a consulting activity that adds value and improves the daily
operations of a company. It gives insight into an organization’s culture, policies, and
processes while additionally supporting oversight of management by checking internal
controls such as operational effectiveness, risk mitigation controls, and compliance with
relevant acts and rules. It is vital in improving a company’s operations, corporate
governance, and accounting systems.
• Nowadays, almost every second business faces complicated accounting problems like
acquisitions, consolidations, debt and stock offers, restatements, GAAP conversion,
treasury, hedging, and other more. These significant problems may interrupt the
business’s day-to-day operations. To overcome these and help many other firms grow,
we serve as an Indirect Tax Advisor in Ghaziabad Extension. Our team works with
customers to help them achieve compliance by advising them on how to manage their
financial reporting procedures and ensuring that accounting operations fit the business’s
objectives.

• As a result, our best financial advising team makes use of management techniques to
improve the efficiency of operations by identifying and addressing problems in short
order. Furthermore, our Transaction Advisory Services experts provide guidance to
customers at all stages of the transaction life cycle. We try to create a unique offering
that emphasizes maximizing profit by using the power of our analytical insights and
diverse professional experiences.

33
BUSINESS SET UP ADVISORY

The value of any business are depends upon two factors: future profits and the risk associated
with such profits. Our in-depth expertise in financial modelling and forecasting gives you
assurance that the information underlying for our business valuation is accurate and reliable.

We assists large global multilocational corporate in setting up shared accounting centre in

India. shared accounting service centre will bring efficiency in operation and planning and
reduces operational cost , With establishment of centralized shared service centres CFO and
CEO can focus on major global financial and expansion planning for the corporate .

We associate with leading information technology corporate to support in information

technology in setting up of Global shared service centres for the clients, and ensure that setting
up work is complete within stipulated time and assist client in all respect in initial set up.

We assist clients in full set up including initial recruitments as per advise of clients.

We handles, manage and solve complex corporate problems with ease. Apart from normal
accounts, taxation, auditing, and various corporate outsourcing services , Partners of firm are
also well equiped and experienced as corporate consultant providing business transformation
services to enhance profitability of the company.

We provides business advisory and corporate consulting services to sick units under SME
categories and undertakes revival services through business transformation process.

As a part of business set up and advisory services, we help our clients from the point of
business incorporation to business processes, improvement, financial management, structuring,
fund raising and organizational development.

CORPORATE COMPLIANCE CONSULTING

Nitin Tyagi & Company is the best consultancy company in Ghaziabad that completely
understands the need of having a systematic approach for Corporate Compliance Consultancy
Management.

34
We help businesses in locating and addressing their legal and regulatory Corporate Compliance
Consultancy needs as well as putting in place a compliance management system for effective
monitoring.

With our best-in-class Corporate Compliance Consultancy Services, your organization will be
more informed, more responsive, and more effective.

We will provide data and analytically generated insights on entities, principles, and
procedures.

Being the best consultancy company in Greater Ghaziabad West, we take on the responsibility
for your company’s financial compliances by Risk Control Matrix, Delegation Of Authority,
Listing Compliance, Corporate Governance India framework, and carry out internal audit
services proceedings on your behalf.

By doing this, we guarantee that all agreements are carried out on time in an effective and
efficient manner.

As a result, these solutions have the benefit of continuously recording and monitoring your
actions and data. This constant monitoring guarantees that everything continues to comply with
the requirements set out by the law, security, or industry.

The progress generated may also be monitored by Compliance Software to ensure that it is
meeting user and customer expectations.

ACCOUNTING & PAYROLL PROCESSING

We are the best consultant company in Ghaziabad that will increase productivity, save
expenses, and handle your data with confidentiality. We offer accounting and payroll services
customised according to your needs. We provide separate full time or part time accountants as
per requirement of client’s business and work, while client can contact our accountants
provided by us for any clarification. Moreover, in case if client need any additional MIS,
Client can have it from our senior accountants and managers who are qualified Chartered

35
Accountants , Indian CPA,s.

36
Our Accounting services includes-
• Keeping accounting records that comply with global accounting standards.
• Help with different accounting procedures, such as the required yearly inventory
count for local compliance.
• Preparation of basic annual reports, customised annual reports, business income tax
returns and tax balances, other returns and parafiscal levies, and per year financial
statements as needed.
Furthermore, our Payroll Services include-
• Preparing employee payrolls, which includes calculating salaries and
personal income tax, social insurance, health insurance, and unemployment
insurance contributions.
• Generating transfer and payment orders that correspond to the salaries of the
employees.
• preparing and submitting yearly and monthly tax returns.
• Employee registration and deregistration with relevant social institutions.
• generating computations for further contracts as requested by the client.

CFO SERVICES

Whether you’re starting out, growing up, or intend to move on, a business finance advisor will
assist you in regaining control and speeding up the process of making decision with
confidence. Our CFO advisory services give you that option.

The right CFO consultant can assist you identifying and unlocking growth opportunities in
your business through deep analysis, reporting, and strategy.

For those on an upward trajectory, you may need CFO services that provide someone to step in
and lead the finance function as your business scales, freeing you up to manage growth.

We assists MNC, coming to India in strategic planning and management of their affairs as
temporary CFO/CEO Services in India during initial set up as per requirement.

37
We assists foreign corporates in CEO/CFO/Directors/ Sr Top executive search and
recruitments.

CFO Services was first introduces in India by partner of the firm as consulting services during
2004.

Complete establishment with all legal compliances and all level recruitments as per client's
need, one years initial special set up services including contracts/agreements with venders as
per requirement of client.

Finance arrangement and management as Virtual CFO Services in Bangalore -India.

Authorized signatories facilities can be provided to facilitate client's business in India.

Strategic growth plan and assistance in implementation for desired results.

Assistance in getting Sr professionals - Full time/part time CFO/CEO Services in Bangalore-

India

Assists International accounting Firms / financial consultants /project consultants, Bankers as

CFO/CEO in India on behalf of their clients in India. Normally we takes two to five weeks in
entire selection process of top position for reputed global groups.

Assistance in External commercial borrowings(ECB) from foreign Bankers/Financial

Institutions/Private sources.

Foreign Investors looking for financial / Technical joint-ventures in India in IT and Non IT
corporates may write for joint-ventures, partner search, Due diligence,

Indian CFO search for global corporate, we assist global corporate in their search of Indian
CFO for India and CFO for corporate offices abroad. We provide CFO search for requirements
in Asia and Europe.
38
Our Outsourced CFO controllership services assists new foreign small and medium size
corporate in planning and organising their finance and other resources efficiently at best
affordable prices of Finance Manager.

Our Outsourced CFO services assists CFO/CEO/Directors abroad in all their planning and
management functions and will keep in touch with clients regularly on daily, weekly bases as
per requirement, we manage and deal with Banks and Financial Institutions in India on behalf
of clients.

CFO/COO recruitments /search : we assists top management in their search for top
management for the organization, for some time we also helps client and candidate during
transition period to ensure that client work is taken cared well and organization is not without
head of department (HOD), This is our exclusive search of CFO/COO for particular MNC
client , Interviews and search of top professional is our continuous process. After
understanding requirement of clients and candidate we depute one final selectable candidate fit
for the clients. Our this CFO/COO selection process helps clients and candidate to save their
time and puts additional responsibilities on us to match the requirement perfectly. We provide
limited selectable profiles which otherwise and normally will not be seen on any job portals.

Our Outsourced CFO services assists CFO/CEO/Directors abroad in all their planning and
management functions and will keep in touch with clients regularly on daily, weekly bases as
per requirement, we manage and deal with Banks and Financial Institutions in India on behalf
of clients.

Our team works with expanding businesses on an ongoing basis to bring clarity to the numbers
and identifying strategic opportunities for the future of your business.

39
 ORGANISATIONAL STRUCTURE

SENIOR PARTNERS (2)

JUNIOR ASSOCIATES (2)

Senior
Manager Senior
Senior Senior Consulting
Audit Manager Project Manager
Finance Manager

Junior Managers

ARTICLES
&
INTERNS

40
CHAPTER-III

41
 Introduction to Project

Description of Project

I joined as an Intern Finance Executive at Nitin Tyagi & Company for 45 days. So, there I have to
perform various tasks which are helping me to enhance my skills at work place during my internship.
In Nitin Tyagi & Company, I learn and understand various works which are as follows:

• Financial Analysis
• Capital Budgeting Decision & Capital Structure Decision
• Stock Analysis & Trading
• Corporate & Individual return Filing & Computation
• Preparation Of Final Accounts
• Consolidation of Financial Statements
• Handling Financial Data using Tally Prime Software
• ESIC& PF Settlement & Withdrawal
• Filing of GST returns & Preparation of Reconciliation
• Registration under-
1. GST Act
2. ESIC & PF Act
3. Income Tax Act
4. FSSAI Act
5. Shop & Establishment Act
• Auditing

Project Responsibilities

My day-to-day responsibilities at Nitin Tyagi & Company are to firstly report to the Chartered
Accountant then they assign me the daily work to perform at the office. I was inducted as a team
member in various audit and consulting assignment where my job and responsibility included
vouching, preparation of working papers, preparation of preliminary trial balance and financial
statement, filing of e-returns for taxation purpose and gratuity fund calculation. All these activities
that I have performed during my internship programme are the parts of the different services offered
by the organization to its customers. Thus, these activities are the components/part of the
organizational activities which aided in providing services to its clients/customers.

42
GOODS & SERVICES TAX
GST is defined as any tax on supply of goods and services, other than on alcohol for human
consumption. In brief, before GST came into existence tax was levied at two-tax system, one is on
sale value or about invoice amount, and second one is on the value-added amount under value added
taxation. Now Goods & Services Taxes is destination-based and input tax credit system (ITC) paid at
previous stage of purchases and it can be set off right from the manufacturer to the end users. In the
supply chain of goods and services, value added will be taxed and ultimate burden tax to be paid by
the final consumer.
1. The GST shall have two components: one levied by the Centre (here in after referred to as Central
GST), and the other levied by the States (here in after referred to as State GST).
2. The Central GST and the State GST are to be paid to the accounts of the Centre and the States
separately
3. The Central GST and the State GST would be applicable to all transactions of goods and services
made for a consideration except exempted goods and services, goods which are outside the purview
of GST.
4. Since the Central GST and the State GST are to be treated separately; taxes paid against the
Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be
utilised only against the payment of Central GST. The same principle will be applicable for the State
GST.
5. The administration of Central GST to the Centre and for State GST to the States would be given.
6. To the extent feasible, uniform procedure for collection of both central GST and the State GST
would be prescribed in the respective legislation.
7. The taxpayer would need to submit periodical returns, in common format 42, introducing GST and
its impact on indian economy, as far as possible, to both the Central GST authority and to the
concerned State GST authorities.
8. Each taxpayer would be allotted a PAN-Linked taxpayer Identification Number with a total of
13/15 digits.
This would bring the GST PAN-Linked system in line with the prevailing PAN-based system for
Income Tax, facilitating exchange and taxpayer compliance.
GST is widely seen as the most important and far-reaching indirect tax reform that will, potentially,
have an impact on almost all industries and businesses since it will create a common Indian
marketplace and reduce the cascading effect of taxes. It will subsume all indirect taxes and create
just one rate for the entire nation. GST will have a profound effect on the way business is conducted

43
in India and the way prices are determined. The legislation will affect the pricing of goods and
services, supply chain optimisation, accounting and tax compliance systems, as also the tax structure,
tax incidence, tax computation, tax payment, compliance, credit utilisation and reporting. In short,
the present indirect tax system, with all its inefficiencies, will be completely overhauled. GST will
create a wider tax base, which will lower tax rates. Not only will the multiplicity of taxes be
eliminated and the tax structure rationalised, compliance procedures will also become easier.
Additionally, the automation of compliance procedures (which comes under the domain of the
Digital India initiative) will reduce errors and increase efficiency. GST will enable the digital
industry business initiative to take root by providing a uniform tax rate and standard regulations
across the nation. This will enhance ease of doing 18 business, and will allow start-ups, online
market places and the retail sector to flourish. These sectors are also seen as major job creators. With
GST roll-out, industries in these domains can expect huge gains, which will, in due course of time,
lead to more jobs and a higher GDP. The roll-out of GST has already been delayed, largely due to
lack of political consensus. The smooth passage of the Bill is deemed crucial for the success of mega
economic and social projects, such as Digital India and Start-Up India. The government is now
hoping to kickstart the initiative on April 1, 2017. That leaves very little time for companies to
upgrade their accounting systems and ERP software to comply with the new tax regime. Some
companies have already come out with GST-ready software offerings and suites that will help
companies migrate smoothly to the new tax regime, and enable them to integrate the older financial
structure with the new one seamlessly. All stakeholders are now waiting with bated breath.

44
Goods & Services Tax Mechanism

GST will eliminate the around 16 different types of taxes from regime which were levied by central
and state government before the GST Act has been implemented in which central taxes (excise,
surcharges, service tax, central sale tax etc..,) and state levied tax (VAT, Octroi, luxury tax,
entertainment tax, advertisement tax, cess and surcharge etc.,).
The GST in India is divided into three types CGST, SGST, IGST. If the transaction of goods or
services belongs to intra-state, then CGST and SGST are levied and equal promotional rate and, if
the transaction belongs to inter-state then IGST is attracted. The consolidated rate of CGST and
SGST will be equal to the rate of IGST.

45
VOUCHING

Vouching is the act of checking evidential documents to find out errors and frauds andto know the
authenticity, accuracy and reliability of books of accounts.

The main objectives of vouching are:

• To examine the accounting entries recorded in the books of accounts with reference to
documentary evidence known as vouchers.
• To examine the authenticity of the transactions recorded in the books of account.
• To examine the adequacy and reliability of documentary evidence

Vouching is the backbone of auditing: Main aim of auditing is to detect errors and frauds for proving
the true and fairness of results presented by income statement and balance sheet. Vouching is only
the way of detecting all sorts of errors and planned frauds. So, it is the backbone of auditing.

Vouching is the essence of auditing: Auditing not only checks the accuracy of books of accounts but
also checks whether the transactions are related to business or not. All the transactions are performed
after the prior approval of concerned authority or not, transactions are real or not because an
accountant may include fictitious transactions to commit frauds. All these facts can be found with the
help of vouching. So, vouching is essential for auditing.
Vouching is important to see whether evidences are correct or not: An auditor checks the books of
accounts to detect errors and frauds. Frauds may be committed presenting duplicate vouchers. All the
small and big amounts of frauds can be detected with the help of vouching. So, all the evidential
documents and records are to be checked carefully and in detail by an auditor which is the scope of
vouching.

46
 Auditing
Audit is an important term used in accounting that describes the examination and verification of a
company’s financial records. It is to ensure that financial information is represented fairly and
accurately.

Also, audits are performed to ensure that financial statements are prepared in accordance with the
relevant accounting standards. The three primary financial statements are:

• Income statement
• Balance sheet
• Cash flow statement

Financial statements are prepared internally by management utilizing relevant accounting standards,
such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting
Principles (GAAP). They are developed to provide useful information to the following users:

• Shareholders
• Creditors
• Government entities
• Customers
• Suppliers
• Partners

Financial statements capture the operating, investing, and financing activities of a company through
various recorded transactions. Because the financial statements are developed internally, there is a
high risk of fraudulent behavior by the preparers of the statements.

Without proper regulations and standards, preparers can easily misrepresent their financial
positioning to make the company appear more profitable or successful than they actually are.

Auditing is crucial to ensure that companies represent their financial positioning fairly and accurately
and in accordance with accounting standards.

47
Performed by external organizations and third parties, external audits provide an unbiased opinion
that internal auditors might not be able to give. External financial audits are utilized to determine any
material misstatements or errors in a company’s financial statements.
When an auditor provides an unqualified opinion or clean opinion, it reflects that the auditor
provides confidence that the financial statements are represented with accuracy and completeness.
External audits are important for allowing various stakeholders to confidently make decisions
surrounding the company being audited.
The key difference between an external auditor and an internal auditor is that an external auditor is
independent. It means that they are able to provide a more unbiased opinion rather than an internal
auditor, whose independence may be compromised due to the employer-employee relationship.
I prepared audit working papers simultaneously while doing vouching. The doubtful
matters/transactions/entries were noted on the working papers. The entries without supporting
documents and evident were noted down. Similarly, transactions/entries that require thorough
checking of its supporting documents such as memorandum of understanding (MoU), agreement
papers, insurance policies etc were noted for the purpose of reminder for checking of these
supporting in detail later. It was necessary to prepare working papers while doing vouching.
However, I could not learn the way of coding and indexing of working papers for the purpose of
filing and referencing and cross referencing during report writing due to limited duration of my
internship programme. I prepared working papers for “WOKI COLLECTION & TASHU
GARMENTS”

48
 Financial Analysis
Financial analysis is the process of examining a company’s performance in the context of its industry
and economic environment in order to arrive at a decision or recommendation. Often, the decisions
and recommendations addressed by financial analysts pertain to providing capital to companies—
specifically, whether to invest in the company’s debt or equity securities and at what price. An
investor in debt securities is concerned about the company’s ability to pay interest and to repay the
principal lent. An investor in equity securities is an owner with a residual interest in the company
and is concerned about the company’s ability to pay dividends and the likelihood that its share price
will increase.

Overall, a central focus of financial analysis is evaluating the company’s ability to earn a return on
its capital that is at least equal to the cost of that capital, to profitably grow its operations, and to
generate enough cash to meet obligations and pursue opportunities.

Fundamental financial analysis starts with the information found in a company’s financial reports.
These financial reports include audited financial statements, additional disclosures required by
regulatory authorities, and any accompanying (unaudited) commentary by management. Basic
financial statement analysis—as presented in this reading—provides a foundation that enables the
analyst to better understand other information gathered from research beyond the financial reports.

The primary financial statements are the statement of financial position (i.e., the balance sheet), the
statement of comprehensive income (or two statements consisting of an income statement and a
statement of comprehensive income), the statement of changes in equity, and the statement of cash
flows.
The primary purpose of financial reports is to provide information and data about a company’s
financial position and performance, including profitability and cash flows. The information presented
in the reports —including the financial statements and notes and management’s commentary or
management’s discussion and analysis—allows the financial analyst to assess a company’s financial
position and performance and trends in that performance.

The balance sheet discloses what resources a company controls (assets) and what it owes (liabilities)
at a specific point in time. Owners’ equity represents the net assets of the company; it is the owners’

49
residual interest in, or residual claim on, the company’s assets after deducting its liabilities. The
relationship among the three parts of the balance sheet (assets, liabilities, and owners’ equity) may be
shown in equation form as follows: Assets = Liabilities + Owners’ equity.

The income statement presents information on the financial results of a company’s business activities
over a period of time. The income statement communicates how much revenue and other income the
company generated during a period and what expenses, including losses, it incurred in connection
with generating that revenue and other income. The basic equation underlying the income statement
is Revenue + Other income – Expenses = Net income.

The statement of comprehensive income includes all items that change owners’ equity except
transactions with owners. Some of these items are included as part of net income, and some are
reported as other comprehensive income (OCI).

The statement of changes in equity provides information about increases or decreases in the various
components of owners’ equity.

Although the income statement and balance sheet provide measures of a company’s success, cash
and cash flow are also vital to a company’s long-term success. Disclosing the sources and uses of
cash helps creditors, investors, and other statement users evaluate the company’s liquidity, solvency,
and financial flexibility.

The notes (also referred to as footnotes) that accompany the financial statements are an integral part
of those statements and provide information that is essential to understanding the statements.
Analysts should evaluate note disclosures regarding the use of alternative accounting methods,
estimates, and assumptions.

In addition to the financial statements, a company provides other sources of information that are
useful to the financial analyst. As part of his or her analysis, the financial analyst should read and
assess this additional information, particularly that presented in the management commentary (also
called management report[ing], operating and financial review, and management’s discussion and
analysis [MD&A]).

50
A publicly traded company must have an independent audit performed on its annual financial
statements. The auditor’s report expresses an opinion on the financial statements and provides some
assurance about whether the financial statements fairly present a company’s financial position,
performance, and cash flows. In addition, for US publicly traded companies, auditors must also
express an opinion on the company’s internal control systems.

Information on the economy, industry, and peer companies is useful in putting the company’s
financial performance and position in perspective and in assessing the company’s future. In most
cases, information from sources apart from the company are crucial to an analyst’s effectiveness.

I have done the Financial Analysis of WOKI COLLECTIONS & TASHU GARMENTS and help
them in taking the proper and optimum decision in operating the business by analysing various
aspects like Ratio Analysis, Cash flow Analysis etc.

51
 Capital Budgeting and Capital Structure Decisions

Capital investments are long-term investments in which the assets involved have useful lives of
multiple years. For example, constructing a new production facility and investing in machinery and
equipment are capital investments. Capital budgeting is a method of estimating the financial viability
of a capital investment over the life of the investment.

Unlike some other types of investment analysis, capital budgeting focuses on cash flows rather than
profits. Capital budgeting involves identifying the cash in flows and cash out flows rather than
accounting revenues and expenses flowing from the investment. For example, non-expense items
like debt principal payments are included in capital budgeting because they are cash flow
transactions. Conversely, non-cash expenses like depreciation are not included in capital budgeting
(except to the extent they impact tax calculations for "after tax" cash flows) because they are not cash
transactions. Instead, the cash flow expenditures associated with the actual purchase and/or financing
of a capital asset are included in the analysis.

Over the long run, capital budgeting and conventional profit-and-loss analysis will lend to similar net
values. However, capital budgeting methods include adjustments for the time value of money
(discussed in AgDM File C5-96, Understanding the Time Value of Money). Capital investments
create cash flows that are often spread over several years into the future. To accurately assess the
value of a capital investment, the timing of the future cash flows are taken into account and
converted to the current time period (present value).

Below are the steps involved in capital budgeting.

• Identify long-term goals of the individual or business.

• Identify potential investment proposals for meeting the long-term goals identified
• Estimate and analyze the relevant cash flows of the investment proposal identified
• Determine financial feasibility of each of the investment proposals
• Choose the projects to implement from among the investment proposals
• Implement the projects chosen.
• Monitor the projects implemented in above steps as to how they meet the capital budgeting
projections and make adjustments where needed.

52
There are several capital budgeting analysis methods that can be used to determine the economic
feasibility of a capital investment. They include the Payback Period, Discounted Payment Period,
Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.

Techniques used in Taking The Decisions:

Payback Period

A simple method of capital budgeting is the Payback Period. It represents the amount of time
required for the cash flows generated by the investment to repay the cost of the original investment.
For example, assume that an investment of $600 will generate annual cash flows of $100 per year for
10 years. The number of years required to recoup the investment is six years.

Net Present Value

The Net Present Value (NPV) method involves discounting a stream of future cash flows back to
present value. The cash flows can be either positive (cash received) or negative (cash paid). The
present value of the initial investment is its full face value because the investment is made at the
beginning of the time period. The ending cash flow includes any monetary sale value or remaining
value of the capital asset at the end of the analysis period, if any. The cash inflows and outflows over
the life of the investment are then discounted back to their present values.

53
The Net Present Value is the amount by which the present value of the cash inflows exceeds the
present value of the cash outflows. Conversely, if the present value of the cash outflows exceeds the
present value of the cash inflows, the Net Present Value is negative. From a different perspective, a
positive (negative) Net Present Value means that the rate of return on the capital investment is
greater (less) than the discount rate used in the analysis.

Profitability Index
Another measure to determine the acceptability of a capital investment is the Profitability Index (PI).
The Profitability Index is computed by dividing the present value of cash inflows of the capital
investment by the present value of cash outflows of the capital investment. If the Profitability Index
is greater than one, the capital investment is accepted. If it is less than one, the capital investment is
rejected.

54
Internal Rate of Return

Another method of analyzing capital investments is the Internal Rate of Return (IRR). The Internal
Rate of Return is the rate of return from the capital investment. In other words, the Internal Rate of
Return is the discount rate that makes the Net Present Value equal to zero. As with the Net Present
Value analysis, the Internal Rate of Return can be compared to a Threshold Rate of Return to
determine if the investment should move forward.

Internal Rate of Return

Another problem with the Internal Rate of Return method is that it assumes that cash flows during
the analysis period will be reinvested at the Internal Rate of Return. If the Internal Rate of Return is
substantially different than the rate at which the cash flows can be reinvested, the results will be
skewed. The Modified Internal Rate of Return for two $10,000 investments with annual cash flows
of $2,500 and $3,000 is shown in Table 7. The Internal Rates of Return for the projects are 7.9% and
15.2%, respectively. However, if we modify the analysis where cash flows are reinvested at 7%, the
Modified Internal Rates of Return of the two projects drop to 7.5% and 11.5%, respectively. If we
further modify the analysis where cash flows are reinvested at 9%, the first Modified Internal Rate of
Return rises to 8.4% and the second only drops to 12.4%. If the Reinvestment Rate of Return is
lower than the Internal Rate of Return, the Modified Internal Rate of Return will be lower than the
Internal Rate of Return. The opposite occurs if the Reinvestment Rate of Return is higher than the

55
Internal Rate of Return. In this case the Modified Internal Rate of Return will be higher than the
Internal Rate of Return.

Each of the capital budgeting methods outlined has advantages and disadvantages. The Payback
Period is simple and shows the liquidity of the investment. But it doesn’t account for the time value
of money or the value of cash flows received after the payback period. The Discounted Payback
Period incorporates the time value of money but still doesn’t account for cash flows received after
the payback period. The Net Present Value analysis provides a dollar denominated present value
return from the investment.

However, it has little value for comparing investments of different size. The Profitability Index is a
variation on the Net Present Value analysis that shows the cash return per dollar invested, which is
valuable for comparing projects. However, many analysts prefer to see a percentage return on an
investment. For this the Internal Rate of Return can be computed. But the company may not be able
to reinvest the internal cash flows at the Internal Rate of Return. Therefore, the Modified Internal
Rate of Return analysis may be used.

56
 Stock Market Analysis & Trading

Stock analysis is the evaluation of a particular trading instrument, an investment sector, or the
market as a whole. Stock analysts attempt to determine the future activity of an instrument, sector,
or market.

• Stock analysis is the practice of using information and analyzing data to make investment
decisions.
• One popular form of stock analysis is fundamental analysis, the practice of using financial
activity to forecast stock prices.
• Another popular form of stock analysis is technical analysis, the reliance of historical stock
price activity to predict future price activity.
• Other less common forms of stock analysis include sentiment analysis and quantitative analysis.
• Investors may have unpredictable or limited information which makes stock analysis difficult..
The notion of stock analysis relies on the assumption that available market information can be used
to determine the intrinsic value of a stock. In the primary methods discussed below, investors use
financial statements, stock price movement, market indicators, or industry trends to make
investment decisions.

Much of this strategy relies on leveraging historical information. For instance, investors may analyze
a company's stock based on it's financial performance. An analyst that is trying to determine the fair
price of that stock may strive to understand how similar companies of similar performance
performed in the past.

57
Fundamental Analysis

Fundamental analysis concentrates on data from sources, including financial records, economic
reports, company assets, and market share. To conduct fundamental analysis on a public company or
sector, investors and analysts typically analyze the metrics on a company’s financial statements –
balance sheet, income statement, cash flow statement, and footnotes.

These statements are released to the public in the form of a 10-Q or 10-K report through the database
system, EDGAR, which is administered by the U.S. Securities and Exchange Commission (SEC).
Also, the earnings report released by a company during its quarterly earnings press release is
analyzed by investors who look to ascertain how much in revenue, expenses, and profits a company
made.

58
 Ratio Analysis
When running stock analysis on a company’s financial statements, an analyst will usually be checking
for the measure of a company’s profitability, liquidity, solvency, efficiency, growth trajectory, and
leverage. Different ratios can be used to determine how healthy a company is.

For example, the current ratio and quick ratio are used to estimate whether a company will be able to pay
its short-term liabilities with its available current assets. The formula for current ratio is calculated by
dividing current assets by current liabilities, figures that can be gotten from the balance sheet. Although,
there is no such thing as an ideal current ratio, a ratio less than 1 could indicate to the stock analyst that
the company is in poor financial health and may not be able to cover its short-term debt obligations
when they come due.

Looking at the balance sheet still, a stock analyst may want to know the current debt levels taken on by a
company. In this case, a stock analyst may use the debt ratio, which is calculated by dividing total
liabilities by total assets. A debt ratio above 1 typically means that a company has more debt than assets.
In this case, if the company has a high degree of leverage, a stock analyst may conclude that a rise in
interest rates may increase the company’s probability of going into default.

59
 Technical Analysis
he second method of stock analysis is technical analysis. Technical analysis focuses on the study of past
and present price action to predict the probability of future price movements. Technical analysts analyze
the financial market as a whole and are primarily concerned with price and volume, as well as the
demand and supply factors that move the market.

Charts are a key tool for technical analysts as they show a graphical illustration of a stock’s trend within
a stated time period. For example, using a chart, a technical analyst may mark certain areas as a support
or resistance level. The support levels are marked by previous lows below the current trading price, and
the resistance markers are placed at previous highs above the current market price of the stock. A break
below the support level would indicate a bearish trend to the stock analyst, while a break above the
resistance level would take on a bullish outlook.

Technical stock analysis is effective only when supply and demand forces influence the price trend
analyzed. When outside factors are involved in a price movement, analyzing stocks using technical
analysis may not be successful. Like other forms of analysis, analyzing stock price trends using technical
analysis is more complicated as more variables are considered.

Examples of factors, other than supply and demand, that can affect a stock price include stock splits,
mergers, dividend announcements, a class action lawsuit, death of a company’s CEO, a terrorist attack,
accounting scandals, change of management, monetary policy changes, etc. These unpredictable events
may occur that were essentially impossible to forecast or plan for.

60
 Corporate & Individual return Filing & Computation

I have also filled up the forms of e-returns on the website of Inland Revenue Department,
Government of India for WOKI COLLECTIONS and TASHU GARMENTS. In order to know
what is filing of e- returns we have to know the provision for payment of tax under Income Tax Act
2002.

Filing of Estimate Income Tax Returns:

Taxpayers who derive or expect to derive any assessable income from a business or investment shall
pay tax for the year by three installments. Therefore, they are called installment payers. Taxpayers
with income solely from employment are not obliged to pay tax in installments because their tax
from employment income is collected by withholding. Similarly, presumptive taxpayers are also not
obliged to pay tax ininstallments.

61
Payment of tax by installments is fundamentally different from paymentof tax by withholding.
Withholding requires a person’s tax to be paid by a third party, whereas under an installment system
the person pays his or her own tax. Every installment payer has to submit for the income year ahead
an estimate of his tax payable. For that the estimated tax returns are to be utilized. The submission is
due to be made by the date for payment of the first installment, i.e. it shall be filed together with the
first installment. Since the first estimate has to be submitted after the income year is half, the
estimate should include the actual taxpayer’s facts of the first half of the income year so that there is
some thorough basis for the estimation of the possible profit of the second half of the income year. In
this estimate the following amounts are to be specified:the assessable income to be derived for the
income year from employment, business, and investment the source of this income the taxable
income to be derived for the income year the tax to become payable calculated without reduction for
any medical tax credit. The installments have to be paid as follows:40 % of the tax as estimated for
the current income year less paid tax, i.e. less amounts that have already been paid by the end of the
month Poush70 % of the tax as estimated for the current income year less paid tax, i.e. less amounts
that have already been paid by the end of the month Chaitra100 % of the tax as estimated for the
current income year less paid tax, i.e. less amounts that have already been paid by the end of the
month As had If the amount of an installment calculated as above is less than Rs.2000, the
installment is not required to be paid. If at the end of the year a final tax liability remains to be paid,
as, for example, a result of the income tax return filed at the end of the year the income tax paid by
installments is credited against this liability.

62
 Preparation of Final Accounts

I was assigned to prepare the preliminary trial balance and financial statements of “WOKI
COLLECTION”

Preliminary Trial Balance

is a summary of the balance of all accounts in the chart of accounts to, firstly, make sure the books
are balanced. Then, these account balances are used to prepare financial statements such as Profit
and Loss Account, Balance Sheet and Cash Flows Statement. The trial balance is a worksheet on
which all the general ledger accounts with their debit or credit balance are listed. It is a tool that is
used to alert errors in the books of account. The total debits must equal the total credits. If they don't
equal, there is an error that must be tracked down.

63
 Profit & Loss Statement

As the name indicates the profit and loss statement (also known as a statement of financial
performance or an income statement) measures the profit or loss of a business over a specified
period. A profit and loss statement summarizes the income for a period and subtracts the expenses
incurred for the same period to calculate the profit or loss for the business. It reflects the past
performance of the business and is the report most often used by small business owners to track how
their business is performing.

64
 Balance Sheet

Balance sheet is a financial statement that summarizes a company's assets, liabilities,

and shareholders' equity at a specific point in time. The balance sheet gives investors
an idea of what the company owns and owes as well as the amount invested by the
shareholders.

The balance sheet follows the formula assets = liabilities + shareholders' equity. Each
of the three segments of the balance sheet has many accounts within it, documenting
the value of each one. Accounts such as cash, inventory, and property are on the asset
side of the balance sheet, and accounts such as accounts payable and long-term debt
fall on the liability side. Accounts on a balance sheet differ by company and by
industry, as there is no set template that accurately accommodates the differences
between different types of businesses.

65
 Cash Flow Statement

Cash Flow Statement is that financial statement which provides aggregate data
regarding all cash inflows a company receives from both its ongoing operations,
financing and external investment sources, as well as all cash outflows that pay for
business activities and investments during a given quarter. Income statement uses
accrual accounting method and its benefit is that it strives to show a more accurate
picture of the company’s profitability. However, focusing on accrual based
profitability without looking at cash inflows and outflows is very dangerous, not only
because companies can more easily manipulate accounting profits than they can cash
profits, but also because not having a handle on cash can potentially make even a
healthy company go bankrupt.

The key to financial analysis is to use both statements together. If there is incredibly
high net income, such net income should be supported by strong cash flow from
operations and vice versa. If this is not the case then investigation and follow up on
such discrepancies should be done.

66
 GST Returns Filing and Reconciliation

GST reconciliation is a process of comparing two sets of data entries, mainly details to be submitted
on GST portal with actual sale and purchases shown in books of account to detect and correct errors.

It is generally conducted to rectify unintentional errors or omissions and ensures accurate claiming of
input tax credit (ITC) for invoices issued in the previous financial year. In order to avoid discrepency
in filing returns and claiming 100% ITC it is important that your GST invoicing details are in sync
with your book’s purchase and sales .

The GST Reconciliation of GST Return is important for you for a number of reasons. Let’s briefly
go over them:

• ITC Claim: The most primary reason for GST reconciliation is to calm 100% accurate ITC and
you can only claim accurate ITC by sorting out any differences between your purchase register
and GSTR 2A.
• Avoids Duplicity: With help of GST reconciliation you can avoid duplicity at the time of filling
annual GST return. To do the same you need to reconcile all your monthly or quarterly GST
return.
• Identifying Problems: In order to make the necessary adjustments and submit an error-free GST
Return, GST reconciliation assists in identifying problems with the invoices produced by your
supplier.
• Prevention From Notices and Penalties: Mismatches in your bills can cause you to throw your
case into question and risk having to pay fines and reply to notices.

Thing to check while Reconcile returns

• Un reflected GST Credits –The seller has disclosed a responsibility, but the GST returns do not
reflect a credit: Such credits must be used by the earliest of the monthly return deadline or the
annual return deadline.
• Unverified GST Credits- Businesses have claimed credit on certain purchases in their GST
returns even when the vendor has not admitted obligation for the supply made: Businesses should
check in with the seller again to be sure the liability has been disclosed. Otherwise, there may be
a chance of these credits being rejected.

67
• Resolving Liability-Credit Mismatch in GST- Identify and reconcile mismatches between
vendor liability and claimed credit, using methods like issuing debit/credit notes. Do this before
filing the monthly return or the relevant annual return.

How is GST Reconciled Manually?

Manually reconciling GST involves comparing and matching various records to ensure accurate
reporting and claiming of input tax credit. Here are the steps to reconcile GST manually:

Step 1- Collect Invoices and Purchase Records

Step 2- Prepare GSTR-3B and GSTR-1 Reports

Step 3- Compare the sales data from GSTR-1 with the purchase data from invoices to verify if they
align.

Step 4- Check ITC Eligibility

Step-5- Cross-check the GSTIN of suppliers and recipients in the invoices and reports for accuracy.

Step-6- Compare the ITC available as per GSTR-2A or GSTR-2B with the ITC claimed in GSTR-
3B.

Step-7- Investigate and rectify any mismatches between the reported data, including differences in
tax amounts, invoice numbers, or dates.

Step-8- Make necessary adjustments in the books of accounts to align with the reconciled data.

Step-9- If discrepancies are found during reconciliation, file corrected returns (amendments) to
ensure accurate reporting and claiming of ITC.

Step-10-Repeat the reconciliation process for each tax period to maintain accurate and up-to-date
records.

GST reconciliation is crucial for businesses to ensure continuous compliance and avoid potential
issues with GST authorities. By conducting regular and accurate reconciliations, enterprises can
claim Input Tax Credit (ITC), which holds particular significance for small businesses with limited
capital and fluctuating growth patterns. Properly managing GST reconciliations not only helps avail
the eligible credits but also strengthens the financial stability of businesses, allowing them to operate
smoothly and per the GST regulations.

68
69
 LITERATURE REVIEW

Many developing countries have concentrated taxing authority and tax administration with the
central government. The function of government can be divided into three, namely, allocation,
distribution and stabilization functions (Musgrave 1959).

Using this stratification, stabilization and distribution functions are expected to be under the

periphery of the central government whilst lower government undertakes allocative functions.

Hence any spending and tax decisions that will affect the rate of inflation, level of unemployment,
etc. are better handled at the centre, whilst other activities that affect social welfare are more efficient
if undertaken by sub national governments.

However, there is a spreading sense that local governments throughout the world are growing up
(Bahl,1999), that they no longer require central government guidance and control for them to make a
positive contribution to the provision and delivery of government services, that they can and should
assume more responsibility for financing these services, and that bringing decisions closer to the
people, the voters, will improve government efficiency, effectiveness, and responsiveness. One
critical prerequisite for sustainable local government reform is adequate financial resources. Thus, in
addition to supplementing local resources through establishing central-local revenue transfers,
governments are searching for ways to mobilize and improve existing local own-source revenue
sources.

70
CHAPTER-IV

71
 Problems Encountered and Possible solutions

The accounting field, like most others, has undergone radical transformation today thanks to the
advent of technology, and the increasing regulations governing the activity, spurred by spiraling
cases of fraud and scams.

Hesitating to adopt tech or failing to comply with changing regulations can create a mountain of
problems for your business.

Risk of fraud, threats to security, erroneous financial statements, and leaving your business open to
fines, and other penalties for non-compliance with regulations are some of the problems you are
likely to face.

The use of sophisticated software like Tranquil Accounting and Finance by trained accounting
professionals can help you overcome most of the accounting challenges of the modern business
world.

72
Some Major Challenges faced in Accounting and Finance are:

Cash Flow
Often when there is economic hardship, or signs that it’s pending, companies move quickly to ramp
up liquidity by implementing cost containment, while implementing cost containment measures and
deferring planned investments. Some of that focus on improving cash flow will persist into 2023 –
especially when it comes to capital expenditures.

Management and consulting firm McKinsey & Company says that boardrooms have shifted their
focus from earnings before interest and taxes (EBIT) to cash – and that has translated into
responsibility for cash management at all levels of the business. But some of those cost-cutting
measures have slowed, particularly those related to workforce and operations. Businesses are more
confident in generating revenue from the changes they made in 2020 to products or services
offerings and pricing strategies.

Improving the efficiency of accounts receivable and accounts payable processes will be vital to
ensuring steady cash flow. Keep an eye on metrics like expenses, past-due invoices and operating
cash flow. Generating and tracking cash reports daily can help you plan for the future because you’ll
see changes or fluctuations you can use to inform other decisions.

Financial Reporting
Managing financial disclosures continues to be a concern for public and large private companies
affected by SEC requirements. Finance leaders are concerned about complying with reporting
requirements from COVID-19-related government stimulus programs and ensuring proper
documentation, recording and reporting for audits. Additionally, changes around disclosure
requirements for Environmental, Social and Governance (ESG) are likely ahead, and accounting
teams need to be mindful of a shifting regulatory landscape.

Hiring and Retaining Talent

Hiring is continuing for accounting and finance roles in technology, health care, property
management, financial services, as well as for positions that keep cash accounts strong. These roles
include billing, accounts receivable and collections.

Retaining top employees as competition intensifies is a key challenge. Some 8 in 10 finance and
accounting managers are concerned about keeping valued employees. Two key areas of concern are

73
low morale and high rates of burnout because of heavy workloads – the latter being a somewhat
perennial issue for accountants. Taking steps to ensure that key employee retention strategies apply
to the accounting and finance department – such as continued education and training – is one place to
start boosting morale. Helping accountants develop the technical and soft skills to better apply their
domain knowledge to business strategy as more transactional tasks are automated will be crucial to
retention in 2023.

Automation and Artificial Intelligence

Although only some 2% of large firms have implemented machine learning or AI, about one-in-five
indicate they are planning to start. AI implementations are done to address labour shortages,
automate labour-intensive tasks and deliver more insightful data.

As more transactional work becomes automated, accountants will need to develop different skills to
apply their expertise to information and data generated from new technology and play a role in more
of the business strategy. Cloud-based accounting software, budgeting, forecasting, data analytics and
visualization tools are building some of the foundation for automation in accounting.

Upskilling
As automation increases, boosting existing skills and expertise to leverage the outputs of technology
will benefit employees and your business. Focus on upskilling and learning more about cloud-based
payroll and human resource information systems, enterprise resource planning (ERP) systems, data
analytics and financial modelling and forecasting. In addition to technical skills, other beneficial so-
called soft skills in demand will be the ability to work independently and in virtual teams, attention
to detail, being comfortable with change, creativity, a desire for continual learning and written and
verbal communication skills. Offering continuing education and training also has the added benefit
of boosting employee morale and retention. Companies ranked highly on employee training see 53%
lower attrition rates than those ranked lower.

Tax Law Changes

Applying changes in tax laws is a common concern for accounting teams. But there’s even more
change in store in 2023 than usual. In his January 2023 newsletter, the president of the National
Conference of CPA Practitioners, Neil Fishman, pointed to the fact that practitioners would now
need to absorb some 5,593 pages of new provisions in the Consolidated Appropriations Act, better
known as the COVID stimulus, on the heels of a new tax season. This includes tax extenders,
deductibility of PPP expenses, the potential for second-draw PPP loans and a simplified process for
74
PPP loan forgiveness for amounts under $150,000. Accounting teams have tax changes top of mind,
especially understanding total tax liability and navigating shifting trade and tariff policies.

Effectively navigating the tax law changes can help you have more funds available to weather other
business challenges ahead. Digitized, accurate and easy-to-access records with accounting software
will make a complex tax year more manageable.

Regulatory Changes & New Accounting Standards

New revenue recognition standards, standards for lease accounting and CECL accounting standards
have been a challenge for accounting teams over the past few years. While different phases of
standards implementation have been delayed because of the pandemic, they remain on the horizon —
so pay attention for announcements. Stay up to date with new regulations around PPP loans and
changes related to current and future COVID stimulus packages.

Expense Management
Though it traditionally dominates expense reports, travel spend decreased by 77% year over year.
But spend risk was three times higher than in 2019 – with fraud activity increasing by 57% from Q2
to Q3 in 2020 alone. Moving employees to work remotely brought entirely new expense
management challenges. Office supplies, computer equipment and other items necessary to work
from home were common expenses. But with that came risk for employees to take advantage and
expense things like big screen televisions, sound systems and even TV subscriptions.

If you haven’t already, update your expense policy, focusing on allowable home office expenses and
food, including delivery services and gift cards. Check internal controls and consider
further automating the expense management process with software to discourage fraudulent expenses
and automatically flag questionable ones.

Payroll Management
New payroll challenges from changing laws and regulations at federal and state levels are on the
horizon. And managing withholdings for employees in different locations has become a significant
hurdle for payroll managers. Remote work has made the management of state income taxes
challenging because of the complexity of determining primary work location.

75
If you don’t already, consider automating your payroll processes. Cloud-based payroll platforms help
with the calculation of earnings, deductions, company contributions, taxes and paid time off, while
providing support for multiple jurisdictions when it comes to taxes, forms, direct deposit and more.

Cybersecurity
It takes 280 on average days to identify and contain a data breach, and the average cost is $3.86
million. The lion’s share of those breaches is initiated by stolen or compromised employee
credentials. The accounting team regularly receives emails with attachments or links to invoices, and
it’s not hard to see how easily a malicious link or attachment could make its way unnoticed into the
workflow.

Accounting teams are well suited to be evangelists of cybersecurity company-wide — they’re

already schooled in robust internal controls, access and permissions required of their roles. Outdated
software can increase the success rate for malware and ransomware, so make sure all systems are up
to date.

76
 Interpretation and Analysis of Internship

There are no such particular events or activities I performed, that can be viewed as the solution to
some sorts of distinct problems in the organization. Only the senior partners, junior associates, and
secretarial staff most often stay in the organization and do their jobs. Rest of the employees perform
their duties and responsibility in the customer’s organization most of the time and remain in the
office premise just for the purpose of report writing and until they are re assigned to another job or
clients. Thus, my internship period lasted more on the client/customer’s organization than the office
itself. However, while I was not assigned to any customer/client, I was given the job of review of
internal audit report of National Trading Ltd which was typed in Nepali font by the receptionist
whether the typing had any sorts of errors. I just needed to make sure that the printed report was
same as that of the hand written report which was prepared by the team of junior managers and
articles and already been verified by the senior managers. However, I pointed out a calculation
mistake which was overlooked by the junior managers as well as senior managers during report
review and verification besides many numerous typing mistakes. Because of that, calculation
error/mistake that had been overlooked was corrected before the internal audit reportwas submitted
to Nitin Tyagi & Company. Had the report with calculation error was submitted, it would have
created a negative impact on the image and reputation of the organization. Similarly, while I was
assigned at Shiva Shree Hydropower Pvt Ltd, there once occurred a problem of carrying a huge file
consisting of all the working papers and documents to the office after 5 p.m. By the time we would
have reached the office, the office would have been closed. So, I told my senior colleague that I
would take the responsibility of the file and would bring the file in office next day. So, we didn’t
have to leave our confidential documents at the customer’s office because of my

initiative. When my team had just finished the assigned work at the client, until I was re-assigned to
other team for other customers, I had to stay in the office. I reached the office at sharp 10:00 a.m.
and found that no other articles and trainees had come to office by that time. When I entered the
meeting room, where articles and trainees used to gather if they had no work, I found meeting room
quite messy with many files and documents spread over the tables and the sofa. So, I arranged the
documents and put the documents inside the respective files and stacked them in one of the corners
of the meeting room. It didn’t look quite messy after my little effort.

77
78
 Conclusion and Discussions

The most important thing I found noticeable was the nature of treatment received by the new
employee/trainee from the other employees. I was little worried since I knew nothing about auditing
and knew no other person in the organization. I was the first one to do internship in that audit firm as
only the CA students perform their articleship after the completion of CAP II or intermediate levels.
I was quite worried about whether I would be easily accepted as their colleagues or not. But I found
totally different. I received great deal of co-operation and friendly behaviour from all the employees,
including Junior Associates and Senior Managers. During internship period, I never felt I am
different than them. Rather, I started to feel like I was also one of them (one of the CA student doing
Articleship not internship). I really feel lucky to receive such kind of treatment and behaviour from
other employees. I think that for such kind of friendliness and rapport, there is great role of informal
talks. The organization had a culture of having breaks time and again. Employees at levels used to go
outside the office premise to have some tea and cigarettes time and again. This provided great
opportunity for the new comers like me to get acquainted with the organization and the employees.
Another important thing I got to observe during my internship was the punctuality at workplace. I
observed that employees tend to come to office mostly between 10:30a.m. and 11:00 a.m. although
the official time was 10:00 a.m. Since I had to attend class till 9:00 a.m. and after having light
breakfast near the college premise, I always reach office before 10:00 a.m. and always had to sit
alone for around half an hour before some one arrives. When I was assigned for the job at one of the
customers, I found the same not only with my seniors but also with the employees of the client
organization. Thus, what I came to conclude is that we have become very lazy and don’t give
importance to time and its value. We always find the other person or activity to blame for our
lateness and our habit or laziness. The next thing I got to observe was the way audit firm operates.
Before my internship. I had literally no idea how audit firm operates. I used to think that audit firms
were big organizations like that of banks and other financial institutions. But I found totally different.
Audit firms need not necessarily have big buildings and infrastructures. I realized that their biggest
assets are the human resources. Even if the audit firms are small that can be accommodated to 4 – 5
small rooms, audit firms provides employment to large number of people.

It is possible because employees work at the client’s office most of the time. If all the employees
were to work at office at the same time, no work would have been completed as there would be no
place even for standing. I got the opportunity to learn the normal day to day operations of the audit
firm. Audit firms provide various auditing and consulting services to the customers based on the
79
need of the customers. Based on the nature and type of service to be offered, a team of expert
comprising of senior managers, junior managers and articles are created by the junior associate and
are assigned certain duties and responsibilities. Based on the instruction, the team member performs
their duties at the client’s organization and prepares report accordingly. The report prepared is
reviewed and verified by the junior associates and finally reviewed by the senior partner/s before the
report is duly signed and submitted to the client. Another thing I got to notice was the investment
behaviour of employees of the organization. Since all the employees are either chartered accountant,
students of chartered accountant, registered auditors, etc. I found huge degree of investment
behaviours and practices among them. They had investments on common stocks, initial public
offerings, mutual funds, etc. Since they are financial analysts, they invests on stocks and securities
based on the past organizational performance their potential future performances rather than on
speculation and other people’s behaviour. I also realized that documentation is an important part of
auditing process. It constitutes a permanent record of the objectives and scope of the audit, as well as
the work performed during the audit. They contain the back-up material in support of the audit
findings, conclusions, opinions, and comments. I found huge number of big filesall over the place.
The drawers and cabinets built to store files and documents were full and the documents were even
stored on the top of shelves, under the tables, over the working spaces, etc. wherever there was
space. I found documents which were 10– 15 years old stored at the shelves. There were so many
documents that files were stacked one after another even at the top of the cupboards

80
CHAPTER-V

81
 Learnings and Value Addition During Internship

Risk Management

Risk management is the method of recognizing, evaluating, and managing risks to an organization's
resources and profits. Financial insecurity, regulatory liability, strategic management mistakes,
incidents, and natural hazards are just some of the challenges or dangers that could arise. For
digitalized businesses, IT security vulnerabilities and data-related threats, as well as risk
management techniques to mitigate them, have become top priorities.

Here's how risk management is used on finance internship resumes:

• Received extensive training in capital markets, asset management, corporate finance, risk
management, retirement management and financial planning.
• Gathered information, and prepared recommendations for risk management, wealth
accumulation, and preservation and distribution of assets.
• Contributed solid communication skills in preparing and presenting new application
documents that addressed the risk management needs of clients.
• Created investment portfolio tailored to hypothetical client requests and presented results
highlighting risk management and return on investment strategies.
• Engaged prospects and other professionals in discussions involving financial planning
through the incorporation of risk management products.

Internal Audit

Internal audit is an evaluation process that ensures that a company's risk management, governing
body, and other internal processes are running effectively. People who perform internal audits must
be highly qualified, have experience, and knowledge to work accordingly with the international
standards and the code of ethics.

Here's how internal audit is used on finance internship resumes:

• Assisted the internal auditors with identifying risks of material misstatements and
documenting the effectiveness of internal controls over financial reporting.
• Created universal template for all financial statements, eliminating inconsistencies among
historical financial documents and halving internal audit procedures.

82
 • Conducted internal audits on agent cashier operations, General Post Fund processing and
voucher examination of paid veteran benefits.
• Reviewed financial statements and conducted internal audits of accounting records and
provided necessary adjustments directly to CFO.
• Generated financial statements and quarterly reports including market data for internal audit
based on SEC standards.

Data Analysis

Here's how data analysis is used on finance internship resumes:

• Produced security investment recommendations, used analyst ratings for future predictions,
provided data analysis using Equity Screen and Excel.
• Performed data analysis and prepared monthly portfolio performance reports for distribution
to the company's lenders and investors.
• Assisted in performing complex data analysis to help assist in management decisions and
strategic planning.
• Completed a comprehensive report, which included detailed data analysis and return on
investment calculations.
• Conducted data analysis for unclaimed property revealing a substantial obligation in
unclaimed financial property.

Professional communications

Working in a professional setting for the first time can be difficult to get used to. But it is the best
way to learn how to navigate the working world through real-life, hands-on experience.

One of the most valuable skills you will gain from an internship is the ability to speak with people in
a professional setting. Discussions with bosses or coworkers are different from discussions with
lecturers or fellow students,

After your internship, you should have a better idea of the appropriate way to behave as a
professional. This will help you a lot when you start interviewing for jobs because you will be more
confident and will sound more mature and experienced in a business setting.

83
Financial Planning Analysis

Here's how financial planning analysis is used on finance internship resumes:

• Provided competitive/strategic financial planning analysis vs. industry competitors from a

cost perspective in revenue forecasting.
• Worked closely with teams to perform financial planning analysis and reporting activities.

Financial Analysis

Here's how financial analysis is used on finance internship resumes:

• Supported corporate-level financial analysis activities.

• Performed financial analysis on company-wide expenditures of about $500K and presented
recommendations to management to plan for operation expansion.
• Provide clients with a comprehensive financial analysis of their current financial condition
and determine their personal and professional financial goals.
• Audited financial and operational data, including approximately 200 accounts, and conducted
financial analysis on a monthly basis.
• Prepared relevant financial analysis and corresponding recommendations and attended
weekly training sessions to learn sales skills and product knowledge.

9. Strong Analytical

Here's how strong analytical is used on finance internship resumes:

• Proof read and research marketing material using strong analytical skills.
• Required strong analytical and problem solving skills.
• Prepared weekly cash management/short-term cash flow models, long-term financial
forecasts and departmental budgets utilizing strong analytical and MS excel skills.
• Identified and resolved problems by using strong analytical techniques, innovative
approaches and taking initiative in preventing and solving problems.
• Utilized strong analytical skills to prepare monthly balance sheet and income statement
account analysis for Funds Distributor and Management Company.

84
10. Reconciliations

Here's how reconciliations is used on finance internship resumes:

• Compiled capital vendor lists, analyzed bank reconciliations, processed goods receipt/invoice
reports, and generated company codes while extensively learning excel
• Prepared and linked account reconciliations to financial statements for three major subsidiary
companies; acquired experience with Oracle accounting software.
• Performed accounting functions for various executive benefits plans including monthly
account reconciliations, stock appreciation, and annual forecasting projects.
• Prepared and maintained assignments including preparation of schedules, summaries, and
reconciliations as instructed or required.
• Conducted various accounts reconciliations and corrected any identified discrepancies to
assist and facilitate the monthly closings.

11. Journal Entries

Journal entries can be defined as an act of keeping or making records of any transactions either
economic or non-economic. The journal entries are made in the accounting systems of an
organization. The entries are filled with two main fields; debit and credit. The debit and credit must
be equal at the end of a journal entry else it is not considered correct. The journal entries also keep
the date of transactions and the names of the accounts that were affected by the transactions.

Here's how journal entries is used on finance internship resumes:

• Processed reimbursement for various departments: re-calculated reimbursement numbers,

checked reimbursement limits and booked authorized amounts in journal entries.
• Assisted management in budget preparation Completed accounts receivable and payable
efforts Balanced trial balance generate journal entries
• Audited sub and general ledger journal entries of expenditures and revenue to ensure accurate
financial records
• Mastered understanding of accounts payable and accounts receivable by recording journal
entries utilizing QuickBooks.
• Designed template applying automated regression analysis to identify potential errors in
journal entries.

85
12. Litigation

Here's how litigation is used on finance internship resumes:

• Completed litigation paperwork on class action lawsuits.

• Drafted dozens of leases, orders of surrender, and class action lawsuit and litigation reports.
• Provided valuation services to clients at a global metals trading firm for profits dispute
litigation.
• Prevented harmful litigation to firm by reviewing agent compensation terms for potential
breach of contract.
• Worked with a litigation support team on a mock trial involving a complex securities case.

13. Financial Services

Financial services are economic services that are offered by the finance sector, which includes banks,
financial institutes credit-card agencies, insurance companies, accountancy firms, and others that
handles assets. Organizations in the financial services sector are concerned with money and risk
management.

Here's how financial services is used on finance internship resumes:

• Provided professional financial services to clients, including financial and asset management,
personal value-added service and consulting service.
• Provided financial services through insurance and investments by using information
technology to achieve financial security for clients.
• Provided customer service though listening to customers, anticipating their needs and
recommending various financial services.
• Position provided experience and a greater understanding of financial services industry and
client support and communications.
• Screened executive financial candidates for executive search firm providing employees for
capital markets and financial services.

14. Financial Data

Here's how financial data is used on finance internship resumes:

86
 • Analyzed, examined and interpreted account records, complied financial information and
reconciled reports and financial data.
• Researched and collected relevant financial data for over 200 hardware based start-up
companies for industry comparison.
• Maintained key financial database and systems to ensure accurate reporting of business
segment and departmental performance.
• Analyzed and presented financial data and analysis to senior management to determine
annual business strategy.
• Learned the application software for documenting financial data and typed data under
specific accounting entries.

15. Financial Models

Here's how financial models is used on finance internship resumes:

• Analyzed stock market by extensive use of technical and fundamental analysis and financial
models, provided advisory information to the customers.
• Created financial models and performed analysis for business leaders and finance
management to enhance monthly and quarterly budget accuracy and efficiency.
• Created financial models and reporting tools in order to perform analysis that assisted senior
management in making key financial decisions.
• Conducted financial, market-intelligence, and research activities to create financial models
that improved profit margins and supported strategic initiatives.
• Prepared and developed financial models for the monthly forecasts and annual budgets for
financial expenses associated with receivables management.

87
 Difference Between Practical Exposure and Theoretical Exposure

Knowledge can be defined as familiarity with something, which can include some facts,
information about a particular topic or subject, descriptions of experiment or study, or skills
acquired through experience or education. Knowledge can be of two types:

• Theoretical knowledge
• Practical knowledge

Theoretical knowledge may be attributed to the theoretical clarity of a particular topic or subject,
wherein person has quite an understanding about the things going around, and the principle of
their working, but cannot control the things. For example, if a person studies about a car and its
engine parts in a classroom from books and presentation slides, he would, of course, have
knowledge about what are the parts of the car, and what is the principle of working, but he would
lack practical knowledge about it.

In the absence of this practical knowledge, the usefulness of that car for him is zero. He cannot
drive that car without proper practical knowledge, he cannot repair it in the case of some fault,
and he doesn’t know anything about its machinery.

Theoretical knowledge may be something that would help an individual to gain a good grip over
practical knowledge. Knowledge is incredibly important to any career and life in general.

The world is progressing day by day, and we are getting more and more modernized every day
which demands a lot of changes from some previous conventional techniques that were followed.
Rapid changes in working life, society and information technology have increased the demands
for experts in every field.

Today the need for expert professionals is raising day by day who are expected to have good
knowledge, excellent social and communication skills and who are able to utilize their skills in a
positive way in life.

Theoretical Knowledge vs Practical Knowledge

88
As discussed earlier, when it comes to knowledge there are different kinds of knowledge and
different ways of acquiring each kind. On one side is theory and on the other side is the practical
application of theory. We cannot side line one form or the other. Both types of knowledge are
important and both make you better at whatever you do.

Whether it is theoretical or practical knowledge, both are important. Both works hand in hand
with each other and even if we decide to compromise on one form, there is a great amount of risk
involved when related to your career. Those who really want to advance the furthest in life have
to acquire knowledge at both ends of the spectrum and acquire it in a variety of ways. Neglecting
one can also prove to be a great loss.

Theoretical Knowledge

Theoretical knowledge is as important as the practical one. Without having the proper theoretical
knowledge, practical knowledge may sometimes prove to be dangerous. As they say, that a little
knowledge is a dangerous thing. Theoretical knowledge and learning are necessary parts of
expert knowledge. Formal learning occurs normally in a prescribed learning framework and in an
organized learning event in the presence of a tutor, who himself must possess clarity of facts. For
this reason, theoretical knowledge is usually gained by theoretical studies.

Theory generally teaches us ‘why’. It helps you understand why one technique works while the
other fails. Theoretical knowledge generally serves to focus on giving complete knowledge that
builds the context and helps you set a strategy for dealing with the practical application.

Theoretical knowledge can often lead to a deeper understanding of a concept through seeing it in
context of a greater whole and understanding the why behind it, but still practical gives out the
much wider review of the facts.

Practical Knowledge

Practical or informal knowledge manifests itself as skills or ‘‘knowing-how’’. Practical

knowledge is very important to understand how things actually work. As it occurs and develops

89
in those concrete situations where it is learnt, it is contextual and social in nature and helps you
acquire the specific techniques that become the tools of your trade. Practical knowledge leads to
a much deeper understanding of a concept through the act of doing and personal experience.
Practical knowledge is found to be of much use in our actual day-to-day work.

There are a lot of things you can only learn through doing and experiencing; no matter how hard
you try to learn that through theoretical means. For example, if you try to learn how to drive a car
by theoretical means, you will probably spend your whole life to learn and still won’t be able to
drive without proper practical training, hence practical is the must. Where theory is often taught
in the idea of a vacuum, the practical is learned through the reality of life.

Both of the above are important. You won’t survive in any career unless you can bring results
and to do that you need practical knowledge. There’s no avoiding to any one of these. At the
same time learning how to solve a specific problem only teaches you how to solve that same
problem again. Practice can only take you so far.

Theory helps you apply what you learned solving one problem to different problems. And
practical is the application of theoretical basics in real. The basic difference between theoretical
knowledge and practical knowledge is that theory teaches you through the experience of others,
on the other hand in practice you tend to learn with your own experience with the particular task.
Advantages of practical training are:

Acquisition of Knowledge:

Practical training or Internship allows participants to acquire the practical knowledge and
abilities offered by the professional world which they wish to form part of, and at the same time
to improve their curriculum vitae.

Though you may have theoretical knowledge about the subjects and topics, still it is not enough.
You cannot achieve career heights with just theoretical knowledge. It is very important to possess
practical knowledge along with some theoretic concepts. Without practical knowledge, things are
really incomplete. It is like having a bicycle without tyres.

Entering the World of Employment with a Bang:

90
Having a sound practical knowledge gives you an opportunity to show the organization your
professional potential with a view to a future job offer. If you have some excellent professional
skills, you would not have any problem entering a professional life. Also, it would become really
easy for a student to face the transition from a learner to professional when he has a good
knowledge of all the facts related to his topics.

You tend to impress you seniors and stand a chance to be among the best employees of your
organization if you have good practical knowledge. Remember the first impression is last, and if
you are successful in giving out the first impression successfully at your job, you tend to gain the
trust of your seniors and also some useful tips from them.

Makes Resume More Presentable:

Students have the opportunity of applying the reality of work to the theoretical knowledge
acquired in the classroom, thus adding a new professional experience to their curriculum vitae.

Hence having a good practical knowledge or some internship can become a highlight of your
resume. During your interview, you can clearly make a good impact talking about your practical
experience and the fact that you already handled a practical situation can be useful for you in
getting a job. Today competition is very high and it is not enough to secure a job based on your
academics. Time has changed and organizations are looking in for talented individuals who can
effectively handle work without wasting time and money on training.

Work feels Good:

Students entering professional life are found to fell really bored with the official work if they are
new to such behaviour. Having a prior knowledge not only makes your work easy, but you also
tend to enjoy, what you do. Things come in a really organized way in your life if you have prior
experience of some practical work.

Practical knowledge is something that a lot of student’s lack, because of this reason they are not
able to understand well their jobs and tend to make mistakes and this behaviour may lead to a
feeling of getting bored from your job. Having practical knowledge tends to make things
interesting for you.
91
Conclusion

It is very important for every individual to possess sufficient knowledge to lead his life smartly
and successfully. It does not matter if you are a student, professional or a businessman.
Knowledge is something very important in the life of an individual. Gaining theoretical
knowledge is important but without practical knowledge, it is of no use. Practical knowledge
empowers an individual to achieve something that he has been studying about. It is worth noting
that not only in professional life; you need to have in good practical approach for your life in
general. Hence it becomes really important for proper growth and utilization of your knowledge
that you have a practical edge too, otherwise, there is no point having theoretical knowledge also,
when you can’t apply it in practice.

92
 Challenges Faced During Internship

Unrecognized Work

Sometimes performances remain unnoticed if we don’t tell anyone about it. You get into the office
early, you stay late, you excel in projects assigned to you, you even help out others and contribute to
their success, yet somehow, no one seems to notice. One does well in any field because they expect
recognition. As an intern, you might be doing very good but still, find yourself in a position where
your part is hardly appreciated. That can be somewhat discouraging.

What to do: It is natural to want attention, but you should not become completely dependent on it, or
else each time you don’t receive the response you expected, you will find your confidence growing
shakier than the last time. If you continuously perform well your work can’t be overlooked.

· Allocation of minor work

This is one of the commonest internship challenges faced by a large number of interns. While you
might expect to be an important part of the organization, you are often offered just assisting jobs to
your seniors and mentors.

What to do: Ask your manager or another co-worker if there is anything else you can help with: If
you feel that you have done the given tasks well, ask around if there are other tasks you can take on.
If you are just making coffee for everyone, you need to take a step. Otherwise, it is quite normal to
start with less-risky work. However, if you do well, you will soon be trusted by the authorities and
allotted with better assignments and projects.

· Less Allowance

Undergraduates tend to be paid less than graduates or postgraduates You accepted an internship
thinking that there won’t be much pressure and the compensation would be sufficient for it. But after
you start, you realize the pay is far lesser than the work deserves.

What to do: You might get a feeling that you and a full-time employee is doing the same amount of
work still you are being paid so less. But interns are under a short-term contract and are paid less
almost everywhere. If you are getting enough learning experiences and it is adding to your
candidature for the future, there is no harm forfeiting some of it.

93
· Hesitant to Ask Questions

94
A common intern problem is asking questions. Your biggest hesitation lies in asking questions. What
if asking questions will create an impression that you don’t know anything? So many thoughts
roaming through your mind. You’re not even sure which of your colleagues will help you or will
they feel disturbed. You feel hesitant in interrupting them. You might land a really good internship
but upon starting you realize that the work environment is excessively grave and professional. In
such an environment, you find it difficult to ask questions for the fear of being judged.

Understanding the office culture

It sure takes time to understand the office culture. Since every organizational culture varies from
office to office. Some have a rigid structure while others are flexible. Though organizations are
moving more towards flexibility nowadays, some offices do have some strict policies. Then again,
there are some internal differences too. During your first weeks of socializing struggles, trying to
observe the organizational behavior is a challenge. Your perception is very important here since
according to that you progress on socializing.

What to do: If you want to better understand your culture, look at your company’s priorities. These
goals and initiatives reveal what your organization values and what it does not (both explicitly and
implicitly). While every employee contributes to company culture, leaders have more impact and
influence.

· Understanding teamwork

Understanding teamwork is one of the biggest intern problems or internship challenges because
teamwork in the professional sector is very much different than your projects at varsity.
Miscommunication, misinterpretation of the actual objectives, different opinions of team members
are common and vary from that of the project group work you have done. Mishaps in internal
communication also affect your work.

What to do: Establish a connection with each team member. As teams become comfortable with one
another, their efficiency and productivity will improve when trust and confidence will be built upon
each other.

· Competitive Co-interns

Co-interns viewing each other as competitors can sabotage collaboration and teamwork. It can even
cause workers to sabotage one another’s efforts to get ahead, leading to mistrust and fear. Some
95
interns get frustrated by a work environment that feels competitive. Constant comparison can be
exhausting and can eventually be demotivating.

What to do: Contrary to what it looks like, competitive co-interns make your experience better. You
will get to feel real pressure to work better and get noticed instead of just doing random work and
completing your internship duration.

Unpaid Internships are exploiting youngsters

In the past, unpaid internships have become a common practice amongst companies. For an
internship to be academically worthy, students doing internships are expected to gain hands-on
experience that helps them develop the knowledge and skills required to gain entry into their field.
For every student who asks for a stipend, there is always that one person who is willing to do it for
free.

The cracking down on the unpaid internship has recently come to light due to employers seeking free
labor with no intention of hiring the intern in the future. Unpaid internships have become more and
more common since the recent economic recession. When evaluating, the growth of unpaid
internships must be viewed in light of their effect on the intern and the overall economy.

There is also the inequality factor since only students with financial means can do them as those
students that are not wealthy need to make money.

96
 Usefulness of Training
There are many benefits to completing an MBA internship, whether it’s required or not. It’s possible
that you have enough experience that an internship doesn’t make sense for you, or you are already
employed and don’t have time for an internship. Even so, an MBA internship can add undeniable
value to your education.

Key Skill and Attitudes Learnt:

Internship programme proved to be a valuable opportunity to learn and get acquainted with real
world first hand workplace experience. It proved to be a valuable platform where we could use the
knowledge gained during our classroom in the practical world. Through internship programme, I got
an opportunity to expose myself to the working environment and unleash my potential. The past
seven weeks at Nitin Tyagi & Company was an excellent opportunity for me to gain valuable
experience in the auditing and accounting field. The major skills and attitudes that I was able learn
during internship period are as follows:

Simultaneous study and working skill:

The internship programme made me explore my potential and ability to work and study parallel. I
previously believed that I could not take work and study side by side. But my internship programme
helped me develop and enhance skill of studying and working simultaneously.

Team work:

During my internship, I was inducted as a team member and was assigned various activities that had
to be performed in a team. It taught me how activities are to be performed in a team and impact of
behaviour of one on the work and performance of the other team member. I realized what we studied
was real. The proper team work lead to synergy benefits. On the contrary, loafing by some team
members could lead to huge negative impacts on the overall team performance. I learned the
importance of team work and some general skills required while working in a team.

Knowledge on general operating procedures of audit firms:

Previously, I was unaware of general operating procedures of audit firms. But after completing
internship period, I got to learn the general views and guidelines regarding working procedures and
reporting practices.

97
Experience of real world accounting and auditing practices:

Our education system is more of parrot learning. Rather than doing real world examples, we stick to
typical traditional theoretical system of learning even in practical courses like accounting. We were
taught same sorts of practical problems. So when I was exposed to the financial statements, I was
totally shocked. We were used to the hypothetical financial statements with limited number of items
in trial balances and other financial statements like income statement, balance sheet etc. But when I
got exposed to the real ones, I found huge differences and contrasts with the hypothetical ones that
we are taught. So I got the opportunity to get acquainted with the real world auditing and accounting
practices.

Knowledge of Gratuity fund and the way of calculation:

I had the chance to learn about what the gratuity fund is and its importance to the employees. I also
got the opportunity to learn the skill of calculating gratuity fund.

Became aware about general taxation system in the country:

Another important thing I learnt during my internship was about the general taxation system. I got
familiar with various kinds of taxes like Income tax for individuals and corporate organizations,
Value Added Tax (VAT), Tax Deducted at Source (TDS)that are prevalent in the country. In
addition I became aware about the instalment method of payment of taxes and filing of advance tax
and tax returns for the same.

Develop your professional skills.

An internship is the quickest and best way to develop your soft and hard skills in a real-world setting
and put yourself to the test. It gives you an idea of what skills are needed to succeed in your industry
or job position and what you can bring as an employee. It’s about building your employability after
graduation.

Potential for future job

An MBA internship alone may make an MBA worth it for you. A majority of companies choose to
either recruit or hire their MBA interns directly after graduation for full-time positions. Even if
you’re not hired by the company you interned for, the experience is a great addition to your resume
and can help you secure a different job after graduation.

98
Cement your MBA learning.

MBAs are about practical, hands-on learning, and working as an intern is one of the best ways to
apply the knowledge and skills you’re learning in the classroom to the real world.

Grow your professional network.

MBA interns commonly work as part of a team, so the opportunities for professional networking are
right there. As an intern you’ll get to know a company inside out, and make connections across the
team or department you’re working with.

Learn about a new industry or job function.

If your plan is to change jobs or change industries, an internship is the easiest way to broaden your
knowledge, fast. You can use your internship as a test drive to see if this is the right career move for
you.

Earn a salary during the summer months.

Bringing in a little extra cash during your studies is always a bonus, and MBA interns are typically
paid a salary. Some MBA interns are paid very generously, depending on the company and industry
they intern for. Aside from MBA scholarships, sponsorships or savings, it’s one of the best ways to
earn some extra income for your education.

99
ANNEXURE

100
 Bibliography

• Brigham, E.F., and J.F. Houston. 2012. Fundamentals of Financial Management,

Concise. 7th ed. Mason, OH: Harcourt College Publisher.
• Coca-Cola Company. 2003–2013. SEC Annual Reports.
• Collier, H.W., T. Grai, S. Haslitt, and C.B. McGowan, Jr. July/August 2010. “Using Actual
Financial Accounting Information to Conduct Financial Ratio Analysis: The Case of
Motorola,” Journal of Business Case Studies 6, no. 4, pp. 23–32.
• Damodaran, A. 2006. Applied Corporate Finance 2nd ed. New York, NY: John Wiley &
Sons, Inc.
• Gardner, J.C., C.B. McGowan Jr., and S.E. Moeller. September/October 2011. “Using
Accounting Information for Financial Planning and Forecasting: An Application of the
Sustainable Growth Model ” Journal of Business ...
• https://www.businesstoday.in/current/economy-politics/why-many-registered-taxpayers-are-
notfiling-gst-returns/story/271554.html Department, E. (2018, July 17). Education
Department. Retrieved
www.kareducation.com//economictimes.indiatimes.com/articleshow/63232433.cms?utm_sou
rce=contentofinterest &utm_medium=text&utm_campaign=cppst
https://economictimes.indiatimes.com/news/economy/policy/over-68000-companies-
registeredin-8-months-post-gst-union-minister/articleshow/63430894.cms /

101
Tables and Charts

102
103
104
Photographs During Internship

105
106