A Study of Accounting and Legal Issues on E-

Commerce

A Research Project Submitted to

University of Mumbai of (Accounting and
Finance)
Under the Faculty of Commerce

By
Mansi Mahesh Mhatre
MAF(A) Roll no.35 ,PRN
no.2318040035

Under the Guidance of Dr. Shefali

Kondewar
VPMs K.G. Joshi College of Arts
And N.G. Bedekar College of
Commerce (Autonomous), Thane
2024
2024

DECLARATION

This is to certify that the material

embodied in the present work entitled “A
STUDY OF ACCOUNTING AND LEGAL
ISSUES IN E-COMMERCE” is based on my
original research work. It has not been
submitted in part or full for any other
Degree or Diploma of any University.
My indebtedness to other works has been
duly acknowledged at relevant places.

Mansi Mhatre
 ACKNOWLEDGEMENT
I like to extend my gratitude towards my
subjects who despite their busy schedule gave
their precious time in helping me to fill the
questionnaire and provided all the necessary
information needed for conducting the
research.
I convey my sincere thanks to all the
respondents of the study, who spread their
valuable time and provide all necessary
information required for the purpose of
research.
I am highly indebted to my parents and friends
who always gave me continuous
encouragement and confidence at every stage
of my life, and without their love I would never
be able to complete such a cumbersome task
who always stood by me through the thick and
thin, and always encouraged me at times when
I felt low in life.
Above all, I thank almighty God, for showering
his blessing upon me.
 Mansi Mhatre

INDEX
Chapt Title Pag
er No. e
No.
1. Introduction
2. Research
Methodology
3. Review on
Literature
4. Company Profile
5. Data Analysis
and
Interpretation
 6. Conclusion,
Recommendation
7. Appendix
(Questionnaire)

8. References
INTRODUCTION
Electronic commerce is a powerful concept and
process that has fundamentally changed the current
of human life. Electronic commerce is one of the
main criteria of revolution of Information Technology
and communication in the field of economy. This
style of trading due to the enormous benefits for
human has spread rapidly.
E-commerce initiated during the 1970’s. It provides
multiple benefits to the consumers in form of
availability of goods at lower cost, wider choice and
saves time. The general category of e-commerce can
be broken down into two parts: E merchandise: E-
finance. It involves conducting business using
modern communication instruments: telephone, fax,
e-payment, money transfer systems, e data
interchange and the Internet.
Online businesses like financial services, travel,
entertainment, and groceries are all likely to grow.
Forces influencing the distribution of global e-
commerce and its forms include economic factors,
political factors, cultural factors and supranational
institutions.
It raises key challenges that are being faced by
consumers relating to e-commerce viz., Ethical
issues, Perceptions of risk in e-service encounters,
challenges for e-commerce education.
Electronic commerce, or e-commerce, which exactly
means business trading through the Internet, has
been around the globe since mid-90s. However, until
the recent few years, e-commerce is getting more
and more attention from entrepreneur and
consumers, both local and international.
One of the main reasons is due to the highly
successful operations of some well-known names on
the Internet, such as eBay, Yahoo and Dell. The sales
revenue these companies show in their annual
reports are without doubt, one of the biggest factors
why e-commerce is important in the commercial
market nowadays
E-commerce proved its significance based on the
fact where time is essence. In the commercial
markets, time plays an important role to both the
business and consumers.
From the business perspective, with less time spent
during each transaction, more transaction can be
achieved on the same day. As for the consumer, they
will save up more time during their transaction.
Because of this, e-commerce steps in and replaced
the traditional commerce method where a single
transaction can cost both parties a lot of valuable
time. With just a few clicks in minutes, a transaction
or an order can be placed and completed via the
internet with ease.
E-commerce began during the 1970’s. The
availability of credit cards, overnight delivery and
mail order catalogs began the shop at home concept.
In the past few years, enterprises across the globe
have experienced significant changes in their
business information system. Huge investments were
made in enterprise resource planning system
implementations but still they struggle to get timely
information that is needed to make effective
business decision and to ensure continuous growth
of enterprises.
Placing “e” in front of any process or function
seemed to be the magic prescription for never
ending story of success and rapid returns for
enterprises. E-business, e procurement, e-sales, e-
payment, e-banking, e-CRM, e-CAD, e-delivery are
just a few. Internet, for example is becoming one of
the most popular medium in transmitting various
data.
Users can find any kind of information within a
shorter time compared with conventional method
that consumes more time. The Internet has furthered
this by changing from an information tool to a
shopping alternative. Consumers who shop on the
Internet do so because they desire convenience,
choice, information, and value.
An organization that chooses to participate in the
electronic market must look at its information
technology (IT) capabilities and knowledge of the
electronic market and the company’s efficiency.
There are two types of businesses that use electronic
marketing: the expert and the passive. The experts
are the firms who have reengineered their business
to function effectively in the electronic market. The
passives are the firms who have a presence but do
not conduct business in the electronic market.
The demographics of Internet shoppers are changing
and businesses have to market their products to
appeal to this new customer. The number of
households shopping online has increased and now
over half are female. More middle income families
are also using the Internet, mostly as a result of the
prices available and convenience offered from
shopping online.
The fastest growing group are older individuals;
however, this group is underrepresented (Fuscaldo
2003). Companies must be aware of the
demographics of people who are shopping from them
in order to effectively market their products and
make advertisements that will appeal to their target
market.
Even with the growth and development of the
Internet and e-commerce, not every country has the
web presence like the U.S. The infrastructure of e-
commerce varies widely across countries and all are
behind the United States. U.S. websites dominate the
international market in visits and sales. The main
reasons for these differences are the environments
of the other countries.
Different legal, political, and cultural environments
cause different purchasing behaviors and attitudes
regarding ecommerce.
Some countries’ traditions and culture do not support
the amount of web presence that is found in the U.S.
Countries also have a preference bias when it comes
to buying items.
This is called the “country-of-origin” effect and
means the perception that one country has of
another country will affect their perception of that
country’s products and thus, their buying behavior
(Ulgado 2002). As the use of the internet to shop
rises, retail markets must continue to monitor their
business online and take advantage of ways that can
increase security of transactions and build consumer
trust (Martin 2002).
As evidence that the use of e-commerce is increasing
and becoming more popular, CMA Management
conducted a reader survey on various topics of
interest. The magazine found that “almost 80
percent of the respondents’ companies have a Web
site” (Demers 2002). They also found that 35 percent
of the companies are involved in e-commerce
(Demers 2002). The following articles summarize
various issues companies are facing with e-
commerce and the Internet.
The Increased responsibilities of various accounting
positions, including internal auditors, management
accountants, and tax accountants, are discussed, as
well as, how a web presence can help a company
expand its business and customer base while still
maintaining security and customer privacy. Two case
studies provide some advantages and disadvantages
of e-commerce and conducting business over the
Internet.

Meaning Of E-Commerce :-
E-Commerce is the ability of a company to have a
dynamic presence on the Internet which allowed the
company to conduct its business electronically, in
essence having an electronic shop. Products can be
advertised, sold and paid for all electronically
without the need for it to be processed by a human
being.
Due to the vastness of the internet advertising and
the website can be exposed to hundreds of people
around the world for almost nil cost and with
information being able to be changed almost
instantly the site can always be kept up to date with
all the latest products to match with consumers
demands.
The biggest advantage of E-Commerce is the ability
to provide secure shopping transactions via the
internet and coupled with almost instant verification
and validation of credit card transactions. This has
caused E-Commerce sites to explode as they cost
much less than a store front in a town and has the
ability to serve many more customers

The Importance Of The

Study :-
This study was made to look in to the e-commerce
and its effect on the accounting information system
in the Islamic banks and this comes from the
importance of the accounting information system
and its great role in developing banks and its
contribution banks growth more effectively through
the value that this system adds to facilitate the
banks mission and with the extension of the
informational revolution and the technical,
technological development the operations
procedures have become more accurate and rapid
on one hand and less cost and effort on the other
hand which necessarily contributed to turn the
traditional commerce system into the e-commerce :-
system.

Objectives Of The Study :-

The research questions of this study relate to the
factors that influence the adoption and
implementation of ecommerce in developing
counties with particular reference to the Indian
banking industry. The specific questions to be
examined are:
1. What factors determine the likelihood of
adoption of ecommerce in Indian banks?
The main objectives are:
1. To understand the ecommerce adoption
behavior of banks and the factors that could
drive or inhibit the wide adoption and use of
 electronic commerce in the Indian Banking
Industry,
2. To study and compare significant difference in
male and female account professionals
regarding extent of use of company e-
commerce applications
3. To study and compare significant difference in
male and female account professionals
regarding their attitude towards impact of
electronic commerce on the development of
AISs within the client company
4. To study and compare significant difference in
male and female account professionals
regarding their attitude towards the
challenges facing the tax system in light of
the development of electronic commerce and
proliferation.
5. To study and compare significant difference in
male and female account professionals
regarding their attitude towards the legal
issues about ecommerce.
6. To study and compare significant difference in
highly and lowly educated account
professionals regarding their attitude towards
extent of use of company e-commerce
applications
7. To study and compare significant difference in
highly and lowly educated account
professionals regarding their attitude towards
the impact of electronic commerce on the
development of AISs within the client
company
 8. To study and compare significant difference in
highly and lowly educated account
professionals regarding their attitude towards
the challenges facing the tax system in light
of the development of electronic commerce
and proliferation
9. To study and compare significant difference in
highly and lowly educated account
professionals regarding their attitude towards
the legal issues about ecommerce
10. To study and compare significant difference
among accounting professionals belonging to
the age group of 20-35 years, 36-50 years and
51 and above years regarding their attitude
towards extent of use of company e-
commerce applications.

Hypothesis :-
1. There exist no significant difference in male
and female account professionals regarding
extent of use of company e-commerce
applications
2. There exist no significant difference in male
and female account professionals regarding
their attitude towards impact of electronic
commerce on the development of AISs within
the client company
3. There exist no significant difference in male
and female account professionals regarding
their attitude towards the challenges facing
 the tax system in light of the development of
electronic commerce and proliferation.
4. There exists no significant difference in male
and female account professionals regarding
their attitude towards the legal issues about
ecommerce.
5. There exist no significant difference in highly
and lowly educated account professionals
regarding their attitude towards extent of use
of company ecommerce applications
6. There exist no significant difference in highly
and lowly educated account professionals
regarding their attitude towards the impact of
electronic commerce on the development of
AISs within the client company
7. There exist no significant difference in highly
and lowly educated account professionals
regarding their attitude towards the
challenges facing the tax system in light of
the development of electronic commerce and
proliferation
8. There exist no significant difference in highly
and lowly educated account professionals
regarding their attitude towards the legal
issues about ecommerce
9. There exist no significant differences among
accounting professionals belonging to the age
group of 20-35 years, 36-50 years and 51 and
above years regarding their attitude towards
extent of use of company e-commerce
applications.
 10. There exists no significant difference among
accounting professionals belonging to the age
group of 20-35 years, 36-50 years and 51 and
above years regarding their attitude towards
the impact of electronic commerce on the
development of AISs within the client
company.

Theory On E- Commerce :-
E-commerce makes information on products and the
market as a whole readily available and accessible,
and increases price transparency, which enable
customers to make more appropriate purchasing
decisions. E-commerce transforms old economy
relationships (vertical/linear relationships) to new
economy relationships characterized by end-to-end
relationship management solutions (integrated or
extended relationships). It is a powerful concept and
process that has fundamentally changed the current
of human life. Electronic commerce is one of the
main criteria of revolution of Information Technology
and communication in the field of economy.
This style of trading due to the enormous benefits for
human has spread rapidly. For example, form and
appearance of traditional business has
fundamentally changed. These changes are basis for
any decision in the economy. Existence of virtual
markets, passages and stores that have not occupy
any physical space, allowing access and circulation
in these markets for a moment and anywhere in the
world without leaving home is possible. Select and
order goods that are placed in virtual shop windows
at unspecified parts of the world and also are
advertising on virtual networks and payment is
provided through electronic services, all of these
options have been caused that electronic commerce

is considered the miracle of our century.

Importance Of E-
Commerce :-
Electronic commerce, or e-commerce, which literally
means business trading through the Internet, has
been around the globe since mid-90s. However, until
the recent few years, e-commerce is getting more
and more attention from entrepreneur and
consumers, both local and international. One of the
main reasons is due to the highly successful
operations of some well-known names on the
Internet, such as eBay, Yahoo and Dell. The sales
revenue these companies show in their annual
reports are without doubt, one of the biggest factors
why e-commerce is important in the commercial
market nowadays
E-commerce proved its importance based on the fact
where time is essence. In the commercial markets,
time plays an important role to both the business
and consumers. From the business perspective, with
less time spent during each transaction, more
transaction can be achieved on the same day. As for
the consumer, they will save up more time during
their transaction. Because of this, e-commerce steps
in and replaced the traditional commerce method
where a single transaction can cost both parties a lot
of valuable time. With just a few clicks in minutes, a
transaction or an order can be placed and completed
via the internet with ease.
Nowadays E-Commerce is a global word. Although it
is omnipresent but we never realize its importance
primarily because it is known by different names.
People do site promotion, SEO, affiliate marketing,
and many other things but the goal is same i.e. to
get clients and sell the products or services of the
company. ‘E’ is just a medium to transact online. The
following are some peculiar importance of e-
commerce which makes it considerably appreciable.
1. Exploitation of New Business: - Broadly
speaking, electronic commerce emphasizes
the generation and exploitation of
new .business opportunities and to use
popular phrases: “generate business value” or
“do more with less”.
2. Enabling the Customers:- Electronic
Commerce is enabling the customer to have
an increasing say in what products are made,
how products are made and how services are
delivered (movement from a slow order
fulfillment process with little understanding of
what is taking place inside the firm, to a faster
and rt1ore open process with customers
having greater control.
3. Improvement of Business Transaction: -
Electronic Commerce endeavors to improve
the execution of business transaction over
various networks.
4. Effective Performance: - It leads to more
effective performance i.e. better quality,
greater customer satisfaction and better
corporate decision making.
5. Greater Economic Efficiency: - We may
achieve greater economic efficiency (lower
cost) and more rapid exchange (high speed,
accelerated, or real-time interaction) with the
help of electronic commerce.
6. Execution of Information: - It enables the
execution of information-laden transactions
between two or more parties using inter
connected networks. These networks can be a
combination of “plain old telephone system”
(POTS), Cable TV, leased lines and wireless.
Information based transactions are creating
new ways of doing business and even new
types of business.
7. Incorporating Transaction: - Electronic
Commerce also incorporates transaction
management, which organizes, routes,
processes and tracks transactions. It also
includes consumers making electronic
payments and funds transfers.
8. Increasing of Revenue: - Firm use technology
to either lower operating costs or increase
revenue. Electronic Commerce has the
Potential to increase revenue by creating new
 markets for old products, creating new
information-based products, and establishing
new service delivery channels to better serve
and interact with customers. Reduce
operating costs by enabling better
coordination in the sales, production and
distribution processes and to consolidate
operations arid reduce overhead.

Aims Of E-Commerce :-
The growth in electronic commerce has lead to a
substantially increased demand for information and
communications technology (ICT). Expenditure by
organizations around the globe on external ICT
products and services amounts to $1.45 trillion
($1,450 billion) annually. The companies providing
those products and services are now major
contributors to their national economies, acting as
engines for economic growth in all industry sectors.
With over 200 million users online to the Internet
world-wide, electronic commerce now accounts for a
growing proportion of world trade. The Internet
business model, which gives suppliers direct access
to customers and new levels of efficiency with less
assets and lower management overheads, is being
eagerly investigated by major corporations.
Finally many companies, organizations, and
communities in India are beginning to take
advantage of the potential of e-commerce; critical
challenges remain to be overcome before e-
commerce would become an asset for common
people. The aim of the research was to find out how
aware businesses and consumers are of electronic
commerce and to identify potential action areas.
Through research work, it has been found that there
is also the consistent relationship between E
commerce and accounting.
Hence, there are evidence that legal issues and
others, therefore researcher suggest in her research
work.
Internet fraud and its sophistication have grown even
faster than the Internet itself. There is a chance of a
crime over the internet when buyers and sellers do
not know each other and cannot even see each
other. During the first few years of e-commerce, the
public witnessed many frauds committed over the
internet. With the globalization trends all over the
world it is difficult for any nation big or small,
developed or developing, to remain isolated from
what is happening around. Financial sector in general
and banking industry in particular is the largest
spender and beneficiary from information
technology. Furthermore, when electronic contracts
involve parties in different countries, questions arise
in terms of which country’s law applies, if the
transaction is subject to taxation, if the contract is
legally enforceable, what dispute resolution form
applies, and so on.
Researcher describe in detail about legal issues in
Accounting & E-commerce/ E Banking. Researcher
describes at first about E-Commerce/E-Banking and
thereafter legal issues in Accounting & E-commerce.
In recent years, the banking industry around the
world has been undergoing a quick transformation.
The deepening of information technology has
facilitated better tracking and fulfillment of
commitments, multiple delivery channels for online
customers. Information technology and the
communications networking systems have
revolutionized the working of banks and financial
entities all over the world.
E-businesses are growing as businesses recognize
the benefits of digital supply-chain management.
Financial information must be shared digitally
between buyers, suppliers, financial institutions, and
regulatory agencies. Security of these operations is
becoming an increasing concern in order to prevent
fraud and theft. One way to increase security is
through “collaboration with internal departments
over intranets and with trading partners over
extranets” (Gundavelli 2001). The three types of
financial data security that it is necessary to have
are authentication, authorization, and confidentiality.
Authentication allows only certain people the access
to information.

Features Of E-Commerce
Technology :-
Electronic Commerce means better business
communication and data interchange information is
essential for any business. The quality and quantity
of information which a business delivers to
customers or use this information to make decisions
can determine just how competitive the business is.
A company already may be using a number of
electronic based tools to help acquire and extend
information and communication needs. These may
include personal computers, word processors,
courier, facsimile machines, telex services, cellular
phones, pagers and more. Unfortunately, many of
today’s communication tools are not really up to the
speed of today’s business needs, and can actually
create barriers to achieving the goals set on the
basis of strategies formulated by a company.
For instance, postal facilities can keep business
waiting for information for days or even weeks.
Overnight couriers may save time but can be an
expensive proportion. Traditional telex and fax is
quick but costly and communicating by telephone
can become an endless game of tag.
Now a business can avoid these problems by using e-
commerce which is fast, cost efficient, time saying
and easy to use -i.e., economic tangibility and good
business generation. Electronic business can result in
better transactions, wide market coverage by
offering the benefits of speed, convenience, being
cost effective, timeliness, high profit margins, instant
customer relations, no loss of customers, impact and
control- all are a fraction of the past traditional
business methods. A concern can do everything it
can to run its business efficiently and profitably.
Another feature is that it helps to maintain greater
control, at work, home or while traveling,
communicate with any business partner or firm,
anywhere instantly.
Improve Responsiveness
How does e-commerce help business? It helps by
improving responsiveness to market conditions and
customer preferences. Every business must know
how important timing is to marketing and selling
products. Timing is important to cater to the
demands of customers. If distributors, dealers and
sales force do not get the right information at the
right time, there will be a financial crisis as well as
losing valuable customers.
E-commerce network enables a company to
implement marketing programmes with greater
precision such as :
• Pre-empt competitiveness with a change in
marketing tactics before they can react.
• Improve responsiveness by revising price
change and marketing programmes as and
when required.
Expedites and Streamlines Reporting
It has been an experience in conventional
commercial practices with factors like delays and
ineffectiveness in reporting systems crippling
effectiveness. Responsive, timely information flows
from sound management systems. Electronic
commerce improves delivery and distribution both
within and outside organization’s. The benefits are:
• Stored lists of key recipients facilitate
distribution.
• Electronic delivery time.
Coordinates Sales Efforts
Some marketing studies reveal that most sales
people spend nearly 75 per cent of their time on the
roads, relying heavily on telephone calls for contact
with their head officers and customers. Telephone
tag makes an endless frustrating game out of
tracking down leads and following up to authenticate
sales calls. In addition, misplaced or undelivered
information results in low sales records. Other
benefits of electronic business are:
• Eliminating telephone tag.
• Sending and receiving message at
convenience.
• Linking sales team numbers to gather,
including international representatives.
• Closing sales without delays.
Effectiveness and Efficiency
Electronic commerce can increase the efficiency and
effectiveness of public relation programmes,
broadcast press releases, financial updates and other
corporate communications. Copy reviews and
approvals are expedited by circulating instant
messages to key internal and external contacts.
Close Contact with Clients
In any business where maintaining close contact with
customers is a priority consideration, electronic
business can increase responsiveness of the
company’ and ensure customer satisfaction.
Appointment confirmations, requests for information,
follow-up reports and electronic data interchange can
be effected with greater efficiency using instant
messages.

Technological Development
In Banking :-
Recent Developments in Banking Sector
(1) Internet:
Internet is a networking of computers. In this
marketing message can be transferred and received
worldwide. The data can be sent and received in any
part of the world. In no time, internet facility can do
many a job for us. It includes the following:
• This net can work as electronic mailing
system.
• It can have access to the distant database,
which may be a newspaper of foreign
country.
 • We can exchange our ideas through
Internet. We can make contact with anyone
who is a linked with internet.
• On internet, we can exchange letters,
figures/diagrams and music recording.
• Internet is a fast developing net and is of
utmost important for public sector
undertaking, Education Institutions,
Research Organization etc.

(2) Society for Worldwide Inter-bank

Financial Telecommunication
(SWIFT):
SWIFT, as a co-operative society was formed in May
1973 with 239 participating banks from 15 countries
with its headquarters at Brussels. It started
functioning in May 1977. RBI d 27 other public sector
banks as well as 8 foreign banks in India have
obtained the membership of the SWIFT. SWIFT
provides have rapid, secure, reliable and cost
effective mode of transmitting the financial
messages worldwide. At present more than 3000
banks are the members of the network. To cater to
the growth in messages, SWIFT was upgrade in the
80s and this version is called SWIFT-II. Banks in India
are hooked to SWIFT-II system. SWIFT is a method of
the sophisticated message transmission of
international repute. This is highly cost effective,
reliable and safe means of fund transfer.
• This network also facilitates the transfer of
messages relating to fixed deposit, interest
 • Payment, debit-credit statements, foreign
exchange etc.
• This service is available throughout the
year, 24 hours a day.
• This system ensure against any loss of
mutilation against transmission.
• It serves almost all financial institution and
selected range of other users. GCBM
• It is clear from the above benefit of SWIFT
that it is very beneficial in effective
customer service. SWIFT has extended its
range to users like brokers, trust and other
agents.

Future Trends In Information

Technology In Banking :-
It is very difficult to predict how electronic banking
will improve and expand in coming years. With the
help of latest technology the potential of check
imaging technology can be realized. The banking
sector may become more complex with further
globalization, consolidation, deregulation and
diversification of financial industry.
The latest technology broad band transmission, Web
TV and Wireless Internet access via mobile phones
will give further impetus to the digital revolution. In
the future banks will be able to provide services to
their customers wherever they are. On the other
hand a Web service is a technology that allows
desperate computers to communicate easily or
simply.
The banking industry has been a leader in the
Internet application in recent years. “Ebanking”
(referring to all banking transactions completing
through Internet applications) has thus become a hot
topic in the related literature. Some key issues
addressed in the recent literature about the e-
banking include: customer acceptance and
satisfaction, services rendered, value added for the
banks and consumers, privacy concerns, profitability,
operational risks, and competition from non-banking
institutions. Smaller community banks, among
others, are more interested in the ebanking services
to gain competitive edges over their larger
counterparts.
IT and India have become synonymous. Whether
India becomes a destination for outsourcing or it
becomes a development Centre is matter of debate.
As far as banking industry in India is concerned it can
be said that although the Indian banks may not be as
technologically advanced as their counterparts in the
developed world, they are following the majority of
international trends on the IT front. The strength of
Indian banking lie in withering storms and rising up
to the expectations from all the quarters catching up
with all the global trends is a matter of time.

Challenges Ahead :-
Important Business Challenges:
 • Meet customer expectations on service and
facility offered by the bank.
• Customer retention.
• Managing the spread and sustain the
operating profit.
• Retaining the current market share in the
industry and the improving the same.
• Completion from other players in the
banking industry.

Way Ahead :-
At corporate level to meet the challenges, various
initiated have been taken and implementation is in
process beside up gradation of data Centre facilities:
(1) Centralization of functions
• Inward clearing data uploading and
processing
• Check book issues
• MIS-On-Line Monitoring/Generation of
statement by controlling offices
• Audit from the remote location
• Sending mails and statement of accounts to
customers & completion of non mandatory
field in newly opened accounts.
(2) Single Window System
(3) Revised Account opening from for capturing
complete customer/Account data as per CBS
requirement.
(4) Call centre for customers.
 (5) Customer Relationship Management (CRM)
Application.
(6) Data Warehousing.

Benefits of Electronic
Banking :-
Thornton and White (2001) compared several
electronic distribution channels available for banks in
US and concluded that customer orientation –
towards convenience, service, technology, change,
knowledge about computing and the Internet –
affected the usage of different channels.
Howcroft et al., (2002) found that the most important
factors encouraging consumers to use online
banking are lower fees followed by reducing paper
work and human error, which subsequently minimize
disputes (Kiang et al., 2000).
Byers and Lederer, (2001) concluded that it was
changing consumer attitudes rather than bank cost
structures that determines the changes in
distribution channels; they added that virtual banks
can only be profitable when the segment that prefers
electronic media is approximately twice the size of
the segment preferring street banks.
Convenience of conducting banking outside the
branch official opening hours has been found
significant in cases of adoption. Banks provide
customers convenient, inexpensive access to the
bank 24 hours a day and seven days a week.
Moutinho et al., (1997) pointed out that each ATM
could carry out the same, essentially routine,
transactions as do human tellers in branch offices,
but at half the cost and with a four to-one advantage
in productivity.
Gerrard and Cunningham (2003) found a positive
correlation between convenience and online banking
and remarked that a primary benefit for the bank is
cost saving and for the consumers a primary benefits
is convenience. Multi-functionality of an IT based
services may be another feature that satisfies
customer needs (Gerson, 1998).
A reduction in the percentage of customers visiting
banks with an increase in alternative channels of
distribution will also minimize the queues in the
branches (Thornton and White, 2001). Increased
availability and accessibility of more self service
distribution channels helps bank administration in
reducing the expensive branch network and its
associate staff overheads. Bank employees and
office space that are released in this way may be
used for some other profitable ventures (Birch and
Young, 1997).
RESEARCH METHODOLOGY
Introduction :-
This chapter deals with the statement of the
problem, objectives of the study, limitations of the
study, description of the study area, sampling
procedure employed, the nature and source of data,
and various tools and techniques employed to
accomplish the objectives of the study.

Meaning of Research :-
Research is an attempt to give answer of
fundamental questions whose answers are not
known. The answer depends on try made by the
person. It is an attempt to give answer of such type
of research questions whose answers are not
available to the person.
In fact, research is a process in which problems are
solved on the basis of analysis of factors. Research is
a managerial and pre planned process by which
knowledge of the person is developed and human
life is made easy and effective. Human stress is also
decrease by research work. It is a process to solve
the scientific problems.
New things are searched by researcher and new true
things are procured. Old factors are made new inter
predation, such circumstances are known in which
variables are active and another is not active, while
those variables seem same.

Research Design :-
Research design is a planning by which it is known
that how many free variables are used in the search.
How many level have they which laws have been
used to control extra variables and measurement of
dependent variables or D V has been done in which it
is outlined. It is clear that research design is a
scientific plan or outline to know answer about
research problems.

Statement Of The Problem :-

The current study’s main area is “Factors Affecting
the Adoption of Electronic Commerce: Evidence from
Indian Banks”. There are three reasons for
concentrating on this topic: 1) Limited research on
ecommerce in developing countries particularly in
India, 2) Haryana is a potentially lucrative market for
ecommerce services, and 3) The banking sector has
been most successful with ecommerce in Haryana.

Research Methodology :-
Research in social and behavioral sciences can be
subdivided into exploratory and confirmatory
methods. The research purpose and question of this
thesis can be described as both exploratory and
confirmatory but largely confirmatory, since we aim
to find out factors determine the likelihood of
adoption of ecommerce Indian banks while using
existing theory.

Data Collection :-
Primary sources :- To address the analytical aspects
of the subject of the study, relying on the collection
Preliminary data from the questionnaire as a tool
specifically designed for this purpose.
Secondary sources :-where to address the general
framework of the study by drawing on sources of
secondary data, which is in books, India and foreign-
related references, also periodicals, articles, reports,
research and previous studies on the subject of
study, and reading in the various Internet sites.

Tool Used :-
A standardized questionnaire made by the
researcher herself was used to collect the data.
Structure Validity of the
Questionnaire :-
Structure validity is the second statistical test that
used to test the validity of the questionnaire
structure by testing the validity of each field and the
validity of the whole questionnaire. It measures the
correlation coefficient between one field and all the
fields of the questionnaire that have the same level
of liker scale.

Reliability Of The Research :-

Reliability of an instrument is the degree of
consistency with which it measures the attribute it is
supposed to be measuring. The test is repeated to
the same sample of people on two occasions and
then compares the scores obtained by computing a
reliability coefficient.

Statistical Techniques
Used :-
The data collected were recorded, edited, classified
and analyzed using relevant statistical techniques
and employing appropriated test. The data are
presented through simple classification and with the
help of percentage, Mean, Standard Deviation, ‘t’
test and ANOVA (Analysis of Variance) and factor
analysis.

Limitations Of The Study :-

Taking into consideration the objectives of the study
and its coverage both in terms of time span and the
number of banks, the study is prone to many
limitations. Some of the major unavoidable
limitations of the present work are as follows:
The information collected for the present study is
entirely primary in nature. In such a case, the study
carries all the limitations inherent with the primary
data and financial information.
While computing the data for the purpose of
analysis, the approximation of decimal places leads
to minor variations in ratios and percentage analysis,
which are bound to exist in the present study.
Various accounting and statistical tools extensively
used for the present study have their own
limitations.
This study fully based on the information of the
account professionals therefore subject to inherent
limitations of the financial statement.
The research was carried with a limited number of
samples size because of time constrains.
Thus, the findings of the present study should be
used judiciously and carefully taking into account the
various limitations.

REVIEW OF LITERATURE
Review is an integral part of the research helping the
researcher in classification of this problem and avoid
duplication. It helps in defining and delimiting the
problem. There exists a continuum between the old
theories and the new ones. Knowledge is dynamic
and it always grows along this continuum. The past is
to be discussed to view a problem in a proper
perspective so that a researcher may streamline
his/her efforts to solve the problem.
The study of related literature provide’ essential
information on the work already available in that
field while avoiding unnecessary duplication. It also
helps revealing the facts and figures which had
earlier remained untouched, unexpected and
unexplored in the previews research studies. In
simple terms, survey of related literature means to
locate, to read and to evaluate the past as well as
the current literature of research concerned with the
project undertaken. The quote C.V. Hood, Without a
critical study of the related literature the investigator
will be groping in the dark and perhaps uselessly
repeat work already done. Therefore, the study of
related literature can never be ignored in any type of
research.
The study of related literature is important as it acts
as a lighthouse not only with regard to extent of
work done but it also enables investigator to
perceive the gaps and lacunas in the concerned help
of research. The related studies stimulate and
encourage. The investigator to go deep into the
intricacies of the problems and also enables to derive
respective conclusions.
Only Human Being is a person who can get benefit of
the knowledge which has been collected from
centuries. There are three parts of the knowledge of
Human being (1) To collect the knowledge (2) To
Broadcast of knowledge and (3) To make progress of
knowledge. These facts are important in research,
which keep continue try for finding in books and
libraries like as copied. In the words of Walter R.
Borg, “The literature in any field forms the
foundation upon which all future work will be built”.
Without knowing the past we cannot do something
new in the field of research. If we want to do some
new work in a subject, it is very necessary that we
should know the past of that subject. Review of the
related literature is an essential prerequisite to
actual planning and execution of any research to
actual planning and execution of any research
project. They help the researcher in formulating
various hypotheses. They guide in respect of
selection of problem, its statements, definition and
delimitations. This avoids wastage of time in
research.
The knowledge which is achieved from other
persons/different persons should begin in new shape
with every generation. It make possible to try by
human being in every field to continue cooperation
in the development of knowledge. Researchers
assure that considerable work related with his
proposed research has been completed or not.

Needs of Review of
Literature :-
Review of literature is an important exercise in
researches. In order to solve problems, the available
literature is revised to find out the gaps between
existing bodies of knowledge. The knowledge
gathered in the past needs to be consolidated. It is
advantages to survey the work which has already
been done in a particular field. Before finalizing a
research proposal, may be in any field, it is the
survey of related literature which proves of
paramount assistance in the entire gamut of
methodological steps. The study of related literature
acts as a guide past, not only in regard to the
quantity of work done in the field but also enables
the investigator to perceive the gaps and lacunas in
the concerned field of research.
The review of related literature is the great
significance for researcher, as it guides the
investigator to know about the amount of work done
in the discipline in which the investigator is
conducting the research. It also directs the
researcher to tackle the problem chosen for research
and avoids the risk of duplicity in research. It is
certain that the review of related literature saves
time, money and energy of investigator. Review of
literature is necessary due to following causes.
According to one particular field review of research
work done in a particular field in making plan of
research work. Numerical and quantity analysis of
this research give intimation of this direction.
It is much necessary for every researcher who is well
aware with the information of problems related to
the literature done by others. It is understood and
very necessary to form actual planning and study.
It gives solution to the problems of study, it provides
similarity to choose and recognize the problem of
research. Research makes stories of his thinking on
the basis of review of literature. It provides
foundation for study. Arguments can be made on the
results of study.
The need of review of literature provides complete
structure of the interpretation of review of literature.
Scholar ship can be developed in the field of that
area by review of literature of that field. It sharpens
research objectives, suggests what variables should
be eliminated being non-meaningful increases the
likelihood of interpreting results, aids in interpreting
meaningful even if non-significant results and makes
research cumulative from one study to the next. It
helps in avoiding repetition and in exploring new
dimensions to the existing body of knowledge in the
concerned area. It is a fruitful source of hypotheses
and it help to demonstrate the relationships between
completed research and topics under investigation.

Objectives of Reviews of
Literature :-
Review of literature is an important exercise in
researches. In order to solve problems, the available
literature is revised to find out the gaps between
existing bodies of knowledge. The knowledge
gathered in the past needs to be consolidated. There
are following aims of review of literature in the
research work.
1. This Principle provides tools for thinking,
Interpretation and parkland which can be useful
to choose new problem.
2. Objective of review of literature provides tools
for thinking. Researcher can make research
thinking on the basis of study.
3. It provides suggestion for proper mode, activity
for tools of facts.
4. It selects useful conclusion and comparative
facts. Comparison can be done to conclude
which are achieved from the related studies.
It is helpful to develop general knowledge of
researcher in the field of research. In the light of the
significance of the related literature, it was
indispensable for the investigator to conduct a
survey of the related literature.
Tavakolian (1995) noted that an accounting package
is usually one of the first major computer packages
that a company purchases and it is one of the two
business applications often used, with word
processing being the other. It should not be a
surprise because Accounting plays a very significant
role in the performance of organizations.
Daniel (1999) defines electronic banking as the
delivery of banks’ information and services by banks
to customers via different delivery platforms that can
be used with different terminal devices such as a
personal computer and a mobile phone with browser
or desktop software, telephone or digital television.
Gupta (2000) pointed out that electronic commerce
is revolutionizing business in developed and
developing countries. In fact, EC may change the
economic status of some nations as they become
active in electronic commerce. However, countries
and individuals face severe obstacles as they
struggle against high technology costs, poverty, lack
of education, primitive infrastructure, and restrictive
government regulations. Despite these challenges,
there will be more “Global” in the World Wide Web by
2002, according to U.S.-based consultancy Gartner
Group. EC site developers also face the challenge of
customizing a site so that it can meet the local
needs, preferences, and value systems of many
different cultures. Why customize? Even though
anyone anywhere in the world can access an EC site,
once a visitor is on the site it becomes a window into
the company’s offerings and products. The company
must communicate with the local customer in a
meaningful way. This means that a site based in
Canada that wants to target Argentineans must do
so in a culturally sensitive manner by changing the
language, offering products that its target audience
prefers, and giving users viewing options that suit
their technological sophistication. EC developers,
then, must analyze the similarities and differences
among culture and adapt the site accordingly.
Andersen Consulting, for instance, researched the
best way to offer travel services via electronic
commerce. It discovered that African and German
travelers respond to promises of adventure and
danger, whereas U.S. travelers were motivated by an
emphasis on nature and family. In response,
Andersen changed its site to reflect local preferences
and tastes
A survey conducted by Ghosh (2000) found that
majority of the companies using ecommerce in India
considered e-commerce a substantial part of
corporate strategy.
However, lack of electronic payment facilities and
limited technologies used by trading partners
hampered the adoption of e-commerce across the
entire supply chain. Indian Market Research Bureau
(2000) conducted a survey on the status of
ecommerce in India covering 360 decision makers in
business and 2000 households. It found that
organizations expected that 12 per cent of their
turnover would be contributed through ecommerce
in next two years. The market size of B2B
ecommerce would touch Rs. 50,000 crore by 2001.
According to NASSCOM, ecommerce was expected to
touch Rs. 10,000 crore by 2002.
Kupiec (2000) stated that E-commerce information
and technology can help accountants by providing
meaningful details that allow the true cost of
products to be found. Advertising expenses can be
matched directly with the product sold. Intellectual
capital is now the most commonly discussed issue as
companies determine how knowledge and expertise
can be valued on the financial statements and
determine future benefits to be derived. This concern
is very important to management accountants
because it allows them to understand the impact of
intellectual capital, contributes to proactive
management, and increases the value of external
reports
Marriott and Marriott (2000) noted that companies
used computers for the preparation of management
accounting information, but usually not to their full
potential. It is therefore important that the research
in e-accounting adoption is not limited to adopters
and non-adopters, but that for even adopters the
extent to which e-accounting is used to the
maximum be studied.
Diana Oblinger (2001) reported that one is that
education and continuous learning have become so
vital in all societies that the demand for distance and
open learning will increase. As the availability of the
Internet expands, as computing devices become
more affordable, and as energy requirements and
form factors shrink, e learning will become more
popular. In addition to the importance of lifelong
learning, distance education and e-learning will grow
in popularity because convenience and flexibility are
more important decision criteria than ever before. E
learning will become widely accepted because
exposure to the Internet and e-learning often begins
in the primary grades, thus making more students
familiar and comfortable with online learning. In fact,
for many countries, distance education has been the
most viable solution for providing education to
hundreds of thousands of students.
Farooq Ahmed (2001) reported that the enormous
flexibility of the internet has made possible what is
popularly called e-commerce which has made
inroads in the traditional methods of business
management. All the facets the business tradition
with which we are accustomed in physical
environment can be now executed over the internet
including online advertising, online ordering,
publishing, banking, investment, auction and
professional services. E commerce involves
conducting business using modern communication
instruments: telephone, fax, e-payment, money
transfer systems, e-data interchange and the
internet. The WTO has recognized that commercial
transactions can be broken into 3 stages such as
advertising and searching stage, the ordering and
payment stage, and the delivery stage.
Claudiu, Ovidiu and Mariela (2013) conducted a
study on the Impact of E-Commerce on Tax and
Accounting Activities. This investigation aims to
study the impact of tax and e-commerce accounting
operations in the context of faster development of
Internet transactions. The need for this study is
determined by the current context, where social
networks are used increasingly successful as
platforms for electronic business promotion. The
paper also aims to highlight the need for establishing
an international taxation system of income / profits
since currently it does not exist. To support this
approach we presented two scenarios of trade in
electronic and traditional conditions where
opportunities of e-commerce are highlighted and it is
shown the great problem of determining the source
of income.
Raghunath & Panga (2013) conducted a study,
“Problem and Prospects of Ecommerce. They pointed
out that E-commerce as anything that involves an
online transaction. E-commerce provides multiple
benefits to the consumers in form of availability of
goods at lower cost, wider choice and saves time.
The general category of e-commerce can be broken
down into two parts: E-merchandise &E-finance.
Ecommerce involves conducting business using
modern communication instruments: telephone, fax,
e-payment, money transfer systems, e-data
interchange and the Internet. Online businesses like
financial
services, travel, entertainment, and groceries are all
likely to grow. Forces influencing the distribution of
global e-commerce and its forms include economic
factors, political factors, cultural factors and
supranational institutions. This study is outcome of a
review of various research studies carried out on E-
commerce. This study examines different
opportunities of e-commerce viz., E-business, E-
learning, E-commerce education integration, E-
insurance, E-commerce for the WTO and developing
countries and future media of e-commerce. It raises
key challenges that are being faced by consumers
relating to e-commerce viz., Ethical issues,
Perceptions of risk in e-service encounters,
challenges for e-commerce education, It act 2000
and legal system. Finally many companies,
organizations, and communities in India are
beginning to take advantage of the potential of e-
commerce; critical challenges remain to be
overcome before e-commerce would become an
asset for common people.

COMPANY PROFILE
Flipkart Private Limited is an Indian e-commerce
company, headquartered in Bangalore, and
incorporated in Singapore as a private limited
company. The company initially focused on online
book sales before expanding into other product
categories such as consumer electronics, fashion,
home essentials, groceries, and lifestyle products.

Company Type Subsidiary

Industry E-Commerce
Founded 2007,17 years ago
Founder Sachin Bansal, Binny
Bansal
Headquarters Bangalore, Karnataka
India ( Operational HQ)
Singapore (Legal
domicile)
Area Served India
Kalyan Krishnamurthi
Key People (CEO)
Services- Online Shopping
Increase ₹56,013 crore
(US$6.7billion) (FY2022–
Revenue 23)
Negative increase ₹
−4,834 crore (US$−580
Net Income million) (FY2022–23)
22,000 (excluding
Myntra)[3] (January
Number of Employees 2024)
Parent Walmart (~85%)
Cleartrip Ekart ,Flipkart
Health ,Flipkart
Wholesale ,Myntra ,
Shopsy
Subsidiaries Website-flipkart.com

The service competes primarily with Amazon India

and domestic rival Snap deal. As of FY23, Flipkart
held a 48% market share in the Indian e-commerce
industry. Flipkart has a dominant position in the
apparel segment, bolstered by its acquisition of
Myntra, and was described as being “neck and neck”
with Amazon in the sale of electronics and mobile
phones.

Samarth
Flipkart Samarth integrates India’s artisans, weavers,
and producers of handicrafts into the digital
marketplace. It was launched by Minister of State for
Finance & Corporate Affairs, Anurag Singh Thakur.
Samarth provides support for specialized assistance
for registration, product listing, account
administration, market analysis, dedicated seller
assistance, discounted commission rates for eligible
participants, and logistical support such as
warehousing facilities. This included Flipkart Samarth
Krishi program that focused on farming communities.
The Samarth program reportedly Imp”cted’1.5
million artisans, weavers and Indian handicrafts. By
March 2023, Flipkart India had onboarded numerous
Farmer Producer Organizations (FPOs) such as ABY
Farmers, Sri Sathya Sai MAC Fed, Jana Jeevana,
Nirala Herbal, Sahyadri Farms Supply Chain –
providing training on product quality and food safety
to over 10,000 farmers.
By March 2023, Flipkart India had onboarded
numerous Farmer Producer Organizations (FPOs)
such as ABY Farmers, Sri Sathya Sai MAC Fed, Jana
Jeevana, Nirala Herbal, Sahyadri Farms Supply Chain
– providing training on product quality and food
safety to over 10,000 farmers. The Samarth program
reportedly impacted 1.5 million artisans, weavers
and Indian handicrafts.

History
2007-2010 Startup Phase :-
Flipkart was founded in October 2007 in Bangalore
by Sachin Bansal and Binny Bansal, alumni of the IIT,
Delhi and former Amazon employees .The company
was started from a two-bedroom apartment in
Kormangala Bengaluru. The initial investment was
provided by their families, which was INR 2 Lakh
from each family. The website was kicked off in
October 2007 and the company was only limited to
selling books at that time country-wide
shipping .Flipkart slowly grew in prominence and was
receiving 100 orders per day by 2008 .Flipkart
acquired We Read in 2010 from Lulu.com that helped
it build its foundational strength which was the
digital retail of books . Flipkart used aggressive
discounts and focused on customer service to move
towards a leadership position in the market. We Read
consisted of a large network of readers (~3 million)
with around 60 million books. The platform also
noted information that was user generated – such as
people marking a book as favorite or leaving a
review or rating.

2011–2014: Growth, Mergers and

Acquisitions :-
In 2011, Flipkart acquired the digital distribution
business Mime360.com and the digital content
library of the Bollywood portal Chakpak .Following
the acquisition, Flipkart launched its DRM-free Digital
music store Flyte in 2012.Due to competition from
free streaming sites, Flyte was unsuccessful and shut
down in June 2013.
With its eyes on India’s retail market, Flipkart
acquired Letsbuy, an online electronics retailer, in
2012, and Myntra, an online fashion retailer, for
US$280 million in May 2014.
In October 2014, Flipkart reprised the Big Billion
Days event as a multi-day event exclusive to the
Flipkart app. Flipkart bolstered its supply chain and
introduced more fulfillment centers to meet
customer demand .Flipkart invested in Ngpay to
strengthen the mobile payment services since there
was an increased focus on mobile ecommerce;
Flipkart reported that mobile ecommerce was
contributing 50% of its sales. Investment in Ngpay
was followed by Flipkart shutting Payzippy – the in-
house payment gateway and merged it with Ngpay.
2015–2018 :-
Flipkart acquired Appiterate, a Delhi-based mobile
marketing automation firm. Flipkart stated that it
would use Appiterate’s technology to enhance its
mobile services. In December 2015, Flipkart
purchased a stake of around 34% (at a deal of
around $260 million) in the digital mapping provider
MapmyIndia.The company also invested in the UPI
mobile payments startup PhonePe same year. The
two entities, PhonePe and Flipkart.
In 2017, Flipkart sold 1.3 million phones in 20 hours
on 21 September during its Big Billion Days
promotion, doubling the number sold on the first day
of the same event in 2016.Flipkart held a 51% share
of all Indian smartphone shipments in 2017,
overtaking Amazon India (33%).
In August 2018, American retail chain Walmart
acquired a 77% controlling stake in Flipkart for
US$16 billion, valuing Flipkart at around US$20
billion.
In November 2018, Walmart increased the equity of
Flipkart to 81.3%.
On 13 November 2018, Flipkart CEO Binny Bansal
resigned after facing an allegation of “serious
personal misconduct”. Walmart stated that “while
the investigation did not find evidence to corroborate
the complainant’s assertions against Binny, it did
reveal other lapses in judgment, particularly a lack of
transparency, related to how Binny responded to the
situation.
2019–2022 :-
In July 2019, Flipkart launched Samarth program that
supported local artisans, weavers, and craftsperson
that traditionally are only able to sell locally. The
Samarth program supports with onboarding and
helping them sell their products online beyond their
local markets, and across the country. Apart from the
onboarding, the program also helps with other
processes of selling online such as cataloging,
warehousing support etc.
In 2020, Flipkart launched Flipkart Wholesale, a
novel online marketplace that provided a digital
platform for kiranas and MSMEs. As a part of the
same initiative around Flipkart Wholesale, Flipkart
also acquired 100% stake in Walmart India Private
Limited operating Best Price cash-and-carry business
to further strengthen the wholesale capabilities.
In July 2020, Flipkart acquired a 27% stake in Arvind
Fashions Limited’s newly formed subsidiary Arvind
Youth Brands for US$35 million. Arvind Youth Brands
owns the Flying Machine brand. Flipkart also rolled
out Flipkart Quick, a hyperlocal 90 minutes delivery
service for product categories such as groceries,
home accessories, mobile phones, stationery, and
more.
In October 2020, Flipkart acquired a 7.8% stake in
Aditya Birla Fashion and Retail for US$204 million.
The following month, Flipkart acquired the
intellectual property of gaming startup Mech Mocha
for an undisclosed amount.
Flipkart acquired augmented reality company Scapic,
which provides a suite of tools to create and publish
augmented reality, virtual reality, and 3D content
quickly and without coding.
As of 2021, the Flipkart app was available in 8 local
Indian languages, Gujarati, Bengali, Odia, Hindi,
Telugu, Kannada, Marathi and Tamil.
Flipkart announced the acquisition of the travel
booking portal Cleartrip. Flipkart also entered the
hotel industry for the Indian and global markets.
Flipkart acquired Cleartrip’s business in Middle East
by signing a definitive agreement with Wego – an
online market place for travel that operates in middle
east and North Africa. This included the sale of the
website Flyin.com.
In July 2021, Flipkart launched its social commerce
marketplace called Shopsy, which allowed individuals
and small businesses to direct sell and resell
products to customers via social media channels. In
December 2021, Shopsy entered the grocery
delivery segment in 700 cities across India.Shopsy
surpasses 200 million app downloads on its 2 nd
anniversary in the month of July in 2023 with more
than 60% of users hailing from tier-3 markets and
other cities.
In April 2022, Flipkart launched its first grocery
fulfilment center in Northeast India, based in
Guwahati. The center was reportedly women-run to
promote inclusion of women in the Flipkart’s supply
chain and to support the career progression of
Flipkart’s female employees.
The Walmart Foundation and Flipkart Foundation
donated INR 2 crore for the floor relief work in Assam
in 2002.
2023—Present :-
The e-commerce also started a virtual storefront that
is dedicated to the academic needs of students
named ‘Flipkart Student’s Club’. The ‘Flipkart Green’
venture was created in 2023 for customers who want
to have a sustainable lifestyle by providing certified
sustainable products.
Binny Bansal resigned from the executive team on
28 January 2024, and over the past few months, he
has completely divested his stake. In the last year,
Binny, along with Excel and Tiger Global
Management, sold their entire stake to Walmart,
resulting in Binny earning around 1.5 billion dollars.
Walmart had acquired a 77% stake in Flipkart for 16
billion dollars in May 2018.
In March 2024, Flipkart launched its UPI services,
Flipkart UPI, in partnership with Axis Bank. In May
2024, it was reported that Google would invest
US$350 million in the company.
In the space of Generative AI, Flipkart launched Flippi
– an AI powered shopping assistant available in
English that helps buyers make a shopping decision.
Flipkart also launched Vibes – which integrates video
content and online shopping – bringing a ‘window-
shopping’ experience for the users. Both Flippi and
Vibes are part of the enhanced ‘Swipe Screen’
experience initiative.
Gen Z accounts for more than 25 percent of Flipkart
Fashion’s customer base. Hence, in August 2023,
Flipkart introduced an in-app fashion platform named
Spoyl, targeted at Gen Z individuals .Spoyl features a

Flipkart Sustainability
As a part of Flipkart’s sustainability efforts, the four
facilities in Rewari and Sanpka (Haryana), Ludhiana
(Punjab) and Malur (Karnataka) recycled 67 million
litres of water. Consolidated conversation efforts
have resulted in reduction of over 14 million litres of
freshwater consumption.Flipkart and Myntra also
uses sustainable packing in partnership with Canopy,
moving towards sustainable packaging and material
sourcing .Flipkart and Bajaj Auto signed a
Memorandum of Understanding (MoU) to add 1000
(EVs) in Flipkart’s supply chain to further promote
use of electric vehicles in the company.

Walmart Investment
On 4 May 2018, it was reported that Walmart had
won a bidding war with Amazon to acquire a majority
stake in Flipkart for US$15 billion. On 9 May 2018,
Walmart officially announced its intent to acquire a
77% controlling stake in Flipkart for US$16 billion.
Following the purchase, Flipkart co-founder Sachin
Bansal left the company. The remaining
management team reported to Marc Lore, CEO of
Walmart E-Commerce US. Walmart president Doug
McMillon cited plans to help Flipkart with its sourcing
and supply chain while tapping on its expertise to
expand Walmart globally. Indian traders protested
against the deal, considering it a threat to domestic
business.
In a filing with the U.S. Securities and Exchange
Commission on 11 May 2018, Walmart stated that a
condition of the deal prescribed the possibility that
Flipkart’s current minority shareholders “may require
Flipkart to effect an initial public offering following
the fourth anniversary of the closing of the
transactions at a valuation no less than that paid by
Walmart”.
Following the announcement of Walmart’s deal, eBay
announced that it would sell its stake in Flipkart back
to the company for approximately US$1.1 billion and
relaunch its Indian operations. The company stated
that “there is a huge growth potential for e-
commerce in India and significant opportunity for
multiple players to succeed in India’s diverse,
domestic market. Softbank Group also sold its entire
20% stake to Walmart without disclosing the terms of
the sale. Walmart’s acquisition of a 77% stake in
Flipkart was completed on 18 August 2018. Walmart
also provided US$2 billion in equity funding to the
company.
On 22 December 2023, Flipkart confirmed that
US$600 million will be raised from Walmart out of its
total fundraising plan of US$1 billion.

Business Structure
According to a report in November 2014, Flipkart
operated with a complex business structure that
included nine firms, some registered in Singapore
and some in India. In 2022, Flipkart co-founders sold
WS Retail to a consortium of investors led by Rajeev
Kuchhal. Flipkart’s Indian entities are owned by
Flipkart Pvt. Ltd., which is registered in Singapore.
The Singapore-registered entity owns eight Indian
companies, including Flipkart Internet Pvt. Ltd, the
company that runs the e-commerce marketplace
Flipkart.com, Flipkart India Pvt. Ltd, the wholesale
business, and Flipkart Logistics Pvt. Ltd, which runs
Ekart (the internal logistics arm that can be used by
other e-commerce players). Flipkart also started
Flipkart Health+ (through an app) in 2021 which
deals with providing medicines and health services
through technology.

Funding and Revenue

The initial development budget of Flipkart was
₹400,000 (US$4,800). It later raised funding from
venture capital firms Accel India (receiving US$1
million in funding in 2009) and Tiger Global (US$10
million in 2010 and US$20 million in June 2011). On
24 August 2012, Flipkart announced the completion
of its 4th round of funding, netting a total of US$150
million from MIH (part of the Naspers Group) and
ICONIQ Capital. The company announced on 10 July
2013 that it had raised an additional US$200 million
from existing investors, including Tiger Global,
Naspers, Accel Partners and Iconiq Capital .Flipkart’s
reported sales were ₹40 million (US$480,000) in the
FY2008–09,₹200 million (US$2.4 million) in the
FY2009–10 and ₹750 million (US$9.0 million) in the
FY2010–11.
Flipkart reported a loss of ₹2.81 billion (US$34
million) for the FY2012–13. In July 2013, Flipkart
raised US.
In October 2013, it was reported that Flipkart had
raised an additional US$160 million from new
investors Dragoneer Investment Group, Morgan
Stanley Wealth Management, Sofina SA, and Vulcan
Inc.
On 26 May 2014, Flipkart announced that it had
raised US$210 million from Yuri Milner’s DST Global
and its existing investors Tiger Global, Naspers, and
Iconiq Capital.[138]
On 29 July 2014, Flipkart announced that it raised
US$1 billion from Tiger Global, Accel Partners,
Morgan Stanley Investment Management, and a new
investor, Singaporean sovereign wealth fund
GIC.2022.
In December 2014, after it received US$700 million
from another round of funding, Flipkart had a market
cap of US$11 billion.
On 20 December 2014, Flipkart announced its filing
application with Singapore-based company regulator
ACRA to become a public company. This
announcement came after the company received
US$700 million in long-term strategic investments
from more than 50 Indian investors. The US$700
million in funding raised by Flipkart added new
investors to the company’s board, including Baillie
Gifford, Greenoaks Capital, Steadview Capital, T.
Rowe Price Associates, and Qatar Investment
Authority. Its existing investors DST Global, GIC,
ICONIQ Capital and Tiger Global also participated in
this financing round. As of May 2015, Flipkart had
raised US$550 million in additional funding from its
existing investors in a deal that raised its total
valuation to US$15 billion.
By August 2015, after raising another US$700
million, Flipkart had raised a total of US$3 billion
over 12 rounds of funding from 16 major investors. In
April 2017, Flipkart underwent another round of
funding, receiving US$1.4 billion in funding from
investors including eBay, Microsoft, and Tencent. On
10 August 2017, SoftBank Vision Fund invested
another US$2.5 billion in Flipkart.
On 19 September 2018, Flipkart Marketplace
Singapore injected ₹3,463 crore into Flipkart
Internet. The transaction was done in two tranches,
according to regulatory filings.
In March 2021, it was reported that Flipkart was
considering the possibility of going public through a
merger with a special-purpose acquisition company
(SPAC) to speed up its listing process in the United
States.
The total revenue in 2022 was that of ₹43,357 crore
was reported for the past fiscal year of 2020–2021.
This was 25% more than its revenue in the fiscal
year of 2020. The losses were reported to have
reduced by 23% to ₹2,445 crore with total expenses
of ₹45,801.
In May 2024, Google invested almost $350 million
into Flipkart.
Regulatory action and
lawsuits
In November 2012, the Indian Enforcement
Directorate began investigating Flipkart for alleged
violations of the foreign direct investment
regulations of the Foreign Exchange Management
Act of 1999.On 30 November 2012, Flipkart’s offices
were raided by the Enforcement Directorate.
Documents and computer hard drives were seized by
the agency. In August 2014, the Enforcement
Directorate claimed that it had found Flipkart to be in
violation of the Foreign Exchange Management
Act.The Delhi High Court declared that several e-
commerce firms, including Flipkart, had violated
foreign investment regulations.
In January 2016, a public interest litigation hearing
took place over Flipkart’s alleged contravention of
foreign investment norms. The court asked the
Reserve Bank of India to provide the latest circular
on foreign investment policy. The same month, the
Department of Industrial Policy and Promotion (DIPP)
clarified that it did not recognize the marketplace
model of online retail. In February 2016, Health
Minister J. P. Nadda announced that the Maharashtra
FDA had taken action against Flipkart, among others,
for selling drugs without a valid license.

Consumer affairs
In 2022, a group of scammers was arrested by the
police in Lucknow who used the platform to scam the
customers. The scam included replacing the online
ordered Apple products with bricks to cheat
customers and company. Such scams have also been
reported in the past where soaps were delivered
instead of IPhone on Flipkart and also on Amazon.

Flipkart Video
Flipkart launched an in-app streaming service called
Flipkart Video in August 2019, so as to compete with
industry rivals like Amazon who were also offering
premium video options. The initial line up of content
was curated from the service providers like Viu , Voot
and TVF.

Flipkart Video Originals

To strengthen its content offering on Flipkart Video,
Flipkart forayed into original content production,
known as Flipkart Video Originals. The first show was
launched on 19 October 2019. Named Back
Benchers, it was a Bollywood celebrity quiz show
hosted by Farah Khan.
Criticism
On 13 September 2014, a Flipkart deliveryman
allegedly molested a housemaid in Hyderabad. The
housemaid’s employer sued Flipkart for this incident,
citing the need for regulations to make offline
delivery services safer.
In 2014, competitors such as Future Group (owner of
retail chain Big Bazaar at that time) filed complaints
with India’s Ministry of Commerce and Industry,
alleging that Flipkart’s Big Billion Days discounts
undercut prices in a manner predatory to other
retailers. The ministry stated that it would look into
the complaints.
In April 2015, Flipkart faced criticism for being a
launch partner in the Airtel Zero program. Critics
alleged that the zero-rating scheme violated the
principles of net neutrality. Flipkart later pulled out of
the project.
In 2015, around 400 delivery executives working
with eKart, the logistics arm of Flipkart, went on
strike to protest poor working conditions. Complaints
included seven-day workweeks, extended hours, and
a lack of clean toilets and medical assistance for bike
riders involved in accidents. In 2016, delivery
executive Nanjunda Swamy was allegedly murdered
by a customer who did not have enough money to
pay for a product In response, Flipkart launched a
safety initiative –‘Project Nanjunda’, named after the
deceased executive. This included an SOS button in
the mobile app (called the Nanjunda button) that
could be used by field executives in case of
emergencies.
Vendors on Flipkart have faced several challenges
while doing business on the company’s marketplace,
to the extent that some of them have quit the portal.
Some of these challenges include Flipkart’s alleged
unfair policies towards sellers, the lack of a
competent logistics service, and customer returns
that are a result of consumer fraud.

Awards and recognition

Sachin Bansal was awarded Entrepreneur of the Year,
2012–13 from The Economic Times, a leading Indian
economic daily newspaper.
In September 2015, the two founders entered Forbes
India’s richest Indian by year, debuting in the 86 th
position with a net worth of US$1.3 billion each.
In April 2016, Sachin and Binny Bansal were named
to Time magazine’s annual list of the 100 Most
Influential People in the World.
Flipkart was reported to be at the top in the annual
Fair work India Ratings 2021 – which is a 10-point
system that creates a score based on fair pay,
conditions, contracts, management, and
representation. A total of 11 platforms were
evaluated by a consortium of the Centre for IT and
Public Policy (CITAPP), International IIIT Bangalore
and the global Fair work network. The methodology
included qualitative interviews with 19-20 workers in
Delhi and Bangalore.

DATA ANALYSIS &

INTERPRETATION
In this chapter describe the results of the study, in
order to discuss and analyze data’s of E-Commerce
of the information collected from the sample through
questionnaire, from personal data like: (Age, Gender,
Qualification, and Experience) and test the
hypothesis which consist five hypothesis in this
research, are being examined on this chapter as
follows:
Age:
Table 5.1
Age-wise distribution of the respondents

Sr No. of Percenta
No Areas Respondents ge
1. 15 to 25 33 44.00
2. 26 to 40 26 34.67
More than
3. 40 16 2133

Table shows that out of 75 respondents, 44 per cent

respondents were between age range of 15 to 25
years, while 34.67 per cent respondents’ age ranged
between 26 to 40 years and 21.33 per cent
respondents were more than 40 years of age

Gender:
 Table 5.2
Gender-wise distribution of the respondents

Sr Gend No. of Percenta

No er Respondents ge

1. Male 50 66.67
Femal
2. e 25 33.33

Table shows that out of 75 respondents, 66.67 per

cent from the sample are “Male”, and 33.33 per cent
from the sample are “Female”.
Educational Qualifications:
Table 5.3
Educational-wise distribution of the
respondents

Sr. No Qualificatio No. of Percentage

n Respondent
s
1. Degree 26 34.67
Holder
2 Higher 49 65.33
Education
Table shows that out of 75 respondents, 65.33 per
cent from the sample are degree holder and 34.67
per cent were having higher education.

Major Area:
Table 5.4

Major work area-wise distribution of the

respondents

Sr No. of Percenta
No Areas Respondents ge
1. Accounting Students 31 41.33
Finance and CA
Pursuing Students

2. 24 32.00
3. Other 20 26.67

Table shows that out of 75 respondents, 41.33 per

cent respondents’ major area is Accounting Students
while 32 per cent respondents were involved in
Finance and CA Students and remaining 26.67
percent respondents were involved in other
accounting works.
 Experience:

Table 5.5

Experience-wise distribution of the

respondents

Sr No. of Percenta
No Areas Respondents ge
Less than 2
1. Years 32 42.67
2. 2 to 5 Years 21 28.00
More than 5
3. Years 22 29.33
Table shows that out of 75 respondents, 42.67 per
cent respondents were having less than two years,
while 28 per cent respondents were having
experience between 2 to 5 years and 29.33 per cent
respondents were having experience more than 5
years.

SECTION –B
General opinion towards E-commerce
In the present part, the analysis of general opinion of
male and female respondents towards e-commerce
as explained earlier, a set of 12 statements were
selected and included in the questionnaire
(appendix). Respondents were asked to give their
opinion. Responses so obtained have been analyzed
gender-wise status. Detailed Analysis of these 12
statements is as under:
Hypothesis 1
There exist no significant differences in male and
female account professionals regarding extent of use
of e-commerce applications
Table 5.6
Mean, Standard Deviation and ‘t’ value between
male and female account professionals regarding
extent of use of company e-commerce applications.

Gender N Mean Standard C.R. Test

Deviation Calculate
d ‘t’
value

Male 50 42.74 5.11 3.198**

Female 25 46.28 2.95

**Significant at 0.01 level of significance

Table Value at 0.01 level 2.58
0.05 level 1.96
From Table shows the significant difference in male
and female account professionals regarding their
attitude towards extent of use of e-commerce
applications. It is evident that the‘t’-value of attitude
towards extent of use of e-commerce applications of
male and female account professional is 3.198 which
is significant at 0.01 level. It indicates that male
and female account professionals differ significantly
regarding their attitude.
Further the mean scores reveal that the female
account professionals (46.28) is found to have
favorable attitude as compared to male account
professionals (42.74).

Hypothesis 2
There exist no significant differences in male and
female account professionals regarding their attitude
towards impact of electronic commerce on the
development of AISs within the client company.
Table 5.7
Mean, Standard Deviation and ‘t’ value between
male and female account professionals regarding
their attitude towards impact of electronic commerce
on the development of AISs within the client
company.

Gender N Mean Standard CR Test

Deviatio Calculate
n d ‘t’
value
Male 50 53.06 4.99 2.427**
Female 25 55.64 2.51

**Significant at 0.01 level of significance

Table Value at 0.01 level 2.58
 0.05 level 1.96
From Table shows the significant difference in male
and female account professionals regarding their
attitude towards impact of electronic commerce on
the development of AISs . It is evident that the ‘t’-
value of attitude towards impact of electronic
commerce on the development of AISs of male and
female account professional is 2.427 which is
significant at 0.05 level of significance. It indicates
that male and female account professionals differ
significantly regarding their attitude. Further the
mean scores reveal that the female account
professionals (55.64) is found to have favorable
attitude towards impact of electronic commerce on
the development of AISs as compared to male
account professionals (53.06).

Hypothesis 3
There exists no significant difference in male and
female account professionals regarding their attitude
towards the legal issues about e-commerce.
Table 5.9
Mean, Standard Deviation and ‘t’ value between
male and female account professionals regarding
their attitude towards the legal issues about e-
commerce.

Gend N Mea Standar CR Test

er n d Calculat
 Deviatio ed ‘t’
n value
Male 50 34.1 2.88 3.102**
2
Femal 25 36.0 1.56
e 4

**Significant at 0.01 level of significance

Table Value at 0.01 level 2.58
0.05 level 1.96
From Table shows the significant difference in male
and female account professionals regarding their
attitude towards the legal issues about e-commerce.
It is evident that the ‘t’-value of attitude towards
legal issues about e-commerce of male and female
account professional is 3.102 which is significant at
0.01 level of significance. It indicates that male and
female account professionals differ significantly
regarding their attitude. Further the mean scores
reveal that the female account professionals (36.04)
is found to have favorable attitude towards the legal
issues about e-commerce as compared to male
account professionals (34.12). Thus the null
hypothesis i.e. “There exist no significant difference
in male and female account professionals regarding
their attitude towards the legal issues about e-
commerce” is rejected. It means that the male and
female account professionals have different
approach regarding the legal issues about e-
commerce. It shows that the female account
professionals have more favorable attitude than their
counterpart male account professionals.

Hypothesis 4
There exist no significant difference in highly and
lowly educated account professionals regarding their
attitude towards extent of use of company
ecommerce applications
Table 5.10
Mean, Standard Deviation and ‘t’ value between
highly and lowly educated account professionals
regarding their attitude towards extent of use of
company e-commerce applications.

Areas N Mean Standard CR Test

Deviatio Calculate
n d ‘t’
value
Highly 26 45.11 3.70 1.980**
Educate
d
Lowly 49 43.00 4.98
Educate
d
*Significant at 0.05 level of significance
Table Value at 0.01 level 2.58
0.05 level 1.96
From Table shows the significant difference in highly
and lowly educated account professionals regarding
their attitude towards extent of use of e-commerce
applications. It is evident that the ‘t’-value of
attitude of highly and lowly educated account
professional is 1.980 which is significant at 0.05
level. It indicates that highly and lowly educated
account professionals differ significantly regarding
their attitude .Further the mean scores reveal that
the highly educated account professionals (45.11) is
found to have favorable attitude as compared to
lowly educated account professionals (43.00). Thus
the null hypothesis i.e. “There exist no significant
difference in highly and lowly educated account
professionals regarding their attitude towards extent
of use of e-commerce applications” is rejected. It
means that the highly and lowly educated account
professionals have different approach regarding their
attitude towards extent of use of company e-
commerce applications.

Hypothesis 5
There exists no significant difference in highly and
lowly educated account professionals regarding their
attitude towards the impact of electronic commerce
on the development of AISs within the client
company
Table 5.11
Mean, Standard Deviation and ‘t’ value between
highly and lowly educated account professionals
regarding their attitude towards the impact of
electronic commerce on the development of AISs
within the client company

Areas N Mean Standard CR Test

Deviatio Calculate
n d ‘t”
value
Highly 26 55.23 2.65 2.069
Educate
d
Lowly 49 52.97 5.18
Educate
d

*Significant at 0.05 level of significance

Table Value at 0.01 level 2.58
0.05 level 1.96
From Table shows the significant difference in highly
and lowly educated account professionals regarding
their attitude towards the impact of electronic
commerce on the development of AISs . It is evident
that the ‘t’-value of attitude of highly and lowly
educated account professional is 2.069 which is
significant at 0.05 level. It indicates that highly and
lowly educated account professionals differ
significantly regarding their attitude. Further the
mean scores reveal that the highly educated account
professionals (55.23) is found to have favorable
attitude towards impact of electronic commerce on
the development of AISs as compared to lowly
educated account professionals (52.97). Thus the
null hypothesis i.e. “There exist no significant
difference in highly and lowly educated account
professionals regarding their attitude towards the
impact of electronic commerce on the development
of AISs” is rejected.

Hypothesis 6
There exists no significant difference in highly and
lowly educated account professionals regarding their
attitude towards the legal issues about e-commerce
Table 5.12
Mean, Standard Deviation and ‘t’ value between
highly and lowly educated account professionals
regarding the legal issues about e-commerce.
 CR Test
Standard
Calculate
Areas N Mean Deviatio
d ‘t’
n
value
Highly 26 35.07 1.93 1.078
Educate
d
Lowly 49 34.32 3.24
Educate
d

NS= Not Significant

Table Value at 0.01 level 2.58
0.05 level 1.96
From Table shows the difference in highly and lowly
educated account professionals regarding their
attitude towards the legal issues about e-commerce.
It is evident that the‘t’-value of the attitude of highly
and low educated account professional is 1.078
which is not significant at any level of significance. It
indicates that highly and lowly educated account
professionals do not differ significantly regarding
their attitude towards the legal issues about e-
commerce. Further the mean scores reveal that the
highly educated account professionals (35.07) is
found to be slightly higher on their attitude towards
legal issues about e-commerce as compared to lowly
educated account professionals (34.32), but do not
differ significantly. Thus the null hypothesis i.e.
“There exist no significant difference in highly and
lowly educated account professionals regarding their
attitude towards the legal issues about e-Commerce”
is accepted.

Hypothesis 7
There exists no significant difference among
accounting professionals belonging to the age group
of 15-25 years, 26-40 years and 41 and above years
regarding the legal issues about e-commerce.
Table 5.13
Mean, Standard Deviation scores according to the
accounting professionals regarding their attitude
towards the legal issues about e-commerce
applications.

Dimensions of E- Mea Standard

Category N
commerce n Deviation
15-25 3 42.1
9.86
Years 3 5
The impact of 26-40 39.5
electronic Years 3
commerce on the
development of AIS 2
1.85
6
 More
1 36.1
than 40 2.97
6 8
Years

Table 5.13.1
ANOVA table of attitude towards the legal
issues about e-commerce.

Sum of D Means
Groups F Sig.
Squares F Square
Between .01
390.805 2 195.403 4.223
Groups 8
Within 7
3331.141 46.266
Groups 2
7
Total 3721.947
4

From table, it is evident that F value of 15.188 with

df (2,72) is significant at 0.01 level of significance for
the main effect of legal issues about e-commerce.
This means that the accounting professionals have a
significant independent effect upon their attitude
towards the legal issues about e-commerce.
Therefore, null hypothesis formulated earlier “There
exist no significant difference among accounting
professionals belonging to the age group of 15-25
years, 26-40 years and 41 and above years
regarding their attitude towards legal issues about e-
commerce” is rejected. It can therefore be said that
there is a significant difference among accounts
professionals belonging to the different age groups.
Table 5.13.2
Post-hoc table for attitude towards the legal
issues about e-commerce .

N Subset for alpha = .05

Age Groups
1 2

40 and
16 36.1875
above
26-40 Years 26 39.5385 39.5385

15-25 Years 33 42.1515

Sig. .226 .401

The post-hoc table shows the one group is

significantly differed with another two groups. It
shows that there is a significant difference among
the groups regarding their attitude towards the legal
issues about e-commerce. The account professionals
belonging to the age group i.e. 15-25 and 26-40
years have been found to have significantly better
attitude towards the legal issues about e-commerce
as compared to the account professionals belonging
to the higher age group of above 41 years. Further,
the account professionals belonging to the age group
of 15-25 and 26-40 years were not differed
significantly with each other. Hence, it was observed
that lower the age, better the attitude towards the
legal issues about e-commerce.

Hypothesis 8
There exist no significant difference among
accounting professionals belonging to the
accounting, finance & administration and other
professions regarding their attitude towards extent of
use of company e-commerce applications.
Table 5.14
Mean, Standard Deviation scores according to the
accounting professionals with their attitude towards
the extent use of company E-commerce
applications .

Dimensio
Standard
ns of E-
Category N Mean Deviatio
commerc
n
e
Extent 15-25 33 46.84 2.75
use of E- Years
commerc
26-40 26 43.84 3.57
e
Years
Applicati
on More 16 38.50 5.09
than 40
 Years

Table 5.14.1
ANOVA table of attitude towards extent use of
company E-commerce applications.

Means
Sum of D
Square F Sig.
Squares F
s
Betwe
376.16 28.46 .00
en 752.320 2
0 0 0
Groups

Within 7
951.627 13.217
Groups 2

1703.94 7
Total 7 4

From table, it is evident that F value of 0.450 df (2,

72) is not significant at any level of significance for
the main effect of accounting professionals regarding
their attitude towards extent use of E-commerce
applications. This means that the accounting
professionals have not a significant independent
effect upon their attitude towards extent use of E-
commerce applications. Therefore, null hypothesis
formulated earlier “There exist no significant
difference among accounting professionals belonging
to the accounting, finance & administration and
other professions regarding their attitude towards
extent of use of e-commerce applications” is
accepted. It can therefore be said that there is no
significant difference among accounts professionals
belonging to the different area of accountancy.

FINDINGS,CONCLUSION
AND RECOMMENDATIONS
After processing the data, obtaining and interpreting
the results in previous chapter, the findings have
been delimited and discussed in present chapter.
These findings can be generalized to the extent of
representativeness of the sample and methodology
employed in the study. Keeping the major findings in
view, the educational implications of the study have
been worked out. But these findings and implications
do not fit in all the concerns of study. As such some
recommendations have been given for the further
research. This chapter is, therefore, devoted to
focusing the findings, conclusion, of the study and
for indicating their implications and
recommendations for further studies or research.

FINDINGS OF THE STUDY

It was found that there exists a significant difference
in male and female account professionals regarding
their attitude towards extent of use of e-commerce
applications. It means that the male and female
account professionals have different approach
regarding their attitude towards extent of use of e-
commerce applications. Hence, it can be concluded
that the female account professionals have more
favorable attitude than their counterpart male
account professionals.
There exists a significant difference in male and
female account professionals regarding their attitude
towards impact of electronic commerce on the
development of AISs . It means that the male and
female account professionals have different
approach regarding impact of electronic commerce
on the development of AISs .The female account
professionals have more favorable attitude than their
counterpart male account professionals.
It was found that there exists no significant
difference in male and female account professionals
regarding their attitude towards the legal issues
about ecommerce. It means that the male and
female account professionals have different
approach regarding the legal issues about e-
commerce. The female account professionals have
more favorable attitude than their counterpart male
account professionals.
It was found that there exists a significant difference
in highly and lowly educated account professionals
regarding their attitude towards extent of use of e-
commerce applications. It means that the highly and
lowly educated account professionals have different
approach regarding their attitude towards extent of
use of e-commerce applications. The highly educated
account professionals have more favorable attitude
than their counterpart lowly educated account
professionals.
It was found that there exists a significant difference
in highly and lowly educated account professionals
regarding their attitude towards the impact of
electronic commerce on the development of AISs . It
means that the highly and lowly educated account
professionals have different approach regarding their
attitude. The highly educated account professionals
have more favorable attitude than their counterpart
lowly educated account professionals.
It was found that there exists no significant
difference in highly and lowly educated account
professionals regarding their attitude towards the
legal issues about e-commerce. It means that the
highly and lowly educated account professionals
almost have same approach regarding the legal
issues about ecommerce.
It was found that there exists a significant difference
in accounting professionals belonging to the age
group of 15-25 years, 26-40 years and 41 and above
years regarding their attitude towards extent of use
of ecommerce applications. The account
professionals belonging to the lower age group i.e.
15-25 years have been found to have significantly
better attitude towards extent of use of e-commerce
applications as compared to the account
professionals belonging to the age group of 26-40
and above 41 and above years. Further, the account
professionals belonging to the age group of 26-40
years were found to have better attitude towards
extent of use of e-commerce applications as
compared to the account professional belonging to
the higher age group 41 and above years.
It was found that there exists significant difference
among accounting professionals belonging to the
age group of 15-25 years, 26-40 years and 41 and
above years regarding their attitude towards the
impact of electronic commerce on the development
of AISs . The account professionals belonging to the
lower age group i.e. 15-25 years have been found to
have significantly better attitude towards impact of
electronic commerce on the development of AISs as
compared to the account professionals belonging to
the higher age group of above 41 years. Further, the
account professionals belonging to the age group of
26-40 years were not differed significantly with other
groups.
It was found that there exists a significant difference
among accounting professionals belonging to the
age group of 15-25 years, 26-40 years and 41 and
above years regarding their attitude towards legal
issues about ecommerce. The account professionals
belonging to the age group i.e.15-25 and 26-40 years
have been found to have significantly better attitude
towards the legal issues about e-commerce as
compared to the account professionals belonging to
the higher age group of above 41 years. Further, the
account professionals belonging to the age group of
15-25 and 26-40 years were not differed significantly
with each other.
It was found that there exists no significant
difference among Accounting Students belonging to
the accounting, Finance & CA pursuing Students and
other professions regarding their attitude towards
extent of use of ecommerce applications. They have
no different approach regarding their attitude
towards extent of use of e-commerce applications.
It was found that there exists no significant
difference among Accounting Students belonging to
the accounting, Finance & CA pursuing Students and
other professions regarding their attitude towards
impact of electronic commerce on the development
of AISs .
It was found that there exists no significant
difference among Accounting Students belonging to
the accounting, Finance & CA pursuing Students and
other professions regarding their attitude towards
legal issues about e-commerce. It can therefore be
said that there is no significant difference among
accounts professionals belonging to the different
area of accountancy regarding legal issues about e-
commerce.
It was found that there exists no significant
difference among accounting professionals having
less than 2 year, between 2-5 years, and more than
5 years of age regarding their attitude towards the
extent of use of ecommerce applications. The
account professionals having experience between 2-
5 years has been found to have significantly better
attitude towards the extent of use of e-commerce
applications as compared to the account
professionals having less than 6 years and more than
5 years of experience. Further, the account
professionals having less than 2 years and more than
5 years experience do not differ significantly their
attitude towards the extent of use of e-commerce
applications.
It was found, there exists no significant difference
among accounting professionals having less than 2
year, between 2-5 years, and more than 5 years of
age regarding their attitude towards impact of
electronic commerce on the development of AISs .
The account professionals having experience
between 2-5 years has been found to have
significantly better attitude towards impact of
electronic commerce on the development of AISs as
compared to the account professionals having more
than 5 years of experience. Further, the account
professionals having less than 2 years and more than
5 years experience do not differ significantly their
attitude towards the impact of electronic commerce
on the development of AISs .
The results from the statistical analysis are analyzed
based of the research model. All but one of the
hypotheses were confirmed; the result from the
research was not strong enough to confirm the
hypothesis on the impact of strong government
support on ecommerce..
Management Support: Management support
discriminates between of ecommerce. It seems that
adopters of ecommerce had greater support from
management. All the items within this variable were
significant discriminators. This is consistent with
Orlikowski, (1993) assertion that top management
support is crucial in the acquisition therefore; we
conclude that management support positively
impacts ecommerce adoption.
IT Capability the results of the Factor analysis
indicate that IT capability is a significant factor. This
somewhat supports Lacovou et al. (1995) findings
that low level of IT sophistication was one of the
factors that caused organizations to resist EDI
adoption. The result is expected if one considers that
ecommerce adoption involves the use of a set of IT-
related skills and knowledge (Turban et al., 2004)
such as telecommunication knowledge, IT security
knowledge, and Internet application environment.
Thus we conclude that a high level of It resources
and personnel IT knowledge will positively impact
ecommerce adoption.
Perceived Benefit ranked second on the structure
matrix and is a significant this supports Craig & King
(1993) claim that relative advantage is one of the
consistent critical innovation adoption factor. Thus
we conclude that a high level of perceived benefit
will positively impact ecommerce. Therefore
hypothesis number 4 is confirmed.
Perceived Compatibility of the organization with
ecommerce was a factor of ecommerce in the Indian
banking sector. This result is supported the findings
of earlier research (Betty, Shim & Jones, 2001).
Tornatzky and Klein (1982) also reported a significant
positive relationship between compatibility and
adoption of innovation. Ecommerce represents a
major change from previous ways of doing business.
Thus a bank adopting ecommerce may have to
reorganize and rethink how it conducts transactions
with customers. This need for change can explain the
impact of perceived compatibility on adoption of
ecommerce if high level of compatibility is seen as
meaning that less change is required within the
adopting organizations. Evidence from this research
suggest that banks whose existing infrastructure and
organizational climate are compatible with
ecommerce are more likely to adopt ecommerce.
It was found that there exists no significant
difference among accounting professionals having
less than 2 year, between 2-5 years, and more than
5 years of age regarding their attitude towards the
extent of use of ecommerce applications. The
account professionals having experience between 2-
5 years has been found to have significantly better
attitude towards the extent of use of e-commerce
applications as compared to the account
professionals having less than 6 years and more than
5 years of experience. Further, the account
professionals having less than 2 years and more than
5 years experience do not differ significantly their
attitude towards the extent of use of e-commerce
applications.
It was found, there exists no significant difference
among accounting professionals having less than 2
year, between 2-5 years, and more than 5 years of
age regarding their attitude towards impact of
electronic commerce on the development of AISs .
The account professionals having experience
between 2-5 years has been found to have
significantly better attitude towards impact of
electronic commerce on the development of AISs as
compared to the account professionals having more
than 5 years of experience. Further, the account
professionals having less than 2 years and more than
5 years experience do not differ significantly their
attitude towards the impact of electronic commerce
on the development of AISs .
The results from the statistical analysis are analyzed
based of the research model. All but one of the
hypotheses were confirmed; the result from the
research was not strong enough to confirm the
hypothesis on the impact of strong government
support on ecommerce..

Management Support: Management support

discriminates between of ecommerce. It seems that
adopters of ecommerce had greater support from
management. All the items within this variable were
significant discriminators. This is consistent with
Orlikowski, (1993) assertion that top management
support is crucial in the acquisition therefore; we
conclude that management support positively
impacts ecommerce adoption.

IT Capability the results of the Factor analysis

indicate that IT capability is a significant factor. This
somewhat supports Lacovou et al. (1995) findings
that low level of IT sophistication was one of the
factors that caused organizations to resist EDI
adoption. The result is expected if one considers that
ecommerce adoption involves the use of a set of IT-
related skills and knowledge (Turban et al., 2004)
such as telecommunication knowledge, IT security
knowledge, and Internet application environment.
Thus we conclude that a high level of It resources
and personnel IT knowledge will positively impact
ecommerce adoption.
Perceived Benefit ranked second on the structure
matrix and is a significant this supports Craig & King
(1993) claim that relative advantage is one of the
consistent critical innovation adoption factor. Thus
we conclude that a high level of perceived benefit
will positively impact ecommerce. Therefore
hypothesis number 4 is confirmed.
24. Perceived Compatibility of the organization with
ecommerce was a factor of ecommerce in the Indian
banking sector. This result is supported the findings
of earlier research (Betty, Shim & Jones, 2001).
Tornatzky and Klein (1982) also reported a significant
positive relationship between compatibility and
adoption of innovation. Ecommerce represents a
major change from previous ways of doing business.
Thus a bank adopting ecommerce may have to
reorganize and rethink how it conducts transactions
with customers. This need for change can explain the
impact of perceived compatibility on adoption of
ecommerce if high level of compatibility is seen as
meaning that less change is required within the
adopting organizations. Evidence from this research
suggest that banks whose existing infrastructure and
organizational climate are compatible with
ecommerce are more likely to adopt ecommerce.
Perceived Complexity emerged as the best factor of
ecommerce. The results suggest that adopters
possess the financial and technological resources to
implement ecommerce. This result supports the
assertion of Rogers (1995) that innovations that are
simpler to understand and use are adopted faster
than those requiring the adopter to develop new
skills and understanding.
Management support emerged as the fifth best
factor between of ecommerce. Thus the availability
of employees with adequate understanding of
ecommerce technologies will facilitate the adoption
of ecommerce. Lacovo et al. (1995) found out that
technical knowledge is a very important factor that
hinders IT growth. Chwelos et al (2001) supports this
finding, they stated that the level of management
understanding of using IT to achieve organizational
objectives may influence the adoption of IT
innovation.
Market e-readiness is a factor of ecommerce. On
further investigation we discovered that market e-
readiness is somewhat related to the level of
infrastructural development. Infrastructure in India
will need to improve further before ecommerce is
able to expand. According to most of the
respondents to the interview, computer penetration
is week; such low penetration is due to the low
annual income of most Indian workers. Access to
Internet is limited and in most cases people have
access to internet at their work places. The lack of
Internet in homes has an adverse impact on
ecommerce awareness amongst the citizen, which
further de-motivates banks willing to adopt
ecommerce.
CONCLUSION
Electronic commerce had a statistically significant
influence on the accounting information systems
development of Indian firms. The results also showed
statistically significant between electronic commerce
and reliability of the accounting information systems
in Indian firms, the Impact of electronic commerce
has enhanced the reliability which represents one of
the qualitative characteristics of accounting
information by improving the ability to deal with the
data for most companies, reduce errors, verification
of data, security and protection. Electronic
commerce had a statistically significant influence for
ability to reduce cost, improve operational
performance of Indian companies through
accounting information systems. The use of
Electronic commerce in the accounting information
systems for Indian companies contributed to the
improvement of services provided to the clients.
Electronic commerce had
contributed to increase efficiency and effectiveness
of accounting information systems in Indian
companies.
The inputs of the accounting information system are
so easy after using e-commerce, this leads to
restoring it easily and being described with the
feature of the appropriate timing, regarding the time
we need in installing and restoring it again.
Using e-commerce provided accurate, flawless and
fast financial data processing, which is the second
stage in any systems and it has decreased the
number of employees working on closing deals and
also decreased the cost of financial data and
information and increased the speed and accuracy in
restoring stored information.
E-commerce has a positive effect on the output of
the accounting systems in the Indian banks, because
the e-commerce provides accurate and
comprehensive accounting information on one hand
and authenticated accounting information on the
other hand. This accounting information is
measurable and it is instantly sent to the decision
makers in the right time.

RECOMMENDATIONS
Belief in the management of various sectors in the
State to Importance of electronic commerce, and to
engage in this area is no longer an option Only
economically but a necessity that should be met and
that the delay in the implementation of integrated
strategies of electronic commerce itself lead only to
economic marginalization in a global economy of
increasing the volume of electronic transactions, but
to a further deterioration Economic competitiveness
due to declining share of exports of Arab countries
export the world.
Indian banks must develop accounting information
systems continuously, in order to keep up with the
development, so it would adopt with the
technological and technical demands of our
generation
Work on new laws and amend the current trade
rules, which specialize in traditional trade
organization to fit with e-business processes so that
they control it.
The need to contain the subjects, in particular Article
accounting information systems on the vocabulary
for using methods of information and communication
technologies in general and e-commerce in
particular, to create the cadre of accounting that is
narrating the colleges and scientific institutes on how
to understand the nature of the work of these
methods and also how they are used in the work of
Accounting Information Systems.
Keep peace with developments in electronic
commerce and work on legislation and regulations
commensurate with any change or development in
the trade.
Must be developed financial services; enhance the
credit system and upholding standards of financial
transfers that Can facilitate the adjustments of
accounts and payments resulting from e-commerce.
The establishment of a unified network of computers
at the Department of income and sales tax and the
Customs Service and linked to the Internet and full
coordination between these interests to exchange
information among themselves for the transactions
through which electronic commerce.
The study further defines the scope and legal effects
of e-commerce laws and list features that every e-
commerce law should include, namely provisions on
e-transactions; on trusted third parties/certification
authorities and on service providers. To reduce
uncertainty in cases where a contract does not
specifically deal with certain issues, the reference
framework offers a list of presumptions of e-
commerce laws, e.g. that there is no difference
between electronic records or paper documents; that
electronic records are admissible as evidence in
court; or that if an electronic record is sent, the
recipient is entitled to act upon the record. Last but
not least, the reference framework spells out cross-
border issues that have to be addressed, namely
jurisdiction and taxation.
More researches must be conducted about the
development of accounting information system,
when using e-commerce and focus to develop it
continuously.
 QUESTIONNAIRE

This questionnaire contents questions related to E-

commerce. It consist of Online websites for shopping,
banking applications ,AIS and etc.
The questions were asked to Accounting students
and students pursuing Professional Degree and those
working students.
Questionnaire containing of 20 to 25 questions is
circulated to Students in Accounts, People working in
Accounting with an experience of more than 8 Years .
Questionnaire contains questions regarding
experience of people using E-commerce.
Question with multiple choice ,and opinions are to
people. We got 80 to 100 responses.
Questions to person working in banks with
experience of 2 to 5 years and more than 5 years.
Questions to Professional Degree holder like CA,CMA
etc.
Questions to Students pursuing degree, graduates
and post graduates.

General Questions :-
1.How long do you use E-commerce ?
a) a)5 years
b) 10 years
c) More than 10 years
2.For what purpose do you use E-commerce ?
a) Work
b) Education
c) Online shopping
d) Other
3.How did you got the information for online
shopping ?
a) Through Friends
b) Through Internet
c) Other
4.Why did you choose this brand(Flipkart) over
others ?
a) Quality of products
 b) Quality of services
c) Presentations
d) Other
5.Does the brand you choose Provides general
information of company on E-commerce ?
a) Yes
b) No

6.Provides immediate customer service ?

a) Agree
b) Somewhat Agree
c) Neutral
d) Somewhat Disagree
e) Disagree
7.Provides all information about the product
availability and stocks on website ?
a) Agree
b) Somewhat Agree
c) Neutral
d) Somewhat Disagree
e) Disagree
8.Are you satisfied with E-commerce application in
Banking Systems ?
a) Yes
b) Maybe
 c) No
9.Does E-Banking minimize cost of transactions ?
a) Yes
b) No
10.E-Banking saves time ?
a) Agree
b) Somewhat Agree
c) Neutral
d) Somewhat Disagree
e) Disagree
11.E-Banking provides Immediate responses ?
a) Agree
b) Somewhat Agree
c) Neutral
d) Somewhat Disagree
e) Disagree
12.What changes can Banks make in E-Banking
system ?
a) More quicker responses
b) Reduce Error or Network issues
c) Other
13.Impact of Presence of E-commerce on AIS ?
a) Very Positive
b) Positive
c) Neutral
d) Negative
14.What features attract you to E-commerce ?
a) Branding
b) Advertisement
c) Services
d) Other
15.What is your opinion about E-commerce ?
16.What do you think about the future of E-
commerce on India will be ?
a) Positive
b) Growing
c) Other

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