INSTITUTE OF COMMERCE, NIRMA UNIVERSITY

B.COM (HONOURS)

YEAR: 2017-20

INTERNSHIP REPORT

on Corporate Taxation, Auditing, Accounting for Insurance Companies, etc.

At

SHRIRAM GENERAL INSURANCE Co. Ltd.

(Registered Office/ Corporate Office)

4th May- 4th June, 2019

Prepared for:

Prof. CS Karishma Butani

Prepared By:

NAME ROLL NO.

Harsh Gupta IC171119

Submitted On:

18th July, 2019

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 ABSTRACT
This report details a summer internship at 'Shriram General Insurance Co. Ltd.' in Jaipur,

Rajasthan. I worked in the Accounts Department under the guidance ship of CFO Mrs. Mona

Mathur. The duration of the internship was of 30 days starting from 4th May, 2019- 4th June,

2019. Industrial training is an important phase of a student life. A well planned, properly

executed and evaluated industrial training helps a lot in developing a professional attitude. It

develops an awareness of industrial approach to problem solving, based on a broad

understanding of process and mode of operation of organization. The aim and motivation of this

industrial training is to receive discipline, skills, teamwork and technical knowledge through a

proper training environment, which will help me, as a student in the field of Accounting and

Finance, to develop a responsiveness of the self-disciplinary nature of problems in Accounting,

Auditing and Other related areas. During a period of one month internship at Shriram General

Insurance Co. Ltd., I was assigned everyday with day-to-day tasks to be accomplished in the area

of Accounting for General Insurance Companies. As a result, I was able to achieve the minimum

requirement of the company for an intern to learn, it helped me in gaining the cutting-edge

corporate knowledge which will help me to gain the practical knowledge of the theoretical

concepts studied, and also the company must have also benefitted from my efforts and hard

work. Throughout this internship, I have learned how these general insurance companies prepare

their financial statements, do their accounting part, and the basics of taxation and auditing.Now,

after the 1-month rigorous internship in a corporate, I can say that now I am equipped with the

knowledge of Advanced Accounting in General Insurance Companies, and a little but

satisfactory knowledge in the area of Taxation and Auditing.

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INTERNSHIP CERTIFICATE

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 ACKNOWLEDGEMENT
The internship opportunity I had with Mrs. Mona Mathur ma’am was a great chance for learning

and professional development. Therefore, I consider myself as a lucky individual as I was

provided with an opportunity to do internship under her,who in spite of being extraordinarily

busy with her work schedule, took time out to hear, guide and keep me on the correct path and

allowing me to carry out my internship at their esteemed organization and extending during the

training.

I am also grateful for having a chance to meet so many wonderful people and professionals who

led me though this internship period including Neeraj Sir in HR Department and others. I express

my deepest gratitude to Internship Committee, Institute of Commerce- Nirma University for their

involvement and contribution during the whole internship.

I perceive this opportunity as a big milestone in my career development. I will strive to use

gained skills and knowledge in the best possible way, and I will continue to work and improve

myself, in order to attain desired career objectives.

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Table of Contents
INTRODUCTION .......................................................................................................................... 6
Learning Objectives/ Internship Objectives ................................................................................ 6
Scope of the work ........................................................................................................................ 6
Background information to understand the completed work during internship.......................... 6
Company Profile ......................................................................................................................... 7
DESCRIPTION OF INTERNSHIP WORK ................................................................................... 9
Overview of the work completed during the internship .............................................................. 9
WEEK-1 (4-10th May, 2019)........................................................................................... 9
WEEK-2 (11-17th May, 2019)....................................................................................... 25
WEEK-3 (18-24th May, 2019)....................................................................................... 40
WEEK-4 (25-31st May, 2019) ....................................................................................... 59
WEEK-5 (1-4th June, 2019)........................................................................................... 67
Significance to the selected area ............................................................................................... 68
Achievement of the objectives .................................................................................................. 68
Relevance of the internship work with courses learned ............................................................ 69
Challenges and experience during internship............................................................................ 69
Contribution of internship towards academic and personal goal, etc ....................................... 70
Summary or Conclusion and Suggestions .................................................................................... 72
Industry Overview ..................................................................................................................... 72
Company Profile ....................................................................................................................... 73
Suggestion to the organisation .................................................................................................. 75
Findings and Solutions relevant to report ................................................................................. 75
Bibliography ................................................................................................................................. 77

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 INTRODUCTION

Learning Objectives/ Internship Objectives:-

To apply the theoretical knowledge of subjects like Accounts, Taxation, etc. learned in the

boundaries of classroom to the real life world in the corporates and industries.

To learn the whole procedure as to how these companies do their daily procedures in regard

to taxation and auditing (especially general insurance companies).

To learn the practicality and technicality of the financial mangement as done in the

corporates and insurance companies, and how is it different from the theoretical or bookish

approach.

Scope of the work:-

The internship would be limited to the area of Accounting in General Insurance Companies,

Corporate Tax Planning, Tax Audits, etc. Under the guidance ship of CFO Mrs. Mona

Mathur, my internship supervisor, my work will be dealing with all the major areas of

Accounting and Finance including Taxation and Auditing.

Background information to understand the completed work during internship:-

General Insurance-General Insurance or non-life insurance policies, including automobile

and homeowners policies, provide payments depending on the loss from a particular financial

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 event. General insurance is typically defined as any insurance that is not determined to be life

insurance.

Audit-An audit is a systematic and independent examination of books, accounts, statutory

records, documents and vouchers of an organization to ascertain how far the financial

statements as well as non-financial disclosures present a true and fair view of the concern.

Conglomerate- A conglomerate is a corporation made up of a number of different, seemingly

unrelated businesses. In a conglomerate, one company owns a controlling stake in a number

of smaller companies which conduct business separately.

The largest conglomerates diversify business risk by participating in a number of different

markets, although some conglomerates, such as those in mining, elect to participate in a

single industry.

Company Profile:

Shriram General Insurance Co. is a joint venture between Shriram Capital Ltd. and Sanlam

Limited (South Africa). We are licensed with IRDAI (Insurance Regulatory and Development

Authority of India) and preferred insurance partner of IRCTC. Shriram General Insurance offers

a wide range of general insurance solutions including Motor, Travel, Home and more that are

designed to fit every need, every minute and every situation. So, next time you are looking for an

affordable and inclusive risk cover, Insure with us and Rest Assured in life.

In today's age of consumerism, insurance requirements have expanded to keep pace with the

increasing risks. Today we have wide assortment of risk coverage commencing from ransom to

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wedding, shops to assets, travel to vehicles etc... General Insurance companies have willingly

catered to these increasing demands and have offered plethora of insurance covers that almost

cover anything and everything under the sun.

Hence foreseeing the General Insurance business as a Sunrise Industry, Shriram Group has

entered into this business and as a result Shriram General Insurance came into existence. Upto

Sept 2012 it was a 74:26 Joint Venture between Shriram Capital Ltd. and Sanlam Limited (South

Africa). SANLAM is a leading Financial Services Group of South Africa with a market

capitalization of more than $6 billion, established in 1918 and the Group demutualized in 1998.

SANTAM is a part of Sanlam Limited, which is engaged in short-term insurance cluster and is

the leading short-term insurance company in South Africa. Since September 2012, the stake of

Sanlam Limited (South Africa) has been transferred to Shriram Capital Ltd. The overall team of

SGI includes young and vibrant senior executives of insurance domain to handle Underwriting

and Claim matters.

The business philosophy of Shriram General Insurance is to serve the largest number of common

people ("AamAdmi"). The Group's continued focus on addressing customer needs, nurturing

talent and bringing a home grown technology platform while delivering to the underserved

segments of the economy, has ensured strong growth & sustainability for over 3 decades. The

Group's vision is serving to the underserved and creating value at the bottom of the Pyramid.

SGI is redefining the service parameters of General Insurance Industry by ensuring that each

employee understands the Slogan "BE INSURED... REST ASSURED" in its spirit and the

customer has an overall pleasant experience. The company is giving special attention to the

innovative products and application of latest IT developments in its operations.

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SGI has been awarded "Excellence In Growth Award" for 2 consecutive years (2011 & 2012)

Thus, SGI is all set to become the FIRST CHOICE General Insurance Company of India.

DESCRIPTION OF INTERNSHIP WORK

Overview of the work completed during the internship:-

 WEEK-1 (4-10th May, 2019):

The first day was really exciting and an ice-breaker kind of day. I reached the organization at

9:30 a.m. sharp. I had already cleared the Aptitude Test and Personal Interview rounds on 3rd

May, 2019. I was selected by the HR Team, and I was said that my profile was directly

recommended by the Managing Director (MD) of the company. I was really happy after knowing

this piece of information. On my first day, I was basically briefed about how the work is carried

on here. I first met the HR executives and was quite obliged by their gesture that how they

showed me all around the office and made me meet people. Then, I was taken to the Accounts

Dept. (my workplace) to meet my supervisor CFO Mrs. Mona Mathurma’am. Ma’am and her

team showed and taught me how filing is done here at ‘Shriram General Insurance Co. Ltd.’ The

process to do filing was here distributed in the following types:-

I. Files according to the claims pending.

II. Files according to the claims filed by the policyholders but rejected by the company.

III. Files according to the claims accepted.

IV. Files according to the claims to be paid to the nominee in case of death of the original

policyholder.

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 V. Files according to the claims paid.

Also on the first day, ma’am briefed me about the procedure that how can you get a general

insurance policy from Shriram General Insurance Co. Ltd. You can do so by visiting their

website or by walking into an office.

I reached office at 9:30 a.m. on usual time. I was given a task to study how the general insurance

companies in India do accounting and prepare their Financial Statements. I surfed on the internet.

I read many articles, research papers, etc. in order to get the required knowledge about the topic.

I read many articles online, etc. and after analysing the same, prepared a report stating my entire

work for 1 day on the below mentioned topic. This research also helped me to understand the

company’s financial statements more clearly and with deep understanding about the concepts. As

Shriram is a company whose financial statements are not easily available on the internet because

this company has not gone to public till yet, i.e., its shares are not traded among the general

public or at the stock exchange. I was given the financial statements (annual reports) of the

company to study here at the office, and I was not allowed to take them home.

Accounting in General Insurance Companies:

In this I will discuss about the final accounts of general insurance companies.

General insurance business means business other than life insurance business. General insurance

companies operating in India were nationalised on 13th May, 1971 by the Ordinance of the

President of India. The accounts of the General Insurance Companies were maintained according

to the provisions of Insurance act 1938. Under the previous law, separate Revenue Account had

to be prepared for each type of business-fire, marine, accident, etc.

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The following accounts were used to be prepared in the case of General Insurance

Companies:-

(a) Revenue Account:

A separate revenue account is prepared for each type of business. Incomes and expenses of a

particular business are recorded separately and profit or loss arising there from is transferred to

Profit and Loss Account.

(b) Profit and Loss Account:

General incomes and expenses not belonging to a particular business are recorded in it and

balance of profit or loss is transferred to Profit and Loss Appropriation Account.

(c) Profit and Loss Appropriation Account:

Appropriations of profit for various purposes are shown in it and its balance is transferred to

balance sheet.

(d) Balance Sheet:

It shows various assets and liabilities of general insurance companies. Performa of Balance Sheet

is same for general and life insurance companies.

Before the incorporation of IRDA Act, 2000 which allowed private players, general insurance

business was conducted by General Insurance Corporation of India and its four subsidiaries.

But now, Final accounts of general insurance business are required to be prepared as per

IRDA Regulations, 2002 which consist of:

(a) Revenue Account (as per Form B-RA);

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(b) Profit and Loss Account (Form B-PL);

(c) Balance Sheet (Form B-BS).

The summaries of these accounts are as follows:

1. Revenue Account:

A separate Revenue Account (Form B-RA) is prepared for each type of business e.g., fire,

marine etc. It records the incomes and expenses of a particular business and profit/loss is

transferred to Profit and Loss Account.

2. Profit and Loss Account:

(Form B-PL) Besides, profit/loss of different business, it records incomes and expenses of

general nature and it shows how the profit has been appropriated. Its balance is shown in the

Balance Sheet.

3. Balance Sheet:

(Form B-BS) It records various assets and liabilities of the General Insurance Companies.

It must be observed that difference in revenue account does reveal profit or loss of business. The

revenue account is closed by transfer to respective fund account viz., fire fund, marine fund etc.

General insurance policies are normally issued for short terms renewable every year.

It is quite possible that on the accounting date, some of the contracts are still alive and hence

represent unexpired risk. A suitable provision is made for that unexpired risk on a generalized

basis as it is impractical to create it for specific policies. Sometimes an additional provision is

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also created. The total of reserve for unexpired risk and additional risk is collectively termed as

‘Respective Fund’ which may be fire fund, marine fund, motor vehicle fund, etc.

The revenue account starts and ends with respective value of the fund besides recording normal

revenue and expenditure. The difference of the account is called profits or loss and is transferred

to Profit and Loss Account.

Reserve for Unexpired Insurance:

According to the provisions of Insurance Act, 1938, provision for unexpired risks in case of fire,

marine, cargo and miscellaneous business is to be created-@ 40% of the net premiums received

and 100% in case for marine Hull. However, income determination of general insurance business

is done as per section 44 of Income-tax Act, 1961 and Rule 6 E of the Income-tax Rules.

They provide for reserve for unexpired risk allowed as deduction up to 50% of net premium

income in case of fire insurance and miscellaneous insurance and 100% of net premium in case

of marine insurance.

As such, reserve is to be made at 50% of the net premium income in case of fire and other

insurance businesses and at 100% of the net premium income in case of marine insurance

business. A prudent insurance company may make additional reserve in case of fire and

miscellaneous insurance business, if it considers it necessary.

Commission to Agents:

Commission on policies affected through insurance agents cannot exceed 5% of the premium in

respect of fire and marine business and 10% in case of miscellaneous business. In case of

policies effected through principal agents the maximum limits are 20% for fire and marine

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policies and 15% in the case of miscellaneous insurance less any commission payable to an

insurance agent with respect to the policy concerned. Certain concessions are available in this

respect to principal agents having a foreign domicile.

Claims:

Claims paid must include all expenses directly incurred in settling claims such as legal expenses,

medical expenses, surveyor’s expenses etc.

No claim of Rs. 20,000 or more can be paid, except as the Controller of Insurance may otherwise

direct, unless there is a report in respect thereof from an approved surveyor or loss assessor

(licensed under the Insurance Act).

Regulations Given by Insurance Regulatory and Development Authority:

An insurer carrying on general insurance business, after the commencement of Regulations given

by the Insurance Regulatory and Development Authority on 30th March, 2002, shall comply

with the requirements of Schedule B for the preparation of financial statements, management

report and auditor’s report.

Schedule B as given by IRDA is reproduced below:

General Instructions for Preparation of Financial Statements:

1. The corresponding amount for the immediately preceding financial year for all items shown in

the Balance Sheet, Revenue Account, and Profit and Loss Account shall be given.

2. The figures in the financial statements may be rounded off to the nearest thousands.

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3. Interest, dividends and rentals receivable in connection with an investment should be stated at

gross value; the amount of income tax deducted at source being included under ‘advance taxes

paid’.

4. Income from rent shall not include any notional rent.

5. (I) For the purposes of financial statements, unless the context otherwise requires:

(a) The expression ‘provision’ shall, subject to note (II) below mean any amount written off or

retained by way of providing for depreciation, renewals or diminution in value of assets, of

retained by way of providing for any known liability or loss of which the amount cannot be

determined with substantial accuracy.

(b) The expression ‘reserve’ shall not, subject to as aforesaid, include any amount written off or

retained by way of providing for depreciation, renewals or diminution in value of assets or

retained by way of providing for any known liability.

(c) The expression ‘capital reserve’ shall not include any amount regarded as free for distribution

through the profit and loss account; and the expression ‘revenue reserve’ shall mean any reserve

other than a capital reserve.

(d) The expression “liability” shall include all liabilities in respect of expenditure contracted for

and all disputed or contingent liabilities.

(II) Where:

(a) Any amount written off or retained by way of providing for depreciation, renewals or

diminution in value of assets, or

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(b) Any amount retained by way of providing for any known liability is in excess of the amount

which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be

treated for the purpose of these accounts as a reserve and not provision.

6. The company should make provision for damages under law suits where the management is of

the opinion that the award may go against the insurer.

7. Extent of risk retained and reinsured shall be separately disclosed.

8. Any debit balance of the Profit and Loss Account shall be shown as deduction from

uncommitted reserves and the balance, if any, shall be shown separately:

1. An insurer shall prepare the Revenue Account, Profit and Loss Account [Shareholders’

Account] and the Balance Sheet in Form B-RA, Form B-PL and Form B-BS, or as near thereto

as the circumstances permit.

Provided that an insurer shall prepare Revenue Account and Balance Sheet for fire, marine and

miscellaneous insurance business and separate schedules shall be prepared for Marine Cargo,

Marine-other than Marine Cargo and the following classes of miscellaneous insurance business

under miscellaneous insurance and accordingly application of AS-17 (Segment Reporting) shall

stand modified.

(i) Motor

(ii) Workmen’s Compensation/Employers’ Liability

(iii) Public/Product Liability

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(iv) Engineering

(v) Aviation

(vi) Personal Accident

(vii) Health Insurance

(viii) Others

2. An insurer shall prepare separate Receipts and Payments Account in accordance with the

Direct Method prescribed in AS-3 “Cash Flow Statement” issued by the ICAI.

This learning and understanding of the theoretical concepts proved me helpful in clearly

understanding the Financial Statements of the company.

Fire Insurance:

Similarly, fire insurance means insurance against any loss caused by fire. Fire Insurance business

means the business of effecting, otherwise than incidentally to some other class of business,

contract of insurance against loss by or incidental to fire or other occurrence customarily

included among the risks insured against in fire insurance policies — Sec. 2(6A).

Marine Insurance:

In other words, it is a contract which protects the insured against losses on inland water or any

land risk which may be incidental to any sea voyage—Sec 4(i).

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I reached the office at 9:30 a.m. sharp and sat in my own cubicle. Today, I was guided by Ravi

Sir who is a senior employee in the Accounts Department. He guided me on today’s tasks, and

asked me whether I have got the basics of how accounting is done in General Insurance

Companies like ours. From today onwards, I explored the world of accounting at the company by

my own as told by Mona Maam to go to people and experts and ask them to teach you the basics

of their expertise. I was now ready to embrace the challenges and learn new things.

Today, I was given the task to study the ‘12th ANNUAL REPORT, 2017-18’ to get the deep

insightful idea and knowledge about the company’s financial performance during the past 1 year,

and its future endeavours and future prospects. Studying a full Annual Report is not an easy task

to do but as we all know that to start with the technical work we have to first get the theoretical

knowledge of the concepts or about the company. My whole day revolved around reading the

2017-18- Annual Report, and analysing the same.

Here are some highlights of what I have studied the whole day in the Annual Report:

(P.T.O.)

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I reached the office at the required time. Today, I first met Mona Mathur Ma’am, and discussed

with her the today’s work targets to be achieved. Ma’am asked me that what I did yesterday and

if I understood the key area aspect that goes into the preparation of the Financial Statements as

well as the Annual Reports of a General Insurance Company. I briefed maam about what I

understood and analysed yesterday, and she was quite happy as I was learning many things

myself or with less help of her.

The today’s task for me to complete analysing the 12th Annual Report for the year 2017-18,

starting from the Auditor’s Report to the Financial Statements along with all the Schedules and

Notes to Accounts. I accepted the task and quickly started upon my work.

First thing I analysed from the Financial Statements of the company is that unlike other Non-

Insurance Based Companies, General Insurance Companies prepare a ‘Revenue Account’ (A

separate Revenue Account (Form B-RA) is prepared for each type of business e.g., fire, marine

etc. It records the incomes and expenses of a particular business and profit/loss is transferred to

Profit and Loss Account.)

I faced some challenges and difficulties in completing my tasks which are like; annual reports of

a general insurance company are very different in terms of formats, line items, standards

applicable, etc. So, I faced difficulty in understanding the technical terms which I had read or

heard first-time here only. I had to time by time Google these terms to understand their meanings

and their relevance to the attached financial statements in which they are used. Everybody is so

busy here at the office that I cannot ask them to make me understand so many concepts. So I had

to only find out the solution to these challenges faced, and which I did found out.

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As I was studying the 12th Annual Report, I came through a term, a technical jargon again, but it

forced me to Google it and find out more about it. The term was ‘TERRORISM POOL’.

AN EXTRACT HAVING RELEVANCE IN THE ANNUAL REPORT:

Around 4:00 p.m. on the same day, after completing the tedious task of studying the whole

Annual Report, ma’am taught me about how the Accounting for Subsidiaries/ Associate

Companies/ Joint Ventures is done here at the registered office.

SGI Philippines Insurance Company Inc. (Formally Known as Monarch Insurance Co. Inc.) is

the subsidiary company of Shriram General Insurance Co. Ltd.

I already knew that what is a subsidiary company, joint venture, etc. but I had never done

accounting for them. Ma’am taught me in simple language about this tough concept to help me

get a basic idea about how it’s done.

Here, is a glimpse of some information about the Subsidiary:

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I reached office at around 9:45 a.m. in the morning. I first met Mona Mathur Ma’am and

submitted ma’am a report stating what I have learnt till now from the first day. It was done

because ma’am said that after reading the report then she would decide what would be my future

tasks and work to be assigned.

Mona Mathur ma’am after thoroughly reading my report of my work done till now said that

Harsh, now you have clearly understood the theoretical background of the work that we do here.

So, from now, you would start working on our Practical Projects/ Practical Work. This made me

excited because the basic motive of me coming to Shriram was this only, i.e., learning to prepare

financial statements, auditing, etc. My core or the strongest part is the practical area only.

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From today onwards, the real work started. My work was that I was given the last year’s Balance

Sheet soft copy, and I had to compare it with the actual figures and actual reports in my hand and

see and rectify any mistake, if any in the past records.

I, on my own, studied the ‘11th Annual Report of Bharti AXA General Insurance Co. Ltd.’,

analysed the Financial statements, read the auditor and management’s report, etc., and then after

analysing this annual report I compared it with the 12th Annual Report of Shriram General

Insurance Co. Ltd. As I have completed analysing the annual report with all the financial

statements of SGI, so I was in a better position to compare it with another company in the same

industry.

My findings and observations after the rigorous comparison displayed some major breakthrough

points on which Shriram General Insurance Co. Ltd. stood up against Bharti AXA General

Insurance Co. Ltd. For Example:-Shriram’s Net Premium Collection was almost 400-500 Crores

up from Bharti AXA collection, Shriram’s Solvency Margin Ratio was in a better position as

compared to Bharti AXA ratio, etc.

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  WEEK-2 (11-17th May, 2019):

I reached office a bit late by 15 minutes because of some personal reasons. After I reached the

office, I first met Ravi Sir to talk about my yesterday’s assigned task. He told me to continue or

go further in my yesterday’s work, and finish it off completely. Every Saturday here is a half-

day. We had office from 9:30 a.m. to 1:30 p.m. I was quite happy because it was Saturday and

we would be free from our work by 1:30 p.m. So, I started my work with full of enthusiasm and

zeal.

Everybody in the office is so busy nowadays since past 1 and a half months because of

submission of the ‘13th Annual Report’ for the year ending on 31st March, 2019 of SGI. I could

see Auditors, statutory auditors, taxation and accounts department including Mona Mathur

Ma’am and Ravi Sir busy with their part in the preparation of the Annual Report.

Finally, I completed my assigned task around 12:45 p.m. and submitted it to Ravi sir. I felt

relaxed after completing my work. Then, after this I was free to do any study or research on my

own. So, to fulfil my curiosity about the world of GST in India, I, on my own surfed goggle and

learnt the basics of GST Return (like GSTR-1, 2, 3B, etc.). I learnt that who has to file which

form, when a particular person has to file the GST return, quarterly GSTR-1 submissions,

monthly GSTR-1 submissions with subject to the conditions of total turnover for the year to be

equal to or less than 1.5 Crores in the old return and 5 Crores in the new return. I also learnt how

to file GSTR-1 on GST Portal with both online and offline invoice mode. At last, finally, my

curiosity and knowledge both were fulfilled.

Comparison with the current system

New Return Old Return

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Quarterly Return limit has been extended up Quarterly Return filing limit is 1.5 crore
to 5 crore

Profile base return is possible. No concept of Profile base return in present

System.

Only Uploaded Invoices by Supplier would There is no matching concept present in

be valid document for availing ITC. current system, it is written in law but
recipient could take credit for all such
Receiver can take credit of invoices which Invoices in GSTR-3B even not reported by
are not uploaded as well, He can report the supplier on self-declaration basis.
invoices as missing and the supplier has to
confirm the same and pay tax along with
interest

An IT tool/facility for matching of the No IT tool for matching of the Invoices is

Invoices downloaded in XL format will be present.
available from the “Viewing facility”.

If Turnover is less than 5 crore taxpayer can Only one Quarterly return facility in GSTR-1
choose either of following: is available If TO isup to 1.5 crore but GSTR-
Sahaj (Only B2C) 3B must be filed monthly.
Sugam (Only B2B & B2C)
Quarterly (All other Type of Supplies)

Every taxpayer who will apply for quarterly Every Taxpayer who has applied for quarterly
return has to pay tax in self-declaration form return has to pay tax on monthly basis in form
on monthly basis for first two months of the of GSTR-3B.
quarter.

For Nil Return when user has no purchase, When there is no Outward tax liability in this
no sales, no ITC to avail in any quarter of case taxpayer will has to file NIL Return.
the Financial Year shall file one Nil return
for every quarter.

SMS Facility for filing of Return will be SMS functionality is not present.
available for NIL/Quarterly Return.

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Taxpayer filing quarterly return shall report NA
missing invoices in the next quarter.

I reached office at 9:30 a.m. which is the required time. I first met Mrs. Mona Mathur Maam,

and ma’am asked me that whether I will be comfortable in doing a task which is of something

higher level or a work which has a significance importance. I said ma’am I will be more than

happy to that work.

So, after my consent, ma’am asked Ravi sir to give the financial statements of previous year and

this year ended on 31st March, 2019. Sir said Harsh, as right now everybody is so busy in

preparing the Final Copy of ‘13th Annual Report of Shriram General Insurance Co. Ltd.’. Sir said

that through this work you will be assisting or helping the accounts and taxation department in

submitting the Annual Report as quick as possible to the statutory auditors for the final audit of

Accounts and Financial Statements and theirs report in Annual Report.

I was quite happy and excited that I have been given work of such high responsibility and

caliber.

After this, I was provided with all the soft and hard copies of documents and Financial

Statements and all the Notes to Accounts, Schedules and Annexure from which I have to do my

work. I started my work as soon as I received it.

I completed my work around 12:15 p.m. I was told to note down the mistakes in the financial

statements, if any on a piece of paper. In true words, the work assigned to me was not an easy

task to perform. This kind of work requires high level of focus and concentration.

27
If you commit a mistake in your work like you missed an item to check in the Financial

Statements, and the figure you missed was an utmost importance to your work, this will greatly

impact the figures succeeding that ‘missed or omitted figure’. So, I had to be so much attentive

and careful while I was performing the assigned task.

But, at last, I finished my work will all correct analysis and study, and also, I was able to find

one mistake in the line item of Cash Flow Statement of the year ended 31st March, 2019 of SGI.

Sir and Maam both were quite happy of my work, and of course, they appreciated about my

observation on the mistake which was hidden in the Financial Statements like CFS. They after

knowing the mistake rectified it in the correct manner.

I was quite happy and proud of my work done.

28
 Last closing Balance
Sheet Cash and Bank
Balance reduced to
almost half from last
year’s Balance Sheet
figure. This was due to
sharp decline in the
current accounts
balance as compared to
previous year. It had
almost reduced to half
from previous year
because of increase in
unprecedented
expenses.

I reached office at the scheduled time, i.e., 9:30 a.m. After coming, I first met Mona ma’am and

discussed with her the today’s task. She told me to first complete the task which was assigned to

me yesterday. Ma’am told Ravi Sir to give me the sheets which was returned by me incomplete

yesterday to Ravi sir only. Ravi sir handed me sheets and told me to complete my assigned task

as soon as possible and then report to ma’am directly.

I started on my work as soon as I received it. I was continuing the yesterday’s work only as I had

left my work incomplete yesterday.

I completed my work around 1:30 p.m., and submitted to Ravi Sir thereafter only.

My work required a high degree of focus, concentration and attention. A slight deviation in

concentration can seriously impact the correctness and the accuracy of the Financial Statements,

Notes to Accounts, Annexure, etc.

My work was basically to find or check the accuracy of the Financial Statements, Notes to

Accounts, etc. for the year ended 31st March, 2019. I was given the Excel file of the financial

29
statements so prepared, and a ‘ready for print’ hard-copy. I had to check the accuracy of the

hard-copy in comparison or in reference to the Excel file. There were many error or I can say

Rs.1- Rs.10 difference throughout the reports which I found, corrected, rectified, and

immediately conveyed these errors for final rectification and correction to Mona ma’am and

Ravi Sir.

That was the work which I was doing for past 2 days, and it completed today.

Here are some samples from my work:

(P.T.O.)

30
 If you can see there
are some particular
numbers marked
tick with pencil and
just adjacent to it, in
brackets, there is
the difference
written whether +ve
or –ve as per the
study from excel
file/ hard-copy
figures deviating
from the excel file.

That was my work

31
Today, I reached the office early by 5 minutes, i.e., at 9:25 a.m. After coming, I first met Mrs.

Mona Mathur ma’am and discussed with her about today’s agenda. Ma’am asked me to take the

hard-copy of the joint accounts/ Consolidated Financial Statements from Ravi Sir including the

Excel files of all the Consolidated Final Accountsin order to check the accuracy and correctness

of the Consolidated Financial Statements. In simple words, I had to check/ tally the figures

printed on the hard-copy with the softcopy, and rectify the figures in the hard-copy, if any

deviation according or in reference to the softcopy. This is a work which is related to the basics

of Auditing.

After receiving the documents and excel files from Ravi Sir, I started upon my work as soon as I

received it.

It was 1:00 p.m. when I was finished with my work/ assigned task. I took some sigh of relief

after my work was finished.

Before, maam could assign me my next task, ma’am asked me whether now I have understood

the basics of the world of Auditing or not. Maam said this is what is auditing which you are

doing from past 2-3 days including today. In my opinion, this was the best work to do in order to

gain the practical knowledge in the field of Auditing.Auditing in simple language means that to

check or examine the accuracy of the company’s financial records which shows its true and fair

position.

After the completion of the Audit work, I was handed over with a new task to study the

significant accounting policies as been applied in Shriram General Insurance Co. Ltd.

Maam handed me over the Final ‘to-be-printed’ for 13th Annual Report softcopy/ word file

containing the significant accounting policies of the company.

32
Here is some glimpse from my Audit work:

Here is some glimpse from my work:

Significant accounting policies

The accounting policies have been applied consistently to all periods presented in the financial

statements. The Company has elected to utilize the option under Ind AS 101 by not applying

provision of Ind AS 16 & Ind AS 38 retrospectively and continue to use the Indian GAAP

carrying amount as deemed cost under Ind AS at the date of transition to Ind AS. Therefore, the

carrying amount of property, plant and equipment, Investment Property and Intangible Assets as

at 1 April 2017, the Company’s date of transition to Ind AS, according to the Indian GAAP were

maintained in transition to Ind AS.

Revenue from operations

Premium:

General insurance business

33
Premium (net of GST / Service Taxes applicable) in respect of insurance contracts shall be

recognized as income over the contract period or the period of risk, whichever is appropriate.

A liability for unearned premium shall be created as the amount representing that part of the

premium written which is attributable to, and to be allocated to the succeeding accounting periods

as may be prescribed by the Authority.

Premium Received in Advance

Premium received in advance represents premium received in respect of policies issued during

the year, where the risk commences subsequent to the balance sheet date.

Reinsurance accepted

Reinsurance inward acceptances are accounted for on the basis of reinsurance slips accepted from

the insurers.

Reinsurance ceded

Premium payable on re-insurance ceded is accounted at the time of recognition of the premium

income in accordance with the treaty arrangement with the re-insurers. Reinsurance cost, in

respect of proportionate reinsurance ceded, is accrued at policy inception. Non proportionate

reinsurance cost is recognized when incurred and due. Any subsequent revision to, refund or

cancellation of premium is recognized in the year in which they occur.

Contingent Liabilities and Contingent Assets:

A contingent liability is a possible obligation that arises from past events whose existence will be

confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond

the control of the Company or a present obligation that is not recognized because it is not

34
probable that an outflow of resources will be required to settle the obligation. A contingent

liability also arises in extremely rare cases where there is a liability that cannot be recognized

because it cannot be measured reliably. The Company does not recognize a contingent liability

but discloses its existence in the financial statements.

Contingent Assets are possible assets that arise from past events and whose existence will be

continued only by occurrence or non-occurrence of one or more uncertain future events not

wholly within the control of the company. Contingent assets are disclosed in the financial

statements when inflow of economic benefits is probable on the basis of judgment of

management. These are assessed continually to ensure that developments are appropriately

reflected in financial statements.

Today, I reached office a bit late by 9:45 a.m. due to some unprecedented reasons. After coming,

I first met Mrs. Mona Mathur ma’am and discussed with ma’am about the today’s agenda.

Ma’am told me to directly get in touch with Ravi Sir, he would be guiding you and assigning you

the work today. I met Ravi sir, and sir assigned me the task to self-study the topic of GST, its

meaning, its applicability in a General Insurance Company, various reports under it to be filed

throughout the year, etc. Sir said to me that harsh you study the topic on your own, and if you

face any difficulty in understanding and concept or any practical aspect in regard to a general

insurance business, then you are free ask me anytime. But, first you read about it.

I started reading about it on Google through various articles, theories, Government GST Portal,

etc. as soon as I received my assigned task.

Here are some glimpses of what I read:

35
I finished my assigned task around 3:30 p.m. After completing, I did have some doubts so I

cleared them with the Ravi sir. Sirmade me understand the difficult concepts in GST for General

Insurance Companies very easily through various practical examples. It helped me really well in

understanding the various concepts of GST basics in a precise manner.

Today, I reached the office at around 9:30 a.m. After coming, I first met Mrs. Mona Mathur

ma’am, and then I discussed with her about today’s agenda. Ma’am directed me to consult with

Ravi sir about the assigned task. I then met Ravi sir who was busy in his own work but sir gave

me time in making me understand the task and the practical concept revolving around it. I

understood the basics concept of ‘VOUCHING’ very easily and had the conceptual clarity about

the same. Sir then told me to start my assigned task with this conceptual clarity only otherwise

36
this work of ‘Vouching’ as said by sir is the backbone of Auditing, which CAs regularly does.

Sir said now you can start your work.

I started upon my work as soon as I received it. First, to get some idea I watched some tutorial

videos on YouTube regarding the steps and procedure in Vouching as part of Auditing. These

videos helped me to develop some confidence before starting on with my work as I didn’t want

to commit any big mistake. I had to work upon some vouchers with regards to sales and check if

their corresponding entry is passed in the accounting books. Like, I had to check the total tax

liability figure, GSTIN Number, Client name, particulars, voucher number, etc. If all the details

regarding that particular transaction is same both in the accounting books as well as in their

corresponding vouchers, then the Vouching or Auditing of that account is done, and everything

is as per the standards and norms.

Here is some glimpse from my work:

This is being an old voucher which I

was provided with. I had to check
all the information regarding this
voucher in the accounting books so
as to make sure that the correct
entry in respect of this voucher
corresponds in the books with the
correct voucher no., etc.

37
 From this CFS, I had to
check if the amounts in
the voucher and in the
accounts are same or
not. They should be same
in order to get the
correctness of the
accounts.

I finished my work around 3:30 p.m. Then, I submitted my work to Mona ma’am. I told ma’am

that I have understood the basics of vouching, and can now perform it practically on my own. At

this time, I was done away with my first assigned task.

After this task, maam said that Harsh now for today you are on your own to explore and learn

anything you want. I can ask anyone around in the Accounts and Taxation Department to teach

me how they work, on what all things they work for, etc. But, today I was feeling a bit lazy so I

decided to learn on my own for the rest of the day. I sat in my cabin in front of my PC and

started googling about the practical impact of GST and Other Taxes on the Insurance Industry of

India or specifically impact on the General Insurance Industry. I read many articles, e-

newspapers, etc. to understand the ongoing impact on the General Insurance Businesses. When I

was reading various articles, I came across an article in the ‘BUSINESS LINE’ by The Hindu

which said this-

‘A reduced rate for insurance premium of goods carrying vehicles may help reduce tax costs for

goods transport service providers.’

38
Below is the exact cut-out of the respective article:

39
  WEEK-3 (18-24th May, 2019):

Today, I reached the office at around 9:35 a.m. Today is a Saturday and we had a half-day here.

The timings of the office for the Saturdays are 9:30 a.m. to 1:30 p.m. In normal weekdays,

everybody had to compulsorily wear or come in formals but there are no such compulsions on

Saturdays. Employees and trainees can wear casuals on Saturdays. After coming I first met Mrs.

Mona Mathur Maam, and maam said me to meet Vikalp Singh Chouhan Sir for assigning me

with the today's task. Sir said to me that Harsh today you will be doing that regular work of

Audit of our accounting books only, what the CAs do, and what you are doing from past 1 week.

I was quite happy after knowing my work as I am in love with Auditing of accounting books. Sir

told me that I have to today audit the Financial Statements and related accounts, schedules, etc.

which are in the interest of public or which form the majority part of our mandatory public

disclosures. These are those Financial Statements and related accounts which are available on the

company's website for free, and anyone can download and view it from there. As said by Vijay

sir it was compulsory for even for those companies in the insurance industry whose shares or

stocks are not freely or publicly traded at the recognised stock exchanges. I learnt various new

information which I had heard for the first time. IRDA governs the total insurance industry. It

has very strict norms in regards to matter of public disclosures. Sir handed me over with the

hardcopy of the CFS (Consolidated Financial Statements) of the year ended 2018-19 and to

Audit or check the accuracy of it by analysing with the help of the CFS of the year ended 2017-

18. Sir handed me over with the both the year's hardcopy and told me start my assigned task

ASAP because these documents which I am working upon have to leave for Chennai tomorrow

for the General Meeting on Monday (20th May, 2019) in Tamil Nadu as the parent organisation

'Shriram Capital Limited' as its registered office there at Chennai, Tamil Nadu.

40
I knew what I have to do very clearly, so I started upon my work as soon as I received it. I

audited the CFS of the year ended 2018-19 through checking the quarter-ended and year- ended

balances in the CFS of the year ended 2017-18. There were many mistakes, errors, wrong

grouping and placement of sub-line items in the CFS. For example: - I found out many wrong

balances with rupee differentiating from Rs. 1 to Rs. 10. Some sub-line items were recorded or

not recorded correctly, etc.

As the company shows both the current year figures and the previous year figures in a respective

year's CFS, so I found out those mistakes also like, a sundry creditors for the year ended 31st

March, 2018 in the CFS for the year ended 2017-18 slightly differs from its respective balance in

the CFS for the year ended 2018-19. I had to look upon for these types of mistakes also if they

persist in the CFS. There were many other correction points which I had to look upon throughout

my Audit process of the accounting books.

Here is some glimpse from my today's work:

(P.T.O.)

41
These figures I had to calculate again as sir had taught me to
do. These figures earlier were not in line or were not matching
with the previous year's CFS figures. This is one part of Audit
process. Just check and if any error, then rectify.

42
Today, I reached the office at 9:35 a.m., 5-minutes late than usual time. Mona ma’am is not there

in the office today as she has left for Chennai yesterday to attend the meeting at the parent

organization- ‘Shriram Capital Limited’. Today, I would be guided and supervised by Ravi sir in

place of Mona ma’am. I met Ravi sir and discussed with sir about the today’s agenda.Sir told me

today that as all the accounts of the year ended 31st March, 2019 are now prepared, and today are

all presented at the Board Meeting in Chennai, so today you are free to do anything or to learn

anything as you like or if there is anything in which I can help or assist you.

43
So, today I had no assigned task or duty to be performed. I was on my own for the whole day.

So, I decided to surf the Google and learn new concepts in the area of Audit and Taxation.

Here is some glimpse of what I learned today:

Tax Technology: The current scenario

Around the world, businesses continue to evolve rapidly. Momentous advancement is being

witnessed in the field of technology and its role in the day-to-day operations of businesses. In

this scenario, there is an unprecedented potential for emerging technologies that will reshape

how work is done, how businesses grow, and how markets and industries evolve. And with

dramatic changes in the tax landscape, tax authorities and taxpayers are looking for ever-

increasing innovation in tax management. Consequently, there is a great need for organizations

to invest proactively in their tax functions in this fast-changing business and regulatory

environment.

The main challenges facing tax functions today:

1. Inconsistency in the information used in various tax filings for diverse tax laws in

multiple jurisdictions.

2. Lack of effective control over compliance that needs to be undertaken and confidence

that the required data is available for completion of compliance.

3. Optimisation and achievement of efficiency in the tax function to provide quick but

accurate tax input with high assurance for effective decision-making in business.

4. Ability to influence shaping of new laws, protocols and public opinion across multiple

jurisdictions and diverse regulators, and other stakeholders including media and NGOs.

44
Therefore, companies need to implement the right technology-related strategies to mitigate the

challenges mentioned above by correctly analysing:

1. Technology-related requirements: analysis of cost benefits aspect of technology adoption.

2. Alignment of technology: alignment of technology for tax functions with organisations’

overall technology strategies.

3. Prioritisation of effort: initial technology implementation in high-impact areas on priority

basis so that benefits are realised in terms of effort and cost.

Why has technology not been widely adopted by tax functions till now?

1. Dearth of reliable technology-based tools that could help to automate tax functions.

2. Lack of availability of the right skillsets and domain expertise in niche areas of

technology.

3. Lack of awareness of benefits accruing from implementation of technology in tax

functions.

9 Areas Your Organization Should Be Auditing

More and more organizations are using an internal auditing process to identify improvement

opportunities.Internal auditing is an independent, objective assurance and consulting activity

designed to add value and improve an organization’s operations.Businesses use policies and

procedures to maximize efficiency and create consistent practices. However, policies and

procedures are only as effective as an organization’s ability to enforce them.An internal auditing

process helps ensure policies and procedures are followed and noncompliance is reported to

management for corrective action.Policies are often written to ensure an organization is legally

45
compliant, but policies also ensure consistency in practice and quality of internal processes and

services.Quality management systems use auditing to measure compliance with internal policies

and procedures. All business process should be audited for compliance.

9 Areas Your Organization Should Be Auditing:

1. Cash Handling:

Fraud and embezzlement is costing organizations 5% of revenues each year. This makes it

crucial to inspect how cash is handled within the organization.

Areas within an organization that deal with cash registers, petty cash or money transactions

should be audited to ensure compliance with internal cash handling procedures.

2. Credit Card Usage:

Credit card use in small business is becoming more common because of its ease of use and

necessity for internet purchases.

Ensure accountability for credit card usage by auditing for compliance with spending policies.

When doing auditing make sure you audit all credit card statements and ensure that all purchases

have a business purpose explanation.

3. Vendor Billing:

Vendor bills should be verified and approved for payment. This is done to ensure that vendor

charges correspond to the service provided.

Billing errors are common so it is important to double check accuracy of all vendor invoices.

4. HR Compliance:

Businesses use policies and procedures to maximize efficiency and create consistent practices.

However, policies and procedures are only as effective as an organization’s ability to enforce

46
them. There are many laws that govern the HR function. Organizations should be aware of those

laws and have auditing procedures in place to ensure that the HR department is legally compliant

and maintains accurate employee records.

5. Budget Control:

Budgets are only as good as the process that manages them. A budget review process can

monitor budget spending and oversee large expenditures.

Management should be aware of how budget dollars are spent and of any budget variances.

6. Process Improvement:

Organizations improve how their products and services are delivered by focusing on improving

internal systems and processes.

When these processes are changed, as part of quality improvement initiative, ongoing monitoring

of new processes help to ensure compliance with improvement effort changes.

7. Customer Service:

A strategic customer service strategy that is supported by a great customer service experience

can result in customer loyalty.

Auditing the customer service function can help determine training needs, customer expectations

and improvement opportunities.

8. Vendor Comparisons:

It is easy to fall into the vendor “relationship” trap. There should be strict conflict-of-interest

policies that determine how the purchasing function interacts with vendors.

This area should be audited to make sure multiple bids are submitted for large purchases to

ensure the organization is getting the best value for its money.

47
9. Cost Savings:

All organizations are being challenged to do more with less. This means reducing spending and

managing costs.

Today, I reached office around 9:35 a.m. After coming, I first met Ravi sir as Mona Mathur

ma’am has not come yet from Chennai. I discussed with sir about the today’s agenda or what

work to do. Sir said today I am assigning you a task to study about the corporate governance as it

is applied or being followed at Shriram General Insurance Co. Ltd. Sir handed me over the

Annual Report for the year 2017-18 to get the required information and detailed analysis about

Corporate Governance in the company. Sir said me to surf the internet about how the corporate

governance structure should be designed in a company, and what is an ideal corporate

governance structure. Sir also said to see, analyze and compare the ideal structure and what

structure we follow at SGI, and analyze your findings and observations.

I started upon my work as soon as I received it.

Here is a glimpse of what I have learnt:

What is corporate governance?

Corporate governance has a broad scope. It includes both social and institutional aspects.

Corporate governance is the system by which companies are directed and managed. It influences

how the objectives of the company are set and achieved, how risk is monitored & assessed, &

how performance is optimized.

48
Corporate governance is the system of principles, policies, procedures, and clearly defined

responsibilities and accountabilities used by stakeholders to overcome the conflicts of interest

inherent in the corporate form.

Corporate governance is the interaction between various participants (Shareholder, Board of

Director and Company Management) in shaping corporation’s performance and the way it is

proceeding towards.

Corporate governance deals with determining ways to take effective strategic decisions and

developed added value to the stakeholder.

Corporate governance ensures transparency which ensures strong and balance economic

development. This is also ensuring that the interest of all shareholders (Majority as well as

minority shareholder) is safeguard.

Corporate governance affects the operational risk and, hence, sustainability of a corporation.

◊ The quality of a corporation’s corporate governance affects the risks and value of the

corporation.

◊ Effective, strong corporate governance is essential for the efficient functioning of

markets.

49
 Corporate Governance guidelines as issued by IRDAI

Some glimpse of SGI Corporate Governance System:

50
Today I reached office around 9:35 a.m. today, Mona ma’am was not available in the office so,

after coming I first met Ravi sir, and I asked sir that sir, I want to learn how you file GST reports

like GSTR-1, 2, etc., and the whole GST compliance mechanism here at Shriram General

Insurance Co. Ltd. Sir said then first you have to learn the theoretical background of our practical

work here at SGI. Sir suggested or advised me first to get my concepts clear about the various

areas of GST applicable in India. Sir also said that before understanding the practicality of GST

compliance here in service industry, you first need to understand the basics of the concept of

GST. Sir guided that how I can learn the basics of GST and get the required knowledge before

starting the practical work. I understood that I had to first learn the basics and then I will get the

hand-on experience on the practical work.

51
I started upon my work as soon as I received it. I was provided with a book by Ravi sir which

was said by sir would help me in understanding the concepts of GST in a better way. Reading the

book was just like I was reading a textbook and preparing for some sort of examination. I, rather

than reading the book choose the other way to learn, that is through the internet. I started with the

basic concepts of GST like what it is, when it was introduced, its basic mechanism, it’s an

indirect tax, etc. After this, I moved towards the most important aspect of GST which is being

regularly used here at SGI which was ‘Matching and Reconciliation under GST- its whole

mechanism and concept’. Like this, I studied many other concepts and got my concepts cleared.

Here is a glimpse of what I have learnt:

What is Matching & Reconciliation under GST?

Following Mismatches can be noticed by taking up following Matching and Reconciliation

exercises:

 Differences between the amount of credit shown in GSTR- 3B and the GSTR 2Aor/and

 Discrepancies between GSTR-3B and GSTR-1 or/and

 Differences in the provisional credit claimed and actual credit that is claimable. This

situation arises usually during transition stages.

Any differences noticed between these returns will lead to scrutiny notices being issued to the

taxpayers.

There can be several causes for mismatches. Popular ones are:

52
 1. The vendor has declared liability but credit is not availed in GST returns: Such credits

should be availed at the earlier of due date of September returns or Annual returns.

2. The vendor has not declared liability on supplies made but businesses have availed credit

on such procurements in the GST returns: Businesses should follow up with the vendor to

ensure that the liability is declared. Else, risks of such credits being disallowed may arise.

3. Mismatch between liability declared by the vendor and credit availed: The reasons for

differences should be identified and reconciled appropriately (e.g.- by issuing debit

notes/credit notes, etc.) before 30 September, 2018.

4. Mistakes in the details furnished: There can be mismatch in the fields such as GSTIN of

the supplier/recipient, number and date of the invoice/debit note etc. Make amendments

in the GST returns of the month following the relevant month when mistakes were

committed.

Reconciliation under GST although seems to be a simple process due to automation but still

consumes lot of time and resources, as taxpayers are required to continuously communicate with

vendors for making amendments in the returns filed by them or even to track. It would not be

tasking for businesses having a handful of transactions to monitor. However, in case you have

thousands of invoices in a month, then even a single digit percentile will be a significant volume.

Therefore, one must reconcile the returns data on regular basis under GST.

53
GST Return filing process:

1. Upload GSTR 1

2. Auto Populated GSTR 2A based on details from GSTR 1 filed by other suppliers (GSTR

2A from GSTR 1)

3. Generate GSTR 2 by Accepting/Rejecting /Modifying details from GSTR 2A (GSTR 2

from GSTR 2A)

4. Add missing purchase invoices

5. Supplier to accept /Reject modifications in GSTR 1A

6. General Net Tax to be paid or carried forward in GSTR 3.

54
 Let me explain you this concept through a practical example:

A Ltd supplies goods to B Ltd for Rs 1000CGST thereon is, say, Rs. 180. A Ltd did notfurnish

these details in its outward supply toB Ltd. While matching the credit, B Ltdwent ahead with

credit claim and utilizedthe ITC against CGST liability.

 B Ltd. must reverse ITC and pay interest

B Ltd the recipient of supply had to pay back the credit utilised for mismatchingcredit figures,

with interest. Of late, A Ltd has corrected its returns reflecting B Ltd.’s name and interest for the

same paid by A Ltd.

 B Ltd is entitled for the credit now; it is eligible to claim back the interest paid. This

interest cannot exceed the interest paid by A Ltd.

ITC- Input Tax Credit

Input Tax Credit or ITC is the tax that a business pays on a purchase and that it can use to reduce its tax liability
when it makes a sale. ITC is the most important aspect in GST for a business to take comply and adhere with. It
gives businesses the required amount of tax benefits or tax savings on that amount on which they have actually
paid. Therefore, Accounting for ITC is of utmost important to the businesses to keep a track record, and take tax
benefits.

55
Today I reached a little late by 10 minutes, i.e., at 9:40 a.m. due to bad traffic. After coming, I

first met Mrs. Mona Mathur ma’am as ma’am has today only reached Jaipur from Chennai after

attending the Board Meeting. Mona ma’am directed me to co-ordinate with Vikalp sir, ma’am

another team member in the Accounts Department. Sir handed me over the task of Auditing

again. Sir handed me over the softcopy of the Audited Financial records for Q-4 of the year

ended 31st March, 2019. I was to find out the mismatch figures, discrepancies hidden, report the

errors to sir through my remarks, and tell the correct or at par rectification solution to the error or

discrepancies. These Q-4 results at last, should be in line or should be matching with the Audited

Consolidated Financial Statements for the year ended 31st March, 2019.

I started upon my work as soon as I received it. It was all to be done on softcopies rather than on

hardcopies, so it required more amount of focus, attention and concentration. I had to write all

my remarks, errors cited, etc. in a blank sheet of paper, and submit the paper after completion of

the whole work to Vikalp sir. This was basically my work description for the day.

Here are some highlights from my today’s work:

56
My work was to check or audit the IRDAI filed confidential statements accuracy in comparison with the CFS, find out the
errors and report them to sir with the remarks or rectifications possible, and then final correction was done by sir
himself.

I finished my work around 5:20 p.m. with my observations ready on a piece of paper containing

errors and missing items in the IRDAI documents with their possible rectifications, I handed

over that piece of paper to Vikalp sir. Sir checked my work and was quite happy in seeing that I

am learning things very fast, and doing my assigned task with very much accuracy.

Today I reached the office at around 9:40 a.m. After coming I first went to Mona Mathur

madam's cabin to meet ma’am and discuss with ma’am about the today’s agenda. Mona ma’am

was not available today, so I had to for today get my all work done with Ravi sir and Vikalp sir

in the Accounts Department. Both the sir are in the team with Mona ma’am. Sir said to me that

57
today I am on my own as sir is also busy today in some very important work. So sir said to me

that today I am free from his side means I can learn or do anything productive which I wanted to

do. I was little upset as the whole day I would be doing nothing such as corporate work. But

that’s ok. Internships practical exposure to the real world not only teaches you the academic or

career oriented things but also teaches you how to be on your own, without anyone’s support for

one day and then also learn something or do something productive with your valuable time.

So I decided to do something on my own. I surfed the internet and read many articles, blogs, etc.

about the current status or position of the General Insurance Industry in India.

After reading some of the articles I found out that our General Insurance Industry is not

performing well from past 2-3 years because of many reasons as been said by those articles, etc.

One of the major reasons which I found out on every single article which I read was ‘GST-

Goods and Services Tax’. They said that GST has raised the cost of premiums as compared to

earlier periods. Now, a straight 18% slab is been put on the insurance premium paid by the

insured. This rise in the cost to take up an insurance policy in India is pulling back the minds of

prospective and existing people who want or who regularly take up policies to mitigate the

unknown future mis-happenings. According to me, I think GST has actually put a burden on the

Insurance Industry in India.

Also, I read about the workings, functions, role, etc. of ‘Insurance Regulatory and Development

Authority of India- IRDAI’, the governing authority of the Insurance Industry in India whether

life or general insurance. I read about the efforts and future policies and programme of IRDAI to

lift-up the General Insurance Industry in India. They looked quite promising to me. Some of

them were like, reducing down the statutory compliances burden from the companies so then

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they can reduce down their costs, and parallel to this the rise in the cost of the premiums because

of GST which is not giving them ‘business’ would also get bearable to the companies due to this

act of IRDAI.

So, that’s how I spend my whole day in researching and reading, and thereby, increasing my

knowledge about the industry in which I am currently working as an intern.

 WEEK-4 (25-31st May, 2019):

Today I reached the office at around 9:30 a.m. After coming I first met Ravi sir and discussed

with sir about today’s agenda. Sir first assigned me some regular task of Audit, and asked me to

finish this work first and then he will assign me the second task of the day.

I started upon my Audit work as soon as I received it. And this work almost took my whole day

to get completed. I finished my work around 4:40 p.m. Sir said now as there is not much time

left, so you can just read and analyse our Significant Accounting Policies, concepts and

conventions as per the IndAS.

Sir provided me with a softcopy of the document.

Here is some glimpse of my work:

1. Corporate Information

Shriram General Insurance Company Limited (the “Company”) was incorporated on July 28,

2006 as a company under the Companies Act 1956 (the “Act”). The company is subsidiary of

Shriram Capital Limited. The company obtained regulatory approval to undertake General

Insurance Business on May 08, 2008 from the Insurance Regulatory and Development Authority

of India (IRDAI) and carrying on the business of General Insurance. Holding Company of the

company i.e., Shriram Capital Ltd., being NBFC is required to prepare its financial Statements in

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accordance with Indian Accounting Standards (Ind AS) notified under companies (Indian

Accounting Standards) Rules,2015 w.e.f. 1st April, 2018. Since the Holding Company is

required to prepare its Consolidated Financial Statements, these Ind AS Financial Statements are

prepared by the company solely for the purpose of Consolidation by its Holding Company and as

required by MCA vide notification no. G.S.R. 365 (E).dated 30th March, 2016.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian

Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)

Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013 (to the extent

applicable to the Insurance Company) and the provisions of IRDAI and Report of

Implementation Group on Ind AS in Insurance Sector dated 29th December, 2016. The financial

statements have been prepared under the historical cost convention, as modified by the

application of fair value measurements required or allowed by relevant Accounting Standards.

Accounting policies have been consistently applied to all periods presented, unless otherwise

stated.

3. Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial

statements are as given below. These accounting policies have been applied consistently to all

periods presented in the financial statements. The Company has elected to utilize the option

under Ind AS 101 by not applying provision of Ind AS 16 & Ind AS 38 retrospectively and

continue to use the Indian GAAP carrying amount as deemed cost under Ind AS at the date of

transition to Ind AS. Therefore, the carrying amount of property, plant and equipment,

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Investment Property and Intangible Assets as at 1 April 2017, the Company’s date of transition

to Ind AS, according to the Indian GAAP were maintained in transition to Ind AS.

4. Cash and cash equivalents

Cash and cash equivalents comprise the net amount of short-term, highly liquid investments that

are readily convertible to known amounts of cash (short-term deposits with an original maturity

of three months or less) and are subject to an insignificant risk of change in value, cheques on

hand and balance with banks. They are held for the purposes of meeting short-term cash

commitments (rather than for investment or other purposes).

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and

short- term deposits, as defined above.

5. Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises from past events whose existence will be

confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond

the control of the Company or a present obligation that is not recognized because it is not

probable that an outflow of resources will be required to settle the obligation. A contingent

liability also arises in extremely rare cases where there is a liability that cannot be recognized

because it cannot be measured reliably. The Company does not recognize a contingent liability

but discloses its existence in the financial statements.

Contingent Assets are possible assets that arise from past events and whose existence will be

continued only by occurrence or non-occurrence of one or more uncertain future events not

wholly within the control of the company. Contingent assets are disclosed in the financial

statements when inflow of economic benefits is probable on the basis of judgment of

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management. These are assessed continually to ensure that developments are appropriately

reflected in financial statements.

Source:SGI official documents and annual reports

Today I reached the office at around 9:35 a.m. After coming, I first met Mona Mathur maam and

discussed with maam about my week’s agenda as this is my last week of internship here. I

requested maam that I want to learn the more practical work in relation to GST here at SGI.

Then, maam said that as this is your last week here so make good use of it. Maam directed me to

meet Jitendra sir, Head of GST Department here at SGI. I talked to Jitendra sir, and sir told me

that he will teach me or introduce me to the world of GST.

I learnt a lot today about the basics of GST from sir, and the practical work should start from

tomorrow.

Last 3-4 days remaining of my internship and even today I reached the office around 9:45 a.m.

After coming I first met Jitendra sir-Head of GST Department. Sir said me to go to my cabin,

brush up your knowledge on the meaning of GST as sir was busy in some very important work

right now which needs to be finished. Sir said that he will give me a call after sometime, and

then we can start.

I sat in my cabin and started reading about the theoretical background of GST which is required

to do the practical work on GST like, GST Challan, GSTR-1,2,3, etc, GST Auditing, etc.

After this reading I went on reading about ‘Taxation of Insurance Businesses in India. This was a

new piece of information for me till this day. I got to know about how profits are computed in

insurance businesses in order for the tax assessment, how income tax department charges the

businesses in the insurance industry, and many more things.

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Here is some glimpse of what I read on Taxation of Insurance Business in India:

1. Current Income Tax Legislation for Life Insurance Business:

1.1 The taxation of life insurance business in India is currently governed by Section 115 B,

Section 44 and the First Schedule of the Income Tax Act, 1961. The texts of these are

reproduced herein for ready reference.

“115-B. Tax on profits and gains of life insurance business – (1) Where the total income of the

assessee includes any profits and gains from life insurance business, the income tax payable shall

be the aggregate of

i) the amount of income tax calculated on the amount of profits and gains of the life insurance

business included in the total income, at the rate of twelve and one -half per cent; and

ii) the amount of income tax with which the assessee would have been chargeable had the total

income of the assessee been reduced by the amount of profits and gains of the life insurance

business.

……”

“44. Insurance business.- Notwithstanding anything to the contrary contained in the

provisions of this Act relating to the computation of income chargeable under the head of

“Interest on securities”, “Income from house property”, “Capital gains” or “Income from

other securities”, or in Section 199 or Sections 28 to 43-B, the profits or gains of any

business of insurance, including any such business carried on by a mutual insurance

company or by a cooperative society, shall be computed in accordance with the rules

contained in the First Schedule” of the Insurance Act, 1938.

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Today I reached the office around 9:35 a.m. After coming I first met Mona Mathur ma’am to

discuss with ma’am what I have learnt till now. Ma’am asked me that have you learnt anything

new and fruitful. I answered that ma’am each and every day what I have learnt here was new for

me. During these days, I have learnt the practicality of the subjects which I have already studied

and subjects which I would be studying in my final year of graduation.

After a brief meeting with Mona maam, then I met Jitendra sir-head of GST Department. Sir said

to me that today I will teach you about the three most important returns filed here at Shriram on

regular basis. These returns are GSTR-1, 2A, 3B. Then sir taught me about the step-by-step

procedure on how these returns are filed, what are their clear meanings, which type of

individuals are required to file which type of return, their respective deadlines, etc. Then I learnt

on how to file a return on the government GST portal both through online and offline methods.

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After this, I learnt about ‘Input Tax Credit (ITC), offsetting of GST liability, etc.

In a brief if I say what I have learnt till now in GST then that will be-

o Everything about GST basics.

o All the important terms related to GST like ITC, reverse charge mechanism, etc.

o How to file returns like GSTR-1, GSTR-3B, etc.

o Treatment of ITC, Offsetting of Tax liability through IGST, CGST, SGST, etc.

, and many more concepts.

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Today I reached the office around 9:35 a.m. After coming I directly went to Jitendra sir’s cabin

(Head of GST Department) to learn new concepts and new practical workings in relation to GST.

As now only 2 days are at my disposal to learn the best things possible, so this was going to start

I had already decided that this whole week I will devote fully for learning the practicality of

GST. But sir said to me that today he is busy as the returns filing dates are coming nearby so he

has to complete that work on topmost priority. Sir said to me that for today I had to on my own

learn the specified GSTR topics which sir has told me on my own. Sir has already assigned me

with some task to be completed. It was the work to check the accuracy of the vouchers and

invoices in their original form with that on the GST portal filed, and any errors should be brought

to the notice of sir with proper rectification remarks.

So I then sat in my cabin I started off with my learning process with the help of YouTube and a

reference book as given to me by sir for learning purpose.

I also progressed with my work assigned to me. The work is on the final stage and would be

completed soon. I learnt many things today like the whole concept of ‘Reverse Charge

Mechanism’ for both Goods and Services suppliers as notified by the government, etc. Also, I

learnt about the new GSTR which will be applicable from July, 2019 onwards through the

prototype or sample as given on the GST portals which are: GST ANX-1, GST ANX-2A, etc.

They are specifically defined on turnover basis which has now been shifted to the threshold limit

of Rs. 5 crore. It is on monthly and quarterly basis as per the government guidelines and

threshold limit.

This was all for the day.

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  WEEK-5 (1-4th June, 2019):

Today is the last day of my internship. I am very happy that these past 30 days were the most

learning, experience the real corporate world & work, and testing each and every limit of my

patience and hard work kind of days. What I have learnt here I can never forget. Mona ma’am’s

guidance and Vikalp and Ravi sir’s support in the task and work assigned to me throughout my

internship period.

Going for this internship has surely developed the sense of responsibility and dedication towards

your work in the right manner. I have also learnt that what does a ‘deadline’ means at corporates

as I have now also experienced one with regards to my work here.

On the last day, I was free to do anything. Jitendra sir said till now what you have learnt in GST

is quite more than enough. Sir said to me as today is your last day here, you are free to explore

the office, and you can do what you like.

So I decided to sit with Vikalp sir and ask sir about the organization. I was curious to know about

sir’s experience here at SGI. What sir thinks about the company, how the sir has seen the

company grow as sir works in the Accounts Department, so sir must be knowing the exact

figures of growth. I received good and insightful information from sir’s views and experience

that said so much about the company.

Today,as it is a Saturday and we have a half-day here, so how the time passed on the last day,

and the clock striked 1:30 p.m. It’s time to say goodbye to the most experiencing and learn full

period of my life till date.

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Thank you Shriram, Mona ma’am, and all other respected people whole who helped, supported

and believed in me that I can do any work with self-confidence and dedication, and helping me

in developing those skills which I possess today.

Significance to the selected area:-

The work I performed during my internship period was in significance to the different branches

or types of work done in Accounting. I was working in the Accounts Department, taking all

major work like Auditing, CFS working, etc., and also working under the GST Department

learning about GST and filing of GST returns, etc. The work I did during my Internship period

has a great significance to my selected area of Accounting like the study and analysis of CFS,

Auditing of the Financial Results, etc. Over and above, I learnt GST and GST returns filing,

Challan creation, etc. in order to get an edge in the indirect taxation which is currently a hot topic

in the industry throughout the nation. I recognised the importance of those people who have the

knowledge of GST and its norms in the employment market nowadays, and this demand is going

to increase in years to come.

Achievement of the objectives:-

The achievement of the objectives was the main target of this internship and I achieved this

target to a great extent. My already existing knowledge about the Financial statements, Corporate

Governance, Accounting Policies and Principles, etc. helped me to study and analyse the

practicality of the Annual Reports and all other important financial records of the company. I

also learnt various new areas of Accounting which were Auditing, Reconciliation, etc. I learnt

various concepts related to accounting for General insurance Companies, Auditing Procedure,

etc. In the last week of my internship I even went to learn about the procedure of Indirect

Taxation, i.e., GST here at SGI. I learnt the various aspects of GST, filling of GSTR, etc.

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Learning GST was a new task for me as I have not studied this concept till now. In order to gain

the knowledge of the taxation world in India, GST was the major entry gate. I achieved the

objectives of learning something new, career-oriented, etc. during the period of my internship. At

last, these 30 days period was quite less to all but more or less my set objectives for this

internship were achieved fully.

Relevance of the internship work with courses learned:-

The internship work which I had undergone during the 30 days period had very much relevance

with the courses or subjects I have learnt through my teachers and professors guidance. Like,

studying and analysing the Significant Accounting Policies as used by Shriram was a

comfortable task for me. Reading of Annual Reports, studying the Balance Sheet, CFS, etc. is

what I have been doing since my college started. The Tally+GST Certification course which I

had undergone during my 4th semester had helped me a lot during my internship work as I had

learned the filing of GST returns, etc. Also, the corporate law which I had already studied in the

form of Companies Act, 2013. I was easily able to analyse and study how Shriram is following

with then act's rules, procedures, etc., and also side-by-side complying with the Insurance Act,

1938 and IRDAI norms. So, my internship work had quite a lot of relevance to the courses or

subjects which I have learned already, and with some courses or subjects which I will be learning

in due course.

Challenges and experience during internship:-

There was not so many challenges which I faced during my internship but some of them I can

explain like, if Ravi sir or any supervisor has assigned me with any task, they will then explain

me once, and then I am on my own to complete that task as Ravi sir has told me that everyone is

very busy right now in the office and we can't explain you each and everything in detail. You

69
have to use your knowledge and mind to complete the task. So, if I was struck in middle of any

work, then I have to only get to solve the issue because I can't ask for anyone's help at that time

as I would then disturb them. This was the only challenge which I faced during my internship

period.

My experiences of this internship were really challenging, learn full, tested my patience level,

etc. The experience of being in a corporate style culture doing the corporate work while sticking

to the deadlines, and doing my assigned task with full dedication and sincerity. This experience

was one of a lifetime experience as one student in my opinion should undergo this type of

training or internship once in their college period in order to get the knowledge of practical

aspect of those subjects which they study through books, and get the insights into the real

corporate world which they will definitely face after leaving the college one day, so this

experience will make them ready to embrace the challenges in the real world. The experience

was one of a kind which had made my whole internship period in a classroom beyond walls.

Contribution of internship towards academic and personal goal, etc.:-

The internship has contributed to a great extent to my academic and personal goals in a way like,

my academic goals were fulfilled when I applied those bookish concepts which I have studied in

college through the lectures in the real practical world. I learnt about the practical utility of those

Accounting concepts, taxation rules, and corporate law norms, etc. which I had till now only

studied as a subject. I also some new concepts and aspects of accounting, auditing and taxation

like learning of GST, how to file the returns under GST, etc. which I will be learning in my

college course in the due course of time. So, as I have learnt the practicality and the real usage of

GST knowledge now, then this will definitely help me in studying these as subjects in my

college and further higher education, and enhance my academic skills. After this internship, now

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I feel that I am equipped with all the required skills and knowledge which will help me to excel

in my college academic profile, and to meet the demands of the ever-changing corporate world.

My internship has contributed to the personal goal in a way like, I have developed more self-

confidence, importance of team and how to work in a team, my patience level has now been

increased because in some days of my internship I have waited for even the whole day in order to

meet Mona maam, and discussed with her the task. I have developed more dedication towards

my work, more sincerity and punctuality which is very much required in a person's life because

when you face the real corporate style work culture where you would be getting the assignments

where you have to compete them on strict deadlines with utmost sincerity and dedication, then

there these personal skills will definitely help me to overcome the challenges. I had already

worked under these types of conditions during my internship period and had learnt a lot. So, the

internship has helped me to achieve my personal goals in line with the academic goals to a great

extent, and this will definitely help me to bring a positive change in my career and growth

prospects, and will help me to achieve my goals and dreams.

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 Summary or Conclusion and Suggestions
Industry Overview:-

The general insurance industry in India continues to have high growth potential. Crossing the ₹

1,500 billion premium milestone, the gross direct premium (GDPI) of the industry grew from ₹

1,282.13 billion in FY2017 to ₹ 1,505.75 billion in FY2018*, a growth of 17.4%. Following

were the major developments at the industry level:

• Insurance Regulatory and Development Authority of India (“IRDAI”) issued the Motor

Insurance Service Providers (MISP) guidelines introducing uniformity in the operation,

compliance and remuneration in the industry for motor business done through the dealer channel.

An MISP can be appointed directly by the insurer or by any intermediary. The overall

remuneration to MISP has been defined as a percentage of premium.

• In the Union Budget for FY2019, the finance minister announced a National Health Protection

Scheme (NHPS) to provide insurance cover to the economically backward section of the society.

The specifics of the scheme are not yet clear. Having said that, we are confident of its positive

impact in terms of improving healthcare services for all and pushing overall health insurance

awareness and penetration levels higher. The scheme is expected to cover over 10 crore poor and

vulnerable families.

• The insurance regulator has recently published annual price revision for Motor Third Party

premium rate for FY2019. The average rate hike for the industry for FY2019 is approximately

6.1% as against average hike of 15.3% for FY2018. This could impact growth and loss ratios for

Motor Third Party segment. Having said this, the price revision in certain segments of

commercial vehicle space could also open new opportunities for growth. New vehicle sales

momentum is expected to remain robust which should drive volume growth.

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(*Source: IRDAI & GI Council)

Company Profile:

Shriram General Insurance Co. is a joint venture between Shriram Capital Ltd. and Sanlam

Limited (South Africa). We are licensed with IRDAI (Insurance Regulatory and Development

Authority of India) and preferred insurance partner of IRCTC. Shriram General Insurance offers

a wide range of general insurance solutions including Motor, Travel, Home and more that are

designed to fit every need, every minute and every situation. So, next time you are looking for an

affordable and inclusive risk cover, Insure with us and Rest Assured in life.

In today's age of consumerism, insurance requirements have expanded to keep pace with the

increasing risks. Today we have wide assortment of risk coverage commencing from ransom to

wedding, shops to assets, travel to vehicles etc... General Insurance companies have willingly

catered to these increasing demands and have offered plethora of insurance covers that almost

cover anything and everything under the sun.

Hence foreseeing the General Insurance business as a Sunrise Industry, Shriram Group has

entered into this business and as a result Shriram General Insurance came into existence. Upto

Sept 2012 it was a 74:26 Joint Venture between Shriram Capital Ltd. and Sanlam Limited (South

Africa). SANLAM is a leading Financial Services Group of South Africa with a market

capitalization of more than $6 billion, established in 1918 and the Group demutualized in 1998.

SANTAM is a part of Sanlam Limited, which is engaged in short-term insurance cluster and is

the leading short-term insurance company in South Africa. Since September 2012, the stake of

73
Sanlam Limited (South Africa) has been transferred to Shriram Capital Ltd. The overall team of

SGI includes young and vibrant senior executives of insurance domain to handle Underwriting

and Claim matters.

The business philosophy of Shriram General Insurance is to serve the largest number of common

people ("AamAdmi"). The Group's continued focus on addressing customer needs, nurturing

talent and bringing a home grown technology platform while delivering to the underserved

segments of the economy, has ensured strong growth & sustainability for over 3 decades. The

Group's vision is serving to the underserved and creating value at the bottom of the Pyramid.

SGI is redefining the service parameters of General Insurance Industry by ensuring that each

employee understands the Slogan "BE INSURED... REST ASSURED" in its spirit and the

customer has an overall pleasant experience. The company is giving special attention to the

innovative products and application of latest IT developments in its operations.

SGI has been awarded "Excellence In Growth Award" for 2 consecutive years (2011 & 2012)

Thus, SGI is all set to become the FIRST CHOICE General Insurance Company of India.

The problem with the organization which I felt that it was that the employees are sometimes not

serious towards their work. If someday any authority like Mona maam is not present, so

everybody is so chill that they don't even bother to complete the work. One more problem that I

felt was that the top management didn't follow the 'Open Door Policy' even at a smaller stage.

Every information which is supposed to be urgent has to pass through the whole channel of

hierarchy to get the approval of the top management. Not following the open door policy has in

74
my opinion significantly affected the effectiveness and efficiency of the organization as well as

the employees.

The company has the opportunity to grow even further as because of its policies, the best-in-

business insurance products, young and skilled pool of talent, technological up gradation, etc.

The financial record of the company says its growth. In the year 2017-18, it has collected a total

of Rs. 2103 crores as Gross Premium which is on a continuous growth from many years which is

definitely the reason of its above advantages which makes it one of the best companies in the

General Insurance industry in India.

The key or major part of the report is the 'Description of Internship Work' which highlights

about everything in relation to each and every day of my internship period. This range from my

daily assigned task to my opinion of each and every single day.

Suggestion to the organisation:-

The problem that I felt was that the top management didn't follow the 'Open Door Policy' even at

a smaller stage. Every information which is supposed to be urgent has to pass through the whole

channel of hierarchy to get the approval of the top management. Not following the open door

policy has in my opinion significantly affected the effectiveness and efficiency of the

organization as well as the employees. So, following the 'Open Door Policy' is my suggestion to

the organisation so that the timely decision can be taken which are in interest or betterment of the

organisation.

Findings and Solutions relevant to report:-

One key finding which that ‘Shriram’ is has a well-established brand name in India. They do

everything in order to keep this brand name always on top in the insurance industry in India. One

75
of the supervisors was telling me that in the year 2016, IRDAI has put a penalty on Shriram

General Insurance Co. Ltd. because of selling unauthorized insurance products at discounted

premium. They were fined Rs. 15 lakhs for this. Sir said this was not the first time when SGI was

in the news. IRDAI has warned the organisation 2-3 times before also because of the same issue

conducted in 2016.

There was in my opinion only one major problem with the organisation for which I had already

suggested a solution above which is 'Open Door Policy'. Rest all they are working upon and have

great future growth prospects and opportunities lined-up for the organisation.

This was my first internship in a company with full-time office. The work which I did during the

internship helped to learn a lot new things. This was an enriching experience as I got to know

that what we read in the classrooms will always help you in comprehending the practical works

of the corporates. Overall the experience that I got from the internship will always be helpful in

my future. And I also hope that what I learnt during the period of one month would help me to

develop my personality. I learnt various new concepts and their practical use.

I was extremely fortunate to get anopportunity to intern under CFO Mrs. Mona Mathur ma’am as

my supervisor and guide. It will definitely enrich my skills and knowledge about the corporate

style culture and academic knowledge to achieve my targets and career goals.

76
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content/uploads/2018/01/Final_Accounts_of_General_Insurance_Companies.pdf

o https://cleartax.in/s/guide-to-gstr1-filing

o https://cleartax.in/s/gst-quarterly-returns

o http://www.rcjainca.com/Image/Statutory-Audit-of-General-Insurance-Companies-

Final.pdf

o https://cleartax.in/s/gst-reconciliation

o https://cleartax.in/s/gst-accounting-entries

o https://cleartax.in/s/what-is-input-credit-and-how-to-claim-it

o https://www.pwc.in/tax-and-regulatory-services/tax-technology/the-current-scenario.html

o https://thethrivingsmallbusiness.com/internal-audit-process-why-every-organization-

should-audit-themselves/

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documents of the company and the parent or group company.

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78