TRANSRAIL LIGHTING LIMITED

A
Summer Internship Project
On
A Study of Basic Accounting & Taxes
Of Transrail Lighting Limited, Deoli Wardha

Submitted to
Mr. Monojit Moharil
HR- Sr.Manager TLL Deoli

Submitted by
Miss. Priya S. Mahajan
MBA(Finance)BDCE

Under the Guidance Of

Dr. S. B. Diwate
MBA (BDCE) WARDHA
Company Guide: - Mr. C. Dilip Kumar (Senior Manager)Account

BAPURAO DESHMUKH COLLEGE OF ENGINEERING

SEWAGRAM, WARDHA
Period of SIP :-
 Department of Business Management

Certificate

This is to certify that Miss. Priya S. Mahajan is a bonafide student of MBA

Semester IIlBapurao Deshmukh College Of Engineering, Sewagram Wardha.For
the academic session 2017-2019 has completed his Summer Internship Programme
entitled “ A Study of Basic Accounting & Taxes” of “ Transrail Lighting
limited” Deoli under the guidance of Dr. S.B.Diwate.
This is bonafide work done by her in she session towards the fulfillment of
requirement for the degree of Master of Business Administration by Rashtrasant
Tukodoji Maharaj Nagpur University, Nagpur.

Dr. R. O. Pancharia Dr. S. B. Diwate

HOD-MBA (BDCE) WARDHA College Guide,WARDHA

Mr. C. Dilip Kumar Mr. Manojit Moharil

Senior Manager(Accounts) HR- Manager
TLL, Deoli. TLL, Deoli.
 ACKNOWLEDGEMENT

First and foremost, I would like to express my sincere thanks and gratitude to
TRANSRAIL LIGHTING LIMITED, DEOLI. for giving us the opportunity to
undergo this project. Wewish to express my sincere and grateful thanks to the
people who helped and extended theirsupport in this endeavor.
I would like to thank Mr. Manojit Moharil HR-Manager, TLL&Mr. C. Dilip
KumarSenior Manager(Accounts) TLL, Deoli for his support from time to time
and forproviding the necessary resources for the timely completion of the project.
Thanks for providing the chance to intern in your company, which helps me to
upgrade my Knowledge , skill and attitude.

THANK YOU
 INDEX

Sr.No. Contents PageNo.

1. IntroductionofTopic/Theoreticalbackground

1.1BasicAccounting 6

1.2 JobWork 9

1.3 GoodsandServicesTax(India) 11

2 CompanyProfile 14

3 Conclusion 17

4 Objective&Learning 18
1:- Introduction/Theoretical Background

1.1:- Basic Accounting

Accounting or accountancy is the measurement, processing and communication of
financial information about economic entities such as businesses and corporations.
The modern field was established by the Italian mathematician “Luca Pacioli” in
1494. Accounting, which has been called the "language of business" measures the
results of an organization's economic activities and conveys this information to a
variety of users, including investors, creditors, management, and regulators.
Practitioners of accounting are known as accountants. The terms "accounting" and
"financial reporting" are often used as synonyms.
Accounting can be divided into several fields including financial accounting,
management accounting, external auditing, tax accounting and cost accounting.
Accounting information systems are designed to support accounting functions and
related activities. Financial accounting focuses on the reporting of an organization's
financial information, including the preparation of financial statements, to external
users of the information, such as investors, regulators and suppliers; and
management accounting focuses on the measurement, analysis and reporting of
information for internal use by management. The recording of financial
transactions, so that summaries of the financials may be presented in financial
reports, is known as bookkeeping, of which double-entry bookkeeping is the most
common system.
Accounting is facilitated by accounting organizations such as standard-setters,
accounting firms and professional bodies. Financial statements are usually audited
by accounting firms, and are prepared in accordance with Generally Accepted
Accounting Principles (GAAP). GAAP is set by various standard-setting
organizations such as the Financial Accounting Standards Board (FASB) in the
United States and the Financial Reporting Council in the United Kingdom. As of
2012, "all major economies" have plans to converge towards or adopt the
International Financial Reporting Standards (IFRS).

Financial accounting
Financial accounting focuses on the reporting of an organization's financial
information to external users of the information, such as investors, potential
investors and creditors. It calculates and records business transactions and prepares
financial statements for the external users in accordance with generally accepted
accounting principles (GAAP). GAAP, in turn, arises from the wide agreement
between accounting theory and practice, and change over time to meet the needs of
decision-makers.
Financial accounting produces past-oriented reports—for example the financial
statements prepared in 2006 reports on performance in 2005—on an annual or
quarterly basis, generally about the organization as a whole.
This branch of accounting is also studied as part of the board exams for qualifying
as an actuary. It is interesting to note that these two professionals, accountants and
actuaries, have created a culture of being archrivals.

Management accounting
Management accounting focuses on the measurement, analysis and reporting of
information that can help managers in making decisions to fulfill the goals of an
organization. In management accounting, internal measures and reports are based
on cost-benefit analysis, and are not required to follow the generally accepted
accounting principle (GAAP). In 2014 CIMA created the Global Management
Accounting Principles (GMAPs). The result of research from across 20 countries
in five continents, the principles aim to guide best practice in the discipline.
Management accounting produces future-oriented reports—for example the budget
for 2006 is prepared in 2005—and the time span of reports varies widely. Such
reports may include both financial and non financial information, and may, for
example, focus on specific products and departments.
Auditing
Auditing is the verification of assertions made by others regarding a payoff, [31]
and in the context of accounting it is the "unbiased examination and evaluation of
the financial statements of an organization".
An audit of financial statements aims to express or disclaim an opinion on the
financial statements. The auditor expresses an opinion on the fairness with which
the financial statements presents the financial position, results of operations, and
cash flows of an entity, in accordance with the generally acceptable accounting
principle (GAAP) and "in all material respects". An auditor is also required to
identify circumstances in which the generally acceptable accounting principles
(GAAP) have not been consistently observed.

Accounting information systems

An accounting information system is a part of an organization’s information
system that focuses on processing accounting data.

Tax accounting
Tax accounting in the United States concentrates on the preparation, analysis and
presentation of tax payments and tax returns. Tax accounting consists of
accounting method that focus on taxes rather that the appearance of public
financial statements. Tax accounting is governed by the internal revenue code
which dictates the specific rules that companies and individual must follow when
preparing their tax returns. Tax principles often differ from generally accepted
accounting principles.

What is Tax?
A tax (from the Latin taxo) is a financial charge or other levy imposed upon a
taxpayer (an individual or legal entity) by a state or the functional equivalent of a
state to fund various public expenditures. A failure to pay, or evasion of or
resistance to taxation, is usually punishable by law. Taxes consist of direct or
indirect taxes and may be paid in money or as its labour equivalent. Most countries
have a tax system in place to pay for public/common/agreed national needs and
government functions: some levy a flat percentage rate of taxation on personal
annual income, some on a scale based on annual income amounts, and some
countries impose almost no taxation at all, or a very low tax rate for a certain area
of taxation. Some countries charge a tax both on corporate income and dividends;
this is often referred to as double taxation as the individual shareholder(s)
receiving this payment from the company will also be levied some tax on that
personal income

1.2 :- Job Work

Meaning
Job work is defined
Explanation I. - For the purposes of this notification, the expression "job work"
means processing or working upon of raw materials or semi-finished goods
supplied to the job worker/ so as to complete a part or whole of the process
resulting in the manufacture or finishing of an article or any operation which is
essential for the aforesaid process.
And under Rule 2(n) of the Cenvat Credit Rules, 2004
"Job work" means processing or working upon of raw material or semi-finished
goods supplied to the job worker, so as to complete a part or whole of the process
resulting in the manufacture or finishing of an article or any operation which is
essential for aforesaid process and the expression "job worker" shall be construed
accordingly.

Understanding Job Work

Manufactures today are operating in competitive business environment. These
manufacturing units are now focusing on their core products and most of the work
is outsourced from outsider or Job Workers. While such practices ensure cost
efficient products at the same time accelerates the production cycle.
Job work is understood as the processing or working on goods supplied by the
principal to complete a part or whole of the process. The work may be in the initial
process, intermediate process, assembly, packing or any other completion process.
The goods sent for job work maybe raw material, component parts, and semi
finished goods and even finished goods. The resultant goods could also be a
variation of the same or the complete product.
Tax Liability under Current Regime
In case, if the process undertaken by the job worker amounts to
manufacture/deemed manufacture, the job worker would be liable to pay the duty
of excise on the goods so manufactured. However, the principal manufacturer who
has supplied the goods for job work may furnish a declaration based on which job
worker would not be required to charge duty of excise. This declaration exempts
goods manufactured by a job worker from the duty of excise as per notified
provision. This declaration also puts certain condition on principal manufacturer
which are:
1. The goods must be used in manufacturing process by principal manufacturer,
and
2. It should result in a dutiable product on which duty of excise can be charged.
The activity undertaken by job worker would not be liable to service tax as well
because process amounting to manufacture or production of goods is covered by
the Negative list of Services Tax.
Tax Liability under GST Regime
Model GST law has come up with exclusive provisions on Job Work and related
activities. These provisions are very much in line with the existing law. GST law
allows principal to send taxable goods, without payment of tax, to a job worker.
There can be further movement of such goods from one job worker to another.
However such goods must be brought back to principal’s place of business and
must be removed after payment of tax thereon.
In simple words, a principal can remove goods without payment of tax, provided
such goods are sent for job work and intended to bring back for a taxable supply.
Such removal of goods is allowed only on declaration basis.
1.3 :- Goods and Services Tax (India)

Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes
levied by the central and state governments. It was introduced as The Constitution
(One Hundred and Twenty Second Amendment) Act 2016, following the passage
of Constitution 122nd Amendment Bill. The GST is governed by GST Council and
its Chairman is Union Finance Minister of India - Arun Jaitley.
Introduction of Goods and Services Tax (GST) is a step in the reform of indirect
taxation in India. Amalgamating several Central and State taxes into a single tax
would mitigate crusading or double taxation, defoliating a common national
market. The simplicity of the tax should lead to easier administration and
enforcement. From the consumer point of view, the biggest advantage would be in
terms of a reduction in the overall tax burden on goods, which is currently
estimated at 25%-30%, free movement of goods from one state to another without
stopping at state borders for hours for payment of state tax or entry tax and
reduction in paperwork to a large extent.
History
Tax Regime in India
The reform process in indirect tax regime of India was started in 1986 by
Vishwanath Pratap Singh by introduction of Modified Value Added Tax
(MODVAT). Goods and services tax (GST) will subsume various indirect taxes
including central excise duty, services tax, additional customs duty, surcharges,
state-level value added tax and Octroi. Other levies which are currently applicable
on inter-state transportation of goods are also likely to be done away with in GST
regime.
The following taxes will be bound together by the GST:
• Central Excise Duty
• Service Tax
• Commercial Tax
• Value Added Tax (VAT)
• Food Tax
• Central Sales Tax (CST)
• Octroi
• Entertainment Tax
• Entry Tax
• Purchase Tax
• Luxury Tax
• Advertisement taxes
• Taxes applicable on lotteries
GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or
import of goods and/or services. India will adopt a dual GST model, meaning that
taxation is administered by both the Union and State Governments which means
that the common people have to suffer a lot. Transactions made within a single
state will be levied with Central GST (CGST) by the Central Government and
State GST (SGST) by the government of that state. For inter-state transactions and
imported goods or services, an Integrated GST (IGST) is levied by the Central
Government. GST is a consumption based tax, therefore, taxes are paid to the state
which the goods or services are consumed not the state in which they were
produced. IGST complicates tax collection for State Governments by disabling
them to collect the tax owed to them directly from the Central Government. Under
the previous system, a state would have to only deal with a single government in
order to collect tax revenue.
Effects
The tax rate under GST may be nominal or zero rated for the time its charged. It
has been proposed to insulate the revenues of the States from the impact of GST,
with the expectation that in due course, GST will be levied on petroleum and
petroleum products. The central government has assured states of compensation for
any revenue losses incurred by them from the date of introduction of GST for a
period of five years.
Legislation
The goods and services tax (GST) council chaired by finance minister Arun Jaitley
has urged states to approve state GST laws by the end of May to smoothen the roll-
out of the historic tax reform by its target date of 1 July.
As India is a federal republic, GST would be implemented concurrently by the
central governments. A 21-member select committee was formed to look into the
proposed GST law.
Section 9 is the charging section for CGST (Central Goods and Services Tax Act,
2017), which gives power to central government to levy tax on intra state taxable
supply.
There will be no GST on the sale and purchase of securities. That will continue to
be governed by Securities Transaction Tax (STT).
GSTN
Goods and Services Tax Network (GSTN) is a nonprofit organization formed to
create a platform for all the concerned parties i.e. stakeholders, government,
taxpayers to collaborate on a single portal. The portal will be accessible to the
central government which will track down every transaction on its end while the
taxpayers will be having a vast service to return file their taxes and maintain the
details. The IT network will be developed by private firms which are being in tie
up with the central government and will be having stakes accordingly. The known
authorized capital of GSTN is ₹10 crore (US$1.6 million) in which Central
Government holds 24.5 percent of shares while the state government holds 24.5
percent and rest with private banking firms
 Company Profile
Transrail Lighting Limited (TLL), pole division undertakes design, manufacturing,
testing, installation and supply of Engineered Galvanized Steel poles for
Transmission & Distribution Monopoles, Street Light poles, High Mast, Stadium
Mast, Telecom Monopoles, Swaged poles etc. along with the luminaries.
We have in-house design, pole manufacturing capacity of 40,000 MT per annum
which is being handled by large pool of competent managerial & supervisory
personnel.
Technological and design excellence, and a discerning eye for quality and safety
are some of the characteristics that distinguish TLL's tradition for perfection in its
areas of operation. We are only Indian pole manufacturing company which is
certified for CE Marking (quality certification required in European Market) apart
from being an ISO 9001:2008, 14001:2004 & OHSAS 18001:2007 & Gammon
Testing Center ISO/IE17025:2005 Ccertified company.
Supplied poles to overseas countries viz, Zambia, Mozambique, Benin, Ethiopia,
Rawanda, Ghana, UAE, Qatar.
Stadium mast to Pallakele Cricket Stadium, Candy, Srilanka, Subroto Roy Sahara
Stadium, Pune, Dhabel Cricket Stadium, Daman, Adani Shantigram Sports
Complex : Cricket, Football & Golf Driving Range, Greater Noida Industrial
Development Authority Cricket Stadium, Greater Noida, Various Stadium for
Punjab Mandi Boards.
Stack Chimney structure to Refineries BPCL, ONGC, and Reliance.
Mission

TobeoneoftheglobalplayersinGalvanizedSteelPolemanufacturingforPower&Teleco
mmunication&toberecognizedasarespected&professionallymanagedcompany.
Ourstate-of-the-
arttowertestingfacilityatDeoli,WardhaisfullyautomaticwithSupervisoryControl&Da
taAcquisition(SCADA)softwaretechnologyandcantesttowersupto1200kVtowers.Th
etestingstationhasbeenaccorded"RecognitionofIN-
HOUSER&Dcentre"byGovernmentofIndia,MinistryofScienceandTechnology.
TowersuppliedtoNorthAmerica,Africa,andMiddleEast&SouthEastAsiaRegion.
WehavefootprintinIndia,Afghanistan,Algeria,Bhutan,Botswana,Canada,Ethiopia,G
hana,Kenya,Mozambique,Nepal,Nigeria,Oman,Srilanka,Tanzaniaetc.

Vision

Tobepreferredglobalplayer&leaderinIndiaindesign,manufacture&supplyofgalvaniz
edsteelpolewithasustainedfocusonattributesofsustainability&profitability&Employ
eeengagement&pride.
Key Knowledge about the company
Transrail Lighting Limited is a tower manufacturing company. It is linked the
power grid corporation of India and Adani power ltd. Central store and R&D is a
part of Gammon Ltd. Factory comes in Transrail Lighting ltd. This company has
assigned the various cost center code and profit center code, as follows. This
company is using a SAP Software application program technology for accounting
as well as for other purpose.
Name of Company: - TRANSRAIL LIGHTING LIMITED
GSTIN: - 27AACCT8765G1ZX
PAN No:- AACCT8765G

Knowledge about cost and profit center code

Profit center code Cost center code

Research & Development
1) R &D 4310 -
2) Guest House 43010100
43010110
Central store 2514 25140100
Factory 2810
1) Galvanizing 2810110
2) Fabrication 2810100
3) General 2810120

CONCLUSION

After complete my industrial training, I had been exposed to a finance executive

and financial analyst working. Throughout my internship I could understand more
about the definition of finance and financial planning and prepare myself to
become a responsible and innovative technician and financial manager in future.
Along my training period I realized that observation is a main element to find out
the root cause of a problem. Not only for my internship report but daily activities
too.
Following are some conclusion that very useful and important in organization.
1. Critical , analytical and positive thinking
2. Time management
3. Hard work for Goal achievement
4. Smart work
 Objective

For the future opportunity, I am very early waiting for knowledge source and
TLL is the main source in my point of view.
The reason I choose to follow TLL Internship because I wanted to get
benefit for my self-development through the practical experiences. I would like to
improve and develop new sets of skills and ready to face new Challenges. During
my internship as major competencies are central working as an intern, performing
duties and activities very sincerely for a great and successful career

Learning

The report represents the Following Completed during Summer Internship At TL

Ltd which is Listed below:-

Check & correct the supporting documents.

1. Key knowledge about the company.

2. Knowledge about taxes (Job work, GST)
3. Data entry of sales and purchase bill.
4. Analysis of petty cash statement & classification in various general expenses
ledger.
 5. Knowledge about cost center code and profit center code.
6. Analysis of bills of contractor

DECLARATION

I,MissPriyaS.Mahajan
herebydeclarethattheworkpresentedinthisSummerInternshipreporthasbeencar
riedoutbymeasbonafidestudentoftheDepartmentofManagementstudies,BapuraoDes
hmukhCollegeOfEngineering,SewagramWardhaOfRashtrasantTukodojiMaharajNa
gpurUniversity,Nagpurduringtheacademicsession2017-2019

IherebydeclarethatthisSummerInternshipreportentitled,“AStudyofBasicAccounting
&Taxes”ofTransrailLightingLimited.Deoliisbonafideandauthenticrecordofworkdon
ebymeundersupervisionofDr.S.B.Diwate(BDCE),WARDHAduringM.B.ASemeste
r-III.

Thisworkpresentedhereisoriginalandnotduplicatefromothersource&alsonotsubmitte
dearlierforanyotherdegree/diplomatoanyuniversity.

Miss. Priya S. Mahajan

Date:- M.B.A.Semester-IIl
Place:- (BDCE)Wardha