Professional Documents
Culture Documents
Accounts and Finance Project
Accounts and Finance Project
REPORT ON
(RISHIKESH)
1
INTRODUCTION OF THE
ORGANIZATION’S BUSINESS SECTORS
2
MISSION & VISION
Mission of ICAI
Vision of ICAI
3
ORGANISATIONAL STRUCTURE
2. PWC: -
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3. KPMG: -
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5. BDO International: -
BDO International stands at the fifth rank for providing the largest
accountancy network in the world.
It is a worldwide professional services network and one of the best
public accountancy firms. It has its competency is in serving national
and international clients.
Following a survey conducted in 2014, September, BDO has its
Member Firms in 151 countries and takes pride in employing around
60,000 Partners and staff in 1,328 offices throughout the world.
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7. RSM International: -
RSM ranks the 7th largest among the professional services network for
audit, tax and advisory firms. It takes pride in holding the 6th rank as
the largest global provider of tax services in the world.
It has its fully independent member firms and correspondents in 111
countries surveyed, September 2014. The member firms of RSM
International have a combined total of 35,396 staff which includes
3,221 partners in 718 offices.
Three of the original member firms of the organization are Robson
Rhodes (UK), Salustro Reydel (France) and RSM
McGladrey/McGladrey & Pullen (USA).
The best thing about this Firm is that it has over 55 years in existence.
SS Kothari has been one of the highly reputed firms in Delhi and has
its branches in 100 other countries.
It has created a strong National presence through a network creation of
6 offices and 20 associates which covers almost all the regions of the
Country. With a combination of Partners and Associates, it has covered
almost all the parts of the country.
It offers services in BPO, Tax Advisory Services, Merger and
Acquisition, Statutory Audit Services, Corporate Laws and other
different areas.
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9. Lodha & Co.: -
This is also a vintage firm set up in 1941 and has its offices all over
India. They operate in locations like Kolkata (Calcutta), Chennai
(Madras), Hyderabad, Mumbai (Bombay), New Delhi and Jaipur.
Lodha & Co. has proficiency in providing professional services to a
large number of corporate clients, central banks, banks, insurance
companies, public sector corporations etc. They operate both in India
and Internationally.
SNB is a national Indian firm which is based in Delhi and provides its
services in the field of audit, consulting, accounting and allied areas. It
was established in 1981 and is one of the leading Firms in India having
its Headquarters in New Delhi and branch offices in Bangalore and
Mumbai.
The Firm has kept its Aim for providing services of the highest quality,
resulting in the addition of value to each of its clients in a totally
professional, independent and ethical manner.
It is known for providing services in various areas like Taxation,
Auditing and Internal Audit, Corporate Laws and several other services
relating to services.
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11. Luthra & Luthra: -
Luthra & Luthra is a Delhi-based firm having six other partners. The
Firm was established in 1979.
It has been one of the most leading firms in India and has been providing
its services in audit, advisory, tax and corporate law matters. It is
bound to provide high-end services to its clients.
This firm is known for providing its service in different fields like
Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI
related services in cooperation with 18 highly qualified personnel.
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COMPETITION OVERVIEW OF CA FIRMS
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CHAPTER 2
COMPANY PROFILE
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ABOUT THE COMPANY
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DEPARTMENTS OF CA COMPANY
Shekhar CA & Co. is having its head office in Rishikesh. Almost all the
controls and regulations are dealt at head office in Rishikesh. All the
offices constitute different number of departments who basically handle
their respective functions. The major departments include:
Audit and Assurance Department: -
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Tax and Corporate Department: -
In Shekhar CA & Co. same staff is handling with tax matters as well as
corporate sector. While in corporate firm provides different kinds of
services relating to corporate sector from incorporation to winding up
of a Company.
Computer Department: -
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Correspondence Department: -
HR Department: -
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CORPORATE SERVICES
Incorporation of company
Clause 49 review for compliance with fiscal, corporate and tax laws
17
SERVICES OFFERING
Company Registration: -
LLP Registration: -
GST Registration: -
Project Financing: -
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ROC Filing: -
GST Return: -
TDS Return: -
Income tax act requires TDS (Tax Deducted at Source) deduction file
the TDS return on periodic basis by mentioning TAN No.
Income tax return of salaried employee can be filed with help of Form
16 & Form 16A. Form 26 AS will help you in getting information about
TDS on salary. Experienced CA firm can help you for better tax
planning and reduce the TDS.
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Tally Accounting: -
Statutory Audit: -
Get the statutory audit of your company under Companies Act from
experienced CA firms. Statutory Audit is compulsory for any type of
company.
Tax Audit: -
Internal Audit: -
20
AUDIT
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CHAPTER 3
CONCEPTUAL DISCUSSION
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OBJECTIVES OF STUDY
I choose to work with Shekhar CA & Co. During this internship I have
learnt many new skills. Before internship I have only theoretical
knowledge about work in organization but now I have practical some
practical experience of working in organization. Now I have knowledge
about the organization’s working environment and how organizations
work and achieve their goals and objectives.
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JOB DESCRIPTION
Vouching
Preparing books of accounts in tally
Voucher Entry
Preparing Data in Excel Sheet
Preparing Partnership Deed
Intangible Assets
Prepare Projected and other Balance Sheet
Auditing
Taxation
Theoretical learning of different type of Taxation and GST
Maintenance of accounts/ book keeping.
TDS return preparation.
MS office
Tally software
25
Overview of TDS
Tax deducted at source (TDS) is a tax that is deducted from income that
a company in India pays to a recipient or supplier if the income amount
exceeds a specific statutory limit in a financial year. The types of
income that are subject to TDS include:
Salary
Interest and dividends.
Winnings from the lottery.
Insurance commission.
Rent.
Fees from professional and technical services.
Payments to contractors and subcontractors.
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TDS RETURNS: -
All income is taxable only at the end of the financial year, hence the
government has instituted the concept of TDS, in order to ensure:
27
PROCESS FLOW OF TDS: -
This process flow shows the steps to charge and remit TDS: -
Update Challan
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Overview of VOUCHING
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PREPARATION ON BOOKS ON TALLY
VOUCHER ENTRY: -
Tally provides flexibility to use predefined voucher types, comprising
of accounting and inventory voucher types to record various business
transactions. It also allows you to use Keyboard Shortcut Keys as well
as mouse operations during voucher entry.
To create a new Voucher Type,
Go to Gateway of Tally > Accounts Info. > Voucher Type > Create
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PREPARATION OF PARTNERSHIP DEED
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Sign the application: - The application or statement must be
signed by all the partners, or by their agents especially authorised in
this behalf.
Expect the registration process to proceed formally: -
When the registrar is satisfied with the points stated in the partnership
deed, he or she shall record an entry of the statement in a register
called the Register of Firms and issue a Certificate of Registration.
The Register of Firms maintained at the office of the Registrar
contains complete and up-to-date information about each registered
firm.
This Register of Firms is open to inspection by any person on
payment of the prescribed fees; any person interested in
viewing the details of any firm can request the Registrar of
Firms for the same and on payment of the prescribed fees, a
copy of all details of the firm registered with the Registrar will
be given to the applicant.
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Overview of VAT
At the end of the month or each quarter, you file a VAT return with the
tax office, and remit the VAT due.
Prerequisites
You have carried out the activities described in closing for VAT.
Process
1. You prepare a copy of the sales ledger and the purchase ledger.
The ledgers show the invoices that have been p aid a n d on
which VAT i s thus due. The ledgers are for your own
reference in the event of a check-up by the tax office.
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Computer online software
A Solution For
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Features
Q.What is VAT?
Every commodity passes through different stages of production and
distribution before finally reaching the consumer. Some value is added
at each stage of the production and distribution chain: for instance, a
forged metal tool is more valuable than metal, which was itself more
valuable than the ore that was originally mined. Value Added Tax
(VAT) is a tax on this value addition at each stage.
Under a VAT system, a dealer collects tax on his sales, retains the tax
paid on his purchase and pays the balance to the government. It is a
consumption tax, because it is borne ultimately by the final consumer.
The tax paid by the dealer is passed on to the buyer. It is not a charge
on the dealer. VAT is instead a multipoint tax system with provision for
collection of tax paid on purchases at each point of sale.
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Q.What is Output Tax?
Output tax is VAT charged to the customer by a dealer making taxable
sales. A dealer is an individual, partnership, or business that is
registered under VAT. Any person or business making sales above the
prescribed limit are required to register. When a dealer is registered,
VAT becomes chargeable on all taxable sales made by that dealer.
VAT Computation
A dealer pays VAT by deducting the tax paid on purchases (input tax)
from his tax collected on sales (output tax).
VAT has fewer rates, as opposed to the high number of rates for Sales
Tax, and allows offsets of tax on inputs against those on outputs. VAT
also does away with the tax on tax.
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Q.Who will be covered by VAT?
39
Overview of Tally ERP 9
Journal Entry
Journal Vouchers are used to adjust the debit and credit amounts
without involving the cash or bank accounts. Hence, they are referred
to as adjustment entries.
40
SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher
type, irrespective of the ledger.
Journals are adjustment entries, which do not involve Cash account and
Bank account. However, in exceptional cases where the user would like
to account Journal entries involving Cash/Bank Account, Tally.ERP 9
has the flexibility of passing such entries by enabling the option under
F12 configuration.
To enable Cash Accounts in Journal voucher,
Set Allow Cash Accounts in Journals to Yes in F12: Configure
(Voucher Entry Configuration).
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To pass a Journal voucher with Cash/Bank Ledger,
1. Go to Gateway of Tally > Accounting Vouchers > Select F7:
Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will
appear as shown:
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Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Purchase Returns, Escalation/De-
escalation in price, any other expenses incurred by you on behalf of
the party etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory
features.
· To use it in Voucher mode you need to enable the feature in F11:
Accounting Features - Use Debit / Credit Notes.
· To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.
To go to Debit Note Entry Screen,
Go to Gateway of Tally > Accounting Vouchers
· Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for the goods purchased returned to Supplier
A:
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SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
2. CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.
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SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
· 1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
·
· 2. CTRL+R: Recalls the Last n a r r a t i o n s a v e d f o r a specific
voucher type, irrespective of the ledger.
·
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AS-26 INTANGIBLE ASSETS
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OVERVIEW ON AUDITING
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Auditing Standards
There are four main steps in the auditing process. The first one is to
define the auditor’s role and the terms of engagement which is usually
in the form of a letter which is duly signed by the client.
The second step is to plan the audit which would include details of
deadlines and the departments the auditor would cover.
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The next important step is compiling the information from the audit.
When an auditor audits the accounts or inspects key financial
statements of a company, the findings are usually put out in a report
or compiled in a systematic manner.
Audit Planning
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OVERVIEW ON GST
What is GST?
So, before Goods and Service Tax, the pattern of tax levy was as
follows:
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Under the GST regime, the tax is levied at every point of sale. In the
case of intra-state sales, Central GST and State GST are charged. Inter-
state sales are chargeable to Integrated GST.
Now let us try to understand the definition of Goods and Service Tax –
“GST is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.”
Multi-stage
There are multiple change-of-hands an item goes through along its
supply chain: from manufacture to final sale to the consumer.
Let us consider the following case:
• Purchase of raw materials
• Production or manufacture
• Warehousing of finished goods
• Sale to wholesaler
• Sale of the product to the retailer
• Sale to the end consumer
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Value Addition
The manufacturer who makes biscuits buys flour, sugar and other
material. The value of the inputs increases when the sugar and flour are
mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing agent who
packs large quantities of biscuits and labels it. That is another addition
of value after which the warehouse sells it to the retailer.
GST is levied on these value additions i.e. the monetary value added at
each stage to achieve the final sale to the end customer.
Destination Based
Consider goods manufactured in Maharashtra and are sold to the final
consumer in Karnataka. Since Goods & Service Tax is levied at the
point of consumption. So, the entire tax revenue will go to Karnataka
and not Maharashtra.
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Advantages of GST
GST has mainly removed the Cascading effect on the sale of goods
and services. Removal of cascading effect has impacted the cost of
goods. Since the GST regime eliminates the tax on tax, the cost of
goods decreases. GST is also mainly technologically driven. All
activities like registration, return filing, application for refund and
response to notice needs to be done online on the GST Portal; this
accelerates the processes.
Components of GST
There are 3 taxes applicable under this system: CGST, SGST & IGST.
• CGST: Collected by the Central Government on an intra-state sale
Types of Taxes
Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly
by you, such as the dreaded income tax, wealth tax, corporate tax etc.
while others are indirect taxes, such as GST.
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CHAPTER 4
WORK & RESEARCH
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Description of process followed to accomplished the assigned
task in the organization
Tally Entries
Following process are followed for accomplishment this task:
• Firstly, we review all records of vouchers carefully, that no any
vouchers had any queries related to adjustments.
• Then, we make a separate folder for that work.
• Then, we create a company in Tally software by that company name
and started doing entries.
• Receipts & Payment entries are posted carefully as it carries some
contra entries also.
• Then after completing entries posting recheck the data by Balance
sheet, Trial balances & Day book.
• Any queries related to this work communicated to our external
mentor.
Auditing
These steps were followed by us in auditing:
• Build an audit strategy.
• Verify that all outgoing checks were properly signed, accounted for
and posted to the correct accounts.
• Ensure that all deposits were properly posted.
• Review all financial statements.
• Ensure compliance with all state and federal requirements.
• Review all treasurers’ reports.
• Complete the financial review worksheet.
• Suggest improvements to internal controls.
• Determine your audit opinion.
• Submit all documents to companies.
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Taxation
Following steps are followed by us –
• All of the first, we study about the taxation and mainly headed
Income Tax.
• Then, we started to prepare ITR’S statement in excel sheet
according to the format given to us.
• After that, we prepare the offline utilities of ITR’S according to the
income status in statement.
• Then, we login to the income tax site and upload that utility online,
if user not registered then first we registered them.
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Detailed description of any specific
study/research conducted by you under the
supervision of your mentor(faculty), the
study should co-related with internship
functional area
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TOPIC – TAXATION
What is TAX?
A tax is a mandatory financial charge or some other type of levy
imposed upon a taxpayer (an individual or other legal entity) by a
governmental organization in order to fund various public expenditures.
A failure to pay, along with evasion of or resistance to taxation, is
punishable by law. Taxes consist of Direct and Indirect taxes and may
be paid in money or as its labor equivalent.
Types of Taxes –
Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly
by you, such as the dreaded income tax, wealth tax, corporate tax etc.
while others are indirect taxes, such as GST.
a. Direct Taxes
b. Indirect Taxes
Direct Tax
An Income tax is a tax that government impose on financial income
generated by all entities within their jurisdiction. By law, businesses
and individual must file an income tax return every year to determine
whether they owe any taxes or are eligible for a tax refund.
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Financial year – A year as reckoned for taxing or accounting
purposes.
Assessment year – Assessment year is the year immediately
following the financial year wherein the income of the financial year
is assessed.
There are some examples of Direct Taxes like:
1. Income Tax
2. Corporate Tax
3. Wealth Tax
4. Gift Tax
5. Estate Duty
6. Expenditure Tax
7. Fringe Benefit Tax
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There are different tax rate slabs for different age groups, different work
& different status:
Income Tax slabs for Individual Tax Payer & HUF (less
than 60 years old) for F.Y. 2019-20
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Income Tax Slabs for Senior Citizens (60 years old or more but
less than 80 years old) for F.Y. 2019-20
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Income Tax Slabs for Senior Citizens (80 years old or more)
for F.Y. 2019-20
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Income Tax Slabs for Domestic Companies for F.Y. 2019-20
(This is income tax return for the financial year 2018-19. Applicable for income
earned from April 1st, 2018 to March 31st, 2019).
Important Due Dates of Income tax return filing for the year 2019
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Whenever we talk about income tax, there are various kind of compulsory tax
formalities that need to be followed by a person and that too within the specified
due dates prescribed, such as filing of income tax returns, paying advance tax on
time.
Here is the TAX CALENDAR for 2019.
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Indirect Tax
An indirect tax is a tax collected by an intermediary from the person
who bears the ultimate economic burden of the tax. The intermediary
later files a tax return and forwards the tax proceeds to government with
the return. GST is the most prominent example of Indirect tax levied in
India on the supply of goods & services. GST is levied at every step in
the production process, but is refunded to all parties in the chain of
production other than the final consumers. Goods & Services are
divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18%
and 28%.
Petroleum products, alcoholic drinks, electricity, and real estate are
taxed separately by the individual state governments. India adopted a
dual GST model, meaning that taxation is administered by both the
Union & State governments. Transactions made within a single state
are levied with Central GST (CGST) by the Central government and
State GST (SGST) by the State governments. For inter-state
transactions and imported goods & services, an integrated GST
(IGST) is levied by the Central government.
The GSTN software is developed by Infosys Technologies and IT
network is maintained by the NIC. “Goods & Services Tax” Network
(GSTN) is a non-profit organization formed for creating sophisticated
network, accessible to stakeholders, government and taxpayers to
access information from on a single source (portal).
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CHAPTER 5
LEARNING, CONCLUSION
AND SUGGESTIONS
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Behavioral Learning from the Organization
COMMUNICATION
Good communication consists of many other different sub-skills, from
suitable patterns of body language and eye contact with the ability to
write clear and accurate reports. Accurate listening and the ability to
follow instructions are especially important but are often ignored or
taken for granted. Many people simply do not pay close attention to
what others say or write and do not ask follow-up questions to check
their understanding. As a result, individuals act on their own inaccurate
assumptions and create inefficiencies and frustrations at work.
Communication training will help them overcome these challenges.
SELF-IMPROVEMENT
Life in the workplace should not enforce stagnation; there should be a
constant need or desire for improvement. Satisfaction leads to a
perception of repetition, which is the essential of a job perceived as
unchallenging. Employees should improve to avoid both the frustration
of inexperience and contentment with their work.
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People always have room to grow, and advance behavioral skills are
always welcomed. At the upper end, one can give your workers the
tools and mindset to aim for improvement by observing their behavior,
work habits, and production. Self-improvement training will help
provide feedback and criticisms that they can use to benefit their next
assignments. An essential part of promoting improvement is to
communicate to the employees that failure.
EMPATHY
Being an empathetic individual comes naturally to some, but is less
natural to others. Behaving with empathy means more than feeling bad
for someone who’s sad or sharing in someone else’s joy. It means being
able to step into someone else’s world to understand not just what their
point of view is, but also why they have that point of view.
Empathy is a behavioral skill that can help one not only keep their own
peace of mind but can also help one to grow in your career because
empathetic people tend to put others at ease.
CONFLICT RESOLUTION
At points of imbalance and friction, the employees must be able to
confront the tension between them and resolve whatever disagreement
arises. This is a twig of communication, though it is a distinct skill that
can be hard to develop due to hesitation and the intimate nature of the
workplace.
The bad habit to breed is ignoring these conflicts to the point that they
grow and spread like wild-fire, damaging relationships and the
productivity of both individuals and the team. Instead, employers
should remain aware of potential conflicts and be active in entering and
facilitating these more emotional interactions, and over time, help their
workers see the bigger picture when they harbor uncertainties.
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5 BEST PRACTICES OBSERVED IN THE
ORGANIZATION
The employees are always energetic and ready to do work; they don’t
waste their time. They always strive for excellence with effectiveness
and efficiency in their work. Even if the proprietor is not at the office
they don’t skip work hours.
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The trainees are not offered extra financial or any other incentive
for the extra work or over time. This causes some sort of
abstractions which immediately need to be overcome by the
management.
The employees are provided less salary than the government has
asked to provide in minimum wage act, therefore the employees
must be provided at least the minimum salary.
Most of the computers and laptops in which the work was done
were old and because of that we were unable to carry out our tasks
properly. The organization must have proper systems so that the
work load can be handled efficiently.
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LIMITATIONS
They have a small staff with limited skill set in many areas.
Less number of staff members.
Developments in technology are changing this market. Shekhar CA &
Co. needs to adopt new technology and adapt to the changed market
realities.
Change in government policies and procedures may act as threat for
company.
A small change in focus of large competitor might wipe out any market
position achieved.
Shekhar CA & Co. has many competitors. Under certain
circumstances stiff competition can threaten the margins and hence the
survival of the firm.
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CONCLUSION
Shekhar CA & Co. is overall one of the profit making and reputed firm
of Earth. The organization since its very first day is devoted to
providing quality services. The detailed and through review of work
and clients’ trust shows the perfection with which it is working.
The firm has earned a distinction of being placed in the category 'A' in
the list of panel of auditors maintained by State Bank of India.
Moreover, only these “A” category firms can audit of listed
companies.
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CHAPTER 6
BIBLIOGRAPHY
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REFERENCES
https://cleartax.in/s/income-tax-slabs
https://economictimes.indiatimes.com
https://www.avalara.com
https://www.business-standard.com
https://www.google.co.in/imghp?hl=en&tab=wi&ogbl
http://www.gstcouncil.gov.in/
https://www.myloancare.in/tax/income-tax-slabs-rates/
https://www.wikipedia.org/
www.google.com
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