Bharati Vidyapeeth

(Deemed to be University), Pune, India

Institute of Management &

EntrepreneurshipDevelopment, Pune

Studying of financial aspect

With reference to STPI

A summer Training Project Report

Submitted in partial Fulfillment of the requirement

for the

Award of degree of Master of Business

Administration 2020-2022

Submitted By: Guided By:

Tavishi Saxena Dr. Phalke. Vijay

Roll No.: 168

Division: MBA (G)

0
1
 CERTIFICATE OF
ORIGINALITY

This is to certify that the project report entitled “Studying of Financial Aspect with
Reference to STPI” Submitted to Bharati Vidyapeeth (Deemed to be University), Pune in
partial fulfillment of the requirement for the award of the degree of Masters in Business
Administration (MBA) is an original work carried out by Ms. Tavishi Saxena under the
guidance of Dr. Phalke. Vijay. The matter embodied in this project is a genuine work done
byMs. Tavishi Saxena to the best of my knowledge and belief and has not been submitted
before, neither to this University nor to any other University for the fulfillment of the
requirement of any course of study.

Ms. Tavishi Saxena Dr. Phalke. Vijay

Signature of the Student Signature of the Guide

2
 CERTIFICATE

This is to certify that the Project titled “Studying on Financial Aspect with Reference to
STPI” is an academic work done by “Tavishi Saxena” submitted in the partial fulfillment
of the requirement for the award of the Degree of Masters in Business Administration
(MBA) from Bharati Vidyapeeth (Deemed to be University), Pune.

It has been completed under the guidance of Dr.Phalke.Vijay (Faculty Guide) and
Mr.Ch.Prasad Rao (Corporate Mentor). We are thankful STPI for having allowed our
student to undergo project work training. The authenticity of the project work will be
examined by the viva examiner which includes data verification, checking duplicity of
information etc. and it maybe rejected due to non-fulfillment of quality standards set by the
Institute.

Dr.Sachin. S. Vernekar

Dean FMS, BVDU

Director IMED

3
 ACKNOWLEDGEMENT

Apart from my efforts, the success of my project depends largely on the encouragement and
guideline of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project.

I am gratefully indebted to our esteemed guide Dr. Phalke.Vijay (Internal Guide) for his
sincere guidance and priceless support which would have been impossible for us to
complete this project.

I express my gratitude to the staff members of Bharati Vidyapeeth (Deemed to be

University) who directly or indirectly helped me. I would also like to express my sincere
gratitude to my company guide

Finally, I thank Institute of Management and entrepreneurship Development (IMED) for

giving me this golden opportunity to do my summer internship in Software Technology
Parks of India.

Tavishi Saxena

4
 PREFACE

Financial aspect of the organization is the study of knowing all the incomes, gains, cash
inflow or outflow, profit and loss, investments, overall analyzing the business in the terms
of numbers/amount/percentage in best possible ways. Without financial knowledge no
business can survive or stand. Understanding or maintaining the finance is day to day
activity of any business or a person. When it comes for a business, it become wider and
vaster but for an individual, it is small and limited.
In today‟s world Finance research forms an important part of any marketing strategy. The
rise of fintech startups has meant that campaigns which take into consideration and
understand consumer habits are more likely to be effective.
In this era of fast changing world, mere classroom teaching is not sufficient to attain
maturity and perfection for application of theory into practice. The dynamic economy,
political and technological environment in which we live continually place demand on us to
change, improve and learn more about jobs, superiors, and subordinates. Two years of
continuous classroom teaching is sufficient for students to directly implement their
knowledge in the market. A practical approach is needed.
The knowledge through project report is an essential requirement for M.B.A students. The
purpose of this project report is to study the financial aspect with special reference to
Software Technology Parks of India. I have tried my level best to do justice to the project.
And I hope the study which was conducted will help not only the organization but also me
and the society too.

Tavishi Saxena

5
 TABLE OF CONTENTS
Sr. No Topic Page No.

1. Certificate from the company 1

2. Certificate of originality 2

3. Certificate 3

4. Acknowledgement 4

5. Preface 5

1. INTRODUCTION 7-22
1.1. Profile of the organization 7-9
6.
1.2. Services provided by Organization 10-13
1.3. Finance & Account group 14-21
1.4. CSR initiative 22

7. 2. RESEARCH METHODOLOGY
23-25
2.1. Statement of the problem 23
2.2. Objective & Scope of Study 23
2.3. Managerial usefulness of study 23
2.4. Type of research and research design 24
2.5. Data collection Methods 25
2.6. Limitation of Study 25

8. 3. DATA ANALYSIS 26-27

9. 4. FINDINGS 28-29

10. 5. CONCLUSION, SUGGESTION 30-31

11. 6. MY CONTRIBUTION TO THE BODY OF KNOWLEDGE 32

12. 7. BIBLIOGRAPHY 33

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 1.1. PROFILE OF THE ORGANIZATION:

INTRODUCTION

The first historic event that triggered the high-octane growth of IT Industry in India was the
establishment of three Software Technology Parks (STPs) at Bengaluru, Bhubaneswar, and Pune in
1989. Consequently, in 1991 these three STPs were merged to create a single entity Software
Technology Parks of India. From 1991, Software Technology Parks of India (STPI) has been working
towards equitable and inclusive IT-led growth pan-India which in turn has helped promoting Software
exports, Science, Technology & Innovation (STI) and Software product development with 9
jurisdictional directorates and 61 centers.

Software Technology Parks of India (STPI) is a premier S&T organization under Ministry of Electronics
and Information Technology (MeitY) engaged in promoting IT/ITES Industry, innovation, R&D, start-
ups, product/IP creation in the field of emerging technologies like Internet of Thing (IoT), Blockchain,
Artificial Intelligence (AI), Machine Learning (ML), Computer Vision, Robotics, Robotics Process
Automation (RPA), Augmented & Virtual Reality, Animation & Visual effect, Data Science &
Analytics for various domains like Gaming, FinTech, Agritech, MedTech, Autonomous Connected
Electric & Shared(ACES) Mobility, ESDM, Cyber Security, Industry 4.0, Drone, Efficiency
Augmentation, etc.

STPI is aspiring to become the largest technology startup ecosystem in the country and has been
endeavoring to transform the country into a software product nation as envisaged in National Policy on
Software Products (NPSP) 2019. STPI has evolved a collaborative model wherein government, industry,
academia, and other stakeholders are playing a vital role for providing end-to-end support to startups.

STPI has played a key role in transforming the country as the preferred IT destination, a fact that aptly
proven by the stupendous growth in exports by STPI-registered units from Rs. 53 crores in 1992-93 to
Rs. 5,08,438 crores in 2020-21, which is approx. 50% of the national software exports and 2.3% of
India‟s GDP.

OBJECTIVE
1. To promote the development and export of software and software services including Information
Technology (I.T.) Enabled Services / Bio-IT.
2. To provide statutory and other promotional services to the exporters by implementing Software
Technology Park/ Electronics and Hardware Technology Park Schemes and other such schemes
which may be formulated and entrusted by the Government from time to time.
3. To provide data communication services including value added services to IT / IT Enabled
Services related industries.
4. To promote micro, small, and medium entrepreneurs by creating conducive environment for
entrepreneurship in the field of IT / IT Enabled Services.
5. To work towards the advancement of the technology industry, introduction, and encouragement

7
 of emerging technologies to meet customer requirements in ever-changing markets in India and
abroad.
6. To provide conducive environment for upgradation of the technical knowledge of STPI
personnel through seminars/conferences/trainings.
7. To develop and maintain state-of-art data communication infrastructure as per the global
standards.
8. To deliver comprehensive services including project approvals, import attestation, software
export certification etc., within a time-bound manner to boost countries‟ export growth.
9. To achieve high levels of customer satisfaction by combining planning and execution of the
projects through dedicated workforce.

FUNCTIONS
1. To establish Software Technology Parks at various locations in the country.

 To Perform all functions in the capacity of the successor to the erstwhile STP Complex
which were taken over by the STPI.
 To Establish and manage the infrastructural resources such as integrated infrastructure
including international communication / Data center / Incubating facilities etc. for 100%
export-oriented units and to render similar services to the users other than exporters.
 To Undertake other export promotional activities such as technology assessments, market
analysis, market segmentation as also to organize
workshops/exhibitions/seminars/conferences etc.
 To Facilitate specialized training in the niche areas to meet the above objectives.
 To Work closely with respective State Government and act as an interface between Industry
and Government.
 To Promote secondary and tertiary locations by establishing STPI presence to promote
Software Technology Park / Electronics Hardware Technology Park Scheme, and
promotional schemes announced by Government.
 To Promote entrepreneurship through incubation programs / seed funds / IP development and
other awareness programs.
 To Assist State Governments in formulating IT policies and liaison for promoting the IT
industries in respective states to achieve an exponential growth of exports.
 To Promote quality and security standards in the I.T industries.
 To Work jointly with venture capitalists for providing financial assistance to the IT
industries.
 To Provide Project Management and Consultancy services both at national and international
level in the areas of expertise of STPI.

8
2. To perform financial management Functions which comprise of the following activities

 Obtain or accept grants, subscription, donations, gifts, bequests from Government,

Corporations, Trusts, Organizations, or any person for fulfilling the objectives of STPI.
 Note: Whenever any gifts, bequests from foreign Governments/organizations are
accepted/obtained, they shall be routed through the Government and be regulated by such
directions as may be issued by the Government.
 Maintain a fund for crediting:
- All money provided by the Central Government, State Governments, Corporations,
Universities etc.
- All fees and other charges received by the STPI.
- All money received by STPI by way of grants, gifts, donations, benefactions, bequests, or
transfers.
- All money received by STPI in any other manner or from any other source.
 Deposit all money credited to the Fund in Scheduled Banks / Nationalized Banks or to invest
in such a manner for the benefit of the STPI as may be prescribed. At least 60% of the funds
shall be placed with the Public Sector Banks or in such a manner as may be prescribed by the
Government from time to time.
 Draw, make, accept, endorse, and discount cheques, notes or other negotiable instruments
and for this purpose, to sign, execute and deliver such assurance and deeds as may be
necessary for the purposes of STPI.
 Pay out of the funds maintained by STPI or part thereof, the expenses incurred by the STPI
from time to time including all expenses incidental to the formation and reorganization of
STPI and management and administration of any of the foregoing activities including all
rents, rates, taxes, outgoings, and the salaries of the employees.
 Acquire, hold, and dispose of the property in any manner whatsoever for the purposes of
STPI, with the prior approval of Governing Council as per the procedure laid down by
Government.

3. To do all such acts and things as may be required to promote the development and export of
software & software services including Information Technology (IT) / Information Technology
enabled Services (ITeS) / ESDM to fulfill the various objectives of STPI.

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 1.2. SERVICES OF THE ORGANIZATION
STPI Bangalore centrally maintaining the accounts of STPI - Bangalore, Mysore,
Mangalore, Hubli & Manipal centers.

 STATUTORY

1. STP Scheme

100% export-oriented scheme. It is for computer software development including

export of professional services using communication links or physical media.

BENEFITS
 Can clear projects costing less than Rs.100 million with Indian Investment.
 100% foreign equity is permitted.
 All the imports of Hardware & Software in the STP units are completely
duty free, import of second-hand capital goods are also permitted.
 Re-export of capital goods is also permitted.
 Use of computer system for commercial training purposes is permissible subject
to the condition that no computer terminals are installed outside the STP
premises.
 Sales in the Domestic Tariff Area (DTA) are permissible.
 The capital goods purchased from the DTA are entitled for refund of GST.
 Capital invested by foreign entrepreneurs, know-how Fees, royalty, dividend
etc., can be freely repatriated after payment of Income Taxes due on them, if
any
 The items like computers and computers peripherals can be donated to
recognized non-commercial educational institutions, registered charitable
hospitals, public libraries, public funded research and development
establishments, organizations of Govt. of India, or Govt of a State or Union
Territory without payment of any duties after two years of their import.
 100 Percent Depreciation on computers and computer peripherals over a
period of five years.

2. EHTP Scheme

The Electronic Hardware Technology Park (EHTP) Scheme is a 100% export-

oriented scheme for the development and export of electronics hardware.

BENEFITS
 Manufacture any item of electronic hardware for exports.
 Manufacturing of both hardware and software in an integrated manner for

10
 exports.
 R&D activity, maintenance, testing and calibration services for electronics
products meant for exports.
 EHTP units may import all types of goods, including capital goods free of
duty as defined in the Export Import (EXIM) Policy, required by it for
manufacture, services, production and processing or in connection therewith.
 The units shall also be permitted to import goods, including capital goods,
free of cost or on loan from clients required for the approved activity.
 EHTP units may procure goods required by them for manufacture, services,
production, and processing or in connection therewith, duty free, from
bonded warehouses.
 Simplified minimum export performance norms i.e., “Positive Net Foreign
Exchange Earnings”.

3. IT Parks

Till date, STPI has launched the following 20 Centres of Entrepreneurship (CoEs)
which is also called IT Parks are as under:

 Electropreneur Park at New Delhi

 Internet of Things (IoT) OpenLab at Bengaluru
 Electropreneur Park at Bhubaneswar
 VARCoE at Bhubaneswar
 FinBlue at Chennai
 NEURON at Mohali
 MOTION at Pune
 IMAGE at Hyderabad
 Apiary at Gurugram
 MedTech CoE at Lucknow
 Internet of Things (IoT) in Agriculture CoE at Guwahati
 Animation CoE at Shillong
 Emerging Technologies – AR/VR CoE at Imphal
 Geographic Information System (GIS) CoE at Itanagar
 Gaming Tech CoE at Aizawl
 Graphic Design CoE at Kohima
 Healthcare Tech CoE at Gangtok
 Data Analytics CoE at Agartala
 AIC STPI Bengaluru
 FASAL CoE

4. NON STP Scheme

Any business entity which is into the development of Export-oriented Computer

Software/IT Enabled Services, is required to register itself as NON-STP unit under
STPI to avail Softex certification.

11
 DATACOM

1. Soft-link Services

SoftLINK is an internet service developed specially to cater to the needs of the IT

industry. It offers Leased Internet access in two modes viz. Standard and Premium
qualities Each having its own Quality of Service Parameters. This service was
launched to cater to the rising needs of the industry for quality and committed
service. This service has been catering the needs of the IT industry and provides
high-speed, dedicated Internet access with quality and reliability. 24x7x365
technical support, handled by a well-qualified technical team. Online bandwidth
statistics allow Customers to monitor the usage and help them forecast future
requirements. Service Level Agreement (SLA) for its internet network guarantees
uptime of more than 99.5%.

2. Service Destination

Presently, the services are offered to destinations such as North America covering
United States, Canada etc., Europe covering United Kingdom, Germany,
Netherlands, Ireland etc. and APAC covering Hong Kong, Thailand, Singapore,
Japan etc.

 INCUBATION SERVICES

Software Technology Parks of India has been providing incubation facilities pan-India to
cater to the needs of Small & Medium Entrepreneurs (SMEs) in IT/ITeS sector. The
incubator concept has emerged world-wide as essential infrastructure for the growth of
high-technology businesses like information technology and software development. These
incubators provide the necessary help to nurture technology ideas into commercial
successes. It offers advantage of no gestation period and does not require capital
investment. It helps in developing confidence in the client and ensures that the business
opportunity is not lost.

It has the following features:

 State-of-the-art infrastructure with workstations, cubicles, manager cabins,

discussion rooms, conference halls etc.
 Ready-to-use internet bandwidth
 Fully air-conditioned incubation space
 Standby DG power system & Uninterrupted power supply system

12
  Cost Effective Services
 24 X 7 security system
 Access Control & Fire Alarm System
 Software Units can kick-start their operations immediately. The space is ideally
suited for a team size starting from 15-20 Employees to 100 Employees

 PROJECTS MANAGEMENT SERVICES

Consulting Services means the provision of expertise or strategic advice that is

presented for consideration and decision-making. Consultancy works as per the
Projects.

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1.3 FINANCE AND ACCOUNTS GROUP
(FAG)

STPI follows the double entry mercantile accounting system, and the financial
year starts from 1st April to 31st March every year. Each financial year begins
with a new budget.

FUNCTIONS OF FAG

 Types of services & sources of income

 Billing to Customers for Services offered by STPI
 Recovery of Dues from Customers
 Preparation of Budget for Revenue & Capital Expenditure
 Obtaining funds from HQ & its utilization
 Payments to employees /Suppliers / Contractors / Vendors / Statutory
payments
 Fixed Assets Accounting
 Bank Reconciliation and Liasoning with Bank for various other work
 Preparation and finalization of Annual Accounts- Income &
Expenditure A/c and Balance Sheet
 Liasoning with Internal & Statutory Auditors
 Preparation of Various MIS Reports
 Goods and Services tax

1. TYPES OF SERVICES & SOURCES OF INCOME

 Statutory Services
1. STP Scheme
2. EHTP Scheme
3. IT Parks
4. Non STP Scheme

 Datacom Services

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 1. Softlink Services
2. Value added Services

 Incubation Services
1. Incubation facility with plug & play workstations
2. Lease of premises Software Wise
3. Co-Location service

 Consultancy Services
2. BILLING TO CUSTOMERS FOR SERVICES OFFERED BY STPI

S.NO BILLING FOR SERVICES

1 Statutory: STP/EHTP/IT Parks/Non STP Services
2 Datacom: Soft Link Services/ Other Value-Added Datacom Services (DNS, Mail
Relay, Web Hosting, Server Space Sharing etc.)
3 Incubation Services
4 Co-location Services
5 Project Management Consultancy

STATUTORY BILLING
FOR NEW STP UNITS

 Registration fees for registration as STP Unit – Rs.2500/- + GST.

 On approval of the unit and issue of Letter of Approval, at the time of executing
legal agreement – Rs.24000/- + GST towards 3 years annual service charges for
minimum turnover i.e., 0–25 lakhs @Rs.8000/- + GST per annum is payable.

 Invoice for minimum turnover i.e., Rs.8000/- + GST will be raised on the unit.
Advance paid by the unit will be adjusted against this billing and balance would
be kept as advance.

FOR REGULAR STP BILLING

 Billing is done based on Audited/Provisional APR of last year submitted by units.

 On receipt of Audited APR, in case of any change in Export figures, differential billing/credit
note will be issued to unit.

15
  Before raising Invoice, previous dues, if any pending from the unit are being followed up for
recovery.

FOR NON STP UNITS

 Registration fees – Rs.1000/- + taxes to be submitted along with application.

 Unit shall make payment of applicable service charges (as per the approved slabs) for
certification of Softex. Invoice would be issued based on the turnover declared by the unit.

FOR EHTP UNITS

 Registration fees – Rs.2500/- + taxes.

 Legal Agreement – Rs.60,000/- + taxes (3 years minimum service charges of Rs.20,000/- per
annum).

 Billing done on yearly basis @ Rs.20,000/- + taxes irrespective the Annual Turnover.

FOR IT PARKS

 Registration Fees – Rs.2,500/- + taxes as STP Registration Charges & Rs.5,000/- + taxes payable
to Department of Commerce.

 Billing is done on annual basis based on the value of imports made by the IT Park.

DATACOM

SOFT-LINK BILLING

NEW CUSTOMERS

 Registration charges for new customers – Rs.5000/- + taxes.

 Registration charges waived off if customer is already availing other services from STPI such as
incubation / Statutory, etc.

 Installation charges applicable at actuals if local loop is provided by third party.

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REGULAR BILLING

 Billing is done on quarterly basis 15 days in advance.

 Billing is based on bandwidth capacity and approved tariff.

INCUBATION CHARGES
 Interest free Security Deposit equivalent to 3 months rental of the no. of workstations taken will
be collected which shall be refunded on vacation of the premises after adjustment of dues if any.
 Lease agreement will be executed for a period of 11 months.
 1 Month notice to be given for vacation / termination of lease.
 Billing will be done 15 days in advance for the next month.

CO-LOCATION BILLING
 STPI provides Rack space & Data transfer services for customers interested to avail Co-location
services.

 Tariff is approved by HQ.

 Billing will be done 15 days in advance for the next quarter.

3. RECOVERY OF DUES FROM CUSTOMERS

4. PREPARATION OF BUDGET FOR REVENUES & CAPITAL

EXPENDITURE
Before approaching towards funds, they prepare a full budget for revenues and capital expenditure. They
analyze the expected and actual statement of expenditure. Expenditure incurred should be with approved
budget.

5. OBTAINING FUNDS FROM HEADQUARTER & ITS

UTILIZATION

Fund management will be done by headquarter centrally.

 All the receipts of the concerned center will be deposited with Receipt Account. Sub Centre‟s
will also deposit all the receipts directly in the Receipt Account of their respective center.

17
  Center‟s & Sub Centers have no powers to withdraw any fund from Receipt Account.
 Center‟s/Sub Centers are not permissible for transfer of funds from Receipt Account to Expenses
Account. The same will only be possible after the instruction of HQ to respective banks.
 Directorates having existing saving account with BOI under CBS may be treated as Expenses
Account.
 All the expenses will be incurred only from Expenses Account.
 All accounting in respect to Receipt Account will done at Center/Sub Center level.
 Centre‟s/Sub Centre‟s will be responsible for deposit of all statutory dues in respect to funds
deposited in Receipt Account.
 Center‟s will not be responsible for the Fund Management of Receipt Account; the same will be
done at HQ.

FUND ALLOCATION

Director General, STPI is empowered to allocate the approved budget along with following delegated
functional powers.
 Re-appropriation/allocation of additional funds up to the limit of 10% of the total budget.
 Transfer of unspent balance of one head to the other head for excess expenses in case such
requests received from the centers.
 Sanction of 10% of total budget as advance against expenses heads which were not considered in
Budget for the year. The same will adjusted after obtaining the approval of Governing Council.

6. PAYMENTS TO EMPLOYEES/ VENDORS/ SUPPLIERS/

CONTRACTERS/ STATUTORY PAYMENTS

EMPLOYEES PAYMENT

1 Payroll- Salary
2 Short-term loan
3 Leave encashment
4 Medical allowance
5 Medical reimbursement
6 Newspaper Reimbursement
7 Children education Allowance
8 Staff Advance and Settlement
9 Mobile and landline reimbursement, internet charges, food coupons
10 Tour Advance/ LTC Advance
11 TA on transfer
12 Health checkup reimbursement
13 Miscellaneous payments like uniforms, shoes, etc.

18
SUPPLIERS AND CONTRACTERS PAYMENTS

1 Horticulture and Landscaping Expenses

2 Housekeeping Expenses
3 Annual Maintenance Charges-Office Equipment/Electrical Equipment etc.
4 Communication Expenses
5 Travelling & Conveyance Expenses
6 Vehicle Running & Hire Charges
7 Advertisement & Publicity
8 Security Expenses
9 Business Promotion
10 Printing & Stationary
11 News Paper, Books & Periodicals
12 Electricity, Fuel & Water Charges
13 Computer Operating Expenses
14 Professional & Consultancy Charges
15 Other Misc. Expenses

VENDOR PAYMENTS

There are three types of vendor payments:

3. Purchase/work order
1. Monthly recurring 2. Annual Maintenance
payments
• Outsource Manpower • Air Conditioners • Printing & stationery
Expenses • UPS • Capital items
• Security Guards • Networking Equipment procurement
• Housekeeping Expenses • Computers • Consumables & other
• Drinking Water Expenses • Etc. if any items
• Tea Vendor
• Vehicle Hire Charges
• Building Maintenance
charges
• Electricity Charges
• Photocopier Expenses
• Telephone Expenses
• Courier Expenses

19
STATUTORY PAYMENTS AND RETURNS
1 Payment of TDS Deducted from Salary/Contractor/Professional/Rent etc.
2 Issue of TDS certificates to all the Employees, Vendors.
3 Collection of TDS certificates from all Customers
4 Filing of Monthly / Quarterly / Half Yearly and Annual Returns
5 Payment of Professional Tax
6 Payment of Provident Fund
7 Payment of Employees Pension Scheme
8 Dealing with Tax Authorities & Other related correspondence

7. FIXED ASSETS ACCOUNTING

 Preparation of list of Fixed Assets purchased during the Year
 Assets disposed off during the year to be removed from Books of accounts
 Preparation of Depreciation Chart by Applying Asset wise Depreciation rate.

8. BANK RECONCILITION STATEMENT

 Reconciling all the Bank Accounts-Receipt as well as Payment Accounts

 Depositing of cheques received from Customers in Bank
 Submission of RTGS advice to Banks for payments
 Bank correspondence on remittance advices, Issue of Bank guarantee, Demand Draft Interest on
FD etc.

9. FINALIZATION OF ANNUAL ACCOUNTS

 Booking of All Income & Expenses including Provisions

 Obtaining Balance Confirmation from Debtors, Creditors, Inter units.
 Investment Accounting-Booking of Interest Income, Interest accrued etc.
 Reconciliation of TDS, Debtors, Creditors, Advances & Security Deposits from Customers,
Security Deposits paid by STPI, Provisions etc.
 Preparation of Draft Income & Expenditure, Balance Sheet and Notes forming Parts of Accounts
with Annexures thereto.

20
10. LIASONING WITH STATUTORY AND INTERNAL
AUDITOR

 Assist Internal Auditors appointed by Management in conducting quarterly Internal Audit.

 Prepare Management replies to Internal Audit Report
 Submission of compliance Report of Internal Audit Observations to HQ
 Assist Statutory Auditors recommended by CAG in conducting Statutory Audit.
 Preparation of Various MIS Reports
 Prepare various MIS reports for Management, HQ and MeitY as and when required like Income,
Expenses, Employee related information, Salary etc.

11. GOODS AND SERVICES TAX (GST)

 Types of Taxes under GST
a) CGST & SGST applicable on all Intrastate (within State) supply of Goods/Services

b) IGST is applicable on all Interstate (from one state to other state) supply of Goods /Services.
 Rate applicable on all services provided by STPI-18%

21
1.4 CSR INITATIVE

Government of India launched the Startup India program in 2016 by bringing proactive policy measures
for hand holding, funding support & incentives, building industry-academia partnership and incubation
support. In the last three years, Department for Promotion of Industry and Internal Trade has already
recognized 22,128 startups, which are leveraging a host of tax benefits, easier compliance and IPR
facilitation. 264 startups have also been funded by SIDBI Fund of Funds. Under Scheme for Facilitating
Startups Intellectual Property Protection (SIPP), around 1,800 startups have availed the benefit of 80%
fee rebate and more than 150 patents have been granted.

Many such initiatives by various government departments, private players, startup accelerators,
academia and industry associations in the country are in place to further buoy the growth of startups. I
would like to cite one of such initiatives undertaken by my organization STPI for supporting the startup
ecosystem by way of creating Centers of Entrepreneurship (CoEs) in emerging technologies such as AI,
IoT, Blockchain, AR & VR, FinTech, MedTech, Data Analytics, Agri IoT, Automotive, ESDM, Gaming
& Animation, Health-Tech and LegalTech. The uniqueness of these CoEs lies in a collaborative model
in which various stakeholders such as government, academia, industry, industry associations and mentor
pool pitch in to build world-class startups focused on R&D, innovation and IPR creation.

In the 12th edition of Global Innovation Index (GII) India has ranked 52nd in 2019 by rising 29
positions from 81st in 2015. One of the many reasons that put India lower in GII is the R&D spending in
India with respect to its GDP. It‟s conspicuous that R&D spending in India is 0.8% of GDP, while the
countries like Israel, Republic of Korea, USA, and China spend 4.3%, 4.2%, 2.8% and 2.1% of GDP
respectively and the private spending in R&D in India is even more dismal. Even though, the number of
Intellectual Property Rights (IPR) filed by Indian organizations in 2017-18 stacks at 47695, it is not
commensurate with the potential and need of the country.

Recent announcement made by the government for expanding the scope of spending of CSR funding for
incubators those are engaged in facilitating startups, which are working in the domain of R&D in
science, technology, engineering, and medicine, is a laudable step. According to reports, CSR spending
has jumped from Rs 10,066 crore in 2014-15 to Rs 13,327 crore in 2017-18

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2. RESEARCH METHODOLOGY

2.1. Statement of the Problem:

A study focuses on various accounting and taxation practices followed by STPI.

Performance and benefits of those practices to the organization are evaluated. It also
studies the Balance Sheet, different general accounting policies and Tally followed after
STPI

2.2. Scope of Study:

The study helps me to get the reality check of a market where actual comparison between the
classroom knowledge and the real situation can be done. By just learning theory and facing
actual situations it concepts and practices might vary.

The study helps to understand the different concept of accounting and taxation but
while implementingit might differ from situation to situation.

This study aims of studying accounting concepts and applying those process and it helped
me to understand how to deal with different kind of entries and how to make accurate entries
by means of studying.

2.3. Objectives of Study:

 To study the accounting practices followed at STPI.

 To understand the utility of services in getting more business for the company.
 To understand the Tally in Tally ERP-9.
 To know how to do GST entries in the accounts.
 To study general rules of accounting and accounting standards.
 To study accounting principles.

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2.4. Managerial usefulness of study:

This study would be helpful for making, implementing, and managing different accounts
that helps a company to make a budget effectively and efficiently. It would be helpful in
enhancing brand awareness within the startup companies as well as driving different
incubation services and make startups a leading brand.

This study also identifies and evaluates accounting policies and balance sheet to measure
and analyze the better optimization of budget and sales throughout the accounting year.
Learn to develop new services to satisfy customer‟s needs.

2.5. Type of Research and Research Design:

The descriptive research design is used for analyzing and studying the process of Business
Development. It is very simple & more specific than explanatory study.

The descriptive study is a fact-finding investigation with adequate interpretation. The

descriptive study aims at identifying the various characteristics of a problem under study. It
reveals potential relationships between variables and setting the stage for further
investigation later. The results of such research are not usually useful for decision making by
them, but they can provide significant insight into a given situation. Although theresults of
qualitative research can give some indication as to the 'why', 'how' and 'when' something
occurs, it cannot tell us „How often' or 'how many'.

As the research conducted was observatory there was no questionnaire and hence no sample
size or data interpretation was to be done.

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2.6. Data Collection Method:

Primary Data:

It is firsthand data which is collected by you only. The different way of collecting
primarydata is Personal interview, questionnaire, survey etc. Personal observation is
a subset category, in which the researcher is the primary instrument for monitoring
and data collection. Collection can be covert or overt, participatory, or not, and can
vary in degree ofinvasiveness to the participants' lives. In my project the primary data
is wholly based on mypersonal observations, participation in different tasks which
were performed by me and through one-to-one interaction (formal as well as
informal).

Secondary Data:

Secondary data is collected from already existing sources in various organization

broachers & records. Secondary data for the study were collected from the magazines,
websites & otherprevious studies.

To meet the objectives, the study used qualitative research. The descriptive study was
done through review of existing literature that helped in validation and extraction of the
importantvariables and factors. Data was collected from secondary sources. Secondary
sources were magazines, websites, books, office executives, and company data.

2.7. Limitations of Study:

 The time span for the project is limited.

 The problems with using paid tools for relevant data.
 Time of campaigns for some clients is more than 2 years.
 Confidentiality clause of the company.

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 3. FINANCIAL ANALYSIS OF STPI
STPI's total revenue generation in 2018-19 stands at Rs.5195.79 crores. Revenue Expenditure is
Rs.196.06 crores (including depreciation) with a deficit of Rs.0.27 crore. After adjustment of prior
period items, the surplus of Rs.1.36 crores carried to balance sheet. The following graph indicates the
trends of revenue and expenditure:

In the above chart, we can see the slightly change in the expenditure of the organization from
2007-08 to 2018-19 the expenditure increases from Rs.52.76 Crore to Rs.196.06 Crore. Income
from the organization stays in the same level from the bracket of Rs.150 Crore to Rs.200 Crore.

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INFORMATION TECHNOLOGY REVENUE

In the above pie chart, the Information Technology Services covers more than 50% i.e., 50.8%
which is USD 97 Billion, and Hardware covers the least part of the Chart i.e., 8.4% which is
USD 16 Billion. Business Processing Management covers (BPM) 19.9% i.e., USD 40 Billion
and Electronic Research and Development and Products (ER&D, PRODUCTS) covers 20.9%
i.e., USD 38 Billion.

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 4. FINDINGS
 Every document which is required for recording of business transactions in the books of
accounts are called as source Documents E.g.: Voucher, Cashbook, Purchase bill, Sales
bill, Bank Statement etc.
 In accounting, each business transaction has dual impact, it needs to be understood what
goes to debit and what goes to credit; however, a debit entry may mean increase in one
account while it may indicate decrease in some other account and vice-versa.
 To bring more alignment towards global GAAP, these accounting standards have been
modified to “IND AS” and a phase wise implementation roadmap has ben devised by
ministry of corporate affairs (MCA) and incorporated in the companies Act 2013.
 IND AS deals with the following issues:
Globalization and liberalization effect to be considered
Transparency of Financial Statements
Comparability of Financial Statement
Enhanced disclosure requirements
 Noncash investing and financing activities are not reported in the cash flow statement as:
Noncash does involve inflows and outflows of cash
Exchange of debt for equity
Stock dividend
Purchase of machinery and payment consideration being paid in form of shares
 Preparation of budget
 Respective department will prepare monthly/yearly budget in accordance with their
past expenses and assumptions
 The budget then will be submitted to the authorized person/ Managing Director.
 The various departmental budgets will be consolidated to prepare the expense
budget at the organizational level.
 The authorized person will compare the budget with the actual figures of expenses
of previous month
 On the basis of expenses of previous month, the authorized person will approve
and reject the budget of expenses based on the priority of that expenses after

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 understanding the explanation given by the respective departmental head.
 After all the addition and deletions, the budget of the various departments will be
approved.
 While making payments to vendors, cheques can be directly printed through the system. It
helps to save time and helps to reduce human errors.
 Preparation of quotations:
1. Sales department will prepare quotations keeping in mind the cost of the products,
demand of the product in the market, relationship with the client, etc.
2. Sales department will get the quotations approved by the authorized person.
3. After approval sales department send quotation to the client.
4. If client approve the quotation Sales Order is prepared
5. If not, then sales department again repeat the above steps in order to get the
approval.
 Different models of GST are implemented across different countries. India has to maintain
the fiscal autonomy of the states because of its federal structure. Therefore, dual GST has
been actualized in India by the Empowered Committee.
 GST has two components, one levied by the Centre (CGST), the other levied by States
(SGST). Both such taxes are levied to all supply of goods and services. However, interstate
supply of goods and services will attract integrated GST (IGST) in lieu of CGST and
SGST.

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5. CONCLUSION:
The successful completion of this internship indicates that the future of Indian Startups is
in secure hands. Preparing budgets is not only concerned with only one-man job, but also
an integrated job of various departments who combined their knowledge to provide best
services to their client. The Income Tax Act 1961 is much deeper than it looks. The GST
Act 2017 is a comprehensive, multi-stage, destination-based consumption tax levied on
supply of goods and services at every stage of value addition in the lifecycle of a product
right from the manufacture to final consumption.

In the previous Indirect tax system there were various taxes, some which were collected by
the Central Government and others collected by respective States. Due to this multiplicity,
comprehending the law became difficult not only for foreign investors looking to entering
the nation but also for local entrepreneurs.

The more we study about the financial system of the organization the more it become logical.
Cashflow statements, ratio analysis, Profit & Loss Statement etc. they are all interconnected that
shows a company's revenues and total expenses, including noncash accounting, such as
depreciation over a period of time.

I conclude by saying that for a sustainable business, an entrepreneur needs to know all the aspect
of the business in financial terms too.

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6. SUGGESTIONS:
1. Analyze the Data

To fix the nonproductive marketing efforts, we must first identify the problem areas. We
can utilize an analytical tool to determine the aspects of our strategy that aren‟t working.
Studying every possible aspect of the organization or keep updating your ideas can make
your budget in the best possible number.

2. Stay along with the New Possibilities

Do not get stuck with the outdated mode of thinking, in fact old techniques that have
shown minimal results can hurt our overall analyzing strategy. My piece of advice for
analyzers is to utilize recent digital technologies. Staying in the loop by researching
different options can expose us to new ideas and keep our campaign from turning stale.
These can point us in the right direction.

3. Be Consistent and Persistent

Put a solid and sustained effort into techniques. Don‟t give up because you don‟t see an
immediate response from customers. It takes time to see tangible results, so keep trudging
forward. If you‟re trying to establish new technique, maintain a consistent schedule, always
revisit the Income tax act and GST act by which you won‟t forget anything, learn quality
content, and keep updating yourself on a regular basis. If you built a habit of
learning/studying newspaper it helps you know more about the world and the financial
system.

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7. MY CONTRIBUTION TO BODY OF
KNOWLEDGE
Studying Income tax has tremendously increased my potential to a certain knowledge
where I can learn and apply the Tax sections in the return filing. Applying my Tally
knowledge in the workplace assists me to develop the knowledge of calculating monetary
terms, accountancy, tax, and GST calculations. Using Tally software, the user can create
deposit slip, print cheques, and maintain cheque register easily. Tally has made the work
easier and user comfortable and easier to perform multiple operations. All the financial
analysis can be done by one click and can be downloaded automatically.

The study started with the aim to analyses the different kinds of analysis related to finance.
Based on the discussion it has been found that in case of the Finance, the most important
aspect is to connect with the numbers. The ladder of approximate result comes from
updating of correct data with relevant knowledge of that aspect. The study has also
revealed that to utilize Tally in an effective way, the companies are required to design an
effective work environment. It has shown that in the current context, it has become
important to integrate all the systems with that of the digital platform. The research and
practice of financial tools is improving with the advancement of technology.

Tally with GST helps me and company to learn different aspect of finance in the advancement of
technology. Studying Accounting Standards, GST implications, Basic of Accounting, General
Rules of Accounting gives me the brief about the working of accounts Department in the
company.

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8. BIBLIOGRAPHY

www.stpi.in
www.ibef.org
https://medium.com/@tally_97442/importance-of-tally-d2c418b530da

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