AN INTERSHIP REPORT ON ACOUNTING AND GST PRACTICES

PROCESS OF ACCOUNTING ABHISHEK RUIA & CO.

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF DEGREE
OF BACHELOR OF COMMERCE (ACCOUNTING AND FINANACE)

UNDER FACULTY OF COMMERCE

SUBMITTED BY
RAHUL GUPTA

TYBAF SEMESTER – VI
2022-23

UNDER THE GUIDANCE OF

Ms. Hetvi Dedhia

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

(AFFILIATED TO UNIVERSITY OF MUMBAI) VIDYALANKAR MARG,
WADALA (E), MUMBAI 400 037
 ACKNOWLEDGEMENT

My sincere efforts made me to accomplish the task of completing this project. I have taken efforts
in this project. However, it would not have been possible without the kind support and help of
individuals.

I would like to express my sincere gratitude to my Principal Dr. Rohini Kelkar. Wader for providing
the necessary facilities required for the completion of this project.

I am highly indebted to my professor Ms. Hetvi Dedhia for her valuable guidance which has
promoted my efforts in all stages of this project work.

Finally, my thanks and appreciation go to my classmates who have willingly helped me out with their
abilities.
 DECLARATION

I, Rahul Gupta hereby declare that the work embodied in this project work titled
“AN INTERNSHIP REPORT ON ACCOUNTING AND GST PRACTICES PROCESS OF A
CHARTERED ACCOUNTANT
ABHISHEK RUIA & CO.” forms my own contribution to the research work carried out under
the guidance of Prof. Hetvi Dedhia is a result of my research work. Wherever reference has been
made to previous works of others, it has been clearly indicated as such and included in the
bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.
Certified by

Assistant Professor Student

Ms. Hetvi Dedhia Rahul Gupta
 EXECUTIVE SUMMARY

The experience of working under a CA firm, such as ABHISHEK RUIA & CO., can be a valuable opportunity
for aspiring accountants to apply their academic knowledge in practical surroundings. During my six-month
internship program, I was engaged in the areas of accounts and taxation, assisting with data entry and gaining
practical knowledge on TDS Returns.

Working with small clients allowed me to gain experience in the basics of accounting while also assisting my
colleagues with their work. I was able to develop practical skills in areas such as communication, time
management, and data analysis, which are essential for a successful career in accountancy.

Abhishek Ruia & Co. had built a good reputation and professional relationships with consulting firms, which
helped to enrich their professional base for servicing their clients. This provided me with exposure to the
challenges and opportunities that arise in a professional accounting environment.

Overall, my experience of working under a CA firm was a valuable opportunity to gain practical knowledge and
apply my academic knowledge in real-world scenarios. I developed essential skills and knowledge, which will
be useful in my future career
 About the Industry

CA or Chartered Accountancy is a professional certification course that focuses on the practice of taxation,

accounting, auditing, financial assessment, strategy and budgeting, for an individual, business or an
organisation. CA course is conducted by the ICAI. After the Chartered Accountancy course completion,
aspirants can work in a company's taxation and financial sectors as consultants, auditors, financial
managers, and more.

CA Course Details

Degree Bachelors
Full Form Chartered Accountancy
Duration 5 Years
Age 17-25
Minimum Percentage 50%
Average Fees INR 2 LPA
Average Salary INR 7 LPA (Source: Pay scale)
Employment Roles Accountant, Financial Manager, Banker, Taxation Consultant,
Consultant and more

CA full form is Chartered Accountancy. The CA course duration is upto 5 years which deals with the financial
assessment, auditing, taxation, and accounting of companies. Chartered Accountancy Syllabus involves
study of corporate law, accounting, business law, financial management, etc.
Chartered Accountancy job scope is vast providing employment opportunities with roles such as finance
analyst, auditor, business consultant, etc. The CA course details contain all the information a student
requires to pursue the Chartered Accountancy course. Essentially, there are 2 levels to the Chartered
Accountant course. They are:

 CA Foundation
 CA Intermediate
 CA Final
CA course eligibility criteria, students must obtain a 50% aggregate in their 10+2 from a recognized institute
and board. In addition, students must give the required CA Entrance exam for the course. There is no age
limit to apply for the course.

CA Foundation Eligibility
The following are the prerequisites for the CA Foundation course:

 Candidates must have completed the 10th and 12th grades at an accredited educational institution.
 In addition, the candidate must achieve at least 50% of the grade 12 overall performance.
 Students of all ages can take the CA Basic Course.

CA Intermediate Eligibility
 Candidates must complete the CA Foundations programme and pass the CA Foundations exam to be
admitted to the CA Intermediate Course.
 Candidates also need a bachelor's or master's degree with a 50-60% overall score.

CA Final Eligibility
 Candidates must pass the mid-course exams in both groups.
 A four-week advanced integration course and soft skills is also required of applicants. Before the final
exam, aspirants must complete these skills within the last two years of on-the-job training.
 TABLE OF CONTENT

CHAPTER CONTENT PAGE

NO. NO.

1. INTRODUCTION 10
1.1 Introduction to organization’s
business sector
1.2 Introduction to the Organization
1.3 Mission, Vision, and objectives
1.4 Products and Services
1.5 Financial structure
1.6 Organization performance

2. CONCEPTUAL DISCUSSION 20

2.1 Objective of the study

2.2 Job description

2.3 Overview of Tally ERP9

2.4 Overview of GST

2.5 Overview of Auditing

2.6 Overview of Taxation

3. WORK DESCRIPTION 39
3.1. Tasks Assigned

4. MONTHLY REPORT 42

5. LEARNING AND CONCLUSION

 5.1 Behavioral learning from the
organization

5.2 Best practices observed in the

organization

5.3 Conclusion

5.4 Suggestions

6. Executive Summary
 CHAPTER 1. INTRODUCTION

1.1. Introduction of the business sector

The organization is working as Charted Accountant under the rules and regulation of ethics designed for CA
firms by ICAI (Institute of Chartered Accountant of India).

The ICAI is India’s largest professional accounting body under the administrative control of ministry of
corporative affairs, Government of India. It was established on 1 July 1949 as a statuary body under the
Chartered Accountants Act, 1949 enacted by the parliament for promotion, development and regulation of the
profession of Chartered Accountancy in India. The affairs of the ICAI are managed by a council in accordance
with the provisions of the Chartered Accountants Act, 1949 and its regulations, 1988. The council constitutes
of
40 members of whom 32 are elected by the Chartered Accountants and remaining 8 are nominated by the Central
Government generally representing the comptroller and Auditor General of India, Securities and exchange

Board of India, Ministry of Corporate Affairs, Ministry of Finance and other stakeholders. The Institute of
Chartered Accountants of India is the second largest professional accounting body in the world in terms of
number of membership and number of students after the AICPA. It prescribes the qualifications for a
chartered accountant.
1.2. Introduction to the Organization

Abhishek Ruia & Co. is a reputable chartered accountancy firm that has been serving clients in various
industries for many years. The firm has its office located in Goregaon west one of the busiest
commercial areas in Mumbai, India. Abhishek Ruia & Co. has a team of highly qualified and
experienced professionals who provide clients with the highest quality of accounting and taxation
services.

Abhishek Ruia & Co. offers a wide range of services, including audit and assurance, taxation, financial
planning, and business consulting. The firm caters to small and medium sized businesses and startups
across different industries, such as real estate, hospitality, manufacturing, and retail.

Abhishek Ruia & Co. has established a reputation for providing comprehensive and customized
accounting solutions to its clients. The firm's team of professionals is well-versed in the latest accounting
practices, standards, and regulations, ensuring that clients receive the highest quality of services.

The firm has a welcoming and professional environment, with state-of-the-art facilities that ensure
efficient and effective service delivery. The team at Abhishek Ruia & Co. values professionalism,
integrity, and transparency, ensuring that clients receive the best possible service experience.
Overall, Abhishek Ruia & Co. is a reliable and trustworthy accounting firm that offers customized
solutions to meet the unique needs of its clients. With a team of experienced professionals and a
commitment to providing excellent service, Abhishek Ruia & Co. has established itself as a leader in the
accounting industry in Mumbai.
 Scope Of Study

 Audit and Assurance: This area of study can focus on the auditing process, including the role of Chartered
Accountants in ensuring the accuracy and reliability of financial statements. It can also cover the various
types of assurance services offered by CA firms, such as reviews and compilations.

 Taxation: Taxation is a critical area of study for Chartered Accountants, and the scope of study may include
tax planning, compliance, and policy issues. It may also cover areas such as tax audits and appeals.

 Financial Accounting and Reporting: This area of study can focus on financial reporting standards and
their application, including the preparation and analysis of financial statements. It may also cover topics
such as accounting for business combinations and accounting for intangible assets.

 Management Accounting: This area of study can focus on the use of accounting information for decision-
making purposes, including cost analysis, budgeting, and forecasting. It may also cover topics such as
performance measurement and management control systems.

 Corporate Governance: Corporate governance is an important area of study for Chartered Accountants, as
they are often involved in ensuring that companies comply with legal and ethical standards. This area of
study may cover topics such as board structure, executive compensation, and risk management.

 Information Technology: With the increasing use of technology in business operations, Chartered
Accountants may need to have a solid understanding of IT systems and their role in accounting and financial
reporting. The scope of study in this area may cover topics such as data analytics, cybersecurity, and cloud
computing.
1.3. Mission, Vision and Objectives

Mission: -
Our mission is to provide top-notch financial and professional services that uphold the highest standards
of integrity and expertise. We aim to not only fulfill the present and future needs of our clients but also
aid them in achieving long-term success. In addition, we strive to establish trust, confidence, and loyalty
among our team members, partners, and customers. Our goal is to foster a dynamic and inclusive
environment that inspires innovative thinking, creative ideas, and challenges our staff to achieve their
optimal levels of success.

Vision: -

The firm’s vision is to be the premier auditing, accounting, tax and business consulting firm by every
measure that matters.

Objectives: -

The firm aims to offer its clients high-quality services in auditing, accounting, and taxation. It strives to
provide outstanding financial and professional services while maintaining the highest levels of reliability
and expertise.
Furthermore, the company endeavors to meet both current and future client requirements and help them
achieve long-term success. The business aims to expand its reach and become known regionally as the
top accounting firm providing comprehensive financial and professional services to individuals and
businesses.
 Limitations

Legal restrictions: CA firms are bound by various legal and ethical codes of conduct. They must adhere to these
regulations to avoid any legal repercussions.

Liability: Chartered Accountants are often held liable for any mistakes or errors that may occur in the course of
their work. This can lead to potential legal and financial risks for the CA firm.

Limited scope of work: Chartered Accountants typically focus on financial statements, auditing, and tax-related
matters. Therefore, they may have limited expertise in other areas such as management consulting, strategy
development, or business operations.

Resource constraints: CA firms may face resource constraints, such as limited staff or financial resources, which
can impact the scope and quality of services they can provide.

Client retention: Retaining clients can be a challenge for CA firms, particularly in highly competitive markets.
Client retention often depends on the quality of service provided, the fees charged, and the level of client
satisfaction.

Technological advancements: As technology continues to evolve, CA firms need to keep up with the latest trends
and innovations in the field. Failure to do so can lead to a competitive disadvantage.

They have a small staff with a limited skill set in many areas.
Less number of staff members.
Developments in technology are changing this market. TDK & Co. needs to adopt new technology and
adapt to the changed market realities.
Changes in government policies and procedures may act as a threat for the company.
A small change in focus of a large competitor might wipe out any market position achieved.
TDK & Co. has many competitors. Under certain circumstances, stiff competition can threaten the
margins and hence the survival of the firm.
1.4. Product and services: -

Auditing Services:

A CA firm provides various auditing services like internal audit, statutory audit, compliance audit,
concurrent audit, and tax audit. It also performs special audits like forensic audit, revenue audit, and
management audit to detect fraud, identify areas of improvement, and provide an independent opinion on
financial statements.
Accounting Services:
CA firms offer accounting services like bookkeeping, financial statement preparation, and analysis. They
also provide consultation services on accounting software, systems, and controls to enhance the
efficiency and effectiveness of the client's accounting function.

Taxation Services:

CA firms provide various taxation services like tax planning, tax compliance, and representation before
tax authorities. They also advise clients on tax implications of business transactions, mergers, and
acquisitions to minimize the tax burden.

Financial Consultancy Services:

CA firms offer a wide range of financial consultancy services like business valuation, financial planning,
capital budgeting, and risk management. They provide expert advice on financial matters to help clients
make informed decisions and achieve their financial goals

Corporate Finance Services:

CA firms also provide corporate finance services like project financing,

working capital management, and debt restructuring. They assist clients in raising funds, managing cash
flows, and optimizing capital structure to improve profitability.
 Legal Services:

CA firms provide legal services like company registration, compliance with company laws, and drafting
legal documents like agreements, contracts, and MOUs. They also offer secretarial services like
maintenance of statutory records and filing of annual returns.

International Services:

CA firms provide international services like cross-border taxation, transfer pricing, and compliance with
foreign exchange regulations. They also assist clients in setting up overseas operations, joint ventures,
and subsidiaries.

s
1.5. Financial Structure: -
Abhishek Ruia & Co. is a privately held partnership company, and as such, it maintains strict
confidentiality regarding its financial information and reports. Despite efforts to obtain this information,
the company has declined to disclose its financial structure, citing privacy and confidentiality concerns.
Therefore, the financial structure of the firm cannot be disclosed at this time.
1.6. Organization Performance: -
To the best of my knowledge and ability, I have assessed the overall performance of the organization,
and I found it to be above satisfactory levels based on the following criteria:

Customer: -

The organization's work quality is noteworthy, as evidenced by the thoroughness of report checking and
verification prior to final report submission. Moreover, the level of work quality is dependent not only
on the employee's work efficiency but also on customer involvement. Due to the high quality of work,
efficient process and delivery times, and a high level of customization catering to client's requirements,
the customer retention rate is impressive. Based on this, it can be inferred that customers are highly
satisfied with the services provided.

Financial:

Due to the unavailability of financial data and information, it is difficult to accurately assess the
organization's financial performance. However, given the organization's steady workflow and
considering the nature of the services offered, it can be concluded that the organization is a solid
financial performer.

Business Process:

require a high level of interaction and customization with the clients, making it difficult to automate or
massproduce internal business processes. The speed and quality of work are dependent on both the employee's
efficiency and the client's role. As there are no separate departments, there is no duplication of activities, and
processes are well-aligned, resulting in a streamlined workflow. Overall, the organization's business processes
seem to be efficient and effective in delivering high-quality services to clients.
 Chapter 2. Conceptual Description

2.1. Objective of study: -

In selecting Dattatray Cable Network for my internship, I gained numerous new skills and knowledge.
Prior to this experience, I only possessed theoretical knowledge of how companies operate. However,
through this internship, I have acquired practical experience and gained insights into the inner workings
of the organization, including how they achieve their goals and objectives in their unique work
environment.

This internship has afforded me the opportunity to grasp the essentials of business, including the elements
of strategic thinking, planning, and execution, and how these concepts can be implemented in a real-world
organizational context. The objectives of this internship program are as follows:

▫ To gain an understanding of the accounting operations of companies.

▫ To analyze commercial situations and provide recommendations.

▫ To apply theoretical knowledge to practical business scenarios.

▫ To acquire valuable business experience.

▫ To enhance communication skills.

▫ To practice time and task management.

▫ To learn how to multitask effectively.

▫ To establish professional contacts and relationships.

Overall, this internship has provided me with a broad range of skills and knowledge that will
undoubtedly be of great value in my future professional pursuits. I am grateful for the opportunity to
have worked with Dattatray Cable Network and to have gained practical experience in the realm of
business management and accounting.
2.2. Job description
During my internship, I made a conscious effort to apply the knowledge I gained during my academic
studies to enhance my abilities. My orientation session on the first day introduced me to the
organization's employees and their work responsibilities. My primary task was to perform data entry for

bank statements of clients using Tally ERP9, and I also assisted with the auditing process. Throughout the
internship, I was able to develop my skills and understanding of various aspects of accounting and
financial management. I am grateful for the opportunity to have worked with such a dedicated team and
for the valuable experience that I gained.

During my internship, I had the opportunity to undertake various tasks and gain practical experience in:

▫ Preparing books of accounts in Tally ERP9

▫ Performing data entry in Excel sheets

▫ Theoretical learning of various types of taxation and GST

▫ Handling TDS/TCS

▫ Managing ROC Compliance

▫ Filing GST returns

▫ Dealing with PTRC/EC.

These experiences provided me with a well-rounded understanding of accounting and financial

management and allowed me to develop my skills in these areas.

Software used:

• MS Office

• Tally ERP9

• TaxbasePro

• Webtel
• Genius
 3.3. Overview of Tally ERP9

1. Journal Entries: Tally ERP9 allows businesses to record journal entries easily, which helps in
keeping track of all financial transactions.

2. Sales Entry: The software enables businesses to record sales entries accurately, and also generates
invoices automatically, which saves time and eliminates errors.

3. Purchase Entry: Tally ERP9 also allows businesses to record purchase entries and generate purchase
orders automatically, which streamlines the procurement process.

4. Debit Note: Businesses can record debit notes in Tally ERP9 for any goods returned or when the
invoice amount is higher than the actual amount.

5. Credit Note: Credit notes can be recorded in Tally ERP9 when goods are returned, or when the
invoice amount is lower than the actual amount.

6. Cash Entries: Tally ERP9 enables businesses to record cash entries accurately, which helps in
maintaining cash flow.

7. Inventory Features: Tally ERP9 has powerful inventory management features that allow businesses
to manage their stock levels, purchase orders, and sales orders. It provides insights into inventory
movement, aging, and valuation, which helps businesses make informed decisions about their stock
levels.
8. Balance Sheet: The software generates a balance sheet automatically, which provides a snapshot of a
business's financial position at a given point in time.

9. Profit & Loss Account: Tally ERP9 also generates a profit and loss account automatically, which
helps businesses understand their revenue, expenses, and net income.
10. Ledgers: Tally ERP9 maintains ledgers for each account, including bank accounts, creditors,
debtors, and cash. It also generates reports that help in analyzing the financial health of the business.

In summary, Tally ERP9 is a powerful accounting software that offers a range of features to manage
financial operations effectively. It helps businesses to record financial transactions accurately, manage
inventory, generate financial statements, and maintain ledgers, among other functions.
 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.

 Rent

 Fees from professional and technical services.

 Payments to contractors subcontractors.

The withholdings amounts of TDS can be deducted from an invoice submitted by a supplier or from the
payment that is issued to the recipient or supplier. Examples of recipients and suppliers include contractors,
providers of professional services, employees and real estate landlords. Companies submit a TDS certificate to
each supplier on a monthly or yearly basis. The certificate includes the payments, as well as information about
the company and supplier. Companies must also submit an annual return to the government for each recipient or
supplier for the financial year. TDS certificate can be either Form 16 (R75I10A) or Form 26Q-P2P-IND
(R75I122EQ). Form 16 is the TDS certificate which an individual submits and Form 26Q is the TDS certificate
which a company submits to the tax authorities.

TDS must also be deducted from payments issued to third parties by both corporate and no corporate entities.
The entity must deposit the amount owed for withholding at any of the designated branches of banks that are
authorized to collect taxes on behalf of the government of India. The entity must also submit the TDS returns,
which contain details about the payments and the challan for the tax deposited to the Income Tax Department
(ITD).
 TDS RETURNS

TDS is a system whereby the income tax is deducted at the time of making some payments like rent,
interest, commission etc. The person making such specified payments is responsible for deducting the TDS
and paying the balance amount to the person entitled to receive such payment. The TDS amount deducted
must be deposited to the government within the due dates specified by the person deducting TDS. While it
is commonly assumed that the TDS is applicable only on salary income, but it is also applicable in many
other cases such as:

 Income from interest on securities and debentures.

 Income from interest other than those on securities.

 Income from dividends.

 Income from withdrawal of EPF (Before expiry of a certain period or if amount withdrawn is
beyond the limit specified)

 Payment to contractors/subcontractors/freelancers.

 Winnings from horse races, lottery, crossword puzzles or any game related wins.

 Income from rendering technical or professional services.

 Income from royalty, etc.

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:

Prevention of tax evasion: This mechanism ensures that the government collects a portion of the income
itself, chances of hiding income or tax defaults are minimized significantly.

Timely collection of tax.

Ease in filing tax returns: As the tax is automatically collected and deposited with the concerned authorities by the
deductor, it becomes easier for individuals to file their returns. If there are no other sources of income for a person,
once TDS has been appropriately deducted, they need not pay any additional tax during return filing.
 2.4. Overview of GST
GST (Goods and Services Tax) is an indirect tax that has been implemented in India since July 1, 2017.
It is a comprehensive tax system that replaces all the indirect taxes that were previously levied on goods
and services.

• Elimination of cascading effect of tax: Cascading effect of tax means tax- on-tax. Under the
GST bill, taxes are levied only on the net-value added portion, which eliminates the tax-on-tax
regime and in turn, lowers the cost of goods.

• Subsumption of indirect taxes: Most of the indirect taxes under the state and central
government are subsumed into goods and service tax.

• Increase tax compliance: Goods and service tax aims to increase tax compliance, especially in
small and unorganized businesses by simplifying the GST platforms registration and returns
filing process.

Here are some of the key features of GST, along with information about GST return filing, due dates,
return types, and GST laws:

I. GST Return Filing: Every registered taxpayer is required to file GST returns on a regular basis.
GST returns are documents that contain details of a taxpayer's income, purchases, and taxes paid.
The frequency of GST return filing depends on the type of taxpayer and the turnover of their
business.

II. Due Date: The due date for filing GST returns varies depending on the type of taxpayer and the
frequency of return filing. For example, monthly return filers must file their returns by the 20th
of the following month, while quarterly return filers have until the 30th of the following month.

III. Return Types: There are several types of GST returns that taxpayers may need to file,
including:

• GSTR-1: Outward supplies made by the taxpayer

• GSTR-2: Inward supplies received by the taxpayer

 • GSTR-3: Monthly summary of outward and inward supplies, along with taxes paid

• GSTR-4: Quarterly return for taxpayers registered under the

Composition Scheme

• GSTR-5: Return for non-resident taxpayers

• GSTR-6: Return for Input Service Distributors

• GSTR-7: Return for Tax Deducted at Source (TDS)

• GSTR-8: Return for Tax Collected at Source (TCS)

• GSTR-9: Annual return for regular taxpayers

• GSTR-10: Final return for taxpayers who have cancelled their registration

IV. GST Laws: GST laws are the set of rules and regulations that govern the implementation of
GST in India. The main laws governing GST in India are:

• Central Goods and Services Tax (CGST) Act, 2017

• State Goods and Services Tax (SGST) Act, 2017

• Integrated Goods and Services Tax (IGST) Act, 2017

• Goods and Services Tax (Compensation to States) Act, 2017

These laws define the rules for registration, tax rates, input tax credit, invoice requirements, and other
aspects of GST. They also provide the legal framework for the administration and enforcement of GST
in India.
V. Input Tax Credit (ITC): One of the key features of GST is the availability of input tax credit,
which allows businesses to claim credit for the tax paid on their purchases. This means that
businesses can reduce their tax liability by offsetting the tax paid on their inputs against the tax
collected on their outputs.

VI. GSTN (Goods and Services Tax Network): GSTN is the IT backbone of GST, which provides
the technology infrastructure for the implementation of GST. It is a not-for-profit organization
that maintains the central database of taxpayers, processes GST returns, and provides other
services related to GST.

VII. GST Council: The GST Council is a constitutional body that is responsible for making
recommendations to the central and state governments on matters related to GST. It is headed by
the Union Finance Minister and includes the Finance Ministers of all the states.

VIII. Simplified Tax System: GST has simplified the tax system in India by replacing multiple
indirect taxes with a single tax. This has reduced the compliance burden on taxpayers, eliminated
tax cascading, and made the tax system more transparent and efficient.

IX. Multiple Tax Slabs: GST has multiple tax slabs, which are based on the nature of the goods and
services. The current tax slabs are 0%, 5%, 12%, 18%, and 28%. The multiple tax slabs have
been introduced to ensure that essential goods are taxed at a lower rate, while luxury goods are
taxed at a higher rate.
2.5. Overview of Auditing
Audit refers to the process of examining the financial statements and other financial information of an
organization to verify the accuracy and reliability of the financial information presented. The purpose of
an audit is to provide assurance to stakeholders, including shareholders, lenders, investors, and the
general public, that the financial information presented by the organization is accurate, complete, and
presented in accordance with applicable accounting standards and regulations.

Audits are typically conducted by independent professionals who are qualified and licensed to perform
audits, known as auditors. Auditors are typically certified public accountants (CPAs) or chartered
accountants who have specialized knowledge and expertise in accounting and auditing.

➢ How It Works:
In the realm of corporate finance, audits typically refer to those conducted on public or private
corporations. Publicly listed companies are required by government agencies, such as the Securities and
Exchange Commission (SEC), to undergo an independent audit to validate their annual financial
reporting.

Private companies are not legally required to do so, but still conduct audits to install confidence in the company's
financial position among investors, banks, and other stakeholders. During an audit, various financial statements
such as the income statement, cash flow statement, and balance sheet are scrutinized. The audit provides
stakeholders and regulatory agencies with information on how the company earns and spends its money
throughout the fiscal year. The duration of an audit can range from a few months to an entire year depending on
the size of the company. Upon completion of the audit, the auditor issues a professional opinion on the accuracy
of the financial reporting.
 Stages of an Audit:

1. Planning Stage: In this stage, the auditor determines the objectives of the audit, evaluates the
risk factors, identifies the scope of the audit, and develops an audit plan. The auditor also
establishes communication with the company's management to obtain necessary information and
clarify the expectations of the audit.

2. Risk Assessment Stage: This stage involves a thorough evaluation of the risks associated with
the company's financial statements, internal controls, and processes. The auditor identifies the
areas of highest risk and develops appropriate audit procedures to address them.

3. Testing Stage: In this stage, the auditor performs various audit procedures to test the accuracy
and completeness of the financial information presented. This includes testing the company's
internal controls, verifying account balances, reviewing transactions, and analyzing financial
data.

4. Evaluation Stage: Once the testing is complete, the auditor evaluates the results of the audit
procedures to determine if the financial information presented is accurate and in compliance with
applicable accounting standards and regulations. The auditor also assesses the effectiveness of the
company's internal controls and processes.

5. Reporting Stage: In the final stage, the auditor prepares an audit report that provides an opinion
on the accuracy of the financial information presented by the company. The audit report also
highlights any areas of concern or weakness in the company's financial statements or internal
controls. The audit report is presented to the company's management and other stakeholders, such
as shareholders, lenders, and regulatory agencies.
6. Testing Stage: In this stage, the auditor performs various audit procedures to test the accuracy
and completeness of the financial information presented. This includes testing the company's
internal controls, verifying account balances, reviewing transactions, and analyzing financial
data.
7. Evaluation Stage: Once the testing is complete, the auditor evaluates the results of the audit
procedures to determine if the financial information presented is accurate and in compliance with
applicable accounting standards and regulations. The auditor also assesses the effectiveness of the
company's internal controls and processes.

8. Reporting Stage: In the final stage, the auditor prepares an audit report that provides an opinion
on the accuracy of the financial information presented by the company. The audit report also
highlights any areas of concern or weakness in the company's financial statements or internal
controls. The audit report is presented to the company's management and other stakeholders, such
as shareholders, lenders, and regulatory agencies.
 2.6. OVERVIEW ON TAXATION

Taxation is the process by which a government or a taxing authority imposes taxes on individuals and
businesses. This can include various types of taxes such as income tax, goods and services tax (GST),
and others. There are two types of taxes: direct taxes and indirect taxes. We have experience in preparing
income tax returns for clients, where we learned about various heads of income, tax calculations, and
deduction sections. This has provided us with a comprehensive understanding of tax compliance
requirements.

Purpose and Effects:

Taxation is a crucial means for governments to generate revenue to fund their activities and make
necessary investments in various sectors. Throughout history, governments have utilized tax revenue to
fund essential functions such as economic infrastructure, public education, healthcare, public security,
and research and development.

Additionally, governments have also utilized tax revenue to support cultural initiatives, public works
projects, and data collection and dissemination efforts. The fiscal capacity of a government is its ability
to raise taxes, which is a critical aspect of its financial management and overall governance.

Types of Taxes:
Taxes are of two distinct types:

1. Direct Tax

2. Indirect Tax
The difference comes in the way the taxes are implemented. Some are paid directly by you, such as the
dreaded income tax, wealth tax, corporate tax, etc. While others include indirect tax such as GST, etc.

Direct Tax:
Direct tax is a type of tax that is levied and paid by an individual or entity directly to the government. It
is based on the taxpayer's income or wealth and cannot be transferred to another person or entity. Here
are some examples of direct tax in India:
 1. Income Tax: It is a tax on the income earned by individuals, Hindu Undivided Families
(HUFs), firms, companies, and other entities. The tax rates vary based on the income earned
and the taxpayer's age and residential status.

2. Corporate Tax: This tax is levied on the income earned by companies and corporations
operating in India. The tax rates vary based on the size and nature of the business.

3. Capital Gains Tax: It is a tax on the gains earned from the sale of capital assets such as
property, stocks, and mutual funds. The tax rates vary based on the holding period of the asset
and the type of asset sold.

4. Securities Transaction Tax: This tax is levied on transactions in securities such as stocks,
bonds, and derivatives.

5. Wealth Tax: This tax is levied on the net wealth of individuals and HUFs. It is calculated
based on the value of assets such as real estate, jewelry, and investments.

6. Estate Duty: This tax is levied on the inheritance of property and assets from a deceased
person.

Indirect tax:

The term indirect tax has more than one meaning. States impose direct taxes on income and profits,
while indirect taxes are imposed on the consumption of goods and services. Unlike direct taxes,
indirect taxes are usually collected from the final consumer through an intermediary. Intermediaries
are responsible for passing taxes on to the government. The indirect tax rate is the same for
everyone and is irrelevant to the individual.

Here are some examples of indirect tax in India:

1. Goods and Services Tax (GST): It is a value-added tax that replaced various indirect taxes
such as excise duty, service tax, and value-added tax (VAT). GST is levied on the supply of
goods and services and is collected at each stage of the supply chain.

2. Customs Duty: This tax is levied on the import and export of goods. It is collected by the
Customs Department at the time of clearance of goods from the ports.
3. Central Excise Duty: This tax is levied on the manufacturing of goods. It is collected by the
Central Board of Indirect Taxes and Customs (CBIC) at the time of clearance of goods from
the factory.

4. State Value Added Tax (VAT): This tax is levied on the sale of goods within a state. It is
collected by the state government at each stage of the supply chain.

5. Entertainment Tax: This tax is levied on the sale of movie tickets, sports events, and other
forms of entertainment.
 CHAPTER 4: WORK DESCRIPTION

➢ Tasks Assigned

ROC Compliance:

• Ensure compliance with the provisions of the Companies Act, 2013

• Prepare and file various forms and returns with the Registrar
of
Companies (ROC)

• Maintain statutory registers and records as required by the law

• Assist in the conduct of board and shareholders' meetings

• Liaison with the ROC and other regulatory authorities as required

Tax Compliance:

• Ensure compliance with the provisions of the Income Tax Act, 1961

• Prepare and file tax audit reports, transfer pricing reports, and other statutory reports

• Liaison with tax authorities for assessments, appeals, and other matters
Monthly GST Returns:

• Prepare and file monthly GST returns

• Verify the accuracy and completeness of GST data

• Reconcile GST data with financial records

• Handle GST-related queries and issues

Monthly TDS/TCS Returns:

• Prepare and file monthly TDS/TCS returns

• Verify the accuracy and completeness of TDS/TCS data

• Reconcile TDS/TCS data with financial records

• Handle TDS/TCS-related queries and issues

Monthly Salary Working:

• Prepare monthly payroll and salary statements

• Verify the accuracy and completeness of payroll data

• Reconcile payroll data with financial records

• Handle payroll-related queries and issues

Audit Working:

• Assist in the conduct of internal and external audits

• Prepare audit schedules and working papers

• Liaison with auditors and other stakeholders

• Ensure compliance with audit requirements and standards

Balance Sheet Working:

• Prepare and finalize balance sheet and financial statements

• Ensure compliance with accounting standards and principles

• Reconcile financial data and accounts

 Chapter 5: Monthly report

1st MONTH:

In the first and second week of April 2022, I started my internship at Abhishek Ruia & Co. As a
newcomer in the corporate world, I began with the task of doing a Reconciliation of banks.The First
day was the process is to collect bank statements from the clients. In starting it was easy to collect
the data from the client but as the day passed clients became irritating and they were did not
receiving any calls, not giving data properly. The client provides bank statements for each account,
which the CA uses to reconcile the company's records with the bank's records. Then I had to
compares the bank statement with the company's records to identify any discrepancies. This may
include items such as bank fees, interest charges, and electronic transactions that have not yet been
recorded in the company's records.

In the third and fourth week of April 2022, I began with the task of entering small transactions into
the Tally Prime software as an assistant. Given my lack of practical experience, I started with basic
tasks and was introduced to the Tally software, fundamental accounting principles, creating a
company in the Tally software, managing ledgers and journals in Tally. My initial duties included
entering cash receipts from clients into an Excel sheet. My prior learning of advanced Excel and
Tally Prime with GST in SY proved helpful during my internship. In this week was primarily
focused on adjusting to the corporate working environment.
2nd MONTH:

During the internship at Abhishek Ruia & Co., I continued with tasks similar to the previous
week and had become proficient in passing purchase transactions in Tally. I was then given the
responsibility of taking over the sale of a reservation from a customer, which allowed me to submit
entries through their website for GST. This experience provided me with insights into the different
GST returns available on the GST portal, and how purchase and sales invoices are updated in the
portal. Additionally, I learned how sales and purchase transactions are totaled in the GST portal.
Overall, this week was a great learning experience that allowed me to gain practical knowledge of
GST, which complemented my theoretical understanding gained during my college studies.

During the end of the second month, I was assigned the task of reviewing entries made by
other employees in Tally since I had already gained mastery in using the software. This proved to be
a busy week for me, but an important task as I received reviews for my own entries. Through this
task, I was able to learn how to review and identify errors in entries made by someone else. I
highlighted errors and uncounted entries using a different color and made a report of the errors with
explanations. This report was then submitted to one of the senior colleagues. This task gave me
insight into how audits are conducted in different companies. Overall, it was a week of learning a
new job and gaining beneficial experience.
 3rd MONTH:

After gaining a solid understanding of Tally, I was given a new task of handling bank statements.
One of my colleagues, who was a full-time employee, was responsible for contacting customers and
preparing bank statements. As an intern, I was assigned the task of updating the statements in the
company's system under the client group. Some customers provided physical copies of their bank
statements, while others provided PDF files. My job was to input the statement data into an Excel
spreadsheet with columns for dates, details, withdrawals, deposits, balances, and more. I had to be
careful to enter the data accurately, as even a small mistake could throw off the entire balance.
Checking the account balance after entering the data was also essential. Although this assignment
was challenging, it provided me with a valuable learning experience. Overall, this week was an eye-
opener for me.

By end of the 3 rd month I was going for an Internal Audit at “Art Of Time“, well it was a largest watch store
in India it opened its first 'shop in shop' concept boutique in 2015. Mr. Gaurav Bhatia and Bharat Kapoor, as owners
of Art of Time share a common passion for High end luxury watches but represent a broad range of motivation
which inspired them to open Art of Time. They have total Five boutiques in India. In Mumbai they have Two
branches, one was in Bandra and second one in Nepeansea Road. The third boutique was in Pune phoenix market
city, and the fourth & fifth boutiques were in Chennai, called as Montblanc – Palladium & Montblanc – Express
Avenue.
I was an Auditor for Mumbai boutiques which was a biggest boutiques and all the Accounting transaction &
entries were done by them. For past Three years they were maintaining records in Tally prime, They want to
become an advanced in technologies and wanna make easy to keep records & safely, so they had decided to buy an
sales retail software which is called as Gofrugal: Retail ERP. It was an easy to maintain sales data and keeping
records, but the problem was that no one knows about the software and it was totally complicated, and in the
Accounting Departments there were only two employees, and they were handling all the Five boutiques Accounting
Transaction by themselves.
So they had Appointed Two CA’s for understand the new software and teach them. We had a Training session and
some meetings with software company but it was too hard to understand, because I was totally new on this, and my
colleagues were CA Qualified and they can easily rectify errors and solve them, and I don’t have a clue what to do
but there is an my colleagues and she’s was from NPV CA firm, and she was very nice with me all the time, She
really like a mentor and friend to me. I was very comfortable with her, she teached me a lot of things and she
always takes my side. As the time passed we were really understanding how to make entries in the Receipts
voucher, payment voucher, contra voucher, etc. Basically we were trying to do all the past 3 years entries into the
software and make it live so that whatever all the boutiques employees will make entries it can show directly to the
main software, so we can easily find the outstanding expenses reports. First we were trying to
 6.1: Behavioral learning from the organisation: -

Performance and Productivity:

In just a month of working as an Account Assistant, I experienced significant personal growth. The
thrill of applying theoretical concepts to real-life situations was invigorating, and I gained a wealth
of knowledge. My productivity and inquisitiveness continued to rise with each passing day. To plan
effectively, it is crucial to prioritize tasks and delegate responsibilities.

Communication:

Effective communication is a critical component of any workplace as it can significantly enhance

employees' self-esteem, self-confidence, productivity, and job satisfaction. Moreover, it fosters
teamwork and cooperation among team members, ultimately leading to better outcomes for
individuals, teams, and organizations.
 Customers and clients are vital to the success of any business. Once a company has gained the trust
of its clients, it must maintain that trust over the long term to ensure a steady stream of income. This
can be achieved by providing high-quality services and engaging in good and effective
communication with them.

Goal setting and planning:

While many people may desire to achieve certain outcomes, realizing those goals requires a
wellthought-out plan, which surprisingly is often overlooked. Planning involves defining clear
objectives, identifying actionable steps, and making a commitment to see the plan through to
completion. Even determining a primary goal can be challenging when various issues compete for
attention. Effective planning necessitates the prioritization and delegation of tasks. Trying to tackle
everything at once is unrealistic, but by focusing on the most critical tasks and enlisting assistance,
significant progress can be made.

Conflict Resolution:

During times of discord or imbalance, it is crucial for employees to have the ability to address any
tensions between themselves and resolve disagreements effectively. This is a key aspect of
communication, but it requires a specific skill set that can be challenging to acquire due to
reluctance and the intimate nature of the workplace. Ignoring conflicts and allowing them to fester is
a detrimental practice that can spread rapidly, ultimately undermining relationships and decreasing
productivity for both individuals and teams. To mitigate these issues, it is essential to actively
engage in facilitating and managing these emotional interactions over time, enabling employees to
maintain perspective and navigate uncertainty more effectively.

By actively managing and facilitating interactions between employees, workplace tensions can be addressed
in a productive manner that promotes better communication, teamwork, and collaboration. This requires a
willingness to confront difficult issues, listen to different perspectives, and work together to find mutually
acceptable solutions.

Furthermore, it is important to foster a culture of openness and trust where employees feel
comfortable sharing their concerns and opinions without fear of retribution or judgment. This can
help to prevent conflicts from arising in the first place, and when they do occur, they can be
addressed more easily and quickly.

Time management:

Effective time management is crucial for completing tasks within designated timeframes, increasing
individual productivity and efficiency.

To achieve targets and avoid an excessive workload that can cause stress, employees must learn to
manage their time effectively in the workplace. By managing time well, individuals can plan their
career path, prioritize tasks, become more punctual, and develop a sense of discipline.
In addition, effective time management can also result in improved work quality and increased job
satisfaction. When employees are able to complete tasks efficiently and within deadlines, they are
less likely to feel overwhelmed or stressed, leading to a more positive work environment.

Moreover, time management skills are highly valued by employers as they demonstrate an
employee's ability to prioritize, manage workload, and meet deadlines. This can lead to
opportunities for career advancement and increased responsibilities within the workplace.

In summary, time management is an essential skill for employees to master, leading to improved
productivity, reduced stress, and increased job satisfaction. It also demonstrates important qualities
that employers value, leading to potential career growth and advancement.
BEST PRACTICES OBSERVED IN THE ORGANISATION: -

• Discrimination based on factors such as caste, creed, color, or gender is strictly prohibited in the
workplace. Every individual is treated equally, fostering an environment where coordination and
the exchange of opinions and ideas are made easier. The mentor and colleague are always willing
to assist the intern with any issues he may face.

• The team is characterized by a disciplined and dedicated work ethic that motivates each member to
strive for perfection, learn, and maximize their potential. The competitive environment is perfect
for challenging professional responsibilities and exceeding expectations.

• The organization fosters a generous working atmosphere where employees are not burdened with
excessive workloads. They are free to work overtime to complete assigned tasks, but are not forced
to do so. All work and goals are completed within the specified timeframe.

• The employees are always full of energy and ready to work, exhibiting a strong commitment to
improving their work efficiency. Even when the owner is not present, they never miss a working
day.

• The owner excels in customer service, always maintaining a humble demeanor. Even in
challenging situations, such as dealing with customers in a bad mood, the owner remains
composed, expressing gratitude and treating them with respect. Mistakes are corrected with a smile
and gentle sarcasm, fostering a positive learning environment.

• The organization values teamwork and collaboration. Employees work together to achieve
common goals and share ideas to improve the quality of their work. They are always willing to
lend a helping hand to colleagues who need it.

• The workplace is well-organized and conducive to productivity. All necessary tools and equipment
are provided, and the office is kept clean and tidy at all times. This ensures that employees can
work efficiently and without distractions.

• The organization encourages professional growth and development. Employees are given
opportunities to attend training sessions and workshops to enhance their skills and knowledge.
They are also provided with constructive feedback to help them improve their performance.
• ▫ The management team is approachable and supportive. Employees feel comfortable sharing their
concerns and ideas with their supervisors, who are always willing to listen and offer guidance. This
fosters a positive work environment where employees feel valued and respected.

▫ The organization prioritizes work-life balance. Employees are encouraged to take breaks and
prioritize their well-being, which ultimately leads to greater job satisfaction and productivity.
6.3. CONCLUSION: -

In conclusion, during my internship at Abhishek Ruia & Co., I gained valuable knowledge and
practical experience in a professional and specialized network firm. The company has a nationwide
network and is committed to serving its customers and employees. I learned how to apply my
theoretical knowledge and improve my decision-making skills.

Abhishek Ruia & Co. strives to meet the needs and demands of its clients while adhering to legal
requirements. The Institute of Chartered Accountants of India has conducted a Quality Control
Review and issued a satisfactory report indicating that the firm has conducted audits in compliance
with International Standards of Auditing.

Overall, my experience at Abhishek Ruia & Co. has been a valuable one. The firm has demonstrated
its professionalism, expertise, and commitment to its clients through its wide network and
customeroriented approach. During my internship, I gained practical experience and developed my
decision- making skills, which will be useful in my future endeavors.
The firm also ensures that it meets its clients' needs and complies with legal requirements. Its audits
have been conducted in accordance with International Standards of Auditing and have received a
satisfactory QCR report from the Institute of Chartered Accountants of India.

I am grateful for the opportunity to have worked with such a reputable and well-respected firm and
look forward to applying the knowledge and skills I have gained in my future career.
 SUGGESTIONS: -

Having worked at Abhishek Ruia & Co., I have come to understand the significance of applying
theoretical knowledge practically. I highly recommend that fellow students also consider gaining
work experience with a corporate firm, as it can serve as a valuable test of our knowledge and
provide clarity in making career choices.

Additionally, I would highly recommend that every student gain practical experience by working at
a corporate firm. This can provide a valuable opportunity to put theoretical knowledge into practice
and gain a better understanding of potential career paths. It can also serve as a litmus test to assess
one's knowledge and skills. Overall, I believe that a combination of theoretical knowledge and
practical experience is essential for professional growth and success.