CHAPTER 1

INTRODUCTION TO INDUSTRY

PLASTIC INDUSTRY PROFILE

The plastic industry back dates to the early 1900s, but it wasn’t until the 1950’s that the mass
production of plastics began. Since then, more than nine billion metric tons of plastic
materials have been produced worldwide, with plastics becoming a ubiquitous part of human
life. The global plastic market was valued at 580 billion U.S. dollars in 2020 and is expected to
experience considerable growth over the next decade. Some of the key players within the plastics
industry include ExxonMobil, Sinopec, and LyondellBasell.

Plastics have revolutionized our lives, creeping into every nook and corner of our homes and
Offices. However, India’s per capita consumption of plastics is still 6 kg compared to 25 kg in
developed countries. Consumer plastics mainly comprise polymers such as polypropylene, high
and low density polyethylene, and vinyl chloride. Broadly plastics can be classified into two
types namely Thermosetting and Thermoplastic. The type of plastics includes HDPE, LDPE,
PVC, PP, PS, PETE and vinyl plastics, to name a few.

The plastics industry is highly fragmented. There are about 22,000 plastic processing units,
of which three-fourth are in the small-scale sector, which also accounts for a quarter of the total
polymer consumption. About 30 per cent of the total polymer consumption accounts for recycled
plastic. Plastics have a high volume-to-weight ratio, which makes their collection and transport a
major cost factor.

The Indian plastics industry has been growing at a phenomenal rate of 15 per cent over the years.
Thus its potential is being utilized properly. The boost in the plastics industry is due to the rapid
growth of segments like electronics, packaging, healthcare, consumer durables and
telecommunication sectors. Annually around six million tones of plastic is produced in the
country, with the plastic packaging sector growing fastest.

1
The plastics industry manufactures polymer materials—commonly called plastics—and offers
services in plastics important to a range of industries, including packaging, building
and construction, electronics, aerospace, and transportation.

It is part of the chemical industry. In addition, as mineral oil is the major constituent of plastics,
it therefore forms part of the petrochemical industry.

Besides plastics production, plastics engineering is an important part of the industrial sector. The
latter field is dominated by engineering plastic as raw material because of its better mechanical
and thermal properties than the more widely used commodity plastics.

The global plastic market size was valued at USD 439.28 billion in 2021. The market is
projected to grow from USD 457.73 billion in 2022 to USD 643.37 billion by 2029, exhibition a
CARG of 5.0% during the forecast period. The global COVID-19 pandemic has been
unprecedented and staggering, with plastics experiencing lower-than-anticipated demand across
all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited
a decline of 2.5% in 2020 as compared to 2019.

Plastics, also known as polymers, are used to manufacture a wide variety of products ranging
from paper clips to spacecraft due to their versatility, easy manufacturing, mold ability,
lightweight, waterproof nature, and low cost. They are traditionally derived from natural gas and
petroleum. The depleting sources of polymers have encouraged manufactures to use renewable
sources. The plastics manufactured using renewable biomass sources, such as corn starch,
sawdust, vegetable fats and oil, and food waste, is called bioplastics.
COVID-19 IMPACT
In the wake of the COVID-19 pandemic, the plastic demand from the automotive and building
and construction industries has declined substantially. This decline was associated with
decreased manufacturing activities in these industries along with lockdown restriction imposed
globally. Additionally, the significant drop in prices of crude oil due to the decline in demand
and lower storage capacity for oversupply reduced market growth.

2
Rising Demand for Plastic from Packaging Industry to Drive the Market
The product demand is advancing in widespread industries, such food & as beverage, consumer
goods, automotive, and electrical & electronics. The increasing demand for packaging material
from the food & beverage industry is driving product consumption globally. Food manufacturers
prefer to use packaging that minimizes food quality degradation and avoids contamination. The
ability of plastic to act as a barrier between food products and the external environment is fueling
the demand.

Besides, the ability of polymers to defend against physical stress and offer high durability is
increasing their usage in sports, fashion, polymer clay, and toy-making. Moreover, they are easy
to mold and offer flexibility to produce packaging in any shape and size. In the textile sector,
their utility is surging owing to their high elasticity, durability, and enhanced visual appeal.
Moreover, the rigid nature of polymers makes them suitable for packaging automotive and
electrical spare parts. Thus, the increasing application across food & beverage, textile, electrical
& electronics, automotive, and consumer goods industries is augmenting the plastics industry
growth.

3
Polyethylene segment to lead the market due to its rising adoption in packaging
products
Based on type, the market is segmented into polyethylene, polyethylene terephthalate, polyvinyl
chloride, polypropylene, polyamide, acrylonitrile butadiene styrene, polycarbonate,
polyurethane, polystyrene, and others. Amongst these, polyethylene and polypropylene (PP) are
the major types due to their increased demand from the end-users such as packaging and
automotive. Several manufacturers use polymers for packaging their products as they are durable
and act as a barrier between moisture and the product. The usage in the automotive industry is
increasing as manufacturers are reducing the weight of the vehicle to increase efficiency and
minimize carbon emissions.

Polyvinyl chloride (PVC) is mainly used in producing pipes & fittings owing to its numerous
advantageous properties such as high modulus of elasticity, electric insulation, resistance to
chemicals, and thermal insulation. The construction industry uses PVC products such as doors,
windows, and frames due to their longer life cycle, enhanced looks, and easy material
availability. Polyethylene terephthalate (PET) is used on a large scale for packaging and bottling
applications. It observed high demand from the packaging of food & beverage industries as it is
non-toxic, lightweight, strong, and flexible nature, PET is also the preferred material for 3D
printing.

Polyamide is majorly used in the textile industry owing to its solid and flexible properties. It
exhibits good elasticity, high tensile strength, and is wrinkle-proof. These benefits make it
suitable for usage in clothes, mats, and other products. Polyurethane, in the form of foam,
observed high demand in the furniture and automotive industries. Polycarbonate is mainly used
for electrical & electronics applications due to its high electrical insulation property.

Acrylonitrile Butadiene Styrene (ABS) is a rigid and sturdy polymer that provides resistance to
chemicals. Hence, it is used in camera bodies, housing appliances, packing crates, luggage.
Polystyrene has and exhibited high demand from the electronics and packaging industries owing
to its insulating and cushioning properties.

4
INDIAN PLASTICS INDUSTRY AND EXPORTS
Indian plastic industry market is one of the leading sectors in the country. The history of the
plastic industry in India dates back to 1957 with the production of polystyrene. Since then, the
industry has made substantial progress and has grown rapidly. The industry is present across the
country and has more than 2,000 exporters. It employs more than 4 million people in the country
and constitutes 30,000 processing units; among these, 85-90% belongs to small and medium
enterprises. India manufactures various products such as plastics and linoleum, house-ware
products, cordage, fishnets, floor coverings, medical items, packaging items, plastic films, pipes,
raw material, etc. The country majorly exports plastic raw materials, films, sheets, woven sacks,
fabrics, and tarpaulin. The Government of India intends to take the plastic industry from a
current level of Rs. 3 lakh crores (US$ 37.8 billion) of economic activity to Rs. 10 lakh crores
(US$ 126 billion) in 4-5 years.

Ten Plastic Parks have been approved in the country by The Department of Chemicals and
Petrochemicals. Among these, 6 plastic parks have received final approval from the following
states – Madhya Pradesh (2 parks), Assam (1 park), Tamil Nadu (1 park), Odisha (1 park) and
Jharkhand (1 park). These parks are intended to boost employment and attain environmentally
sustainable growth.

5
EXPERT TREND

6
During 2021-22, India witnessed a huge growth in exports in terms of value over 2020-21.
Overall, the total plastics exports in 2021-22 recorded a sharp growth and increased by 35.4%
over the last year. The exports of human hair, pipes & fittings and FRP & composites in 2021-22
increased by 100%, 67% and 48% over 2020-21, respectively.

The cumulative exports of plastics and related materials during 2021-22 were valued at US$
13.34 billion. This was a 33.4% increase from the 2019-20 exports valued at US$ 10 billion.
Plastic raw materials were the largest exported category and constituted 30.7% of the total
exports in 2021-22; it recorded a growth of 26.5% over the previous year. Plastic films and
sheets were the second largest category, comprising 15.2% of the total exports, and grew 32.7%
over the previous year.

In May 2022, the exports of plastics and linoleum from India were valued at US$ 1,073 million.
During the same period, medical items of plastics; plastic films & sheets; plastic pipes & fittings;
FRP & composites; packaging items; cordage fishnets & monofilaments; and miscellaneous
products recorded strong growth. The cumulative exports for April and May 2022 grew 2.6%
yoyo to US$ 2,173 million.

EXPORT DESTINATION

India exports plastic to more than 200 countries in the world. The top 5 consumers and
houseware product importing countries are USA, Germany Japan, the UK and France. India
largely exports plastic and related products to USA, China, UAE, Germany, Italy, the UK,
Bangladesh, Nepal, Turkey, France, Viet Nam, Indonesia, etc. The total value of exports to USA,
the largest consumer of the Indian plastic industry, stood at US$ 1,485.8 million in 2020-21, an
increase of 8.2% yoy. China is the second largest consumer of plastic export products from India
and the total value of exports stood at US$ 1,266.08 million, an increase of 20.9% yoy. USA and
China constituted 15.0%, and 12.8%, of the total plastic exports in 2020-21.

The total plastic export from India to France during 2020-21 was around US$ 162 million. In
order to boost exports to France and Europe, the PLEXCONCIL collaborated with Indo-French
Chamber in the first quarter of 2021-22. The Minister of Commerce and Industry, Consumer
Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, recently urged the
industry to adopt international standards to help it expand its global footprint. India has recently
7
signed a free-trade agreement with UAE and Australia, which will give the plastics industry new
opportunities.

GOVERNMENT INITIATIVE

The Ministry of Commerce & Industry of India aims to increase the plastic exports of the
country to US$ 25 billion by 2025. Multiple plastic parks are being set up in the country in a
phased manner that will help improve the plastic manufacturing outputs of the country. Under
the plastic park schemes, funds of up to 50% of the project costs or a ceiling cost of Rs. 40 crore
(US$ 5 million) per project.

Government initiatives like “Digital India”, “Make in India”, and “Skill India” will also boost
India’s Plastic industry. For instance, under the “Digital India” program, the government aims to
reduce the import dependence of products from other countries, which will lift the local plastic
part manufacturers.

The government also launched a program for building Centres of Excellence (CoEs) to develop
the existing petrochemical technology and promote the research environment pertaining to the

8
sector in the country. This will aid in promoting and developing new applications of polymers
and plastics in the country. Additionally, about 23 Central Institute of Plastics Engineering &
Technology (CIPET) have been approved to accelerate financial and technological collaboration
for promoting skills in chemicals and petrochemicals sector.

GROWTH RATE AND PLASTICS: THE SIZE OF AN INDUSTRY

The compounded annual growth rate of the global plastic industry between 2010-2019
was 3.5% and is expected to grow at a CAGR of 3.4% between 2021-2028. Estimates put India’s
plastic industry at a CAGR of 10% in volume in 2015 where production in 2010 was 8.3
MMTPA and 13.4 MMTPA in 2015.  India exported approximately USD 3.26 billion worth of
plastic raw material in the financial year 2021 (IBEF, GOI). Estimates pitch the market size of
the plastics industry in 2025 to grow at a CAGR of 8 – 10% until 2025. The Indian Chemicals
and Petrochemicals industry, of which plastics is a part, is expected to harbor investments worth
Rs. 8,00,000 crores by 2025 (FICCI press release May 2021). The Plastindia Foundation—body
of associations, organizations and institutions connected with plastics, emphasizes the correlation
between GDP and polymer consumption. Image 1 illustrates the fairly high correlation between
GDP and polymer consumption from 1990 till 2022.

The growth rate of the Indian plastics industry in 2011 was one of the highest in the world, with
plastics consumption growing at 16% per annum (compared to 10% in China and 2.5% in the

9
UK) (British Plastics Federation, 2011). Plastics have been called the new coal (Beyond Plastics
October 2021) and the industry is unfortunately set to expand.

According to Tata Strategic Analysis, India in 2018-19 was the largest manufacturer of lami
tubes and BOPP (Biaxially oriented polypropylene) tubes, and had the largest Rotomolded tank
market in the world. India is the only producer of PBI (Polybensemidazole) in the world and is
the second-largest exporter of FIBC (flexible intermediate bulk container) bags and the fifth-
largest producer of PP (Polypropylene). These plastics are used in various industries, especially
for packaging and transportation.

COMMODITY PLASTICS

Commodity plastics are the most used in items of everyday use and importantly in single use
plastics (SUP). We shall therefore focus on this type of plastics in this paper as they have the
most detrimental impacts on the environment and people. The following table shows the end use
of each of the commodity plastics.

Indian plastics industry also delivers plastic materials to many other industry such as
automotive, consumer packaging, & electronics. Over the past few decades, the demand for
Plastic has developed by 8 percent yearly. A similar development rate is anticipated to
continue during the forecast period. The progress rate of the plastics industry in India is
among the top in the world, with plastics consumption rising at 16 percent per year.

Considering a rising middle class with low per capita consumption of plastics. This high
progress rate is expected to continue, as the per capita consumption of plastics will
certainly increase. Although India’s plastics industry has been hit by the nation’s general
economic emergency over the past 2 years, with the weakening rupee, underlying economic
movement rests strong as the use of plastic is increasing in more & more segments, opening
new markets & substituting traditional materials.

10
India Plastics Market key player

 Reliance industries
 Tipco Industries Ltd.
 Rajiv Plastics ltd.
 LG Ploymers India
 Milacron India Pvt. Ltd.
 Borouge (India) Pvt. Ltd.
 DCM Shriram

11
  Others

CHAPTER 2

COMPANY PROFILE

BAJAJ NYLON & PLASTICS

Established in 1987, BAJAJ NYLON & PLASTICS has made a name for itself in the list of top
suppliers of polythene bags in India. The supplier company is located in Faridabad, Haryana and
is one of the leading sellers of listed products.

BAJAJ NYLON & PLASTICS is listed in trade India’s list of verified sellers offering supreme
quality of Side & Bottom Sea led Polythene bags etc. buy polythene bags in bulk from us for the
best quality products and service.

12
  We were established in the year 1987. 

 Under the able guidance of our founder Mr. R.K Bajaj and Co-Founder Mr. A.K Bajaj,
we are able to create a niche in the industry

 One of the prominent manufacturers, suppliers and exporters of all kinds of packaging
materials & supplies.

 The business experience and far sightedness helped us to achieve a constant growth and
development in these years.

THE OFFICE BLOCK

VISION:

 Here at Bajaj Nylon & Plastics we focus on Customer Satisfaction to the fullest.
 We aim to provide the best packaging solutions with customer satisfaction, quality
assurance and a congenial working environment.
 We strive to offer the finest quality services, timely delivery and competitive prices to all

13
 Our client.
MISSION
 Our primary objective is to satisfy our customers to the fullest so that the customer does
not have any complaints of any sort. We aspire to become the leader for the plastic
packaging industry.
 To supply packaging material all over India.

THE MANAGERIAL STAFF

NAME DESIGNATION
R.K. BAJAJ MG. PARTNER
MAYANK BAJAJ PARTNER
NARESH BAJAJ PRODUCTION AND PLANNING
MANAGER
SAURABH BAJAJ QUALITY CONTROL MANAGER

QUALITY POLICY OF BAJAJ NYLON AND PLASTICS

Our Quality policy is to achieve maximum Customer Satisfaction by manufacturing and

supplying product of consistent good quality through training of all employees and constantly
upgrading our technology. We shall endeavor to have continual improvement through innovation
and up gradation of processes. We are an ISO 9001: 2015 & ISO 14001:2015 Certified company.

14
ISO 9001 & ISO 14001

 SGS TESTING REPORT

The SGS reports shown above are for the raw materials used for the production of the plastic as
well as the ink used for the printing process.

15
EVNIRONMENT POLICY OF BAJAJ NYLON & PLASTICS

PRODUCT PORTFOLIO

We are one of the leading manufacturers, suppliers and exporters of a wide range of packaging
materials & supplies. These materials are made of the best quality of materials, and they cater the
needs of many industries. The main products which we offer are mentioned below :

 Plain/Printed Polythene Bags and Sheets

 Plain/Printed EPE Foam Bags and Sheets

 Hangar Cut Polythene Bag

 EVA Polythene Bag

 Shrink / Stretch Films

 BOPP Reseal-able Bag

16
  Compostable Bags

 Bio Degradable Bags

 Bubble Bag

 Specialized Box Type  Cover 

 Side-Sealed Self Adhesive Tape

 VCI Polythene Bag (Anti-Rust)

 Plain/Wax Coated Polyester Thread

 Plain/Wax coated Nylon Thread

 Fiberglass Insulation Sleeve

HIERARCHY OF POWER IN ORGANIZATION

Chairman cum Managing Director

  Directo Director General

r(purch (commercial) Manager &
MR

Incharge Incharge Incharge

(Accounts) QA & Marketin
R&D
Product
Developmen

17
BAJAJ NYLON & PLASTICS CUSTOMER BASE

 Home Appliances Sector

 Automotive  & Automotive ancillary sector

 Electronics Sector

 FMGC Industries

 Export Houses

 Glass Industries

 Tyre Industries

 Fan, Cooler and Motor Industry

FEW PRODUCTS OF BAJAJ NYLON AND PLASTICS

1) Zip Lock Polythene Bags:

Zip Lock Polythene Bags Clear Plastics Packaging bags not only uplifts image
of the product with its trendy and stylareh look but also gives a very high
retaining value to its customer. These zip lock polythene bags are mainly used
for confectionery items etc.

18
 2) Slider Zip Polythene Bags:

Slider zip polythene bags are widely used in garments cosmetics and
imitation jewellery a high retain value are always edge for slider Zip
polythene bags. These slider zip polythene bags are considered as
women’s best friend to preserve their cosmetics foods and jewellery
and also as post usage of pouch.

3) Side Amp Bottom Sealed Polythene Bags:

These side amp bottom sealed polythene bags are fabricated

using bio-degradable plastic and are easily be decomposed
under light heat and stress. Available in different sizes and
colors these are used for different purposes like garment
industry food material etc.

4) Self Adhesive Poly Bag:

Self Adhesive Poly Bag Our Company are engaged in manufacturing of

superior quality Self Adhesive Poly Bag These Self Adhesive Poly Bag are
made from quality raw materials and are suitable for packaging of mens
shirts dvd etc.

5) Hanger Cut Polythene Bags:

Hanger Cut Polythene Bags Our Hanger Cut Polythene Bags Best edge features pre-slit hanger
hole contoured shoulder shape that fits standard hangers easily Our Company offer our clients
quality and durable Polythene Bags amp Sheet that are cost-effective and a feasible packaging
solution than other counterparts.

6) Gusseted Polythene Bags:

Gusseted Polythene Bags These Gusseted Polythene Bags are cost

effective and eco friendly in nature Moreover these bags are available in
different sizes shapes and colors. These types of bags are mainly used in

19
garments business like shopping malls readymade garments shops and many others. Our
Company also customizes these bags according to the requirements of the clients.

7) Bubble Bags:

Bubble Bags These Bubble Bags are very useful in packaging of mainly electronic items such as
dvd mobile phones and many others. Electronic items are very sensitive
items and they need to be packed very well so that they don t get
damaged. The main feature of these bags are that each bubbles contains
air in them which provides as an additional cover for the items packed.
These bags are mostly demanded by electronic company and we
customize the bags according to the requirements’ of the clients Our range
of bubble bags are available in various shapes and sizes.

8) Bag Type Poly Bag:

Box Type Poly Bag These Box Type Poly Bag is clear and moareture resaretance. Our Company
customizes these products according to the requirements of the clients. All these
kinds of bags are mainly used for washing machine amp refrigerators.

MACHINERIES OF BAJAJ NYLON AND PLASTICS

1. Roto Gravure Printing Machine - 1 For two colour printing

Two Colour

20
2. Flexo Printing Machine- Six 1 For six colour printing
colour
3. Flexo Printing Machine- Three 1 For three colour printing
colour (Capacity upto 60”- 65”

FEWS OF PRINTING SAMPLES

 The Image shows that we have all the type of printing is it precision printing to small
sizes printing to large size continuous role printing “In-house”.

 Specialize in bigger sizes with printing for home appliances

and electronic goods and also manufacturing printed foam
sheets box type covers.

FINANCIAL INFORMATION OF BAJAJ NYLON &

PLASTICS

21
 o Name and Address of Bankers: ICICI Bank, Neelam Bata Road, NIT, Faridabad
o Sales Value: (FY 2020-21) : Rs. 1694 Lakhs
o GSTIN: 06AAAFB7914N1ZB

PERFORMANCE

 
FY YEAR ANNUAL TURNOVER (IN
CRORE RS.)
2013-2014 8.64
2014-2015 8.92
2015-2016 10.47
2016-2017 12.12
2017-2018 13.70
2018-2019 13.50
2019-2020 14.47
2020-2021 16.95

ANNUAL TURNOVER (IN CRORE RS.)

18
16
14
12
10 ANNUAL TURNOVER (IN CRORE
RS.)
8
6
4
2
0
2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020-
2014 2015 2016 2017 2018 2019 2020 2021

22
 The Financial Assurance Certificate provided by the D&B in collaboration
with NSIC

LAB AND TESTING FACILITIES:

DESCRIPTION OF RANGE LEAST COUNT

INSTRUMENTS AND
GAUGES AVAILABLE

 DIGIMATIC
MICROMETER a) 0.001-25mm 00.001 mm

 EXTERNAL
MICROMETER b) 0.010-25mm 0.10
0.11 mm/ 0.0005 inch
 DIGIMATIC
c) 0.01-150mm/ 0.0005-6 inch
CALIPER
d) 01-3000 (3 Mtr.) 01.0 mm
 MEASURING TAPE
 WEIGHTING
e) 1) 0.001-300g. 0.01 g.
SCALES
2) 0.010-150kg. 0.010 kg.

23
SOME ADDITIONAL INFORMATION
 Total area of factory: Covered: 30,000 Sq. Feet
Uncovered: 15,000 Sq. Feet

 Total number of employees on date: 50 Persons

 Administrative: 10

 Technical: 05

 Others: 35

The spare capacity available to us in Our current setup of the machines: 40%

 Source of Raw Material:

MATERIAL TYPES USE BY SOURCES

US IN OUR DAILY PROCESS 

 LLDPE / LDPE, PP, -M/S RELIANCE INDUSTRIES LTD.

HD/ HDPE, BOPP -M/S GAS AUTHORITY OF (I) LTD.

-M/S HALDIA PETROCHEMICALS LTD.

-M/S INDIAN OIL CORPORATIONS LTD.

ASSOCIATE OF BAJAJ NYLON AND PLSTICS

 BAJAJ INSULATION
 B.L. CONTAINERS PVT. LTD.

CONTACT DETAILS
BAJAJ NYLON & PLASTICS

PLOT NO. 170, SECTOR – 24,

FARIDABAD-121005, HARYANA

24
PHONE 🡪 0129-2232821, 2234456, 4061534

E-MAIL 🡪 BNPRAMA@GMAIL.COM

 R.K. BAJAJ (Managing Partner):- (+91) 9811021940

 A.K. BAJAJ (Partner):- (+91) 9811011850

 MAYANK BAJAJ (CEO/Development Manager):- (+91) 9811690224

 NARESH BAJAJ (Production & Planning Manager):- (+91) 9873181136

 SAURABH BAJAJ (Quality Control Manager):- (+91) 9999014407

25
 CHAPTER 3

TRAINEE’S PROFILE

26
 CHAPTER 4

RESEARCH METHODOLOGY

Research is a procedure of logical and systematic application of the fundamentals of science to

the general and overall questions of a study and scientific technique which provide precise tools,
specific procedure and technical rather than philosophical means for getting and ordering the
data prior to their logical analysis and manipulation. Different type of research designs is
available depending upon the nature of research project, availability of able manpower and
circumstances.

Research methodology simply refers to the practical “how” of any given piece of research. More
specifically, it’s about how a researcher systematically designs a study to ensure valid and
reliable results that address the research aims and objectives. Research methodology is the
specific procedures or techniques used to identify, select, process, and analyze information about
a topic.

METHODOLOGY OF DATA COLLECTION:

The study required both primary and secondary data.

The data sources can be classified into two categories:-

• Primary data

• Secondary data

PRIMARY DATA: The data directly collected by the researcher with respect to the problem
under a study is known as primary data. Primary data is also the first hand data collected by the
researcher for the immediate purpose of the study.

Sources of primary data: -

 Directly involve
 Face to face interaction with the staff

27
SECONDARY DATA: Secondary data are statistics that already exist. They have been gathered
not for immediate use. This may describe as those data have been compiled by some agency
other than the users.

Sources of secondary data: -

 Company Vouchers & Documents

 Internet
 Websites
https://www.dialtrade.com/bajaj-nylon-arm-plastic/products.htm
https://www.tradeindia.com/bajaj-nylon-plastic-229002/

OBJECTIVE OF THE STUDY

 To develop skills in the application of theory to practical work situation.

 To develop self-confidence, assertiveness, and basic work habits.
 To improve my communication skills, especially when dealing with people I do not
know.
 To identify the accounting practice in Tally at Bajaj Nylon & plastics
 To improve my ability to talk with others on a professional level.
 To improve my research skills to be more effective and efficient in obtaining information.
 To understand the workplace, operating procedures, the company and its products, how
the firm competes, and other organizational concepts.
 To know what it is like to work in a professional environment.
 To gain experience and insight in the work field during the internship.

28
 CHAPTER 5

LEARNING FROM TRAINING

As an intern with BAJAJ NYLON & PLASTICS, I worked in a finance position and was
responsible for TALLY ERP. I was part of the financial department team.

I have tried my best to enhanced my abilities and apply the knowledge that I gained during the
studies. On my first day at firm, company in charge gave me training session about Tally and
computerized accounting in TDS return and also shared his practical experience with me and
gave me some techniques of this process. He also guided me that how to prepare VAT/GST
return and filing data in income tax return preparation software.

Different task that I performed during my internship:

 Preparing the tally

Create a company
Enables GST features
 Preparing books of accounts in tally
 Vouching
 Voucher Entry
 Preparing data in Excel sheet
 Maintenance of accounts/ book keeping
 TDS return preparation

Software used during internship:

 MS office
 Tally software

29
 OVERVIEW OF TALLY ERP

Tally is one of the integrated business management software. Tally ERP 9 is user
friendly software. It is packed with all the features that required for regular business
operations. ERP 9 to maintain store & manage all accounting information’s. 

Core Features of Tally Software: 

 Simplicity: It is easy to setup and use. It requires general knowledge of Accounts

and English to use of Tally. 
 Flexible Inventory Management: The software allows integration of accounting
and inventory information. For multiple product lines, unlimited groups,
categories, batches can be defined. To monitor the inventory continuously, tally
facilitates the same by providing you with analysis report. Stock movement can be
tracked and item wise profit can be seen through tally.  
 Easy to Share: No internet is needed to access accounts. Software has a build
security levels data can be remotely accessed without any worry. 
 Bank Reconciliation: Bank Reconciliation is another feature of Tally. ERP9. 
 Remote Access: Tally. ERP 9 provides remote access from any place and
anytime.

HOW TO USE TALLY:

 Create a company
 Enables GST features

1) Create a company:
 Go to Gateway of Tally > Alt + F3 > Create Company 
 Enter the basic information, i.e., name, mailing name and address of the
company, currency symbol etc. 
 In the ‘maintain field’, select Accounts Only or Accounts with Inventory as per
the company requirements. 
 In the Financial Year from, the first day of the current financial year for e.g., 1-7- 20178

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Will be displayed by default, which can be changed as per requirement.
 Enter the Tally Vault Password if required. 
 Press Enter to accept and save.

2) Enabling GST features in Tally:

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service
Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July
2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination- based
tax that is levied on every value addition. In simple words, Goods and Service Tax (GST) is an
indirect tax levied on the supply of goods and services. This law has replaced many indirect tax
laws that previously existed in India.

GST is one indirect tax for the entire country.

So, before Goods and Service Tax, the pattern of tax levy was as follows:

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STEPS:

1. Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
2. In the screen you will find following options: 
3. Enable goods and service tax (GST): Yes, Set/alter GST Details: Yes.
4.  This will display another screen where you can set GST details of the
company such  as the state in which company is registered, registration
type, GSTIN number etc.
5. Press Y or Enter to accept and save.

PREPARATION ON BOOKS ON TALLY

Following are the books that were made in tally:

VOUCHER ENTRY: -

Tally provides flexibility to use predefined voucher types, comprising of accounting and
inventory voucher types to record various business transactions. It also allows you to use
Keyboard Shortcut Keys as well as mouse operations during voucher entry.

To create a new Voucher Type,

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STEPS:

Go to Gateway of Tally > Accounts Info. > Voucher Type > Create

 Enter the Voucher name

 Specify the Type of voucher
 Specify the Method of numbering
 Activate or deactivate the other functions as required.

BOOKS AND REGISTERS: -

Tally provides you capability to generate various books and registers for any specific period viz.,
month, date, and year and as on date. In Tally, once voucher entry is made, the transactions are
automatically & immediately in the Day Book and other Books of Accounts without any
additional effort. Tally allows you to maintain and generate all primary books of accounts and
registers like:

 Cash Book
 Bank Book
 Purchase Register
 Sales Register
 Journal Register
 Debit Note Register
 Credit Note Register
 General Ledger

VOUCHING

Vouching is a technical term which refers to the inspection of documentary evidence

supporting and substantiating a transaction, by an auditor. It is the practice followed in an
audit, with the objective of establishing the authenticity of the transactions recorded in the
primary books of account. It essentially consists of verifying a transaction recorded in the
books of account with the relevant documentary and the authority on the basis of which the
entry has been made; also confirming that the authority on the basis of which the entry has
been made; also confirming that the amount mentioned in the voucher has been posted to an

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 appropriate account which would disclose the nature of the transaction on its inclusion in the
final statements in account. Vouching does not include valuation. Vouching can be described
as the essence or backbone of auditing.

VOUCHER ENTRY

Journal voucher is for adjustment between any two ledgers.

Special keys for voucher narration field:

 ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
 CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.

Allowing cash Accounts in Journals:

Journals are adjustment entries, which do not involve Cash account and Bank account. However,
in exceptional cases where the user would like to account Journal entries involving Cash/Bank
Account, Tally.ERP 9 has the flexibility of passing such entries by enabling the option underF12
configuration.

To enable Cash Accounts in Journal voucher,

Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry Configuration).

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To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally> Accounting Vouchers > Select F7:Journal

2. Press the spacebar at the Debit or Credit field. The Journal Voucher Screen with
Cash/Bank Ledger selection will appear as shown:

DEBIT NOTE ENTRY

Debit Note is a document issued to a party stating that you are debiting their Account in your
Books of Accounts for the stated reason or vic versa. It is commonly used in case of Purchase
Returns, Escalation/De escalation in price, any other expenses incurred by you on behalf of the
party etc.

Debit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features.

 To use it in Voucher mode you need to enable the feature in F11: Accounting Features-
Use Debit/Credit Notes.
 To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.
 To go to Debit Note Entry Screen,
 Go to Gateway of Tally> Accounting Vouchers

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  Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9 You can toggle between
voucher and Invoice mode by clicking Ctrl+V. Pass an entry for the goods purchased
returned to Supplier A:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

1. ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
2. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledge.

CREDIT NOTE ENTRY

Credit Note is a document issued to a party stating that you are crediting their Account in your
Books of Accounts for the stated reason or vice versa. It is commonly used in case of Sales
Returns.

A Credit Note can be entered in voucher or Invoice mode. You need to enable the feature in F11:
Accounting or Inventory features.

 To use it in Voucher mode you need to enable the feature in F11: Accounting Features -
Use Debit/Credit Notes.
 To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.

To go to Credit Note Entry Screen:

1. Go to Gateway of Tally> Accounting Vouchers.

2. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8. You can toggle
between voucher and Invoice mode by clicking Ctrl+V. Pass an entry for goods sold
returned from Customer A:

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SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

1. ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
2. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.

OVERVIEW OF TDS

Tax deducted at source (TDS) is a tax that is deducted from income that a company in India pays
to a recipient or supplier if the income amount exceeds a specific statutory limit in a financial
year. The types of income that are subject to TDS include:

 Salary
 Interest and dividends.
 Winnings from the lottery.
 Insurance commission.
 Rent.
 Fees from professional and technical services.
 Payments to contractors and subcontractors.

The withholding amounts for 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 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).

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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 deducted, 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.

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PROCESS FLOW OF TDS:

This process flow shows the steps to charge and remit TDS:-

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DESCRIPTION OF PROCESS FOLLOWED TO ACCOMPLISHED THE
ASSIGNED TASK IN THE ORGANIZATION.

TALLY ENTRIES:

The following processes are followed for accomplishment this task:

 Firstly, we review all records of vouchers carefully, that no any vouchers had any queries
related to adjustments.
 Then, we make a separate folder for that work.
 Then, we create a company in Tally software by that company name and started doing
entries.
 Receipts & Payment entries are posted carefully as it carries some contra entries also.
 Then after completing entries posting recheck the data by Balance sheet, Trial balances &
Day book.
 Any queries related to this work communicated to our external mentor.

I also doing the auditing, so the following steps followed by us in auditing:

 Build an audit strategy.

 Verify that all outgoing checks were properly signed, accounted for and posted to the
correct accounts.
 Ensure that all deposits were properly posted.
 Review all financial statements.
 Ensure compliance with all state and federal requirements.
 Review all treasurers' reports.
 Complete the financial review worksheet.
 Suggest improvements to internal controls.
 Determine your audit opinion.
 Submit all documents to companies.

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LIMITATIONS OF THE STUDY

 They have a small staff with limited skill set in many areas.
 Less number of staff members.
 A small change in focus of large competitor might out any market position achieved.
 Developments in technology are changing this market.

CHAPTER 6
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 BIBLIOGRAPHY

SITES:

 www.google.com
 Company Vouchers & Documents
 Internet
 https://www.dialtrade.com/bajaj-nylon-arm-plastic/products.htm
 https://www.tradeindia.com/bajaj-nylon-plastic-229002/

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