A REPORT ON INSTITUITIONAL TRAINING AND CLIENTS’

PERCEPTION TOWARDS THE SERVICE PROVIDED BY

SHARIFF & CO WITH SPECIAL REFERENCE TO CHENNAI
CITY

A Report Submitted To

UNIVERSITY OF MADRAS

In partial fulfilment of the requirements for the award of degree in

BACHELOR OF COMMERCE
(CORPORATE SECRETARYSHIP)
Submitted by
GOPINATH.B
Register Number: 122101228
Roll Number: 221508

Under the guidance of

Dr. A. SHARMILA, M.C.S., M.Phil., Ph.D.,
HEAD OF THE DEPARTMENT
AGURCHAND MANMULL JAIN COLLEGE,
MEENAMBAKKAM, CHENNAI-600 061

MARCH - 2024
Gopinath B
Register Number: 122101228
Roll Number: 221508 Final Year, B. Com (CS)
Agurchand Manmull Jain College,

Meenambakkam, Chennai-600 061.

DECLARATION

I Gopinath B hereby declare that this project report titled “Institutional

Training” done at “INDIAN OVERSEAS BANK” submitted by me in

partial fulfilment for the award of degree in “BACHELOR OF

COMMERCE in CORPORATE SECRETARYSHIP”, under the

supervision of Dr. A. SHARMILA, M.C.S., M.Phil., Ph.D., is a

bona fide work done by me after having undergone training at “INDIAN

OVERSEAS BANK”.

Date:

Place: Chennai Gopinath B

Dr. A. SHARMILA, M.C.S., M.Phil., Ph.D.,
Head Of The Department
Department of Corporate Secretaryship,
Agurchand Manmull Jain College,
Meenambakkam, Chennai – 600061.

CERTIFICATE

This is to certify that the report entitled “Institutional Training

on INDIAN OVERSEAS BANK” is a bona fide work carried out by

GOPINATH B who has undergone training at “INIDAN OVERSEAS

BANK” from February 2024 - March 2024 in partial fulfilment of the

requirements for the award of the Degree of Bachelor of Commerce

(Corporate Secretaryship) under my guidance.

Place: Chennai

Date:

Signature of the Supervisor

(Dr. A. SHARMILA)
 AGURCHAND MANMULL JAIN COLLEGE
(A Unit of shri S.S. Jain Educational Society)
Government Aided / Co-Educational / Re-Accredited by NAAC
“ISO 9001: 2008 Certified”
Meenambakkam, Chennai-600 061

Phone: 044 22246705 Fax: 044 22245637 Email:amjain1952@yahoo.com

Date:

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr./Mrs. GOPINATH B . (Roll No. 221508.

University Register No. 122101228 .) is a bona fide student of our college
in the discipline of B. Com Corporate Secretaryship.

In partial fulfillment of the requirements for the award of B. Com

Corporate Secretaryship Degree by the University of Madras, students are
required to undergo InternshipTraining in industrial organization for a
period of one month. We request you to provide him/her an opportunity
to undergo a month training in your esteemed Organization We assure you
of disciplined behavior on the part of the student.

PRINCIPAL
A.M. JAIN COLLEGE
CHENNAI-600 061
 CERTIFICATE

This is to certify that the report titled "Institutional Training at

“INDIAN OVERSEAS BANK” is submitted by GOPINATH B

(Register Number: 122101228, Roll Number: 221508), A Bona fide

student

of final year B. Com (Corporate Secretaryship) of "AGURCHAND

MANMULL JAIN COLLEGE," Meenambakkam. He has undergone

training at “INDIAN OVERSEAS BANK ” in partial fulfilment for the

award of BACHELOR DEGREE OF COMMERCE in CORPORATE

SECRETARYSHIP of the UNIVERSITY OF MADRAS.

Date: Head of Department

Internal Examiner External Examiner

 ACKNOWLEDGEMENT

I express my sincere gratitude to “INDIAN OVERSEAS BANK”

for providing me an opportunity to carry out my institutional
training. I would like to thank the Management of A.M. Jain
College for having admitted me to undergo the training and
having provided a good environment to continue my studies.

I express my sincere thanks to Dr. N. VENKATARAMANAN,

M.Com., Ph.D., P.G. Dip. in F.M, Principal, for extending his
full support towards the institutional training.

I express my gratitude to my Dr. A. SHARMILA, M.C.S.,

M.Phil., Ph.D., Head of the Department of Corporate
Secretaryship who graciously spared much of her valuable time
providing all possible help, encouragement, valuable
suggestions, and guidance for the successful completion of this
project.

I express my gratitude to my guide Dr. A. SHARMILA,

M.C.S., M.Phil., Ph.D.,for guiding me and sparing his valuable
time in mentoring me during the completion of this project work.

I would like to conclude by extending my wholehearted gratitude

to everyone who has helped me discharge my duties and
responsibilities.

GOPINATH B
Index
Particulars Pages

Chapter 1: Introduction 1-10

Chapter 2: Review of Literature 11-31

Chapter 3: Company Profile 32-36

Chapter 4: Data Analysis 37-50

Chapter 5: Finding, Suggestion & Conclusion 51-52

Chapter 6: Bibliography 53-56

 CHAPTER 1
INTRODUCTION

Being student of B. Com (Corporate Secretary ship) we went for the

institutional training at "INDIAN OVERSEAS BANK" for the period
of one month which enriched our knowledge, skill and ability. It
covered the work done particularly in the Secretarial Department and
visualized the performance of various departments. Training gave us
an insight, bought us closer to the complexities of the corporate world
and imbibed in us a feeling of confidence to face any challenge in our
future career.

Institutional Training is offered as one of the subjects in Bachelor of

Corporate secretary ship to create nature interest in practice aspect of
Secretarial Department Institutional training gives an opportunity to
experience theoretical knowledge into practical form and also gives a
favourable change to observe the internal activities of an organization.
This training not only helps in bringing out our ability but also enables
us to gain working kills of an organization.

Training constitutes a basic concept in human recourse development.

It is concerned with developing a particular skill to decide standard by
instruction and practice. Training is a highly useful tool that increase
the knowledge and skill of the student.

Dale S Beach defines training as "the organised procedure by which

people learn knowledge and skill for definite purpose". According to
Edwin Flipped, "Training is the act of increasing the skills of an
employee for doing a particular job".
OBJECTIVE OF INSTITUTIONAL TRAINING

• To get the theoretical and practical knowledge about the office

management & secretarial practice.

• To collect the primary and secondary data to know about the

company's Management & Secretarial Activities.

• To compare the difference between theoretical and practical point of

views.

• To ascertain the practical aspects of the company.

INTERNSHIP:

An Internship is a professional learning experience that offers

meaningful, practical, work related to student's field of study or career
interest. An Internship gives a student the opportunity for career
exploration and development, and to learn new skills.

Students and Graduate "Internship" are very important, because they

substantially the chance graduates finding employment. To an
employer, candidate who has spent time working for a firm within a
particular industry shows dedication to a particular career, enthusiasm a
particular job and importantly, has experience.

Internship also very useful to interns themselves as they offer the

chance to find out what working for a particular company, or within a
certain industry, is really like. Internships also allow interns to make
contact with managers and recruiters, which can be later be used to
negotiate till-time employment.
No matter how simple or difficult the task is, students are taught to
take up the challenge and polish their skills to prove themselves to
their seniors or employers.

INTERNSHIP EXPERINCE

Internship experience helps the student to feel more confident on the

role of training, because it would help in experimenting and learning
on the field. Also, the experience allows the student to have plenty of
time to relax in addition to working. Going into the full-time job
search. it gives more confident during the interview process to speak
about a number of great practical experiences and also gives a better
idea of the kind of job that is offered.

Internships benefit both students and industry. Industry gets a chance

to get some work done and test a student for an extended period
before making them a permanent employee.

ADVANTAGES OF INTERNSHIP TRAINING

✓ An internship bridges the gap between school or university and

the professional world.

✓ Oftentimes students fail to realize the realities of the working

world, and an internship is a fantastic opportunity to learn about its
complexities- from office politics to coping with the long hours and
difficult bosses.

✓ Undertaking an internship is an experience that could influence

the individual's eventual career decisions significantly.
CHAPTER CONTENTS PG.NO.

1 INTRODUCTION 2-28

2 REVIEW OF LITERATURE 29-35

3 PROFILE OF THE FIRM 36-37

4 OFFICE LAYOUT 38-46

SERVICES PROVIDED
5 47-57
BY THE FIRM
FINANCIAL STATEMENT
6 58-65
ANALYSIS

DATA ANALYSIS
7 (COMMON- SIZE 66-75
STATEMENTANALYSIS)

8 LEARNING EXPERIENCE 76-80

9 CONCLUSION 81-82

10 BIBLIOGRAPHY 83
ANNEXTURE
Five Years Profit and Loss Account,
11 Five Years Balance Sheet,
Five Years Income and Return Filling
Statement.

1
 INTRODUCTION
1.0 ABOUT THE INTERNSHIP TRAINING:

Training and development en-compasses three main activities: training,

education, and development.
❖ Training: This activity is both focused upon, and evaluated against, the
job that an individual currently holds.
❖ Education: This activity focuses upon the jobs that an individual may
potentially hold in the future, and is evaluated against those jobs.
❖ Development: This activity focuses upon the activities that the
organization employing the individual, or that the individual is part of, may partake
in the future, and is almost impossible to evaluate.
Many training and development approaches available for organizations
are proposed including: on-the-job training, mentoring, apprenticeship, simulation,
web-based learning, instructor-led classroom training, programmed self-instruction,
case studies/role playing, systematic job rotations and transfers etc.,
Typical roles in the field include executive and
supervisory/management development, new-employee orientation, professional-
skills training, technical/job training, customer-service training, sales-and-
marketing training, and health-and-safety training. Job titles may include vice-
president of organizational effectiveness, training manager or director, management
development specialist, blended-learning designer, training-needs analyst, chief
learning officer, and individual career-development advisor. Training is crucial for

2
organizational development and its success which is indeed fruitful to both
employers and employees of an organization. Here are some important benefits of
training and development.
❖ Increased productivity,
❖ Less supervision,
❖ Job satisfaction,
❖ Skills Development.

1.1 MEANING OF INTERNSHIP:

An “Internship” is an opportunity offered by an employer to potential
employees, called "interns", to work at a firm for a fixed, limited period of time.

1.2 INTERNSHIP EXPERINCE:

➢ Internship experience helps the student to feel more confident on the role
of training, because it would help in experimenting and learning on the field. Also,
the experience allows the student to have plenty of time to relax in addition to
working. Going into the full-time job search, it gives more confident during the
interview process to speak about a number of great practical experiences and also
gives a better idea of the kind of job that is offered.
➢ Internships benefit both students and industry. Industry gets a chance to get
some work done and test a student for an extended period before making them a
permanent employee.

3
1.3 OBJECTIVE OF INSTITUTIONAL TRAINING:
❖ To get the theoretical and practical knowledge about the office
management & secretarial practice.
❖ To collect the primary and secondary data to know about the company’s
Management & Secretarial Activities.
❖ To compare the difference between theoretical and practical point of
views.
❖ To ascertain the practical aspects of the company.

1.4 ADVANTAGES OF INTERNSHIP TRAINING:

❖ An internship bridges the gap between school or university and the

professional world.
❖ Oftentimes students fail to realize the realities of the working world, and
an internship is a fantastic opportunity to learn about its complexities– from office
politics to coping with the long hours and difficult bosses.
❖ Undertaking an internship is an experience that could influence the
individual’s eventual career decisions significantly.
❖ This will help them to ascertain whether this industry is suited to their
interests and qualifications, or if they feel uneasy about embarking on a career within
this field.
❖ It is an excellent opportunity to gain a thorough understanding of a
particular industry.
❖ Industrial has revolution led to the emergence of largescale business
organizations.

4
1.5 MEANING OF PARTNERSHIP:

Section-4 of The Partnership Act, 1932 defines “Partnership is the

relation between persons who have agreed to share the profits of a business carried
on by all or any of them acting for all. Persons who have entered into partnership
with one another are called individually ‘partners’ and collectedly ‘a firm’, and the
name under which their business is carried on is called the ‘firm name’.

1.6 ELEMENTS OF PARTNERSHIP:

➢ ASSOCIATION OF TWO OR MORE PERSONS:

❖ Partnership is an association of 2 or more persons. Again, only persons
recognized by law can enter into an agreement of partnership. Therefore, a firm,
since it is not a person recognized in the eyes of law cannot be a partner. Again, a
minor cannot be a partner in a firm, but with the consent of all the partners, may be
admitted to the benefits of partnership.
❖ The Partnership Act is silent about the maximum number of partners but
section 464 of the Companies Act 2013 has now put a limit of 50 partners in any
association/partnership firm.
➢ AGREEMENT:
❖ It may be observed that partnership must be the result of an agreement
between two or more persons. There must be an agreement entered into by all the
persons concerned. This element relates to voluntary contractual nature of
partnership. Thus, the nature of the partnership is voluntary and contractual.
❖ An agreement from which relationship of Partnership arises may be
express. It may also be implied from the act done by partners and from a consistent

5
course of conduct being followed, showing mutual understanding between them. It
may be oral or in writing.
➢ BUSINESS:
❖ In this context, we will consider two propositions. First, there must exist
a business. For the purpose, the term “business” includes every trade, occupation
and profession. The existence of business is essential. Secondly, the motive of the
business is the “acquisition of gains” which leads to the formation of partnership.
Therefore, there can be no partnership where there is no intention to carry on the
business and to share the profit thereof.
➢ AGREEMENT TO SHARE PROFITS:
❖ The sharing of profits is an essential feature of partnership. There can be
no partnership where only one of the partners is entitled to the whole of the profits
of the business. Partners must agree to share the profits in any manner they choose.
❖ But an agreement to share losses is not an essential element. It is open to
one or more partners to agree to share all the losses. However, in the event of losses,
unless agreed otherwise, there must be borne in the profit-sharing ratio.
➢ BUSINESS CARRIED ON BY ALL OR ANY OF THEM
ACTING FOR ALL:
❖ The Business must be carried on by all the partners or by anyone or more
of the partners acting for all. This is the cardinal principle of the partnership law. In
other words, there should be a binding contract of mutual agency between the
partners.
❖ An Act of one partner in the course of the business of the firm is in fact
an act of all partners. Each partner carrying on the business is the principal as well
as the agent for all the other partners. He is an agent in so far as he can bind the other

6
partners by his acts and he is a principle to the extent that he is bound by the act of
other partners.
❖ It may be noted that the true test of partnership is mutual agency rather
than sharing of profits. If the element of mutual agency is absent, then there will be
no partnership.

1.7 ADVANTAGE OF PARTNERSHIP FIRM:

❖ A Partnership is a type of business structure where two or more
individuals own and operate a business together. In a partnership, each partner
contributes capital, skills, and resources to the business and shares the profits and
losses according to an agreed-upon ratio.
➢ Advantages of a partnership firm include:
❖ SHARED MANAGEMENT: In a partnership, the management of
the business is shared among the partners, reducing the workload for each individual.
This allows each partner to focus on their area of expertise and contributes to a more
efficient and effective management of the business.
❖ ACCESS TO MORE RESOURCES: Partners can pool their
resources, including capital, to increase the financial stability and growth potential
of the business. This can lead to greater success and expansion of the business, as
well as the ability to take on larger projects and opportunities.
❖ DIVERSE SKILLS AND KNOWLEDGE: Partners bring their
individual skills and knowledge to the partnership, leading to a more diverse and
dynamic business. The diverse skill sets and perspectives of partners can lead to new
ideas and innovation, as well as the ability to address challenges and find solutions
more effectively.

7
 ❖ EASY TO SET UP: Setting up a partnership firm is relatively simple
and straightforward compared to other business structures. It does not have the same
legal formalities and regulations as other structures, making it an attractive option
for individuals looking to start a business quickly and efficiently.
❖ SHARED PROFITS: Partners share the profits of the business
according to an agreed-upon ratio, reducing financial risk for each partner. This
helps to ensure that each partner is invested in the success of the business and
motivates them to work towards common goals.
❖ FLEXIBILITY: In a partnership, partners have the flexibility to
make decisions and change the direction of the business as they see fit. This allows
for a more dynamic and adaptive approach to the business and the ability to respond
to changes in the market or industry quickly.
However, it is important to note that in a partnership, partners have
unlimited liability, meaning that their personal assets can be seized to pay off
business debts. Additionally, disagreements among partners can cause internal
conflicts and negatively impact the business. It is crucial for partners to have a well-
drafted partnership agreement that outlines the terms and responsibilities of each
partner, as well as procedures for resolving conflicts.
In conclusion, a partnership firm offers several advantages, including
shared management, access to more resources, diverse skills and knowledge, ease of
setup, shared profits, and flexibility.
However, partners must be aware of the risks associated with
unlimited liability and potential conflicts with other partners. A well-drafted
partnership agreement can help to minimize these risks and ensure the success and
stability of the partnership.

8
1.8 FUNCTIONS OF PARTNERSHIP FIRM:
A partnership firm is a type of business structure where two or more
individuals (known as partners) come together to operate a business and share
profits, losses, and responsibilities. The following are the key functions of a
partnership firm:
❖ SHARING PROFITS AND LOSSES: The partners agree on a
ratio in which they will share the profits and losses of the business. This ratio is
specified in the partnership deed.
❖ MANAGEMENT: Partners are responsible for managing the day-to-
day operations of the business and making decisions collectively.
❖ RAISING CAPITAL: The partners can bring in more partners or
borrow money to raise capital for the business.
❖ PERSONAL LIABILITY: Each partner is personally liable for the
debts of the business. This means that if the business cannot pay its debts, creditors
can go after the personal assets of the partners.
❖ UNLIMITED LIABILITY: The partners in a partnership firm have
unlimited liability, meaning they are responsible for all the debts of the business
regardless of their share in profits.
❖ FLEXIBILITY: Partnership firms are flexible in nature and allow for
quick decision-making.
❖ TAXATION: Partnership firms are taxed as pass-through entities,
meaning the profits of the business are passed through to the partners and taxed on
their personal tax returns.
❖ CONTINUITY: The business can continue even if one of the partners
leaves or dies. The remaining partners can continue to operate the business.

9
 ❖ EASY FORMATION: Partnership firms are relatively easy and
inexpensive to form compared to other business structures.
❖ MUTUAL AGREEMENT: All partners must agree on important
decisions and changes to the business, ensuring everyone is on the same page.
❖ BETTER DECISION MAKING: Having multiple partners allows
for a variety of perspectives and opinions to be considered when making decisions,
potentially leading to better outcomes.
❖ INCREASED RESOURCES: Partners can pool their resources,
such as money, time, and knowledge, to benefit the business.

1.9 FEATURES OF PARTNERSHIP FIRM:

The following are some of the key features of a partnership firm:
❖ OWNERSHIP: A partnership firm is owned by two or more
individuals, known as partners. Partners can be individuals, companies, or other
organizations.
❖ LIABILITY: In a partnership firm, partners have unlimited liability.
This means that they are personally responsible for the firm's debts and obligations,
and that their personal assets can be used to settle the firm's debts if the business is
unable to do so.
❖ MANAGEMENT: The management and control of the partnership
firm is shared among the partners. Each partner has the right to participate in the
management of the firm and to make decisions that affect the business.

10
 ❖ AGREEMENT: A partnership agreement is a written document that
outlines the rights, duties, and responsibilities of each partner. It also specifies how
the profits and losses of the firm will be shared, and how disputes between partners
will be resolved. The partnership agreement is a key feature of a partnership firm
and is essential to its operation.
❖ PROFITS: Partners share the profits of the firm based on the terms
outlined in the partnership agreement. In some cases, partners may agree to share
profits equally, while in other cases, partners may receive different shares of the
profits based on their contributions to the business.
❖ DISSOLUTION: A partnership firm can be dissolved at any time by
agreement between the partners, by the death or bankruptcy of a partner, or by a
court order. In the event of dissolution, the assets of the firm are used to settle its
debts and obligations, and any remaining assets are distributed among the partners.
❖ RISKS: The most significant risk associated with a partnership firm is
unlimited liability, as partners are personally responsible for the firm's debts and
obligations. This means that their personal assets, such as their homes and savings,
can be at risk in the event of legal disputes or financial difficulties.
❖ DISPUTES: Disputes between partners can arise in a partnership firm,
especially if partners have conflicting opinions or interests. This can lead to
disagreements and may even result in the termination of the partnership.
In conclusion, partnership firms are a popular choice for small
businesses due to their ease of operation and flexibility.
However, they also come with certain risks, including unlimited
liability and the potential for disputes between partners. Partners must carefully
consider the potential benefits and risks of a partnership firm before entering into an
arrangement.

11
1.10 CHARACTERISTICS OF PARTNERSHIP FIRM:
❖ EXISTENCE OF AN AGREEMENT: Partnership is the outcome
of an agreement between two or more persons to carry on business. This agreement
may be oral or in writing. The Partnership Act, 1932 (Section 5) clearly states that
“the relation of partnership arises from contract and not from status.”
❖ EXISTENCE OF BUSINESS: Partnership is formed to carry on a
business. As stated earlier, the Partnership Act, 1932 [Section 2 (6)] states that a
“Business” includes every trade, occupation, and profession. Business, of course,
must be lawful.
❖ AGENCY RELATIONSHIP: The partnership business may be
carried on by all or any of them acting for all. Thus, the law of partnership is a branch
of the law of Agency. To the outside public, each partner is a principal, while to the
other partners he is an agent. It must, however, be noted that a partner must function
within the limits of authority conferred on him.
❖ MEMBERSHIP: The minimum number of persons required to
constitute a partnership is two. The Act, however, does not mention the upper limit.
For this a recourse has to be taken to the Companies Act, 1956 [Section 11 (1) &
(2)]. It states that the maximum number of persons is ten, in case of a banking
business and twenty, in case of any other business.
❖ NATURE OF LIABILITY: The nature of liability of partners is the
same as in case of sole proprietorship. The liability of partners is both individual and
collective. The creditors have a right to recover the firm’s debts from the private
property of one or all partners, where firm’s assets are insufficient.
❖ FUSION OF OWNERSHIP AND CONTROL: In the eyes of
law, the identity of partners is not different from the identity of partnership firm. As
such, the right of management and control vests with the owners (i.e., partners).

12
 ❖ NON-TRANSFERABILITY OF INTEREST: No partner can
assign or transfer his partnership share to any other person so as to make him a
partner in the business without the consent of all other partners.
❖ REGISTRATION OF FIRM: Registration of a partnership firm is
not compulsory under the Act. The only document or even an oral agreement among
partners required is the ‘partnership deed’ to bring the partnership into existence.
❖ CAPITAL CONTRIBUTION: The partners contribute to the
capital of the firm. It is not necessary to have capital in profit sharing ratio. A partner
can be admitted to the firm even without contributing to the capital. It is not essential
that all partners must contribute to the firm’s capital.
❖ PROTECTION: All important decisions are generally taken by
concerns. It ensures protection of those who may not agree to the majority view
point. A partner may even ask for the dissolution of partnership if he feels aggrieved.

1.11 LIMITATIONS OF PARTNERSHIP FIRM:

❖ UNCERTAINTY OF DURATION: A partnership suffers from a
possible limited span of life. Legally, a partnership firm must be dissolved on the
retirement, death, bankruptcy, or lunacy of any partner or demanded by any
partner.
❖ RISKS OF ADDITIONAL LIABILITY: It is true that like the
sole proprietor, each partner has unlimited liability. But his liability may arise not
only from his own acts but also from the acts and mistakes of co-partners over
whom he has no control.

13
 ❖ LACK OF HARMONY: The old saying that “too many cooks spoil
the broth” can be apt for a business partnership. Harmony may be difficult to
achieve, especially when there are many partners. Lack of centralized authority and
conflicts in policy can disrupt the organization.
❖ DIFFICULTY IN WITHDRAWING INVESTMENT:
Investment in a partnership can be simple, but its withdrawal may be difficult or
costly when this aspect is considered from the point of view of individual partners.
This is so because no partner can withdraw his interest from the firm without the
consent of all partners.
❖ LACK OF PUBLIC CONFIDENCE: A partnership may suffer
from lack of public confidence because like that of a company there is no legal
mechanism to enforce the registration of a partnership firm and the disclosure of its
affairs.

1.12 LIABILITIES OF PARTNERS IN PARTNERSHIP FIRM:

❖ LIABILITY OF PARTNERS FOR THE ACTS OF THE FIRM
[SECTION 25]: All partners will be held ‘jointly and severally liable’ for any
acts of the firm. The liability will only arise if such acts were done in pursuance of
him acting as a partner of the firm.
❖ LIABILITY OF THE FIRM FOR THE WRONGFUL ACT OF
PARTNER [SECTION 26]: In a case of any wrongful act or omission to do an act
by any of the partners in the conduct of the ordinary course of the business or with
the consensus of other partners, the firm will be held liable to the same extent as a
partner would have been held liable.

14
 ❖ LIABILITY OF A FIRM FOR THE MISAPPLICATIONS BY
PARTNER [SECTION 27]: In a case where a partner receives a sum of money
from a third party and misuses it or the firm receives the said amount and the amount
is misappropriated by any of the partners, then in this event, the firm will be held
liable to pay for the consequential loss suffered.

1.13 MEANING OF PARTNERSHIP DEED:

A Partnership Deed, also known as a partnership agreement, is a legal
document that outlines the terms and conditions of a partnership between two or
more individuals. It serves as a roadmap for the partnership, providing a framework
for decision-making, profit sharing, dispute resolution, and other important aspects
of the business.

1.14 ELEMENTS OF PARTNERSHIP DEED:

❖ NAME AND ADDRESS OF THE PARTNERS: The Partnership Deed
should clearly identify the name and address of each partner. It should also state the
name under which the partnership will operate.
❖ NATURE OF THE PARTNERSHIP: The Partnership Deed
should describe the nature of the partnership, including its business activities, goals,
and objectives. It should also state the duration of the partnership.
❖ CAPITAL CONTRIBUTION: The Partnership Deed should
specify the amount of capital each partner will contribute to the partnership. This
may be in the form of cash, assets, or services. It should also state the process for
adding or withdrawing partners from the partnership.
❖ PROFIT AND LOSS SHARING: The Partnership Deed should
define how the profits and losses of the partnership will be shared among the

15
partners. This may be based on the capital contribution of each partner or on some
other agreed upon formula.
❖ MANAGEMENT OF THE PARTNERSHIP: The Partnership
Deed should outline the management structure of the partnership, including the
roles and responsibilities of each partner. It should also specify the decision-
making process for important matters.
❖ DISPUTE RESOLUTION: The Partnership Deed should include a
dispute resolution clause that outlines how disputes between partners will be
resolved. This may involve mediation or arbitration.
❖ DISSOLUTION OF THE PARTNERSHIP: The Partnership
Deed should specify the conditions under which the partnership may be dissolved.
This may include the death or retirement of a partner, bankruptcy of the partnership,
or the expiration of the partnership term.
❖ CONFIDENTIALITY AND NON-COMPETE CLAUSES:
The Partnership Deed may include confidentiality and non-compete clauses that
prohibit partners from sharing confidential information or competing with the
partnership during and after the partnership term.
❖ GOVERNING LAW AND JURISDICTION: The Partnership
Deed should specify the governing law and jurisdiction in the event of any legal
dispute
❖ SIGNATURES OF ALL PARTNERS: Partnership Deed should
be signed by all partners and witnessed by two independent witnesses.
In conclusion, a Partnership Deed is an essential document for any
partnership. It outlines the terms and conditions of the partnership, and provides a
framework for decision-making, profit sharing, dispute resolution, and other
important aspects of the business.

16
1.15 DUTIES OF PARTNERSHIP DEED:
❖ DUTY OF LOYALTY: Partners have a fiduciary duty to act in the
best interests of the partnership. This means that partners must not engage in any
activity that conflicts with the interests of the partnership. They must always act
honestly and in good faith in all their dealings with the partnership.
❖ DUTY OF CARE: Partners have a duty to exercise reasonable care
and diligence in the management of the partnership. This means that they must use
their skills and expertise to ensure that the partnership is run in a responsible and
efficient manner.
❖ DUTY TO INFORM: Partners have a duty to keep each other
informed about all matters related to the partnership. This includes financial
information, business decisions, and any other matters that could affect the
partnership.
❖ DUTY TO CONTRIBUTE: Partners have a duty to contribute their
share of capital to the partnership. This means that they must invest a certain amount
of money in the partnership to ensure that it has the necessary resources to operate.
❖ DUTY OF CONFIDENTIALITY: Partners have a duty to keep
confidential all information related to the partnership. This includes financial
information, business strategies, and any other information that could harm the
partnership if it were to become public.

1.16 RIGHTS OF PARTNERSHIP DEED:

❖ RIGHT TO MANAGEMENT: Partners have the right to
participate in the management of the partnership. This means that they have the
power to make decisions about the day-to-day operations of the partnership.

17
 ❖ RIGHT TO PROFITS: Partners have the right to a share of the
profits of the partnership. This means that they are entitled to a portion of the income
generated by the partnership.
❖ RIGHT TO INFORMATION: Partners have the right to access all
information related to the partnership. This includes financial information, business
strategies, and any other information that is critical to the success of the partnership.
❖ RIGHT TO INSPECT: Partners have the right to inspect the books
and records of the partnership. This means that they can review the financial
statements, business records, and other documents that are kept by the partnership.
❖ RIGHT TO DISSOLVE: Partners have the right to dissolve the
partnership. This means that they can terminate the partnership at any time if they
no longer wish to be in business together.

1.17 About Auditing firm:

A company that reviews activities to identify inefficiencies, reduce
costs and otherwise achieve organizational objectives. Auditing firms may
investigate potential theft or fraud and ensure compliance with applicable
regulations and policies.

1.18 Services provided by the firm:

The services provided by audit firms can be tailored to meet your needs
which include basic day-to-day bookkeeping, tax services, auditing, management
consulting, they serve as an outsourced service to provide financial oversight for
small business.

18
1.19 Responsibility of the firm:
The auditor’s responsibility is to express an independent, objective
opinion on the financial statements of a company.

1.20 About an Auditor:

An auditor is a person authorized to check the authenticity and integrity of
the transactions recorded in a company's books of accounts. Additionally, he
provides an opinion about the overall view of the financial statements, determining
whether they accurately and fairly represent the financial position of the entity.

1.21 Qualification of an Auditor:

A qualified auditor is recognized by the Companies Act, 2013, as a
chartered accountant who has a certificate of practice from the Institute of
Chartered Accountants of India.

1.22 Duties of the Auditor:

An authorized individual known as an auditor examines and confirms the
accuracy of financial records and ensures that businesses are following tax
regulations.
➢ Prepare an audit report
➢ Form a negative opinion, where necessary
➢ Make inquiries
➢ Lend assistance in case of a branch audit
➢ Comply with auditing standards
➢ Reporting of firm.

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1.23 SWOT ANALYSIS OF CA FIRM:
The SWOT analysis Identifies the strengths and weaknesses of an
organization and the opportunities and threats from its external environment. It
focuses concentration on things that are going well but could be better, and things
that are not going so well and how to reverse them. I have also used it successfully
in consultations with CPA firm owners and partners.

1.24 STRENGTHS OF CA FIRMS:

❖ Adaptability and adoption of technology and availability of a wide range

of systems and software.
❖ A dedication to training staff. All successful firms hire out of school and
grow what they need.
❖ A great reputation of trust, integrity and competence.
❖ Our clients and the general public rightfully consider us as being smart.
❖ Many of us are looked at as thought leaders and our opinions are sought
out and listened to.
❖ We have strong professional associations and societies that promote the
profession and keep track of legislation that might hurt us.
❖ We have a “franchise” to audit financial statements and do attestation
functions.
❖ The larger firms, i.e., the Top 100, have become more corporate with
centralized and professional management. This is a model that can be emulated by
smaller firms, even those with a dozen people.
❖ As a profession, we are relatively free of debt.
❖ The larger firms have been set up to work virtually for many years. The
smaller firms adapted quickly (in some cases in a day) when forced to and were
good enough with virtual services, which have become pretty standard and are a
testament to our adaptability.
❖ Longevity of clients and client base and high client loyalty.
❖ Key employees with low turnover.
❖ Strong firm cultures.

20
 ❖ Teamwork is pretty seamless.
❖ Our systems all work, and even the bad systems are effective (up to a
point).
❖ Open relationships with clients, some of whom are top-level industry
leaders.
❖ Virtual employee training.
❖ Some firms have monetized websites where business is obtained.
❖ Accounting firms are learning organizations.
❖ Solid capital structure.
❖ A ready supply of buyers that maintain the asset values of the practices.
❖ We are generally available to our clients on short notice.

1.25 WEAKNESS OF CA FIRMS:

❖ The culture of many firms thwarts the majority of personnel from
becoming aware of the many advisory services their firm offers and how staff
could spot opportunities.
❖ Technical and systems training that enables staff to get working
productively pretty quickly, but is not designed to teach them how to be innovative
and to seek out opportunities with clients or within the firm.
❖ Minimal soft skills training.
❖ Competition on a majority of the standardized services we provide tends
to reduce fees.
❖ The inability of many partners “selling” a prospect to present the full
value the firm will provide, so the sale becomes that for a commodity.
❖ A lack of In-house professional business development people that can be
brought on sales calls.
❖ Many partners resist necessary training in new endeavors, procedures
and new technology.
❖ Firms’ infrastructures are based on an old model with higher or now
unnecessary costs.
❖ New system setups at many firms are executed “perfectly” but are not
being carried through to full implementation.
❖ Partner compensation mired in old-school models.

21
 ❖ Inability of many older partners to authorize or permit investments in
new and innovative services and infrastructure strengthening.
❖ Lack of diversity of staff and also of the client base.
❖ Some firms have very high employee turnover, an older management
base, are not learning organizations, and have no partner energy or synergy.
❖ The opposite of any strengths listed in that section.

1.26 OPPORTUNITIES OF CA FIRMS:

❖ To be able to not only grow with our clients but in many cases to lead
clients’ growth.
❖ The need for advisory services is expanding very rapidly and many of
the innovative firms are jumping on these opportunities.
❖ The accountant usually finds out early on about personal or professional
services that a client needs, enabling us to enter that space.
❖ The colleges provide a steady stream of entry-level personnel and, as we
add services, we can draw the people we need from the colleges (a threat could be
a declining number of students enrolled in accounting programs).
❖ Business transparency is increasingly becoming more important, and
that means added services for independent accountants.
❖ AI and robotics and other technological methods are rapidly growing
and some of our societies are leading and supporting this growth.
❖ Globalization.

1.27 THREATS OF CA FIRMS:

❖ Many innovative premium advisory services will become commoditized,
putting pressure on pricing those services.
❖ It is becoming easier for other service companies, particularly niche
providers, to offer advisory services to our clients.
❖ Much of our value is based on reputation, and a single inappropriate
action by a partner could destroy that reputation and a firm’s value.
❖ Inattention by partners could cause the loss of clients or key staff.
❖ Swift, more frequent and wide range of tax changes.

22
 ❖ Government regulations.
❖ Negative publicity of other accounting firms’ shortcomings or errors.
❖ Fear of change by older partners who are complacent and risk averse,
and who dominate many practices.

1.28 CA SCOPE:
As we know that there are many government and private companies that are
providing jobs with a good package. The aspirants can become employed in a firm
as an employee or can start their own private practice.
There are many scopes or jobs for those students who are pursuing Chartered
Accountant Course. The CA played an important role in the organization and duties
of CA like Auditing & Assurance, Tax Consultancy, Accounting Services,
Accountants & Finance Outsourcing and Financial Reporting. Every registered firm
or organization under the Company Act have a CA that manages various tasks like
Finance Managers, Financial Controllers, Financial Advisers or Directors and audits
their accounts. After becoming a CA, there are various job opportunities.

1.29 JOB OPPORTUNITIES IN INDIA:

Charter accountancy is a professional degree course that offers a lot of career
options and opportunities with the best salary in hand. Below describes career
options. The GST Service Provider (GSP) is an emerging job after the
implementation of the GST in India. The company or person having some taxation
knowledge and even if he/she is not a CA can join this field. They can help millions
of small companies, vendors, shops, and business establishments to make business
registrations, upload an electronic invoice, file on a technology platform, and help
understand things and procedures related to the GST network. It’s a ground reality
that though the GST has been rolled out but the majority of people are still not aware

23
of the different segments of this taxation framework. Hence, in this commotion,
where there is a lot of hue and cries about GST and its procedures a well know-
ledged GST Service Provider can be their rescue.
❖ GST Service Providers,
❖ Chief Accountant,
❖ Chief Financial Officer (CFO),
❖ Chief Manager- Internal Audits,
❖ Head –Training,
❖ Lecturer/Professor,
❖ Chief Manager-Management Audits,
❖ Chief Manager- System,
❖ Advisor to the Government.

1.30 CAREER SCOPES IN INDIA FOR CA’S:

Chartered Accountants are ICAI’s (Institute of Chartered Accountants of
India) members with options to either work in private or get placed in the accounts
& finance department of big companies & firms.
If working in private, career scopes may vary largely based on the size and
place (city) of practice and when working for large practicing firms with higher
specialization of individual accountants, the career scopes are still higher.
With the advancement in the Indian economy, scopes for CA professional
is also becoming broader. Simultaneously with amplifying the career opportunities
for CAs, the upgradation in the economy is summing up challenges for CAs to
upgrade their knowledge & skills in the exclusive fields of tasks. Specialized roles
of CAs are as follows:
❖ Auditor,
❖ Financial Reporting,
❖ Management & Corporate Consultancy,
❖ Tax Advisor,

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 ❖ Management Accounting,
❖ Cost Accountant,
❖ Company Liquidator,
❖ GST Expert,
❖ Corporate Financing.

1.31 FINANCIAL ACCOUNTANT– AS A FINANCIAL

ACCOUNTANT, A CA CAN CARRY OUT THE FOLLOWING
ACTIVITIES:
❖ Operate Account
❖ Do Internal audits
❖ Deal with salaries & wages
❖ Tax management
❖ Accounts payment and invoice dispensation

1.32 COST ACCOUNTANT – AS A COST ACCOUNTANT, A CA

IS RESPONSIBLE FOR THE FOLLOWING ACTIVITIES:
❖ Budgeting & budgetary control
❖ Forecasting
❖ Tracking Expenditure to ensure that costs are under control
❖ Tax Manager – CAs are experts in tax management and duly optimize
the financial structure of a company. They check the tax implications of the new
agenda and alter the company’s financial structures. They also play the role of
advisors on the tax impacts on performance objectives.
❖ Auditor – CAs execute internal audits to monitor the management
processes as well as internal controls to ensure the accuracy of records and
appropriateness of controls. They check adherence to corporate policies &
procedures.
❖ As a tax auditor, CA checks the tax liability of the taxpayer. Government
organizations have tax auditors.
❖ Consultant – The consultant’s role in CA relates to the following fields:

25
1.33 SECRETARIAL PRACTICE & PROCESSES:
❖ Corporate law advice about a company’s structure, liquidation and
financial facets
❖ Project agenda & advice on financial resource
❖ Recommendations on business expansion, profit enhancement, joint
venture program’s and so on.

1.34 CA IN THE INDUSTRY:

In general, CAs work at tip-notch positions in the accounting & finance
departments in the industry. Apart from the fundamental roles, CAs also play an
important role in planning & financial strategies, governing pension, funds & long-
term investments, controlling prospective investments, unification or takeover, etc.

1.35 EMPLOYMENT OPPORTUNITIES FOR CA:

The various employment opportunities for Chartered Accountants include
– Independent professional practice, Chartered Accountants firm, Capital market
services, Consultancy companies, Large organizations, Financial companies, etc.
More than 78,000 members of the Institute of Chartered Accountants are there,
among them 70% work in public practice and the rest are engaged in trade & industry
services.

1.36 JOB OPPORTUNITIES ABROAD:

There is also a good opportunity abroad for the aspirants, whereas the
Institute of Chartered Accountants of India has tied up with its Canadian, Singapore
and Irish counterparts to permit the Indian professionals to work on various
assignments in these nations. Multinational firms hire Chartered Accountants on an

26
excellent package or offer jobs abroad. Well-qualified candidates who have good
experience and skills in their field can easily get jobs abroad.

1.37 OTHER SCOPES FOR CA:

❖ CA can choose to start up their own independent practice or make their
clients on the basis of merit.
❖ They can also apply for the job of Chartered Accountant in an existing
firm.
❖ They can also give their services to the capital market.
❖ The qualified CA can apply for a government job, public or private
sector.
❖ The CA can also play an important role in the firm in taking quick
decisions and making profits for the firm.
❖ Various people now have initiated investing in the stock market and for
that, they need investment advisors, hence as an expert either you could work in
the advisory firm or run your own firm as several startups are moving in that
direction.
❖ The coming generation Is heading towards doing business and they want
to initiate on their own by taking support of the experienced people for the taxation
objectives along with the additional services like project reports preparation, and
others, so that you can work for in a recognized firm or start your own company.
❖ Since government focuses on startups and furnishes loans, also in the
banks there is a demand for CA experts with the objective of analysis.
❖ In various fields a CA is been expertise thus a CA can also start
providing coaching on the digital platform.
❖ To file the taxes there are lots of online websites or portals being
launched with the objective of the taxation, they just require some guidance, thus
we can say that the scope for the same would be increasing.
❖ For the Indian economy, a CA plays a critical role, they provide multiple
financial services that are all essential for the businesses, it could be accomplished
through an authorized chartered accountant.

27
28
 REVIEW OF LITERATURE

2.1 MEANING OF REVIEW OF LITERATURE:

A review of literature is a critical analysis and evaluation of

existing research and scholarly articles on a particular topic. The purpose of a
literature review is to provide an overview of the current state of knowledge on a
topic, identify gaps in the research, and suggest directions for future research.

A literature review typically involves the following steps:

❖ Identifying the research question or topic of interest.

❖ Conducting a systematic search of relevant literature using academic
databases, online journals, and other sources.
❖ Reading and critically evaluating the selected articles to determine their
relevance, quality, and contribution to the topic.
❖ Synthesizing the findings from the selected articles into a comprehensive
review of the current state of knowledge on the topic.
❖ Identifying gaps in the research and suggesting directions for future
research.

The quality of a literature review depends on the rigor of the search process,
the relevance and quality of the selected articles, and the depth of the analysis and
synthesis of the findings. A well-conducted literature review can provide valuable
insights into a topic and inform future research, policy, and practice.

29
2.2 LITERATURE ON CA FIRMS:

Chartered Accountancy (CA) firms are professional service providers

that offer a range of services to businesses and individuals, including accounting,
auditing, taxation, financial planning, and consulting. The literature on CA firms is
vast and covers various aspects of their operations, including their role in the
economy, the challenges they face, and their contribution to the development of
accounting standards and practices.
One significant area of research on CA firms is their role in promoting
transparency and accountability in financial reporting. Studies have shown that CA
firms play a critical role in ensuring that companies comply with accounting
standards and regulations. They help in detecting financial irregularities and fraud,
which enhances the credibility of financial statements and increases investor
confidence.
Another area of research on CA firms is their contribution to the
development of accounting standards and practices. Studies have shown that CA
firms are actively involved in the development of accounting standards and play a
crucial role in ensuring that these standards are consistent with international best
practices. They also contribute to the development of auditing and assurance
standards, which are essential in ensuring the reliability of financial information.
The literature also highlights the challenges faced by CA firms,
including the increasing competition, the impact of technology on their operations,
and the need to attract and retain talent. Studies have shown that CA firms need to
embrace technology and invest in their staff's training to remain competitive in the
market.
Moreover, some studies have examined the impact of regulatory
changes on CA firms. For example, the introduction of International Financial

30
Reporting Standards (IFRS) has had a significant impact on the operations of CA
firms, including changes in the way they conduct audits and the services they offer.
International Auditing Practices Committee of the International
Federation of Accountants [1980], in its International Auditing Guidelines (IAG-3),
defines the auditor independence in these words: “The auditor should be straight
forward, honest and sincere in his approach to his professional work. He must be
fair and must not allow prejudice or bias to override his objectivity. He should
maintain an impartial attitude and both be and appear to be free of any interest which
might be regarded, whatever its actual effect, as being incompatible with integrity
and objectivity”.
By maintaining the attitude of mental independence (that is, by being
intellectually honest), auditors can assure themselves that their opinions are
unbiased. However, an awareness of one’s own mental independence is not
sufficient. The users of the statements must also be convinced of such independence.
Various users of financial statements are assured that they can rely upon the
representations of management concerning the financial condition of the reporting
company.
Mautz and Sharaf [1961] also states that the primary purpose of the
Federal Securities Act of 1933 and the Securities Exchange Act off (1934) is “to
instill public confidence in the reliability and accuracy of information reported by
publicly-owned corporations”. The Report also suggests that independent auditors
perform “a key” function in ensuring this reliability and must therefore have the
complete confidence of the public.
Auditing and Assurance Stabdard-1 [1985] states independence as a
situation that auditor should nit be influenced by other considerations at the time of
expressing an opinion. However, Flint [1988] opines that auditor independence is

31
always with respect to particular circumstances. According to him, “Independence
is not a concept, which lends itself to universal constitutional prescription, but one
for which the constitutional prescription will depend on what is necessary to satisfy
the criteria of independence in the particular circumstances”.
Carely [1970] describes independence as a state of mind and as a matter
of character. It needs auditors to avoid all relationships that might cause users to
question their independence. The conclusion observed by a knowledgeable observer
in evaluating an auditor’s relationship is the ultimate test of whether such a
relationship would cause the auditor’s appearance of independence to be impaired.
Angelo [1981] defines auditor independence as “the conditional
probability of reporting a discovered bridge”. Further, auditor independence may
be more at risk where there is no general agreement on the preferred accounting
treatment [Knapp: 1985].
Yost [1995] contends that the dissonance of independence in appearance
and in fact is troubling and it may gibe contributed to the ‘expectation gap’.
Independence Standard Board defined auditor independence as “……freedom
from those factors that compromise, or can reasonably be expected to compromise
an auditor’s ability to make unbiased audit decisions”.
Further, ISB does not specify independence questions, but it supplies a
structure and methodology for analyzing issues. The need for a framework arises
from the jumble of confusing independence rules and regulations. The framework
is the product of an open process.
The UK Companies (Amendment), Act 1856 Act introduced for the first
time the concept of Auditor independence by stating in schedule 75 that no director
or other officer of the company is eligible to act as an auditor.

32
 In the 1930s, noted economists Adolf Bearle and Gardiner means
articulated this change by advancing the proposition that large corporations were
based on the separation of ownership from management and that an important role
for accounting and auditing was to properly value the proprietary interest of the
corporation. [Baker, 2005].
"Role of finance department in enhancing the profitability of a CA firm" by
M. Balaji and M. Vijayalakshmi (2015): This study explored the role of finance
departments in improving the profitability of CA firms. The authors found that
finance departments play a crucial role in providing financial insights and strategies
to the firm's management, which helps in maximizing profitability.
"Challenges faced by finance departments in Indian CA firms" by P. B.
Agrawal and S. S. Agrawal (2017): This study identified the key challenges faced
by finance departments in Indian CA firms, such as managing complex financial
transactions, complying with regulatory requirements, and coping with increasing
competition.
"Impact of technology on the finance function in CA firms" by R. K.
Mishra and S. Sharma (2019): This study examined the impact of technology on the
finance function in CA firms. The authors found that technology has transformed
the way finance departments operate, leading to increased efficiency, accuracy, and
productivity.
"Role of finance departments in corporate governance in CA firms" by N.
Singh and P. Singh (2020): This study explored the role of finance departments in
ensuring good corporate governance practices in CA firms. The authors found that
finance departments play a crucial role in monitoring financial activities, ensuring
compliance with laws and regulations, and maintaining transparency and
accountability.

33
 "Performance evaluation of finance departments in Indian CA firms" by
S. Kumar and S. Ahuja (2016): This study evaluated the performance of finance
departments in Indian CA firms using various financial performance measures. The
authors found that finance departments in successful firms had a clear understanding
of the firm's strategic objectives and were able to align their financial goals
accordingly.
"Impact of ethical practices on finance department performance in Indian
CA firms" by R. K. Sharma and A. K. Singh (2018): This study examined the impact
of ethical practices on the performance of finance departments in Indian CA firms.
The authors found that firms with a strong ethical culture had finance departments
that were more effective in managing financial risks and improving financial
performance.
"Role of finance departments in managing working capital in Indian CA
firms" by S. Jain and V. Bajaj (2020): This study explored the role of finance
departments in managing working capital in Indian CA firms. The authors found that
finance departments play a critical role in managing cash flow, accounts receivable,
and inventory to ensure that the firm has enough liquidity to meet its obligations.
"Factors influencing the adoption of cloud-based accounting systems by
finance departments in Indian CA firms" by A. Gupta and A. Sharma (2021): This
study investigated the factors that influence the adoption of cloud-based accounting
systems by finance departments in Indian CA firms. The authors found that factors
such as cost savings, ease of use, and scalability were important drivers of adoption.
The authors found that finance departments play a critical role in enhancing
the profitability of CA firms by focusing on three key areas: cost management,
revenue generation, and risk management.

34
 In terms of cost management, the authors found that firms with finance
departments that closely monitored expenses, negotiated better pricing with
suppliers, and implemented efficient processes and controls had lower operating
costs and higher profitability. In terms of revenue generation, the authors found that
firms with finance departments that effectively managed client relationships,
diversified their service offerings, and invested in marketing and business
development had higher revenues and profitability.
Finally, the authors found that firms with finance departments that
effectively managed financial risks, such as credit risk, market risk, and liquidity
risk, were more likely to be profitable. This was because effective risk management
practices helped the firm avoid costly financial losses and ensure that it had enough
liquidity to meet its obligations.
Overall, the study highlights the importance of finance departments in
enhancing the profitability of CA firms and identifies several key areas where
finance departments can add value. The findings have important implications for CA
firms looking to improve their financial performance and for finance professionals
seeking to enhance their skills and expertise in this area.

35
 PROFILE OF THE FIRM

3.1 PROFILE OF THE FIRM:

Aim Business Services Pvt Ltd is a leading chartered accountancy firm

rendering comprehensive professional services which include Audit, Management
Consultancy, Tax Consultancy, Accounting Services, Manpower Management,
Secretarial Services etc.

Aim Business Services Pvt Ltd is a professionally managed firm. The team
consists of distinguished Chartered Accountants, Corporate Financial Advisors and
Tax Consultants.

36
3.2 WE ARE COMMITTED TO:
❖ Place the Interest of Clients before ours.
❖ Uphold High Standards of Honesty and Integrity.
❖ Endeavour to Improve the Quality of Services.
❖ Excellence in Professional Services.
❖ Continuous Education and Training of Staff and Clients.

3.3 POSITION OF COMPANY PERSONS:

➢ AUDITOR: B. Aarthi,
➢ PARTNER: R. Loganathan,
➢ MANAGER: S. Lalitha,
➢ ADMIN HEAD: Lingam.

37
 OFFICE LAYOUT

4.1 MEANING AND DEFINITION:

➢ Meaning:
It is nothing but the arrangement of furniture, supplies, equipment, procedures
and things necessary for work in a proper manner in the available space, that would
give maximum output. Here we have discussed a few types and importance of office
layout.
➢ Definition:
According to Littlefield, “Office layout is the arrangement of equipment
within the available floor space”.

4.2 OBJECTIVES OF OFFICE LAYOUT:

The main objectives of office layout are as follows:
❖ Effective utilization of available floor space and smooth flow of work.
❖ Both power and telephone service are made available whenever
necessary.
❖ Office supervision is made more-easy and convenient.
❖ Good working conditions should be provided to each employee
❖ The reception room should be very near to the main gate or entrance so
that the visitors may feel easy and convenient.
❖ A sense of belonging and loyalty should be made in the minds of office
employees.

38
4.3 IMPORTANCE OF OFFICE LAYOUT:
There are various reasons behind the need of having a proper office
design layout:
❖ Impacts morale: Layout of an office impacts employee morale.
Layout does not imply only the décor and facilities, but the relationships between
people who work there and the general environment and often this is referred to as
ergonomics.
❖ Impacts business: Layout directly impacts the efficiency and thereby
the business success rate. The more the people working there are happy, the better
is the output. This is a direct link to the business success factor.
❖ Way the work is done: The work or task at this modern age has
changed due to globalization that is governed by the use of information technology.
The tremendous developments in this technology have impacted the office working
hours and way to perform the tasks.

❖ Manage changes: Layouts are effective only when it adopted to the

changes of the business. Hence, having simpler layouts helps businesses to re-design
whenever needed so that it does not affect the tasks being executed or the work done.
❖ Increase productivity: Using office space effectively is important
while designing office layouts. It should be such a way that it does not delay the
work and job gets done quicker consuming less time and there is no interruption in
the flow of work.
❖ Facilitate Supervision: When office accommodation and layout is
designed to place managers or supervisor closer to their teams, they can meet or
discuss issues immediately and get solutions. Communication gets smoother and
quicker.

39
 ❖ Effective use of equipment: Designing office equipment properly is
indeed very important so that it is not underused or overused. Providing at the place
where the work needs to be completed is crucial. The power consumption is evenly
distributed and the noisy equipment is placed away from workplaces where silence
is required.

4.4 PRINCIPLES OF OFFICE LAYOUT:

The main principle behind the office layout design should be such that it
occupies the available space in an economical way so that the aim and objectives of
the organization or business is achieved. The following are the other principles of
office layout:
❖ Natural lighting: Designing offices that face the north or east gets
more of natural lighting. It avoids more consumption of power.
❖ Placing computers: Desks having computers or desktops must be
placed in such a way that staff sitting at it must not have their backs or faces to the
windows.
❖ Pleasant: The most important of all the aspects is that design should be
aesthetically pleasant. Space has to be optimally used.
❖ Provision of tools: Assignments are completed quickly if they have the
necessary space and tools to perform them. The work station should be spacious
enough to accommodate their files, papers and their documents. Having copiers and
printers closer to them is better to avoid them frequently moving out and wasting
their time.
❖ Grouping: Placing the same functional type of work together or closer
to each other will help to reduce time wastage. The employees have the freedom to
consultation and information easily so that work is handled efficiently.

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 ❖ Open a private space: The employer needs to verify which tasks
require collaboration with one another and which set of tasks require concentration.
Based on this, specific cubicles are designed with open or low separators and others
with separate cubicles or traditional with closed doors. Making a separation between
the two types is essential
❖ Informal and formal spaces: Every workspace does require
employees to take breaks in between work. For this, communal spaces are designed
that is closer to the work stations. These informal communal spaces are often built
with more space to accommodate large numbers during coffee or lunch breaks. The
informal communal spaces meant for conferences or meetings are often placed away
from busy workspace that is noisy.
❖ Security: As it is aware that information is very critical to any business,
care needs to be exercised to define a level of security and norms for workstations
processing data. Mainly the storage of confidential and sensitive data has to be
placed away from main workspace and protected.
❖ Reduce distances: While figuring out the workspace the distance
between movements of each task has also to be considered. Movements like walking,
carrying, pulling consumes time and energy. It causes exhaustion thereby reducing
effectiveness. Hence, distances have to be reduced to minimize costs and energy.

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4.5 TYPES OF OFFICE LAYOUTS:

The following are the different types of office layouts:

❖ Open plan office layout: It does not have walls or separators or

passages. Cupboards, shelves screens, cabinets serve as separators between
workstations. All staff members are seated in the same direction. This is useful for
teams and employees who are working on a similar project.

❖ Cubicle Office Layout: In this type, the workspaces are created using
partition walls on 3 sides to form a box or “cubicle”. This style of workspace is more
space and cost efficient compared to built-in offices. It is typically used in
combination with built-in meeting rooms and private offices for senior staff.

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 ❖ Low Partition Office Layout: It is the more modern version of the
cubicle office, where the height of the partition walls around the workspaces is lower
to allow for more lights and interaction between workers. Like a cubicle office
layout, it may include built-in meeting rooms and offices if more privacy is required.

❖ The landscape office layout: In this type, the staff members are
seated in different directions. It was not preferred much as it did not give privacy
and the staff working in such layouts complained of being exposed to noise and
continuous movement of people around them.

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 ❖ Group/Team based Layout: In group layout, employees are placed
in a separate partition where similar activities are carried on and office machines are
fitted with another section. For example, all computers are fitted in separate room
i.e., computer room.

❖ Private office layout: It refers to cellular styles where the interior walls stretch
from floor to the ceiling. The space is normally occupied by one person, but
depending on the company’s budget, two or three are accommodated. But mostly it
is preferred seating for senior management to give privacy.

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❖ Hybrid office layout: It is the newest office types. It combines elements of all
the types of office styles based on the needs of the company.

❖ Co-working office layout: With laptops replacing personal computers,

employees are increasingly becoming mobile with their work. It is arranged in the
manner in which employees are exposed to an open office style with no specific
allocation of desks.

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❖ Nodal office layout: The office is designed such a way that it is considered as a
hub or node for knowledge where all other offices are connected.

❖ Home Office Layout: Home offices are more popular than ever as flex-time and
work from home programs have made it possible. The layout of your home office
requires careful consideration as well to make it an efficient and productive place
for you to get your work done.

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 SERVICES OFFERED BY THE FIRM

5.0 SERVICES PROVIDED BY THE FIRM:

❖ Corporate Services
❖ Audit
❖ Corporate Finance
❖ Services for Non- Residents
❖ Accounting Services
❖ Payroll
❖ Benefits of Outsourcing
❖ Income Tax
❖ GST
❖ Corporate Governance
❖ TDS

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5.1 CORPORATE SERVICES:

❖ Incorporation of company
❖ Consultancy on Company Law matters.
❖ Planning for Mergers, Acquisitions, De-mergers, and Corporate re-
organizations.
❖ Filing of annual returns and various forms, documents.
❖ Clause 49 review for compliance with fiscal, corporate and tax laws
❖ Secretarial Matters including share transfers
❖ Maintenance of Statutory records
❖ Consultancy on Public/Rights/Bonus Issue of shares.
❖ Change of Name, Objects, Registered Office, etc.

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5.2 AUDIT SERVICES:

BROADLY, AUDIT INVOLVES THE FOLLOWING:

❖ In-depth study of existing systems, procedures and controls for proper

understanding.
❖ Suggestions for improvement and strengthening.
❖ Ensuring compliance with policies, procedures and statutes.
❖ Comprehensive review to ensure that the accounts are prepared in
accordance with Generally Accepted Accounting Policies and applicable
Accounting Standards/IFRS.
❖ Checking the genuineness of the expenses booked in accounts.
❖ Reporting inefficiencies at any operational level.
❖ Detection and prevention of leakages of income and suggesting corrective
measures to prevent recurrence.
❖ Certification of the books of account being in agreement with the Balance
Sheet and Profit and Loss Account.
❖ Issue of Audit Reports under various laws.

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TYPES OF AUDITS CONDUCTED:
❖ Statutory Audit of Companies
❖ Tax Audit under Section 44AB of the Income Tax Act, 1961.
❖ Audit under other sections of the Income Tax Act, 1961 such as 80HHC,
80-IA, etc.
❖ Concurrent Audits.
❖ Revenue Audit of Banks.
❖ Branch Audits of Banks.
❖ Audit of PF Trusts, Charitable Trusts, Schools, etc.
❖ Audit of Co-operative Society.
❖ Information System Audit.
❖ Internal Audits.

5.3 CORPORATE FINANCE:

❖ Preparations of Project Reports.

❖ Preparation of CMA data for bank loans.
❖ Private placement of shares, Inter-Corporate Deposit, Terms loans,
working capital limits, etc.
❖ External Credit Borrowings (ECBs).

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5.4 SERVICES FOR NON-RESIDENTS:

❖ Allotment of Permanent Account number (PAN)

❖ Tax planning.
❖ Obtaining Advance Rulings on debatable issues.
❖ Consultancy/advice on FEMA/RBI matters.
❖ Filing Income Tax Returns
❖ Advice on making investments
❖ Issuing certificate for repatriation of income / assets from India.
❖ Making application to RBI for various matters including sale and purchase
of residential and commercial properties.

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5.5 ACCOUNTING SERVICES:

❖ Accounting System Design & Implementation,

❖ Financial Accounting,
❖ Budgeting,
❖ Financial Reporting,
❖ MIS Reports,
❖ Financial Analysis,
❖ Asset Accounting Management,
❖ Depreciation and Amortization Schedules.

5.6 PAYROLL:

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 ❖ Preparation of Monthly Salary Sheet.
❖ Deductions as per applicable laws like Income Tax, Provident Fund, and
Professional Tax etc.
❖ Computation and deposit of TDS, ESI, PF etc.
❖ Disbursement/ Online Payment of Salary.
❖ Pay slip by password protected e-mail.
❖ Reimbursement of telephone, medical bills etc.
❖ Issue of Form 16 to employees.
❖ Periodic Reconciliation of payments/statutory deductions etc. with books
of accounts.
❖ Administration of gratuity, superannuation, pension schemes etc.

5.7 BENEFITS OF OUTSOURCING:

❖ Enables business to concentrate on core business activities.

❖ Use of manpower for more important functions.
❖ Investment in fixed assets reduced/minimized.

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 ❖ Substantial Savings in Cost.
❖ Services of experts made available.
❖ Improved Internal Controls.
❖ Enhanced reporting capabilities to provide more timely and accurate
financial data.
❖ Off-site Backup of Data.

5.8 INCOME TAX:

❖ Consultancy on various intricate matters pertaining to Income tax.

❖ Effective Tax Management and Advisory Services.
❖ Tax Planning for Corporates and others.
❖ Designing / restructuring salary structure to minimize tax burden.
❖ Obtaining Advance tax Rulings.
❖ Obtaining No Objection Certificates from Income Tax department.
❖ Obtaining PAN for assesses, employees etc.
❖ Advance tax estimation and deposit.
❖ Assessing the liability towards deferred taxes.

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 ❖ Providing regular updates on amendments, circulars, notifications &
judgments.
❖ Filing Income Tax and Wealth Tax returns for all kinds of assesses.
❖ Filing Income tax returns for employees of corporate clients.
❖ Liaison with Income tax department for rectification, assessment,
obtaining refunds etc.
❖ Expertise in complicated direct tax assessments.
❖ Filing and pleading appeals under various provisions of IT Act.
❖ Special expertise in search, seizure and prosecution litigation.
❖ Advice on future tax implications in respect of the potential acquisition.
❖ Opinions on the various Double Tax Avoidance Agreement related issues.
❖ Settlement of various issues raised under FEMA.

5.9 GST:

❖ GST Migrations and Registrations.

❖ Filing of GST Returns (Regular Dealer, Composition Dealer, ISD, Non-
Resident, E-Commerce, etc.)
❖ GST Consultancy/Advisory on various issues of GST.
❖ Impact Analysis on Business Segments.
❖ GST Audits as per GST Act, 2017.
❖ GST Implementation.
❖ Compilation of Data of Input Tax Credit.
❖ GST Assessments.
❖ Transition from Pre-GST to GST Regime.
❖ Maintenance of Records for Compliance.

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 ❖ Strategic Business Planning under GST Regime.
❖ Supplier/Buyer Management.
❖ GSTN Number Verification Services.
5.10 CORPORATE GOVERNANCE:

Corporate governance refers to a combination of laws, regulations,

procedures, implicit rules and voluntary practices which help companies to perform
efficiently and maximize long term value for shareholders and at the same time
looking after the interests of other stakeholders like buyers, government, society at
large etc. Lenders whether national or international, also look for them for taking
exposure in any corporate. It is a function of transparency and fairness in operations
and making proper disclosures.

Company as a business organization has become popular over the years.

With the growth in size of these corporates, governance has become all the more
important. SEBI and listing agreements of various stock exchanges require that the
requirements of corporate governance are duly complied with.

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5.11 TAX DEDUCTED AT SOURCE (TDS):

❖ Advice on all matters related to compliance of TDS/TCS provisions.

❖ Obtaining Tax Deduction Account Number (TAN).
❖ Periodic review of TDS/ Withholding Tax compliance.
❖ Computation of monthly TDS.
❖ Monthly reconciliation of TDS due and deposited.
❖ Monthly deposit of TDS electronically/manually.
❖ Issue of monthly/annual TDS certificates.
❖ Filing of quarterly E-TDS/Manual Returns.
❖ Filing of Correction Statements.
❖ TDS assessment.

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 FINANCIAL STATEMENT ANALYSIS

6.1 INTRODUCTION:
Financial statement analysis refers to the process of determining financial
strength and weaknesses of the firm by establishing relationships between the
various items of the balance sheet, income statement, cash flow statement and the
statement of profit and loss. Analysis of statement means treatment of the
information contained in the two statements so as to afford a full diagnosis of the
profitability and financial position of the firm.
The nature of analysis will differ depending on the purpose of the analyst.
A technique frequently used by an analyst need not necessarily serve the purpose of
other analysts because of the difference in the interests of the analysts. External
stakeholders use it to understand the overall health of an organization as well as to
evaluate financial performance and business value.
➢ Meaning:
It is the process of analyzing a company's financial statements to
know the strength and weakness of a business for decision-making purposes. It’s
analyzes includes:
❖ Breaking financial statements into simpler ones,
❖ Regrouping,
❖ Rearranging the figures given in financial statements and ✓ Finding out
ratios and percentages.
Thus, the data provided in the financial statements should be methodically
classified and compared with figures of previous period or other similar firms. After
making analyzes interpretation is made. It stands for explaining the real significance

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of these simplified components. Interpretation is a mental process based on analysis
and criticism.
➢ Definition:
Financial statement analysis is a systematic process of studying the
relationship among the various financial factors contained in the financial statements
to have a better understanding of the working and the financial position of a business.
According to John N. Myer, “The financial statements are composed
of data which are the results of combinations of:
❖ Recorded facts concerning the business transactions,
❖ Conventions adopted to facilitate the accounting technique,
❖ Postulates, or assumptions made to and
❖ Personal judgments used in the application of the conventions and
postulates.”

6.2 NATURE OF FINANCIAL STATEMENT ANALYSIS:

The following are the nature of financial statement analysis:

❖ Recorded Facts: The term „recorded facts‟ refers to the data taken out
from the accounting records. For example, fixed assets are recorded in the books at
cost price and shown in the balance sheet at cost price less depreciation. Hence, facts
which cannot be recorded in books are not disclosed by financial statements.
❖ Accounting Conventions: Certain accounting conventions are
followed while preparing financial statements. For example, part of a particular
expense is charged to profit and loss account (revenue) and the rest may be
capitalized. Number of conventions has been developed for valuation of stock,

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debtors etc. The use of accounting conventions makes financial statements
comparable, simple and realistic.
❖ Postulates: The accountant makes certain assumptions while making
accounting records. One of these assumptions is that the enterprise is treated as a
going concern. The other alternative to this postulate is that the concern is to be
liquidated. Another important assumption is to presume that the value of money will
remain the same in different periods. Though there is a drastic change in purchasing
power of money the assets purchased at different times will be shown at the amount
paid for them.
❖ Personal Judgments: Even though certain standard accounting
conventions are followed in preparing financial statements but still personal
judgment of the accountant plays an important part. For example, there are a number
of methods for valuing stock, viz.; last in first out, first in first out, average cost
method, standard cost, base stock method, etc. The accountant will use one of these
methods for valuing materials.

6.3 OBJECTIVES OR PURPOSES OF FINANCIAL STATEMENT

ANALYSIS:
The following are the objectives of financial statement analysis:
❖ To measure the profitability or earning capacity of the business.
❖ To measure the financial strength or position of the business.
❖ To make comparative study within the firm (intra-firm) and with other
firms
❖ (inter-firm).
❖ To judge the efficiency of management.
❖ To provide useful information to the management.
❖ To find out the capability for payment of interest, dividend etc.

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 ❖ To measure the short-term and long-term solvency of the business.
❖ To decide about the future prospects of the firm.

6.4 SIGNIFICANCE OR IMPORTANCE OF FINANCIAL

STATEMENT ANALYSIS:
The following are the significance or importance of financial statement
analysis:
❖ For Management: To know the profitability, liquidity and solvency
position; to measure the effectiveness of its own decisions taken and to take
corrective measure in future.
❖ For Investors: Investors want to know the earning capacity and future
growth prospects of the business which helps in assessing the safety of their
investment and reasonable return.
❖ For Creditors: Short-term creditors want to know the liquidity position
of the business where as long-term creditors want to know about the solvency
position and ability to pay the interest consistently.
❖ For Government: To know the profitability position for taking
taxation decision and to take decisions about the price regulations.
❖ For Employees: To know the progress of the company for assessing
bonus, possible increase in wages and to ensure stability of their jobs.
❖ For Customers: To know about the continuance of the business in
future.
❖ Labor Unions: To assess whether the company can afford a wage
increase through increased productivity or by raising the prices.
Financial analysis can be classified into different categories depending upon
1) Information used:

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 ❖ External analysis
❖ Internal analysis
2) Method of operation followed in analysis:
❖ Horizontal analysis.
❖ Vertical analysis.

❖ External analysis: This analysis is based on published financial

statements of a firm. Outsiders have limited access to internal records of the concern.
Therefore, they depend on published financial statements. Thus, the analysis done
by outsiders namely creditors, suppliers, investors and government.
❖ Internal analysis: This analysis is done on the basis of internal and
unpolished records. It is done by executives or other authorized officials. It is very
much useful and significant to employees and management.
❖ Horizontal Analysis or Time series analysis or Dynamic
Analysis: In this type of analysis, figure in the financial statements for two or more
years is compared and analyzed. It helps in knowing the trends of the business over
a period of time. Comparative statements and cash flow statements are example of
horizontal analysis.
❖ Vertical Analysis or Static Analysis: In this type of analysis,
figures in the financial statement for a single year are analyzed. It involves the study
of relationship between various items of Balance Sheet or Statement of Profit and
Loss of a single year or period. Ratio Analysis relating to a particular accounting
period are examples of this type of analysis

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6.6 LIMITATIONS OF FINANCIAL STATEMENT ANALYSIS:
The following are the limitations of financial statements:
❖ Based on Past Data: Only past data of accounting information is
included in the financial statements, which are analyzed. The future cannot be just
like past. Hence, the analysis of financial statements cannot provide a basis for future
estimation, forecasting, budgeting and planning.
❖ Not a Substitute of Judgment: If the analysis is made by unskilled
persons, incorrect conclusions may take place. Thus, results of analysis cannot be
considered as judgment.
❖ Reliability of Figures: the accuracy and reliability of analysis depends
on reliability of figures derived from financial statements. If the contents of the
financial statements are manipulated by window dressing, analysis based on those
figures will be misleading and meaningless.
❖ Not real: Information shown in profit and loss account may not real
profit as many items shown in the profit and loss account are not real but estimated.
❖ Personal bias: It does not disclose the correct financial position. It is
affected by the personal ability and bias of the analyst.
❖ Price level changes: Financial statements of one period may not
be comparable with another due to differences in conditions and changes
in economic situation and inflation.
❖ Unreliable: When different accounting policies are followed by
the two firms then comparison between their financial statements
becomes unreliable.

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 ❖ Limitations of the Tools Application for Analysis: There are
different tools applied by an analyst for an analysis based on his skill and experience.
If an unsuitable tool or technique is applied, it results in misleading of statement.
❖ Impact of Non-Monetary Factors Ignored: There are certain
non-monetary factors namely reputation, credit worthiness, co-operation of the
employees, etc. which have an impact on the financial position of the firm cannot be
measured in monetary terms and are ignored. Thus, the financial statements only
show the position of the financial accounting and not the financial position.

6.7 TECHNIQUES OR TOOLS OF FINANCIAL STATEMENT

ANALYSIS:
The most important techniques of analysis and interpretation of financial
statements are listed below:
❖ Comparative Financial Statement: Financial Statements of two
years are compared and changes in absolute terms and in percentage terms are
calculated. It is a form of Horizontal Analysis. It normally comprises of
➢ Comparative balance sheet
➢ Comparative profit and loss account
➢ Comparative statement of changes in working capital and total capital.
➢ These statements help in making inter-period and intra-firm comparisons
and also highlight the trends in performance efficiency and financial position.
❖ Common Size Statement: It indicates the relationship of various
items with some common items. The figures of Financial Statements are converted
into percentage with respect to some common base. It
➢ In income statement, the sales figure is taken as common base and all
other figures are expressed as percentage of sales.

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 ➢ In balance sheet, the total assets and liabilities are taken as common base
and all other figures are expressed as percentage of this total.
❖ Ratio Analysis: Ratio is a mathematical relationship between two or
more items taken from financial statements. Ratio analysis is a process of computing,
determining and presenting the relationship of items. It also includes comparison
and interpretation of ratios and using them as basis for the future projections. It is
useful to management and outsiders to diagnose the financial health of business and
aids in measuring the profitability, solvency and activity of firm.
❖ Cash Flow Statement: It is a statement that shows the inflow and outflow
of cash and cash equivalents during a particular period which helps in finding out
the causes of changes in cash position between the two Balance Sheet dates.
❖ Fund flow analysis: It signifies the sources and application of funds. The
term fund refers to „Working capital‟. Fund flow analysis clearly shows internal and
external sources of working capital and the way funds have been used. It analysis
the changes takes place in assets and equities between tow balance sheet dates.
❖ Trend analysis: „Trend analysis is carried out by calculating trend
(percentage) of different items for various periods and plotting the same on graph
paper or chart. It suggests the trend or direction of financial and operating data over
definite period (say 2 to 5 years) to show whether the concern is going upward or
downward. Hence, it is significant for forecasting and budgeting.
❖ Net working capital analysis: Working capital statements or
schedule of changes in working capital is prepared to disclose net changes in
working capital on two specific dates (generally two balance sheets). It is prepared
from current assets and current liabilities on specified dates to show net increase or
decrease in working capital.

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 LEARNING EXPERIENCE

DURING WEEK-1:

8.0 INTRODUCTION TO GOODS AND SREVICES TAX (GST):

Basics of Goods and Services Tax was taught by Ms. Manju - Office Staff

8.1 (GOODS AND SERVICES TAX)- GST:

GST stands for Goods and Services Tax. GST is an indirect tax or
consumption tax used in India on the supply of goods and services. Goods and
Services Tax is a type of tax introduced in India from July 2017 after the Parliament
passed the Goods and Services Tax Act on 29 March 2017. The historical move of
implementing GST gave India a significant indirect tax reform. The various different
taxes that were levied at the state and the centre were clubbed into one tax that was
named GST. It is an indirect tax which has replaced many indirect taxes in India
such as the excise duty, Value added tax -VAT, Services tax, etc.

8.2 Types of GST:

The types of GST in India are:
❖ Central Goods and Services Tax,
❖ State Goods and Services Tax,
❖ Integrated Goods and Services Tax and,
❖ Union Territory Goods and Services Tax.

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8.3Difference between Types of GST:

Point of
IGST CGST SGST
Distinction

Applicability Inter-state Intra-state Intra-state

transactions transactions transactions

Collecting Central government Central

authority government State government

The authority Central and state Central

that gets government State government
government
benefited

Input tax credit of Input tax credit of Input tax credit of

Input Tax IGST can be used CGST can be SGST can be used
adjustments against either used against against SGST or
permissible CGST, SGST, or CGST or IGST, IGST, but not
IGST. but not against against CGST
SGST

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DURING WEEK-2:

8.4 GST RETURN DOWNLOAD:

GST Returns are a type of form that a taxpayer has to file. There are
around 22 types of GST forms available. From these 22 GST forms, there are 11
that are active, 8 view-only and 3 suspended. So, the number and type of GST have
to file is based on the type of taxpayer that had been registered. The GST return
can be filed with the software provided by the Goods and Services Tax Network
(GSTIN), which will auto-populate the forms.
I was assigned to download the GSTR-2B of some specified companies.

8.5 PROCEDURE FOR DOWNLOADING GSTR – 2B:

Step-1: Login to the GST portal www.gst.gov.in through the Google.
Step-2: For logging in enter the company’s username and password.
Step-3: After logging in the GST portal of the company, GST dashboard
will appear. In that dashboard, go down and click on the box named as “Return
Dashboard” and then the file returns screen appears.
Step-4: There choose the required financial year, the quarter of 3 months and
the month and then click on the Search.
Step-5: Then a new screen appears below that, there a box named with
“Auto-drafted ITC Statement for the month GSTR-2B.” click on the GSTR 2B and
then in that download the GSTR-2B details (Excel).
Step-6: Then repeat the same steps for downloading the rest of the months
GSTR-2B for the Financial year.
Step-7: After downloading the GSTR-2B for all the months, create a new
folder and move all the downloaded GSTR-2B excel files to that new folder.

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 Step-8: Name the New folder with the name of the company and with the
financial year and then rename all the files with the name of the month of the GSTR-
2B file.

DURING WEEK-3:

8.6 INCOME TAX:

I was assigned to do the preparation work for Income Tax Filing.

Step-1: Go to Gmail and Download the pdf of the company’s GSTR-3B
which have been sent to you.
Step-2: Create a new folder and then move the company’s GSTR-3B of the
financial year from that download to the new folder using Ctrl+C = Copy and
Ctrl+V = Paste.
Step-3: Then Copy and Paste a sample excel file of a company’s Purchase
and Sales details of the year to the new folder for easily entering the values of taxes.
Step-4: In Excel, Change the Company’s name on the top and in the
worksheet name with the Company’s Name.
Step-5: Go to the Excel file and delete all the taxes and amount and then
check the first month of that financial year’s Purchases and Sales Amount and
Type the Amount that has been given in that file to the Excel File
Step-6: Repeat the Same steps and do it for all the rest of the months.
Step-7: After Checking and Entering the values of Purchases and Sales for all
the months, then save the file.
Step-8: Then Go to the Main File (Edited Excel File) and send it through the
Mail.

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DURING WEEK-4:

8.7 BILL MAINTENANCE:

Books of accounts including vouchers and receipts are required to be
maintained under different statutory laws – Income Tax Act, Companies Act 2013
and GST Act.

8.8 BILLS TYPING IN EXCEL:

Typing of the Tax Invoice Bills with all the details in Excel file. Details
such as the Company’s name with GST Number, Invoice number, date, taxable
amount, CGST amount, SGST amount or IGST amount, tax value, Rate of Tax and
Total payable.

8.9 ARRANGING OF BILLS:

Invoices are the documents that serve as a source of record-keeping for
businesses. Arranging of a Particular Company’s bills in Date-wise in a file for all
the years in a proper way.

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 CONCLUSION
Internships are often a fairly good program. It aids in the improvement and
development of abilities, talents, and knowledge. The intern will help out with a
variety of tasks over the course of a month, including data analysis, filing IT returns,
downloading GST returns, and learning more about auditing job, but there is still
more for them to learn about audit. The college's decision to include internship as
one of the disciplines made me incredibly grateful. Over the course of the four
weeks, I gained a better understanding of the auditor office, including their methods
for carrying out the tasks assigned to them.
Good internships enable students to learn a wide range of skills such as the
basics of wireframing, benchmarking, SEO operation and other technical skills
depending on the nature of the internship.
❖ Communication and interpersonal skills: During an internship, you
might have to communicate with your project managers, write and respond to the
emails, schedule meetings, articulate your ideas, etc. All these tasks help you
improve various aspects of communication, including your oral and written skills.

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 ❖ Teamwork and Collaboration: You might be great at most hard and soft
skills at an individual level however, you’ll be a part of a team in a professional
setting. Internships provide you an opportunity to improve this skill. During the
internships you get a chance to work and collaborate in teams, where each person’s
contribution matters equally.
❖ Time Management and Multitasking: Effective time management is
essential to find a balance between your daily tasks in the office and personal life.
During internships you may have to manage several projects at the same time, with
stringent deadlines.
❖ Assertiveness: During internships, often you will be asked to do things
that are beyond your capacity. This may not just pertain to things that are above your
skill level, but also tasks that take up too much of your time. These instances teach
you to be assertive, and say ‘no’ when you need to.
❖ Critical Thinking – Most recruiters value employees who possess good
critical thinking skills. These skills are needed in all aspects of a business as well as
in all departments of an organization. Hence, to succeed in your career, you need to
learn and improve your critical thinking skills. Internships will help you do that.
Accountability: Internships teach you to be accountable for your own work by
providing you hands-on experience to the day today work in the workplace.
To conclude, an internship is the best way to learn hard skills and soft skills
required to succeed and survive at a job. Remember, in this competitive world,
employers consider soft skills equally important as hard skills. Hence, even if you
are great in all technical skills, it is important to gain some internship experiences
and learn all the skills it has to offer.

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 BIBLIOGRAPHY

10.1 REFERENCE:

BOOKS:
➢ Ready, T.S., & Dr. Hariprasad Reddy. Y, (1988), Management
Accounting, Margham Publications, Sixth Edition.
➢ 12th std text book and through google reference.
➢ Reddy, T.S & Murthy, A. Financial Accounting, Margham Publications,
➢ Kapoor, N.D. Business Laws, Sultan Chand & Sons,
➢ Dr. S. Khanka – Business Ethics and Corporate Governance, S. Chand
Publication.

WEBSITE:

➢ www.google.com
➢ www.aimbusinessservice.com
➢ http://www.incometaxindia.gov.in

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