SUMMER INTERNSHIP – FINAL REPORT

07 MAY, 2019 – 02 JULY, 2019

T.K.RAMASAMY AND CO

ERODE

NIKITHA N

18AC26

PSGIM

FACULTY GUIDE

Dr. J SEKKIZHAR,

Associate Professor,

PSGIM,

Coimbatore.

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 EXECUTIVE SUMMARY

Internship program gave a hands on experience about the corporate field. It also taught about the
dos and dons involved in the corporate culture. The intern program mainly focused on the key
basics of Financial Accounting. Firstly, got exposed to Tally ERP 9.0 software, which was taught
by the supervisor. It gave an insight about the key shortcuts used in Tally software. Tally is
majorly used in the organization to derive the profit and loss statement and balance sheet of a
company when an income statement, purchase or sales bill is given. The work was to process the
income and expense statements in Tally. Secondly, Analysis of financial statements has been
taught. Financial statements includes both receipt and payment vouchers. Key contributions
made were preparation of the Excel sheet for receipt and payment vouchers, processing the
financial statement of various companies in Excel and Tally and filing for verification. The firm
conducted bank audit for various public sector banks like Canara Bank etc. Learned about the tax
slabs for each industry and various types of GST forms for filing GST according to the company
whether it belongs to B2B or B2C and individuals and also practiced to file the GST forms and
ITR 3 and ITR 5 forms. The next learning is about TDS – it’s meaning and when it is calculated
and also about CESS that it is calculated only in income tax returns. The key take aways from
this internship program were usage of Tally software and its importance, analysis of profit and
loss statement of various companies and the hands on experience in areas like vouching, GST
billing. Additional activities performed were active participation regarding how the employees
tackle the problems that occurs in the company during misfiling. Overall, this two month of
internship gave many fruitful intakes and mainly taught about punctuality and provided great
insights about the business environment and in the areas of Finance and Accounting.

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 ACKNOWLEDGEMENT

If words can be considered as a symbol of approval and token of acknowledgement then let the
words play the heralding role of expressing my gratitude acknowledgement.

At the very outset, I take this privilege to convey my gratitude to those people whose
cooperation, suggestion and heartfelt support helped me to accomplish the project/internship
successfully.

First and Foremost, I would like to thank Dr. T.G.VIJAYA Ph.D, MBA, M.A, B.A, Director of
PSG Institute of Management for her support and motivation throughout the internship.

I express my sincere thanks to my coordinator Dr. J.JOSHUA SELVAKUMAR MBA, M.Phil,

Ph.D, Associate Professor, PSG Institute of Management, Coimbatore for his continuous
encouragement and support.

I acknowledge my sincere gratitude to my organization guide Mr. R MANIVASAGAM for

permitting me to do the internship. My sincere thanks to my faculty guide Dr. J. SEKKIZHAR
for his careful supervision, valuable guidance and constant encouragement right from the
inception to the successful completion of my summer internship project.

I would like to express my sincere thanks to all the faculty members of PSG Institute of
Management for their support in my career development.

Last but not the least, I express my heartfelt thanks to all other staff members of
T.K.RAMASAMY AND CO, my parents and friends for the timely help and support they have
rendered in bringing my work, so its relevance in a faithful manner.

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 TABLE OF CONTENTS

S.NO CONTENTS PAGE.NO

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1 INTRODUCTION

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2 SITUATION ANALYSIS

3 KEY RESULTS 16

4 OBSERVATIONS AND SUGGESTIONS 17

5 CONCLUSION 18

6 BIBLIOGRAPHY 19

7 APPENDICES 20

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 1. INTRODUCTION

1.1 T.K.RAMASAMY AND CO:

T K RAMASAMY AND CO is a Private company incorporated on Monday, 01 January 1900.

T.K.RAMASAMY AND CO is a chartered accountancy firm rendering comprehensive

professional services which include Audit, Tax consultancy, Accounting services etc.

T.R.RAMASAMY AND CO is a professionally managed firm. The team consists of

distinguished Chartered Accountants and Tax Consultants. The firm consists of a combination of
skills which are geared to offer sound financial advice and proactive services. The firm has a
regular interaction with the industry and other professionals which enables it to keep pace with
the development and to meet the client’s needs.

1.1.1 ACTIVITIES AND FUNCTIONS:

Consultancy and Certification

Audit and Assurance

Taxation Advisory

GST

1.1.2 MISSION:

The mission of the firm is “ To provide exceptional audit, tax and consulting services to our
client base ”.

1.1.3 FUNCTIONS OF AN AUDITOR:

 To determine the accuracy of the financial statements prepared by the company.

 To identify whether any fraud happens in the company.
 To check whether the company works legally with environmental aspects.

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1.1.4 RESPONSIBILITIES OF AN AUDITOR:

An auditor plays an important role in a company or an organization. They are responsible for the
efficient functioning of the organization. Some of the roles include the following:
1. In-charge of checking and analyzing the financial records and documents – This is to
ensure that taxes are paid on time and the company complies with all the rules and
regulations of the corporate as well as the government.
2. Recommend solutions for mismanagement or negligence of the company
procedures - Based on the document analyzation, the auditor will suggest some
recommendations on how the company can improve their financial activities and
operations.
1.1.5 FUNCTIONS OF THE FIRM:

BANK AUDIT:

Audit means the thorough inspection of the books of accounts of the organization. This involves the
examination of vouchers and the verification of various assets of the organization.

Bank auditing is the procedure of reviewing the services and procedures adopted by banks and
other financial institutions. It is a routine procedure that all financial services entities must
undergo in order to ensure that they are in compliance with industry standards and jurisdictional
regulations.

Bank Audits are basically of 2 types.

1. Concurrent Audits: These happen for the whole year for the branches which have high
transaction activities.

2. Statutory Audits: These happen in the month of April (mostly in the 1st week) due to
the year ending and after the branch audits take place. This could possibly get over by
May start or mid so as to let the banks disclose their yearly returns and submit them to
RBI & SEBI, etc.

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ASSURANCE:
Assurance is a professional service with the aim of improving the quality and transparency of
information, to reduce the chance of problems occurring from incorrect information. An audit is
a type of assurance service.

Assurance services can be regulatory or compliance-based. They work to ensure that a company
or organization is following guidelines, rules and policy, and provide both internal and external
confidence for financial statements.

TAXATION ADVISORY:

A tax advisor is a financial expert with advanced training and knowledge of tax law. The
services of a tax advisor are usually retained in order to minimize tax payable while remaining
compliant with the law in complicated financial situations.

Tax advisers use their knowledge of tax legislation to provide advisory and consultancy services
to clients, ensuring that they pay their taxes in the most efficient way and benefit from
any tax advantages and exemptions.

Tax preparation includes federal, state, or local tax returns. Tax advisory service includes
analyzing financial and tax problems, formulating solutions and making recommendations
designed to provide advice on taxation for clients ranging from individuals to business.

GST:

Audit under GST is the process of examination of records, returns and other documents
maintained by a taxable person. The purpose is to verify the correctness of turnover declared,
taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the
provisions of GST.

Two types of GST Audits are:

1. CA or CMA: A registered dealer with an annual turnover of more than Rs. 2 crore
is required to audit his/her accounts by a CA or CMA. An internal auditor cannot
simultaneously undertake the GST audit.

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 2. GST Tax Authorities: When tax authorities carry out the audit, it can be divided
into two
a. General Audit: An audit conducted by the Commissioner, or an officer under
his orders, is known as general audit.
b. Special Audit: The tax department may conduct a special audit by appointing
a CA or CMA through the Commissioner.
Types of GST and ITR forms:

GSTR -1

 A registered taxable person shall furnish electronic statement of the details of outward S
supplies of goods and services for the tax period on or before the 10th of succeeding tax
period.
 And shall include details of invoice, debit notes, credit notes and revised invoices issued
during tax period.

GSTR 2

 A registered person shall furnish the detail of inward supplies of goods and services
including the goods and services under reverse charge basis and goods and services
received under IGST.
 Return shall be filed in GSTR 2 after the end of 10th day but before 15th day of the
following month from the end of tax period.

GSTR 2A

 GSTR 2A is a purchase-related tax return that is automatically generated for each

business by the GST portal.
 When a seller files his GSTR 1, the information is captured in GSTR 2A.
 The return takes it’s information of goods and/or services which have been purchased in a
given month from the seller’s GSTR 1.

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GSTR 3

 GSTR 3 is a monthly return with the summarized details of sales, purchases, sales during
the month along with the amount of GST liability.

GSTR 4

 It is a GST Return that has to be filed by a Composition Dealer.

 Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer opting for the
composition scheme is required to furnish only 1 return which is GSTR 4.
 For the return period (July-Sep 2018) the return has to be filed by 18th October 2018
GSTR 5

 This return will contain all business details for non-resident (NR) including the details of
sales & purchases.

GSTR 7

 GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax
deducted at source) under GST.
 It contains the details of TDS deducted, TDS liability payable and paid, TDS refund
claimed if any etc.,
 The return has to be filed on 10th of the following month.

GSTR 9
 GSTR 9 is an annual returns to be filed once in a year by the registered taxpayers under
GST including those registered under composition levy scheme (GSTR 9A) and those
engaged in supply of goods of suppliers on electronic commerce platform. (GSTR 9B).
 It consists of details regarding the supplies made and received during the year under
different tax heads i.e. CGST, SGST and IGST.
GSTR 11
 It is a return to be filed by the persons who has been issued a Unique Identity Number
(UIN) in order to get refund under GST for the goods and services purchased by them in
India.

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ITR forms:
There are 7 ITR forms. Some of them are;

ITR 1

Return of Income from individuals earning income from salary, pension, one house property,
income from other sources and having total income up to Rs. 50 lakhs.

ITR 2

Return of Income from Individuals and HUFs not carrying out business or profession under any
proprietorship.

ITR 3

Return of Income from individuals and HUFs having income from a proprietary business or
profession.

ITR 5

Return of Income from persons other than,

• Individual
• HUF
• Company and
• Person filing Form ITR-7

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 2. SITUATION ANALYSIS

2.1 ANALYSIS OF EXTERNAL FACTORS/DRIVERS

2.1.1 Micro factors:

1. Customers: One of the most fundamental factors is ‘Customer is King’ for every
business and its survival.
2. Input or Suppliers: The major input or suppliers are the internet providers, the telephone
providers and the computer and the software used in the workplace. Without these the
work becomes very tedious.
3. Competitors: The major competitors are the free online tax calculators, free online tax
consultants and other auditing firms in nearby locality. Due to free consulting services
provided by the competitors, clients get attracted easily because of ease of work. On one
side, competition brings about innovation, better customer service, core market
understanding and understanding of your own business- your strength and your
weakness. For the downside, if you are not prepared to change in competitive market,
your company may be negatively influenced due to scaring investors, market
expectations increase, competitive price and customer disloyalty.
4. Marketing & Media: Marketing plays a significant role in business. Without proper
marketing it is very difficult to reach the clients. Some of our marketing includes
advertisement in facebook, web pages and referring through just dial.

2.1.2 Macro factors:

1. Economic: Economy is one of the most determining factors to the success of the company.
Some of the factors such as the fluctuating interest rate, economic crisis, the consumption pattern
of buyers, and also the profits of businesses. There are some factors that have direct impact on
business firm.

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  Tax rate
 Exchange rate
 Inflation
 Labor
 Demand/supply
 Wages
 Recession. Based on this the filing status changes and the income of the firm tends to
fluctuate.

2. Technology: Technology is playing a vital role in each and every firm. Technological
advancement has made the filing of income tax returns and calculations easier and better to
minimize the work task.

2.2 ANALYSIS OF INTERNAL FACTORS/DRIVERS

1. Human resources: In the modern era, where ideas are digitalized still human resource can be
a company’s greatest treasure. In general, the employees can be either a strength or weakness for
a company depending on the level of practical skills, attitudes toward work, performance and so
on. If a business is with skilled and motivated workers, they are sure they be the biggest asset of
the enterprise.

2. Capital resources: Capital is the fund necessary for a business to expand and sustain. CEO
takes financial capital to invest not only in tangible goods such as factories, machines, tools and
other productive equipment to produce an output but also intangible resources such as marketing,
employee training, etc. No company can survive without having capital resources. Here the
capital resources are invested in fixed assets such as land, building, furniture and computers.

2.3 SWOT ANALYSIS:

STRENGTH:

 People, especially small business owners and real estate investor need advice for the
preparation of their taxes and financial statements in any economic condition.

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 Requires low initial investment.

 Employees are versatile to handle works simultaneously.

WEAKNESS:

 Brand recognition and advertising becomes compared to their competitors.

 Highly seasonal nature of the work.

OPPERTUNITY:

 The advice of a competent and qualified certified accountant will always be a credit for a
company and an individual.

 In the modern era where companies increase in large look for business expert and
consulting solutions.

THREAT:

 Easy use of internet makes the work simpler and consumes less time whereby it creates
unemployment for certain employees.

 There are many online services and software services that can allow an individual to file
their taxes without having to visit an accountant.

2.4 PORTER’S FIVE FORCES:

The Porter’s five forces is a broadly used model in business that refers to the five important
factors that drive a firm’s competitive position within an industry.The forces are

 The threat of new entrants

 The bargaining power of buyers

 The bargaining power of suppliers

 The threat of substitutes

 Competitive rivalry

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THE THREAT OF NEW ENTRANTS:

When the barriers to entry into an industry are high, new businesses can hardly enter the
market. Here there are no barriers or government restrictions for new entrants. Anyone who has
completed the C.A can start an auditing firm. Hence threats of new entrants are high.

THE BARGAINING POWER OF BUYERS:

When there is a large number of buyers, the costs of switching to competition and the
customer loyalty are both low. Here the buyers are the clients who mainly come to file their
income tax returns and goods and services tax. Since there are more buyers, the bargaining
power of buyers are high. If the clients are not satisfied with our fees they tend to switch to
other firm easily.

THE BARGAINING POWER OF SUPPLIERS:

It represents the extent to which the suppliers can influence the prices. When there are a lot
of suppliers, buyers can easily switch to competition because no supplier can, actually, influence
the prices and exercise control in the industry. Here there are more suppliers available for
computers, software, internet. Hence the bargaining power of suppliers is low.

THE THREAT OF SUBSTITUTES:

When customers can choose between a lot of substitute products or services, businesses are
price takers, i.e. buyers determine the prices, thereby lessening the power of businesses. Here
there are very few substitute such as free online tax calculators, software which allow self
computation and payment of tax much easier. Hence threat of substitute is moderate.

COMPETITIVE RIVALRY:

The larger the number of competitors, along with the number of equivalent products and
services they offer, the lesser the power of a company. Since the barrier to entry is low there are
many firms in this industry. Hence it is necessary to retain the clients carefully. Hence
competitive rivalry is very high.

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 3. KEY RESULTS

During my intern at the organization I learned many lessons that apply not only to accounting and
the principles associated with the subject, but also to professional life in a work setting. The
purpose of this intern is to highlight my experiences at the firm that contribute to a holistic
educational experience. Internships are an opportunity to get to know about the sector and also
various networks. I will go in detail about my daily routine and how these exercises contributed
toward the overall experience. I also learnt some valuable things from my time spent at the firm.
Typically, internships are professional experiences that students gain during the program. More
specifically I wanted to get a more general view about this profession. I wanted to be exposed to
the standard practices that an accountant would be subjected to. Calculating real examples of taxes,
completing tax returns for customers and becoming familiar with real world problems in
accounting were all the learnings I was exposed to. The intern made me to know about the value of
punctuality and dress that need to be maintained in corporate environment.
At the start of my internship, I was little hesitant to talk to anyone, because I wanted to be
respectful of the time they had to address to millions of questions and issues as it is a part of
every auditor’s daily life. Then by days passing I realized that it was a mistake which helped to
actively participate and increase efficiency, morale and joy in the workplace. This program
helped me to balance my workload and prioritize my tasks. I also learnt the technical skills
including the calculation of tax. Firstly, got exposed to Tally ERP 9.0 software, which was
taught by the supervisor. It gave an insight about the key shortcuts used in Tally software. Tally
is majorly used in the organization to derive the profit and loss statement and balance sheet of a
company when an income statement, purchase or sales bill is given. It gives a clear view whether
any amount has been missed or entered wrongly. It really helped me to learn how calculations
are done to derive at the original amount. I learnt new words related to tax calculations. Filing of
IT and GSTR gave an insight how amounts are divided based on the tax and turnover of a
company. Overall, this two month of internship gave many fruitful intakes and mainly taught
about punctuality and provided great insights about the business environment and in the areas of
Finance and Accounting.

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 4. OBERSVATIONS AND SUGGESTIONS

From the 8 weeks of internship I got an idea about the firm, its structure, working culture,
how the organization handles its client and challenges faced when GST rolled out along with tax
audit. After my intern experience with the firm, I would recommend the following suggestions to
improve their work. They are as follows:

 The infrastructure and working condition can improve the working efficiency of the trainees.

 Audit and Assurance is the tough job. Some motivational meetings and mentoring would
bring good feel among employees for their work.

 Firms also lacks in marketing perspective as it does not have any marketer to market and
introduce their business, firm is getting business only through other firm personnel. So if
firm thinks to improve its business volume it needs a professional marketer as other big
firms adopted.

 The students doing article ship and trainees are not offered any incentive for the extra work
or over time.

 Adaptation of new technologies can attract new clients.

 The firm has professionally educated human resources which are their assets and also threat
for their competitors.

The above suggestions were made with the intend that it will create a better working
environment as well as the employees feel motivated and more committed towards their
work. Such a scenario can help in improving the existing working condition of the firm.

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 5. CONCLUSION

I was a finance intern in T.K.RAMASAMY AND CO, and during my internship I got
handful of knowledge on preparing tally, preparing balance sheet, statutory audits, filing GST
and income tax returns. This helped me to understand more on theoretical knowledge of
bookkeeping practices of different companies and it helped me to relate the concepts I had learnt
previously and also got knowledge about the opportunities and threats that will be faced while
entering into the organization, got exposure to do a work in an organization and also understood
about rules and regulations to be followed in an organization.

During my internship I was able to gain knowledge regarding some of the important things
like income tax, goods and services tax and the different tax slabs. Customer behavior was
understood more deeply as I progressed through the internship because I was given opportunity
to interact with the clients directly. Team spirit evolving in the organisation helped to get work
done in a faster way.

I found little difficulty during first few days of my intern but then when I was used with the
terminologies, then I had a better understanding of the work. Getting used to new words helped
me to gain knowledge about the business in a practical way.

Apart from the knowledge gained from the internship it enables me to gain first-hand
information relating to the functioning aspects of the firm. This internship added more
confidence to my professional approach and to build a strong positive attitude in myself. The
important things that I learned and followed during my intern are time management and self-
motivation.

I believe that this summer internship have given me value addition which in turn will help
my studies as well as my career in the corporate world.

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 6. BIBLIOGRAPHY

www.99corporates.com/Company-Overview/T-K-RAMASAMY-AND-CO

www.incometaxindia.gov.in

www.charteredclub.com

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7. APPENDICES

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