A

PROJECT REPORT

ON

SUMMER TRAINING UNDERTAKEN AT

A.K.A & CO.

In partial fulfilment for the award of the degree of

Bachelors of COMMERCE (BCOM) Honours

Submitted by

Arjit Maheshwari

BCMH1CF11012

Batch of 2011-14

At

ITM UNIVERSITY, OPP. SITHOULI RAILWAY

STATION,

JHANSI ROAD, GWALIOR, M.P.

June-July 2013

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DECLARATION

I, ARJIT MAHESHWARI student of ITM UNIVERSITY, Gwalior Batch in BCOM

Honours, hereby declare that, this Project Report under the title A.K.A & CO. is the record

of my original work under the guidance of CA Mr. Arvind Kumar Agarwal. This report has

never been submitted anywhere else for award of any degree or diploma.

Signature of the Student:

Place: Etah

Date:

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ACKNOWLEDGEMENT

It is a great opportunity & pleasure for me to express my profound gratitude to wards all the

individuals who directly or indirectly contributed towards completion of this report.

Working on this report was a great fun, excitement, challenges and a new exposure in the

field of finance. I am greatly in debated to under whose guidance and concern I am able to

bring the report into its real shape.

I am thankful to Mr.Abhinandan Chakroborty and all faculty members of Management

Department in providing me useful guidance for the completion of this report. I convey my

gratitude to all those who are directly or indirectly related in the completion of this project

report.

Arjit Maheshwari

Roll No: BCMH1CF11012

Course: BCOM (Honours)

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INDEX

S. NO. CONTENT PAGE

1Chapter 1:

Introduction

5

2Chapter 2:

Industry Profile

6

3Chapter 3

Company Profile

10

4Chapter 4

Objective of the Study

12

5Chapter 5

Job / Work Description

13

6Chapter 6

Achievements & Learning

26

7Chapter 7

Suggestions

27

8Chapter 8

Limitations

29

9 Conclusion 30

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Introduction of the Organization’s Business Sector

Organization is working as a Chartered Accountants firm under the rules and regulations and

code of ethics designed for CA firms by ICAI (The Institute of Chartered Accountants of

India).

The Institute of Chartered Accountants of India (ICAI or the Institute) was established as

statutory body on July 1, 1961 under Chartered Accountants Ordinance, 1961 to regulate the

profession of accountancy in the country.

ICAI is governed by the Council which consists of nineteen members. Fifteen members are

elected from amongst the members for a period of four years. The remaining four of the

Council members are nominated by the Government of India.

Vision of the ICAI is:

The profession of Chartered Accountants in India should be the benchmark of professional

excellence upholding the principles of integrity, transparency and accountability.

Mission of ICAI:

Is to achieve excellence in professional competence, add value to businesses and economy,

safeguard public interest; ensure ethical practices and good corporate governance while

recognizing the needs of globalization.

These kinds of firms provide different kinds of professional services like audit, taxation and

management consultancy to its clients.

The Chartered Accountancy course is conducted by the Institute of Chartered

Accountants of India, which has its headquarters in New Delhi, 5 regional offices

(Calcutta, Kanpur, Chennai, Mumbai and New Delhi) and 81 branches under these

regional centres.

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Organizational Structure

A hierarchy is an arrangement of items (objects, names, values, categories, etc.) in which

the items are represented as being "above," "below," or "at the same level as" one another

and with only one "neighbour" above and below each level. These classifications are made

with regard to rank, importance, seniority, power status, or authority. A hierarchy of power

is called a power structure.

Partners

Directors

Senior Managers

Managers

Supervisors

Senior Trainee Students

Junior Trainees

Partners are often the founders of the firms. Most of the firms’ names are associated with

the names of partners. They are basically the main parties who issue and sign any report

(specifically audit report) on behalf of the firm. Partners mostly communicate with the

Senior Managers. In other words, the progress of any report and any inquiry is made from

the Senior Managers and hierarchal structure is strictly followed to avoid any disruption.

Managers are inquired of by Senior Managers and mostly manager manage audit field

works etc and after field work managers with cooperation of senior managers makes and

finalize any audit report to be issued. Senior Manager is a qualified Chartered accountant

having more than 10 year working experience.

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Field work and information collection and implementation of policies by adopting changes

in rules & regulations is the main responsibility of supervisors and trainees. They use

different kind of techniques for error and fraud detection.

A.K.A & Co. Is having its head office in Etah. Almost all the controls and regulations are

dealt at head office in Etah. All the offices constitute different number of departments who

basically handle their respective functions. The major departments include

Audit and Assurance Department:

Firm provides audit and assurance services to wide range of clients which include

performing audits of financial statements of limited companies, NGOs and partnerships.

Firm also performs special assignments which include management audits, internal audits

and investigations. Audit focuses on business issues and the matters that can impact on the

financial statements, whilst also retaining the basic audit procedures that test the

information contained in the financial statements. Services are aimed to comply with the

legal requirements as defined under the various laws and regulations in Pakistan. In doing

so firm not only identify the non-compliances but also assists clients in its rectification,

designing remedial measures and provides guidance to adhere with the laws and

regulations. Firm always endeavour to meet reporting deadlines as set out by the laws and

regulations or as mutually agreed with clients, without compromising the professional, legal

and ethical requirements.

Firm emphasis on delivering high quality services to clients, adding value to their business

through identification of existing and potential control risks and suggesting best possible

measures in the given circumstances. Firm always place priority in deploying audit teams to

clients who are well equipped with the specific industry knowledge, experience and are

professionally sound.

Tax & Corporate Department: Firm delivers taxation services to clients and assists them

in obtaining optimal tax benefits available under the laws. Firm also assist clients to comply

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with the tax rules and regulations and always keep them updated with the latest

developments and amendments. Tax personnel are qualified professionals, experienced and

knowledgeable. We maintain a comprehensive tax library which always provides ready

references and timely solution in complex situations. Firm provides a comprehensive range

of tax services which includes;

Preparation and submission of annual tax returns

Compliance services

Tax advisory services

Representation and litigation with tax authorities

Personal income tax services

In A.K.A. & Co. same staff is handling with tax matters as well as corporate sector. While

in corporate firm provides different kinds of services relating to corporate sector from

incorporation to winding up of a Company.

Computer Department: Department handles the computer related matters and assists

other departments in working properly and efficiently. Department deals with online filing

of returns of income for tax department and finalize audit reports in proper format in a

presentable manner. It deals with networking of computers in office and all other problems

which may be faced by computer users time to time.

Correspondence Department: It handles with all the correspondence of the firm by

sending the solicited and unsolicited information from time to time. Effectively and

efficiently manage the day-to-day operations of the Correspondence. Interact with clients to

resolve policy and customer issues. Identify trends and remove obstacles in Statement

production and delivery by properly maintaining record of all communication for future

reference.

HR Department: This department is mainly concerned with the recruitment, hiring/firing

of the firm and this department presents the timely reports on effective utilization of the

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resources by the firm. A purpose of the human resource is to keep the trained employees

and recruit new energetic staff to work. Another purpose of this department is to provide a

good working environment for staff and try to make by facilitating them and arranging

some recreational activities for them. HR knows the real worth of its employees so cares for

them and motivate them to work more efficiently and diligently.

The hierarchy adopted by A.K.A. & Co. is in accordance with the legal structure a CA firm

shall have. Although the ICAI rules permit of not having the supervisors and does not make

it mandatory having senior manager and manager, yet this goes as additional benefit for the

firm of having such an extensive hierarchy.

COMPANY PROFILE

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A. K. A. & Co. was established in the year 1991. It is a leading chartered

Accountancy firm rendering comprehensive professional services which include audit,

management consultancy, tax consultancy, accounting services, manpower management,

secretarial services etc.

 

A. K. A. & Co is a professionally managed firm. The team consists of distinguished chartered

accountants, corporate financial advisors and tax consultants. The firm represents a

combination of specialized skills, which are geared to offers sound financial advice and

personalized proactive services. Those associated with the firm have regular interaction

with industry and other professionals which enables the firm to keep pace with contemporary

developments and to meet the needs of its clients. 

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.

AUDIT

 

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.

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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.

 

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 Societies.

Information System Audit

Internal Audits.

Objective of the Study

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I choose to work with A.K.A AND CO. During this internship I have learnt many new

skills. Before internship I have only theoretical knowledge about work in organisation but

now I have practical some practical experience of working in organisation. Now I have

knowledge about the organisation’s working environment and how organisations work

and achieve their goals and objectives.

This internship has to gives me the understanding of business and also about the

elements of strategic thinking, planning and implementation, and how these things are

applied in a real world organisation environment. Following are the objectives that I

have in my mind before working as an internee.

To improve communication skills.

To analyze the business situation.

To establish high standard in professionalism.

To learn more than the theoretical knowledge.

To learn book keeping practices of different companies.

To apply the theoretical knowledge in actual organisation.

To compare practical aspects with theoretical aspects.

To make quick decision in real situation.

To learn how to promote and to conduct research in business area.

To promote my personal knowledge and professional preparation for future. To

properly integrate my theoretical knowledge and practical work.

To plan for the future of oneself and learn how to adjust in an organisation.

To know how to present your recommendations in front of your boss.

To get knowledge of opportunities and threats while entering into an organisation.

To get exposure to do a work in an organisation and also known about organisational

behaviour, ethical rules and regulations.

JOB DESCRIPTION

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I have tried my best to enhance my abilities and apply the knowledge that I gained during the

studies. On my first day at firm, company secretary Miss. Nensi Goyal gave me training

session about TDS returns and computerised accounting in tally software. Mr. Rahul Goyal

(assistant) also shared his practical experience with me and gave me some techniques of this

process. He also guided me that how to prepare VAT return and creating data in income tax

return preparation software.

Different task that I performed during my internship:

1. Maintenance of accounts/ book keeping.

2. TDS return preparation.

3. VAT returns preparation.

Software used during internship:

1. Compuoffice

2. Tally software

Overview of TDS

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Tax deducted at source (TDS) is a tax that is deducted from income that a company in

India pays to a recipient or supplier if the income amount exceeds a specific statutory

limit in a financial year.

The types of income that are subject to TDS include:

Salary.

Interest and dividends.

Winnings from the lottery.

Insurance commission.

Rent.

Fees from professional and technical services.

Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice submitted by a

supplier or from the payment that is issued to the recipient or supplier. Examples of

recipients and suppliers include contractors, providers of professional services, employees,

and real estate landlords. Companies submit a TDS certificate to each supplier on a

monthly or yearly basis. The certificate includes the payments, as well as information

about the company and supplier. Companies must also submit an annual return to the

government for each recipient or supplier for the financial year. TDS certificate can be

either Form 16 (R75I10A) or Form 26Q-P2P-IND (R75I122EQ). Form 16 is the TDS

certificate which an individual submits and Form 26Q is the TDS certificate which a

company submits to the tax authorities.

TDS must also be deducted from payments issued to third parties by both corporate

and noncorporate entities. The entity must deposit the amount owed for withholding at

any of the designated branches of banks that are authorized to collect taxes on behalf

of the government of India. The entity must also submit the TDS returns, which contain

details about the payments and the challan for the tax deposited to the Income Tax

Department (ITD).

For electronic TDS, companies must generate the Form 26Q for each financial quarter.

This is a statutory requirement for the ITD.

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Process flow of TDS

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

Preparation of VAT returns

 

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Create vouchers for suppliers with pay status % and applicable tax type

Calculate TDS on vouchers

Issue payments to suppliers with TDS amounts deducted

Submit monthly payment for TDS to tax authority

Update Challan

Generate monthly statements and submit quarterly and annual returns

At the end of the month or each quarter, you file a VAT return with the tax office, and remit

the VAT due.

Prerequisites

You have carried out the activities described in closing for VAT.

Process

1. You prepare a copy of the  sales ledger and the purchase ledger.

The ledgers show the invoices that have been paid and on which VAT is thus

due. The ledgers are for your own reference in the event of a checkup by the

tax office.

2. You prepare the VAT return. This consists of two steps.

1. You calculate the total amounts of VAT for each tax code.

2. You print the VAT return.

The system fills out the fields in the VAT return using the totals that you

calculated in the first step.

3. For information about preparing VAT returns for VAT withheld from vendors.

4. You file the VAT return with the tax office and remit the taxes.

Compuoffice online software:-

Tax Solution for professionals to provide end-end management of every stage of the tax

life cycle - from provision to estimates and extensions. returns, audit, amendment and

planning.

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A solution for

Income Tax Return

TDS return

Service tax return

Balance sheet & audit report

VAT returns (Raj./UP/MP)

Checking of assessment orders

ROC form and filling

CMA

AIR return

Document Management

Challan

All other required forms

Standard letters to clients

Standard formats of departmental letters

Office assistance works & mechanism.

Various types of reporting.

Features:-

Single switch board for all software

Common client information for all software

Searching of records by Code No., Name PAN, etc.

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Online auto-update of software

Defining user rights with grouping facility.

Password protection for individual clients

Active/De-active of individual party from particular/all software

Single window/screen to input, edit, view and print.

Front-view buttons for easy understanding.

User friendly similar layout of all software.

LAN compatible

Various data input validation checks to eliminate errors.

Easy auto backup of your precious data.

Option to access from any where in the world.

Overview of Tally ERP 9

Journal entry

Journal Vouchers are used to adjust the debit and credit amounts without involving the cash

or bank accounts. Hence, they are referred to as adjustment entries.

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Creating a Journal Entry

Journal entries are usually used for finalization of accounts.

To pass a Journal Voucher,

Go to Gateway of Tally > Accounting Vouchers

·         Click on F7: Journal on the Button Bar or press F7.

For example, there may be entries made for  interest  accrued or  interest due. If you have

to receive Interest from a party, the same can be entered using Journal Voucher.

1.      Debit the  Party

2.      Credit the Interest  Receivable Account

The Journal entry is displayed as shown:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

     ALT+R: Recalls the Last narration saved for the first ledger in the voucher,

irrespective of the voucher type.

         CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective

of the ledger.

Allowing Cash Accounts in Journals

Journals are adjustment entries, which do not involve Cash account and Bank account.

However in exceptional cases where the user would like to account Journal entries involving

Cash/Bank Account, Tally.ERP 9 has the flexibility of passing such entries by enabling the

option under F12 configuration.

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To enable Cash Accounts in Journal voucher,

·         Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry

Configuration).

To pass a Journal voucher with Cash/Bank Ledger,

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

2.      Press the spacebar at the Debit or Credit field.  

The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown:

Debit Note Entry

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Debit Note  is a document issued to a party stating that you are debiting their Account in

your Books of Accounts for the stated reason or vise versa.   It is commonly used in case

of Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by

you on behalf of the party etc.  

Debit Note can be entered in voucher or Invoice mode.

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

·         To use it in Voucher mode you need to enable the feature in F11 :Accounting Features -

Use Debit / Credit Notes.

·         To make the entry in  Invoice mode enable the option F11: Accounting Features -  Use

invoice mode for Debit Notes.

To go to  Debit Note Entry Screen,

Go to Gateway of Tally > Accounting Vouchers

·         Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V.

Pass an entry for the goods purchased returned to Supplier A:

Special Keys for Voucher Narration Field:

         ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of

the voucher type.

·         CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective

of  the ledger.

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Credit Note Entry

Credit  Note  is a document issued to a party stating that you are crediting their Account in

your Books of Accounts for the stated reason or vise versa.  It is commonly used in case of

Sales Returns.

A  Credit  Note can be entered in voucher or Invoice mode.

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

·         To use it in Voucher mode  you need to enable the feature in  F11 :Accounting

Features -  Use Debit / Credit Notes.

·         To make the entry in  Invoice mode  enable the option F11: Accounting Features -

Use invoice mode for Debit Notes.

To go to Credit  Note Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

1.      Click on Ctrl+F8: Credit  Note  on the Button Bar or press  Ctrl+F8.

You can toggle between voucher and Invoice mode by clicking Ctrl+V.

Pass an entry for goods sold returned from Customer A:

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Special Keys for Voucher Narration Field:

·         ALT+R: Recalls the Last narration saved for the first ledger in the voucher,

irrespective of the voucher type.

·         CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective

of  the ledger.

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LEARNING

I learned through my training program, that how I can

Improve communication skills.

Analyze the business situation.

Establish high standard in professionalism.

Learn more than the theoretical knowledge.

Learn book keeping practices of different companies.

Apply the theoretical knowledge in actual organisation.

Compare practical aspects with theoretical aspects.

Make quick decision in real situation.

Learn how promote and conduct research in business area.

Promote my personal knowledge and professional preparation for future. To

properly integrate my theoretical knowledge and practical work.

Plan for the future of oneself and learn how to adjust in an organisation.

Know how to present your recommendations in front of your boss.

Get knowledge of opportunities and threats while entering into an organisation.

Get exposure to do a work in an organisation and also known about organisational

behaviour, ethical rules and regulations.

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Suggestions

They have good opportunity to introduce the ISO standards training program which

no other firm is giving to customer.

Try to adopt new technologies that their competitors are not using.

Make a network that allows its customers to negotiate with them easily.

In comparison of A.K.A AND CO. With its competitors has an edge to make an

accurate and error free report.

The local economy continues to be strong and we believe our typical clients will

continue to flourish.

The company has mostly professional educated human resources, which are the

biggest threat for their competitors.

The A.K.A. AND CO. Has the facility to give coverage even the small retailers for

income estimation who want to take loan from bank.

A.K.A & Co strongly needs to improve its network firms so as to be counted among

one of the extensively know firms in UP. The partner needs to make the best use of

their goodwill to bring more clientage and reputation to firm. They need to offer the

audit services at most economical cost with the assured quality services to retain and

expand clients.

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The infrastructure and working condition reviews can improve the working

efficiency of the trainees. Audit and Assurance is the tough job. Some motivational

meetings and mentoring exercises would bring good feel among employees for their

work. Time to time financial bonuses or performance incentives will energize the

staff.

The trainees are not offered extra financial or any other incentive for the extra work

or over time. This causes some sort of mental stings which immediately needs to be

overcome by the management. The firm, to be more competitive in days to come,

still has room for improvement in Information Technology. As firm don’t have any

of its website to attract customer and their timely feedback as most of the good

firms have their own web and well organized.

Firm also lacks in marketing perspective as it does not any marketer to market

and introduce their business, firm is getting business only on personal relations of

the partners and other firm personnel. So if firm thinks to improve its business volume

it needs a professional marketer as many other big firms adopted and have complete

marketing department.

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Limitations

They have a small staff with shallow skills base in many areas.

Less number of staff members.

Developments in technology change this market beyond A.K.A AND CO. Ability to

adopt.

Change in government policies and procedures may act as threat for company.

A small change in focus of large competitor might wipe out any market position

A.K.A & CO. achive.

A.K.A &CO. Has many competitors. Under certain circumstances these

competitors may act as a major threat for the organisation.

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Conclusion

A.K.A & Co is overall one of the profit making and reputed firm of Etah. The

organization since its very first day is devoted to providing quality services. The

detailed and through review of work and clients’ trust shows the perfection with

which it is working.

The firm has earned a distinction of being placed in the category 'A' in the list of

panel of auditors maintained by State Bank of india. Moreover only these “A”

category firms can audit of listed companies.

The Institute of Chartered Accountants of India has also carried out the Quality

Control Review and has issued satisfactory QCR report stating that the firm has

conducted the audits of the clients in accordance with International Standards on

Auditing.

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Reference & Sources

In my work I used different webs to collect information/data which includes.

WWW.AKA&CO.COM

WWW.ICAI.ORG

WWW.WIKIPEDIA.COM

WWW.INVESTOPEDIA.COM

www.computaxonline.com

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