Summer Training Report

On

WORKFLOW IN ACCOUNTS AND FINANCE DEPARTMENT AT ANMOL

INDUSTRIES LIMITED

ANMOL INDUSTRIES LIMITED

Submitted In Partial Fulfillment

Of the Requirement

Of Bachelor of Business Administration

Training Supervisor Submitted By: RACHIT KHARE

Name: B.K. MOHAPATRA ENR No./Batch: 03350501715

Designation: MANAGER (FINANCE & ACCOUNTS)

Submitted To:

Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi

(Affiliated to Guru Gobind Singh Indraprastha University

CERTIFICATE

i
This is to certify that the project work done on WORKFLOW IN ACCOUNTS AND
FINANCE DEPARTMENT AT ANMOL INDUSTRIES LIMITED Submitted to Guru
Gobind Singh Indraprastha University, Delhi by RACHIT KHARE in partial fulfillment of
the requirement for the award of degree of Bachelor of Business Administration, is a
bonafide work carried out by him/her under my supervision and guidance. The work was
carried during 12/07/2017 to 24/07/2017 in ANMOL INDUSTRIES LIMITED

During the training period his/her behavior & performance was satisfactory.

Date: 24/07/2017

Seal/Stamp of the Organization Name of the guide: B.K. MOHAPATRA

Address: 38-A UDYOG VIHAR, GREATER
NOIDA-2013

ii
 DECLARATION

I hereby declare that this Project Report titled WORKFLOW IN ACCOUNTS AND FINANCE
DEPARTMENT AT ANMOL INDUSTRIES LIMITED submitted by me to Banarsidas Chandiwala
Institute of Professional Studies, Dwarka is a bonafide work undertaken during the period from 12/06/2017 to
24/07/2017 by me and has not been submitted to any other University or Institution for the award of any
degree diploma / certificate or published any time before.

(Signature of the Student) Date: 24/07/ 2017

Name: RACHIT KHARE
Enroll. No.: 03350501715
`

3
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled WORKFLOW IN ACCOUNTS AND
FINANCE DEPARTMENT AT ANMOL INDUSTRIES LIMITED is the bonafide research work carried
out by RACHIT KHARE student of BBA, BCIPS, Dwarka, New Delhi during June-July 2017, in partial
fulfillment of the requirements for the Summer Training Project of the Degree of Bachelor of Business
Administration.
He / She has worked under my guidance.

--------------------
Name
Project Guide (Internal)
Date:

Counter signed by
-------------
Name:
Director /HOD
Date:

4
 TABLE OF CONTENTS
PARTICULARS PAGE NO.
I. Executive summary: 6-7
This should include a brief summary of the entire
project with emphasis on objectives, research
methodology, findings and conclusions. It should
also highlight the original contribution made by
the candidate.

II Plan of the Research (Chapterisation): 8-13

Introduction
Objective of the study
Literature review And/or Theoretical Background.

III Company Profile (with its SWOT Analysis) 14-17

IV Research Methodology: 18-39

Universe & Sources of data
Sample size, if any with proper justification
Methods of data collection--- testing of questionnaire
Tools and techniques of analysis E.g Ratio Analysis.

V Data Collection and Data Analysis: 40-45

If you have collected the data through questionnaires,
you are supposed to give the summary of the data
collected in a tabular form)
In case you have used secondary data from
companys published reports, then do mention the
source of such data.

VI Findings & Conclusions 46

VII Bibliography 47

EXECUTIVE SUMMARY
5
Anmol Biscuits is a prominent Biscuit Manufacturing Company of India. Formed in 1994, Anmol is the
fastest growing manufacturer of biscuits in India. Headquartered at Kolkata, the company operates with an all-
India sales network of 600,000 retailers and 3,000 distribution channels. Anmol seeks to evolve as one of the
most trusted and responsible brand leaders in the packaged food industry through continuous improvement,
driven by integrity, teamwork, and innovation with a dedicated commitment to the society and the
environment. Today, taste, nutrition, hygienic standards, and acceptable price define the Anmol brand
promise. Anmol always looks forward to fulfill the aspirations with a global approach and delivers viable
returns to the society, consumers and its stakeholders. The Journey So Far The Anmol story began more than a
decade & a half ago, powered by one single vision - The Pursuit of Excellence. Its founding father was Shri
Baijnath Choudhary. The brand, known and recognized for its quality, has become everyones preferred choice
now. Starting out in Kolkata with one unit, Anmol now has expanded their manufacturing facilities and
introduced units at Greater Noida, Ghaziabad & Patna. Its present production capacity is around 16000 metric
tons per month. A 20% expansion plan in Greater Noida unit is on the cards along with the opening of a new
unit in Odisha by 2017. Its present turnover of Rs. 1000+ Crores indicates its swift upward curve.

This project is based on the Workflow in Accounts and Finance department of a Manufacturing
company based on the accounting reports of the company and the STANDARD OPERATING
PROCEDURE (SOP) which shows that on what basis books are being updated in a manufacturing
industry. The company that has been taken in consideration is ANMOL INDUSTRIES LTD that is a
manufacturing company (FMCG sector) providing food items like biscuits, cakes, rusk etc. to its
consumers.

OBJECTIVE:

The main objective of this study is to get familiar with the internal working of the corporate world,
enhancing skills, gaining practical knowledge. Working at an organizing makes an individual very much
familiar with the implications if theory in the practical life.

RESEARCH METHODOLOGY:

The process of research that has been considered is through the secondary source provided by the
company i.e. Annual Reports and Standard Operating Procedure (SOP), which sate ACCOUNT
PAYABLES, ACCOUNTS RECEIVABLES, CASH MANAGEMENT, TAXATION etc. There is a
proper structure that each of the head follows in order to maintain a discipline while updating the books.

FINDINGS AND CONCLUSIONS:

6
 From this project we can figure out that what is the market share of Anmol industries ltd, what is the
potential of Anmols to stand in front of its competitors and how are its products different form the
competitors products.

Knowing the financial position of Anmol by calculating the accounting ratios, which apparently shows
better position of a company in a more summarized way.

Going through the SOP of Anmol which is a kin for the working of the company

Finding out the companys position and relationship (internally) by doing the SWOT analysis.

How SAP is useful?

7
PLAN OF THE RESEARCH

8
INTRODUCTION

9
 INTRODUCTION OF THE COMPANY

The word Biscuit derives from the Latin word 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). There
is nurture; creation and determination behind munch of every crunchy Biscuit. To create those mouth-watering
delicacies, Anmol Biscuit is following the same path of creation under the strong leadership of Mr. Baijnath
Choudhary. From a single biscuit manufacturing plant Anmol is rising with a vision to become the most
popular biscuit brand across the globe. Anmols main driving forces to accelerate continuous growth are with
the views and values of Mr. Baijnath Choudhary, Mr.Bishwanath Choudhary, Mr. Dilip K. Choudhary, Mr.
Gobind Ram Choudhary and Mr. Bimal Kumar Choudhary.

Business Type: Exporter, Manufacturer Export

Anmols Market Share: 30%
Year of Establishment: 1994
No of Production Lines: 6
Export Markets: World wide
Monthly Production Capacity: As per requirement

Anmol presents an assortment of biscuits and cake with an array of very satisfying tastes and flavors that
ensures good health. Following are the food items that they provide:

Sweet Biscuits- Butter bake Biscuits, Butter bake Kaju Biscuits

Cream Biscuits- Lemon Mazaa Biscuit, Yummy Chocolate Temptation Biscuits

Health Biscuits- Tejus Digestive Biscuits

Snacks- Dream Lite Biscuits, Veg Munch Biscuits

Bar Cake- Chocolate Cake, Milk and Vanilla Cake

Anmol Industries Limited is a manufacturing company with a capital of 3,61,07,000 and reserves and surplus
of 82,82,29,763 and covering profits of 27,62,87,457 in the financial year 2015-16.

INTRODUCTION TO THE PROJECT:

10
The project will be based on the following topic i.e. WORKFLOW IN ACCOUNTS AND FINANCE
DEPARTMENT AT ANMOL INDUSTRIES LIMITED The mode of information for this project is
provided by the company which is the ANNUAL REPORT and its STANDARD OPERATING PROCEDURE
(SOP) consisting of:

1. Accounts Payables- Flowchart of how invoices are booked for materials and for others, Debit Note,
Vendor Payments and its checklists.
2. Accounts Receivables- Flowchart of Advance Receipts, Credit Note, sales order follow-ups and its
checklists.
3. Cash Management- Flowcharts for Cash Payments and Receipts.
4. Taxation- Flowchart for excise and sales tax.

The tool that I have been working on at Anmol is SAP, which is a users software used to maintain the
books following the procedure that is mentioned in SOP. There were certain heads that I have worked
on:
Purchase Entries
Booking of purchase invoices
Booking of entries in G/L account
Scrutinizing sales register through SAP.

OBJECTIVE OF THE STUDY:

To find out the Anmol market share in the industry.

Find out the Potential of Anmol.

11
 Calculating Ratios.

Which products are fail out of 20 Products.

Which products are more profitable?

What price of Product Sale More.

LITERATURE REVIEW AND THEORETICAL BACKGROUND:

The Standard Operating Procedure is a document, which consists of detailed working of a manufacturing
company as to what procedures theyll have to follow to maintain their books in a disciplined manner and how
they can make-work easy on a daily basis.
12
*First the Accounts Payables, which shows how following sub-heads like how invoices for materials and
others are booked in SAP-a systems software for maintaining records.
*Secondly, there is a description about the working in SAP as to how the entries are recorded and how they
are maintained.

Annual Reports
An annual report is a formal financial statement issued yearly by a corporate. The annual report shows assets,
liabilities, revenues, expenses and earnings - how the company stood at the close of the business year, how it
fared profit-wise during the year, as well as other information of interest to shareholders. Companies publish
annual reports and send abridged versions to shareholders free of cost. A detailed annual report is sent on
request. Remember an annual report of a company is the best source of information about the financial health
of a company.

One must read an Annual Report with emphasis on the following:

Directors Report and Chairmans statement, which are related to the current and future operational
performance of a company.
Management Discussion and Analysis or MD&A, which talks about the past performance and the
future prospects of the company and the industry in which it operates.

Auditors Report (including Annexure to the Auditors Report)

Profit and Loss Account.

Balance Sheet.

* Thirdly, there is a comparison being made between Anmol and its biggest competitor Britannia on the basis
of financial ratios.

13
 COMPANY PROFILE
(With its SWOT Analysis)

14
Appraising a companys resources, strengths, weakness & its external opportunities & threats, commonly
known as SWOT analysis. It provides a good overview of whether its overall situation is fundamentally
healthy or unhealthy just as important a first rate SWOT analysis provides the basis for crafting a strategies
that capitalizes in the companys resources aims squarely at capturing the companys best opportunities &
defends against the threats.

STRENGTH: WEAKNESS:

Finances are taken-over by qualified Decrease nutritional value.

employees.
Increases the cost of food product.
Employees are knowledgeable
Industry and technology requires high
Co-ordination amongst the employees. investment.

Company needs to focus on increasing Gross

Profit.

OPPORTUNITIES: THREATS:

Increases economy of India Many companies are result oriented increase

in pollution.
Generate employment opportunity
Sometimes provide poor quality of product for
Good quality of goods
more profit.
Provide competition to foreign companies
Lack of technology
Improve living standard
Unable to utilize all the resources efficiently.
Provide goods to nation at cheaper rate

Inflow of foreign reserve and funds for

government(taxes)

Anmol Industries Limited is a manufacturing company with a capital of 3,61,07,000 and reserves and surplus
of 82,82,29,763 and covering profits of 27,62,87,457 in the financial year 2015-16.

15
MAJOR INDUSTRY CONTRIBUTION

Anmols competitors are Parle product ltd, Priya gold Sunfeast, and Parle G and also have some local companies
Though Anmol is the oldest company in the Indian market but the company is facing tuff competition.

Anmols biggest competitor is Parle company and also have some other worldwide company as Bakemans-
10%, Smithkline -08%, Nutrie-04%, Kwality-04% Others-4%, but Parle has 30% of market share and the
Britannia has 40% market share Parle is biggest threats for Anmol.

Anmol is available in all over India. Anmols all the products find in every place. Like rural market, urban market and
cities. The Anmol biscuit is most admiring product and all towns also in village. The companys distribution
channel divided in three levels. Manufacturer to distributor, distributor to whole seller and whole seller to
retailer then the customer. The biscuit generally available in every daily needs shop provision stores, grocery
shop.

QUALITY COMMITMENT

Hygiene is a primary concern in Anmol. To maintain a germ free, harmless, quality food product, Anmol initiates lots of
innovations and experiments. One of the leading biscuit manufacturers of India, Anmol biscuits has two state-
of-the-art manufacturing units- one at Dankuni in West Bengal, and the other at Noida, near Delhi. The 32 manufacturing
units have been equipped with the latest modern machineries available in India, which facilitate in manufacturing uniform
quality of biscuits. The Good Manufacturing Practices (GMP) and the Hazard Analysis of Critical Control
Points (HACCP) are adapted at all the plants, along with the use of sophisticated packing machines and
materials, ensure that each and every biscuit manufactured never fails to delight the customers with its taste

16
and freshness. High quality products are delivered to the customers after undergoing stringent quality control
tests. The quality control tests are done at every stage of biscuit-making, i.e., inspection of raw materials,
processing and post-production goods by qualified personnel in well-equipped laboratories.
The manufacturing units and the products of Anmol are BSI certified and the Company is ISO22000: 2005 certified.
Anmol is also a member of Agriculture and Processed Food Exports Development Authority (APEDA) under
the Ministry of Commerce, Government of India. The company is also a member of Federation of Indian
Export Organization. Recently the company has also received the HALAL Certificate.

One of the strongest point of Anmol is its distribution network: The Company is having a network of
super stockiest, distributor and sales person. Anmol has become one of the largest brands
across the country having 110 Super stockiest, 2600 distributors & 250 sales people & present in about
more than 4 lacks retail shop.

Many products can be compared with Anmol Biscuit as they are similar. For e.g., 2 in 1 from Anmol its counterpart 3 in 1
from Mukund. Marie is common in almost every company and is produced under different names like Marie,
Marie Time from Anmol; Marie gold form Britannia; Marie Light from Sunfeast. So in order to make the market
of one product we have to fight with other similar product of different companies.

COMPETITOR PRODUCT

BRITANNIA MARIE GOLD, TIGER BISCUITS,, MILK

BREADS

BISLKFARM MARIE

SUNFEAST MARIE LIGHT

PARLE-G HIDE&SEEK

17
RESEARCH METHODOLOGY

18
 RATIO ANALYSIS

If performance of an industry as well as of the company seems good, then we need to check if at the current
price, the share is a good buy. For this look at the financial performance of the company and certain key
financial parameters like Earnings Per Share (EPS), P/E ratio, current size of equity etc. for arriving at the
estimated future price. This is termed as Financial Analysis. For that you need to understand financial
statements of a company i.e. balance Sheet and Profit and Loss Account contained in the Annual Report of a
company.

In order to understand the stability of the company, to know the strength of financial position of the company
one needs to go through the ratio analysis. Mere statistics/data presented in the different financial statements
do not reveal the true picture of a financial position of a firm. Properly analyzed and interpreted financial
statements can provide valuable insights into a firms performance. To extract the information from the
financial statements, a number of tools are used to analyze such statements.

1. In order to know the firms ability to meets its financial obligations in the short term, which is less than 1-
year liquidity ratio is calculated. Types of liquidity ratios are as follows:

A. CURRENT RATO:

Current ratio basically measures the current ability of the firm to meet its current liabilities from the current
assets.

CURRENT RATIO= CURRENT ASSETS/CURRENT LIABILITIES

= 48,84,71,012/40,03,23,773

= 1.21

If the current ratio is higher, then higher is the ability of the firm to meet its short-term liability. Since here the
current ratio turns out to be 1.21 then the company is in a good financial strength and the assets of the
company are being efficiently utilized to meets its financial debts.

B. QUICK ASSETS RATIO:

This ratio states the firms ability to covert the current assets of the firm quickly into cash to meet its current
liabilities. Quick assets are basically all the current assets excluding inventories and prepaid expenses.

QUICK ASSETS= QUICK ASSETS/CURRENT LIABILITIES

= 48,71,14,444/40,03,23,773

= 1.21

19
2. Profitability ratios basically measures the profitability and operating/management efficiency and is judged
mainly by the following ratios:

(i) Gross Profit Ratio: Gross Profit/Net Sales*100

=1,12,98,06,973/3,68,30,38,534

= 30.6%

(ii) Net Profit Ratio: Net Profit/Net Sales*100

` =37,97,56,716/3,68,30,38,534

= 10.31%

METHODS OF DATA COLLECTION

The methods of data collection were through documents and records of the company. The documents
that were taken in consideration were Standard Operation Procedure (major document for this project)
and companys financial statements i.e. Balance Sheets, Profit and Loss Account and Cash Flow
Statement (CFS), which shows the overall performance of the company and its market performance
during the annual year 2015-2016.

Reasons for choosing this method:

Consists of examining existing data in the form of databases, meeting minutes, reports, attendance
logs, financial records, newsletters, etc.
This can be an inexpensive way to gather information but may be an incomplete data source.

1. UNIVERSE AND SOURCES OF DATA:

SOURCES OF DATA:

SECONDARY DATA COLLECTION: Secondary data are those data, which are not gathered for the
immediate secondary data are those, which have been already collected, and analyzing by some similar
agency for its own use and later the same data is being used by a different agency.

According to W.A.Neishwanger: A primary source is an application in which data is being published

by same authority, which gathered d analyzed them. A secondary source is a publication reporting the
data, which have been gathered by other authorities nd for which others are responsible.
20
INTERNAL SOURCES:

SALES DATA

STANDARD OPERATING PROCEDURE (SOP)

SALES RATIO

SAP-INFO

RENT/SALES INDEX

EXTERNAL SOURCES:

REPORTS

POPULATION

GROWTH

NEW DEVELOPMENTS

ROAD CHANGES

21
STANDARD OPERATING PROCEDURE (MAJOR SOURCE):

A standard operating procedure, or SOP, is a set of step-by-step instructions

compiled by an organization to help workers carry out routine operations. SOPs
aim to achieve efficiency, quality output and uniformity of performance, while
reducing miscommunication and failure to comply with industry regulations.
The military (e.g. in the U.S. and U.K.) sometimes uses the term standing rather
than standard operating procedure, because a military SOP refers to a unit's
unique procedures, which are not necessarily standard to another unit.
"Standard" could imply that there is one (standard) procedure to be used across
all units.

Taking an example of Standard Operating Procedure as being implemented in

the manufacturing company is as follows:

There are certain heads under which step-by-step instructions are compiled by
the organization to help workers carry out a routine operations like:

A. IF THRERE ARE CERTAIN ACCOUNTS PAYABLES THEN THE FOLLOWING

PROCEDURE IS BEING FOLLOWED:

1. Flowchart- Booking of Invoices (For Materials)

2. Flowchart -Booking of Invoices (For Others)

3. Flowchart- Debit Note

OVERVIEW:

FOR BOOKING OF INVOICES (MATERIALS)

START

ALL THE BILLS ARE ENTERED IN INWARD

REGISTER AT THE GATE

22
TAKE THE ORIGINAL BILL OF EXCHANGE OR
SUPPORTING ADEQAUTE DOCUMENTS

BILLS ARE TO BE APPOROVED BY

RESPECTIVE DOCUMENTS

BOOK THE EXPENSE UNDER APPROPRIATE

HEAD

TAKE THE PRINTPOUT

WHATHER VOUCHER & INVOICE IS SENT TO

THE IMMEDIATE SUPERVISOR FOR
APPROVAL

YES

DO THE FILING

END

23
 FLOWCHART- DEBIT NOTE

WHETHER THE
YES GOODS RECEVED ARE
AS PER PO

NO

PREPARE THE REJECTION NOTE

DO THE ENTRY IN SAP SIMULTANEOUSLY,

REGARDONG DEBIT THE
PURCHASES OF EXPENSE CONCERNED
OF FULL INVOICE SUPPLIER
AMOUNT

INPUT VAT/SERVCE TAX IS TO

BE REVERSED ACCORDINGLY,
IF ANY (OF THE DEBIT NOTE
AMOUNT)

CHECK DEBIT NOTE IS APPROVED BY

SUPPLIER. GOODS REJECTED, IF ANY
HAVE BEEN SEND BACK FROM FACTORY
PREMISES.

-TAKE THE SIGN OF APPROVAL

AUTHORITY

B. FOR ACCOUNTS RECEIVABLES FOLLOWING END PROCEDURE IS

BEING FOLLOWED:
24
 1. Flowchart- Advance Receipts

2. Flowchart- Credit Note

OVERVIEW:

ADVANCE RECEIPTS

START

UDPDATE THE INCOME LIST, P.O.

PENDING, BANK ENTRIES AFTER 4 p.m.
OF THE PREVIOUS DAY.

UPDATE THE DEBTORS IN SAP

& THE LIST TO BE CIRCULATED TO

DESPATCH DEPARTMENT

CHECK THE BANK STATEMENT FOR ALL

AMOUNTS RECEIVED DURING THE DAY
UP TO 4 p.m.

DO THE ENTRIES IN SAP

BY 4:30 p.m. HANDOVER THE DETAILS OF

THOSE ADVANCES TO DESPATCH
DEPARTMENT

CREDIT NOTE
PROVIDE CREDIT
PROVIDE CREDIT
NOTE- DEBIT
END ACCOUNTS DEPT. HAS TO
NOTE- DEBIT
WHETHER WHETHER WHETHER STOCK
EXPENSES
WHETHER SANCTION CROSS
WHETHER VERIFY THE
DAMAGED
SALESMAN
EXPENSE
CLAIM EXPENSE
FORM IS SUPPORTING EXCEEDS 0.5% OF
APPROPRIATE
START INTIMATION RECEIVED
REIMBURSEMENT LETTER IS MADE25 & SETTLEMENT
WHETHER
INVOICE IT FEASIBLEFROM
APPROVAL
IS
CHECKDOCUMENTS
N APPROVED &IS
STATEMENT EXPENSE AREON THE BASIS OF WHICH
HEAD. VALUE
SALESMAN THE SITUATION
APPROVED? TOSUPER
FORM STOCKIEST
HAS
BRING BEEN
STALK WITH ITS NNN
TAKEN
IN
N ATTRACTED
APPROVED
END & YES
ATTACHEDOTHERS
END ? NO DAMAGED
DURING YESPERIOD
THE STOCK
O REIMBURSEMENT
YES CREDIT NOTEYES
IS ISSUED NO OR FINANCIAL
NOT YES RECORD OOO
O ATTACHED ? FACTORY
 STOCK IS TO BE
BURNT IN THAT PLACE
IN PRESENCE OF CO.
RSM

WHETHER
YES N
PHOTO OF
O
BURNT IS BEEN
SENT?
STALK IS TO BE CALLED IN
FACTORY PREMISES & TO BE
DISPOSED FROM HERE
CHECK WIEHGHT SLIP
& TRANSPORT BILLS

CHECK WHETHER
SANCTION NOTE IS
MADE & APPROVED BYE
RELEVENT AUTHORITY

-PROVIDE CREDIT
NOTE

-DEBIT DAMAGE
CLAIM

END

FLOWCHART:

1. CASH PAYMENTS

26
START
 IN GENERAL, TAKE APPROVAL FROM
GM IN RESPECT OF ALL CASH BILLS

CAHSH PAYMENTS

SALARY EXPENSE
LOAN & ADVANCES CANTEEN EXPENSES
CASH
REIMBURSEMENT
TAKE THE
CHECK THAT ONLY EXPENSE
SALARY SHEET
AMOUNT UPTO VEGETABLES
FROM HR BY 4TH GIVE CASH AS 5000 ONLY TO AND MILK PAID
OF THE MONTH IMPREST AS PER BE GIVEN TO IN CASH
POLICY. STAFF

MAKE THE
PATYMENT FOR
PAYMENTS FOR THIS TO
RECEIVE AN APPLICATION OTHER EXPENSE
HAPPEN TAKE
FROM EMPLOYEE FOR ALLOWED IN
PRIOR APPROVAL
ADVANCE DUTY CASH ONLY IN
OF DEPARTMENT
PREPARE THE APPROVED BY GM EMERGENCY
HEAD OF GM
VOUCGHER

NO DEBIT TO PREPARE THE PREPARE THE

SEND THE INDIVIDUALS VOUCHER VOUCHER
SALARY SHEET ACCOUNT
ORIGINAL TO
ACCOUNTS SEND THE
DEPT AND COPY ON THE OCCURRENCE OF VOUCHER &
TO HR AN EXPENSE TAKE THE BILL APPLICATIONS
ROM EMPLOYEE + SETTLE TO ACCOUNTS
ANY MORE OR LESS CASH DEPT TO HR
DIFF DEPT

PREPARE THE VOUCHER

27
 COLLECT THE VOUCHERS

MAKE THE SUMMARISED

SHEET OF THEM

GET IT SUMMARISED AND

SIGNED BY THE GM

SEN DIT TO ACCOUNTS

DEPT FOR DOING ENTRY
IN SAP.

END

2. CASH RECEIPTS

START

CASH WIYHDRAWAL
FROM BANKS

CASH WITHDRAWAL CANTEEN SALES

FROM BANK

RECEIVE RECEIPTS
ASSESS THE NEED OF CASH IN
FROM CANTEEN
BUSINESS AS PER THE
REQUIREMENTS

28
 MAKE THE SUMMARISED
REQUEST FOR CHECK SHEET OF THEM
PREPARATIONS FOR
CASH WITHDRAWAL

RECEIVE THE SIGNED

CHEQUE IN ACCOUNTS
DEPARTMENT

PREPARE THE VOUCHER

COLLECT THE VOUCHERS

GET IT VERIFIED AND

SIGNED BY GM

SEND TIT TO THE ACCOUNTS DEPT

FOR DOINF ENTRY IN SAP

END

29
INSTRUMENT ANALYSIS- TOOL USED BY THE COMPANY

The instrument that is used to analyze the procedure of SOP is done through SAP- a business application
software, as the market leader in enterprise application software, SAP is at the center of todays business and
technology revolution. SAP helps you streamline your processes, giving you the ability to use live data to
predict customer trends live and in the moment, across your entire business. When you run live, you run
simple with SAP.

History of SAP

The product of five ex-IBM employees, SAP started in 1972 as a small software company in Germany with
just one customer. The company's name stands for Systems, Applications & Products. Its founders had a
vision of producing software that could process data when a user wanted it, rather than in overnight batches as
earlier software did. Their first product was a modification of IBM's punch-card data storage, which stored
data mechanically and required overnight processing. For their client, the German branch of Imperial
Chemical Industries, SAP developed a real-time payroll and punch-card system in 1972.

SAP's ERP started as R/2, named for its real-time architecture and two servers. In later years it was called R/3,
for three servers: the application server, production server, and database server. In 2006, SAP released the
latest version, ECC 6.0, and in 2013 an Enhancement Package (EHP7) was released.

SAP's Enterprise Resource Planning Modules

SAP is a leader when it comes to neatly integrated ERP software; its various departmental applications work
symphonically. Beyond its basic models, SAP provides industry-specific add-on solutions. The SAP ERP suite
contains an enormous number of modules, and the main categories are:

Accounting:

Finance (FI)

Investment Management (IM)

Project Systems (PS)

Controlling (CO)

Enterprise Controlling (EC)

Financial Supply Chain Management (FSCM)

Logistics:

Material Management (MM)

30
 Sales and Distribution (SD)

Logistics Execution (LO)

Warehouse Management (WM)

Plant Maintenance (PM)

Customer Service (CS)

Fleet Management (FM)

Quality Management (QM)

Production planning (PP)

Environment, Health, and Safety (EH&S)

Human Resources:

Organization Management (HR-OM)

Personnel Management (HR-PM)

Personnel Administration (HR-PA)

Personnel Development (HR-PD)

Personal Time Management (HR-PT)

Payroll (HR-PY)

Training and Event Management (HR-TE)

Learning Solutions (HR-LSO)

Compensation (HR-CM)

Enterprise Compensation (HR-ECM)

Benefits (HR-BN)

Recruitment (HR-PB)

Loan (HR-LN)

Advance Business Application Programming (HR-ABAP)

Technology:

Cross-Application (CA), includes classification systems and workflow

Basic Components (BC or BASIS)

Programming (ABAP)

31
 Security and Authorizations

Other Modules (requiring separate installation):

Business Warehouse (BW)

Business Intelligence (BI)

Knowledge Warehouse (KW)

International Demonstration and Education System (IDES)

Customer Relationship Management (CRM)

Master Data Management (MDM)

Supplier Relationship Management (SRM)

Exchange Infrastructure (XI)

Process Integration (PI)

Global Trade Services (GTS)

Strategic Enterprise Management (SEM)

Business Consolidation and Sourcing (BCS)

Business Planning and Consolidation (BPC)

Corporate Finance Management (CFM)

Some of these modules, particularly those in Finance and Investment Management, can be broken down into
sub-categories of modules, such as Accounts Payable or Receivable, Investment Orders, or Investment
Support. Specific business operations and industry requirements will determine which modules are needed.

Finance, Controlling, Sales and Distribution, Material Management, and Human Resources are some of the
most important sub-modules in SAP. Depending upon the organization needs, a client can buy whatever
modules needed. For example, a client can buy FI, SD and MM modules only without buying CO and HR
modules.

3 Benefits of SAP Software:

Increased Productivity

For starters, businesses with SAP systems in place tend to enjoy much greater productivity among their
employees and various departments. Thats because, with an SAP system, theres no need for redundant data
entry within different software programs and fewer communication struggles between separate but
interdependent facets of a company.

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Without SAP systems in place, many businesses rely on multiple software programs and data-logging
platforms to enter numbers and generate reports, making it difficult for business management to see the big
picture. As a result, a great deal of time is wasted in trying to combine data from different departments into a
cohesive report. With an SAP system, this becomes completely unnecessary and employees are able to focus
on more important tasks.

Significant Cost Savings

Another one of the great benefits of SAP software is that, simply put, it can save businesses a lot of money;
this remains true both of small and large businesses. Specifically, by using one software program to track all
of a companys data and generate reports, businesses dont have to worry about purchasing multiple pieces of
software for multiple departments. Relying on just one form of software drives costs down significantly.
Furthermore, theres the added cost savings that come along with greater efficiency and process
standardization within a company.

Consistent Operations

Finally, proper use of SAP software allows businesses of all sizes to align their strategies and ensure that all
facets of the company are on the same page. Through the consistent entering and reporting of numbers and the
generation of reports, management can get a better idea as to whats going on within the company in a broader
scope.

Based on reports generated by SAP software, management can easily collaborate with other departments and
ensure everybody is working towards the same goals and has access to the same information. This, combined
with all employees using the same software to input data, allows for more consistent operations as an
organization, making it easier to work towards short- and long-term goals.

*MY WORK IN SAP

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SAP is basically a users software that enables the user to enter information about daily transactions to
maintain the records and summarize it at the end of the month.

The work that I was asked to do was to record the entries of all the upcoming bills in SAP under the
supervision of the accounts manager and creating invoices- in short updating the journal. There are certain
codes that are being used in SAP for entering the information which are embedded in the software and
according to the mode of information that needs to be entered. Since my work in Anmol Industries was based
on Financial Accounting therefore for entering the information there are certain Transaction Codes called as T-
CODES that are used for e.g.:

HEAD T-CODES

General Ledger Account (G/L A/C) FBL3N

Vendor a/c FBL1N

Customers a/c FBL5N

In order to get the sales list ZSALES

To get the sales list of purchase the code is: ZPUR_REG1

To open the Cash Journal FBCJ

To check the list of materials MB51

To open the vouchers that needs to be created ZPBV

To check the status of stock the code MB5B

To open the list of vendors F4

For executing F8

OVERVIEW OF HOW WORKING IS BEING DONE IN SAP (BASED ON MY WORK):

The first kind of entry that was made was based on the General Ledger account (G/L A/C). Basically general
ledger is account which is used to create entries regarding the companies financial transactions and includes
accounts of assets, liabilities, owners equity and, revenues and expenses.

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Here to continue working on SAP a unique id and password is being provided to each employee and they can
continue there working on it after logging in with their id password. But before that the client number is being
given to every company, which means that the company is a client of the SAP and before logging in they need
to mention there client number which is 7000 in this case.

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Once the user has logged in a list of all the heads are shown which are embedded in SAP and as per the work
that particular head is chosen. Every head has a Transaction code (T-Code), which is being entered, in the
address area, which helps into entering that particular head to continue with the respective work.

An example of the work is being shown below with the figures of how entries are being updated in SAP.

Here the entry being shown is of the conversion charge that is being booked in SAP.

Here the first step where the data is to enter be is Header Data, which includes the date of the document and
date of posting, the company code, which in case of Anmol Industries is 7000. The reference here goes for the
bill no followed by the narration. A point that is to be noted here is the Posting Key, which states whether
the account is to be debited or it is to be credited which codes assigned to the debit or credit. As shown in the
figure the PstKey is 40, which means that the account is being debited.

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The next step is to add G/L a/c item, which is the amount by the entry is to be debited, the cost center where
the account is being generated and the profit center which is the area where the where the profit is being
generated. The cost center and the profit center have its own unique id as shown in the figure.

Further the next step is to enter the PstKey for which the amount is to be credited i.e. 31 against the debited
account.

Note: Business Area is 7520.

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After debiting and crediting the accounts with their amounts the data is simulated and is booked after it in
SAP.

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The next head under which the work is being done is entering the incoming invoices i.e. purchase
invoices.

Here first the transaction type is entered which invoice in this case. Then we need to mention that on
which date invoice is being created i.e. Invoice date

*Note that the tax is being automatically calculated on the specified amount by clicking on
CALCULATE TAX and if the transaction is an inter-state transaction then a CST of 2% being levied on
the principal amount.

After mentioning all the details we click on simulate on the document tab and the entry for the same is
created and tax is calculated automatically as we can in the figure that on the principal amount Rs. 200
tax is being calculated by SAP and the balance is shown.

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The next head is SALES under which all the transactions related to sales are being mentioned. Here the
items that are of our concern are the business area, the plant, and the billing date i.e. the intervals we
need to check the sales list.

Once the details are being mentioned F8 is used to view the list of all the sales to respective parties.

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DATA ANALYSIS

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Data Analysis is the process of systematically applying statistical and/or logical techniques to describe and
illustrate, condense and recap, and evaluate data. According to Shamoo and Resnik (2003) various analytic
procedures provide a way of drawing inductive inferences from data and distinguishing the signal (the
phenomenon of interest) from the noise (statistical fluctuations) present in the data..

While data analysis in qualitative research can include statistical procedures, many times analysis becomes an
ongoing iterative process where data is continuously collected and analyzed almost simultaneously. Indeed,
researchers generally analyze for patterns in observations through the entire data collection phase

An essential component of ensuring data integrity is the accurate and appropriate analysis of research
findings. Improper statistical analyses distort scientific findings, mislead casual readers (Shepard, 2002), and
may negatively influence the public perception of research. Integrity issues are just as relevant to analysis of
non-statistical data as well.

DATA ANALYSIS:
While going through the Standard Operating Procedure (SOP) we can analyze that there is a systematic
procedure for every operations that is being done in the finance department.
Before starting working at Anmol I was asked to analyze the annual report and the companys Standard
Operating Procedure which made me more clear about the company and while going through its annual report
the company seems to be in good hands. All the assets of the company are efficiently utilized which could be
figured out from while calculating the financial ratios.
* If the current ratio is higher, then higher is the ability of the firm to meet its short-term liability. Since here
the current ratio turns out to be 1.21 then the company is in a good financial strength and the assets of the
company are being efficiently utilized to meets its financial debts.
* The ability of the firm to meets its current liabilities by converting its current assets quickly into cash is
1.21, which is a good indication since if a situation arises for the company to meet its current liability in a
short period the firm has an ability to do that.
* While comparing the gross profit of Anmol Industries Ltd and Britannia Industries, the gross profit Anmol
industries comes out to be 30% which is lower as compared to Britannia Industries 43.48%. Gross profit ratio
indicates what percentage of profit the company has acquired before the deduction of taxes and expenses from
the total revenue. The gross profit of a company should be higher for itd future growth.
* By calculating the net profit ratio of Anmol Industries ltd. and Britannia Industries we can figure out that
Anmol industries have a net profit of 10% as compared to Britannia Industries ltd, which is 9%. This means
that the Anmol Industries has a net income of Rs. 0.10 for each rupee of total revenue earned by the company
as compared to 0.09 that of Britannia Industries ltd. This means that that the profit of Anmol after deducting
the costs and taxes is higher as compared to Britannia Industries.

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SAP
While working on SAP there were T-CODES that are in-built in SAP and is helpful while opening any head.
These T-CODES are basically assigned to every head inbuilt in SAP and are usually directed as per use. The
biggest advantage of working on that I have experienced in every record that is maintained is safe with the
user as a unique id and password is being created by the user and the entries mentioned by him/her can only
be scrutinized by the user who has that unique id password- In short SAP is reliable even if the information is
confidential.

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 FINDINGS
While working on this project I can figure out that Anmol Industries ltd is focusing on increasing there sales
in order to increase their turnover from 1000+ cr. to 2000+ cr. the internal working of Anmol is with perfect
coordination where every employee is aware of the current working conditions and is well aware of their
organizations goal and has developed their interest with the organizations interest.

The market share of Anmol is approx. 30% amongst.

Anmols net profit is higher than its competitor Britannia Industries ltd.
The gross profit of Anmol is lower than its competitor Britannia.
The working condition at Anmol is apparently positive.
Anmol has seen a massive growth in its sale as compared to last year.

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 CONCLUSION
The sole motive for any organization is growth by providing the best out of their product, which Anmol
Industries comes out with their soul and heart. Not only they focus on profits but on employee and customer
satisfaction. All the employees are well trained and they too are focusing in maintaining a good environment
inside and outside the organization.
There are certain procedure that every company follows to maintain an easy out flow of work in the
organization and Standard Operating Procedure of the company is a soul for making that work go with ease.it
is very important to maintain the SOP in order to ensure that, if any hindrance occurs it can act as a ray to
continue the work.
Anmol is offering various food consumables, which are running good in the market and are giving a tuff
competition to other companys product. Britannia being Anmols biggest competitor is facing a tuff
competition.
Every year the sales of Anmol is increasing with a huge difference in there sales figures which is increasing
the overall revenue resulting in an increase in their Gross Profit ratio and Net Profit ratio. Currently Anmols
Net Profit ratio is at par as compared to its competitors and the company is focusing on increasing its turnover
from 1000+ cr. to 2000+ cr.

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 BIBLIOGRAPHY

Standard Operating Procedure of the company

Annual Reports
http://www.anmolindustries.com
www.zaubacorp.com/company/ANMOL-INDUSTRIES-
LIMITED/U15412AS2002PLC006936.
https://www.itgct.com/benefits-of-sap-software-what-can-it-do-for-your-business/
SAP- INFO
https://ori.hhs.gov/education/products/n_illinois_u/datamanagement/datopic.html

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