Summer Internship Report

School of Business

Galgotias University

Submitted By:
Aman Mandal
23042150036

23GSOB2150304

MBA (FM) 2023-

2025
CERľIÏICAľE
 DECLARAľION

AMAN MANDAL, Admission No. 23GSOB2150304, Enrollment

No. 23042150036 student of MBA of GALGOTIAS UNIVERSITY
hereby declare that the Project Report entitled "FINANCIAL
ACCOUNTING" is an original work and the same has not been
submitted to any other institute for the award of any other degree.
And the suggestions as approved by the faculty were duly
incorporated.

AMAN MANDAL
 ACKNOWLEDGEMEN
ľ

It is a matter of pride and privilege for me to have done a

summer internship project in Miter And Miter Engineers
Pvt. Ltd. and I am sincerely thankful to them for providing
this opportunity to me.

I am thankful to Kamal Singh Saini for guiding me through

this project and continuously encouraging me. It would not
have been possible to complete this project without his
support.

I am also thankful to all the faculty members of Galgotias

University and my mentor for helping me during the project.

Finally, I am grateful to my family and friends for their

unending support.

Aman Mandal
23GSOB2150304
 INDEX (Table of Contents)

S. No. Paíticul Pg.No

aí .
Intíoduction 1-6
1
Accounting Definition 6-8
2
 Impoítance of Accounting 8-9

 Natuíe of Accounting 9-10

 Scope of Accounting 10-12

Company Píofile 13-15

3
4 Woík 16-40

5 Leaíning Objectives 40-40

6 Role and Responsibilities 41-41

7 Píoject 41-42

8 Leaíning outcomes 42-42

9 Píactical Application of Accounting 42-43

Concepts
1 Challenges Ïaced 43-43

0
1 Achievements and Contíibutions 43-43

1
1 Conclusion 44-44

2
1 Recommendations 44-45

3
Internship Report on Accounting
Prepared by: Aman Mandal
Master of Business Administration (Financial Management)
Galgotias University

1. Introduction
The internship undertaken as part of the Master's in Business Administration
(Financial Management) program provided valuable insights into practical
applications of accounting principles within a corporate setting. This report
aims to summarize the experience gained, focusing on basic accounting
practices observed and implemented during the internship at Miteí And
Miteí Engineeís Pvt. Ltd.

2. Accounting Definition
Accounting in a company refers to the systematic process of recording,
summarizing, analysing, and reporting financial transactions and information
pertaining to the business. It involves the preparation of financial statements
such as the balance sheet, income statement, and cash flow statement, which
provide a clear picture of the company's financial performance and position.
Accounting ensures that financial records are accurate, up-to-date, and in
compliance with relevant laws and regulations. Moreover, it facilitates decision-
making by providing stakeholders, including management, investors, creditors,
and regulators, with reliable financial information about the company's
operations and financial health.

Delve into a more detailed explanation of accounting in a company:

1- Recording Transactions: Accounting begins with the recording of financial

transactions. These transactions include sales, purchases, payments, receipts,
investments, loans, and any other economic activities that involve the
exchange of money or goods. Every transaction is documented with supporting
evidence such as invoices, receipts, contracts, etc.

2- Classification and Organization: Once transactions are recorded, they are

classified into various categories based on their nature (e.g., revenue,
expense, asset, liability, equity). This process is crucial as it ensures that
similar transactions are grouped together for proper analysis and reporting.

3- Summarization: Periodically, typically at the end of a financial period (e.g.,

monthly, quarterly, annually), accountants summarize the classified
transactions into financial statements. The primary financial statements
prepared are:

4- Balance Sheet: Shows the company's assets, liabilities, and equity at a

specific point in time, providing a snapshot of its financial position.

5- Income Statement: Summarizes revenues and expenses over a period,

resulting in the net income or loss for that period.

6- Cash Flow Statement: Tracks the flow of cash into and out of the
company during a specific period, categorizing cash activities into operating,
investing, and financing activities.

7- Analysis and Interpretation: After preparing financial statements,

accountants analyse the information to assess the company's financial
performance and health. They look for trends, ratios, and other indicators that
help stakeholders understand how well the company is performing financially.
8- Reporting: Based on their analysis, accountants prepare financial reports
and statements that are distributed to various stakeholders, such as
management, investors, creditors, regulatory authorities, and tax authorities.
These reports provide transparency and accountability regarding the company's
financial activities.

9- Compliance and Regulation: Accounting practices must comply with

generally accepted accounting principles (GAAP) or international
financial reporting standards (IFRS), depending on the jurisdiction and
industry.
Compliance ensures consistency, comparability, and reliability of financial
information across companies.

10- Decision Making: Accurate and timely financial information generated

through accounting plays a critical role in decision-making processes within the
company. Management uses financial reports to make strategic decisions,
allocate resources, assess performance, and plan for the future.

11- Auditing and Assurance: External auditors may be engaged to review the
company's financial statements and ensure they accurately represent the
company's financial position and performance. This provides assurance to
stakeholders that the financial information presented is reliable and trustworthy.

(i)-Importance of Accounting

1- Financial Information: It provides accurate and reliable financial

information about the performance and financial position of a business.
This information is essential for stakeholders such as investors, creditors,
management, and government agencies to make informed decisions.

2- Decision Making: Accounting information helps management in making

strategic decisions regarding investments, operations, expansion, pricing, and
cost control. It provides insights into profitability, liquidity, and financial health,
enabling managers to allocate resources effectively.

3- Compliance and Accountability: Proper accounting ensures compliance

with legal and regulatory requirements. It helps businesses prepare financial
statements that adhere to accounting standards (such as GAAP or IFRS),
providing transparency and accountability to shareholders, regulators, and other
stakeholders.
4- Facilitates Planning and Budgeting: Accounting information forms the
basis for financial planning, budgeting, and forecasting. It helps businesses
set realistic financial goals, monitor performance against targets, and adjust
strategies as needed.

5- Investor Relations: Investors rely on financial statements and reports

prepared through accounting to evaluate the financial health and growth
potential of a company. Accurate accounting enhances investor confidence
and attracts investment capital.

6- Credibility and Trust: Well-maintained accounting records build credibility

and trust with stakeholders. Reliable financial information strengthens
relationships with creditors, suppliers, customers, and employees, fostering
long-term business relationships.

7- Performance Evaluation: Accounting measures and reports financial

performance over time, allowing businesses to assess profitability, efficiency,
and operational effectiveness. It helps identify strengths and weaknesses,
enabling management to implement corrective actions.

8- Taxation and Legal Requirements: Proper accounting ensures businesses

meet tax obligations accurately and on time. It also provides documentation for
audits and legal disputes, helping to resolve issues efficiently.

9- Strategic Planning: Accounting information supports long-term strategic

planning by providing insights into financial trends, market conditions, and
competitive positioning. It helps businesses adapt to changes in the
economic environment and capitalize on growth opportunities.

(ii)-Nature of Accounting

1- Systematic Recording: Accounting involves the systematic and orderly

recording of financial transactions. This process ensures that all economic
activities of the business are captured accurately and comprehensively.

2- Quantitative Expression: Accounting primarily deals with financial data

that can be quantified in monetary terms. It measures and records financial
transactions, assets, liabilities, revenues, expenses, and equity using a
standardized currency unit (e.g., dollars, euros).
3- Financial Reporting: One of the core aspects of accounting is the
preparation of financial statements. These statements—such as the balance
sheet, income statement, and cash flow statement—summarize and
communicate the financial performance and position of the business to
stakeholders.

4- Historical Recording: Accounting focuses on recording transactions that

have occurred in the past. It relies on historical data to provide a basis for
evaluating current performance and making future projections.

5- Objectivity and Reliability: Accounting information should be objective,

verifiable, and reliable. This requires adherence to accounting principles and
standards (e.g., GAAP or IFRS) that ensure consistency and comparability of
financial reports.

6- Decision-Making Tool: Accounting information serves as a vital tool for

decision-making within the organization. Managers use financial reports to
analyse performance, allocate resources, assess profitability, and formulate
business strategies.

7- Legal and Regulatory Compliance: Accounting practices must comply with

legal requirements and regulatory frameworks applicable to financial reporting.
This ensures transparency, accountability, and integrity in financial disclosures.

8- Interdisciplinary Nature: Accounting intersects with various

disciplines such as economics, finance, law, and management. It provides
essential information for these disciplines to analyse and understand the
financial implications of business operations.

9- Continuous Process: Accounting is a continuous process that involves

recording, summarizing, analysing, and interpreting financial data. It supports
ongoing monitoring of financial performance and facilitates adjustments in
response to changing business conditions.

10- Ethical Standards: Ethical considerations are integral to accounting

practices. Accountants are expected to uphold ethical standards and
principles, such as integrity, objectivity, confidentiality, and professional
behaviour, in their work.

(iii)-Scope of Accounting
1- Financial Reporting and Analysis: One of the primary scopes of accounting
is the preparation and analysis of financial statements. This includes the balance
sheet, income statement, cash flow statement, and statement of changes in
equity. These reports provide stakeholders with a comprehensive view of the
financial performance and position of the organization.

2- Management Accounting: Management accounting focuses on providing

internal stakeholders (such as management and decision-makers) with financial
information and analysis to support strategic decision-making, planning,
budgeting, and performance evaluation.

3- Cost Accounting: Cost accounting involves tracking, analysing, and

controlling costs within an organization. It helps businesses determine the
cost of products or services, optimize cost structures, and make informed
pricing decisions.

4- Auditing and Assurance: Auditing is a critical aspect of accounting that

involves examining and evaluating financial statements to ensure accuracy,
completeness, and compliance with accounting standards and regulations.
Auditors provide independent assurance on the reliability of financial
information.

5- Tax Accounting: Tax accounting focuses on compliance with tax laws

and regulations. It involves calculating taxes owed, preparing tax returns, and
advising on tax planning strategies to minimize tax liabilities while ensuring
compliance with tax laws.

6- Forensic Accounting: Forensic accounting applies accounting principles and

techniques to investigate financial fraud, disputes, or legal matters. It involves
analysing financial records, identifying irregularities, and providing expert
testimony in legal proceedings.

7- Financial Management and Planning: Accounting plays a crucial role in

financial management by providing insights into liquidity, profitability, and
financial health. It helps businesses develop financial strategies, manage
cash flows, and allocate resources effectively.

8- International Accounting Standards: With globalization, accounting also

encompasses adherence to international accounting standards (such as IFRS -
International Financial Reporting Standards), ensuring consistency and
comparability of financial reporting across borders.
9- Ethical Standards and Professionalism: Accounting professionals are
expected to adhere to ethical standards and codes of conduct, maintaining
integrity, objectivity, and confidentiality in their work. Ethical
considerations are integral to maintaining trust and credibility in financial
reporting.

10- Technological Integration: The scope of accounting is evolving with

advancements in technology. This includes the use of accounting software,
automation of routine tasks, data analytics, and cybersecurity measures to
enhance efficiency, accuracy, and data security.

11- Legal and Regulatory Compliance: Accounting practices must comply

with legal requirements and regulatory frameworks applicable to financial
reporting. This ensures transparency, accountability, and integrity in
financial disclosures.
 .

. 3.
Company
Profile

MITER AND MITER ENGINEERS PVT. LTD.

Plot No.04, Sector No.11 IIE SIDCUL PANTNAGAR

 UTTARAKHAND- 263153

Miter And Miter Engineers Pvt. Ltd. operates in Automobile industry sector.
During the internship period from 01/07/2024to 31/07/2023, the role primarily
involved assisting the finance department in various accounting tasks.

Miter And Miter Engineers Pvt. Ltd. founder Managing Director Late Mr. Dev
Mitter (Automobile Engineer from UK), started manufacturing steering wheels
in hard rubber in 1960 indigenously and started supplying them to TELCO -
Daimler Benz - Jamshedpur. He started Emdet Engineers as a sole
proprietorship firm and incorporated it into ‘Private Limited’ in 1970. Being the
pioneer in the manufacture of steering wheel in the country, he achieved a
100% market share in a short span of time. In recognition of his forward
looking approach, contribution and commitment to the industry and national
cause, Mr. Dev Mitter was awarded ‘Parman Patra’ by the State Government in
1973.
He was also awarded ‘Udyog Patra’ by the acting President of India on the
occasion of the Second Economic Development Conference in 1977 for being a
‘Self-made Industrialist” In 1986 - Mr. Navneet Mitter who had studied mold
design and die-making in USA, took over as the Managing Director of the
company, after the demise of his father Late Mr. Dev Mitter.
In 1988 - we undertook expansion and started manufacturing Steering Wheels
in plastics at our newly established plant in Pune and have graduated into other
automobile parts such as Engine Fans, Bumper Corners, Covers, Horn Covers,
Wheel Rim Covers, Engine Cowl, Fan Shroud, Poly-urethane Steering Wheels,
Poly-urethane Handles / Rests etc, Advance Warning Triangles, Nylon Radiator
Tanks etc etc.
The company is guided by Mr. R. S. Parmar [B.Sc. (Chemical) Dipl-SKZ-
Germany], who has vast experience of 25 years in polymer processing. He has
been associated with Shriram Group of Companies heading their Polymer
Division.

Factsheet
Basic Information
Nature of Business Manufacturer

Company CEO Manager

Year of Establishment 1960

Legal Status of Firm Limited Company (Ltd./Pvt.Ltd.)

Statutory Profile
GST No. 05AAECM8439N1ZY

CIN No. U33122PB1985PTC006496

Quality Policy / Processes

To achieve the above goal we have implemented Quality Management System
as per requirements of ISO/TS 16949, for which we have been awarded a
Certificate of Quality Management System by TUV NORD, GERMANY, and
ISO 9001-2000 by American Quality Assessors, USA

Director’s detail

Appointment Date Designation DIN Name

16-10-1985 Wholetime 01610047
Director RADHIKA
NAVNEET
MITTER

10-12-2005 Managing Director 00041543

NISHCHAY
MITERR

1-8-2017 Director 07967519

RAJIVE
MEDIRATTA
4. Work:

During this week as an intern, I have had the opportunity to actively engage
with various tasks and projects assigned to me. This report outlines the
contributions and learning experiences gained throughout the week, reflecting
my dedication to learning and growing within the organization.

WEEK WISE
DEľAILS:

1st Week GST(GSTR1 AND GST3B),E-INVOICE

2nd Week SALE,PURCHASE,BANK STATEMENT

REPORT

3rd Week Financial Transactions, Tax Compliance, and

Accounts Management

4th Week PROJECT REPORT

(WEEK 1)
(1) =Goods and Services Tax (GST)

GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the
supply of goods and services across India. It is a destination-based consumption
tax, meaning it is applied at the point of consumption rather than at the point of
origin (production). GST has replaced various indirect taxes that were
previously levied by the central and state governments, such as excise duty,
service tax, VAT.

Let's delve deeper into the concept of Goods and Services Tax (GST) with more
detail:

1.Concept and Structure:

GST is an indirect tax levied on the supply of goods and services at each stage
of production or distribution, right from the manufacturer to the consumer. It is
a destination-based tax, meaning it is levied at the point of consumption rather
than at the point of origin (production).

2.Objective:

The primary objectives of GST implementation include:

  Simplification: Streamlining the complex tax structure by subsuming
multiple indirect taxes under one unified tax system.
 Uniformity: Creating a common market across India by removing
economic barriers between states and fostering economic integration.
 Reducing Cascading Effect: Eliminating the cascading effect of taxes (tax
on tax) by allowing input tax credit (ITC), which ensures that tax is levied
only on the value addition at each stage of the supply chain.
 Boosting Compliance: Bringing more entities into the formal economy
by simplifying tax compliance procedures.

3.Dual Structure:

GST in India follows a dual structure, wherein both the central government and
state governments have the authority to levy and collect the tax concurrently.
The two components of GST are:

 Central Goods and Services Tax (CGST): Collected by the Central

Government on intra-state supplies of goods and services.
 State Goods and Services Tax (SGST): Collected by the State
Government on intra-state supplies of goods and services.

4.Types of GST:

There are different types of GST applicable depending on the nature of the
transaction:

 CGST: Levied by the Central Government on intra-state supplies of goods

and services.
 SGST: Levied by the State Government on intra-state supplies of goods
and services.
 Integrated Goods and Services Tax (IGST): Levied by the Central
Government on inter-state supplies of goods and services. IGST is
collected by the Centre and then distributed among the states.

5.Taxable Events:

GST is applicable on the "supply" of goods or services, which includes all

forms of supply such as sale, transfer, barter, exchange, license, rental, lease, or
disposal made or agreed to be made for a consideration by a person in the
course of business.
6.GST Rates:

Goods and services are categorized under different tax slabs for GST:

 The GST rates for goods typically range from 0% (exempted) to 5%, 12%,
18%, and 28%.
 Services are generally taxed at 18%, with certain services attracting
lower rates (5%) or higher rates (28%).

7.Input Tax Credit (ITC):

One of the significant features of GST is the mechanism of Input Tax Credit,
where businesses can claim credit for the GST paid on inputs used in the supply
of goods or services. This ensures that tax is paid only on the value addition at
each stage of the supply chain, thereby reducing the overall tax burden.

8.Registration and Compliance:

Businesses exceeding a certain turnover threshold are required to register under

GST. They need to file regular GST returns detailing their sales, purchases, and
tax paid or collected. Non-compliance with GST regulations can attract
penalties.

9.Benefits of GST:

 Simplified Tax Structure: Reduces the multiplicity of taxes and

complexities in compliance.
 Boost to Economic Growth: Promotes ease of doing business and
enhances competitiveness.
 Uniform Market: Creates a seamless national market with reduced
barriers to trade.
 Transparency: Enhances transparency in tax administration and reduces
tax evasion.

10. Challenges and Criticisms:

 Initial Implementation Challenges: Initial transition issues, technological

glitches in the GST Network (GSTN), and compliance complexities.
 Impact on Small Businesses: Compliance burden and initial adjustment
costs may disproportionately affect small businesses.
  Tax Slab Rationalization: Calls for simplification and rationalization of
tax rates to reduce classification disputes and compliance costs.

(i)-GSTR1
GSTR-1 is a specific return that businesses registered under GST (Goods and
Services Tax) in India are required to file. It is a monthly or quarterly return
that contains details of outward supplies of goods or services. Here’s a
detailed overview of GSTR-1:
Purpose of GSTR-1:
GSTR-1 serves the following purposes:

1. Declaration of Outward Supplies: It provides details of sales made by a

registered taxpayer to other businesses (B2B) and consumers (B2C).
2. Input Tax Credit (ITC) Reconciliation: Helps recipients of supplies to
claim Input Tax Credit (ITC) based on the information furnished by
suppliers in their GSTR-1.

Who Needs to File GSTR-1:

All regular taxpayers registered under GST must file GSTR-1. However, small
taxpayers under the composition scheme and Input Service Distributors (ISDs)
have different provisions for filing returns.

Frequency of Filing:

 Monthly: Taxpayers with aggregate turnover exceeding Rs. 1.5 crore in

the preceding financial year or the current financial year are required
to file GSTR-1 monthly.
 Quarterly: Taxpayers with aggregate turnover up to Rs. 1.5 crore in the
preceding financial year or the current financial year can opt to file
GSTR-1 quarterly.

Components of GSTR-1:
GSTR-1 consists of various sections where taxpayers need to provide specific
details about their outward supplies. The key components include:

1. GSTIN: Goods and Services Tax Identification Number of the taxpayer.

 2. Name of the Taxpayer: Legal name of the registered taxpayer.
3. Period of Return: Reporting period (monthly or quarterly).
4. Details of Outward Supplies:
 Invoice-wise details of B2B supplies (inter-state and intra-state).
 Consolidated details of B2C supplies (inter-state and intra-state).
 Debit notes and credit notes issued during the period.
 Amendments to invoices or other details of outward supplies for
previous periods.

Filing Process:
Taxpayers need to log in to the GST Portal (https://www.gst.gov.in/) to file
GSTR-1 electronically. The return can be prepared online or offline using
compatible GST software. Once prepared, it is uploaded to the GST Portal for
submission.

Due Dates:

 Monthly GSTR-1: 11th of the following month.

 Quarterly GSTR-1: 31st of the month following the end of the quarter.

Penalties for Non-compliance:

Failure to file GSTR-1 within the due date can attract penalties and interest. It
can also lead to difficulties in claiming Input Tax Credit (ITC) for recipients of
supplies.

Importance:

GSTR-1 is crucial for:

 Maintaining compliance with GST laws.

 Facilitating ITC claims for recipients.
 Providing transparency in tax reporting and administration.

In summary, GSTR-1 is an essential component of GST compliance for

businesses in India, ensuring accurate reporting of outward supplies and
facilitating seamless input tax credit for eligible recipients.

(ii)-GST3B
GSTR-3B is another important return under the Goods and Services Tax (GST)
system in India. Unlike GSTR-1, which focuses on outward supplies, GSTR-3B is
a summarized self-declaration return that needs to be filed monthly by all
registered taxpayers, irrespective of their turnover. Here’s a detailed
explanation of GSTR-3B:
Purpose of GSTR-3B:

GSTR-3B serves several purposes:

1. Summary of Outward and Inward Supplies: It provides a summary of

both outward supplies (sales) and inward supplies (purchases) of
goods and services.
2. Tax Liability Calculation: Taxpayers compute their tax liability for
the month and report details of tax paid.
3. Input Tax Credit (ITC) Utilization: Allows taxpayers to claim Input Tax
Credit (ITC) on purchases and adjust it against their tax liability.
4. Filing Requirement: Provides a simple and provisional mechanism for
taxpayers to comply with GST regulations until the detailed returns
(like GSTR-1, GSTR-2A, etc.) are reconciled and filed.

Who Needs to File GSTR- 3B:

All regular taxpayers registered under GST, including those under the
composition scheme, are required to file GSTR-3B. This return must be filed
even if there are no transactions during the reporting period.

Frequency of Filing:

GSTR-3B is filed on a monthly basis. The due date for filing GSTR-3B is
typically the 20th of the following month.

GSTR-3B (Monthly):

Due on the 20th of the following month. For example, GSTR-3B for the month
of June is due on July 20th.

Components of GSTR-3B:

The key components of GSTR-3B include:

1. GSTIN: Goods and Services Tax Identification Number of the taxpayer.

2. Name of the Taxpayer: Legal name of the registered taxpayer.
 3. Period of Return: Reporting period (monthly).
4. Summary of Outward Supplies:
 Details of outward supplies and their tax liability (inter-state and
intra-state).
 Exempted, nil-rated, and non-GST supplies, if any.
5. Summary of Inward Supplies:
 Details of eligible Input Tax Credit (ITC) claimed on purchases
(inter-state and intra-state).
6. Tax Calculation:
 Calculation of GST liability after adjusting ITC.
 Details of tax paid through cash or utilization of ITC.
7. Late Fee and Interest: If applicable, details of late fees and
interest payable for delayed filing.
8. Verification and Certification: Declaration by the taxpayer or authorized
signatory.

Filing Process:

Taxpayers can file GSTR-3B online through the GST Portal

(https://www.gst.gov.in/). The return can be prepared online or offline using
compatible GST software and then uploaded for submission.

Importance:

GSTR-3B is crucial for:

 Tax Compliance: Ensuring timely payment and reporting of GST

liabilities.
 Input Tax Credit: Facilitating the proper utilization of ITC against GST
liabilities.
 Interim Reporting: Providing a provisional mechanism until detailed
returns like GSTR-1 and GSTR-2A are reconciled and filed.

Penalties for Non-compliance:

Failure to file GSTR-3B within the due date can lead to penalties and interest
charges. It may also affect the recipient's ability to claim Input Tax Credit (ITC)
on eligible supplies.

In summary, GSTR-3B is a simplified monthly return that helps taxpayers in

India to fulfil their GST compliance obligations by summarizing their sales,
purchases, and tax payments in a concise format.
(2) =E-invoice

E-invoicing refers to the electronic generation, transmission, and receipt of

invoices between trading partners using structured data formats. It eliminates
the need for paper invoices and instead uses electronic formats that can be
exchanged directly between computer systems. E-invoicing can be implemented
through various technological standards and platforms, ensuring compatibility
and interoperability between different parties.

How E-Invoicing Works:

1. Generation:

 E-invoices are generated electronically by the seller's accounting

or enterprise resource planning (ERP) system. They include all
necessary details such as invoice number, date, seller and buyer
information, item details (description, quantity, price), taxes, and
payment terms.

2. Transmission:
 Once generated, e-invoices are transmitted electronically to the
buyer's system. This transmission can occur via different methods,
including email with an attached electronic document (PDF or
structured data format), direct system-to-system integration using
Electronic Data Interchange (EDI) protocols, or through specialized
e-invoicing networks/platforms.
3. Receipt and Processing:
 Upon receiving an e-invoice, the buyer's system processes it
automatically. This may involve validation against purchase orders
(if applicable), checking for accuracy and compliance with tax
regulations, and recording the invoice in the buyer's accounting
system.
4. Payment and Integration:
 After processing, the invoice moves through the payment cycle. E-
invoices can be integrated directly into the buyer's payment
processing system, facilitating faster and more accurate payment.
Integration with accounting and ERP systems ensures seamless
financial reconciliation and reporting.

Benefits of E-Invoicing:

 Cost Savings: Reduced paper, printing, and postage costs.

 Efficiency: Faster invoice processing times, leading to quicker payments.
 Accuracy: Fewer errors compared to manual data entry.
 Compliance: Improved adherence to tax and regulatory requirements.
 Visibility and Transparency: Better tracking and visibility into invoice
status and payment cycles.

Implementation and Adoption:

 Standards: Various e-invoicing standards exist globally, such as XML,

UBL, and others, ensuring uniformity and compatibility across
different systems.
 Regulatory Requirements: Some countries or industries mandate e-
invoicing to streamline tax compliance and reduce fraud.
 Technological Platforms: E-invoicing solutions range from basic email
attachments to advanced cloud-based platforms that offer features like
automated validation, integration with accounting systems, and
analytics.
Challenges:

 Integration Complexity: Ensuring compatibility and seamless

integration with existing systems.
 Security: Protecting sensitive financial data during transmission and
storage.
 Adoption Hurdles: Resistance to change from traditional paper-based
processes.

Image of Bill
 (WEEK 2)

In my role as an intern at Miter And Miter Engineers Pvt. Ltd., I am responsible

for managing and reporting daily financial transactions, which include sales,
purchases, and bank activities. This report provides a comprehensive overview
of the processes involved, the structure of the reports generated, and their
significance in the company's operational and financial management.

1. Sales Reporting:
Purpose and Scope: The sales report is a critical document that summarizes the
revenue generated from sales activities on a daily basis. Its primary purpose is
to provide an accurate and detailed account of all transactions involving the
sale of goods or services by the company.
Components of the Sales Report:

Date of Transaction: The specific date when the sale occurred.

Customer Information: Details of the customer, including name and contact

information (if applicable).

Invoice Numbers: Unique identifiers for each sales transaction.

Product Details: Description, quantity, and unit price of each item sold.

Total Sales Amount: The sum of all sales transactions for the day.

Process: Generating the sales report involves:

Collecting sale bills or invoices from the sales team or directly from the point of
sale systems.

 Verifying the accuracy and completeness of each transaction record.

 Inputting the data into the accounting or financial management software.
 Compiling the information into a structured report format.

Importance:
Decision-making: Provides insights into daily revenue trends and performance
metrics.

Financial Planning: Helps forecast future sales and adjust inventory levels
accordingly.

Compliance: Ensures accurate recording of revenue for financial reporting and

tax purposes.

Performance Evaluation: Enables comparison with budgeted sales targets and

identifies areas for improvement.

2. Purchase Reporting:
Purpose and Scope: The purchase report details all expenditures made by the
company for goods or services purchased from suppliers or vendors. It ensures
transparency and accountability in procurement processes.
Components of the Purchase Report:

Date of Purchase: The date when the purchase transaction occurred.

Supplier Details: Information about the supplier, including name, address, and
contact information.

Invoice Numbers: Unique identifiers for each purchase transaction.

Item Details: Description, quantity, unit price, and total cost of each item
purchased.

Total Purchase Amount: The sum of all purchases for the day.

Process:

 Gathering purchase orders, invoices, and receipts from the procurement

department or suppliers.
 Verifying the accuracy of each purchase transaction against
purchase orders and agreements.
 Recording the data into the accounting system or financial software.
 Compiling the information into a comprehensive report format.

Importance:
Cost Management: Tracks expenses and ensures expenditures align with
budgetary constraints.

Inventory Control: Monitors stock levels and identifies purchasing patterns.

Audit Trail: Provides documentation for auditing and compliance purposes.

Supplier Relationships: Facilitates evaluation of supplier performance and

negotiation of terms.

3. Bank Transaction Reporting:

Purpose and Scope: The bank transaction report documents all inflows and
outflows of cash in the company's bank accounts. It ensures accuracy in
recording financial transactions and reconciliation with bank statements.

Components of the Bank Transaction Report:

Date of Transaction: The date when the bank transaction occurred.

Transaction Type: Specifies whether it's a deposit (income) or withdrawal

(expense).

Amount: The monetary value of the transaction.

Purpose or Reference: Description or reference number associated with the

transaction.

Process:

 Obtaining bank statements and transaction records from the finance

or accounting department.
 Matching each transaction with corresponding entries in the accounting
system.
 Reconciling discrepancies and ensuring all transactions are accurately
recorded.
 Summarizing the data into a concise report format.

Importance:
Cash Flow Management: Provides visibility into cash inflows and outflows for
effective liquidity management.

Financial Control: Detects errors, discrepancies, or unauthorized transactions

promptly.

Compliance and Auditing: Ensures financial records are accurate and

compliant with regulatory requirements.

Decision Support: Supports financial decision-making based on current cash

position and trends.

In conclusion, the daily preparation of sales, purchase, and bank transaction

reports is integral to maintaining transparent and efficient financial operations at
Miter And Miter Engineers Pvt. Ltd. These reports not only facilitate day-to-day
financial management but also provide valuable insights for strategic decision-
making and compliance purposes. As an intern, this experience has enhanced
my understanding of financial reporting practices and their critical role in
supporting organizational goals. Moving forward, I am committed to upholding
accuracy, diligence, and timeliness in financial reporting to contribute
effectively to the company's success. S

(WEEK 3)
 Debit Note and Credit Note
Posting (Financial Transactions)
 TDS and TCS (Tax Compliance)
 Debtor and Creditor Management
(Accounts Management)

(i) = Debit Note and Credit Note Posting

Debit Note Posting:

Definition: A debit note is issued by a buyer to a seller, notifying them of an
increase in the amount payable due to various reasons such as damaged goods
received, an increase in quantity ordered, price adjustments, etc.

Purpose: The issuance of a debit note serves to inform the seller about
additional liability owed by the buyer.

Accounting Treatment:

1. Accounting Entry for Buyer (Purchaser):

 Debit: The respective expense or asset account affected by the
transaction (e.g., Purchases, Inventory, etc.)
 Credit: Accounts Payable (to decrease the liability to the seller)
2. Accounting Entry for Seller (Vendor):
 Debit: Accounts Receivable (to increase the amount owed by
the buyer)
 Credit: The respective income or asset account impacted by the
transaction (e.g., Sales, Inventory, etc.)
Credit Note Posting:
Definition: A credit note is issued by a seller to a buyer, indicating a reduction
in the amount payable due to reasons such as returned goods, overcharged
amounts, discounts, etc.

Purpose: The issuance of a credit note informs the buyer about a decrease in
the amount owed to the seller.

Accounting Treatment:

1. Accounting Entry for Buyer (Purchaser):

 Debit: Accounts Payable (to decrease the liability to the seller)
 Credit: The respective expense or asset account affected by the
transaction (e.g., Purchases, Inventory, etc.)
2. Accounting Entry for Seller (Vendor):
 Debit: The respective income or asset account impacted by the
transaction (e.g., Sales, Inventory, etc.)
 Credit: Accounts Receivable (to decrease the amount owed by
the buyer)

Example Scenario:
Debit Note Example:
  If a buyer receives damaged goods worth $500 from a seller, they
would issue a debit note to notify the seller of the additional liability.
 Accounting Entry for Buyer: Debit Purchases (or Inventory) $500, Credit
Accounts Payable $500.
 Accounting Entry for Seller: Debit Accounts Receivable $500, Credit
Sales (or Inventory) $500.

Credit Note Example:

 If a seller overcharges a buyer by $200, they would issue a credit note

to adjust the amount owed.
 Accounting Entry for Buyer: Debit Accounts Payable $200, Credit
Purchases (or Inventory) $200.
 Accounting Entry for Seller: Debit Sales (or Inventory) $200, Credit
Accounts Receivable $200.

Importance of Proper Posting:

 Accuracy: Ensures that financial records accurately reflect transactions
and liabilities.
 Transparency: Provides clarity to both parties regarding adjustments
made to accounts.
 Compliance: Helps in adhering to accounting standards and regulatory
requirements.
(ii) =: TDS and TCS

(A) =TDS (Tax Deducted at Source):

 Definition: TDS refers to the tax deducted by a person or entity while making
specified payments such as salary, commission, rent, professional
fees, interest, etc. The deducted amount is remitted to the government
on behalf of the recipient of the payment.
 Purpose: The primary purpose of TDS is to collect tax at the source from
where an individual's income is generated, ensuring a steady revenue
stream for the government throughout the financial year.

 Applicability:

 TDS is applicable when certain payments are made by a business to

residents, such as salaries, interest, rent, commission, professional fees,
etc.
 It ensures that tax is deducted at the time of payment itself, thus ensuring
a steady source of revenue for the government and reducing the burden of
tax payment on the recipient.

 Responsibility:

 The responsibility of deducting TDS lies with the person making the
payment (payer). This could be a business paying salary to employees,
interest to lenders, rent to landlords, etc.

 Rates and Thresholds:

 Different rates and thresholds apply depending on the nature of payment

and the status of the recipient (individual, company, etc.).
 Failure to deduct TDS or delay in remitting it can attract penalties
and interest under the Income Tax Act.

TDS (Tax Deducted at Source):

 Section 192: TDS on Salary - This section deals with the deduction of tax
at source from salaries paid to employees.
  Section 194A: TDS on Interest other than Interest on Securities -
Applicable when interest is paid by a business or individual,
excluding interest on securities.
 Section 194C: TDS on Payment to Contractors/Sub-contractors - Applies
when payments are made to contractors or sub-contractors for carrying
out any work, including supply of labor for carrying out any work.
 Section 194H: TDS on Commission or Brokerage - Applicable to
payments made in the form of commission or brokerage.
 Section 194I: TDS on Rent - Applicable when rent is paid exceeding a
specified threshold.
 Section 195: TDS on Payment to Non-residents - Applicable to payments
made to non-residents, including interest, royalty, fees for technical
services, etc.

 According to section 206C(1H), Seller whose turnover exceeds Rs. 10

crores in that preceding financial year will have to collect and deposit the
TCS at the rate of 0.1% on receipt of sale consideration from buyer
exceeding Rs. 50 lakhs.

(B) =TCS (Tax Collected at Source):

 Definition: TCS is the tax collected by the seller from the buyer at the
time of sale of specified goods (like alcohol, tendu leaves, scrap, etc.) or
services (like payments to overseas tour operators, sale of motor vehicles,
etc.).
 Purpose: Similar to TDS, TCS ensures that tax is collected at the source
of income. It is applicable in scenarios where the government wants to
ensure tax compliance from transactions involving specified goods or
services.

 Applicability:

 TCS is applicable when a seller collects tax from the buyer at the time of
sale of specified goods or services, typically at a higher rate from
consumers who are not liable to deduct TDS.
 This applies to goods like minerals, tendu leaves, scrap, etc., and services
like sale of motor vehicles, overseas tour packages, etc.

 Responsibility:

 The responsibility of collecting TCS lies with the seller or person

receiving the consideration for the sale of goods or services.
  The collected TCS amount must be deposited with the government and
reported in the seller’s TCS return.

 Rates and Compliance:

 Rates for TCS vary depending on the nature of goods or services. It’s
crucial for sellers to correctly determine applicability and collect TCS
as required.
 Non-compliance with TCS provisions can lead to penalties and interest
under the Income Tax Act.

TCS (Tax Collected at Source):

 Section 206C(1): TCS on Sale of Goods - Applicable when a seller

receives consideration for the sale of goods exceeding specified
thresholds.
 Section 206C(1G): TCS on Sale of Motor Vehicles - Specifically
applicable to the sale of motor vehicles exceeding specified
thresholds.
 Section 206C(1F): TCS on Sale of Overseas Tour Packages - Applicable
to the sale of overseas tour packages.
 According to section 206C(1H), Seller whose turnover exceeds Rs. 10
crores in that preceding financial year will have to collect and deposit the
TCS at the rate of 0.1% on receipt of sale consideration from buyer
exceeding Rs. 50 lakhs.

(iii) = Debtor and Creditor Management

1. Tracking Accounts Receivable (Debtor Accounts):

 Monitoring and recording invoices issued to customers for goods

or services rendered on credit.
 Updating the accounts receivable ledger to reflect payments
received and outstanding balances.
 Sending timely reminders and statements to customers regarding
overdue payments.
 Following up on overdue accounts through emails, calls, or
formal letters to ensure timely collection.

2. Managing Accounts Payable (Creditor Accounts):

 Recording invoices received from suppliers for goods or

services purchased on credit.
  Verifying the accuracy of invoices and ensuring they match
purchase orders and delivery receipts.
 Maintaining an accounts payable ledger to track amounts owed
and payment due dates.
 Communicating with suppliers regarding any discrepancies,
payment terms, or issues with invoices.

Processes:

1. Invoicing and Documentation:

 Generating and issuing invoices accurately and promptly.

 Ensuring all necessary documentation, such as purchase orders
and delivery notes, are attached to invoices for verification.
 Recording invoice details in the accounting system to maintain
a clear audit trail.

2. Payment Processing:

 Reconciling payments received against invoices to update

debtor accounts.
 Processing payments to creditors within agreed terms to avoid
late fees or disruptions in supply.
 Seeking approval for payment of invoices and ensuring
compliance with internal controls and procedures.

3. Communication and Relationship Management:

 Communicating effectively with both debtors and creditors

to maintain positive relationships.
 Resolving queries or disputes related to invoices or payments
promptly and professionally.
 Providing assistance and support to internal stakeholders, such
as sales and procurement teams, regarding debtor and creditor
information.

Observations:

1. Challenges Faced:

 Managing overdue accounts and ensuring prompt payment can

be challenging, requiring persistence and diplomacy.
  Resolving discrepancies in invoices or payments often requires
attention to detail and effective communication skills.
 Balancing the needs of debtors and creditors to maintain
positive relationships while safeguarding the organization's
financial interests.

2. Skills Developed:

 Improved proficiency in using accounting software to manage

debtor and creditor accounts.
 Enhanced communication skills through interactions with
internal teams, customers, and suppliers.
 Strengthened organizational skills in prioritizing tasks and
meeting deadlines in a fast-paced environment.

5. Learning Objectives
The primary objectives of my internship were multifaceted:

 Hands-on Experience: To apply theoretical concepts learned in class to

real-world accounting scenarios.
 Decision-Making Insight: To understand how financial accounting
information influences strategic decision-making within the company.
 Skill Development: To enhance my skills in financial analysis, reporting,
and compliance with accounting standards.
 Regulatory Understanding: To learn about and adhere to regulatory
frameworks governing financial reporting and taxation.

"The internship aimed to achieve the following learning objectives:

 Gain practical experience in basic accounting functions.

 Apply theoretical knowledge of financial management in a real-world
context.
 Understand the role of accounting in decision-making processes within a
business."
6. Role and Responsibilities
Throughout the internship, my responsibilities encompassed a variety of critical
tasks:

Financial Reporting:

I assisted in the preparation of financial statements such as income statements,

balance sheets, and cash flow statements. This involved gaining an
understanding of the company's accounting policies and procedures, ensuring
accuracy and compliance with regulatory requirements.

Internal Controls:

Participation in internal audit processes allowed me to assess the effectiveness

of internal controls. I reviewed procedures to ensure they aligned with industry
standards and regulatory expectations, contributing to the company's overall
governance framework.

Budgeting and Forecasting:

Supporting the budgeting process involved compiling and analysing financial

data to assist in budget formulation. I also contributed to forecasting activities,
identifying variances between projected and actual financial outcomes to aid in
decision-making.

Taxation:

I gained practical experience in tax compliance by assisting in the preparation of

tax returns and understanding the implications of tax regulations on financial
reporting. This included staying updated on changes in tax laws that could
impact the company's financial strategies.

7. Projects:
Engaging in special accounting projects provided me with opportunities to
conduct research, analyse data, and present findings to senior management.
These projects challenged me to apply critical thinking and problem-solving
skills in addressing complex accounting issues.

"As an intern, the responsibilities included:

  Assisting in the preparation of financial statements (income statement,
balance sheet, cash flow statement).
 Recording financial transactions in the company's accounting software
(mention specific software used if applicable).
 Reconciling bank statements and accounts payable/receivable.
 Participating in budgeting and forecasting processes."

8. Learning outcomes
The internship yielded valuable insights and enhanced my professional
competencies:

 Practical Application: I applied theoretical knowledge to real-world

scenarios, gaining confidence in my ability to navigate complex financial
challenges.
 Analytical Skills: Through analysing financial data and identifying trends,
I honed my analytical abilities and learned to derive meaningful insights
to support decision-making.
 Communication: Regular interactions with colleagues and supervisors
improved my communication skills, enabling me to effectively convey
financial information and insights.
 Professional Growth: Immersion in a corporate environment cultivated
a professional demeanour, emphasizing the importance of accuracy,
attention to detail, and adherence to ethical standards in accounting
practices.
 Problem-Solving: Confronting challenges such as complex accounting
treatments and time management pressures allowed me to develop
innovative solutions and strategies.

9. Practical Application of Accounting Concepts

"During the internship, the following accounting concepts were practically
applied:

 Double-entry bookkeeping: Recording transactions in accordance with

the principles of debit and credit.
  Accrual Accounting: Recognizing revenues and expenses when they are
incurred, regardless of when cash transactions occur.
 Financial Statement Analysis: Understanding the components of
financial statements and their implications for decision-making.
 Internal Controls: Observing the implementation of controls to ensure
accuracy and reliability of financial reporting."

10. Challenges Faced

Navigating the internship presented several challenges:

 Complex Accounting Issues: Addressing intricate accounting treatments

required thorough research and consultation with mentors to ensure
accuracy.
 Time Management: Balancing internship responsibilities with academic
coursework demanded effective time management and prioritization
skills.
 Software Familiarization: Adapting to new accounting software
systems involved a learning curve, requiring diligence and
perseverance to become proficient.

"- Adjusting to the pace and demands of the corporate environment.

 Learning to use accounting software effectively.

 Understanding industry-specific accounting practices."

11. Achievements and Contributions

"Key achievements during the internship included:

 Successfully completing assigned tasks accurately and on time.

 Receiving positive feedback from supervisors regarding attention to detail
and willingness to learn.
 Contributing to the team effort in month-end and year-end closing
processes."
12. Conclusion
"The internship provided a comprehensive understanding of basic accounting
principles and their practical application in a business environment. It enhanced
skills in financial analysis, reporting, and compliance. This experience has been
invaluable in preparing for a career in financial management."

13. Recommendations
Based on my internship experience, I recommend:

 Enhanced Training Programs: Implementing more comprehensive

training initiatives to better prepare interns for practical accounting
tasks and challenges.
 Process Optimization: Streamlining accounting processes through
automation and integration of software systems to enhance efficiency and
accuracy.
 Continued Learning: Providing ongoing learning opportunities and
professional development resources to ensure interns remain abreast
of evolving accounting standards and regulatory changes.

"Based on the internship experience, the following recommendations are

suggested for future interns:

 Familiarize themselves with the company's accounting software before

starting the internship.
 Seek opportunities to actively participate in financial planning and
analysis tasks.
 Maintain regular communication with supervisors to receive feedback
and guidance."
 BIBLIOGRAP
HY
1=: Information is collected from at Miter And Miter Engineers Pvt. LTD.

2=: The information to be collected from Wikipedia

 https://www.investopedia.com

 https://online.hbs.edu

3=: Referred books such as :-

 Financial Accounting (Author: Walter B. Meigs, Robert F. Meigs,2011)

 Management Accounting(Author: John Burns, Martin Quinn,2012)

4=: ChatGPT ( https://chatgpt.com/ )