SVKM’S NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

NAVI MUMBAI

FINAL REPORT

ON

ACCOUNTS AND FINANCIAL ACTIVITIES OF KAKKU

ELECTRONIC & POWER CONTROL PVT LTD

BY

PRACHI KARAMBELKAR

ROLL NO: 017

SAP ID: 74012019029

FACULTY MENTOR: GAURAV MATHUR SIR

INDUSTRY MENTOR: ARUN TIWARI SIR

 A REPORT

ON

ACCOUNTS AND FINANCIAL ACTIVITIES OF KAKKU

ELECTRONIC & POWER CONTROL PVT LTD

By

PRACHI KARAMBELKAR

Roll Number: 017

SAP Number:74012019029

A REPORT SUBMITTED ON FULFILLMENT OF THE REQUIREMENTS

OF THREE YEARS BCOM (HONS) PROGRAM OF SCHOOL OF

COMMERCE

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES (NMIMS)

DEEMED TO BE UNIVERSITY, NAVI MUMBAI

ACKNOWLEDGEMENT
Firstly, I would like to extend my gratitude to the Director sir, the Associate
Dean sir and Placement coordinators for bringing up such a crucial internship
program in our curriculum which will help us in getting real corporate world
exposure and acquiring practical knowledge so that we can excel in our career
and other future endeavours.

I would like to thank the faculty mentor sir for regularly communicating and
updating the students and also for addressing our individual queries with
regards to the internship.

I would like to thank the SIP organization and its directors for allowing me to
do the internship in their company even in such tough pandemic times. The
company is truly a repertoire of knowledge and experiences whether be in the
form of its products to its finances.

I am also grateful to the accounts and finance department for teaching me

various concept and technicalities related to the work.

I would also like to thank my industry mentor and staff of the SIP organization
for delivering an insightful and amicable working experience and innumerable
support so that I can successfully complete the internship.
Table of Contents

Contents PAGE
NO
Abstraction 1

Introduction 2

Job responsibility 2

Duration of the SIP 3

Company profile 3-4

Objectives of study 4-5

Methodology 6-7

Details of Work Accomplished 7-9

Findings
9
Challenges (Predicament) 10

Recommendations for Future Efforts 10

Learnings 11

Conclusion 11

Appendices 12-18

Reference 19
ABSTRACTION

The aim of this project is

To understand how the accounts and other financial activities are dealt in the
organization “Kakku Electronic & Power control Pvt Ltd” and to practically
carry them out manually as well as with the aid of computer software.

To attain deeper understanding of accounting concepts and principles learnt in

school as well as college and to become proficient in identifying, categorising
and recording business transactions in a correct and systematic manner so as to
help company in achieving its financial goals.

To understand the newer indirect taxation i.e., the GST and how to use the GST
portal.

To get idea about the products offered by the company, their components and
estimating their costs.

Also, to hone my communication and interpersonal skills.

1
Introduction
Background.
As our educational system is predominantly text based, inclusion of practical
orientation program, as an academic component is critical. An internship
program is an excellent way to prepare students to deal with the things learnt in
a practical way. Various parties; educational institution and the organization
substantially benefit from such program.
As part of three years Bachelor’s Degree studies in Commerce at Narsee
Monjee Institute of Management Studies (NMIMS) (Deemed to be University)
it is crucial to embark an internship for minimum of two months to enable
students to obtain practical industrial experience in the field of study and also to
keep themselves abreast of the business environment. This also helps students to
train and prepare themselves for the job market.
As an intern I got the opportunity to work as an accountant in Kakku E&P
Control Pvt Ltd. The work given to me majorly comprised of recording of
transactions on tally software, uploading bill details on the GST portal and
estimating cost of product along with the preparation of cost sheet.

Job Responsibility

As an accounting intern, my work primarily involved recording and maintaining

accounts of the company. It consisted of filing, data entry, and recording and
maintaining accurate and complete financial records, working with bookkeeping
software and handling sensitive information with honesty and integrity. Adding to
this I was also told to prepare cost sheet for some products of the company and
file GST returns.

During initial phase I was told to maintain petty cash book of the company
manually after which I was taught how to check the bills of the company and how
to use tally software to record accounting entries.
I was assigned the job to prepare vouchers and also file them. The major duration
of the internship had this work however by the last few weeks I got opportunity to
learn additional things like the manufacturing entries, cost estimation and GST
along with operation of the portal.

2
Duration of the SIP.

The internship started on 11th may 2020. It consisted of five days working with
office timings from 8:30 am to 4:30 pm (As per Covid norms in the district)

Company Profile

Electronic & Power Control Company (An Enterprise of Kakku E & P

Control Pvt Ltd.), Bhilai, was founded in the year 1968 with a clear vision of
"Make in India" through Import Substitution of EOT Crane electrics required by
Core sector Industries both in India and abroad. It was started in the year 1968
by Mr Rajesh Bahadur Mathur who led the Industry into Engineering,
Manufacturing, Technology and Service.  It has a wide Product range which
began with Electrical Relays, forayed into Control & Selector Switches,
Conveyor Safety Switches, Master Controllers, Limit Switches, AC & DC
Electro Magnetic Brakes, Lifting Electromagnets, Resistance Boxes, Crane
Cabins, Armchair Control Desk and for various type of Cranes. Besides Cranes,
Commander Controllers required for Blast Furnace and Rolling Mill
applications for Steel Plants were also added to the product range. Its customers
are companies like TATA, SAIL, NTPC, BHEL and Jindal. KAKKU has 50+
years of experience. The Company is also involved in servicing, maintenance
and repairs of widest-range of Control Gears and Electro-mechanical Control
Equipment.

3
Board and management

The company is managed by the chairman Mr Rajesh Bahadur Mathur and

directors Mr Amit Bahadur and Mr Sumeet Bahadur. The Board of Directors
are accountable for both operational and financial performance of the company.
They are also responsible for budget approval, policy adoption or changes, new
project and audit etc.

Accounts Department

Since the company is an SSI unit the accounts department is primarily

responsible for maintaining all the accounts. Making and receiving payments,
filing GST returns, calculation of income tax and costing. It also performs tasks
like preparation of petty cash book and Bank Reconciliation. It is headed by the
senior accountant with two accountants working under him.

Objectives of the study

 To understand how the accounts department works in an organization.

 To prepare accounts of a bona fide company.
 To understand corporate world and get exposure.
 Getting conversant with company laws and other legal framework.
 Getting better knowledge of accounting and practically applying it.
 Enhancing soft skills.
 Develop connection with various intellectual and professional people and
build a network.
 To harness the skills, knowledge and theoretical practice which has been
taught in the university and to apply the knowledge in real work
situations thereby filling the gap between academic work and the actual
practice.

4
Importance of accounting

An accounting practice is intended to enforce a firm's accounting guidelines and

policies. It exists as the daily recording of financial data that is important to the
evaluation and monitoring of the firm's economic activities. Well-maintained
and balanced accounting records are one of the vital parts of a business. In order
to keep good business accounting records, we need to have a good accounting
program and the knowledge to keep it well-organized and up-to-date. Everyday
accounting and financial information will need to be processed and reviewed in
order to achieve goals and to be able to predict future finances. Knowing where
money is spent and how it is possible to reduce costs are some of the most

important topics in starting and making business grow. Detailed and correct
preparation allows auditors to study these financial statements and determine
the accuracy and integrity of the business. It also helps in meeting taxation and
other legal compliance.

Tally software and its working.

The company I worked for maintained its transactions on the Tally software.
Tally is a powerful accounting software, which is driven by a technology called
concurrent multi-lingual accelerated technology engine. It is easy to use
software and is designed to simplify complex day to day activities associated
with an enterprise. Tally provides comprehensive solution around accounting
principles, inventory and data integrity.  It provides information about
receivables turnover, cash flow statement, activity consolidation and even
branch accounting. Tally accounting software can seamlessly connect with
various Microsoft applications. Tally accounting software is east to set up and
simple to use. A single connection can support multiple users.
The software gives options of purchase, sales, contra, receipt and payment
voucher. As for an accountant it is expected to identify the nature of business
transaction and enter it correctly on tally. It also gives options to see the profit
and loss statement, balance sheet and reconcile the cash balance in the books
with that of bank statements of the company.

5
Methodology

Data source: Data for this report has been extracted from both primary as well
as secondary sources.

Primary Data: Primary Data comprise of personal learning and understanding.

Secondary Data: Collected from company’s website, brochure and websites like
clear tax, Investopedia. Accountancy book i.e., TS Grewal.

The petty cash book of the company is prepared manually except these all-other
transactions are recorded in the tally.

The flow chart of accounting activity of the company

CHECKING THE BILLS/ SOURCE OF DOCUMENT

IDENTIFYING THE TRANSACTION NATURE.

ENTERING THE TRANSACTION INTO TALLY

GETTING ENTRIES CHECKED FROM HEAD ACCOUNTANT.

HEADACCOUNTANT

6
Working Procedure

Financial Accounting

After checking the bills received by the company, only those bills that are
correct are entered on the tally. The transactions recorded by me were checked
by the senior accountant to obviate any sort of error. The vouchers are then
printed and are filed in the respective folders and is kept intact by the company
for 10 years.

Vouchers must be filed properly so that it could be used whenever required in

for future reference.

The company abides by the Companies Act 2013 and makes profit and loss
statement and balance sheet in a well-defined manner as its final statements.

The company maintains petty cash book manually in the register. Petty cash
book is a type of cash book that is used to record minor regular
expenditures incurred in the normal course. All receipts are recorded on the
debit side and all payments are recorded on the credit side of petty cash book by
the petty cashier. In the company, cash is given on the imprest system. Under
imprest system, a fixed amount of money known as float is given to meet petty
expenditures for an agreed period which usually consists of a week or month.

The company prepares the following as a part of their working

1. Payment and receipt vouchers -Payment and receipt vouchers are

used to account for all the payments and receipts of the company
by
way of cash/bank.
2. Purchase and sale voucher -Sales voucher is used to record the sales
transactions and purchase voucher is used to record the purchase
transactions. 
3. Debit and credit note- When a buyer returns goods to the seller, he sends
a debit note as an intimation to the seller of the amount and quantity
being returned and requesting the return of money.
When a seller receives goods (returned) from the buyer, he prepares and
sends a credit note as an intimation to the buyer showing that the money
for the related goods is being returned in the form of a credit note.

7
4.The purchase book has the transactions related to credit purchase while sales
book has transactions pertaining to credit sales. Such transaction that cannot be
recorded in any subsidiary book then it is recorded in the journal.

5.Contra- Contra entries are just transfer fund between internal accounts or

transactions involving cash and bank account simultaneously.

Costing

Since the company is an engineering concern with complex components and

materials, cost estimation becomes a significant factor so as to provide better
quality of products to the customers at ap purchasable rate. The company
maintains the details of its products along with the raw material used in the
making of each component. It regularly checks the price fluctuations in the
resources and estimates the cost accordingly after adding profit of 20% and 30%
according to different products. Seeing the pandemic situation, the company has
come up with a new product called mask vending machine. I was given the task
to estimate the cost of producing mask vending machine

For cost sheet preparation one has to first understand company’s products and
raw material required by them. After this cost per unit of each
material/component is taken and added along with the labour cost and general
expenses apportioned as 15% of the prime cost. The company’s profit margin is
generally 15%,20% and 30% depending on the product.

As an intern I prepared cost sheet for VDC, Vending machine and incinerator

Taxation

I was given the task to file GSTR1 on the GST portal. The company regularly
uploads its bills on the portal. GSTR-1 is a return statement in which a regular
dealer needs to capture all the outward supplies made during the month or a
quarter. In simple words, GSTR-1 is a return in which details of sales and other
outward supplies needs to be captured.

Steps to file the return-

8
 1. One needs to login to the portal after which one needs to go the dash
board to file the return.
2. After selecting file, the return option, the financial year, quarter and
period is selected.
3. Then GSTR1 option selected.
4. After this 4A,4B,4C6B -B2B Option is selected and the details of the bill
are added.
5. The GST number of the other company is entered after which all other
details like the name, place of supply etc gets auto populated. After this
the tax bracket mentioned in the invoice is selected and the total invoice
amount is inserted and then it is okayed.

Bank Statements Reconciliation

Another task assigned was reconciling the company’s bank statements. When
the company receives its bank statement, the company verifies that the amounts
on the bank statement are consistent or compatible with the amounts in the
company’s cash account in its general ledger and that of the general ledger is
also consistent with the bank statement. This process of confirming the amounts
is referred to as reconciling of Bank Statement

Findings

Since the company is an SSI unit all the major accounting functions and
financial activities are carried out by the accounts department. It is great that
company uses the latest version of Tally i.e Tally ERP9 for maintain accounts
and not the manual preparation of accounts.

The major source of earnings for the company is through sale of its products
and job work and major sources of expenses are raw material purchases, job bill
payment and staff welfare expenses. The company uses voucher system and
holds a small amount of liquid cash for meeting the petty expenses. The sale
entry in the company is passed with effect to the inventory. It values stock on
FIFO basis.

Predicament
9
The company’s financial statement comprises only of income statement and
balance sheet. It does not prepare cash flow or fund flow statements which can
give extra information of the usage of cash, receipts, inflows and outflows.

The company has diverse range of products requiring plethora of raw material.
The components of the products itself contain various sub components which in
turn require various raw materials. Understanding the material requirements and
its prices becomes perplexing especially while preparing cost sheet and
recording manufacturing entries.

Recommendation

Kakku electronic and power control pvt limited is a well-known brand among
various heavy industries in India as well as in countries like Turkey, South
Africa and Indonesia. The company has strong financials and thoroughly
complies to accounting and taxation system. However, the company can adopt
certain things as per my understanding which can help in improving its
performance.

1. Complex product range demands for better upkeep of raw material and
inventory. Storekeeping should be made more disciplined so that stock
entries passed in the tally matches with actual quantity of stock.
2. The Company can also prepare cash flow statement in order to fathom
cash inflows and outflows.
3. The company apportions its admin expenses to the cost of its product at
fixed percentage instead of that marginal costing can be used as the
products won’t be under or over absorbed.
4. Accounts department can be segregated into bookkeeping, banking
activities, taxation by forming teams with more employees so that all the
accounts and finance related activities can be distributed and controlled.
This also obviates overlapping of work and smooth and timely
completion of work.

Learnings
10
Understanding how actually a company runs. And most importantly the
working of the accounts department.

Getting practical knowledge of products like lifting magnets, limit switches and
panel boxes and how they are made in the factory.

Applying the knowledge and principles learnt so far in a practical way in

maintaining accounts of a real company.

Learning the operation of tally software and how to use it seamlessly and faster.

Understanding corporate laws and various legal compliances that any company
has to fulfil.

Enhancing communication and learning how to work and coordinate with

others.

Enriching the knowledge of accounting entries, taxation and costing.

Learning time management and discipline.

Conclusion

In the modern education system internship plays a pivotal role as the act of
mediator for the student to connect the theoretical knowledge with practical
working environment. Although the two months internship period was not full
enough to understand the entire working and certain areas like audit, income tax
and inventory management are yet to be explored in depth, however the
internship was excellent and rewarding and helped me in building confidence,
enhancing practical knowledge, staying motivated and developing a
professional network.

It made my working more organized and has prepared me so that I can try serve
the needs of industry and commerce more effectively upon graduation and adapt
everything easily.

Appendices

11
Cost of Mask Vending Machine.

12
Cost sheet for Incinerators.

13
VOUCHERS

14
15
16
GST PORTAL

17
18
References

www.kakkuindia.com

https://tallysolutions.com

https://www.gst.gov.in

https://corporatefinanceinstitute.com/resources/knowledge/accounting/voucher

19