A REPORT ON THE INTERNSHIP PROGRAMME

AT

TAMILNADU CHEMICAL PRODUCTS LIMITED

Submitted to Loyola College (Autonomous), Chennai,

in the partial fulfilment of the requirements of the Skill Based Course for the
award of the degree of
BACHELOR OF COMMERCE
By
MANJUNATH.N
16-UCO-537

Under the guidance of

Prof. Alexander Y, M.Com., M.Phil., M.B.A.,

Department Of Commerce (Shift – II)

Loyola College, Chennai – 600 034.

March 2019
 Declaration

I hereby declare that this project submitted to the Department of Commerce Shift –II
Loyola College, Chennai-34, is a record of an original work done by me under the guidance
of Prof. Alexander Y. M.Com., M.Phil., MBA. Assistant Professor, Department of
Commerce and this project is submitted in the partial fulfilment of requirements for the skill
based course for the award of the degree of Bachelor of Commerce.

MANJUNATH.N
16-UCO-537
DATE:12th March 2019
 ACKNOWLEDGEMENT:

First and foremost, I thank God, Almighty for blessing me with the knowledge and
ability to successfully complete this project. Next, I would like to express my
gratitude and respect to all those who guided and inspired me during the course of
my project work.

I convey my sincere thanks to the guide of the project, Prof. ALEXANDER . Y

for extending his support and guiding me towards the project.

I express my Thanks to the Principal of Loyola College Rev. Dr. F. Andrew, S.J.
for giving me an opportunity to learn the nuances of Internship training.

My sincere Thanks also goes to our Co-ordinator of B.com Shift-II, Prof. K. T.

Manivannan for allowing me to complete my Internship.

My deep sense of thanks to Mr.PANDURANGAN, the work guide for me at TCP ltd. ,
for his encouragement and support.

Thanks to all those who helped and trained me directly and indirectly at TCP.
I once again thank my college for providing me such a wonderful opportunity,
which helped me to understand various concepts and qualities in finance

I would also like to thank my institution and my entire professors, without whom
this entire project would have been a distant reality. I would also extend my family, friends
and well wishers.
 TABLE OF CONTENTS
PARTICULARS PAGE NO.

1)INTERNSHIP ACCEPTANCE LETTER

2)INTERNSHIP COMPLETION LETTER
3)DECLARATION
4)ACKNOWLEDGEMENT
5)CHAPTER 1- INTRODUCTION:
5.1) ABOUT THE COMPANY
6)CHAPTER 2 -INTERNSHIP LEARNING and SKILLS
ACQUIRED
6.1)PROCESSES LEARNT
7)CHAPTER 3-INTERNSHIP OUTCOME
8)CHAPTER 4-SUGGESTIONS AND CONCLUSIONS
8.1)SUGGESTIONS
8.2)CONCLUSIONS
9)BIBILIOGRAPHY
10)INTERNSHIP WORK DIARY(Daily work report)
CHAPTER ONE :
INTRODUCTION
ABOUT THE COMPANY
TCP Limited was incorporated on 8th June 1971, as a Joint Sector Unit, with the Tamil Nadu
Industrial Development Corporation Limited (TIDCO).
The company has set up its Plant for the manufacture of 4600 Metric tonnes (re endorsed
from 3300 tonnes) of Sodium Hydrosulphite (SHS), with the technical Know-how from the
Mitsubishi Corporation of Japan, through the unique Sodium Formate Route, adopted for the
first time in India. The plant is located at Karaikudi, a notified backward area, in Tamil Nadu
state.
The product, Viz., Sodium Hydrosulphite, has a very wide application in the industries like
Textiles, Jaggery, Pharmaceuticals and Ceramics.
The Company has also set up a Plant for the manufacture of 4950 Metric tonnes of Liquid
Sulphur Dioxide, as a captive plant, for the supply of Liquid Sulphur Dioxide for the
manufacture of Sodium Hydrosulphite (SHS), with the technical Know-how from M/s
Garbato Implanti Chemicals. Milano, Italy.
The company has also put up an additional Sulphur Dioxide Plant for the supply of Sulphur
Dioxide to Refineries and also to augment the supplies for the production of Sodium
Hydrosulphite.
The company has consistently achieved higher capacity utilization, which is unique in any
chemical industry.

PROJECT COST AND FINANCING

The project was implemented at a project cost of about Rs.8 Crores. The project was initially
financed by the All India Central Financial Institutions by way of Equity participation,
private placement of debentures, and a Term Loan assistance was provided.
The Company has fully repaid the institutional Term loan assistance of Rs.520 lakhs and has
also redeemed the Cumulative Redeemable Preference Shares of Rs.25 lakhs, within the time
limit prescribed for redemption. The company has obtained the central subsidy for setting up
the plant in a notified backward area.
PRODUCT APPLICATIONS
The product has got application in the following industries:
a) Textile: As reducing agent or Dyeing Auxiliary in Vat Dyeing.
b) Food: As a preservative
c) Sugar/Jaggery: For purification as a Bleaching Agent in the removal of organic and other
impurities.
d) Pharmaceutical: As a Bleaching Agent in the manufacture of certain Antibiotics and
Analgesics.
e) Paper: Used as a Bleaching Agent in paper and pulp industry.
f) Clay: Bleaching of clay for removing iron impurities.
g) VAT: Manufacture of Vat Dyes.
h) Soap: Bleaching of Crude Soap.
i) Tanning of Leather: Used as a Reducing Agent in the preparation of Chrome Tanned
Leather.

MARKET
The Sodium Hydrosulphite manufactured by the company is being marketed throughout the
country. In view of the unique manufacturing process adopted by the company, as compared
to the process adopted by the competitors, the quality of the product manufactured by the
company is superior when compared to the products of the competitors. Thus, the product
manufactured by the company is widely acclaimed as the best and is readily accepted in both
the Indigenous and the International markets.
The company has been granted ISO 9001 Quality System Certificate by DET NORSKE
VERITAS, Netherlands. The company has also been given ISO 14001 (Environment
Management System) for its Power Plant.
The company is exporting its products to France, Spain, Italy, Germany, U.K., Netherlands,
U.S.A., and Indonesia and is earning valuable foreign exchange. Considering the presence of
multinational giants in the aforesaid countries, marketing similar products, the consistent
export performance by the company is a significant achievement by the company and is a
testimony to the quality of its product.

Apart from Sulphur the company also trades in other Organic and Inorganic chemicals.
DEBTS PAYMENT
The company has been regular in servicing its debts. There is no default, either in the
payment of interest or in the repayment of loans, on due dates, to the Financial Institutions
and Bankers, from whom the company had taken loan. The company anticipates no difficulty
in servicing its debts already taken and to be taken in future, from the Institutions and Banks,
in view of its continued financial soundness.

NEW PROJECTS COMMISIONED

SODIUM FORMALDEHYDE SULF OXYLATE PLANT

The company has set up a Plant for manufacture of Sodium Formaldehyde Sulf Oxylate, each
of 500 tonnes capacity, per annum. The Sodium Formaldehyde Sulf Oxylate Plant was
commissioned in March 1991.
The plant was set up at a cost of Rs.2 Crores by availing finance from the Industrial Credit
and Investment Corporation of India Ltd. (ICICI) through Buyers Line of Credit. This was
duly repaid in full by March 1996.
The product has been well received in the market and is comparable to similar products
available in the market. It is being marketed, throughout the country, under the brand name of
Tangolite

WIND MILL PROJECT

The company has set up 12 Wind Electric Generators of 225 KW each, at Kayathar, in
Thirunelveli District, in Tamil Nadu, with the financial assistance of Rs.2 Crores from the
Industrial Development Bank of India (IDBI) and Rs.6.80 Crores from the Indian Renewable
Energy Development Agency Ltd. (IREDA). All the 12 windmills have been duly installed
and commissioned and the energy generated has been drawn for our factory at Karaikudi.
The company has also set up 7 Wind Electric Generators of 500 KW each, at Palladam
Taluk, in Coimbatore District, in Tamil Nadu, at a cost of about Rs.20 Crores, with the
financial assistance of Rs. 14.45 Crores from the IndusInd Bank Ltd and Rs.5.55 Crores from
internal accrual.
The company has also set up 6 Wind Electric Generators of 500 KW each, at Thenkasi Taluk,
in Thirunelveli District, in Tamil Nadu, at a cost of Rs. 20 Crores, financed from internal
accrual.
EXPANSION OF SODIUM HYDROSULPHITE PLANT CAPACITY
The company has expanded the capacity of the Hydrosulphite Plant (SHS) from 4600 tonnes
(re-endorsed) to 8500 tonnes per annum by adding filter dryer and other balancing
equipment. The company has, out of its own internal accruals, successfully expanded the
existing capacity. Due to consistent R&D efforts carried out by the company, the company
was able to increase the yield per batch and consequently was able to achieve higher
production.

TRISALT AND DRUM PLANT

As a part of backward integration, the company, by its R&D efforts, has been successful in
identifying three salts, viz., Sodium Formate, Sodium Sulphite and Sodium Thio Sulphate out
of the company effluent discharge thereby reducing the effluent almost to a zero level. These
trisalts are being marketed and has value addition and is being used in leather, paper and
photographic industries.

FOOD DIVISION
The company, as part of further diversification, has identified wheat products manufacturing
unit. The unit has been purchased and is given on lease.

6 MW BIOMASS BASED POWER PROJECT

The company is presently implementing a 6 MW Biomass based Power Plant at a cost of
around Rs.22 Crores duly financed partly by the Bankers and partly out of internal
generation.

ABOUT THE PRODUCT

SODIUM HYDROSULHPITE
TCP Limited is one of the leading manufacturers of Pure Sodium Hydrosulphite (popularly
known as Hydros) in India. We adopt a unique process for the manufacture of Sodium
Hydrosulphite, known as 'Sodium Formate Process', as against the conventional method of
Zinc or Amalgam Process. The advantage of Sodium Formate Process is that the end product
does not contain even traces of Zinc Iron or Mercury. TCP has collaboration with M/s
Mitsubishi Corporation of Japan, who have supplied both the imported equipment and the
process know how for the plant. This is the only plant in India and among the five in the
world, using this unique. 'Sodium Formate Process'.
Liquid Sulphur Dioxide
Liquid Sulphur Dioxide is used in (Refineries for Kerosene Refining.) Lab Chemicals
manufacturing, Paper bleaching, Rayon pulp Bleaching. Leather chemical manufacturing etc.
It is being supplied in cylinder tonners.

OTHER DIVISION AND BUSINESSES

POWER DIVISION
During the year, the Company had sold 3,710 lakh units of electricity as against 3,586 lakh
units in the previous year from the Thermal Power Plant, an increase by about 3%. The Wind
mills had exported 279 lakh units of electricity as against 298 lakh units in the previous year.
The Company sells power under Group Captive Consumer arrangement. The power
generated up to 58 MW were sold to Group Captive Consumers and the balance power
generated was towards captive consumption. The Group Captive Consumers Arrangement
Rules stipulate that the Group Captive Consumers should hold at least 26% share holding in
the Company. As at 31st March 2018 there are about 69 Group Captive Consumers holding
about 26.13% equity shareholding in the Company.
The power plant is located at Gummidipundi,Tiruvallur district.

TCP Hotels Private Ltd

TCP Hotels Private Ltd derives rental income from letting out its property and this is the
only source of income for the company for the year ended 31st March 2018. For the year
ended 31st March 2018, the company has earned income of Rs.42 lakhs and other income of
Rs.29,850/- and had reported Net profit (before tax) of Rs.39,44,437 (Rs. 39,10,368 in the
previous year) and Net profit (after tax) of Rs.32,02,486 (Rs. 30,19,368 in the previous year).
TCP Ltd is paying rent to TCP Hotels Private Ltd, pursuant to a rental agreement entered into
with TCP Hotels Private Ltd, for taking on rent, a portion of the premises owned by TCP
Hotels Private Ltd and the amount of such rent paid during the year is Rs.36 lakhs. This is a
related party transaction in the ordinary course of business and made on arm’s length basis.
The omnibus approval of the Audit Committee has been obtained for entering into this
routine transaction.
CREDIT RATING
The Credit rating assigned to the Company as at 31st March 2018 are as follows:
Long term CRISIL BBB/ Stable CRISIL
Bank borrowings – Short term CRISIL A3+ CRISIL
Fixed Deposits FA-/ Stable
The rating shall remain valid up to 31st March 2019.

VISION GOALS AND OBJECTIVES

(A) Conservation of Energy:
a. The Company ensures that the manufacturing operations are conducted in the manner
whereby optimum utilization and maximum possible savings of energy is achieved. As the
impact of measures taken for conservation and optimum utilisation of energy are not
quantitative, its impact on cost cannot be ascertained accurately.
b. The Company’s chemical plant engaged in manufacturing operations utilises the
alternative sources of energy from the Biomass based power and power generated from
windmills.
c. No specific investment has been made on energy conservation equipment The company
aims at improving this situation and increasing its investment in projects and assets that
assure better conservation of energy.

(B) Technology absorption:

The Company’s vision is to produce products by using in-house know how and utilising no
outside technology for manufacturing activities. The Company constantly strives for
maintenance and improvement in quality of its products and entire Research & Development
activities are directed to achieve the aforesaid goal.

AUDITOR’S OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2018, based on the internal control over
financial reporting criteria established by the Company considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India.
CORPORATE SOCIAL RESPONSIBILITY
The objective of the Corporate Social Responsibility (CSR) Policy of the Company is to
continue to contribute towards social welfare projects for the benefit of the general public and
in particular to the people living around the areas where the company’s manufacturing /
generation activities are located. The CSR Policy focuses on providing facilities for imparting
education, vocational training, and promoting health care to economically weaker and under
privileged sections of the society and to do such other activities as may be permissible under
section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility
Policy) Rules, 2014.
The Company has spent the following amount on CSR activities during the year 2017-18:
Amount to be spent on CSR activities for the year ended 31-3-18 : Rs. 75,98,515
Amount spent on the CSR activities during 2017-18 : Rs. 65,94,494
Amount unspent : Rs. 10,04,021
ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE BOARD’S
REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2018
A brief outline of the company’s CSR policy, including overview of projects or
programs proposed to be undertaken and a reference to the web-link to the CSR policy
and projects and programs.
The aim of TCP Ltd is to be one of the most respected companies in India delivering superior
and everlasting value to all our customers, associates, shareholders, employees and Society at
large.
The Corporate Social Responsibility (CSR) initiatives of the Company focus on holistic
development of host communities and create social, environmental and economic value to the
society. To pursue these objectives, we will continue to:
i. Work actively in areas of eradication of hunger, poverty and malnutrition,
promoting health care including preventive health care and sanitation and
making available safe drinking water.
ii. Provide opportunity and financial assistance for the promotion of education,
provide medical aid to the needy and down trodden.
iii. Collaborate with likeminded bodies like Voluntary organizations, charitable
trusts, Government and academic institutes in pursuit of our goals.
Average net profit of the Company for last three financial years: Rs. 37,99,25,743/-
Prescribed CSR Expenditure (two percent of the amount as in item 3 above): Rs. 75,98,515/-
REMUNERATION POLICY
Apart from the Directors, KMPs and Senior Management, the remuneration for rest of the
employees is determined on the basis of the role and position of the individual employee,
including professional experience, responsibility, job complexity and local market conditions.
The Company considers it essential to provide incentives to the workforce to ensure adequate
and reasonable compensation to the staff. The Human Resources Department shall ensure
that the level of remuneration motivates and rewards high performers who perform according
to set expectations for the employee. The various remuneration components, basic salary,
allowances, perquisites etc. may be combined to ensure an appropriate and balanced
remuneration package. The annual increments to the remuneration paid to the employees
shall be determined based on the annual appraisal carried out by the Head of Departments of
various departments. Decisions on Annual Increments shall be made on the basis of this
annual appraisal.
SECRETARIAL AUDIT REPORT
Based on my verification of the Company’s Books, records, papers, minutes books, various
forms and returns filed and other records and returns maintained by the company, its officers,
agents and authorized representatives during the conduct of secretarial audit, I, on the basis
and strength of such records, and information so provided, hereby report that in my opinion
and understanding, the Company has during the audit period covering the financial year
ended 31st March, 2018, complied with the statutory provisions listed hereunder and also in
my limited review , that the company has proper and adequate Board processes and
compliance mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter.
Particulars Year ended March 31, 2018 ` Year ended March 31, 2017
`
i. Segment Revenue
a. Chemical 8,751.18 8,144.88
b. Power 19,630.40 21,793.91
c. Biomass 112.44 113.23
d. Windmill 978.24 1,055.42
e. Others 157.74 142.51
Total 29,630.00 31,249.95
Less: Inter- Segment Turnover 1,033.01 940.19
Income from operations (Net) 28,596.99 30,309.76
 CHAPTER TWO:
INTERNSHIP LEARNING
AND SKILLS AQUIRED
PROCESSES LEARNT

CASH AUDIT
The recorded data of all incoming and outgoing cash transactions were presented to me. The
firm has a tendency to maintain cash book in both physical and electronic forms.
1. After the physical versions of the books were handed out to me, I was asked to verify
the recording and the treatment of each of these transactions.
2. Each month had a summary of the amount spent and the individual heads which
contributed to the overall outflow.
3. My first function was to verify the total of such heads. While doing this process I
encountered situations where there was mismatch of allocation of the expenses and its
expense head despite having the accurate accounting treatment. The shortcomings
were duly reported to the work guide.
4. Next procedure was to verify the vouchers which were supporting the happening of
transactions. The company had maintained vouchers even for petty cash transaction
despite having no statutory compulsions. Immaterial transactions also carried
vouchers along with them.
5. After Physical verification I had to verify the electronic occurrence of the same in the
computers maintained by the company and make any changes after prior approval.

BANK RECONCILLIATION
A bank reconciliation is the process of matching the balances in an entity's cash account to
the corresponding information on a bank statement The goal of this process is to ascertain the
differences between the two, and to book changes to the accounting records as appropriate.
The information on the bank statement is the bank's record of all transactions impacting the
entity's bank account during the past month.
A bank reconciliation statement is a summary of banking and business activity that reconciles
an entity’s bank account with its financial records. The statement outlines the deposits,
withdrawals and other activity affecting a bank account for a specific period. A bank
reconciliation statement is a useful financial internal control tool used to thwart fraud.
Bank reconciliation process was done with the help of computers but in a semi-automated
fashion and computers were used only at the final process. The process was performed by me
in the following manner.
1. The physical copies of the cash and pass books were handed to me.
2. I had to manually verify the occurrence of transactions that prevailed and cross check
the mutually occurring transactions.
3. The sum total of the one sided transaction that incurred in either of the books were
found.
4. Using the sum of the one sided transactions the two statements were reconciled.
5. Reconciliation were done on a monthly basis and we were given data of various
months in order to get an idea of the seasonal aspect of the business.
6. Computers were used for computational purposes and to present data in the prescribed
manner which were accepted by the stakeholders.

SALES BOOK AUDIT CUM ANALYSIS

Every now and then, a business makes various sales in order to gain some form of revenue.
These sales validate the purpose of a business. They provide a lifeline to a business and give
them a reason to exist. Without sales, a business would find its existence redundant.
A Sales book is a record of all credit sales made by a business. It is one of the secondary
book of accounts and unlike cash sales which are recorded in cash book, sales book is only to
record credit sales. The amount entered in the sales book is on behalf of invoices supplied to
purchasers. A Sales book is also called Sales Journal or Sales Day Book.

Following were the documents attached during export sales:

 Commercial invoice: A commercial invoice is a bill for the goods from the seller to
the buyer. These invoices are often used by governments to determine the true value
of goods when assessing customs duties. Governments that use the commercial
invoice to control imports will often specify its form, content, number of copies,
language to be used, and other characteristics.
 Pro Forma Invoice: A pro forma invoice is an invoice prepared by the exporter before
shipping the goods, informing the buyer of the goods to be sent, their value, and other
key specifications. It also can be used as an offering of sale or price quotation.
  Bill of lading: A bill of lading is a contract between the owner of the goods and the
carrier (as with domestic shipments). For vessels, there are two types: a straight bill of
lading, which is non-negotiable, and a negotiable or shipper's order bill of lading. The
latter can be bought, sold, or traded while the goods are in transit. The customer
usually needs an original as proof of ownership to take possession of the goods.
 Airway Bill: Air freight shipments require airway bills. Airway bills are shipper-
specific
 Export license: An export license is a government document that authorizes the
export of specific goods in specific quantities to a particular destination. This
document may be required for most or all exports to some countries or for other
countries only under special circumstances.
 Certificate of Origin: The Certificate of Origin (CO) is required by some countries for
all or only certain products. In many cases, a statement of origin printed on company
letterhead will suffice.
 Inspection certificate: Weight and Quality certificates should be provided in
accordance with government regulations for loading at port and loading at source/mill
site as appropriate.
 Insurance certificate: Insurance certificates are used to assure the consignee that
insurance will cover the loss of or damage to the cargo during transit. These can be
obtained from your freight forwarder or publishing house.

Cumulative foreign exchange earnings from exports Rs.23.13 crores p.a. (as reported in the
annual report)

The verification process was conducted in the following manner,

1. After being awarded the physical version of the sales day book, my first protocol was
to identify any mismatch in the value supported by the invoices and the actual value
that was entered in the sales book.
2. The second level of scrutiny involved the verification of date, time and quantity of the
sale transaction.
3. At the end of each month, there would be summarised presentation of the heads of
debtors who contributed tot the total credit sales. I manually verified the total of such
person heads and there weren’t any mismatch or misallocation of funds.
 4. I was told to understand and analyse the various supporting documents required to
export commodities that were filed along with the sales day book in order to get a
better learning experience.

PURCHASES BOOK AUDIT CUM ANALYSIS

It is also known as a Purchase journal, Invoice book or Purchase day book. Purchase book is
a special purpose subsidiary book prepared by a business to record all credit purchases.
The entries are recorded in the Purchase Book from Source Documents. Invoices or bills
received from the suppliers of goods serve as the Source Documents.
Every month the total of the Purchase Book is posted on the Debit side of the Purchases A/c.
Purchases A/c is a ledger A/c. However, the individual accounts of the suppliers may be
posted daily. Also, where the volume of transactions is too large, the entries in the ledger can
be posted weekly or fortnightly.

List of documents required for imports include the following:

 Bill of entry: Bill of entry is one of the major import document for import customs
clearance. As explained previously, Bill of Entry is the legal document to be filed by
CHA or Importer duly signed. Bill of Entry is one of the indicators of ‘total outward
remittance of country’ regulated by Reserve Bank and Customs department. Bill of
entry must be filed within thirty days of arrival of goods at a customs location.
 Commercial invoice: Invoice is the prime document in any business transactions.
Invoice is one of the documents required for import customs clearance for value
appraisal by concerned customs official. Assessable value is calculated on the basis of
terms of delivery of goods mentioned in commercial invoice produced by importer at
customs location.
 Bill of lading/Airway Bill: Bill of lading under sea shipment or Airway bill under air
shipment is carrier’s document required to be submitted with customs for import
customs clearance purpose. Bill of lading or Airway bill issued by carrier provides the
details of cargo with terms of delivery.
 Import license: This license may be mandatory for importing specific chemical goods
as per guide lines provided by government. Import of such specific chemical products
may have been and are being regulated by government time to time. So government
 insist an import license as one of the documents required for import customs
clearance to bring those vulnerable chemical materials from foreign countries.
 Insurance Certificate: Insurance certificate is one of the documents required for
import customs clearance procedures. Insurance certificate is a supporting document
against importer’s declaration on terms of delivery. Insurance certificate under import
shipment helps customs authorities to verify, whether selling price includes insurance
or not. This is required to find assessable value which determines import duty
amount.
 Purchase order/Letter of credit: Purchase order is one of the documents required for
import customs clearance. A purchase order reflects almost all terms and conditions
of sale contract which enables the customs official to confirm on value assessment. If
an import consignment is under letter of credit basis, the importer can submit a copy
of Letter of Credit along with the documents for import clearance
 Industrial license: An industrial license copy may be required under specific goods
importing. If Importer claims any import benefit as per guidelines of government,
such Industrial License can be produced to avail the benefit. In such case, Industrial
license copy can be submitted with customs authorities as one of the import clearance
documents.
 Technical Write-up: Technical write up, literature of imported goods or any other
similar documents may be required as one of the documents for import clearance
under some specific goods. Under this scenario, the company wrote about the
technical composition of the chemical product it is willing to import and justifies the
import citing the lack of availability of the specific product in India.
 GATT and DGFT Declaration: As per the guidelines of Government of India, every
importer needs to file GATT declaration and DGFT declaration along with other
import customs clearance documents with customs. GATT declaration has to be filed
by Importer as per the terms of General Agreement on Tariff and Trade.
 RCMC; Registration cum membership certificate: For the purpose of availing import
duty exemption from government agencies under specific goods, production of
RCMC with customs authorities is one of the requirements for import clearance. In
such cases importer needs to submit Registration Cum Membership Certificate along
with import customs clearance documents.
Foreign exchange outgo on payments for imports Rs.63.75 crores p.a.

The verification process was conducted in the following manner,

1. After being awarded the physical version of the purchases day book, my first protocol
was to identify any mismatch in the value supported by the invoices and the actual
value that was entered in the sales book.
2. The second level of scrutiny involved the verification of date, time and quantity of the
sale transaction.
3. At the end of each month, there would be summarised presentation of the heads of
creditors who contributed tot the total credit purchases. I manually verified the total of
such person heads and there weren’t any mismatch or misallocation of funds.
4. I was told to understand and analyse the various supporting documents required to
import commodities that were filed along with the purchases day book in order to get
a better learning experience.

STORES LEDGER ANALYSIS

A stores ledger is generally a record of materials used in production. It records items
purchased as an increase to the inventory and items issued to the production department as a
decrease to inventory so as to show the available inventory of that material at any given time.
Those items issued to the production department are incorporated into the product and
become part of the cost of producing that product.
The information listed on a stores ledger can follow one of two formats:
 Unit quantities only. The ledger shows the beginning unit quantity of an inventory or
supplies item, plus or minus any subsequent additions to or subtractions from stock.
When used for this purpose, the stores ledger may instead be referred to as a bin card
 Quantities at cost. The same as the first format, except that the cost of the items is
also listed in the ledger.

The head quarters in Chennai had the quantities at cost version. This version was not
available to all as it contained the confidential information regarding the profitability of the
company. The version was made available only to the CFO and other key managerial
personnel. The factory had the unit quantity version and I was also provided with the same.
I was asked to analyse the patterns at which the company ordered commodities and find out
the rationale behind their buying behaviour.
The company maintained high levels of inventory more than what was required and therefore
had huge preservation costs. They ordered at high quantities in order to reduce the
transportation cost and to avail any discount on bulk orders from suppliers.
Preservation meant the purchase and imports of specialised barrels that shall withstand the
chemical nature of sodium hydrosulphite and liquid sulphur dioxide.
FINANCIAL STATEMENTS ANALYSIS
Financial statements are reports prepared by a company’s management to present the
financial performance and position at a point in time. A general-purpose set of financial
statements usually includes a balance sheet, income statements, statement of owner’s equity,
and statement of cash flows. These statements are prepared to give users outside of the
company, like investors and creditors, more information about the company’s financial
positions. Publicly traded companies are also required to present these statements along with
others to regulator agencies in a timely manner.
The three financial statements are:
(1) the Income Statement,
(2) the Balance Sheet, and
(3) the Cash Flow Statement.
These three core statements are intricately linked to each other.
INCOME STATEMENT
Often, the first place an investor or analyst will look is the income statement. The income
statement shows the performance of the business throughout each period, displaying sales
revenue at the very top. The statement then deducts the cost of goods sold (COGS) to
find gross profit. From there, the gross profit is affected by other operating expenses and
income, depending on the nature of the business, to reach net income at the bottom – “the
bottom line” for the business.
Key features:
 Shows the revenues and expenses of a business
 Expressed over a period of time (i.e. 1 year, 1 quarter, Year-to-Date, etc.)
 Uses accounting principles such as matching and accruals to represent figures (not
presented on a cash basis)
 Used to assess profitability
BALANCESHEET
The balance sheet displays the company’s assets, liabilities, and shareholders’ equity. As
commonly known, assets must equal liabilities plus equity. The asset section begins with cash
and equivalents, which should equal the balance found at the end of the cash flow statement.
The balance sheet then displays the changes in each major account. Net income from the
income statement flows into the balance sheet as a change in retained earnings (adjusted for
payment of dividends).

Key features:
 Shows the financial position of a business
 Expressed as a “snapshot” or point in time (i.e. as at December 31, 2017)
 Has three sections: assets, liabilities, and shareholders equity
 Assets = Liabilities + Shareholders Equity

CASH FLOW STATEMENT

The cash flow statement then takes net income and adjusts it for any non-cash expenses.
Then, using changes in the balance sheet, usage and receipt of cash is found. The cash flow
statement displays the change in cash per period, as well as the beginning balance and ending
balance of cash.

Key features:
 Shows the increases and decreases in cash
 Expressed over a period of time (i.e. 1 year, 1 quarter, Year-to-Date, etc.)
 Undoes all accounting principles to show pure cash movements
 Has three sections: cash from operations, cash used in investing, and cash from
financing
 Shows the net change in cash balance from start to end of the period
 Easy to comprehend
 Covers all major heads.
INTERNAL CONTROL
Internal controls are the mechanisms, rules, and procedures implemented by a company to
ensure the integrity of financial and accounting information, promote accountability and
prevent fraud. Besides complying with laws and regulations, and preventing employees from
stealing assets or committing fraud, internal controls can help improve operational efficiency
by improving the accuracy and timeliness of financial reporting.
The auditor’s opinion that accompanies financial statements is based on an audit of the
procedures and records used to produce them. As part of an audit, external auditors will test a
company’s accounting processes and internal controls and provide an opinion as to their
effectiveness.
Internal audits evaluate a company’s internal controls, including its corporate governance and
accounting processes. They ensure compliance with laws and regulations and accurate and
timely financial reporting and data collection, as well as helping to maintain operational
efficiency by identifying problems and correcting lapses before they are discovered in an
external audit. Internal audits play a critical role in a company’s operations and corporate
governance.

OBJECTIVES OF INTERNAL CONTROL

Internal control should have the following objectives:

 Efficient conduct of business:

Controls should be in place to ensure that processes flow smoothly and operations are
free from disruptions. This mitigates against the risk of inefficiencies and threats to
the creation of value in the organisation.
 Safeguarding assets:
Controls should be in place to ensure that assets are deployed for their proper
purposes, and are not vulnerable to misuse or theft. A comprehensive approach to his
objective should consider all assets, including both tangible and intangible assets.
 Preventing and detecting fraud and other unlawful acts:
Even small businesses with simple organisation structures may fall victim to these
violations, but as organisations increase in size and complexity, the nature of
fraudulent practices becomes more diverse, and controls must be capable of
addressing these.
  Completeness and accuracy of financial records:
An organisation cannot produce accurate financial statements if its financial records
are unreliable. Systems should be capable of recording transactions so that the nature
of business transacted is properly reflected in the financial accounts.
 Timely preparation of financial statements:
Organisations should be able to fulfil their legal obligations to submit their account,
accurately and on time. They also have a duty to their shareholders to produce
meaningful statements. Internal controls may also be applied to management
accounting processes, which are necessary for effective strategic planning, decision
taking and monitoring of organisational performance.

INTERNAL CHECK
Internal check is a system through which the accounting procedures of an organisation are so
laid out that the accounts procedures are not under the absolute and independent control of
any person. The work of one employee is complementary of that of another, enabling a
continuous audit of the business to be made.
The essential elements of an internal check are:
 checks are implemented on day-to-day transactions
 checks operate continuously as a part of the system
 the work of each person is complementary to the work of another.

By allocating duties in this way, no one person has exclusive control over any transaction.

INTERNAL AUDIT
Internal audit may be defined as an independent appraisal function established within an
organisation to examine and evaluate its activities as a service to the organisation.
Internal audit supports management in the effective discharge of their responsibilities. To this
end, internal audit furnishes management with analyses, appraisals, recommendations,
counsel and information concerning the activities reviewed.
OBJECTIVES OF INTERNAL AUDIT
The formal objectives of internal audit may include some or all of the following:
 review of accounting and internal control systems
 examination of financial and operating information
 review of the ‘three E’s (economy, efficiency and effectiveness)
  review of compliance with laws and regulations
 review of arrangements for the safeguarding of assets
 review of implementation of corporate goals and objectives
 identification of significant risks to the organisation, and monitoring risk management
policy and risk management strategies
 special investigations as required.

VOUCHING
Vouching, widely recognized as “the backbone of auditing,” is a component of an audit
seeking to authenticate the transactions recorded in a firm’s book of accounts. When an
accounting transaction is vouched, it is tested and verified by presenting relevant
documentary evidence.
Seeking to establish the accuracy of recorded transactions, vouching ensures that all the
entries in the books of accounts come with the relevant evidence, including invoices, receipts,
and others. Vouching does not take into account the non-business transactions, thus helping
auditors to ensure that all transactions in a firm’s book of accounts are business-related.
Auditors confirm that the amounts mentioned in each transaction are truthful, disclosing the
nature of a transaction, and its authorization.
Benefits of vouching include,
a) Helps checking of all book entries duly authorised.
(b) Facilitates detection and prevention of errors, frauds and irregularities.
(c) Imparts credibility and reliability to financial statements.
(d) Very essence of auditing.

PROCUREMENT PROCESS
It’s the series of processes that are essential to get products or services from requisition
to purchase order and invoice approval. Although we use ‘procurement’ and ‘purchasing’
interchangeably, they slightly differ from each other.
While purchasing is the overarching process of obtaining necessary goods and services on
behalf of an organization, procurement describes the activities involved in obtaining them.

The procurement process in an organization is unique to its context and operations.

Step 0: Needs Recognition
The preliminary step in a procurement process is recognizing the need for a product. Be it a
brand new order or a recurring purchase, needs are analysed and the availability is double-
checked before creating a request for purchase.
Step 1: Purchase Requisition
Typically, a procurement process starts with a purchase requisition. The requester sends a
request for procurement (paper form, electronic, or phone) to the purchasing department.
Step 2: Review of Request
The purchase request is then reviewed by the procurement/finance team. Approved requests
become POs, while rejected requests are sent back to the requester with the reason for
rejection. All these can be handled with a simple purchase order app
Step 3: Budget Approval
In enterprises, once the procurement team raises a PO, it is forwarded to the accounting
department to receive budget approval.
Step 4: Quotation Requests
Once the budget is approved, the procurement team forwards several requests for quotation
(RFQ) to vendors with the intention to receive and compare bids to shortlist the perfect
vendor.
Step 5: Negotiation & Contract
Once a vendor is selected, the contract negotiation and signing are completed, and the
purchase order is then forwarded to the vendor. A legally binding contract activates right
after a vendor accepts a PO and acknowledges it.
Step 6: Receive Goods/Services
The vendor delivers the promised goods/services within the stipulated timeline. After
receiving them, the purchaser examines the order and notifies the vendor of any issues with
the received items.
Step 7: Three-Way Matching
At this step, three documents–purchase orders, packaging slips (that arrive with the order),
and vendor invoices–are lined up and reconciled to pinpoint discrepancies and ensure that the
transaction is accurate. Discrepancies should be addressed once they are discovered.
Step 8: Invoice Approval Payment
Once three-way matching is complete, the invoice is approved and forwarded to payment
processing depending on organizational norms.
Step 9: Record Keeping
After the payment process, buyers make a record of it for bookkeeping and auditing. All
appropriate documents right from purchase requests to approved invoices are stored in a
centralized location.

SKILLS AQUIRED WHILE PERFORMING THE ABOVE PROCESSES

1. Auditing and verification skills.

2. Computational skills.
3. Analysis of financial data.
4. Interpretation and drafting inferences from the statements conveying financial
soundness.
5. Corporate communication skills.
6. Recording of the work performed.
7. Financial reporting and representation.
8. Vouching.
9. Trend analysis.
10. Understanding the export and import procedure
11. Handling of MS-Excel.
12. Social skills.
13. Accounting and audit standards.
14. Banking Terminologies.
15. Latest Accounting procedures.
16. CSR Reporting.
17. Grievances handling.
18. Creditors management.
19. Receivables management.
20. Evaluating sources of finance.
 CHAPTER THREE:
INTERNSHIP OUTCOME
The one-month intensive internship program had brought in an array of positive changes in
me. This program not only enabled me to get a bird’s eye view of the culture present in the
corporate industry but also gave me a fair idea about the future challenges that may come my
way during my service.
The company provided me with the space and opportunity to express myself and be apart of
its operations. This seamless inclusion into the organisation made me enhance my learning
curve. The outcomes are as follows:

Technical Skills
An internship is our first opportunity to apply the skills and knowledge we learned in class.
Without this real-world experience, we may not know how to translate theory into practice,
increasing the time it takes to become accustomed to a professional role. Because employers
prefer candidates who have experience, it’s crucial that we use our internship to hone the
career-related skills we learned in college.

People Skills
College coursework is often a solo assignment. We interact with our peers and our professor
during class, and we may also collaborate on projects for our courses or for extracurricular
activities and student associations. However, we spend much of our time buried in our
textbooks or staring at our computer. In the workforce, though, we spend all day surrounded
by our colleagues and supervisors, so it’s crucial we know how to interact with others. If we
are having a bad day, we can’t just give up. We should seek out opportunities to collaborate
with fellow interns and with employees, and observe how people at the company interact.

Organizational and Time Management Skills

As a college student, we know at the beginning of the semester what assignments we must
complete, what they require and when they are due. This makes organizing and planning our
time easier, but it’s an advantage we rarely have as a professional. At a fulltime job, it’s up to
us to plan so that we not only meet deadlines but are also prepared for the unexpected, such
as last-minute assignments. Instead of simply completing tasks by their deadlines, using our
internship to train ourselves to manage our time independently, so our supervisor doesn’t
have to ask for progress reports or remind us of due dates.
INITIATIVE
An initiative is the start of something, with the hope that it will continue. Government and
business start initiatives all the time. You can also talk about initiative as a personal quality.
A person with initiative is motivated to do things. If you take the initiative, you're willing to
get things done on your own. Taking initiative can be risky: If you do something on your own
initiative, then there's nobody you can blame if it goes wrong.

WORK ETHICS
Work ethic is a belief that hard work and diligence have a moral benefit and an inherent
ability, virtue or value to strengthen character and individual abilities. It is a set of values
centred on importance of work and manifested by determination or desire to work hard.
Social engrailment of this value is considered to enhance character through hard work that is
respective to an individual’s field of work.

SELF DISCIPLINE
The most successful interns are those disciplined enough to meet project deadlines without
constant reminders – and who can sometimes even determine their own tasks and work
schedule. This is especially true in a virtual assignment; even in an office internship however,
this requires self-imposed focus and determination.

WORK BALANCE
Work–life balance is the term used to describe the balance that an individual needs between
time allocated for work and other aspects of life. Areas of life other than work–life can be,
but not limited to personal interests, family and social or leisure activities. The term ‘Work-
Life Balance' is recent in origin, as it was first used in UK and US in the late 1970s and
1980s, respectively. More recently the term has drawn on some confusion; this is in part due
to recent technological changes and advances that have made work and work objectives
possible to be completed on a 24-hour cycle. The use of smartphones, email, video-chat, and
other technological innovations has made it possible to work without having a typical "9 to 5
work day".
 CHAPTER FOUR:
CONCLUSIONS and
SUGGESTIONS
SUGGESTIONS AND CONCLUSIONS

SUGGESTIONS TO TCP LTD.

1. Help interns be successful from the very beginning by having a workspace set up for them
before they arrive if feasible. This allows them to get started right away and assures them that
you expect them to be an integral part of the organization.
2. Assign projects that are challenging and valuable to your organization – consider the level
of experience, education and motivation that students possess. Offer pre-professional tasks
(less than 50% clerical work). It is helpful to set goals and put them in writing. Be sure to
define what you want to see from the interns by the end of the internship.
3. Compile a list of secondary tasks for times when interns finish their assignments ahead of
schedule.
4. Meet regularly with the intern to answer questions and to give guidance and feedback. It
can be frustrating for interns if they feel they are interrupting you. Having a set time to
discuss their work will increase efficiency and productivity.
5. Consider interns as “real” employees and teach them about the values of the company. It is
critical that they go through an orientation and be given written policies if available. It
benefits the organization if they have a realistic view of the workplace.
6. Keep them in the organizational loop through emails, memos or staff meetings. ·
Occasionally, surprise the students with “perks” such as a coffee card, paid parking, or
include them in office outings such as cricket games or picnics, etc. This helps them feel like
a part of the organization and can boost morale.
7. Ask students if there are specific areas they would like to learn. When possible, arrange
“personal learning opportunities” for one-on-one discussions with company executives and
key customers to help them begin building their professional network. When possible,
provide Professional networking opportunities to help students gain additional insights into
this career and also increase future employment contacts.

The company can also give out internship opportunities on a regular basis in order to benefit
the organisation which demands a new perspective every now and then. This shall also
benefit a lot of students who can also be a potential employee of the future.
SUGGESTIONS TO LOYOLA COLLEGE
1. Internship timing can be changed so that there are more number of working days
2. A minimum of three months should be allotted only for internship training instead of
attending classes as most of the companies offer 3 month or more internship program
only.
3. Reports can be sent by mail instead of printing and can be checked by the concerned
professor.
4. Holiday for about a week or more can be given after the internship training is done.
5. It would be wonderful if the college can provide expenses for travelling, printing and
other miscellaneous expenses related to the internship programme.
6. The college asks for suggestions every year from the graduating students but there
seems to minimal implementation of it. The suggestions should be taken on a serious
note as the suggestions are similar in nature every year by almost all the students.
7.The college could arrange for internship placements rather than granting full autonomy to
students and asking them to find opportunities themselves.
8.The amount of workload in terms of recording the internship experience can be reduced.

CONCLUSIONS
TCP is an amazing place to work in , the people over there were very good with me and
particularly the Assistant General manager was also very much knowledgeable and an
experienced person, he understands the Interns and makes them involve in all departments
and tried to make the Interns get an all round experience than just doing clerical works.
The internship period was of a great experience as I was successfully able to apply my
theoretical knowledge in the practical field.
It was always thrilling and exciting to visit new clients and interact with them. This helped
me greatly in improving my communication skills and breaking the barriers to communicate
with strangers.