SUMMER INTERNSHIP REPORT

ON
ANALYSIS ACCOUNTS & FINANCIAL STATEMENTS

Submitted in partial fulfillment of the requirements for the award of MBA Degree

Submitted by:
Isha Lohani
MBA (Banking and Finance)
Batch - (2018-2020)
System ID: 2018016014

Under the guidance of

Prof. Raj Kovid

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY, GREATER NOIDA - 201306

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 PREFACE

Summer training is essential for the fulfillment of MBA curriculum. It provides better

understanding of the industry for the student with the special emphasis on the development of

skill in analyzing interoperating practical problem through application of management. This

report documents the work done during the summer internship at Arora Electricals, Ghaziabad

under the supervision of Mr. Firoz Khan. The report shall first give an overview of the tasks

completed during the period of internship with technical details. Then the results obtained shall

be discussed and analyzed. Report shall also elaborate on the future works which can be

persuaded as an advancement of the current work. I have tried my best to keep this report simple

yet technically correct. I hope I succeed in my attempt.

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 ACKNOWLEDGEMENT

This report is based on two months of internship, is the part of MBA program, which is

necessary for my future life. I would like to express my deep respect to my honorable academic

mentor Prof. Raj Kovid, SBS, Sharda University for giving me his valuable time and all the

necessary guidance, which inspired me to prepare this report.

During this period I have gone through the various departments of Arora Electricals and

especially gathered knowledge about the Accounts & Finance department with their great

cooperation. In preparing the report I receive active cooperation from the AGM of the

departments, Accounts controllers, senior accountants and staff of Arora Electricals. I am

grateful to the Senior Accountant of Arora Electricals, Mr. Firoz Khan who helped me by

supplying many kinds of necessary information. This report suffers from many shortcomings

although I have exerted my best effort while preparing this report. I seek excuse for the errors

that might have occurred in spite of the best of my efforts.

PLACE: Signature of the candidate:

DATE: Name:

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 TABLE OF CONTENT

S.NO. Particulars Page No.

1. Part 1 5
About the Organization
3. Product Portfolio 6
4. Gist of Organization 7
5. History of Organization 8
6. Organizational structure of Arora Electricals 9-13
7. Financial Profile of the company 14
8. Analysis and Interpretation 14-17
9. Products & Services 18-24
10. Problems Encountered 25
11. SWOT Analysis 26-28
12. Part 2 29-30
Topics Learned
13. Objective of Internship 31
14. Methodology of the Internship 32
15. Experience gained during Internship 32-33
16. Level of Responsibility 33-34
17. Skills gained from Internship 34
18. Understanding various aspects of Professional work 35
19. Conclusion 36
20. Annexure 37

PART-I

ABOUT THE ORGANIZATION

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Arora Electricals is a pioneer in manufacturing, supplying and export of wide range of

Electrical Products. They use the best grade raw material and advanced methods of

production in the process of making these products. 20% of their products are exported

to many parts of the world and widely cherished for their extraordinary features. Their

company also offers after sales support to the customers, which includes Installation,

Operational Training, Onsite Support and User Manual.

The company possess sophisticated manufacturing unit that has all the required machines

and facilities that helps in accelerating the production rate and enhance the quality of the

products. Also is backed by the team of professionals who are gigantically experienced

in this industry and supports the company enormously in achieving the organizational

goals. All products can be customized as per the client's specifications and need. The

company strictly follow international standards of quality in the process of

manufacturing these products to ensure only flawless products are delivered to the

customers.

The company offers “Customer Support Service” to ensure pleasant, cheerful and a

sincere approach to our customers and assist them in selecting the most suited products

for their need. The ethical business practice and transparency in dealings have helped the

company to achieve a huge database of clientele all across the world.

PRODUCT PORTFOLIO

The company is specialized in manufacturing, supplying and export of qualitative range of

Electrical Products that comprise Electrical Panels, H. T Transformers, Motor Starter Panels, Dry

Transformers, Automatic Power Factor Panels and Servo Voltage Controllers. Products of this

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company are known for nature, efficiency and reliability. These products are widely accepted

and appreciated all across the nature for their extraordinary performance.

Company uses only best grade raw material and advanced methods of engineering in the process

of making these products. The range of products is fabricated following international quality

standards to ensure the products will accomplish the need of the customers. It also customizes

the products as per the clients' requirement and offers them at market leading price.

The company has an efficient team of professionals who are immensely experienced in this

industry and are capable of manufacturing and delivering the consignments with optimum

excellence. The team comprises electronics engineers, technicians, machine operators, and

marketing executives after sales support executives and HR executives. All these people work in

close coordination among the team helps us to design innovative products and develop advanced

methods of production.

Also the employees stay close with the customers, which help the company understand their

requirements and offer the products accordingly. The company recognizes the efforts of every

individual and gives them ample opportunity to grow in the organization. The enormous efforts

of employees have helped the company to reach the new heights in this field.

GIST OF ARORA ELECTRICALS

Nature of Business Manufacturer and Supplier

Year of Establishment 2006

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Company Branches 04

No. of Employees 685

No. of Engineers 39

No. of Designers 45

No. of Production units 01

Monthly Production Capacity As Per Order/Requirement

Production Type Automatic & Semi-Automatic

Working As An Original Equipment Yes

Manufacturer

Warehousing Facility Yes

Bankers Punjab National Bank (PNB), Yes Bank &

ICICI Bank

Income Tax Registration No. AEZPA3046H

GST No. 09AEZPA3046H1ZA

TIN No. 09389003431

C.S.T. No. GB-5386887

Service Tax No. AEZPA3046HST001

HISTORY OF ORGANIZATION

Since 2006, roles of a manufacturer and supplier are being played by the company well. Quality

committed, the company never make any compromise in bringing forth best electrical items that

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are worth investing in. Company’s fine quality and durable range of electrical products is served

in all types of manufacturing industries, food processing & water treatment plant construction,

real estate, oil refineries & pump stations, are a few to name application areas.

Since the start of business, producing quality products is being the highest priority of the firm.

To achieve the aim of making customer's happy can be attained by offering them premium

goods. The company knows that quality manufacturing enables to win the faith of the customers

along with proving money worth investing. So, as a part of quality policy, company improves the

existing line and ensures production of innovation and cost-benefiting products.

Arora Electricals, a quality electrical items serving entity, is based in Ghaziabad, Uttar Pradesh

(India), for more than 13 years. So many years of experience in producing electrical products has

gained the power to innovate products for commercial and residential use. The electrical

products like Dry Type Transformer Distribution Panel, Motor Starter Panel, Lighting

Distribution Board, Distribution with Automatic Power Factor Panel and more, are durable and

performance-oriented. Systems and tools, which are modern in technology, are outfitted in the

setup of production, using which the company’s production experts present before customers, a

cost-effective electrical range. 

Arora Electrical's name of reliability and persistent

value of our products to our customers. Since 2006, the

knowledge and experience of our dedicated and

enthusiastic team. The challenges in terms of quality,

flexibility & cost efficiency. In turn he implies higher

thrust on asset planning, engineering and management

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with his admirable approach and countable contribution in his company's tour towards triumph.

He has been associated with Power Engineers & Consultants, LDH, BHEL and many more. The

company believes in adding latest global development in business strategies & technological

innovation for competitive manufacturing style.

ORGANIZATIONAL STRUCTURE OF ARORA ELECTRICALS

HUMAN RESOURCES DEPARTMENT

Creating a complement and healthy working environment, Arora Electricals values its Human

Assets and committed to their growth and prosperity. The success of any business organization

depends on the quality of its human resources i.e. their caliber and commitment. Arora

Electricals is committed to ensure that the Company is capable of continued growth and

profitability by satisfying customers' needs and to provide employees with high level of job

satisfaction. Consequently, Company's personnel initiatives are designed to encourage open

communication, creativity, innovation and initiative. Because the Company believes well trained

and proactive employees with high level of job satisfaction will ultimately contribute to the

increase in profitability of the Company.

Major functions of this department are:

a) Recruiting, transferring, promoting and terminating of employee.

b) Arranging training both in-house and outside.

c) Personnel policy evaluation and implementation.

d) Maintaining protocol, counseling and discipline of organization.

e) Legal aspects.

f) Recording employee’s salary, leave administration and annual performance evaluation.

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 g) Ensuring the departmental policies is competitive within the Company

h) HR planning and budgeting

i) Handling employee disciplinary actions and or separations i.e. termination,

Discharge, dismissals and voluntary separations

j) Managing Performances and ensuring evaluation of all employees

k) Handling grievances of employees

l) Check & calculate Allowances for applicable cases to include in monthly Payroll.

MARKETING DEPARTMENT

Arora Electricals has a unique retail network. Its products are sold more than 230 outlets across

the country. Arora Electricals is the only company in the country with such an extensive retail

network. Marketing Director is assisted by Sales Managers. That is for Retail part. Also reported

be Deputy Manager, who is assigned for Distribution part and Assistant Manager, who is

assigned for Education part. All other employee works for this department and all time get

connected.

FINANCE DEPARTMENT

This division is responsible for ensuring optimum and most efficient uses of the company's

resources various controlling and monitoring activities. It is headed by the controller and

Director and consists of the Audit, corporate Affairs, credit, commercial, MIS and Accounts. The

following is the organization chart of the department:

Controller & Finance Director

Finance Commercial MIS Credit

& & Logistics
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Accounts
1. Finance & Accounts: In the finance & accounts department they are responsible for control

cash flows operation. They are responsible for makes sure that, the operation running smoothly.

Their general activities are describing below:

Accounts division creates and maintains records of company transactions for both internal and

external audiences. The Accounts unit may be considered a department by itself, for it has the

following functional units - Sales Accounts, Costing & Inventory, Payables, Cash Management,

and General Ledger.

The company accounts represent the financial statements. The investment in associate companies

was accounted under the cost method. The carrying value of associate company investments is

shown at cost and only dividend income received from associate companies is recognized as

income.

2. Commercial & logistics:

In the commercial & logistics department they are responsible for control all import transactions

and opening of L/C operation. They are responsible for makes sure that, the operation running

smoothly. Their general activities are describing below:

a) Requisition for order

b) Purchase of product

c) L/C Opening

d) Select L/C opening Bank

e) Insurance

f) Vat

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 g) Warehouse

3. MIS Department

Management Information System (MIS) section presents ERP (Enterprise Resources Planning)

for less time consume. ERP is a new division which deals with computerized financial data

transaction within the organization. And shortly MIS will bring online record transaction.

Enterprise Resource Planning software systems (ERP) encompass a wide range of software

products supporting day-to-day business operations and decision making. ERP serves many

industries and numerous functional areas in an integrated fashion attempting to automate

operations from supply chain management, inventory control, manufacturing scheduling and

production, sales support, customer relationship management, financial and cost accounting,

human resources and almost all other data-oriented management process. ERP systems have

become increasingly prevalent over the last 10 years throughout the world. By the year 2000,

ERP systems have been implemented in over 60% of multi-national firms.

Proprietor: Sanjeev Arora

Director: Late Rajeev Arora

Department wise Employees Strength for May 10

Marketing & Credit & Accounts Collections Admin, Total

Insurance Operations & Finance & Legal HR & IT Strength

356 113 83 69 52 673

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FINANCIAL PROFILE OF THE COMPANY
Figures in Crores
Particulars 2018- 2017- 2016- 2015-
2019 2018 2017 2016
Income from operations 54.27 22.53 12.88 6.50
Profit before tax 18.16 7.74 4.19 1.53
Profit after tax 11.85 5.18 2.58 0.99
Net worth 115.55 40.37 24.75 2.83
Loan Funds 108.06 60.11 2.01 0.34
Capital Adequacy Ratio 31.20% 19.00% 11.14% 6.53%
CAR 66.18% 80.18% 142.03% 217.85%

ANALYSIS AND INTERPRETATION

Balance Sheet
Assets 31st march 31st march Increase/Decreas Increase/Decrease
2018 2019 e (Percentage)
(Rs)
Current Assets
Debtor Less than 6 201.03 131.81 (69.23) (34.44)
months

Debtors More than 6 45.44 6.00 (39.44) (86.80)

months
Loans & Advances 4000.03 15144.80 11144.76 278.62

Accrued Interest on 31.62 113.10 81.48 257.71

Loans

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Trade Advances 450.88 566.53 115.65 25.65

Term Deposits 1850.69 4201.33 2350.63 127.01

Cash and other bank 3745.05 2845.12 (899.93) (24.03)

balances
Advances recoverable 38.83 337.53 298.71 769.33
in cash/kind
Other current assets 51.86 102.08 50.22 96.83

Current Assets Total 10415.43 23448.29 13032.86 125.13

Fixed Assets

Own Assets 191.32 764.46 573.14 299.57

Depreciation 89.44 112.04 22.60 25.27

Net block= own assets-depreciation

Net block 101.88 652.42 550.54 540.38

Investments 317.69 342.37 24.68 7.77
Net block+ 419.57 994.79 575.22 548.1
Investments
Total Assets= Total current assets+ Total fixed assets

Total Assets 10835.00 24443.08 13608.08 125.59

Current Liabilities

Sundry Creditors 114.37 211.56 97.19 84.98

Other current 375.82 612.75 236.93 63.04

liabilities/provisions
EMI payable against 182.77 1001.67 818.90 448.05
securitization
Provisions 151.16 339.67 188.51 124.71

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Provisions for NPA 44.92 41.02 (3.91) (8.70)
Provisions for 52.50 183.34 130.84 249.23
estimated loss for
securitization
Other provisions 53.74 115.31 61.57 114.58

Income Statement
Expenditure 31st march 31st march Increase/Decrease Increase/Decrease
2018 2019 (Rs) (Percentage)
Sales and staff 451.38 803.18 351.80 77.94
expenses
Admn. And misc. 681.18 1498.53 817.34 119.99
expenses (incl. raw
material)
Operating Expenses 1132.56 2301.71 1169.15 103.23
Provisions for NPAs 1.37 (3.91) (5.28) (385.53)
Provisions for credit 52.50 130.84 78.34 149.23
loss
Provisions for 8.21 (5.21) (13.41) (163.44)
overdue debtors
Loan Written Off 39.40 66.68 27.28 69.23
Debtors off - 52.27 52.27 5227
Total Provision/ 101.47 240.67 139.20 137.18
Write offs
Total Expenditure= Operating Expenses + Total Provision/ Write offs
Total Expenditure 1234.03 2542.38 1308.35 106.02
Income
Interest on own 546.82 1556.14 1009.32 184.6
books
Income under 912.67 972.86 60.19 6.595
channel Business
Income from 537.84 2082.89 1545.05 287.3
securitization
Interest on FDR 105.59 191.84 86.25 81.68

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Income from 2102.92 4803.73 2700.81 128.4
operations
Other Income 181.54 623.26 441.72 243.3
Total Income 2284.46 5426.99 3142.53 137.6
PBIDT = Total Income - Total Expenditure
PBIDT 1050.43 2884.61 1834.18 174.61
Less: Depreciation 30.53 45.81 15.28 50.04
and Impairment of
Fixed assets
PBIT 1019.90 2838.80 1818.90 178.34
Less: Interest 185.10 914.06 728.95 393.81
Less: Prior period (2.15) 0.40 2.55 (118.60)
adjustment
Less: Misc. expn. 12.75 - (12.75) (100.00)
Written off
PBT 824.19 1924.35 1100.15 133.48
Less: Tax 258.66 631.22 372.56 144.03
PAT 565.53 1293.12 727.59 128.66
Total Expenses= Total Income - Profit After Tax (PAT)
Total Exp. 1718.93 4133.87 2414.94 140.49
Add: Depreciation 30.53 45.81 15.28 50.04
Gross cash accruals = Profit After Tax + Depreciation
Gross cash accruals 608.82 1338.93 730.12 119.92
Net cash accruals 608.82 1338.93 730.12 119.92
Net cash accruals/ 26.65 24.67 (1.98) (7.42)
Total Income (%)

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PRODUCTS/SERVICES

1. Electroplating Rectifier - DC Rectifier

An ambit of Electroplating Rectifier - DC Rectifiers are offered by the company to

esteemed customers. These have output frequency of 50 hertz, an input voltage of 415

volt and provide output voltage varying from 0 to 500 volts. The rectifiers are used for

converting the alternative current supply to direct current supply. These offer excellent

functioning by consuming less power. These are utilized for catering the needs of various

processes such as anodizing, electroplating, and electrochemical and others.

The Electroplating Rectifier - DC Rectifier provides good insulation and trouble free

functioning for a long lasting time span. These have a robust structure and high tensile

strength. The rectifiers are properly packed in plastic wraps to ensure their damage free

delivery to clients.

Product Type: Electro Plating Rectifiers, Other

Input Voltage: 415 Volt (V)

Output Frequency: 50 Hertz (HZ)

Output Voltage: 0-500 Volt (V)

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 Product Type: Electroplating Rectifiers

Input Voltage: 415 Volt (V)

Output Frequency: 50 Hertz (HZ)

Output Current: DC Watt (w)

Supply Ability: As per the order Per Day

2. Servo Voltage Stabilizer

Servo voltage stabilizer is a closed loop control

mechanism which serves to maintain balanced 3 or

single phase voltage output in spite of fluctuations

at the input owing to unbalanced conditions.

 O u t p u t V o

 P r o d u c t T y

 I n p u t V o l t

 P h a s e :

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3. Earthing Electrodes

The Earthing Electrodes are corrosion resistant and can withstand physical impact without any

damage to their surface. These are available with the company in different kinds, so customers

can access them to meet their exact requirements. The electrodes allow the fault current to flow

to the earth. These are extremely trust worthy.

3 (a) Earthing Electrode with Bags

Since inception, the company has committed

themselves to provide maximum satisfaction

to their clients by offering them with the

most innovative range of Earthing Electrode

with Bags. These electrodes are used to

reduce soil resistivity locally and to improve

the resistance of grounding systems. Made

with accuracy and precision, this Earthing

Electrode with Bags makes sure complete

safety to machines and human life.

Company’s electrodes find application in

industries where the high performance ear thing is required and that prevent destruction to main

earth electrode in the soil. 

3 (b) Gel Earthing Electrodes

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We are one of the renowned manufacturer and suppliers

of  Gel Earthing Electrodes that are fabricated as per

international quality standards. We also ensure that

customization is done as per the specification and

requirements of our customers. Gel Earthing

Electrodes offered by us is used for serving various

industrial applications in ear thing systems that offers

a complete solution to their ground requirements. These electrodes are known for its low

resistance value for long period of time with negligible fluctuations.

3 (c) Copper Chemical Earthing Rods

Copper Chemical Earthing Rods is perfectly

suitable for the industries where high performance

earthing is needed for preventing destruction to

key earth electrode in the soil. This type of

electrode ensures the total safety to the human life

and machines. The Copper Chemical Earthing

Rods is available in different types and

specifications.

4. Oil Circuit Breaker

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 These are utilized for arc extinction owing to their

insulating and dielectric property. The breakers

consist of contacts that open under an insulating

oil at the time of occurring of fault and an arc is

created between them and its heat is evaporated in

the surrounding oil. Apart from contacts, these

also consist metal tanks which are filled with oil

and then air is filled on the top of the tank in order

to control the displaced oil as well as for

absorbing the mechanical shock of the upward

movement of oil.

4. Control Panel Boards

Having rated voltage of 415 volts and

frequency of 50 Hertz, our Control Panel

Boards are utilized in mechanical systems for

supplying electrical power to diverse systems.

These offer an easier operation as well as

handling. The panels help in an effective

control of sequence of events. Along with

offering a protective fuse for each circuit in a

common enclosure, these also aid in division of electrical power feed into subsidiary circuits.

These are simple to understand and offer safe functioning for much number of years.

The Control Panel Boards have operating devices mounted on their doors that give them efficient

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 handling advantage. These are manufactured from supreme standard mild steel, stainless steel,

silicone and other materials that provide good resistance to corrosion.

5. Automatic Voltage Controller

Output Voltage: 400 Volt (V)

 P r o d u c t T

 F r e q u e n c

 I n p u t V o l

 P h a s e :

6. Transformers

Made from high grade quality iron, steel,

silicone and other materials, our wide range

of Transformers are utilized for increasing

as well as decreasing currents and voltages

in electrical circuits. These aids in

converting alternate current power into

direct current power. The devices are

installed in electrical distribution systems

for controlling the flow of voltage during

transmission. These are specifically

structured to fulfill the different energy, frequency and voltage level requirements of various

systems. The Transformers consume less energy and are environment friendly. Some of them are

available with On Load Tap Changer (OLTC) that helps in changing the voltage level according

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to the change in load. These have function ability of numerous years and that too without any

damage.

7. Electrical Panel Busbar

By manufacturing and supplying Electrical Panel Bush Bars, the company has gained a

prominent place in the market. The power from the incoming feeders is collected by these bush

bars and then the same is distributed to the outgoing feeders. These are widely utilized in power

systems and ensure their effective functioning.

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PROBLEMS ENCOUNTERED

The problems faced during the internship period ranged from social, academic, technical and

environmental. This section will be divided considering two of these problems- social and

technical problems encountered by me.

SOCIAL:

a. Most of the workers considered me as mere students and therefore could not easily

integrate me in their milieu. This made the environment a little tensed for me, and

affected my concentration and focus.

b. Still concerning social problems, I always felt as if I was not doing the right thing as the

hierarchy as hardly there to do a one-to-one appraisal of my work.

TECHNICAL:

a. It was very difficult for me to understand the use of two software applications WAVE

and KASHOO. This made the learning process more difficult for me. The main cause of

this was insufficient time to focus on a particular service and its activities.

b. While time was more than enough in services that did not have much to offer during the

period, time was very much insufficient for some services, thereby making us to always

close later, sometimes as late as 5 or 6pm.

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SWOT ANALYSIS

Strength:

a. Reaching the product to remote places: it is really convenient to reach consumers of

remote areas of the country through dealers.

b. Flexibility: as per the requirement or the situation of the business in certain areas.

c. It has a manufacturing department where produced different types of product.

d. 171 wholesale dealers over the Bangladesh.

e. Employees feel more job security.

f. Strong local presence

g. Favorable brand image

h. Comprehensive knowledge of the total market and client

i. Good quality and top quality of products with solution

j. Using advance high-tech technology

k. Because of long term experience, customers reliability and loyalty Efficient after sales

service.

Weaknesses:

a. Great number of dealers may cause problems in cost minimization.

b. Another problem is that with the increase in number of the dealers, increase in the

number of after sales service which is called Inter Service system is reflected. It may not

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 be possible to give proper service in the remote areas. And as a result it may hamper the

goodwill.

c. For the leakage of few employments in the credit department, each employee has taken

more pressure. For that reasons it is possible to make mistake at the time of data

inputting.

d. Enterprise Resources Planning (ERP) is very important software for day to day business

operation. But till now it is not running.

e. Lack of brand awareness

f. Higher tax on home appliances ness

g. Lack of consistency in promotional activities

h. Less competitive price; competitor sourcing product at cheaper price

i. Less organized distribution

j. Less compliance to market demand

Opportunities:

a. Campaigning: It is easier to start a campaign from a dealer point. Many other times a

dealer informs us about a local occasion in that place in which business advantage can be

taken of and operates a campaign from that point of dealer.

b. Switching Customer In: With proper strategy dealers can be motivated to convert

consumers of other products into users of our products.

c. Visibility: Dealers are a point to increase the visibility of the product by properly placing

product in the shelf of the dealers.

d. It has a congenial environment facility for all of the jobholders performing their task with

more efficiently.

26
 e. Always making a combination of flows of the information, goods and funds.

f. Air-conditioned office rooms.

g. There is a brotherhood relationship from top to bottom, due to this one of the employees

can easily feel lower risk free job situation than any other organization, for this reasons

the employees also try to perform their responsibility with more accurately and

intimately.

h. The market position of the company is very good because its financial strength is good

and growth rate also increasing up day by day.

i. Exclusive Gratuity and Bonus Facility.

j. There is a system of incentives for the sales executive based on fulfilling the target as a

sales promotion and also for the credit executives based on the credit collecting of their

credit limit.

k. Product sales by credit system.

Threat:

a. One of the threats from the dealer is that they sometimes do not use the warranty card in

the systematic order.

b. They do not fill up the warranty card at the time of sale and manipulate it to fill up later

on which increases the chances of our increase in cos

c. Other competitive worldwide company whose have similar product & services.

d. Perception of future demand of the customer.

e. Foreign currency fluctuation and devaluation of the local currency.

f. Higher tax on Export and Import of Machinery or even in manufacturing.

g. Competitor sourcing product at a cheaper price.

27
 PART- II

TOPICS TO LEARN

The activities carried out during the internship varied from service to service, although there was

repetition in some services. The reason why we had to move from service to service during the

period was to better train us on the complete functioning of the treasury. The work done ranged

from paper work to computer work. To better outline the types of activities performed during this

period, the activities have been presented according to services as follows:

1. Cash and Accounts Service

In this service, the main activity carried out was sorting. Sorting is an accounting

technique used in the classification of accounts. Because there are many sources of

revenue and various types of expenditure, the accounts must be grouped by nature and by

class in order to facilitate the accounting procedure. For example, grouping salary

vouchers together, running credits, investment credits and other personnel expenditures,

for expenditure accounts and other credits, transfer credits a state budgetary revenues for

income.

2. Expenditure and Recovery Service

As the expenditure service, we were mostly concerned with registration of documents in

the register to be transmitted to the accounts service for further treatment. We also

verified all the documents that are imported from the Regional Control of Finance to see

whether the information on the documents was correct.

3. The Service of Values, Deposits and Consignments

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 Since, this is a service that deals with deposits and consignments; we were more

concerned with preparing cheques for the payment of the service heads of the

administrative public establishments with the accounts with the treasury. While the

reimbursement slips were being prepared sundry deposits like the Arora Electricals,

Ghaziabad etc., cheques were being prepared for delegations such as public health,

primary and secondary education. All the documents after preparation were being

registered before transmitting the Senior Accountant for signature.

4. The Audit and Control System

In this service, we were only drilled on how carryout control of services and how to

prepare a report of any audit carried out.

5. The SCTIC Service

The SCTIC service is that service that is in charge of computerization of accounts. In this

service, we were taught how to impute information in to a computer using various

account heads. In this service, much of the work is computer work because it is the heart

of the treasury. Any information that passes through the treasury must be recorded or

computerized in this service.

6. The Management Accounts Service

This is the service that does final classification of accounts before sending them to the

Audit Bench. Work here is done manually. It prepares the management accounts for the

regional treasury and for the attached treasury stations. Here, the sorting technique is

repeated in order to classify accounts in a manner that can make it easier for anyone who

uses them.

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 7. The General Affair Bureau

There are different ways of recording different types of documents. We used to register

the documents that were coming in the mails. This is the office that receives most of the

documents entering the treasury-we used to register all documents before being

distributed to the various destinations.

8. General Ledger, Accounting Activities were also maintained and recorded.

OBJECTIVES OF THE INTERNSHIP

The Objectives of this Internship Training are as follows-

a. To acquire or improve on our knowledge and skills in business administration relevant to

private and public sectors as well as NGOs.

b. To adapt to the pressures posed by the working environments by taking into

consideration the fact that the dynamism of the world today requires dynamic persons to

cope with.

c. To be able to identify some of the setbacks of the treasury as to attaining particular goals

and objectives of the country.

d. To use the knowledge acquired to set up and manage one’s own business or organization.

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METHODOLOGY OF THE INTERNSHIP

The internship was carried out at the Arora Electricals office for a period of two months starting

from 26th June to 10th August. The work usually used to start at 8am and ends at 5pm from

Monday to Friday.

Every day, attendance is taken on arrival and before departure, taking into consideration the

arrival and departure times. The Arora Electrical's Treasury has seven services being Cash and

Accounts, Audit, Expenditure, SCTIC, Values, Deposit and Consignments, Management

Account and the Computer or Technical Services. I had to go through all these services during

the two months period of internship. Two weeks were spent at each service except for the

Technical Service.

I was graded at the various services by the senior accountant and the scores forwarded to the

Manager, who is in charge of personnel for final grading. This was to make sure that we were

constantly under control and taking on the various tasks assigned to us. No absenteeism from

work with any proper justification was authorized.

The data for this industrial training was got from both primary sources (lectures,

Personal observation and interviews), and secondary sources (documented material from the

Arora Electricals).

EXPERIENCE GAINED DURING THE INTERNSHIP PERIOD

The Treasury Department occupies a central role in the finances of the state. It takes

responsibility of the liquidity of the state – ensures that the state has enough cash available at all

times to meet the primary needs of its treasury operations. It is the department that manages state

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funds. It is a complex network of activities and extends from the Central and national level to the

Divisional and Sub-Divisional levels. It is an important department of the state. All the regional,

divisional and sub – divisional treasuries in the organization function in a similar way because

their functions are defined at the national level.

Working as an intern for these three months was an eye opener, and how different departments at

every stage can influence the treasury in one way or the other.

THE LEVEL OF RESPONSIBILITY

The treasury department is legally responsible for the collection of state revenues. It has been

granted the total monopoly as shown by the following decrees below. This is an experience that I

got only during the internship period when gathering information for this work. It was realized

that there are legal provisions granting the treasury that monopoly power.

Decree No.2005/119 of 15 August 2005 on the Organization of the Ministry of

Economy and Finance creates a Directorate General of the Treasury which the State intends to

play its role in the development and implementation of financial, monetary policy, accounting

and cash management. Indeed, the former Directorate of the Treasury became a Directorate-

General now Directorate of the Treasury and the Directorate of Financial and Monetary

Cooperation and the evolution insurances.

Decree No. 2008/365 of 8 November 2008, organizing the Ministry of Finance,

Monitoring operations of revenue collectors formerly under the Directorate General of the

Budget has been transferred to the Directorate General of Treasury, Financial and Monetary

Cooperation. The delicate task which was partially followed by the treasury department through

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recovery needs a perfect mastery of the legal framework governing their activities so as to

guarantee good accounting follow-up of all transactions.

Law No. 2007/006 of 26 December 2007 on the Financial Regime of the State. The financial

regime devotes the monopoly of the treasury department on the recovery of all revenue, payment

of expenses and the entire treasury of the state, local councils and other legal persons of public

law. In practice, to facilitate the implementation of the budget, the Minister of Finance creates

boards in some administrations to ensure the collection of certain revenues and finish the

payment of some of certain categories of expenses.

General Instruction on State Accounts of May 29, 2009. This instruction takes up all of the

provisions relating to each revenue collection as provided by the Circular on the implementation

and monitoring the implementation of the State Budget.

SKILLS GAINED FROM THE INTERNSHIP

As far as the internship is concerned I have gained following experiences;

- Classifying accounting documents by nature, type and by class generally referred to as sorting

- I can confidently use the software applications of the treasury for data imputation and data

analysis

- I can now also post information in the daily journal (expenditure day book), the

Adjustment journal and the treasury receipt booklet (the quittancier)

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UNDERSTANDING OF THE VARIOUS ASPECTS OF

PROFESSIONAL WORK

Professional experience at workplace differs from one work type to another. The type of services

offered also differs from one workplace to another. The treasury functions in various ways

depending on the services it offers.

As a Finance department, its role is about managing the income and expenditures of the state.

This involves making sure that the treasury has the capital it needs to manage the day-to-day

expenditures of the state, while helping develop its long term financial strategy and policies.

Therefore, understanding various aspects of professionalism at work at the regional

Treasury entails understanding the functioning of the various services that make up the regional

treasury.

a. As a student on internship, I learnt the ethics of professionalism. That is working within

the binding rules and regulations – not discussing treasury issues out of the treasury.

b. I also learnt of the various quality services that the treasury offers with real usefulness

like providing windscreen licenses to automobile owners.

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CONCLUSION

Internship to every student is a necessity irrespective of the level or type. In review this

internship has been an excellent and rewarding experience. I have been able to interact with

many people.

For the MBA Programme, internship is mandatory because of the nature of the

programme. Anyone who fails to carry out an internship as a partial fulfillment for this

programme is going to miss out on so many things because theory alone cannot bring solutions

to the many challenging problems that can be encountered in the field. One main thing that I

have learned through this internship is time management skills as well as self-motivation.

At first the internship seemed boring especially when I did not really understand what to do but

as I gradually progressed, it became so interesting though challenging.

When I first started I did not think that I was going to be able to make myself sit in an office for

eight hours a day, five days a week. I learned that I needed to be organized and have questions

ready for when it was the correct time to get feedback. From this internship and time

management I had to learn how to motivate myself through being in the office for so many

hours.

The internship is a key element in the technical writing student's professional

Preparation and the internship report is a key element in the internship experience.

In summary, the activities that I had learned during industrial training really are useful for me in

future to face challenges in a working environment. Throughout the industrial training, I found

that several things are important:

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Critical and Analytical Thinking: To organize our tasks and assignment, we need to analyze our

problems and assignment, and to formulate a good solution to the problem. We would have to set

contingency plan for the solution, so that we are well prepared for the unforeseeable situations.

Time Management: As a worker with the treasury, a proper time management is a

Major asset if good results are to be attained. An effective time management allows us to do our

assignment efficiently and meet our schedules. I learnt that scheduling avoids time wastage and

allows us to plan ahead and gaining more as a result.

Colleague Interactions: In working environment, teamwork is vital in contributing to a strong

organization. Teamwork is also essential in reaching the goals of the organization as an entity.

Thus, communicating and sharing is much needed in the working environment. Therefore, we

should respect each other in work, and work together as a team.

I would like to once again appreciate everyone who has made my industrial training a superb

experience.

ANNEXURE

Bibliography-

About the organization: https://aroratransformers.tradeindia.com/

Product and Services: https://aroratransformers.tradeindia.com/products.html

Organizational Structure: Supervisor and Senior Accountant of Arora Electricals

Performance: Chartered accountant

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