PROJECT REPORT

INTERNSHIP

AT

“G R Kumar & Co LLP”

CHARTERED ACCOUNTANTS

9, Merry life Apartment

Pedawaltair
Visakhapatnam- 5300002.

submitted to the GITAM INSTITUTE OF MANAGEMENT (GITAM -

Deemed to be University) in partial fulfilment of the requirements for the

award of the Bachelors of Commerce (Hons.)

Submitted by

KRISHNA VAMSI KONDU

Regd No. : 1214316131
Batch No. : 2016-2019
Under the supervision and guidance of

Dr. N LALITHA

Assistant Professor

Department of FINANCE
GITAM INSTITUTE of MANAGEMENT

MARCH 2019
 DECLARATION
I, P. KRISHNA VAMSI KONDU hereby declare that this project report titled
“AUDIT INTERNSHIP” is a bona-fide project work carried out by me under the
supervision of Dr. KASTHURI, Department of Finance, GITAM Institute of
Management, in partial fulfilment of the requirements for the award of Bachelor’s
Degree of Commerce (Hons) in GITAM (Deemed to be University).

I also declare that this project report has not been submitted earlier anywhere for
the award of any degree, diploma or other similar title.

Place : Visakhapatnam

Date

Signature :

Name : KRISHNA VAMSI KONDU

Regd.No : 1214316117
 GITAM INSTITUTE OF

MANAGEMENT

DEPARTMENT OF FINANCE
CERTIFICATE
Certify that the Project report titled ‘AUDIT INTERNSHIP’ submitted by KRISHNA VAMSI
KONDU is a bona-fide work carried out by him in partial fulfilment of the requirements for the
award of Bachelor’s Degree of Commerce (Hons) at GITAM Institute of Management, GITAM
(Deemed to be University) during the academic year 2018-2019, for a period of 12 weeks in
December - 2018, January - 2019 and February – 2019.

Place : Visakhapatnam Date

Signature:

Name and Designation of Faculty Guide:

 ACKNOWLEDGEMENT
Every study is to learn more. But there cannot be any action yielding results without the help of
others. Thus, I take this opportunity to express my sincere gratitude to all those whose contribution
can never be forgotten in the successful completion of the project.

I convey my sincere and profound gratitude to the Partners, Consultants and Professional Staff
members of G R Kumar & Co LLP.

I am extremely grateful to my guide, Dr. KASTHURI, professor of Department of FINANCE,

GITAM Institute of Management for the valuable guidance, expert advice, supervision and
encouragement which enabled me to complete this project.

I would like to thank all those people who co-operated with me in doing this study by giving their
valuable suggestions and information.

I would like to convey my sincere thanks to my family and my friends for all their help, support and
encouragement.

Place : Visakhapatnam Date

Signature :

Name : KRISHNA VAMSI KONDU

Regd. No. : 1214316117

 TABLE OF CONTENTS

Chapter No. Particulars Pageno.

1 Introduction

2 About the firm

3 About the industry

4 Conceptual Framework

5 Work done

6 Observations

7 Learning Objectives/ Outcomes

8 Executive summary

9 Reference
 INTRODUCTION
AUDITING

An audit is a systematic and independent examination of Books, Accounts,

Statutory records, Documents and Vouchers of an organization to ascertain how
far the financial statements including the financial and non-financial
disclosures; present a true and fair view of the concern. It also attempts to
ensure that the books of accounts are properly maintained by the concern as
required by law. Auditing has become such a ubiquitous phenomenon in the
corporate and the public sector that academics started identifying an "Audit
Society". The auditor perceives and recognizes the propositions before them for
examination, obtains evidence, evaluates the same and formulates an opinion on
the basis of his judgement which is communicated through their audit report.

ACCOUNTING

Accounting or Accountancy is the measurement, processing, and communication

of financial information about economic entities such as businesses and
corporations. Accounting, which has been called the "Language of Business",
measures the results of an organization's economic activities and conveys this
information to a variety of users, including investors, creditors, management, and
regulators.

Accounting can be divided into several fields including Financial, Management,

Tax and Cost Accounting. Accounting information systems are designed to support
accounting functions and related activities. Financial accounting focuses on the
reporting of an organization's financial information, including the preparation of
financial statements, to the external users of the information, such as investors,
regulators and suppliers; whereas Management Accounting focuses on the
measurement, analysis and reporting of information for internal use by
management. The process of recording of financial transactions, that enable the
preparation of financial statements, is known as bookkeeping, of which double-
entry bookkeeping is the most common system.
 DIRECT & INDIRECTTAXATION
A direct tax is an incidence of tax, the burden of which is borne by the person /
entity on which it is imposed. The burden cannot be shifted to any other person.
Example of direct tax includes Income Tax, Real Property Tax, Personal
Property Tax, or Tax on assets.

Indirect Tax is a tax levied by the Government on goods and services and not on the
income, profit or revenue of the tax payers. Hence, the burden of it can be shifted from
one taxpayer to another. It is based on the principle of “Canon of Convenience”.
Earlier, an indirect tax meant paying more than the actual price of a product bought
or a service acquired. And there was a myriad of indirect taxes imposed
ontaxpayers.
A few indirect taxes that were earlier imposed in India and most of which are
now subsumed into GST include the following:

Customs Duty- It is an Import duty levied on goods coming from outside the
country, ultimately paid for by consumers and retailers in India.

Central Excise Duty– This tax was payable by the manufacturers who would
then shift the tax burden to retailers and wholesalers.

Service Tax– It was imposed on the gross or aggregate amount charged by

the service provider on the recipient.

Sales Tax– This tax was paid by the retailer, who would then shifts the tax
burden to customers by charging sales tax on goods and service.

Value Added Tax (VAT) – It was collected on the value of goods or services
that were added at each stage of their manufacture or distribution and then finally
passed on to the customer.
 GST as Indirect Tax Goods and Service Tax (GST) is all set to be a game
changer for the Indian economy. The tax is expected to reduce the cascading effect
of tax viz., a concept of ‘tax on tax’, increase the gross domestic product of the
economy, and reduce prices. In India, there are different indirect taxes applied on
goods and services by central and state governments. GST is intended to combine
most of the taxes into one tax with seamless Input Tax Credit and charged on both
goods and services. For the introduction of GST, the government needs to get
Constitution amendment Bill passed, so that the proposed objective of subsuming
most of the indirect taxes and allowing states to tax subjects in Union List and vice
versa is achieved. Without these powers, it is not legally possible to move towards
GST.
 G R Kumar & Co LLP

M/s G R Kumar & Co. LLP (GRK) is a firm of Chartered Accountants with about
34 years professional standing, was established in 1985. It is enlisted as a
Category-I CA Firm with ICAI / CAG / RBI for empanelment with PSUs / Banks
for statutory audits. It was evolved as a result of merger of several practices some
of which have been in operation since 1977 and such merger was necessitated so as
to enhance the efficiency, effectiveness and quality of services rendered to our
clients. Partners and staff are able to draw upon a pool of resources and expertise to
meet our clients’ needs in the complex and demanding business environment. The
Firm has its headquarters located at Visakhapatnam and branches at Hyderabad,
Mumbai & Chennai. The Firm is managed by 7 Partners and supported by 9
Consultants and about 45 operational staff. While all partners are Chartered
Accountants (of which some with additional qualifications like DISA, DIRM,
CMA), other consultants are CA/CMA/CS and with specific domain expertise.

GRK has a networking arrangement with other professionals in places where it

does not have its own offices. GRK offices are centrally located at each place
and are functioning with state- of-the-art equipment and well-equipped library.
Presently, GRK has more than 800 corporate clients across a cross section of
manufacturing / service / trading sectors, in addition to personal/non-corporate
clients. GRK clients include owner- managed and family businesses,
professionally-managed corporate entities, SMEs, public and private sector
organizations and high net worth individuals.

GRK experience in client service has shown that the optimum mix of skills,
knowledge and experience is essential for success and growth. We pursue a strong
service ethic, which includes:
 Personal involvement of Partner / Consultant in client matters on a one-
to-one basis.

Use of leading technology in communication, computer hardware and

software.

Commitment to quality through GRK’s quality review program and systems.

Maintenance of strong team alliance to specific clients year after year.

On-going training and development programs for staff at all levels.

Commitment to retention of quality staff. Strong

internal procedures and systems.
 CONCEPTUAL FRAMEWORK

Financial auditing is the process of examining an organization's financial records to

determine if they are accurate and in accordance with any applicable rules
(including accepted accounting standards), regulations, and laws.
External auditors who are independent of the organization; examine accounting and
financial records and provide an independent opinion on these records. Law
requires that all public companies have their financial statements externally
audited.
Internal auditors work for the organization as internal employees to examine
records and help improve internal processes such as operations, internal controls,
risk management, and governance. Of late, the internal audit function is outsourced
to the professional entities as part of strategic decision to reap the benefit of
professional expertise.
The Comptroller and Auditor General (CAG) of India is an authority, established
by the Constitution under Constitution of India / Part V Chapter-V / Sub-part 7B /
Article 148 who audits all receipts and expenditure, of the Government of India
and the state governments, including those of bodies and authorities substantially
financed by the government. The CAG is also the external auditor of Government-
owned corporations and conducts supplementary audit of government companies,
i.e., any non-banking/ non-insurance company in which Union Government has an
equity share of at least 51 per cent or subsidiary companies of existing government
companies. The reports of the CAG are taken into consideration by the Public
Accounts Committees (PACs) and Committees on Public Undertakings (COPUs),
which are special committees in the Parliament of India and the state legislatures.
The CAG is also the head of the Indian Audit and Accounts Department, the affairs
of which are managed by officers of Indian Audit and Accounts Service, and has
over 58,000 employees across the country.
 RULES OFACCOUNTING

Tax Year:
The fiscal year begins on 1 April and ends on the 31 March of the followingyear.

Accounting Standards:
Accounting standards issued by the Institute of Chartered Accountants of India
(ICAI), which largely are based substantially and converged with IFRS
standards, apply. Financial statements must be prepared annually, in accordance
with the accounting standards prescribed under the Companies Act. There are
nuanced differences between these accounting standards and IFRS.

India has committed to converge its accounting standards with IFRS (subject to a
few carve-outs); these standards are called the Indian Accounting Standards or the
Indian AS. For accounting periods commencing on or after 1 April 2016, these
standards are mandatory for listed and unlisted companies meeting certain net
worth thresholds Rs.500 Crores and Rs.250 Crores for phased implementation of
IndianAS.

Accounting Regulation Bodies:

Institute of Chartered Accounts of India

Accounting Reports:
'Balance Sheet' and 'Profit & Loss' report.
Companies are required to prepare their financial statements each year, as per the
provisions of the Companies Act, and to have them audited by a practicing
chartered accountant or a firm of chartered accountants registered with the ICAI.
The audited financial statements must be approved by the members in an annual
general meeting. All companies are required to file their audited financial
statements with the ROC after they have been approved
by the members.

Publication Requirements:
The "balance sheet" and ‘profit and loss account' need to be published every
fiscal year.

Professional Accountancy Bodies:

ICAI, Institute of Chartered Accountants of India ICAI, Institute of Cost Accountants
of India

Certification and Auditing:

Companies have to seek a statutory auditor to conduct an annual audit of the
financial health of their organization. Auditing and Accounting Standards issued by
The Institute of Chartered Accountants of India (ICAI) have to be mandatorily
adhered to by the professional auditors who are subject to professional discipline
and code of conduct.
 WORK DONE

Week Description

1 Learning Skills – Auditing and Accounting

2 Field visit of Coromandel Fertilizers Ltd

3 Learning Skills – MS Excel and PPT

Field visit of Visakha Container Terminal Private Ltd

4

5 Field visit of Hindustan Shipyard Ltd

6 Learning Skills –GST(BASICS)

Learning Skills – Inventory Accounting and Control

7

8 Field visit of Hindustan Shipyard Ltd

9 Learning Skills – Accounting Standards

10 Learning Skills – MS Excel

 Field visit of Coromandel Fertilizers Ltd

Coromandel International Limited, India’s second largest Phosphatic

fertilizer player, is in the business segments of Fertilizers, Specialty
Nutrients, Crop Protection and Retail. The Company manufactures a
wide range of fertilizers and markets around 4.5 million tons making it
a leader in its addressable markets.

In its endeavor to be a complete plant nutrition solutions Company,

Coromandel has also introduced a range of Specialty Nutrient
products including Organic Fertilizers. The Crop Protection business
produces insecticides, fungicides and herbicides and markets these
products in India and across the globe. Coromandel is the second
largest manufacturer of Malathion and only the second manufacturer
of Phenthoate. Coromandel has also ventured into the retail business
setting up around 800 rural retail centers in the States of Andhra
Pradesh, Telangana, Karnataka and Maharashtra.

The Company clocked a turnover of Rs. 11,049 Crore during FY 2017-

18. lt was ranked among the top 20 best companies to work for by
Business Today and was also voted as one of the ten greenest
companies in India by TERI, reflecting its commitment to the
environment and society. Coromandel is a part of the INR 329 Billion
(32,893 Crores) Murugappa Group.

Meeting with the top management:

My visit to Plant in Visakhapatnam could not be complete as it was

coincident inspection by regulatory authorities and hence, entry to
plant area was restricted and not allowed the access. But, it was a
blessing in disguise and I had the opportunity of spending the entire
time with top executives in Finance Department.
 I had interacted with key managerial and executive personnel. I
observed keenly the management control system. They provide useful
information through Management Information System (MIS) to the
Board of Directors. They used the data analytics using the spread
sheets and dash boards and the variances were analyzed. Establishing
such a cause and effect relationship was a key consideration in internal
control over financial reporting (“ICFR”).

The finance team explained the bare bones of the concepts involved in
ICFR. The financial statements for the year ending 31 st March, 2018
contained an unqualified report on Internal Control over Financial
Reporting. Report on the Internal Financial Controls over Financial
Reporting was prepared under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013.

A company's internal financial control over financial reporting is a

process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial
control over financial reporting includes those policies and
procedures that

(1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the
assets of the company;

(2) provide reasonable assurance that transactions are recorded as

necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the
company; and

(3) provide reasonable assurance regarding prevention or timely detection

of unauthorized acquisition, use, or disposition of the company's assets that
could have a material effect on the financial
Inherent Limitations of Internal Financial Controls Over Financial Reporting:

Because of the inherent limitations of internal financial controls over financial

reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the internal financial
controls over financial reporting to future periods are subject to the risk that the
internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Report on the Consolidated Indian AS Financial Statements:

Annual Reports accompanied the consolidated Indian AS financial statements

of Coromandel International Limited (and its subsidiaries (the Parent and its
subsidiaries, which includes Group’s share of profit/(loss) in its associate and its
joint ventures, comprising the Consolidated Balance Sheet as at 31 March 2018,
the Consolidated Statement of Profit and Loss including other comprehensive
income, the Consolidated Cash Flow Statement, the Consolidated Statement of
Changes in Equity, for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
 Field visit of Visakha Container Terminal Private Ltd

Visakha Container Terminal Pvt. Ltd (“VCT”) manages and operates a container
terminal under the aegis of Visakhapatnam Port Trust under BOT basis. Located in
centre of India's East Coast and closest to the Malacca Straits, VCT is an ideal
gateway for container traffic from states of AP, Telangana, Chhattisgarh, Odisha,
Maharashtra, Jharkhand, Madhya Pradesh & West Bengal.

VCT is blessed with a natural depth of 17 m alongside (deepest in the country) and
state of art container handling infrastructure. Present terminal capacity is 0.5
million TEUs and this will be extended to more than 2 million TEUs by 2020.

The terminal is well equipped with modern infrastructure including Post Panamax
STS cranes, latest NAVIS SPARCS N 4 software, more than 366 reefer plug
points, adequate power back up, full length rail siding and fully computerized
environment. The organization has moved a step further in terms of technology
with the introduction of SAP B-One software.

In 2003 Vizag was India's leading bulk port and had loading facilities for Ore, Coal
and Fertilizers. It also had facilities for other general and liquid cargo. Through a
BOT arrangement with the Visakhapatnam Port Trust, Visakha Container Terminal
came up in its outer harbour - the deepest natural harbour in the country. Today, all
the major shipping lines offer services at Visakhapatnam. Major freight forwarders
have also established their presence. Container movements grew steadily. The
presence of a full-fledged container terminal in the centre of the fast- developing
East Coast of Indian came to be recognized. The comment of many that only heavy
and bulk cargoes move through Vizag has changed over the last 14 years, with
VCT catering to products that now include Pharmaceuticals, Ferro Alloys, Frozen
Seafood, Aluminium, Steel, Chemicals, Machinery, Paper, Engineering goods,
Foodstuff, Refractories, Cashew, Glass, Ceramics, Batteries, Garments, Human
Hair, Dried Plants etc. Bulk cargoes are also now being containerized.
VCT is gradually evolving as a regional transshipment hub in the Bay of Bengal
with containers from Kolkata, Haldia, Paradip, Kakinada, Chittagong and Yangon
getting transshipped here.

It has well established rail and road connectivity to the hinterland thereby
providing smooth access for cargo movement to local hinterland and ICDs at NCR,
Nagpur, Hyderabad and Raipur.

VCT is accredited with ISO 9001:2015, ISO 14001:2015, OHSAS 18001:

2007, ISO 28000:2007, ISO / IEC 27001:2013 and has been
conferred AEO status by Customs.

The terminal has been recording a decent growth year on year with a CAGR of
22.9% since inception. Plans have been drawn out for further expansion. The
Port will have a longer quay line (~ 850 m) for container vessels and 2 million
TEUs in capacity over the next 5 years.

Given the natural advantages that this port enjoys in terms of location, access,
natural assets, connectivity, and the burgeoning industry that surrounds it, VCT
is expected to grow at the pace that has been established over the last few years
possibly at a higher rate.

Accounting System:

Recently, VCT has migrated the legacy accounting system to SAP- HANA. SAP
HANA (High-Performance Analytic Appliance) is an application that uses in-
memory database technology that allows the processing of massive amounts of
real-time data in a short time. The in-memory computing engine allows HANA to
process data stored in RAM as opposed to reading it from a disk.

Inventory Control:

Most of the inventory consists of spares procured on emergency purposes for

on-board. These inventory items are held in stock for a considerable period as
these spares are procured to meet the contingencies.

The accounting system has an adequate control to monitor the aged inventory.
Age analysis is done for inventory as part of monitoring process. Further, the
inventory is classified into ABC category for
Periodical verification of inventory. Inventory is subjected to physical
verification on quarterly basis.

As part of internship, the inventory was randomly selected for verification and
thus, physically verified under the guidance of the experts in stores and finance
departments. Such a selection was limited to and based on ABC & XYZ
classification. The instances of variances between book stock and physical stock
were discussed with the authorized personnel. As a part of the exercise, ageing
analysis for inventory was carried out and compared with the system generated
report. However, my examination and analysis did not reveal any deviation.

Audit and Financials:

Being a limited company, the accounts are subjected to annual audit by external
auditors. The financials for the year ending 31 st March, 2018 were reviewed.
Grouping and consolidation of GL balances with the relevant schedules provided
an opportunity of understanding the practical scenario. Presentation and Disclosure
of various transactions were reviewed. Contingent liabilities were reviewed. As a
beginner, my emphasis was on collecting the accounting inputs and compilation of
information rather than system generated reports. Bank statement was downloaded
and reconciled the same with books of accounts.

Standard Operating Practices (“SOP”) and Internal Controls:

SOPs for operating manual were reviewed. Controls were tested to ensure
whether policies and procedures were adhered to while executing the
transactions. Security gate controls were reviewed and tracked the same with
the books of accounts.

Being a joint venture undertaking and also the net worth exceeded Rs.
250 Crores, it accounts were prepared based on Indian AS that were converted
into IFRS.
 Field visit of Hindustan Shipyard Ltd

Hindustan Shipyard Ltd., strategically located on the East Coast of the Indian
peninsula, at Visakhapatnam, Andhra Pradesh, is the nation’s premier shipbuilding
organization catering to the needs of shipbuilding, ship repairs, submarine
construction and refits as well as design and construction of sophisticated state- of-
the-art offshore and onshore structures. Direct sea access, excellent infrastructure,
skilled work force, rich expertise garnered over the years in building 183 vessels
and repairing 1967 vessels of various types enable HSL to offer competent services
for the defence and maritime sectors. Considering the strategic requirements, the
yard was brought under the administrative control of the Ministry of Defence on 22
Feb 2010. The Registered Office of the company is located in Visakhapatnam and
has regional office at New Delhi.

HSL happens to be the only yard in India to have carried out the refits of three
classes of submarines (refit of two Egyptian submarines in 1971, refit of F-class
(INS Vagli) and EKM class (INS Sindhukirti) submarine. The Medium Repair-
cum- Modernization of Russian made INS Sindhukirti, was successfully
completed and handed over to the Navy on 26 Jun 2015. This has earned many
accolades for the shipyard.

Incidentally, this was the only instance where retrofitting of missile system in an
existing submarine was undertaken in the country. The submarine achieved RPM
of 350 during its very first sea sortie for Full Power Trials, thus certifying the
quality of work by the yard.

Considering the expertise gained in MR of INS Sindhukirti, HSL has been

awarded for Normal Refit of INS Sindhuvir, a Kilo class submarine of the
Indian Navy at a cost of Rs 500 Cr. For this project, HSL has signed a contract
with SC Zvyozdochka shipyard, Russia on 28 Mar 17 for technical support
during NR of INS Sindhuvir at HSL. Refit of the submarine commenced in July
2017 and will continue for a period of 27 months. HSL is geared up to complete
this project within the stipulated timelines.
Accounting System:

Recently, VCT has migrated the legacy accounting system to SAP- HANA. SAP
HANA (High-Performance Analytic Appliance) is an application that uses in-
memory database technology that allows the processing of massive amounts of
real-time data in a short time. The in-memory computing engine allows HANA to
process data stored in RAM as opposed to reading it from a disk.

As a part of venturing into the latest technological upgradations available in the

market, HSL is aiming for a seamless process flow of information and to bring in
best practices adopted in other Indian and foreign shipyards. HSL has partnered
with M/s Tech Mahindra Ltd as System Integrator (SI) to implement SAP ERP and
integrate with PLM design software products. This would be first time in any
Indian Shipyard that PLM Design software would be integrated with any ERP
software. In fact not many shipyards in the world have this feature included in the
ERP. The system would be implemented by Mar, 2019.

I had the opportunity of meeting the SAP technicians who explained the process of
the migration of legacy system into ERP system and narrated the features of the
proposed system. I could see the test reports generated from the SAP using
standard T-Codes viz., mc.9, mb51, FAGLL03, Chart of Accounts etc. The
exercise was performed on testing environment as production environment is
scheduled in April- 2019. I was informed that the management had taken a
decision to defer the implementation due to annual account closing. The
management intends to migrate the audited balances in GL Accounts to the new
platform to have a seamless flow of information during the ensuing year. This, the
management opined, would eliminate the process of maintaining the two sets of
accounting systems parallel.

Inventory Control:

Most of the inventory consists of mandatory spares to be supplied on board as per

terms of ship building agreements. Inventory consists of 40% of the total assets of
the company. Efforts were on to bring down the inventory to optimum level. The
management has considered the Just-in-Time strategy of placing and procuring
the recurring inventory items, thereby reducing the inventory considerably.

The present and legacy accounting system was not integrated with other
Modules viz., Inventory, Payroll, HR, Production etc. However, the inventory
module has an adequate control to monitor the aged inventory. Ageing analysis
is done for inventory as part of monitoring process. Further, the inventory is
classified on the basis of ABC and XYZ criterion for periodical verification of
inventory. Inventory is subjected to physical verification on quarterly basis. As
the inventory module is not integrated to the accounting module, the inventory
transactions were recorded manually in financial GL. This has not only resulted
in duplication of book keeping exercise but also given rise to reconciliation of
inventory GL balances as per financial module with inventory application.

As part of internship, the inventory was randomly selected for verification and
thus, physically verified under the guidance of the experts in stores and finance
departments. Such a selection was limited to and based on ABC & XYZ
classification. The instances of variances between book stock and physical stock
were discussed with the authorized personnel. As a part of the exercise, ageing
analysis for inventory was carried out and compared with the system generated
report. However, my examination and analysis did not reveal any deviation.

Audit and Financials:

Being a public sector company, its accounts are not only subjected to annual audit
by external auditors but also reviewed by Comptroller and Audit General of India
(“CAG”). The statutory auditors are required to comment on the sub-directions
given by CAG u/s 143(5) of the Companies Act, 2013. The financials for the year
ending 31st March, 2018 were reviewed. Grouping and consolidation of GL
balances with the relevant schedules provided an opportunity of understanding the
practical scenario. Presentation and Disclosure of various transactions were
reviewed. Contingent liabilities were reviewed. As a beginner, my emphasis was
on collecting the accounting inputs and compilation of information rather than
system generated reports. Bank statement was downloaded and reconciled the same
with books of accounts.

Standard Operating Practices (“SOP”) and Internal Controls:

SOPs for operating manual were reviewed. Controls were tested to ensure whether
policies and procedures were adhered to while executing
the transactions. Security gate controls were reviewed and tracked the same
with the books of accounts. Inventory transactions were also reviewed on
random sample basis. The process of preparation of GRN, Stores issue
Voucher, PO mapping, inventory reservation against the purchase requisition
and finally the recording of these inventory transactions in Finance GL was
verified.

As the net worth of the company does not exceed Rs. 250 Crores, the company has
not adopted Indian AS while preparing its financials. During the interaction with
the finance management, I was informed that the company would voluntarily adopt
Indian AS for the period commencing from the immediately succeeding financial
year viz., FY 2019-20. As the ship building construction activities take
considerable time extending to more than 2 financial years, its revenue recognition
would be highly challenging due to subjectivity involved in its recognition.
Learning Skills – MS Excel
Microsoft Excel is a spreadsheet developed by Microsoft for Windows, mac OS,
Android and iOS. It features calculation, graphing tools, pivot tables, and a macro
programming language called Visual Basic for Applications. It has been a very
widely applied spreadsheet for these platforms, especially since version
5 in 1993, and it has replaced Lotus 1-2-3 as the industry standard for
spreadsheets. Excel forms part of the Microsoft Office suite of software.
Microsoft Excel has the basic features of all spreadsheets, using a grid of cells
arranged in numbered rows and letter-named columns to organize data
manipulations like arithmetic operations. It has in built functions to solve
statistical, engineering and financial needs. In addition, it can display data as line
graphs, histograms and charts, and with a very limited three-dimensional
graphicaldisplay.

These graphical presentations helps the financial management to prepare and

submit reports to the top management in summarized form. Of late, Microsoft, has
released an application
– PowerBI which is useful of data analysis and business intelligence for making a
pictorial presentation of data.

It allows sectioning of data to view its dependencies on various factors for

different perspectives (using pivot tables and the scenario manager). It also has
a variety of interactive features allowing user interfaces that can completely
hide the spreadsheet from the user, so the spreadsheet presents itself as a so-
called application, or decision support system (DSS), via a custom-designed
user interface, for example, a stock analyzer, or in general, as a design tool that
asks the user questions and provides answers and reports.

3D Formulas:

These are also known as cubed formulas. It is a reference to the same cell or
range on multiple worksheets. Using 3D formulas allows us to calculate data
throughout a workbook using multiple worksheets.

It helps the financial executives in compiling summary of data that presented in

a number of worksheets in the same workbook.
Keyboard shortcuts:

Many users find that using an external keyboard with keyboard shortcuts for Excel
for Windows helps them work more efficiently. However, keyboard shortcuts can
be easier than using the touchscreen, and are an essential alternative to using a
mouse.

Excel shortcut keys has greatly improved my speed when conducting analysis.
But often, it can be hard to remember these hotkeys — especially if I regularly
switch between the Mac and PC versions of Excel and / or long time interval in
using excel applications.

Pivot Table:

A pivot table is a program tool that allows us to reorganize and summarize

selected columns and rows of data in a spreadsheet or database table to obtain a
desired report. A pivot table doesn't actually change the spreadsheet or database
itself. The data can be summarized in various ways including frequencies and
averages. Using the pivot table in excel has many benefits. An important
advantage of pivot tables is that it is easy to use. We can easily summarize data
by dragging the columns to different sections of the table.

Use a pivot table to build a list of unique values. Because pivot tables
summarize data, they can be used to find unique values in a field. This is a good
way to quickly see all the values that appear in a field and also find
inconsistencies.
Though there is no fixed maximum number of records that we can use creating a
PivotTable, there is limitation of unique field items limiting to 32,500.
Pivot Tables are data summation tables that are common in business software.
They allow us to organize and make conclusions about data
Faster. The tables allow us to drag and drop items with ease and the data table
becomes interactive. This is a valuable tool for speed and effectiveness while
using Excel.
Most of the financial analysis is being done through pivot table. When data is to be
submitted to the top management, summarized information can be generated
through pivot tables.

VLOOKUP:

VLOOKUP - 'vertical' lookup, is a built-in Excel function that is designed to

work with data which is organized into columns. For a specified value, the
function finds the value in one column of data, and returns the corresponding
value from another column.
VLOOKUP is a function to lookup up and retrieve data in a table. This function is
useful for finance executives for compiling various statements viz., Balance Sheet,
Profit & Loss Account, Bank Reconciliation Statements, Management Information
System (MIS) etc. by mapping the relative record from a standalone statement; for
example trail balance for preparation of financials.
 LEARNING OUTCOMES

● Explore career opportunities in tandem graduation;

● Integrate theory and practice;

● Assess interests and abilities in their fields of study;

● Learn to appreciate and its function in the economy;

● Develop work habits and attitudes necessary for job

success;

● Develop communication, interpersonal and other critical skills in the job

interview process;

● Build a record of work experience / practical experience

requirement (PPR);

● Acquire employment contacts leading directly to a fulltime job following

graduation from college;

● Identify, write down, and carry out performance objectives related

to their job assignment; and

● Pursue professional courses in the relevant field of study,

 EXECUTIVE SUMMARY

This is an internship report, undertaken by P GOUTHAM PEDDIRAJU (1214316131) at G R

Kumar & Co LLP, Chartered Accountants, Visakhapatnam.

I have undergone internship for 3 month, in fulfillment of the requirement of the B.Com (Hons)
+ACCA Degree, pursued at GITAM University. The purpose of the internship is to prepare myself
to serve the needs of industry and commerce more effectively upon graduation. This included
acquiring real-life experience and exposure, thus gaining first-hand exposure of working in the real
world, granting the opportunity to learn more about my self-potentials and abilities, getting
connected and developing professional network, preventing CV from going to trash during job
application and transition to full-time job position.

This internship allowed me to harness the skill, knowledge and theoretical practice that I learnt in
the university and enabling me to transform theory into practical real-life situations.
 REFERENCES

1. www.icai.org

2. http://icmai.in/icmai/index.php

3. www.grk.in

4. https://coromandel.biz

5. www.vctpl.com

6. www.hslvizag.in

7. www.gst.gov.in

8. www.cag.gov.in

9. https://www.incometaxindia.gov.in

10. https://www.investopedia.com/terms/i/incometax.asp

11. https://www.acfe.com

12. https://products.office.com/en-in/excel