SRINIVASAN COLLEGE OF ARTS AND SCIENCE

(MBA PROGRAMME)
PERAMBALUR -621212

Summer Internship Program (SIP)

A Summer Internship Report Submitted To

THE BHARATHIDASAN UNIVERSITY , TIRUCHIRAPPALLI in

partial fulfillment of the requirement for the award of the degree of

" MASTER OF BUSSINES ADMINISTRATION "

Submitted By

GANGADHARAN B

(REG . NO : 21291397)
Under The Guidance Of

MS .K. MAHALAKSHMI.,B.COM(CA).,M.B.A.,M.PHIL.
Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES

SRINIVASAN COLLEGE OF ARTS AND SCIENCE

(MBA PROGRAMME)
(Approved by AICTE , New Delhi &Affiliated to Bharathidasan university, Tiruchirappalli- 24)

PERAMBALUR - 621212
 STUDENT DECLARATION

We hereby declare that the presented report of internship training on ASSET

ACCOUNTING & GENERAL PROCEDURE OF ACCOUINTING at Mine 1 and 1A
administrative office under the guidance of PENAGANTI
PALAVELLI/DM/FINANCE/MINE I and B is uniquely prepared by us after the
completion of 2 weeks work at NLC INDIA LIMITED NEYVELI TS.

We also confirm that the report is only prepared for our academic requirement, not for
any other purpose. It might not be used with the interest of the opposite party of the
corporation.

Signature of the student

 ACKNOWLEDGEMENT

First we convey our sincere thanks to MR.MATHEW KOSHY,GM/ L&D, learning and development
center AND DR . N. GANESH , DCM/HR and MR KALYANASUNDRAM .A JE/E learning and
development center for permitting us to carry out the internship at Mine 1&1A /F&AB, NLC India
LTD., Neyveli.
We would like to express our deep and sincere gratitude to Dr.N. VETRIVELAN,principal and
prof.G.RAVI,vice-principal,srinivasan college of Arts & Science, perambalur., for giving us the
opportunity to do this internship.
Our heartfelt gratitude to Dr. D.MAHESH, Director, department of management studies, , who has
encouraged me to undergo internship.
Our sincere gratitude to the PENAGANTI PALAVELLI/DM/FINANCE/MINE I guiding us
throughout the internship.
Finally, Our thanks go to all the people who have supported us to complete the research work directly
or indirectly.

( GANGADHARAN )
 ABSTRACT

FINANCE AND ACCOUNTS BRANCH followed by various function

such as accounts payable in accounting due to vendors or suppliers for goods
or services received that have not yet been paid for. The sum of all outstanding
amounts owed to vendors is shown as the asset account balance on the
company's balance sheet.
 TABLE OF CONTENTS

CHAPTER NO

1. INDUSTRY PROFILE

 INTRODUCTION ABOUT NLC

 MINING UNITS
 PRODUCTION PERFORMANCE
 FINANCE AND ACCOUNTS BRANCH

2. GENERAL ACCOUNTING AND ASSET ACCOUNTING

 ACCOUNTS PAYABLE ( ACCOUNTING) IN NLCIL-MINE I&IA

 WORKS /MINE I & IA
 GOODS AND SERVICE TAX
 GST-TDS
 INCOME TAX TDS
 ASSET ACCOUNTING

3. SOFTWARE ASSISTANCE

 ERP
 SAP
 CIS
 PIPAS
 EOFFICE

4. WORK & RESEARCH

5. CONCLUSION
1. INTRODUCTION TO THE PROJECT:

LIGNITE DEPOSIT IN NEYVELI:

 Lignite is the younger offspring of the coal family.
 It is a fossil fuel belonging to the Miocene age (25 million years)
 Popularly known as “BROWN COAL”, Lignite is tan brown in colour, light to handle
and brittle in nature.
 Lignite Deposit was a chance finding when some ‘brown substance’ gushed out with water
in Rao Bahadur M. Jambulingam Mudaliar's 620 acre own farm artesian well during 1934. He
acted swiftly and contacted the then British Raj, which sent Geologists to Neyveli. It was later
identified as ‘Lignite’. He generously extended substantial portion of the sprawling land-bank
for soil exploration. Through his effort and donated his 620 acres land to the Madras
Government.
 NLCIL has also forayed into renewable energy sector with commissioning of a 141 MW Solar
Photo Voltaic Power Plant including 1 MW Roof-top Project at Neyveli and a 51 MW Wind
Energy Plant at Kazhuneerkulam Village of Tirunelveli district in Tamilnadu. The Company
is also setting up 1209 MW Solar Power Projects at Tirunelveli, Virudhunagar and
Ramanathapuram districts of Tamil Nadu, of which, 300 MW have been commissioned. NLC
is aiming to achieve a total Renewable energy capacity of 4251 MW.

UNIQUE FEATURES OF NEYVELI LIGNITE MINES:

A. Occurrence of Ground Water Aquifer below lignite Bed:

A huge reservoir of ground water occurs below the entire lignite bed, exerting an upward
pressure of 6 to 8 kg/cm2. Unless this water pressure is reduced before mining, it will burst the lignite
seam and flood the Mines. This problem was overcome by continuously pumping out water round the
clock through bore wells located at predetermined points and thereby reducing the water pressure at
the lignite excavation area. Over the years, through continuous study and implementation of new
methods, the quantity of water pumped out has been reduced from 50,000 GPM to 32,000 GPM. (For
mining one tonne of lignite, about 13 tonnes of water has to be pumped out). The water level is
continuously monitored through observation wells for proper ground water management.

B. Higher Ratio of Overburden to Lignite:

The overburden to lignite ratio at Neyveli Mine-I is 5.5 to 5 M3: 1 tonne. This requires huge
quantity of overburden to be removed (11 T. of overburden is to be removed for mining 1 tonne of
lignite). High capacity excavators are used for handling large volume of overburden, after forward
preparation.

C. Hard overburden strata:

The highly consolidated overburden stratum consists mainly of Cuddalore sandstone and is
hard and abrasive in nature. This problem was overcome by carrying out suitable modifications in the
bucket wheel teeth and by instituting a systematic drilling and blasting programme.
D. Cyclonic area:
The Mine is located in a predominantly monotonic and cyclonic area. The average rainfall in a
year comes to about 1200 mm and the wind velocity goes up to 160 KM per hour. Every year, an
Action Plan for monsoon is prepared well in advance in detail.

MINING UNITS:
MINE-IIncluding Expansion:
The lignite seam was first exposed in August 1961 and regular mining of lignite commenced
in May 1962. German excavation technology in open cast mining, using Bucket Wheel Excavators,
Conveyors and Spreaders were used for the first time in the country in Neyveli Mine-I. The capacity
of this mine was 6.5 MT which met the fuel requirement of TPS-I. The capacity was increased to
10.5MT of lignite per annum from March 2003 under Mine-I expansion scheme and at present meets
the fuel requirement for generating power from TPS-I and TPS-I Expansion

MINE - II Including Expansion:

In February, 1978 Government of India sanctioned the Second Lignite Mine of capacity 4.7
MT of lignite per annum and in February `83, Government of India sanctioned the expansion of
Second Mine capacity from 4.7 Million Tonnes to 10.5 Million Tonnes. Unlike Mine-I, Mine-II had
to face problems in the excavation of sticky clayey soil during initial stage. The method of mining
and equipment used are similar to that of Mine-I. The seam is the same as of Mine-I and is contiguous
to it. The lignite seam in Mine-II was first exposed in September 1984 and the excavation of lignite
commenced in March, 1985. GOI sanctioned the expansion of Mine-II from 10.5 MTPA to 15.0
MTPA of lignite in October 2004 with a cost of Rs. 2295.93 crore. Mine-II Expansion project was
completed on 12th March 2010. The lignite excavated from Mine-II meets the fuel requirements of
Thermal Power Station-II and Thermal Power Station–II Expansion under implementation.

MINE IA:

Government of India sanctioned the project mine-I A of 3 million tonnes of lignite per
annum at a sanctioned cost of Rs. 1032.81 crores in February'98. This project is mainly to meet the
lignite requirement of M/s ST-CMS for their power plant and also to utilize the balance lignite to the
best commercial advantage of NLC. The project was completed on 30th March 2020.

PRODUCTION PERFORMANCE:

2020- 2019- 2018- 2017- 2016-

2021 2020 2019 2018 2017
Details Unit
Actual Actual Actual Actual Actual

Lakh
Lignite 192.62 248.64 242.49 251.53 276.17
Tonne(LT)
Power Generation Million Unit 20740.8 21033.1
19322.00 21922.98 20676.18
(Gross) (MU) 4 0

FINANCE AND ACCOUNTS BRANCH:

F&ABstands for finance accounts branch. There all three main sections that work in coordination
with the F&AB section which are: accounts division of mines, thermal and other units

Sub units in accounting centres

Establishment section
Works section –AMC EXP
Compilation
Cost and budgeting
Corporate accounts Unique to corporate office
Corporate taxations Unique to corporate office
Audit coordination Unique to corporate office
Treasury Unique to corporate office

There are 18 accounts centres in total and each account centres have the above mentioned sub units according to their area of work.

Introduction to the following divisions has been provided below:

 WORKS AUDIT
 COMPILATION
 TREASURY
 TAXATION

2. ACCOUNTS PAYABLE IN ACCOUNTING

Accounts payable are amounts due to vendors or suppliers for goods or services received that have
not yet been paid for. The sum of all outstanding amounts owed tovendors is shown as the accounts
payable balance on the company's balance sheet.

ACCOUNTS PAYABLE IN NLCIL:

Various sections are paying different types of inputs goods and service

• Work section

• Plant and machinery

• Compilation
• Spares

• Land acquisition

WORKS IN MINE1 &1A

Deals with accounts payable of input services i.e work executed through contracts in

areas of mine 1&1A .The various division may include

• SME

• CONVEYOR

• ELECTRICAL

• SWC

• OBOC

• TRACK SHIFTING

• MECHANICAL SERVICES

• SMD

• COMPUTER SERVICES

• GEOLOGY

• SURVEY

• PRODUCTION

• GROUND WATER CONTROL

• BLAST HOLES DRILLS

GOODS AND SERVICE TAX (GST) :
Goods & Services Tax Council is a constitutional body for making recommendations to the Union and
State Government on issues related to Goods and Service Tax. The GST Council is chaired by the Union
Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers
in-charge of Finance or Taxation of all the States.

The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, for introduction of Goods
and Services tax in the country was introduced in the Parliament and passed by Rajya Sabha on 3rd
August, 2016 and by Lok Sabha on 8th August, 2016. Consequent upon this, the Hon’ble President of
India accorded assent on 8th September, 2016, and the same was notified as the Constitution (One
Hundred and First Amendment) Act, 2016. As per Article 279A (1) of the amended Constitution, the GST
Council has to be constituted by the President within 60 days of the commencement of Article 279A. The
notification for bringing into force Article 279A with effect from 12th September, 2016 was issued on
10thSeptember, 2016.

Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and
28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead
are taxed separately by the individual state governments, as per the previous tax system. There is a
special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of
22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco
products.Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST; most goods are
expected to be in the 18% tax range

The Goods & Service Tax (GST) including Cess, if any, shall be paid by the NLCIL at actuals to the extent
directly relatable to the services rendered by the Contractor under this Contract subject.

The Contractor shall register with statutory / tax authorities wherever required

i) The Supplier / Contractor has to provide a copy of the GST Registration Certificate and also
mention their GST Registration No. and Date in each of their invoices / bills without fail. No invoice or bill
will be paid unless the GST Registration No. is mentioned therein.

ii) While claiming the GST payment, the contractor should furnish the requisite details in the
invoice das per statutory requirements.

Anti-profiteering Clause:
Under the GST law, any economic or tax benefit arising out of the implementation of GST is mandatory
and required to be passed on the NLCIL by the supplier. Similarly, the benefits enjoyed by the supplier
and other players in the supply chain are also required to be passed on to the supplier by them, which in
turn shall be passed on to NLCIL by way or price reduction.
 HSN/SAC codes for Goods/Services shall be specifically included to avoid disagreement on classification
at a later stage.

Place of supply:
NLCIL shall identify the place of supply to enable to avail the GST credit at right location.

Pricing/Discounts:
Any known discount shall form part of terms of the agreement to enable Supplier / NLCIL to claim tax
adjustment.

HSN (Harmonised System of Nomenclature) code:

India is a member of World Customs Organization (WCO) since 1971. It was originally using 6-digit
HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise
added two more digits to make the codes more precise, resulting in an 8 digit classification. The purpose
of HSN codes is to make GST systematic and globally accepted.

HSN codes will remove the need to upload the detailed description of the goods. This will save time and
make filing easier since GST returns are automated.

If a company has turnover up to INR 15 million in the preceding financial year then they did not mention
the HSN code while supplying goods on invoices. If a company has turnover more than INR 15 million but
up to INR 50 million, then they need to mention the first two digits of HSN code while supplying goods on
invoices. If turnover crosses INR 50 million then they shall mention the first 4 digits of HSN code on
invoices.

Reverse Charge Mechanism:

Reverse Charge Mechanism (RCM) is a system in GST where the receiver pays the tax on behalf of
unregistered, smaller material and service suppliers. The receiver of the goods is eligible for Input Tax
Credit, while the unregistered dealer is not.

The central Government released Rs 35,298 crore to the state under GST compensation. For the
implementation, this amount was given to the state to compensate the revenue. Central government has
to face many criticisms for delay in compensation.

TDS – TAX DEDUCTION SOURCE:

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making
specified payments such as rent, commission, professional fees, salary, interest etc. by the persons
making such payments.
Usually, the person receiving income is liable to pay income tax. But the government with the help of Tax
Deducted at Source provisions makes sure that income tax is deducted in advance from the payments
being made by you.

The recipient of income receives the net amount (after reducing TDS). The recipient will add the gross
amount to his income and the amount of TDS is adjusted against his final tax liability. The recipient takes
credit of the amount already deducted and paid on his behalf.

TDS CERTIFICATE:
Form 16, Form 16A, Form 16 B and Form 16 C are all TDS certificates. TDS certificates have to be issued by
a person deducting TDS to the assesse from whose income TDS was deducted while making payment.

For instance, banks issue Form 16A to the depositor when TDS is deducted on interest from fixed
deposits. Form 16 is issued by the employer to the employee.

Form Certificate of Frequency Due date

Form TDS on salary Yearly 31st May

16 payment

Form TDS on non- Quarterly 15 days from

16 A salary due date of
payments filing return

Form TDS on sale of Every 15 days from

16 B property transaction due date of
filing return

Form TDS on rent Every 15 days from

16 C transaction due date of
filing return

INCOME TAX TDS :

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a
payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to
be deducted at the rates prescribed by the tax department.

The company or person that makes the payment after deducting TDS is called a deductor and the
company or person receiving the payment is called the deducted. It is the detector’s responsibility to
deduct TDS before making the payment and deposit the same with the government. TDS is deducted
irrespective of the mode of payment--cash, cheque or credit--and is linked to the PAN of the detector and
deducted

ASSET ACCOUNTING

Assets in accounting are a medium through which one can undertake businesses, either tangible or
intangible, having a monetary value due to the economic benefits associated with it. Assets include
property, plant and equipment, vehicles, Cash and Cash Equivalent, accounts receivables, and
inventory.
Following are the characteristics of assets:

 It is owned and controlled by the enterprise.

 It provides a probable future economic benefit.

IN Financial assets account is reported under Non-current as well as Current assets. The idea of
the word current is to determine if it’s a short term investment or long term investment. Generally,
liquid investments are reported under current assets, whereas non-liquid investments are reported
under Non-current assets. Other types of assets include goodwill and deferred tax liabilities

Types of Assets in Accounting :

Assets can be of two types:

1. Current Assets
2. Non-Current Assets

Based on the asset’s maturity, they can be classified as Current (if maturing in 12 months from the
reporting date) or Non-Current (if maturing beyond 12 months from the reporting date).

There are various kinds of components of current as well as non-current assets, which are as
follows:

Current Assets Non-Current Assets :

Current Assets Non-Current Assets

Cash and cash equivalent Property, plant, and equipment

Trade Receivables Intangibles

Readily Marketable securities Long term lease obligations

 Current Assets Non-Current Assets

Stock in trade Investment in subsidiaries

Deposits Deferred tax assets

Prepaid liabilities Derivative assets

Accounting of Assets

Globally, all corporations have to calculate their assets and liabilities based on a given set of
instructions and guidelines. Accordingly, they have instructions for each of the above components,
which must be followed while calculating them.

Additionally, the total asset figure is the total of all the components mentioned above the assets
duly calculated as per the rules.

Let’s understand some examples of assets accounting.

The value of assets keeps on changing from year to year. There are numerical
factors that can affect the values of the assets.

 Depreciation and amortization – One has to determine the method of

depreciation of PPE by considering the nature of assets, their useful life,
and scrap value. For amortization, one has to consider the nature of
intangibles, their ownership, and how they will help the entity
gain revenue.
 Impairment of assets– Impairment means to deplete the value based on
the change in market factors. It is considered when the asset’s book value
is less than its market value.
 Obsoleting technology – Machinery is highly dependent on the version of
technology prevailing in the market. Hence, any obsolescence will lead to
a change in the value.
 Sale of an asset– This is one of the most common scenarios in which an
entity sells the assets either for replacement or diversification. The main
thing one has to determine while recording the sale of an asset is the gain
on sale, market rate, and stamp duty value.
 Change in the asset’s useful life – Many factors like depreciation,
impairment, or capacity are highly dependent on the useful life estimate.
Auditors should consider any change in the same judiciously. Also, taking
 professional or actuarial opinions while estimating the useful life will add
to the authenticity of the estimates.
 Change in the statutory requirement to change the disclosure –
Accounting of the assets always happens under the strict guidelines
of IFRS, GAAP, and local laws. Disclosure and valuation will be dependent
on these rules. Thus, any change in them will directly affect the disclosure
and valuation of the statements.

Below are examples of the most common assets in accounting:

1. Cash
2. Temporary Investments
3. Accounts Receivables
4. Inventory
5. Prepaid Insurance
6. Property, Plant & Equipment
7. Land
8. Buildings
9. Goodwill

10.TrademarK ,Patents

List of Intangible Assets

The following are some of the common types of Intangible Assets.

1. Goodwill

2. Brand Equity

3. Intellectual Property

4. Licensing and Rights

5. Customer Lists

6. Research & Development

Changes in asset values on the books of a company have to reflect in either the Profit
and Loss Statement or the Cash Flow Statement.
An example would be if accounts receivable increased on the books, it meant an
outflow of cash on the Cash Flow Statement. Similarly, if inventories decreased in the
books, it means an inflow of cash due to products getting sold. A decrease in the
gross block is expensed on the P&L through depreciation, and an increase in the
gross block is reflected by Capex capital expenditures under the Cash Flow
Statement.

3. SOFTWARE ASSISTANCE

 ERP:

ERP abbreviated as Enterprise Resource Planning is a software and systems used to plan and
manage all the core financial, supply chain, manufacturing, services, and other processes of an
organisation. It is the integrated management of main business processes, often in real time and
mediated by software and technology.ERP software allows organizations to manage business
operations, and usually refers to suite of modular applications that collect and integrate data from
different aspects of the business.

An ERP system also called an ERP Suite is made up of different enterprise resource planning
applications that talk to each other and share a database.

Two characteristics distinguish ERP software from collections of more narrowly focused
business software:

1. The first is the integration between modules that enables them and their users to interact.

2. The other distinguishing feature of ERP software is a central database in which modules
record transactions and other information, access that data and share it.

Key Features of ERP Systems:

Four ERP concepts differentiate the software from most other types of business applications:

1. Comprehensive integrated business processes

2. Modularity

3. Central database

4. Consistent look and feel across applications

SAP:

(System Application and Products)

 SAP stands for Systems Applications and Products in Data Processing.

 It is a German multinational software corporation that makes enterprise software to manage business
operations and customer relations.
Enterprise Resource Planning (ERP) software:

 SAP Software is a European multinational, founded in 1972 in Walldorf, Germany by Baden-

Wurttemberg, Hopp, Hector, Plattner, and Tschira. They develop software solutions for managing
business operations and customer relationships.
 SAP system consists of a number of fully integrated modules, which covers virtually every aspect of
business management.
 Over the years, it has grown and evolved to become the world premier provider of client/server
business solutions for which it is so well known today.
 SAP is a market leader in providing ERP (Enterprise Resource and Planning) solutions and services.
 Today, SAP has more than 215 million cloud users, more than 100 solutions covering all business
functions, and the largest cloud portfolio of any provider.

SAP software:

The primary purpose of SAP ERP software is to have "One Enterprise One System" concept. The reason
is to have the centralised application to have seamless flow of organisation across the enterprise.

Decentralised Systems:

Traditional business models often involve decentralized data management, with each business function
storing data about its operations in a separate database. This means that employees from other business
functions cannot access the information, and duplication of data across multiple departments increases IT
storage costs and the risk of data errors.

Centralised System:

By centralizing data management, SAP software provides a single view of the truth that is used by
multiple business functions. This helps companies better manage complex business processes involving
different departments by giving employees access to real-time insights across the enterprise. As a result,
businesses can accelerate workflows, improve operational efficiency, raise productivity, enhance customer
experiences – and ultimately increase profits. SAP ERP is a type of centralised system which most of the
organisations are utilising currently across the globe.

SAP Modules in NLCIL:

1. Financial Accounting: The FI component records a company's financial transactions, including

transaction of its customers and vendors. FI handles receivables from sales, payables for procurement,
and cash management as well as bank payment and reconciliation processes.
2. Controlling (CO): The CO component manages cost centre accounting, profit centre accounting and
internal orders and also offers financial planning. It also includes a product costing feature, which
compares simulated costs and actual costs, and is primarily intended to help manufacturing
organizations. (Note that the first two components are often referred to as FICO, FI-CO or FI/CO, as
if they are one component.)
3. Human Capital Management (HCM): The HCM component manages payroll, time management
activities such as attendance and leaves, career development, travel and workplace safety. Functional
 modules have sub modules, which can be implemented if they are required to run the business
processes of the company.
4. Sales and Distribution (SD): The SD component manages major processes of sales and distribution,
including selling products or services in national and international markets through direct sales to
customers or through distribution networks. SD also handles customers' returns, along with billing
and credit issuance.
5. Materials Management (MM): The MM component manages procurement and inventory. Materials
and services procurement can be from local vendors or international suppliers. In inventory
management, MM manages all goods issuance, goods receipts and transfers of a material from one plant or
storage location to another. Counting and reconciling materials' physical inventory is also managed in MM.
6. Production Planning (PP): The PP component helps businesses create demand and manufacturing capacity
alignment so they can plan product manufacturing, sales and distribution. PP plays a critical role in a
manufacturer's supply chain and can be used for discrete, process or repetitive manufacturing or a combination
of more than one type.
7. Quality Management (QM): The QM component extensively integrates with procurement, production, sales,
and equipment maintenance processes. Advanced features include managing complete internal or external
audit's business processes and finding root causes of a product's failure to ensure on-going quality
improvements to a company's business processes. (Note that the above two components are often referred to as
PP-QM or PP/QM, as if they are one component.)
8. Plant Maintenance (PM): The PM component monitors machines and functional locations (such as a chillier
room or a boiler room) to make sure they are in proper working order and provides alerts when issues are
detected to prevent machine failures and production disruptions. Business processes such as preventive
maintenance, corrective maintenance and refurbishment maintenance are all covered in the SAP PM
component.
9. Project System (PS): PS is meant to manage large, complex projects such as setting up a new manufacturing
plant or monitoring a plant's maintenance turnaround. All project-specific procurement or production through
PS ensures that this component is able to allocate a project's costs correctly while remaining within the defined
project's budget

SAP (T CODES):

For creating liability major 5 steps:

FB60 –Creating liability for parking vendor invoice

FBV0-for reviewing parked document number

F-53-Outgoing payment for creating vendor

Zfiepaycmp -Payment document

Bank (Authorization 1 &Authorization-2)

OTHER T –codes;

Faglb03-G/L reviews

Fbl1n- All vendors balances

fb50 - Rectifying entries&(Non payment entries)

fb08 – Reversal of the normal document posted

fbra - To reverse the clearing document (to clear f-53)

 CIS:

CIS is a customised software for filing GST returns the various mode includes outward and inward

CIS

INWARD OUTWARD

RCM Non-RCM

Outward:

The Tax invoices generated by NLCIL to its customers are send to invoicing portal and thereafter e-
invoice is created.

Inward:

The CIS includes GSTR-7(GST TDS RETURN)

 PIPAS:

PIPAS is PERSONAL INFORMATION AND PAYABLE ACCOUNTING SYSTEM. It is

customised software used by the HR division for employee’s related activities. The payroll of the employees
is processed in PIPAS.

 E OFFICE:

E-OFFICE is customised software for the need for transforming conventional government offices into
more efficient and transparent e-offices, eliminating huge amounts of paperwork has long been felt.

The e-Office product pioneered by National Informatics Centre (NIC) aims to support governance by
using in more effective and transparent inter and intra-government processes.
 An automated office attempts to perform the functions of ordinary office by means of a computerized
system. In a manual office scenario, there are thousands of letters and files and their manual tracking is not a
very easy task.

A computerized File Tracking System enables users to track these letters and files within seconds.
Also, dispatch and record keeping are made easy. It ensures proper distribution of work load, thus increasing
the efficiency of the system and bringing transparency to the system.

The system simulates the manual system in a digital environment. E-File, an integral part of e-Office
suite is a system designed for the Government departments, PSU’s, Autonomous bodies to enable a paperless
office by scanning, registering and routing the inward correspondences along with creation of file, noting,
referencing, correspondence attachment, draft for approvals and finally movement of files as well as receipts.

E-File is a workflow based system that replaces the existing manual handling of files with a more
efficient electronic system. This system involves all stages, including the divarication of inward receipts,
creation of files, movement of receipts and files and finally, the archival of records. With this system, the
movement of receipts and files becomes seamless and there is more transparency in the system since each
and every action taken on a file is recorded electronically. This simplifies decision making, as all the required
information is available at a single point. It envisions a paperless office, with increased transparency,
efficiency and accountability of the organization.

A revolutionary product aimed to make office work like never before in the history of Indian
Governance, is based on the Thirteenth edition of Central Secretariat Manual of Office Procedures (CSMOP)
of the Department of Administrative Reforms & Public Grievances (DARPG), Govt. of India.

SAP :
THE SAP Founded in 1972, the company was initially called System Analysis Program
Development (Systemanalyse Programmentwicklung), later abbreviated to SAP. Since then, it
has grown from a small, five-person endeavor to a multinational enterprise headquartered in
Walldorf, Germany, with more than 105,000 employees worldwide.

The company’s integrated applications connect all parts of a business into an intelligent suite on a
fully digital platform, thereby replacing the process-driven, legacy platform. Today, SAP has more
than 230 million cloud users, more than 100 solutions covering all business functions, and

the largest cloud portfolio of any provider. Fi

THE NLC HAS FALOW THE SAP SOFTWAER FROM BEGIN Manaement
SAP offers solutions across a wide range of areas:

 ERP and Finance

 CRM and Customer Experience
 Network and Spend Management
 Digital Supply Chain
  HR and People Engagement
 Experience Management
 Business Technology Platform
 Digital Transformation
 Small and Midsize Enterprises
 Industry Solutions
nnect all departments and functions with an ERP system that supports resilience and operational
Use T-Code– AS01for AUC Creation.

excellence.

Asset under Construction (AUC) – Creation : SAP

STEP : 1 : SAP CREATION

STEP : 2 : ASSET NUMBER ,COMPANY CODE , NUMBER OF ASEET

STEP : 3 : GENERAL PROCEDURES
STEP 4 : TIME -DEPENDENT

STEP : 5 : ALLOCATION

STEP : 6 : ORIGIN
STEP : 7: DEPREC.AREAS
STEP : 8 : BACK TO SAP HOME

STEP : 9 : THE SAP HAS SUCCESFULLY CREATED

 Insert relevant Asset Class (FATA**** / FAIA****) and Company Code. i.e. 1000.  Provide
Asset description in ‘Description’ and ‘Asset Main No. Text’ fields.
 Provide Serial Number, if available.
 Give Quantity and the units should be ‘EA’.
 Input FAS Asset Number in the ‘Inventory Number’ field.
 Enable both checkboxes – ‘Manage Historically’ and ‘Include asset in Inventory list’.

 Provide relevant Cost Centre.

 Select the Plant from the List
 Select from the Location from the List
 Enter Room details in the filed

 Enter Income Tax Depreciation Block Key in ‘India – Income Tax’ tab.  Provide Depreciation
Basis and Useful life of the Asset.
 Particulars FAS SAP 
Depreciation Depreciation 
Basis Basis 
Electricity Act A EA* 

Department of Public Bureau B BD* 

Technical Assessment C TA* 

Companies Act D CA* 

Low Asset Value - Assets costing E LAV1 
less than Rs. 5,000 (i.e. 100% 
Depreciation) 
Intangible Assets F IN01 



 Save the details (Ctrl + S) and note the Fixed Asset number.

Fixed Asset - Modification:

 Give the Fixed Asset number and Company Code. i.e. 1000.

 Modify the required fields and save the details.


Fixed Asset – Display:
 Give the Fixed Asset number and Company Code. i.e. 1000.

 Fixed Asset’s Master Data will be displayed here.

 Fixed Asset - Creation (Post – Capitalisation):

 Insert relevant Asset Class (FATA**** / FAIA****) and Company Code. i.e. 1000.
 Enable the checkbox – ‘Post-capitalization’.
Provide Asset description in ‘Description’ and ‘Asset Main No. Text’ fields.

 Provide Serial Number, if available.

 Give Quantity and the units should be ‘EA’.
 Input FAS Asset Number in the ‘Inventory Number’ field.

able both checkboxes – ‘Manage Historically’ and ‘Include asset in Inventory list’.  Give Asset’s
Capitalisation Date in the ‘Capitalized on’ field.

 Provide relevant Cost Centre.

 Enter Income Tax Depreciation Block Key in ‘India – Income Tax’ tab.

 Disable both checkboxes – ‘Manage Historically’ and ‘Include asset

Note:
1. Settlement of AUC is only possible if there is a Debit (positive) balance is available in the AUC.

2. Through distribution rules, an AUC can be settled to any number of Fixed Assets.
3. In distribution rules, always fill the field ‘Cat’ as “FXA”.
4. Values in AUC should be more or equal to the Settlement Amount. If the Settlement amount is more
than the available balance in AUC, the entry won’t get posted.
5. Posting date for Settlement of AUC will be on or after the date in which values are provided to AUC
and not before.

Provide Depreciation Basis, Useful life and Depreciation Start date of the Asset.
  Depreciation Start date will the First day of the DOC Month :

Date of Capitalisation Depreciation Start Date

1st to 30th April, 2018 01.04.2018
1st to 31st May, 2018 01.05.2018
1st to 30th June, 2018 01.06.2018
1st to 31st July, 2018 01.07.2018
1st to 31st August, 2018 01.08.2018
1st to 30th September, 2018 01.09.2018
1st to 31st October, 2018 01.10.2018
1st to 30th November, 2018 01.11.2018
1st to 31st December, 2018 01.12.2018
1st to 31st January, 2019 01.01.2019
1st to 28th February, 2019 01.02.2019
1st to 31st March, 2019 01.03.2019

Save the details (Ctrl + S) and note the Fixed Asset number.

AUC / Fixed Asset Blocking:

 Use T-Code – AS02 for AUC / Fixed Asset Modification and give the AUC /
Asset number.

Change the AUC / Asset description as “Blocked” in ‘Description’ and ‘Asset Main No.
Text’ fields.
 Give “0000000000” in the ‘Inventory Number’ field.
 Remove Income Tax Depreciation Block Key in ‘India – Income Tax’ tab.
 Give “0000” as Depreciation Key.
 Give the AUC / Asset Number.has successfully created so give Save the detail
 (Ctrl + S).

4. WORK & RESEARCH:

Description of work done by us in the office:
How to read an agreement:
First, we have to see Letter of Award
 Scope of work
 Projected Amount and time
 Payment terms
 Security of Deposit

LETTER OF AWARD example:

LETTER OF AWARD

Gentleman,

Sub: Providing Manpower for Housekeeping, Watch & Ward, Operation & Maintenance of
Equipment’s in SMD/Mine-IA, Cooking & Catering in Lignite House/Block-24 and
Housekeeping in A.O Building of Mine-I&IA/Block-26 for 2020-22- Letter of Award –
Issued – Reg.

Ref: 1. NLCIL’s Tender No. CGM/T/MIA/BMC/SMD/PTE/A049/19-20

2. Your Bid opened on 25.02.2020

1.0 With reference to your offer submitted for the above tender, we, NLC INDIA LIMITED,
NEYVELI hereby accept the said Tender for a total value of Rs. 37,502,905 (THREE
CRORE SEVENTY FIVE LAKH TWO THOUSAND NINE HUNDRED FIVE RUPEES
ONLY) at the rate of offered by you towards the scope of work and prices with all other
terms mutually agreed and issue a LETTER OF AWARD to you.

You are requested to contact the GM/CIVIL/SMD/MINE-IA and get instructions to

commence the work immediately.

To enable you to proceed with the work, essential clauses and Terms and Conditions agreed
are given herein below:

Scope of work: As per the Tender Schedule enclosed along with LOA online. You are
requested to download the Tender Schedule consisting of Scope of Work from CCMS Portal.

The work should be executed as per the Terms and Conditions given in the Tender
Documents and mutually agreed Terms and Conditions.

Payment terms: Payment will be made within 7 (Seven) days after submission of the bills,
with all required documents. For details refer “PAYMENT TERMS” under J. OTHER
CONDITIONS.
 Security Deposit: You are requested to produce SD of Rs. 12,13,500/- (i.e., 5% of the
Contract value pertaining to Schedule-I), in the form of BC/PO/DD/e-payment or BG in the
prescribed form on Rs. 80/- stamp paper.

SAP:
 First, Login to the software.
 As per our requirement, we enter the t-codes.

T-CODES:

 F-02
 F-53
 F-03
 F-44
 AS01
 AS02
 AS03
 F-90
 AW01N

BILL CHECKING:

Checklist for Bills

1. Vendor Tax Invoice GSTIN, HSN, Invoice No, Invoice date, GST amount, Total
amount. (including in words) (2 copies is Mandatory)

2. GST Paid Challans GST paid Challans for previous bills to be submitted.
GSTR1 Invoice wise break up details.
3. Enhancement Order
/EOT/Re-
appropriation If the there is enhancement, an order for enhancement for
(Cumulative payment the same to be submitted for verifying the authenticity of
amount including this enhancement.
bill shouldn’t be In case, enhancement is there, ASD need to be deducted or
greater than agreement not.
value)

4. HR EPF Clearance and i) Man shifts as per EPF clearance and as per Form D Shall
Bill – Man Shifts is be same.
same ii) Insurance validity period
iii) Labour license validity period
 iv) PF amount shall be 25% of Basic wages
Pointers: No PF for PH, OT shifts
i) Check any previous Liability exists before posting FB60.
(Eg: March end liability)
ii)COVID19 support amount shall be entered separately and
5. SAP Entry Text shall be given as COVIDsup/Agreement
no/DIVISION/UNIT
iii) Text shall be uniform among all.
Agreement no/DIVISION/UNIT
(Eg.70200050/D011/MS/MIA)
6. Cost centre Cost centre specific to the division to be followed, Which
helps in reporting purposes.

● BTS ID to be generated from CLMS if the contracts

have labour involved.
7. BTS ID
● Check the BTS is linked to correct SAP vendor
code in case the Vendor is having multiple SAP
codes.

ALW is to be certified by the division that the particular

8. ALW Certificate labourer is eligible for the ALW. This can be certified by
HR also.
9. Supervisor Clause Follow the Agreement conditions for Supervisor penalty.

i) Values of Bill entered to be checked with bill and pass

order.
10. Memorandum of ii) The MOP should contain Cumulative value after each bill
payment. is gone, for this take only the gross amount in MEMMS, the
same may also be checked with the amount given by User
division. This will be useful at the time of finalisation.
11. Pay order Pay order after rounding off in words to be corrected.

MEMMS sheet, Tax invoice, ZM Book copy & its

12. Order for bills calculations, GST Challan, Goodwill split-up details,
arrangement (Office Supervisor penalty calculations(if applicable), HR EPF
copy) clearance, Form B & D of Workmen & supervisor, Bank
Payment, Miscellaneous calculations.
Bill form, ZM Book, Original Tax invoice, Payment Advice,
13. Payment Copy Other Significant papers.

14. Signatures Of Finance MEMMS copy(admitted)

executives Bill Form (Pay order)
Payment advice
 Memorandum of payment
Outgoing Print
15. Pointers for Payment BTS admitted
time Posted in MEMMS seal
Check due date and give for payment.

CHECKING OF GSTR-2A:

NLC INTRANET Corporate F&AB Go to menu GST Recent 2A

excel FY wise (2019-2020, 2020-2021) B2B GSTR No check (Invoice no, date,
taxable value, SGST, CGST) they have property field GSTR1& the credit is eligible.

Travel bills:
 Running charges Rs./KM

Rental charges Rs,/Day

Ceiling limit/Month

GST is in RCM Mode.

DIESEL BILL

Checking per kilometre

Rate per unit

Discount

Vat

Asset under Construction (AUC):

AUC are the special form of tangible assets. They are usually displayed as a
separate balance sheet item and therefore need a separate account determination in their asset
classes. Capital work in progress (CWIP) is an accountancy term for all the costs of
construction associated with the building of fixed long-term assets. The construction in
progress account has a natural debit balance, and is labelled as property, plant, and
equipment as part of a company's long-term assets on a balance sheet.

AS01- Creation of Asset or AUC/CWIP

AS02-Editing for AS01

AS03-Viewing for already created

F-90-Ceate asset related entries

AW01N -Asset explorer

Fund clearance

Sap-ZFI_FDCLR

MANUAL DOCUMENT
 CONCLUSION

NLCIL is overall one of the profit making and reputed corporation in the world.
We have to attest both our heads PENAGANTI PALAVELLI/DM/FINANCE/MINE I and
NLCIL for the good job we really appreciate the way we have been guided throughout the
internship program with NLCIL beginning from the opportunity to take the time needed and
to expand our knowledge in several issues concerning fiancé the time spent for the internship
at NLCIL were no doubt a source of great learning for us about many things particularly
working in finance department this practical project t do help us attain loads of knowledge
about the pre dominant functions performed by the F&AB branch in NLCIL and finally
earned the confidence to deal with assignments it is through them we did enjoy our work
every day.
 REPORT ON GENERAL ACCOUNTING PROCEDURES
AND
ASSET ACCOUNTING
INTERNSHIP
at
NLC INDIA Limited
(Neyveli T.S)

In partial fulfilment of the Degree of

MASTER OF BUSSINES ADMINISTRATION

By

NAME REGISTER No. COURSE NAME

GANGADHARAN . B 21291397 I-MBA

SRINIVASAN COLLEGE OF ARTS AND SCIENCE

APPROVED BY AICTE,NEW DELHI &AFFILIATED TO BHARATHIDASAN
UNIVERSITY ,TIRUCHIRAPPALI – 24
(Recognized by UGC as “College with Potential for Excellence”)
PERAMBALUR - 621212
 OPERATING WEALTH

FOR WELLBEING

(“ NAVRATNA – A GOVERNMENT OF INDIA ENTERPRISES”)

CERTIFICATE

THIS TO CERTIFY THAT THE ENTITLED “THERMAL CYCLE (SWITCH GEARS &
MOTOR)” IN THE BONAFIDE INTERNSHIP WORK DONE BY.

GANGADHARAN .B

( REG . NO. 21291397)

in partial fulfilment of the requirement of the award for mba (master of

bussunes adminstration ) degree in srinivasan college of arts and scince .
perambalur. the internship work done during 21.04.2022 TO 04.05.2022 AT
Mine 1&1A /F&AB, NLC India LTD., Neyveli. -607801,TAMIL NADU

PERMITTED TO SUBMIT THE REPORT TO UNIVERSITY AUTHORITIES

PLACE : NEYVELI

Date : SIGNATURE OF GUIDE

DEPUTY CHIFE MANAGER / L&D

 NLC INDIA LIMITED

(“ NAVRATNA – A GOVERNMENT OF INDIA ENTERPRISES”)

NEYVELI ,TAMILNADU

Bonafide certificate
Certified that the internship” Mine 1&1A /F&AB, NLC India LTD.,is the bonafide

work of

GANGADHARAN . B

(REG .NO:21291397)

FIRST YEAR OF MASTER OF BUSSUNES ADMINSTRATION from SRINIVASAN

COLLEGE of ARTS AND SCINCE , PERAMBALUR.in THE CORPORATE OFFICE OF
NLC INDIA LIMITED,NEYVELI,CARRIED out under our supervision during the
period from (21.04.2022) TO (04.05.2022 )

Their performance,conduct and attendance during the period were found to

be good

PLACE : NEYVELI

Date : SIGNATURE OF GUIDE

DEPUTY CHIFE MANAGER / L&D