Summer Internship Report

ON
“Financial Management Excellence: A Comprehensive
Analysis of ISK International Pvt. Ltd”
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOROF COMMERCE
IN C.S.J.M. UNIVERSITY KANPUR U.P.

SUBMITTED BY
RAZI FAROOQ
(ROLL NO 21016004247)

UNDER THE GUIDANCE OF

DR SUDHANSHU NAMANJI

Department of commerce
D.A.V. post graduate college
Kanpur, 208001

Period of Research Project/Survey from 2023 to 24

YEAR OF SUBMISSION 2024

 CERTIFICATE OF GUIDANCE

This is to certify that the Research Project/Survey Work entitled

“Financial Management Excellence: A Comprehensive Analysis of ISK
International Pvt. Ltd” Razi Farooq (Roll No: 21016004247) was conducted
under my supervision in partial fulfillment of the degree of Bachelor of
Commerce in C.S.J.M. University Kanpur U.P. I attest that this project is the
original work of the student and has not been previously submitted for any
other degree or diploma in this or any other institution or University for
academic qualification.

Place: Kanpur
Date: …………

Signature of Mentor

(Dr. SUDHANSHU NAMANJI)

Department of Commerce
D.A-V College

Kanpur U.P.
 STUDENT'S DECLARATION

1, Razi Farooq, hereby declare that the Project Work titled “Financial
Management Excellence: A Comprehensive Analysis of ISK
International Pvt. Ltd” is the original work done by me and submitted
to the Department of Commerce, D.A.V College, Kanpur, (C.S.J.M.
University, Kanpur- U.P.) in partial fulfillment of requirements for the
award of degree of Bachelor of Commerce under the Supervision of
Dr. SUDHANSHU NAMANJI

Place: Kanpur
Date: 27-03-2024

Signature of the Student

Razi Farooq
Roll No 21016004247
 CERTIFICATE OF COMPLETION

I, (Razi farooq) hereby certify that I have completed my work at (ISK International
Pvt. Ltd). From 28-02-2024 to 23-03-2024. During this period, I have diligently
performed my duties and responsibilities to the best of my abilities.
I am grateful for the opportunity to gain practical experience and develop valuable
skills during my time at (ISK International Pvt. Ltd). I would like to express my
appreciation to the entire team for their guidance and support throughout this
journey.
I am confident that the knowledge and experience gained here will serve as a
strong foundation for my future endeavors. Thank you for the opportunity to be a
part of (ISK International Pvt. Ltd).

Place: Kanpur
Dated:27-03-2024

Student Signature
Razi Farooq
B.Com VI Semester
Roll No
21016004247
 ACKNOWLEDGMENT

I would like to express my sincere gratitude to the following individuals and

organizations fortheir invaluable support and contributions to the completion of this
project:

Dr. SUDHANSHU NAMANJI For their guidance, expertise, and unwavering support
throughout the duration of this project.

Dr. SUDHANSHU NAMANJI, Friends, Family Members For their encouragement, valuable
insights, and assistance in various aspects of this project.

I am also thankful to (Additional Individuals or Groups) for their assistance,

encouragement, andunderstanding during this endeavor.

Lastly, I extend my deepest appreciation to all those who have contributed directly or
indirectly tothis project's success.

(Your Signature)
(Razi Farooq)
 ABSTRACT

This internship project report provides a comprehensive analysis of ISK International's

financial management practices within the context of the leather work industry. Through an
examination of the company's accounting system, financial performance, budgeting and
forecasting, cost analysis, internal audit and compliance, taxation, and risk management, key
observations and recommendations have been identified to enhance the company's financial
operations and overall performance.

The report highlights ISK International's commitment to excellence in financial management,

as evidenced by its adherence to regulatory requirements, proactive risk mitigation efforts,
and investment in employee development. However, areas for improvement have been
identified, including the need to enhance automation, strengthen internal controls, optimize
budgeting processes, and improve cost efficiency.

Recommendations for ISK International include investing in advanced technology for process
automation, fostering a culture of ethics and compliance, and continuing to prioritize
employee training and development. Implementation of these recommendations is expected
to further enhance ISK International's financial performance, mitigate risks, and support its
growth objectives in the competitive leather work industry.

As the internship concludes, the experience gained at ISK International has been invaluable,
providing insights into real-world financial management practices and contributing to
professional growth in the field of accounting and finance.
 TABLE OF CONTENT

SR NO TOPICS

1. Introduction

2. Company Background

3. Accounting System and Process

4. Financial Analysis

5. Budgeting and Forecasting

6. Cost Analysis

7. Internal Audit and Compliance

8. Taxation

9. Risk Management

10. Recommendations

11. Conclusion

12. Suggestions
 INTRODUCTION

In the dynamic landscape of modern business, effective financial management is paramount

for the success and sustainability of any organization. This holds particularly true for
companies operating in specialized industries like leather work, where market fluctuations
and consumer preferences demand astute financial acumen.

ISK International stands as a testament to this principle, having carved its niche as a
prominent player in the leather work industry. Founded [year], ISK International has steadily
risen to prominence, offering a diverse array of high-quality leather products to a discerning
clientele both domestically and internationally.

This internship project serves as a comprehensive exploration into the financial ecosystem of
ISK International, delving into its accounting system, financial analysis, budgeting and
forecasting, cost analysis, internal audit and compliance, taxation, and risk management
practices. By dissecting these facets, this report aims to unearth areas of strength, identify
areas for improvement, and offer actionable recommendations to fortify ISK International's
financial framework.

Through meticulous examination and analysis, this report endeavors to contribute to the
continual evolution and enhancement of ISK International's financial management practices,
positioning the company for sustained growth, resilience, and prosperity in the dynamic
landscape of the leather work industry.
 COMPANY BACKGROUND

ISK International, a leading entity in the realm of leather work, emerged onto the scene with
a vision to redefine craftsmanship and luxury in the industry. The company embarked on a
journey to blend traditional artistry with contemporary design, setting new standards of
excellence along the way.

Since its inception, ISK International has remained steadfast in its commitment to quality,
innovation, and customer satisfaction. What began as a modest venture has blossomed into a
renowned brand synonymous with elegance and sophistication. Through unwavering
dedication to craftsmanship and an unwavering commitment to customer-centricity, ISK
International has forged lasting relationships with clients across the globe.

The company's product portfolio boasts a diverse range of leather goods, spanning from
timeless accessories to bespoke furniture pieces, each meticulously crafted to perfection.
With a keen eye for detail and an ethos rooted in sustainability, ISK International continues to
captivate audiences with its impeccable creations, earning accolades and admiration from
industry peers and patrons alike.

Driven by a passion for excellence and a quest for innovation, ISK International remains
poised at the forefront of the leather work industry, continually pushing boundaries, exploring
new horizons, and reaffirming its position as a beacon of quality and craftsmanship in an
ever-evolving market landscape.
 ACCOUNTING SYSTEM AND PROCESS

The accounting system and processes within ISK International are pivotal in ensuring
accurate financial record-keeping, facilitating informed decision-making, and maintaining
regulatory compliance. Here's an overview of ISK International's accounting system and
processes:

1. Financial Transactions Recording:

 Sales and Revenue: ISK International meticulously records all sales transactions,
whether through retail outlets, e-commerce platforms, or wholesale channels. Sales
invoices are generated promptly upon completion of a transaction.

 Purchases and Expenses: The company records all purchases of raw materials,
equipment, and services. Supplier invoices are processed and matched with purchase
orders to ensure accuracy.

 Payroll and Employee Expenses: Employee salaries, benefits, and other expenses
are accurately recorded in the accounting system. Payroll processing is conducted in
compliance with labor laws and regulations.

2. Financial Reporting Procedures:

 Periodic Financial Statements: ISK International prepares comprehensive financial

statements, including income statements, balance sheets, and cash flow statements, on
a monthly, quarterly, and annual basis. These statements provide insights into the
company's financial performance and position.
  Management Reports: In addition to statutory financial statements, ISK
International generates management reports tailored to specific stakeholders' needs.
These reports may include variance analysis, sales reports, and budget vs. actual
comparisons.

3. Use of Accounting Software:

 Accounting Software: ISK International utilizes advanced accounting software, such

as [software name], to streamline its accounting processes. The software automates
routine tasks, enhances data accuracy, and facilitates real-time financial reporting.

 Integration with Other Systems: The accounting software is seamlessly integrated

with other business systems, such as inventory management and sales tracking
software, to ensure data consistency across departments.

4. Internal Controls and Checks:

 Segregation of Duties: ISK International maintains a robust system of internal

controls, including segregation of duties, to prevent fraud and errors. Different
employees are responsible for initiating, authorizing, and recording financial
transactions.

 Approval Hierarchies: Financial transactions, especially expenditures beyond

certain thresholds, require approval from designated authorities within the company
hierarchy.
  Regular Audits: The company conducts periodic internal audits to assess the
effectiveness of internal controls, identify areas of improvement, and ensure
compliance with accounting standards and regulations.

5. Compliance with Accounting Standards:

 GAAP Compliance: ISK International adheres to Generally Accepted Accounting

Principles (GAAP) to ensure the accuracy, consistency, and comparability of its
financial statements.

 IFRS Adoption: If operating in an international context, ISK International may adopt

International Financial Reporting Standards (IFRS) to align its financial reporting
practices with global standards.

6. Financial Data Security:

 Data Encryption: Financial data stored in the accounting system is encrypted to

prevent unauthorized access and ensure data security.

 Access Controls: Access to sensitive financial information is restricted to authorized

personnel only, with user roles and permissions configured based on job
responsibilities.

 Backup and Disaster Recovery: Regular data backups and disaster recovery plans
are in place to safeguard financial data against unforeseen events such as system
failures or cyber-attacks.
 FINANCIAL ANALYSIS

Financial analysis is essential for evaluating the performance, solvency, and profitability of
ISK International. By examining key financial metrics and trends, stakeholders can make
informed decisions and identify areas for improvement. Here's a comprehensive financial
analysis of ISK International:

1. Profitability Analysis:

 Gross Profit Margin: Calculated by dividing gross profit by revenue, the gross profit
margin indicates the percentage of revenue retained after deducting the cost of goods
sold (COGS). A higher gross profit margin signifies better cost management and
pricing strategy.

Net Profit Margin: The net profit margin, derived by dividing net income by revenue,
measures the percentage of revenue that translates into profit after accounting for all
expenses, including operating expenses, taxes, and interest. A rising net profit margin
indicates improved operational efficiency and profitability.

2. Liquidity and Solvency Ratios:

 Current Ratio: The current ratio, obtained by dividing current assets by current
liabilities, assesses ISK International's ability to meet its short-term obligations. A
ratio greater than 1 indicates a healthy liquidity position.

 Debt-to-Equity Ratio: The debt-to-equity ratio, calculated by dividing total debt by

shareholders' equity, evaluates the proportion of financing provided by creditors
 versus shareholders. Lower debt-to-equity ratios indicate lower financial risk and
higher solvency.

3. Efficiency Ratios:

 Inventory Turnover Ratio: The inventory turnover ratio measures the number of
times ISK International sells and replaces its inventory within a given period. A
higher inventory turnover ratio suggests efficient inventory management and faster
product turnover.

 Accounts Receivable Turnover: This ratio assesses how efficiently ISK

International collects payments from customers by dividing credit sales by the
average accounts receivable. A higher accounts receivable turnover ratio indicates
effective credit management and timely collections.

4. Trend Analysis:

 Revenue Growth: Analyzing ISK International's revenue growth over multiple

periods helps identify emerging trends and assess the company's ability to capture
market share and expand its customer base.

 Profitability Trends: Examining trends in gross profit margin, net profit margin, and
other profitability metrics provides insights into ISK International's operational
efficiency and long-term sustainability.
5. Comparative Analysis with Industry Standards:

 Benchmarking: Comparing ISK International's financial performance metrics with

industry benchmarks allows stakeholders to gauge the company's competitiveness,
efficiency, and financial health relative to its peers.

 Identifying Deviations: Significant deviations from industry averages may indicate

areas where ISK International excels or areas requiring attention and improvement.

By conducting a comprehensive financial analysis, stakeholders gain valuable insights into

ISK International's financial health, operational efficiency, and growth prospects. This
analysis serves as a foundation for strategic decision-making, performance evaluation, and
continuous improvement initiatives within the company. Moving forward, ISK International
can leverage these insights to capitalize on strengths, address weaknesses, and navigate
challenges effectively in the competitive landscape of the leather work industry.
 BUDGETING AND FORECASTING

Budgeting and forecasting play a pivotal role in ISK International's financial management
strategy, providing a roadmap for resource allocation, expense control, and revenue
optimization. Here's an overview of ISK International's budgeting and forecasting processes:

1. Preparation of Annual Budgets:

 Sales Forecasting: ISK International begins the budgeting process by forecasting

sales revenues for the upcoming fiscal year. This involves analyzing historical sales
data, market trends, and customer preferences to develop realistic sales projections for
each product category and market segment.

 Expense Budgets: Once sales forecasts are determined, ISK International prepares
detailed expense budgets covering all operational costs, including raw materials,
labor, overhead expenses, marketing expenditures, and administrative expenses. Each
department is allocated a budget based on its operational needs and strategic
priorities.

 Capital Expenditure Budget: In addition to operating expenses, ISK International

allocates funds for capital expenditures, such as machinery upgrades, technology
investments, and facility expansions. Capital expenditure budgets are aligned with the
company's long-term growth objectives and investment plans.
2. Variance Analysis:

 Monthly Performance Reviews: Throughout the fiscal year, ISK International

conducts monthly variance analysis to compare actual financial results against
budgeted figures. Significant variances are investigated to identify the underlying
causes and take corrective actions as needed.

 Flexible Budgeting: ISK International employs a flexible budgeting approach that

adjusts budgeted targets based on changes in business conditions, market dynamics,
and unforeseen events. This allows the company to adapt to evolving circumstances
while maintaining financial control.

3. Rolling Forecasts:

 Dynamic Forecasting: In addition to annual budgets, ISK International utilizes

rolling forecasts to project financial performance over the short to medium term.
Rolling forecasts are updated regularly to incorporate the latest market data, sales
trends, and operational insights, providing management with real-time visibility into
future financial outcomes.

 Scenario Analysis: ISK International conducts scenario analysis as part of its rolling
forecasting process, simulating various business scenarios and assessing their
potential impact on financial results. By analyzing best-case, worst-case, and most
likely scenarios, the company can proactively mitigate risks and capitalize on
opportunities.
4. Budgetary Control Measures:

 Expense Monitoring: ISK International implements stringent budgetary control

measures to monitor and control expenses effectively. Departmental managers are
responsible for adhering to budgeted expenditure limits and seeking approval for any
deviations from the budget.

 Cost Efficiency Initiatives: The company actively seeks opportunities to improve

cost efficiency and reduce wastage across its operations. This may involve
renegotiating supplier contracts, optimizing production processes, and implementing
lean management principles to minimize costs while maintaining quality standards.

Budgeting and forecasting serve as essential tools in ISK International's financial planning
and decision-making processes, enabling the company to allocate resources efficiently,
monitor performance effectively, and adapt to changing market conditions. By maintaining a
robust budgeting framework, conducting regular variance analysis, and embracing rolling
forecasting techniques, ISK International remains agile and resilient in pursuit of its strategic
objectives amidst the dynamic landscape of the leather work industry.
 COST ANALYSIS

Cost analysis is critical for ISK International to understand and manage its cost structure
effectively, identify cost drivers, and optimize operational efficiency. Here's an overview of
ISK International's cost analysis process:

1. Cost Classification:

Fixed Costs: These are costs that remain constant regardless of the level of production or
sales volume. Examples include rent, salaries of permanent employees, and insurance
premiums.

Variable Costs: Variable costs fluctuate in direct proportion to changes in production or

sales volume. Examples include raw materials, direct labor, and sales commissions.

Semi-Variable Costs: Semi-variable costs have both fixed and variable components. For
example, utilities may have a fixed base rate plus variable charges based on usage.

2. Cost Behavior Analysis:

Cost-Volume-Profit (CVP) Analysis: CVP analysis helps ISK International understand how
changes in sales volume affect costs, revenues, and profitability. By calculating the
breakeven point and analyzing the margin of safety, the company can make informed pricing
and production decisions.
Contribution Margin Analysis: Contribution margin represents the amount of revenue
remaining after variable costs are deducted. ISK International uses contribution margin
analysis to assess the profitability of individual products or product lines and make decisions
about resource allocation and product mix.

3. Activity-Based Costing (ABC):

Identification of Cost Drivers: ISK International uses activity-based costing to allocate

indirect costs to products or services based on the activities that drive those costs. This allows
the company to more accurately assign costs and make pricing decisions that reflect the true
cost of production.

Cost Reduction Opportunities: By identifying activities that consume resources

inefficiently or unnecessarily, ISK International can uncover opportunities to streamline
processes, eliminate waste, and reduce costs without sacrificing quality or customer
satisfaction.

4. Cost Control Measures:

Inventory Management: ISK International implements inventory management techniques

such as just-in-time (JIT) inventory systems to minimize carrying costs and reduce the risk of
obsolete inventory. By optimizing inventory levels, the company can free up working capital
and improve cash flow.

Supplier Negotiations: The company negotiates favorable terms with suppliers to obtain the
best possible prices for raw materials and components. Bulk purchasing, long-term contracts,
and supplier partnerships are strategies employed to lower procurement costs and enhance
supply chain efficiency.
 INTERNAL AUDIT AND COMPLIANCE

Internal audit and compliance are essential components of ISK International's governance
framework, ensuring adherence to regulatory requirements, mitigating risks, and safeguarding
the company's assets. Here's an overview of ISK International's internal audit and compliance
practices:

1. Internal Audit Procedures:

Risk-Based Approach: ISK International conducts internal audits using a risk-based

approach, focusing on areas with the highest potential impact on the company's objectives
and financial integrity. This includes areas such as financial reporting, operational processes,
and compliance with laws and regulations.

Audit Planning: Prior to conducting audits, ISK International develops a comprehensive

audit plan outlining the scope, objectives, and methodologies for each audit engagement. The
audit plan is based on a thorough risk assessment and input from key stakeholders.

Audit Execution: Internal auditors perform fieldwork activities, including documentation

review, process walkthroughs, and testing of controls. They assess the adequacy and
effectiveness of internal controls, identify control weaknesses or deficiencies, and provide
recommendations for improvement.
2. Compliance with Accounting Standards:

GAAP Adherence: ISK International ensures compliance with Generally Accepted

Accounting Principles (GAAP) in the preparation of financial statements and reporting
practices. This includes adherence to relevant accounting standards and guidelines issued by
regulatory bodies.

IFRS Adoption (if applicable): If operating in an international context, ISK International

may adopt International Financial Reporting Standards (IFRS) to align its financial reporting
practices with global standards. Compliance with IFRS ensures transparency and
comparability of financial information.

3. Risk Assessment and Mitigation:

Risk Identification: ISK International conducts periodic risk assessments to identify

potential threats to the achievement of its objectives. Risks may include financial risks (e.g.,
credit risk, market risk), operational risks, compliance risks, and strategic risks.

Risk Mitigation Strategies: Upon identifying risks, ISK International develops and
implements risk mitigation strategies to minimize the likelihood and impact of adverse
events. This may involve implementing additional controls, revising policies and procedures,
or transferring risks through insurance.

4. Compliance with Laws and Regulations:

Legal Compliance: ISK International ensures compliance with relevant laws, regulations,
and industry standards governing its operations. This includes compliance with tax laws,
labor laws, environmental regulations, and consumer protection laws.
Ethical Standards: The company upholds high ethical standards in its business practices and
expects employees to adhere to a code of conduct that promotes integrity, transparency, and
accountability.

5. Reporting and Follow-Up:

Audit Reports: Following completion of audit procedures, ISK International prepares

detailed audit reports summarizing findings, conclusions, and recommendations. These
reports are presented to senior management and the board of directors for review and action.

Follow-Up Actions: Management is responsible for implementing corrective actions in

response to audit findings and recommendations. ISK International tracks the implementation
of corrective measures and conducts follow-up audits to ensure effectiveness.

Internal audit and compliance are integral components of ISK International's governance

structure, providing assurance to stakeholders regarding the integrity of financial reporting,

effectiveness of internal controls, and adherence to regulatory requirements. By conducting

risk-based audits, ensuring compliance with accounting standards and regulations, and

implementing robust risk mitigation measures, ISK International strengthens its internal

control environment and enhances its overall governance framework.

 TAXATION

Taxation is a crucial aspect of ISK International's financial management strategy,

encompassing various taxes that the company is subject to and ensuring compliance with tax
laws and regulations. Here's an overview of ISK International's approach to taxation:

1. Corporate Taxation:

Tax Planning: ISK International engages in tax planning strategies to minimize its tax
liability while remaining compliant with applicable laws and regulations. This may involve
optimizing the use of tax deductions, credits, and incentives available under the tax code.

Tax Compliance: The company ensures timely and accurate filing of corporate tax returns,
adhering to the requirements of the tax authorities. Tax compliance includes the preparation
of financial statements in accordance with tax laws and the calculation of taxable income.

Tax Payments: ISK International fulfills its tax obligations by making timely payments of
corporate income tax based on the applicable tax rates and taxable income determined in
accordance with tax laws.

2. Value Added Tax (VAT):

VAT Registration: If applicable, ISK International registers for Value Added Tax (VAT) in
jurisdictions where it conducts business, ensuring compliance with VAT regulations and
requirements.
VAT Compliance: The company collects VAT on sales of goods and services, remitting the
collected VAT to the tax authorities within the specified deadlines. Additionally, ISK
International ensures proper documentation and record-keeping to support VAT filings and
compliance.

3. Employee Taxes:

Payroll Taxes: ISK International withholds payroll taxes from employee wages, including
income tax, social security contributions, and other applicable taxes. The company remits
these taxes to the relevant tax authorities on behalf of its employees.

Employee Benefits Taxation: The company complies with tax laws governing employee
benefits, such as health insurance premiums, retirement contributions, and fringe benefits,
ensuring accurate reporting and withholding of taxes.

4. Indirect Taxes:

Customs Duties: If ISK International engages in international trade, the company complies
with customs duties and import/export regulations, including the payment of duties on
imported goods and compliance with customs documentation requirements.

Excise Taxes: If applicable, ISK International ensures compliance with excise tax laws
governing specific goods or services subject to excise taxation, such as luxury goods or
environmentally harmful products.
5. Tax Compliance and Reporting:

Tax Filings: ISK International prepares and files tax returns accurately and on time,
complying with the reporting requirements of the tax authorities. This includes annual
corporate tax returns, VAT returns, payroll tax returns, and any other required filings.

Tax Audits and Investigations: The company cooperates with tax authorities during tax
audits and investigations, providing necessary documentation and information to support tax
filings and compliance.

Taxation is a complex and ever-evolving aspect of ISK International's financial management,

requiring diligent compliance with tax laws and regulations while optimizing tax efficiency.

By engaging in tax planning, ensuring compliance with various taxes, and maintaining

accurate tax records and filings, ISK International minimizes tax risks and fulfills its tax

obligations effectively, contributing to its overall financial health and sustainability.

 RISK MANAGEMENT

Risk management is a critical aspect of ISK International's strategic decision-making process,

involving the identification, assessment, and mitigation of potential risks that could impact
the company's objectives and operations. Here's an overview of ISK International's approach
to risk management:

1. Risk Identification:

Internal Risks: ISK International identifies internal risks arising from its operations,
processes, and organizational structure. These may include operational inefficiencies, supply
chain disruptions, human resource issues, and technology failures.

External Risks: The company assesses external risks stemming from the business
environment, market dynamics, regulatory changes, and macroeconomic factors. External
risks may include shifts in consumer preferences, changes in government policies, economic
downturns, and geopolitical instability.

2. Risk Assessment:

Risk Prioritization: ISK International evaluates the potential impact and likelihood of
identified risks to prioritize them based on their significance to the company's objectives and
operations. Risks with high impact and high likelihood are given greater attention and
allocated more resources for mitigation.
Quantitative and Qualitative Analysis: The company conducts both quantitative and
qualitative risk analysis to assess the financial and non-financial implications of identified
risks. This may involve using risk matrices, scenario analysis, and sensitivity analysis to
quantify and qualify risks.

3. Risk Mitigation:

Risk Mitigation Strategies: ISK International develops and implements risk mitigation
strategies to address identified risks and reduce their impact or likelihood of occurrence.
Mitigation strategies may include implementing additional controls, diversifying suppliers,
securing insurance coverage, and hedging against financial risks.

Contingency Planning: The company develops contingency plans to manage risks that
cannot be fully mitigated, outlining specific actions to be taken in response to adverse events.
Contingency plans help minimize the impact of risks on operations and ensure business
continuity.

4. Monitoring and Review:

Risk Monitoring: ISK International continuously monitors identified risks and their
mitigating controls to ensure they remain effective over time. Regular monitoring allows the
company to detect changes in risk exposure and take timely corrective actions as needed.

Performance Evaluation: The company conducts periodic reviews of its risk management
processes and practices to assess their effectiveness and identify areas for improvement.
Performance indicators, such as key risk indicators (KRIs) and risk mitigation effectiveness,
are used to evaluate the success of risk management efforts.
5. Integration with Strategic Planning:

Strategic Risk Assessment: ISK International integrates risk management into its strategic
planning process, considering risks and opportunities in decision-making. Strategic risk
assessments help the company identify potential threats and opportunities that could impact
its long-term objectives and strategic initiatives.

Risk-Informed Decision-Making: Risk assessments and mitigation plans inform decision-

making across all levels of the organization, ensuring that risks are adequately considered in
strategic, operational, and financial decisions.

Risk management is integral to ISK International's business operations and strategic decision-

making processes, enabling the company to anticipate, assess, and mitigate potential risks

effectively. By proactively identifying and addressing risks, ISK International strengthens its

resilience, safeguards its assets, and enhances its ability to achieve its objectives amidst the

dynamic and uncertain business environment of the leather work industry.

 RECOMMENDATIONS

Based on the analysis conducted on ISK International's accounting system, financial

performance, budgeting and forecasting, cost analysis, internal audit and compliance,
taxation, and risk management practices, the following recommendations are proposed to
enhance the company's financial management and overall performance:

1. Enhance Automation in Accounting Processes: Implement advanced accounting

software to streamline transaction recording, financial reporting, and compliance procedures.
Automation will improve efficiency, accuracy, and real-time access to financial data.

2. Invest in Training and Development: Provide comprehensive training programs for

employees involved in financial management, accounting, and compliance functions.
Continuous education will ensure staff competency, promote adherence to accounting
standards, and enhance overall performance.

3. Strengthen Internal Controls: Review and strengthen internal control procedures to

mitigate the risk of errors, fraud, and non-compliance. Implement segregation of duties,
regular internal audits, and strict approval processes to enhance control effectiveness.

4. Optimize Budgeting and Forecasting Processes: Enhance the accuracy and agility of
budgeting and forecasting by incorporating rolling forecasts, scenario analysis, and dynamic
budget adjustments. This will enable ISK International to adapt quickly to changing market
conditions and improve resource allocation decisions.

5. Conduct Comprehensive Cost Analysis: Conduct a detailed analysis of cost structures to

identify opportunities for cost optimization and efficiency improvements. Implement activity-
based costing methodologies to accurately allocate costs and improve pricing strategies.
6. Enhance Tax Planning Strategies: Engage tax experts to explore tax planning
opportunities, optimize tax deductions, and ensure compliance with tax laws and regulations.
Proactively manage tax risks and leverage available incentives to minimize tax liabilities.

7. Improve Risk Management Framework: Enhance the risk management framework by

integrating risk assessments into strategic planning processes, establishing clear risk
ownership, and regularly reviewing and updating risk mitigation strategies.

8. Promote Ethical Standards and Compliance Culture: Foster a culture of ethics and
compliance throughout the organization by promoting transparency, integrity, and
accountability. Provide regular ethics training and communication to employees to reinforce
ethical behavior and adherence to policies and regulations.

9. Monitor and Evaluate Performance: Establish key performance indicators (KPIs) to

monitor the effectiveness of financial management practices and initiatives. Conduct regular
performance reviews and benchmarking against industry standards to identify areas for
improvement and track progress over time.

10. Continuously Seek Innovation and Improvement: Encourage innovation and

continuous improvement in financial management practices by soliciting feedback from
employees, customers, and stakeholders. Stay abreast of industry trends, technological
advancements, and regulatory changes to adapt proactively and maintain competitiveness.

By implementing these recommendations, ISK International can strengthen its financial

management practices, mitigate risks, and position itself for sustainable growth and success
in the competitive landscape of the leather work industry.
 CONCLUSION

As an intern at ISK International, the experience has provided invaluable insights into the
intricacies of financial management within the dynamic environment of the leather work
industry. Through the analysis conducted on various aspects of the company's financial
operations, including its accounting system, financial performance, budgeting and
forecasting, cost analysis, internal audit and compliance, taxation, and risk management
practices, several key observations and recommendations have emerged.

ISK International demonstrates a commitment to excellence in financial management,

evidenced by its robust accounting system, adherence to regulatory requirements, and
proactive approach to risk mitigation. However, opportunities for improvement have been
identified, particularly in enhancing automation, strengthening internal controls, optimizing
budgeting and forecasting processes, and improving cost efficiency.

Moving forward, it is recommended that ISK International continues to invest in employee

training and development, leverages advanced technology for process automation, and fosters
a culture of ethics, compliance, and continuous improvement. By implementing these
recommendations, ISK International can further enhance its financial performance, mitigate
risks, and achieve sustainable growth and success in the competitive landscape of the leather
work industry.

As my internship at ISK International concludes, I am grateful for the opportunity to

contribute to the company's financial management initiatives and for the invaluable learning
experience gained. I look forward to applying the knowledge and skills acquired during this
internship to future endeavors in the field of accounting and finance.
 SUGGESTIONS

1. Continuous Training and Development: Implement regular training programs for

employees to enhance their skills and knowledge in accounting software, financial analysis,

and compliance regulations. This will ensure that the team stays updated with the latest

industry trends and practices.

2. Streamlined Communication Channels: Establish efficient communication channels

within the organization to facilitate collaboration and information sharing among different

departments. Utilize project management tools or internal communication platforms to

improve workflow and transparency.

3. Enhanced Risk Management Framework: Develop a comprehensive risk management

framework that includes regular risk assessments, risk mitigation strategies, and contingency

plans. This will help Swadeshi Footcare identify and address potential risks proactively,

minimizing their impact on business operations.

4. Investment in Technology: Consider investing in advanced accounting software or ERP

systems that offer integrated financial management capabilities. This will streamline

processes, improve data accuracy, and provide real-time insights for informed decision-

making.

5. Customer Relationship Management (CRM) System: Implement a CRM system to

effectively manage customer relationships, track sales activities, and analyze customer data.

This will enable Swadeshi Footcare to enhance customer satisfaction, identify new business

opportunities, and drive growth.