PROJECT

SUBMITTED BY: SUNNY JOSHI

24/7
Shop Name: 24/7 , Rajouri garden New delhi
Note on Observations arising from my visit:
I visited the Snowbell store on 30th September 2020 with a small questionnaire and the owner was kind enough to accommodate my questions
and gave me enough time to understand how the business operations are run. The business has a registered:
PAN i.e. Permanent Account Number registered with the Income Tax Department which means that the company regularly files its annual
income tax returns.
GST i.e. Goods and Service Tax Number registered with GST Department which means it files its monthly GST returns regularly and pays the
tax as well. Also, since the threshold for GST registration is Rs. 40.00 Lakhs of sales per annum, thus, it appears that the sales of this store
exceeds Rs. 40.00 Lakhs
ROC i.e. Registrar of Companies, being a company it gets its accounts audited annually and submits the necessary returns to the ROC office.
Snowbell uses accounting software “Easy Sol”. This software enables both the accounting of business transactions as well as recording of
inventory. I could see that the inventory is of three types:
Medicinal stocks such as pills, oils, syrups, balms etc.
Cosmetics such as creams, lotions, shampoos, conditioners, deodorants, men’s shaving needs of popular brands such as Ponds, Dove, Lakme
etc.
Processed health drinks such as Bournvita, Boost etc.
The software gives on line information about the stock value and quantity. Twice a day the store owner prepares a reorder form based on the
sales and the stocks as shown by “Easysol”. Since the stocks quantity is online, the reordering becomes prompt too. The reorder form is
promptly sent by whatsapp to the distributor who supplies the required medicines so that the stocks are updated daily and the customer
requirements are duly met. Further, to supply cosmetics and health drinks the store has made arrangements with the distributor to make visits
twice a week to update stocks. In the event of a short stock, payment from customer is taken and delivery is made at home.
The store also is well organized physically, as Medicine is stocked according to brands and thereafter alphabetically. This way locating the
medicine becomes easy. Also, other stocks are stacked in a nice appealing way according to brands.
 
Thus, in conclusion, it is apparent that:
The company uses an accounting software to update its business transactions.
The software gives a daily Trial Balance and Profit and Loss Account and Balance Sheet. This way, the company is
able to have a monthly / quarterly / half yearly and annual accounts.
The inventory management is also done through the software and a prompt analysis is done.
Reordering system is very prompt.
The company is able to file its Income Tax Returns, GST returns and ROC returns as per legal requirements since the
data is online and maintained very well.
The company uses the services of a Chartered Accountant for its professional services to comply for all statutory and
legal requirements.