REPORT ON

ACCOUNTS & FINANCE

IN PREMIER
ENGINEERING WORKS
 Letter of Transmittal
Date
To
Name
Job
Clg
University

Sub: Submission of internship report on accounting practice of

Premier engineering works.

Dear Mam,
This is my pleasure to present my internship report. This report is an
outcome of the internship program that I have involved for Three
months (Thirteen weeks) in MEDI ROME Limited. I have tried my best
to prepare this report with providing all of my effort and to cover all
aspects regarding the matter.
Consequently, I am transmitting this report to your very concern.
Hopefully, you will notice the report informative approach as a hallmark
of my hard work. In case of any future clarification or elaboration
regarding this report I would welcome the opportunity to consult with
you to explore how my findings could best meet your needs.
 Acknowledgement

I want to acknowledge and most grateful to almighty god, the most

merciful blessing me with patience and tenacity of mind to complete the
Internship report which requirements for the degree successfully. Then, I
specially want to acknowledge B. V. Thanggavelu; Managing Director,
Premier Engineering Works, Chief Accountant and her assistant at
Laxminagar Head office for their tremendous support, guidance and
patience. Without their kind supervision, preparing this report would be
very difficult.
We are also thankful to them for providing us all the relevant and
available information to have a clear concept on the subject.
We would like to express our sincere gratitude to ouracademic
supervisorSaif Hossain, Lecturer, Sri Krishna arts and science college
,BRAC University for his constant guidance, supervision and feedbacks
which enabled us to prepare a well executed report. The following
persons also gave us important information which were necessary for
analysis and provided us with feedbacks, which helped us a lot in
preparing the report, their assistance is gratefully acknowledge: Ms.
Sreedevi and Mrs. Arthijone
Declaration
Certificate of supervisor
 Table of contents
 Executive summary

 Origin of report
 Background
 Objectives of study
 Methodology
 Limitations of study

 Organization profile
 Overview
 History
 Departments& branches
 Vision & mission
 Administration function

 Swot analysis
 Strength
 Weakness
 Opportunities
 Threats

 Job profile
 description of the job
 Specific responsibilities of job
 Critical observation

 Project part analysis

 Objectives
 Methodology
  Limitations

 Accounts and finance

 Analysis
 Predicament
 Recommendations
 Conclusion
 Reference
 Origin of study
Internship program is the most significant stage for a B.COM students.
The length of internship program is three months, which carries a
greatest learning technique to know about the business and cope up the
environment in such a way like trained employees. The experience that
got by an intern during the internship period will make them more
elegant and professional in their future job sector. We started my
internship at premier engineering works, head office, from 25th April,
2018 and finished at 30th may, 2018. The internship report focuses on
Account Management Team as well as its activities in premier
engineering works.
Background:
Internship has merged the theoretical and practical knowledge which is
important in our future life. For developing the practical knowledge I
want to do internship. As our educational system predominantly text
based, inclusion practical orientation program, as an academic
component is an exception to the norm. As the parties; educational
institution and the organization substantially benefit from such a
program. The process establishes networking contracts, which may help
student to get a job, which means students can train and prepare them for
the job market. Internship experience gives professional experience
which practical orientation provides positive development in
professional arena. In such a state of the affairs we join in premier
engineering works under the guidance of my supervisor M .A. HAI
HADI, Principal of this institute.
Objectives of study:
Broad Objectives:
To understand the functional activities of how the Accounts department
is conducted within the organization which change the work activities
and success of the academic work and their achievement for the
organization based on academic related programs.
Specific Objectives:
 To understand the function of Accounts department of premier
engineering works.
 This affiliation will help to get information from the activities of
different Department.
 To know how they maintain the national university’s professional
curriculum rules in their institute.
 To focus on their admission and key activities.
Methodology:
Data source:
Data for this report has been extracted from primary sources as well
as secondary sources.
Primary Data:
Primary Data will be collected Official records (files, rules &
regulation).
Secondary Data:
Majority of the data will be collected from Annual Report, Informal
discussions mainly with my supervisor, brochures, and PISFT official
web sites.
Limitations of study:
 Data availability could be another big issue here because company
might not want to disclose all the confidential information
regarding their managerial strategies and plans.
 Data from different sources were quite inconsistent which created
some problems making the report.
 Organization profile
Overview:
Leveraging on the experience and expertise of the professionals
working with them, they have carved a distinct position in
industry. Its professionals are very well aware of their duties and
responsibilities and ensure that the work assigned to them is
efficiently completed on time. Their team comprises quality
controllers, manufacturing experts, engineers, marketing
personnel, sales executives and other skilled and unskilled staff. In
order to keep their employees aware of the latest technological and
market changes, training sessions are conducted by them on
regular basis. They majorly export in UK.

The company is operating under the leadership of "Mr. B. V.

Thanggavelu" (Managing Director), since the time of its
establishment. Due to its transparent business dealings and ethical
business practices, they have strengthened their business
relationships with its valuable customers. In order to streamline all
its business operations, their dedicated team undertakes every task
with tremendous efforts in order to give the best to their customers.
 History:
Premier Engineering Works was established in the year 1970 and has
been delighting industry clients with its premium quality products.
They are prominent manufacturer, exporter, trader and
supplier of Pin Mill, Coating Pans, Conical Mixer, Powder
Mixer, Centrifugal Machine, Centrifugal Finishing Machine that
are manufactured using top grade material. Their work procedures are
in strict compliance with the current industry norms & ensure
delivery of a superior quality product to the client. Their state-of-the-
art infrastructure, highly energetic team of expert professionals & a
total customer centric approach are the main factors for our extreme
success in this industry.
Delhi
Established in the Year 1987 at New Rohtak Road (Delhi), Premier
Engineering Works is a most leading and popular Manufacturer
and Supplier of Pulverizers Machine, Ribbon Blender Mixer,
Pharmaceutical Machinery and Tray Dryer. Our range
includes Rotary Sifter, Hammer Grinder, Vibro Sifter, Pin Mill
Machine, Pin Mill and Hammer Grinder Mil etc. These machines
are manufactured with the help of advanced machines and
technology. Their products are highly longed for among our
customers for their optimum quality, easy installation and high
recital. Due to their sincerity and hard work, these machines are
contrived in accordance with global standards and offer to our
customers at very affordable rates.
Coimbatore
Established in the year 1991, "Premier Engineering Works", have
created a formidable base for our customers by offering them with the
 finest quality range of Industrial Heat Exchanger & Cooling
Equipment’s. They are one of the renowned names
in manufacturing, retailing, wholesaling and exporting wide range
of products like Heat Exchangers, Industrial Coolers, Industrial
Radiators, Oil Cooler, and Cooling Tower. Their unit is located in
Coimbatore, one of the major industrial cities in India. They have a
dedicated team of engineers for product developments. They are a
dominant player in its niche markets and rising to the expectation of
our valuable customers.
Departments and branches:
Departments
 Purchase department
 Sales department
 Human resource department
 Production and quality assurance department
 Accounts department
Purchase department:
Most major companies and even some government organizations have a
purchasing or procurement department as part of everyday operations.
These departments provide a service that is the backbone of many
manufacturing, retail, military and other industrial organizations.

The functions of purchasing department are varied and wide which are
based upon different approaches. The purchasing activities may be
divided into those that are always assigned to the purchasing department
and those that are sometimes assigned to some other department.
The followings are some of the important functions which are
necessary to be performed.

 Receiving indents

 Assessment of demand or description of need

 Selection of sources of supply

 Receiving of quotation

 Placing order

 Making delivery at the proper time by following up the order

 Verification of invoices

 Inspection of incoming materials

 Meeting transport requirements of incoming and outgoing

materials

 Maintaining purchasing records and files

 Reporting to top management

 Developing coordination among other departments

 Creating goodwill of the organization in the eyes of the suppliers.

Sales department:

Product, Pricing and Distribution Planning. They recommend modifying

or dropping products or services or adding new ones to the company's
mix, based on what customers want. A sales and
marketing department has the responsibility for deciding where the
company should sell and what its prices should be.The mainfunction of a
sales department is to effect sales. It is concerned with the transfer of
ownership or merchandize on terms satisfactory to both the buyer and
seller. This has to be done at the lowest possible cost.
Sales Promotion:

Sales promotion is a direct and immediate inducement that adds an extra

value to the product so that it prompts the dealers, distributors or
ultimate consumers to buy the product. Sales promotion activities are
complementary to advertising and personal selling efforts.

Sales promotion objectives are:

 For introducing new products

 For unloading accumulated inventory.

 For overcoming a competitive situation.

 For overcoming seasonal slumps/decline,

 As a support to the advertising effort.

Human resource department:

Creating a complement and healthy working environment, Premier
Engineering Works values its Human Assets and committed to their
growth and prosperity. The success of any business organization
depends on the quality of its human resources i.e. their caliber and
commitment. Premier Engineering Works is committed to ensure that
the Company is capable of continued growth and profitability by
satisfying customers' needs and to provide employees with high level of
job satisfaction. Consequently, Company's personnel initiatives are
designed to encourage open communication, creativity, innovation and
initiative. Because the Company believes well trained and proactive
employees with high level of job satisfaction will ultimately contribute
to the increase in profitability of the Company.
Major functions of this department are:
 Recruiting, transferring, promoting and terminating of
employee.
 Arranging training both in-house and outside.
 Personnel policy evaluation and implementation.
 Maintaining protocol, counseling and discipline of organization.
 Legal aspects.
Accounts department
This division is responsible for ensuring optimum and most efficient
uses of the company's resources through various controlling and
monitoring activities. It is headed by the Controller & Finance Director,
and consists of the Audit, Corporate Affairs, Credit, Commercial, MIS
and Accounts. There have a lot of activities of individual department.
In the finance & accounts department they are responsible for control
cash flows operation. They are responsible for makes sure that, the
operation running smoothly.
Their general activities are describing below:
Accounts division creates and maintains records of company
transactions for both internal and external audiences. The Accounts unit
may be considered a department by itself, for it has the following
functional units - Sales Accounts, Costing & Inventory, Payables, Cash
Management, and General Ledger. The company accounts represent the
financial statements. The investment in associate companies was
accounted under the cost method. The carrying value of associate
company investments is shown at cost and only dividend income
received from associate companies recognized as income.
Production and quality assurance department:
The production department turns raw material or other inputs into final
products following a series of processes.This involves the purchasing of
the raw materials and effective planning of a long line of production
processes.These production processes need to be monitored to make sure
every product is produced correctly — including the correct amount of
the product, the correct quality standards of the product, and so on.
Depending on the size of the company, these production processes
may be split over several different departments.

In larger organizations, a quality assurance team may be commissioned.

With fierce competition between many biotechnology and
biopharmaceuticalcompanies, quality assurance has become the market
differentiator for most products and services.

Quality assurance departments take responsibility for defining the

procedures for achieving and improving consistent product quality.

These departments are constantly working to enhance the existing quality

of products by optimizing the existing production processes and by
introducing new processes.
 Vision and mission
VISION

"To achieve concrete milestones in thermal power,

construction and engineering and make creditable impact in
these fields at the national level".
Empowering through power & infrastructure.

MISSION
"To display tremendous capabilities of working in
diversified fields and derive excellent performances
consistently through dedicated and timely managed precise
efforts".
Empowering through power & infrastructure.
 Administrative function:
The functions of administrative department are:
 Accounts
 Security service
 Maintain work order
 Take report from accounts & admission officer
 Hiring and firing
 General service
 Training procedure
 Maintain organization rules and regulations
 SWOT ANALYSIS

Strength:

 Reputation of the company

 Excellent client service
 Strong relationship with existing clients
 Diversified product line
 Wide network of branches

Weakness:
 Limited financial capacity
 Lack of experienced personal
 Few employee motivational program
 Lack of job commitment of the employees

Opportunity:
 J
 Ik
 Y
 Yg
Threat:
 The market is becoming dreadfully competitive
T
g
 JOB PROFILE
Description of the job:
our job in premier engineering works Ltd was to work in Account
Management Department. We were assisting an account manager. First
few days we have to do anything except observing them and we were
asked to learn by communicating and staying with Account management
department. At the first month our primary work was to learn how to
operate a customize software which is used for maintaining company
account. Then, we practically involved in work with the account
management team. we was mainly handling cheque register book where
we kept record of each cheque received from client. In addition we have
to make a notification report every day according to the cheques’
drawing date. It is worth to mention that, we had great opportunity to be
a part of audit of the company at the end of the year. At that time our
responsibility was to find out the total account receivable of the year
2016 and 2017 with detail break up. In premier engineering works Ltd
both account management and financial planning is done by account
management team. To be part of the team it is responsible for
maintaining an efficient and accurate Accounting function.
Specific responsibilities given in jobs:

 Cross checking :
Sales book
Purchase book
Tax paid
 Preparing bank reconciliation statement
 verify calculations
 maintained cheque book register
Critical Observation
The Working environment is very friendly and employees are ready to
help all the time. There is a good chain of command always followed.
Moreover, premier engineering works Ltd has software to maintain their
total accounting system while company is not relying on that software
rather then keeping record of transaction manually. This manual method
is time consuming and laborious. From my point of view I think the
company should more efficiently use the customize software that they
have. By upgrading and using software might fruitful for the company.
 Project part analysis

Objective of the Report

The broad objective of the report is to know about the Account Management
Department and what are the activities mostly done by this department. Moreover,
pointed out the way of practice of accounting policy in Medi Rome ltd. I tried my
best to investigate and compare practical accounting practice and real
circumstance. Lastly, I figure out the concise scenario of the organizations
accounting practice and include some recommendations.

Methodology
Throughout the internship period I worked at Account management department
and earned experience on that department. By working as a member of this
department, I had opportunity to accumulate lot of information; to some extent I
had excess to see company’s voucher, ledger, audit report and so forth. It is worth
to mention that, the members of the office were very informative. Moreover,
studying in university course, course text book and search engine was helpful to
accumulate theoretical knowledge with practical.

Limitations
There are certain limitations in this report; otherwise the report including the
analysis might be more accurate and beneficial. At first, it was difficult to get an
appointment with auditor as an internee like me. In addition, the report could be
more informative if I were able to visit the head office, Rome Corporation limited.
Besides, during my internship period I neither visit company’s store nor
acknowledge about the company’s cost account, inventory report or how it is
maintained. As a result, this report does not carry any information concerning to
the company’s cost account and inventory report. Several time I felt that, company
maintain some privacy while giving information, hence they do not disclose many
thing to an internee. Because of lack of information, I have to make some
assumptions that may cause few errors in the report. In spite of, all these
limitations, I have tried to put my best effort as far as possible.
 (POLICY GUIDELINE FOR FINANCE AND ACCOUNTS)

Introduction

This manual is prepared as a guideline for the operating activities of finance &
accounts department of the company. This will lay the foundation for a system of
internal accounting controls. Examples of the key documentation are included in
this manual to achieve the objectives of the department. This manual is intended to
be used only as an aid and should not be considered a replacement for management
involvement.

Cash receipts

Cash receipts through company’s money receipts. In corporate finance and

accounts department each deposit must be entered into a collection register
manually. After the entry the receipts are handed over to the concerned revenue
section for posting to match against revenue. Collection register will generate cash
collection report.

Cash disbursement

Cash disbursement should be controlled strictly as this is a liquid asset. Basic

control of cash disbursement should be as follows:

1. Management will approve payment vouchers.

2. All payments especially vendor payment must be made through cheque.

3. The signatories of the cheque will be top management and top level staff is
authorized.

4. No cheque should be prepared without the approval of payment vouchers.

Account payable

1.An authorized individual, who indicated approval by initialing the invoice,

should approve invoices for payment in writing after review.

2. Checks maybe generated manually.

 3. Supporting documents referred to as voucher to as voucher are attached to the
cheque for signing. The documents usually contain as:-  Purchase order 
Receiving report  Invoice

4. Money receipt should be received when payment is made. 5. Source tax should
be deducted, if applicable, form the payment.

Recurring expenses

Recurring expenses are of different types. They may be one time in a month,
occasionally and regular. The monthly ones are utilities bills and examples of
regular type are conveyance, entertainment, etc. expenses in connection with
business travel, training, promotional etc. are occasional expenses in nature.

(i) Monthly
Monthly expenses should be paid on the basis of invoice/ bill
submitted by the authority concerned. Payment is this regard should
be ensured to the designated deposit centers within the stipulated time
in order to avoid disruption of services.
(ii) Occasional
Occasional expenses are incurred for specific purposes in this regard
are as follows:
 Expense report should be completed on a timely basis
 Receipts for expensed should be attached to the expenses
report prior to the expense report.
 Date, time and business purpose should be stated.
 The staff should sign and dated the expense report prior to its
submission to finance and accounts department.
 Before disbursement or adjustment of advance made against
him/her, the expenses report should be approved by the
authority.

Payroll

The salary of the staff should be paid on the basis of the employment agreement
with the company.

Imp rest cash

 Imp rest cash fund is a revolving fund maintained at a constant amount to cover
the small cash expenditures such as conveyance, entertainment, minor office
supplies etc. At all times the general ledger imp rest fund account balance in the
name of respective should be the amount of cash that was originally advanced. The
following procedures are helpful in maintaining the imp rest cash fund account: 1.
To establish the imp rest fund account, make a fund available to the in charge for
an amount sufficient to cover small expenditures for a designated period of time.

2. The in charge is required to provide expenditure vouchers to corporate office

immediately after the close of designated period of time.

3. The concerned section of finance and accounts department should process the
vouchers and send to the proper authority for approval.

4. Discrepancy detected at the examination of vouchers.

5.The amount in the vouchers as found and approved should be made available to
the concerned after posting to the concerned account.

4.8 Advances

There may require some unavoidable advance such as: Advance to vendor for
specific product. Advance to employee on humanitarian ground Whatever the
nature of advance this should be made available to the beneficiary after proper
approval from the top management of the company. The department should take
necessary steps to realize the advance as per understanding.

4.9 Prepayments & security deposits

Prepayments required for rental office should be made available as per agreement
on approval by the management. The department of finance and accounts should
adjust the prepayments as per agreement. No lapse in this regard will be allowed.
In addition, there require some security deposits for securing business telephone,
customs etc. these should be made through cheque subject to the approval from the
management. The corporate finance and accounts department will be responsible to
bring back the same at the end of the stipulated period. In addition, the transactions
should be accounted for properly.

Investment
Investment policies are too complex to fully discuss here, but controls for
managing investments should include the following:

• The finance and accounts department is to implement the investment decision to

the company.

• The present policy in this regard is to place fund in fixed deposit reserve with
banks and in saving certificated issued by the government.

• The investment will be made when the board of directors takes decision.

• The interest earning in this regard will be accounted for on maturity of the
investment.

4.11 General ledger

The general ledger (G/L) accumulated all accounting activities for an accounting
period. The importance of the (G/L) systems become apparent in light of a double
entry objective that:-

(a) All transactions are properly accumulated, classified, summarized and

recorded in the accounts and,
(b) Financial transactions and reports accurately reflect the details of all
operations. As evidenced by the objective, the activities of a (G/L)
system are varied, ranging from the preparation of journal entries to the
production of the final financial statements. The basic flow of events for
a (G/L) system is simple, revolving mainly around the journal entry.
Initially journal entries are prepared by summarizing the period’s
activity. Journal entries are then posted to the (G/L). Reports are
generated from the (G/L), reviewed for accuracy and any variances are
explained. Finally, financial statements are produced from the final
general ledger. Because of the impact of the (G/L) system, the following
key controls are imperative:-
 Approval of all journal entries by a designated authority before
posting.
 Checking of validation sheet of journal entries to confirm the accuracy
of the posting.
 Review of month end financial statements by departmental heads.
Accounting Activities

As stated above, summarization of the month’s activities is done via journal entry.
The different accounting activities that give rise to journal entries are as follows:-

Cash activities

Cash receipts:

Cash payment is received through money receipt from different

sources o Cash sales o Credit collection All receipts either cash or cheque must be
entered to the respective revenue centers individually. At the end of the month
journal entries of accumulated figure is to be posted to the (G/L) accounts.

Disbursements:

Posting is required at the time of each payment individually to the respective head
of accounts.

Operating activities

Accounts payable:

There are some recurring expenses identifies as accounts payable such as

 Direct cost
 General cost- Salary, Rent etc.
This type of expenses is to be recorded on cash basis in the existing data
base file. At the end of month this is to be treated as payment against
account payable in the reporting software.
Account receivable:

Credit sales will be treated as accounts receivable and at month end

journal entries receivable is to be posted to the (G/L) in order of revenue
center.
Payroll:

Salary for the working month is to be paid and at the end of each month
payable account for salary is to be posted and when paid payment is to be
adjusted in reporting software. 30
 Depreciation:

Depreciation is to be charged ono Fixed assets: Building, leasehold improvement,

plant and machinery, motor vehicles, furniture equipment and tools as per journal
entry to be posted in the reporting software.

Prepaid/ Advanced:

It is to be ensured at the time of posting of payment/ adjustment that prepaid/

advance account (such as prepaid office rent, operational advances) is properly
accounted for.

Additional entry:
Any additional journal entry, if required must be supported by proper
documentation
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