Internship Project Report

On

A STUDY ON ACCOUNTING PRACTICES OF

HEARTCARE TECHNOLOGIES PRIVATE LIMITED

(Internship and Training 4th Semester 30 Days)

B.COM (ACCOUNTING & FINANCE) DEGREE

Of

UNIVERSITY OF MADRAS

SUBMITTED BY

B.SATHYA BAMA U16AFE046

SHRIMATHI DEVKUNVAR NANALAL BHATT VAISHNAV

COLLEGE FOR WOMEN

Re-Accredited with A+ Grade by NAAC

Chromepet, Chennai-600044

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 CERTIFICATE

This is to certify that this Internship Report on “A Study on Accounting Practices of

Heartcare Technologies Private Limited” submitted by B.Sathya Bama U16AFE046 in
partial fulfilment of curriculum of B.Com (Accounting & Finance) course 2016-2019,
Shrimathi Devkunvar Nanalal Bhatt Vaishnav College for Women, Chennai-600044 is her
original work.

CLASS-IN-CHARGE HEAD OF THE INTERNAL

DEPARTMENT EXAMINER

(B.Com

Accounting & Finance)

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 DECLARATION

I, B.SATHYA BAMA (U16AFE046), a bonafide student of III B.Com ( Accounting &

Finance), Shrimathi Devkunvar Nanalal Bhatt Vaishnav College for Women,Chennai-600044
would like to declare that the internship project titled “A STUDY ON ACCOUNTING
PRACTICES OF HEARTCARE TECHNOLOGIES PRIVATE LIMITED” in partial
fulfilment of B.Com (Accounting & Finance) is my original work.

PLACE:

DATE:

SIGNATURE OF THE STUDENT

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 ACKNOWLEDGEMENT

I extend my heartfelt thanks to my Principal Dr. (Mrs) (Tmt.)

V.Varalakshmi, M.Sc., M.Phil., Ph.D., for giving me an opportunity to study
in this esteemed institution.

I would like to express my acknowledgement to Dr. (Mrs.) R.Savithri,

M.Com., M.Phil., Ph.D.Head, Research Department of Commerce and
Dean of Commerce.

I would like to express my sincere thanks to the Head of the Department of

B.Com (Accounting & Finance) Dr. (Mrs). Y.Kalavani, M.Com., M.Phil.,
Ph.D., and all other staff members of B.Com (Accounting & Finance) for
ensuring the opportunity and sufficient permissions for the completion of the
work.

I wish to express my gratitude to the officials and other staff members of

Heartcare Technologies Private Limited who rendered their help during the
period of our project work.

I would also thank the Almighty for his blessings throughout my endeavours.

PLACE:

DATE:

SIGNATURE OF THE STUDENT

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 INDEX

CHAPTER PARTICULARS PAGE NO

1. INTRODUCTION 6-9
 MEANING OF INTERNSHIP
 TYPES OF INTERNSHIP
 COMPANY PROFILE

10-23
NATURE OF WORK DONE IN
2. THE ORGANISATION

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EXPERIENCE AND
3. CONCLUSION

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 CHAPTER-1

INTRODUCTION

MEANING:
An internship is a opportunity offered by an employer to potential employees, called
interns, to work at a firm for a fixed, limited period of time. Interns are usually for
undergraduates or students, and most internships last for any length of time between
one week and 12 months.

TYPES OF INTERNSHIP:

 Paid Internship
 Internships for Credit
 Non-Profit Internships
 Summer Internships
 Co-Operative Internships
 Service Learning
 Job Shadowing

HEARTCARE TECHNOLOGIES PRIVATE LIMITED

HISTORY:

Heartcare Technologies Private Limited., was incorporated in the year 2000, before it was
Bio-Medicare, which was formed in the year 1992 December as a Partnership firm, with the
main objective of manufacturing and marketing of Cardiology Equipment Accessories. The
products manufactured are in compliance with import standards and the products are

 ECG & Ultrasound Jelly

 ECG Patient Cables
 Reusable Clip-on / Limb / Chest Electrodes
 ECG Paper
 Medical Batteries
 Pulse Oximeter & Accessories
 EEG Accessories

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PRUDENCE AND OBJECTIVES:

The Quality originates with the need of full satisfaction of the customer, as their very
existence depends on providing highly reliable medical equipment accessories and efficient
customer support on a continuous basis.

Their main objectives are:

 Establishing, implementing and maintaining a well-conceived Quality Assurance

System with the fullest support of management to fulfil our stated commitments and
goals.
 Ensuring involvement of all personnel, including top level management in the
accomplishment of the principal objectives.
 Ensuring Patient Safety through continuous efforts to supply products of high quality
backed by after-sales service.
 Ensuring conformance of products to stringent international standards for including
safety.
 Ensuring the product specifications are strictly adhered to during purchase,
manufacture, despatch and installation.
 Ensuring proper product and maintenance through Customer Training and constant
product improvement based on customer feedback.

SALES NETWORK

They have an established All India Sales Network and have Dealers in almost all the major
towns & cities in India.

BOARD OF DIRECTORS:

 B. Balaji (Director - Technology & Marketing)

 B. Sowmiya Narayanan (Director - Production)

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MEMBERS IN THE ORGANISATION:

 R. Venkatesh Prakash (Service Engineer)

 R. Rajaraman (Accountant)

CUSTOMER NETWORK

They have all the Cardiology equipments manufacturer’s as their customers all over
India. Some of their valuable customers are:

 BPL Medical Tech Pvt. Ltd, Palakkad. Since 1993.,

 Cura Healthcare Pvt. Ltd., Chennai.

 Marks Electronics, Chennai.

 Maestros Elect. Tele. Comm. Sys. Ltd., Navi Mumbai,

 Nasan Medical Electronics Pvt. Ltd., Pune.

 Recorders & Medicare Systems, Chandigarh.

 Medicaid Systems, Chandigarh.

 Schiller Healthcare India Pvt. Ltd., Pondicherry - Since from 1996

 GE Healthcare India Ltd., Bangalore [1998 to 2008]

 Genesis medical Systems Pvt. Ltd., Hyderabad.

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AFTER SALES SERVICE SUPPORT:

As stated in their quality policy they also provide immediate after sales service support to
their customers. Heartcare has full-fledged qualified and well-trained service engineers.

Moreover, to cut down the downtime of service & repairs at customer’s end. They also have
adequate stock of accessories at all times and regularly provides free of cost training to the
Dealers of their products.

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 CHAPTER-2

NATURE OF WORK DONE IN HEARTCARE TECHNOLOGUES

PRIVATE LIMITED

1.Vouching (as a part of Internal Auditing)

Accounting entries made in the books must be supported by documentary evidence and
inspection of that evidence is called vouching. The Auditor judges the authenticity, of the
accounting entries using the technique of vouching. In case of unavailability of proper
supporting documents, the Auditor may have all reasons to doubt about errors or fraud or
manipulation.

Thus, auditing is incomplete without vouching.

In auditing process, based on evidence, there are two main functions

 Collection of evidences − through observation, confirmation, inspection, inquiry.

 Evaluation of evidences − with relevance, adequacy and validity.

OBJECTIVES OF VOUCHING:

Following are the main objectives of vouching −

 To check whether all the business transactions are properly recorded in the books of
accounts or not.

 To see whether recorded transactions are duly supported by documentary evidence or

not.

 To verify that all the documentary evidence is authenticated and related to business
transactions only.

 To verify that transactions are free from errors or frauds.

 To verify whether voucher is processed through all the stages of Internal Check
system properly.

 To verify and confirm that the entries are recorded according to the capital and the
revenue nature or not.

 To check the accuracy of accounting transactions.

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IMPORTANCE OF VOUCHING:
Vouching forms the base for auditing and has an important part of Auditor’s duty. In case of
negligence in vouching, the Auditor will be held responsible; he cannot escape from his
duty, if he has done vouching carelessly. Following points show the importance of
vouching-

 Vouching is equally important as passing of original entry in the books of accounts.

If, original entry is wrong, it will affect every process of accounting entry and its
impact will be till the end result. Similarly, vouching is base of all auditing process.

 Efficiency of vouching will decide the success of audit.

 Any errors and frauds are easily detectable if vouching is conducting in searching and
intelligent manner.

 Intelligent and faithful vouching will establish reliability on financial statements, i.e.,
Profit and Loss account and Balance Sheet of any organization.

 If adequate internal control system exists, the Auditor may choose to do test checking
instead of complete vouching.

VOUCHING AND ROUTINE CHECKING:

Routine checking covers the checking of every carry forward, posting to ledger account and
balancing of account. Vouching includes routine checking which is a mechanical checking,
whereas vouching is made on the basis of documentary evidence.

A voucher may be a sales bill, purchase bill, payment receipt, pay-in slip, etc. All such types
of documentary evidence are known as vouchers.

TYPES OF VOUCHER:
There are two types of vouchers −

 Primary Voucher − Original copy of written supporting document is called primary

voucher. Like purchase Bill, cash memo, pay-in-slip, etc.

 Collateral Voucher − Copies of supporting documents which are not available in

original are collateral voucher like duplicate or carbon copy of sale invoice.

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EXAMPLES OF VOUCHERS:

Transactions Vouchers

Sales order, sales invoice, goods outward

Sales
register, cash receipt, bank pay-in-slip, etc.

Quotations, purchase orders, purchase bills,

Purchase
goods inward register, etc.

Cash Payments Demand note, cash receipt, cash memo, etc.

Duplicate or carbon copy of cash receipt,

Cash Received
contracts and correspondence with payee, etc.

Bank Payments Cheques, counterfoils, bank statements, etc.

Payment received through Bank deposit slip, bank statements, etc.

Banking Channels

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 2. Tally ERP9 (Working Knowledge)

INTRODUCTION ON TALLY.ERP 9
TALLY.ERP 9 is the most powerful concurrent multilingual business accounting and
inventory management software. It is easy to install learn and use. It is designed to automate
and integrate all business operations like sales, finance, purchase, inventory and so on.

TALLY.ERP 9 facilitates accurate and up to date business information.

Tally provides comprehensive solution around accounting principles, inventory and data
integrity. Tally also has feature encompassing global business.

Tally software comes with easy to use interface thus making it operationally simple. Tally
accounting software provides a solution around inventory management, stock management,
invoicing, purchase order management, discounting, stock valuation methodology, etc.

Tally accounting software also comes with drill down options, which can track every detail of
transaction. It helps in maintaining simple classification of accounts, general ledger, accounts
receivable and payable, bank reconciliation, etc.

The technology employed by tally makes data reliable and secure. Tally software supports all
the major types of file transfer protocols.

This helps in connecting files across multiple office locations.

Tally accounting software is capable of undertaking financial analysis and financial

management.

It provides information around receivables turnover, cash flow statement, activity

consolidation and even branch accounting.

Tally accounting software is east to set up and simple to use. A single connection can support
multiple users. It can be easily used in conjunction with the Internet making possible to
publish global financial reports.

Tally accounting software can seamlessly connect with various Microsoft applications.

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BENEFITS OF TALLY ACCOUNTING SOFTWARE:
Any business owner understands the importance of maintaining proper books of account.
This practice ensures that finance for the company is always in order and are correct at all
given points of time. Company should always be aware of its financial positions.

Earlier, most of the businesses were employing manual practice in maintaining books of
account. However, with the advent of modern information technology, this task can be
performed by accounting software.

Tally is one such all-powerful accounting software. Tally accounting software provides a
solution to all the problems real businesses have to encounter. Single software takes care of
all tasks required for enterprise management.

Accounting task such as records keeping, accounts receivable and payable management and
bank reconciliation are made simple through tally.

Financial management is also made simpler under Tally software. The software allows
management of finances across multiple locations can handle multiple currency transactions,
manage cash flow and interest payment.

Tally accounting software also comes with drill down options, which can track every detail of
transaction. It helps in maintaining simple classification of accounts, general ledger, accounts
receivable and payable, bank reconciliation, etc.

Tally accounting software is also capable of undertaking financial analysis and financial
management. It provides information around receivables turnover, cash flow statement,
activity consolidation and even branch accounting.

The technology employed by tally makes data reliable and secure. Tally software supports all
the major types of file transfer protocols. This helps in connecting files across multiple office
locations.

With Tally.ERP 9, accurate, up-to-date business information is literally at your fingertips

anywhere. A single connection can support multiple users. It can be easily used in
conjunction with the Internet making possible to publish global financial reports.

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FEATURES OF TALLY.ERP 9

1. SIMPLICITY:

TALLY.ERP 9 is simple, easy to setup and use. It requires basic knowledge of accounts to
use it.

2. REMOTE ACCESS:

It provides remote capabilities to access the data from anywhere and anytime.

3. REAL TIME PROCESSING:

The Books of accounts are updated as soon as the entries are entered. It facilitates the instant
statements and reports.

4. SCALABILITY:

Tally .ERP 9 suits any style of business needs and eliminates the necessity for a business to
change its style of operation, in order to adapt to the application.

TALLY SHORT CUTS:

KEYS FUNCTIONALITY
F1 To select a company
F1(ALT+F1) To view detailed or condensed report
F1(CTRL+F1) To open payroll vouchers to alter
F2 To change the current date
F3 To select the company statutory and taxation
F4 To open contra vouchers
F5 To open payment vouchers
F6 To open receipt voucher

F7 To open journal voucher

F8 To open sales voucher
F8(CTRL+F8) To open credit note voucher
F9 To open purchase voucher
F9(CTRL+F10) To open debit note voucher
F10 To open reversing journal voucher
F10(CTRL+F10) To open memorandum voucher
F11 To select the functions and features screen

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FACILITIES WITH TALLY.ERP9:

 Budgeting- Allow you to analyse the variance for expenses, income etc.

 Audit Facility– Using this, you can check the recorded voucher and make
modifications as per requirement.

 Data Import and Export Facility- You can import or export any particular data from
one company to another company.

 Scenario Management-It can be projected Profit and Loss A/c and Balance Sheet.

 Bank Reconciliation System

 E-Capabilities

 Usefulness in Manufacturing Business - Useful for calculation of Cost of Goods

Sold.

 Foreign Currency - Useful for calculation of foreign gain & loss using foreign
currency.

 Credit Control– It is possible for Customer.

 Tracking through Delivery Notes & Receipt.

 Profitability Analysis of stock.

 Accounts for- Indian VAT, TDS, E-TDS, Service Tax.

 Ageing Analysis, Price List for Stock Item- Rate of product can be defined with its
quantity.

 Ratio Analysis, Cash Flow, Funds Flow.

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 3.BASIC PRACTICES OF GST

India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) has
completed more than nine months. A comprehensive dual GST was introduced in India from
1 July 2017.

The idea of moving toward GST was first mooted by the then Union Finance Minister in his
Budget for 2006-07. The talks of ushering in GST took concrete shape with the introduction
of the Constitution (122nd Amendment) Bill, 2014. The Bill was passed by the Parliament on
8 August 2016. This was followed by the ratification of the Bill by more than 15 states. On
12 April 2017, the Central Government enacted four GST bills:

 Central GST (CGST) Bill

 Integrated GST (IGST) Bill

 Union Territory GST (UTGST) Bill

 The GST (Compensation to States) Bill

In a short span of time, all the states approved their State GST (SGST) laws. Union territories
with legislatures, i.e., Delhi and Pondicherry, have adopted the SGST Act and the other 5
union territories without legislatures have adopted the UTGST Act.

The GST Council, a recommendatory body consisting of representatives of Central as well as

state governments, has met on several occasions and taken important decisions relating to tax
rate structure, exemptions, rules, composition scheme etc. Over the period, the Council has
recommended a reduction in the tax rates of various goods and services. It is also considering
the various issues faced by trade and industry and endeavouring to simplify the new tax
regime and ease compliance.

On the compliance front, all registered persons have to file monthly returns in Form GSTR-
3B (containing a summary of outward and inward supplies) by the 20th of the succeeding
month till 30 June 2018. Additionally, an invoice-wise return of outward supplies needs to be
submitted in Form GSTR-1.

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The due dates for filing Form GSTR-1 are as follows:

For taxpayers with an annual aggregate turnover up to INR 1.5 crores:

Period Dates

Jan–Mar 2018 30 Apr 2018

Apr–Jun 2018 31 Jul 2018

For taxpayers with an annual aggregate turnover of more than INR 1.5 crore:

Period Dates

Feb 2018 10 Apr 2018

Mar 2018 10 May 2018

Apr 2018 31 May 2018

May 2018 10 Jun 2018

Jun 2018 10 Jul 2018

The Government has deferred the requirement of filing Form GSTR-2 (containing details of
inward supplies) and GSTR-3 (a consolidated statement of inward and outward supplies) till
such time the nominated Committee reviews and comes out with a simplified mechanism for
the invoice-matching process.

Under GST, there is a provision for the person in charge of a conveyance to carry electronic
way bill (e-way bill) if the consignment value exceeds INR 50,000. E-way bill can be
generated through various modes such as web (online), Android app, SMS using Bulk
Upload Tool and API-based site-to-site integration. The e-way bill system has become
effective from 1 April 2018 for inter-state movement of goods. For intra-state movement of
goods, e-way bill will be introduced in a phased manner before 30 June 2018.

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 4.TDS-RETURN FILING

TDS Return is required to be filed by the assessee who has deducted the TDS. TDS Returns
are required to be filed after specified intervals and details to be

furnished in these returns include fields like TAN No., TDS Payment, amount deducted, type
of payment, PAN No. etc.

TDS RETURN FORM:

Different TDS Forms have been prescribed depending on the purpose of deduction of TDS.
The various TDS Forms are as follows:-

FORM NO. PARTICULARS

Form 24Q Statement for tax deducted at source from
salaries
Form 26Q Statement for tax deducted at source on all
payments except salaries
Form 27Q Statement for deduction of tax from interest,
dividend, or any other sum payable to non-
residents
Form 27EQ Statement of collection of tax at source

The quarterly return statements should be accompanied by a signed verification in Form No.
27A. Form 27A is a control chart of quarterly TDS/TCS statements to be filed by
deductors/collectors along with quarterly statements. It is a summary of TDS/TCS returns
which contains control totals of ‘amount paid’ and ‘income tax deducted at source’.

The control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on Form
No. 27A should match with the corresponding control totals in TDS/TCS return. A separate
Form No. 27A is to be filed for each TDS/TCS return.

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TDS RETURN IN ELECTRONIC FORMAT (E-TDS RETURNS):

As per Section 206, the TDS forms have to be mandatorily filed in electronic media by the
following class of assesses:-

1. All Corporate Deductors/ Collectors (Notification No. 205/2003 dated 26 August 2003)

2. All Government Deductors/Collectors (vide Finance Act 2004)

3. Where the deductor/Collector is required to get his accounts audited under section 44AB in
the immediately preceding financial year

4. Where the no. of deductees/collectees records in a quarterly statement for one quarter of
the immediately preceding financial year is equal to or more than 20.

All other assesses except those specified above have the option either to furnish the return in
physical format or electronic format.

TDS RETURN DUE DATE:

From 1st June 2016 onwards, the Due Date for filing TDS Return (both in online as well as
physical) is as follows:

QUARTER DUE DATE FOR FORM 267Q FORM 27EQ

FORM 24Q & 26Q

April to June 31st July 31st July 15th July

July to September 31st October 31st October 15th October
October to 31st January 31st January 15th January
December
January to March 31st May 31st May 15th May

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NSDL TDS RETURN SOFTWARE:

TDS Returns which are required to be submitted electronically are prepared with the help of
return preparation utility. To facilitate easy preparation of returns, the

Government has also launched a TDS Return Preparation Utility (RPU). This utility can be
downloaded free of cost from here.

There are various other 3rd party private return preparation utilities as well through which the
TDS Returns can be filed electronically. The list of private return preparation utilities through
which the returns can be filed are mentioned in this link. Most of these private utilities are
paid utilities as compared to the NSDL. Return Preparation Utility which is free.

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SUBMISSION OF TDS RETURN:

The returns can be submitted at any of the TIN-FC’s managed by NSDL. Tin FC’s are set up
at specified locations across the country. The details and address of all TIN-FC’s have been
uploaded in this link. The return can also be furnished directly at the NSDL TIN website. In
case the deductor opts for submission of return online, he would be required to sign the return
through his digital signatures.

At the time of submission of return, if your return is complete in all aspects, a provisional
receipt/token no. would be issued. The provisional receipt/token no. is an acknowledgement
of the fact that the return has been filed. In case of non-acceptance of your return, a non-
acceptance memo would be issued stating the reasons for rejection.

CHARGES FOR SUBMISSION OF TDS RETURN

The following charges to be paid at the time of submission of return.

NO. OF DEDUCTEE RECORDS IN TDS UPLOAD CHARGES (Excl. of Service

RETURN Tax)
Returns having up to 100 records Rs.31.15
Returns having 101 to 1000 records Rs.178
Returns having more than 1000 records Rs.578.50

TDS RETURN STATUS:

TDS Return Status of the statement filed by the assessee can be checked online by furnishing
the PAN No. and the Provisional Receipt No. & Token no.

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PENALTY FOR DELAY IN FILING OF TDS RETURN:

Late filing of TDS Return

As per Section 234E applicable, 1st July 2012, in case an assessee fails to submit the TDS
Return before the due date, he shall be liable to pay a penalty of Rs.200 per day till the time
the default continues. However, the total penalty computed at 200/day should not exceed the
total amount of tax deducted.

Non-filing of TDS Return

A person shall also be liable to penalty in case the return has not been filed within 1 year
from the due date of filing of return or if incorrect information has been delivered. The
penalty levied should not be less than Rs.10, 000 and not be more than Rs.1, 00,000.

REVISION OF TDS RETURN

In case of any errors are noticed after the submission of return, a correction statement can be
filed by the deductor. The above mentioned charges would also be required to be again paid
in case a Revised Return is filed by the deductor. Revised Return can be filed multiple times
to incorporate any changes.

POINTS REGARDING TDS RETURN FILING

1. A single return should not be broken into parts and filed in 2 separate media. It has to be in
a single media. More than 1 TDS Return can be filed in the same computer media.

2. You can also file the return in compressed form using Winzip. Also on acceptance of the
E-TDS return, the computer media would be returned to the deductor.

3. If the e-TDS/TCS return file is complete in all aspects, TIN-FC will issue a provisional
receipt to you. The provisional receipt issued by TIN-FC is deemed to be the proof of e-
TDS/TCS return filed by you.

4. In case of non-acceptance of your e-TDS/TCS return file, TIN-FC will issue a Non-
Acceptance Memo which will state reason for rejection. TDS Return is required to be
furnished in all cases as per the above mentioned procedure except in case of TDS on
Property which is to be furnished in Form 26QB which is a challan-cum-return form.

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 CHAPTER-3

CONCLUSION

Throughout my internship, I could understand more about accounting methods and prepare
myself to become a responsible accountant. Along my internship period, I realize that
observation is a main element to find out the root cause of a problem. During my internship, I
received advice and gained experience from the company. The two main things that I’ve
learned the importance are Time-Management and Self-Motivation. Internships is not only a
way to gain valuable experience and training, it is also a way to stand out from other
candidates.

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