A

SIP REPORT
ON
“ STUDY OF FINANCE DEPARTMENT IN TRANSRAIL
LIGHTING LIMITED ”

Submitted to
R. T. M. Nagpur University, Nagpur in partial fulfilment of the requirement for
the degree Master of Business Administration

Submitted by
Ms. Komal A. Mhaiskar

Under the Guidance of

Dr. R.O. Panchariya

DEPARTMENT OF MANAGEMENT STUDIES

B. D. College of Engineering, Sevagram
Session 2019 – 2020

CERTIFICATE
This is to certify that Ms. Komal A. Mhaiskar is a bonafide student of M.B.A.
Semester – III in Department of Management Studies, Bapurao Deshmukh College of
Engineering, Sevagram for the Academic Session 2018-2019 has completed her SIP work
entitled “TRANSRAI LIGHTING LIMITED DEOLI”under the guidance of Dr. R. O.
Panchariya. The SIP Report is being submitted to Rashtrasant Tukadoji Maharaj Nag pur
University, Nagpur in partial fulfilment of the requirement for the degree of Master of
Business Administration.

Dr. R. O. Panchariya Dr. C. Dilipkumar

SIP Guide Company Guide

Dr. R. O. Panchariya
Co-ordinator
DMS, B.D.C.E. Sevagram

Date:

Place: Sevagram, Wardha

 DECLARATION

I, Ms. Komal A. Mhaiskar hereby declare that the work presented in this SIP report
has been carried out by me as bonafide student of the Department of Management Studies,
Bapurao Deshmukh College of Engineering, Sevagram of Rashtrasant Tukdoji Maharaj
Nagpur University, Nagpur during the Academic Session 2018-2019.

I hereby declare that this SIP report entitled, “STUDY OF FINANCE DEPARTMENT IN
TRANSRAIL LIGHTING LIMITED” Is a bonafide and authentic record of work done by me
under supervision of Dr. R. O. Panchariya during M.B.A. Semester-III.

The work presented here is original and not duplicated from any other source & also not
submitted earlier for any other degree/diploma to any university.

Ms. Komal A. Mhaiskar

Date: M.B.A. Semester-III
Place: Sevagram,Wardha DMS, BDCE, Sevagram
 ACKNOWLEDGEMENT

During the preparation and writing of this SIP work, the good wishes and active help have blessed me
from a very large number of peoples. The mention of all of these peoples is well high impossible here
at this time. However, I cannot but mention a few of them for whom I am extremely grateful.

I am extremely grateful to Dr. R. O. Panchariya, without whose able guidance this SIP report would
never have been materialised. It was his erudite talks, keen interest, knowledgeable and practical
suggestions that inspired me to bring out the best.

My thanks are also due to Dr. M. A. Gaikwad, Principal, B. D. College of Engineering,

Sevagram, Wardha, Dr. R. O. Panchariya, Co-ordinator, Department of Management Studies, B. D.
College of Engineering, Sevagram, Wardha and Dr. S. B. Diwate, SIP In-charge for extending their
great support and inspiration throughout my project work.

Last but not the least; I would like to thank my family and friends for their constant encouragement
and support.

Ms. Komal A. Mhaiskar

Date: M.B.A. Semester-III
Place:Sevagram,Wardha DMS, BDCE, Sevagram
 INDEX
Page
Sr. No. Contents
No.

1. Introduction to Topic

1.1 Theoretical Background

1.2 Company Profile

2. Review of Literature

3. Research of Methodology

3.1 Need of study

3.2 Objective of Study

3.3 Research Design

A. Data Collection Method

C. Period Of Study

4. Data Analysis and Interpretation

5. Findings,Conclusion&Recommendation

5.1 Findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Annexure

A. Questionnaire

A. B. Certificate of Company
 Introduction
Financial Study (also referred to as financial statement analysis or accounting analysis
or Analysis of finance) refers to an assessment of the viability, stability, and profitability of a
business, sub- business or project.

It is performed by professionals who prepare reports using ratios that make use of information
taken from financial statement and other reports. These reports are usually presented to top
management as one of their bases in making business decisions. Financial analysis may
determine if a business will:
Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the production of its goods;
Issue stocks or negotiate for a bank loan to increase its working capital;
Make decisions regarding investing or lending capital;
Make other decisions that allow management to make an informed selection on various
alternatives in the conduct of its business.

Finance is a field that is concerned with the allocation (investment) of assets and liabilities
over space and time, often under conditions of risk or uncertainty. Finance can also be
defined as the art of money management. is in principle different from managerial finance
which studies the financial management of all firms.

Financial management focuses on ratios, equities and debts. It is useful for portfolio
management, distribution of dividend, capital raising, hedging and looking after fluctuations
in foreign currency and product cycles. Financial managers are the people who will do
research and based on the research, decide what sort of capital to obtain in order to fund the
company's assets as well as maximizing the value of the firm for all the stakeholders. It also
refers to the efficient and effective management of money (funds) in such a manner as to
accomplish the objectives of the organization. It is the specialized function directly associated
with the top management. The significance of this function is not seen in the 'Line' but also in
the capacity of the 'Staff' in overall of a company. It has been defined differently by different
experts in the field.
The term typically applies to an organization or company's financial strategy, while personal
finance or financial life management refers to an individual's management strategy. It
includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only
for long term budgeting, but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders.

Finance is defined as the management of money and includes activities like investing,
borrowing, lending, budgeting, saving, and forecasting. Corporate finance also includes the
tools and analysis utilized to prioritize and distribute financial resources.

Finance is a broad term that describes activities associated with banking, leverage or debt,
credit, capital markets, money, and investments. Basically, finance represents money
management and the process of acquiring needed funds. Finance also encompasses the
oversight, creation, and study of money, banking, credit, investments, assets, and liabilities
that make up financial systems.
Role and Responsibilities of a Finance Department:
The contributions of finance department to any company and how these contributions
positively affect organisational performance will greatly depend on factors such as the extent
to which the owner/ manager is involved in his company. The roles and responsibilities of a
finance department include but are not limited to:

a. Bookkeeping

This is the most basic function of the finance department. It involves the day-to-day recording,
analysis and interpretation of a company’s financial transactions. This will include the
tracking of all expenses (purchases, payments etc.) and sales of finished products. In some
start up companies, this role is often carried out by a bookkeeper who might be replaced by
more specialized payables and receivables clerks as the company grows or expands its
operations.

b. Management of company’s cash flow

It is the duty of the finance department to manage all cash flows into and out of a company
and ensure that there are enough funds available to meet the day-to-day running of the
company. This area also encompasses the credit and collections policies for the company’s
customers, to ensure that vendors and creditors are paid correctly and on time; and that the
company is also paid correctly and as when due.

c. Budgets and forecasting

In this function, the finance department works with managers to prepare the company’s
budgets and forecasts and also give feedback with regards to the financial standing of the
company. This information can be used to fulfil the cash needs of each department, plan
company staffing levels, plan asset purchase and expansions at minimum cost before they
become necessary. The finance department can also use past records from respective
departments to make better budget and forecast over long-term and short-term time horizons.
 d. Advising and sourcing longer-term financing

It is the duty of the finance department to advise companies on the best financing mix that
could yield the company the best profit and also help them source longer- term financing at
the lowest cost such that there is a profit level of liquidity. Some of the many varied paths a
company can source funds to finance their business as discussed in one of our articles “10
Most Common Ways to Finance Your Business” include bank credit or private lender debt or,
share issues to private investors (where applicable).

e. Management of Taxes

Running a company involves paying tax, and it is the duty of the finance department to handle
tax issues. This includes creating good corporate relationships with government by remitting
PAYE (Pay As You Earn) to the relevant authority, and ensuring that implementation of tax
matters are done within the framed policies.

f. Management of Company’s Investments

Apart from analyzing and selecting new investments, it is also the duty of the finance
department to manage company’s existing assets. The finance department should be concerned
with current assets apart from fixed assets. The company’s working capital needs to be
managed efficiently in such a way as to maximize profitability relative to the amount of funds
tied up since it has more implication on the firm liquidity than its fixed asset.

g. Financial Reporting and analysis

Financial reporting and analysis is the function that takes raw accounting entries and
transforms them into meaningful, usable and comparable financial statements. The finance
department contributes to organizational growth by measuring and reporting on regular bases,
key numbers that are vital to the success of the company. This will likely include a summary of
all funding sources, expenditures and reserves available for future use (excluding those
already committed and budgeted for current period) some non-financial information. And are
usually communicated to managers in a logical and understandable format.
 h. Assist managers in making key strategic decisions

The finance department provides company management with information necessary to make
strategic decisions such as which markets or projects to pursue, the payback periods for large
capital purchases, decision on what should be given out as dividend out of the company’s
earnings and what to plough back into the business, the best financing mix that could yield
the company the nest profit, decision on how to allocate funds to investment etc., thus,
making sure that money is being used in the best way.

Having read up to this point, you must have discovered that the importance of the finance
department to any company cannot be overemphasized since the financial policy of any
company to a greater extent, determines not only its existence, and survival but also the
performance and success of that company. Any company aspires to grow and make profit
should make sure the activities of the finance department are handled by individuals who
have all it takes to be in the department.

COMPANY INFORMATION

Transrail Lighting limited is an intergrated power Transmission and Distribution company.

Which provides turnkey solutions in areas of transmission. Distribution and Rural
Electrification, and a lighting solutions provider for outdoor lighting. At its core, we are a
company driven by passion for quality innovation and excellence.

As a turnkey solutions provider in the transmission and distribution sector, we undertake

designing testing manufacturing of towers and conductions and construction and erection
activities such as areas of survey, civil work and erection and commissioning of lines.
Transrail has more than three decades of experience as a T&D player given that it derives
capabilities and experience from the transfer of the T&D business by M/S Gammon India to

the Company.

In the lighting solutions business, the company undertake designing, manufacturing testing
installation and supply of galvanised structures for highway, traffic refineries and solar
structure.
Transrail is one amongst a few companies across the globe to have a state- of-the-art
manufacturing facilities of transmission towers, conductors, monopoles, a state-of the-art
integrated tower testing station, design capabilities, and a fully functional erection and
construction team capable of erecting commissioning transmission lines up to 1200Kv,
distribution lines, substations and railway electrifications.

COMPANY DETAILS:

Company Transrail Lighting Ltd

Project Manufacture of fabricated structural

products of iron or steel (Except

rolling shutters)

Project Filed On 6 Jan, 2017

Industry Metallurgical Industries

Project Location Wardha

Project State Maharashtra

Project Place B 1/ 1, Deoli Midc

Transrail has successfully completed the acquisition of the Transmission and Distribution
business, from its erstwhile parent company - Gammon India Limited (GIL) through a
Business Transfer Agreement andScheme of Arrangement. As a result of this consolidation.
Transrail now possesses cutting-edge capabilities in engineering, procurement and
construction of Power Transmission and Distribution infrastructure. With holistic
capabilities, Transrail Lighting Limited is poised to benefit from its state-of-the-art design,
manufacturing and testing facilities and rich past work experience and qualifications in the
T&D and lightin infrastructure business.

COMPANY PROFILE

Transrail Lighting ltd is a Tower manufacturing (Transmission Tower) testing, installation.

We have in-house design, pole manufacturing capacity of 40,000 MT per annum which is
being handled by large pool of competent managerial and supervisory personnel.

It is linked with the power grid corporation of India and Adani power ltd. Central store and R
& Dis apart of Gammon India ltd, factory comes in transrail lighting ltd. This company
assigned various cost central code and profit centre code follows. This company is using SAP
(software application program) technology for accounting as well as for other purpose.

Name of company – Transrail lighting ltd

PAN NO.- AACCT8765G
GST NO.- 27AACCT8765G1ZX
GOODS AND SERVICE TAX (GST)
GST is an indirect tax which has replaced many Indirect Tax. GST is levied in India on the
supply of services. Goods and services are divided into five tax slabs for collection of tax-
0%, 5%, 12%, 18%, 28%.
There are three types of GST :- CGST, SGST, IGST.

CGST
CGST means central goods and services tax. CGST is charge on the movement of goods and
services within the same states. The revenue collected under CGST is for state.

SGST
SGST means state goods and service tax. SGST is charge on the movement of goods and
services within the same state. The revenue collected under SGST is for state.

IGST
IGST means Intergrated Goods and Services tax. CGST is charge on the movement of goods
and services from one state to other state. The Revenue collected under the IGST is for centre.

The IGST mechanism has been designed to ensure seamless flow of input tax credit from one
state to another. The inter state seller would pay IGST on the sale of his goods to central
government after adjusting credit of IGST, CGST and SGST on his purchase in that order.
The exporting state will transfer to the centre the credit of SGST used in payment of IGST.
The importing dealer will claim credit of IGST will discharged in his output tax liability both
CGST and SGST in his own state. The centre will transfer to the importing state the credit of
IGST used the payment of SGST.
TAX DEDUCTION AT SOURCE (TDS)

The concept of TDS was introduced with an aim to collect tax from various source of
income. As per this concept, a person ( Deducter) who is liable to make payment of specified
nature to any other person (Deductee) shall deduct tax at source and remit the same into the
account of the central government. The deductee from whose income tax has been deducted
at source would be entitled to get credit of the amount so deducted on basis of from 26AS or
TDS certificate issued by the deductor.

Tax deducted at source is a means of collecting income tax in India, under the Indian Income
Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting a
prescribed percentage. Taxes shall be deducted at the rates specified in the relevant provisions
of the act of the first schedule to the finance Act

 Knowledge about e-way bills

e-way bills required for transportation. Materials are transported from one state to other or
within same state E-way bills attached if the amount is above 50,000.

 Study of Ledger, balance sheet and cost sheet

I identify the debit balance and credit balance from ledger. Ledger is prepared to make
Balance sheet. Balance sheet is prepared annually and balance of debit and credit both should
be matched, If not a goes for reconciliation.
Cost sheet is prepare to know the cost incurred during the business transaction.To be the most
trusted and preferred life insurance provider.
 REVIEW OF LITERATURE
The research will focus on management accounting, rather than financial accounting which is
about providing information to external users. In contrast, management accounting is about
providing insiders of the organization with information to assist them in better decision
making. It has its origins already in the early nineteenth century and its use is increasing ever
since for several reasons (Johnson & Kaplan, 1987). For example, Jarvis & Barry (2011) state
that managers need this information to ascertain the impact of not only their future actions,
but also about their past decisions, evaluate alternative ways of deploying the resources of the
enterprise, make decisions about future investments and evaluate the outcomes. The objective
is to provide reports that will assist internal users with decision making in the field of
problem solving, effective control of costs, and plan and fundraising (Barry & Jarvis, 2011).
Hansen et al. (2009) argue that cost management systems generally consist of a cost
accounting system and an operational control system. The cost accounting system is
concerned with assigning costs to individual products. The operational control systems Is
about evaluating the performance of managers with regard to control activities. This research
specifically focuses on cost accounting system, by assigning cost to specific product
components within the production line.
 Data Analysis
 Knowledge about cost centre code and profit centre code
 Profit centre code Cost centre code

Research 4310
&
Development

1)R & D Centre 43010100

2) Guest house 43010120

Central store CS2514 25140100

Factory 2810

1)Galvanizing 28010110
2)Fabrication 28010100

Cash flow statement

Mar 18 Mar 18 Mar 17 Mar 16 Sep 14

12 mths 12 mths 12 mths 18 mths 9 mths

Net Profit/Loss Before Extraordinary Items And Tax -2,013.85 0.00 -1,662.72 217.79 77.44
Net CashFlow From Operating Activities 44.00 0.00 125.62 4.13 -21.03
Net Cash Used In Investing Activities 80.98 0.00 34.48 -212.88 -12.10
Net Cash Used From Financing Activities -159.71 0.00 -191.64 249.96 53.62
Adjustments on Amalgamation / Merger / Demerger / Others
0.00 0.00 -37.25 -9.53 0.00

Net Inc/Dec In Cash And Cash Equivalents -34.73 0.00 -68.79 31.68 20.49
Cash And Cash Equivalents Begin of Year 44.84 0.00 113.63 81.95 61.58

Cash And Cash Equivalents End Of Year 10.11 0.00 44.84 113.63 82.07

Cash Flow of Gammon India --- --------------------------------- in Rs Cr . -----------------------------

BALANCE SHEET OF GAMMON INDIA

BALANCE SHEET
Consolidated
Mar 2018 Mar 2017

Total Share Capital 74.11 74.11

Equity Share Capital 74.11 74.11

Share Application Money 0.00 0.00

Preference Share Capital 0.00 0.00

Reserves -1,411.62 569.47

Revaluation Reserves 0.00 0.00

Networth -1,337.51 643.58

Secured Loans 0.00 3,141.31

Unsecured Loans 0.00 0.00

Total Debt 0.00 3,141.31

Total Liabilities -1,337.51 3,784.89

Gross Block 550.85 538.71

Less: Accum. Depreciation 100.11 87.43

Net Block 450.74 451.28

Capital Work in Progress 10.38 20.05

Investments 446.70 1,208.53

Inventories 123.82 146.27

Sundry Debtors 132.00 60.46

Cash and Bank Balance 13.16 51.79

Total Current Assets 268.98 258.52

Loans and Advances 3,794.88 4,032.41

Fixed Deposits 0.00 0.00

Total CA, Loans and Advances 4,063.86 4,290.93

Deffered Credit 0.00 0.00

Current Liabilities 6,236.70 1,934.63

Provisions 72.49 251.27

Total CL and Provisions 6,309.19 2,185.90

Net Current Assets -2,245.33 2,105.03

Miscellaneous Expenses 0.00 0.00

Total Assets -1,337.51 3,784.89

Contingent Liabilities 2,224.96 3,395.60

Book Value (Rs) -36.26 17.45

 OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
 To analyse the purchase sales bills by observing amount,GST no,invoice
no,date etc.stock.
 To analyse the documents which are attached to purchase and sales bills.
 To carry out the fundamental analysis on various aspects.
 To carry out the technical analysis on Infrastructure.
 To forecast the future share price and position of the Infrastructure
companies in India.
 LEARNINGS
The report represent the following task completed during summer internship at TLL
ltd.

 Key knowledge about the company.

 Check and correct the supporting documents.
 Analysis of bills of Purchase and Sale.
 Analysis of bills of contractor.
 Knowledge about e-way bills.
 Knowledge about cost center code and profit center code.
 Study of Ledger, Balance Sheet and Cost Sheet.
 Knowledge about goods and service tax.

All this point are discussed during my summer internship.

 CONCLUSION
After complete my Industrial training, I had been exposed to a finance executive and
financial analyst working. Throughout my internship I could understand more about
the definition of finance and financial planning and prepare myself to become a
responsible and innovative technician and financial manager in future. Along my
training period I realized that observation is a main element to find out the root cause
of a problem. Not only for my internship report but daily activities too.

Following are some conclusion that very useful and important in organization.
Critical, analytical and positive thinking.
 Time Management
 Hard work for Goal achievement
 Smart work
Through internship, I come to know about accounting and taxations. Sir has given us
useful information about GST and how it is applied practically. He also given us
detailed knowledge about company. This makes me able to relate the different
activities of finance while solving the various issues related to this.
Following are some conclusions that are very useful in organizations.
1)Critical and analyticalthinking.
2)Time management.
3)S.M.A.R.T Goal management.
4)Specific.
5)Measurable.
6)Achievable.
7)Relevant
8)Timely

During my visit to the company for my SIP, we have learned so many things
regarding day to day financial activities which will help us in our academic as well as
our future prospects.