Title- A GENERAL STUDY OF OPERATIONS OF CHARTERED ACCOUNTANTS CONTENTS • Acknowledgement. • Introduction. • History and objectives. • Objectives of study. • Organisation Structure. • Financial Performance. • Personnel:Recruitment. • Training and Development. • Services Offered. • Future plans. • Marketing. • SWOT Analysis. • Conclusion. ACKNOWLEDGEMENT ACKNOWLEDGEMENT The road to success is dotted with my tempting parking place. But ultimately the one , who works hard and is devoted to his work, succeeds. This is what we learn from our professors and mentors.
I am thankful to all the people associated during the fulfillment of summer training. I would like to express my deep gratitude towards Mr. R. K. Sharma , Director,PIMR,INDORE. I acknowledge with my deep gratitude the valuable guidance by a Mrs. Akanksha Joshi. Her immense interest, tremendous patience in attending to my problems and constant motivation has been of greatest help in bringing out this work to the present shape. Above all, I am thankful to my parents for their constant moral support, inspiration and guidance. (Asmita Daga) INTRODUCTION INTRODUCTION
The Chartered Accountants are entrusted with substantial responsibility under various legislations such as compulsory audit of all companies, banks, stockbrokers, etc…….. This shows the confidence and trust reposed by the government and society in the profession. The types of functions performed by Chartered Accountant are quite varied; some of the important ones amongst them are as follows:- • Accountancy : The writing up of accounts and preparation of Financial statements from the simplest receipts and payment. Accounts of a small club to the complex and detail accounts of large public limited companies. Auditing : The purpose of auditing is to satisfy the users of Financial statements that the accounts presented to them are drawn up on correct accounting principles and that they represent a true and fair view of state of affairs. • Taxation : The assessment of taxes is closely linked to Financial accounts. The Chartered Accountant with his experience in accounts is in advantageous position to prepare the returns for tax purposes, represent assesses before the income tax authorities and render general advice on taxes to his clients.
The services of a CA may be requisitioned by the tax department for auditing taxation cases with large revenue proposals. • Cost Accountancy : A Chartered Accountant is equipped to provide information on costing for guidance of management, introduce cost control methods and assist the management in determining appropriate selling prices. • Special Company work : The services or advice of Chartered Accountant are frequently sought in connection with matters such as the formation, financial structure and liquidation of limited companies. Investigation: Chartered Accountant is often called upon to carry out investigation to ascertain the position of business houses for the purpose of issue of new shares, purchase and sale or financing of business, finding out reasons for increase or decrease of profits, reconstruction and amalgamations. • Executers and Trustees: A Chartered Accountant is also often appointed executors under a will or trust in order to carry on the administration of the estate or settlement. • Management Accounting: The Chartered Accountant’s services are utilized in a variety of ways like formulation of polices, controls and performance evaluation. Companies Secretarial Work: As a secretary, the Chartered Accountant is an important link in the management. HISTORY & OBJECTIVES HISTORY Kedar Agrawal & Co. was established on 17th April 1982. It got its certificate of participation on 20th march 1982. Its member no is 70965. The company was started by Mr. Kedar Agrawal he got his associate of chatted account on 18th Feb. 1982 and fellow chatted account on 5th may 1987 later in 1988, the company went into partnership with Mr. T. H. Khamoshi he got his associate of chatted account on 18th Sep 1987 and fellow chatted account on 18th Oct 1992.
The company was started with a very small office in the beginning at 52 Manak Chowk, RTM. With the passage of time, the business grows up and the company was running successfully. Soon the office was shifted at a better location with a bigger office at Do Batti. In 1985, the partnership was broken with Mr. T. H. Khamoshi and Mr. Kedar Agrawal becomes the solo owner of the organization thereafter. OBJECTIVES OF COMPANY • To Achieve Expertise in TAX AUDIT. • To EXPAND the company in future. • Strengthening the organization by the presence of EXPERIENCED PERSONNEL. • Achieving Expertise in TAX CONSULTANCY. Granting FINANCE in various fields such as home loan, project loan etc………. • To lay a theoretical foundation for the preparation and the presentation of FINANCIAL STATEMENTS and to develop an understanding of the rules of measurement and reporting related to various components of financial statements required for a professional account. OBJECTIVES OF STUDY OBJECTIVES OF STUDY To study the general operations of Chartered Accountant i. e. • To study how accounts of various companies get audited by a CA. • To study various purchase formalities. • To calculate taxable income of various employees. ORGANISATION STRUCTURE
ORGANIZATION STRUCTURE Kedar Agrawal & Co. is currently situated at 157, Shivpur House Compound Do-Batti, RATLAM. It has been situated there since 15 years. Beside Mr. Kedar Agrawal there are 4 assonant chatted account in the organization all work under different department such as taxation, auditing etc. there are 15 other staff member in the organization. All members perform their own assigned work as well as they help the assistant chartered account and article ship students working there. There is a limit of 10 articles in the organization currently 8 articles are working in the organization.
Besides Head Cabin, there are various other cabinets for various chartered account and a hall divided in separated departments there is library also with thousands of files assembled there is required sequence. BRANCH HEAD BRANCH HEAD is one who looks at the operations of the firm. Branch head is at top of the organizational structure existing in the organization. Their task is to monitor all the tasks assigned to subordinates and perform a final check on all the statements and documents prepared by the subordinates. Being a CHARTERED ACCOUNTANT FIRM, the tasks include filling of statements and return at various govt. epartments, like the sales tax departments, income tax departments and excise departments but before its submission it has to be signed by the CA. They monitor all the operations taking place in each department at each level. They stay in direct contact with all the employees of the organization for the purpose of guidance, CA’s works involve s many legal and technical complications, and the laws and rules keep changing as per the situations encountered. All the work is delegated to subordinates through AUDIT INCHARGE. The audit incharge is also responsible for finalizing the documents. DIRECT TAX DEPARTMENT
The main task of this department is ASSESSMENT. All the work is done under the supervision of MANAGER by the ASSISTANTS. MANAGER Checking returns and all other documents is prepared by the assistants. In some cases after submitting the returns and documents to the income tax departments a questionnaire is sent by the department seeking explanation for the things which are not satisfactory, so it is the duty of the manager to draft a reply addressing all the grievances for which an explanation is sought by the income tax department, and all the documentation related to it is done by the assistants of the department.
Therefore, all the matters and cases relating to direct tax are the responsibility of DIRECT TAX DEPARTMENT. ASSISTANTS Articles of the company serve as the assistant of the company. All the tasks related to the documentation such as preparing returns ,entering data into the software to prepare statements ,recording of various data as per the classification and records maintained by the organization , Auditing that is comparing and purchase statements , bank reconciliation statement, checking mathematical accuracy of financial statements .
FINANCE DEPARTMENT As the firm is the proprietorship firm all the tasks are handled and undertaken under the close supervision of branch head. All the cases related to finance such as project loan, home loan etc are handled by finance department. Making projects, presentations and proposals for clients targeting to get loans sanctioned for nationalized and well reputed banks and all the documentation that required to obtain from banks are dealt under finance department. AUDIT INCHARGE The qualification of an audit incharge should be chartered accountant.
His job is delegating work to article clerk, audit clerk and employees. Bank audit and task audit is also the task undertaken by audit incharge. Other task performed by him are keeping a check on subordinates and checking the final audit report prepared by the subordinates. ARTICLE CLERK Article clerks are chiefly the individuals who are currently pursuing the course of chartered accountant . Task undertaken by them includes:- • Tallying the sales invoice with sales register • Tallying the purchase invoice with purchase register and • Judging authenticity of the same apart from that finding deviance, if any.
Apart from these , financial statement shows true and fair view of the organization EMPLOYEES Assessment tallying books and other clerical work is handled by employees. FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE According to code of conduct prescribed by ICAI for CHARTERED ACCOUNTANT, a CHARTERED ACCOUNTANT in practice shall be deemed guilty of professional misconduct, if he/she discloses information acquired in the course of his professional engagement to any other than his client, without the consent of his client or otherwise than as required by any for the time being in force.
As mentioned in part II A member of the Institute ( other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company , firm or person discloses confidential information acquired in the course of his employment expect as permitted by the employer. Professional misconduct in relation to members of the institute generally requires action by high court. RECRUITMENT PROCESS RECRUITMENT AND SELECTION decision is a major function of Human resource department and recruitment is the first step towards creating the competitive strength and strategic advantage for the organization.
It involves systematic procedure from sourcing the candidate to arranging and conducting interviews and requires many resource and time. General recruitment processes are:- • Identifying the vacancy. • Preparing job description and personal specification. • Locating and develop source of requirement. • Shortlisting and identifying the prospective employees. • Arrange interviews with selection candidates. • Conducting interview and decision making. PROCESS OF FIRM The operations of Chartered Accountant involve usage of theoretical as well as practical knowledge.
Therefore to check the same Aptitude test and Personal interview is the recruitment process wherein the candidate is put into actual problem solving situation in order to test the knowledge and efficiency. Aptitude test checks the knowledge of the candidate and Personal Interview helps to judge the overall Personality of an individual. Basic computer and english knowledge is necessary. As per guide lines of ICAI an article must be a CPT passout. TRAINING & DEVELOPMENT TRAINING AND DEVELOPMENT COMPUTER TRAINING:
Students are required to attend and successfully complete at least 250 hours of computer training prior to the commencement of practical tratining of three years. One can undergo such a training along with his examinations. REGISTRATION OF ARTICLE CLERK: The article clerk is a trainee attached to a practicing Chartered Accountant. After passing the CPT, one can register as an ‘Article Clerk’ for practical training and for admission to the final course of the Chartered Accountancy. PRACTICAL TRAINING It provides an opportunity to students to acquire on the job work experience of a professional nature.
Here they learn the skills of profession while working with a practicing Chartered Accountant and also works as a industrial trainee for about one year of practical training. An Article Clerk who has completed the practical training and passed the Final Examination is also required to attend a Program on General Management and Communication Skills. SERVICES OFFERED SERVICES OFFERED KEDAR AGRAWAL & COMPANY offers no tangible goods or products. The firm is a service organisation. It provides services which are hidden from general public & even from customers.
It offers services & they are as follows: 1) TAX AUDIT Under section 44 AB, any business firm with turnover more than 40 lacs rupees has to compulsarily get their financial statements audited by a CA. For professional tax is mandatory if their gross receipts exceed 10 lacs rupees. In tax audit, the financial statements are analysed in case of a proprietorship concern, partnership firm , private limited company, corporative society and after removing all the errors in the statement a report is made with 3CD form which is a format prescribed by income tax department. ) INCOME TAX RETURNS Income tax returns are also filed by the firm for individuals as well as business organisations. Preparing return statements, calculating net income, tallying & checking financial statements & then calculating income tax as per the slab. Including assessment at the income tax department & filing of returns & documents is also done. INCOME TAX SLAB FOR INDIVIDUALS Income |Tax Rate | |Up To Rs 1,10,000 |0% | |Rs 1,10,000 to 1,50,000 |10% | |Rs 1,50,000 to 2,50,000 |20% | |Above Rs 2,50,000 |30% | INCOME TAX SLAB FOR FEMALES Income |Tax Rate | |Up To Rs 1,45,000 |0% | |Rs 1,45,000 to 1,50,000 |10% | |Rs 1,50,000 to 2,50,000 |20% | |Above Rs 2,50,000 |30% | INCOME TAX SLAB FOR SENIOR CITIZENS |Income |Tax Rate | |Up To Rs 1,95,000 |0% | |Rs 1,95,000 to 2,50,000 |20% | |Above Rs 2,50,000 |30% | 3) STATUTORY BANK AUDITS
IT includes audit of various branches of nationalized banks. The tasks undertaken are: • QUARTERLY REVIEW OF BANKS Quarterly assessment of financial statements of banks • REVENUE AUDIT OF BANKS In revenue audit of banks the revenue received by bank in the form of interest is checked by randomly taking up some cases & checking customer accounts. 4) INCOME TAX As per section 139(1) of Income Tax Act 1961 every person whose income exceeds the exemption limit is required to file the return of income. For which due dates are as follows:- Individuals- 31st July of assessment year. Firms, Companies, HUF – 31st September of assessment year. Other tasks include: • RETURNS • ASSESSMENTS PLANNING • HANDLING CASES OF SCRUTINY Under the INCOME TAX ACT, 1961. FUTURE PLANS FUTURE PROSPECTS Some of the key areas into which the firm is planning to get into areas follows:- 1. )COMPANY LAW MATTERS a. ) Annual returns of companies will be filed to REGISTRAR COMPANIES. b. ) Matters relating to REGISTRATION OF A COMPANY. c. ) Electronic filing of reports and documents related to meeting, dividends, change in the number and position of board members. 2. )EXCISE If the turnover of a manufacturing organization exceeds Rs. 1 crore the organization requires to get itself registered and obtain an Excise number to continue with its operations.
Registration and filing of returns is done for the same. There are various items on which your product falls. It is charged @ 8%, 16% and 24%. Also government is thinking on the proposals of having a single rate of tax for all the items @16%. 3. )EXPORT AND IMPORT Obtaining Import Export Code and various other formalities related to smooth execution of operations. Directorate general of foreign trade in Bhopal. Export promotion council checks for violation of rules establish. MARKETING MARKETING Areas Of Operation :- Kedar Agrawal & Co. is a well known chatted account of Ratlam. He is a very trust worthy and reputed person. Because of his name and fame.
Most of the companies of Ratlam handle their Audit and Taxation work of his office. This office covers almost 67% of the companies for their Audit and Taxation work. Besides this almost all famous companies of nearly cities are associated with Kedar Agrawal & Co. Competition and Market Share:- According to the analysis, there are 40 know chatted account office running in Ratlam, and many other chatted account are also practicing as well. But a maximum client of Ratlam deals with Kedar Agrawal & Co. Hence Kedar Agrawal & Co. is the best chatted account office in Ratlam. SWOT ANALYSIS SWOT ANALYSIS STRENGTH 1. Co-operative level office which provides Tax consultancy to general public. 2. Supportive staff. 3.
Taken franchisee from life insurance housing finance corporation for granting finance. WEAKNESS 1. )The firm is less into the matters related to Excise and Export-Import, VAT, SERVICE Tax. 2. )Expertise in some areas is yet to be achieved. 3. )Being situated in small city company faces Electricity Problem. OPPURTUNITIES 1. )As the firm is established as a corporate level office there are chances of getting MNC Audit. THREATS 1. )Even today only a small percentage of people honestly pay taxes. 2. )Increasing tax rate demotivates people. It is remarkable that India has the highest rate of income tax all over the world. CONCLUSION CONCLUSION Looking at M/s Kedar Agrawal & Co. t is the well known CA office in ratlam which provides best possible services and facilities to its customers and employees. But lot of people are unknown and unaware of the work done here,so proper marketing and advertising is suggested. It is also suggested that it should explore the upcoming areas such as cases related to Foreign trade, Excise, service tax etc. considering the branch and operations up to that level could make the firm omnipresent. A lot of people don’t even pay taxes creating a panic for government as well as for such companies . The firm has got lot potential also recruitment of experienced personnel can help to explore horizons and the firm could get ahead of competitors.