After this, I have been given my first project on quantitative analysis, in which I have to match the quantity of actual production and actual sales with the quantity given in an excel sheet and that too according to the product and its description. The second project I got is to do the cost analysis of the products' actual cost of production and actual cost of sales with the values given in an excel sheet. The third project given to me is to maintain an excel sheet with all details in the format as required by cost auditor for the purpose of cost auditing. The fourth project in accounts department that I got is related to GST. I have been told to match the GST bank advise with the Bank Portal GST Statement and to find out the entries which are in both the statements and which are missing from the either statement so that the company can recover the GST which was charged by banks on different transactions. By doing these four projects, I learnt about how the quantitative and cost analysis is done, how the cost records are maintained and how the GST can be recovered which was charged by banks on different transactions.
Wait Wait... This is not the only thing in my summer internship, Picture Abhi Baaki Hai Mere Dost....
And after this, a new chapter is added in my summer internship. I got a chance to do the training in the department in which I am doing my masters as major i.e the Finance Department. My internship of Finance Department started under the guidance of Mr. Rajat Jain (GM-Finance) with the description of the company and its products and with the description of work carried out in the finance department. The major work in Finance department is related to IMPORTS. In order to do the imports, the most important thing is opening of Letter of Credit(LC). So, during my internship period, I learnt about what is LC and its type, why do we need LC and how to open LC and what are the documents required to open a LC, the most important document required to open LC is Purchase Order(PO). In order to open a LC and to do an import, the purchase order, performa invoice(given by exporter), technical annexure(given by exporter), and draft of LC is given by applicant to its bank. The applicant bank after checking the document opens the LC and notify the applicant and the beneficiary bank. The applicant then, notify the exporter about it. The beneficiary bank after getting the notification, notify the exporter and in mean time, the item is released from exporter's country. The exporter then, submit the document(Bill of Lading, Commercial invoice, Packing list, bonafide certificate of documents, Mill Test Certificate and other documents as per contract) in its bank and the beneficiary bank then send the documents to the Issuing bank (applicant's bank). The issuing bank then notify the applicant about the receipt of documents and ask the applicant to make payment as per terms and conditions, the applicant's bank then give the documents to the applicant and then the applicant can take way the imported item from the customs after paying the custom duty.
And then, I have been told how the direct payments are made to the exporters. The another most important task of Finance department is to make the Cash Flow Statement, in which I got to know about the process of preparation of cash flow statement. Now if its import, then it will also have Dollars included in it, and if it has Dollars, then there is Foreign Exchange Exposure, hence, in order to prevent the company from this exposure, the treasury department does the hedging on the basis of opened LC. As it is done in corporate office, so I was unable to learn more about it.
Now, there is one thought that is running in your mind, IMPORT hota hai to, kya EXPORT bhi hota hai??
Ji Haan... EXPORT is also there in Tata Steel BSL. The other thing that I learnt in my internship is about the EXPORTS, i.e how the export is done under the guidance of Mr. Nitin Gupta Sir (Head-Exports). The export process is quite simple as compared to the imports. In export, there are three ways in which it can be done, the first is based on Advance, second is based on cash Against Document(CAD) and the third is based on LC. In export there are two type of documents which are prepared, the first one is Pre-shipment document and the other one is Post-shipment document. The pre-shipment document consists of sales contract, work order, custom invoice and on the basis of these, shipping bill is given by the Custom Department of Government of India and the bill of lading (BL) is given by shipping company which are treated as proof of export. The post-shipment documents include Bill of Lading, Commercial invoice, Packing list, Mill test certificate, and other documents as per contract. The documents are then submitted to the bank and importer, the documents to be submitted may vary based on type of export. Then after getting the amount of export in bank, the bank generate a Bank Realisation Certificate(BRC)which is needed to be submitted to Directorate General of Foreign Trade(DGFT) to get the remittances provided by Government of India on every export. If BRC is not submitted, then the exporter is needed to return the remittances, if already provided with Penalty.
There is one most important task, which I forgot to mention, is the preparation of Management Information System(MIS) which is prepared on daily basis, monthly basis and quaterly basis. It gives the management a complete scenario of income and expenses on daily, monthly & quaterly basis which is one of the most important information for management.
So, these are my learning from such a huge company which is in the world's top 10 steel manufactures and is one of the most trusted brand in the world, and now my summer internship came to end, this is what I learnt at Tata Steel BSL and there is a lot more to learn from here. This company is a pool of knowledge for those who want to learn and learn more..
An advice to all those who are planning to do Masters in Finance, if you got a chance to learn in this company, grab it and give your best at it.....
THE KNOWLEDGE YOU GAIN...
WILL NOT BE IN VEIN.
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THE MORE YOU LEARN...
THE MORE YOU EARN.
THANK YOU...
Pallav Kumar Goel
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