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A REPORT ON INTERNSHIP TRAINING AT CARGO

CONSOL INDIA PRIVATE LIMITED,CHENNAI

submitted in partial fulfillment of the requirements for the award of


the degree of

BACHELOR OF COMMERCE

by

NAVANEETH AAKASH.L

(Register No: 1801721036055)

DEPARTMENT OF COMMERCE (SHIFT -

II) MADRAS CHRISTIAN COLLEGE

(AUTONOMOUS) TAMBARAM, CHENNAI –

600 059

APRIL 2021
Z00
0
DECLARATION

I hereby declare that the internship report entitled “A REPORT OF INTERNSHIP


TRAINING AT CARGO CONSOL INDIA PVT LTD, CHENNAI” is an
original
work done by me in partial fulfillment of the requirement for the awarding of the
degree of Bachelor of Commerce under the guidance of MRS. SHINY ISAAC,
Department of Commerce (Shift – II), Madras Christian College, Tambaram,
Chennai-60059, and the same has not been submitted elsewhere for the award of
any degree.

Place: Chennai

( NAVANEETH AAKASH L)
ACKNOWLEDGEMENT

I first and foremost wish to express my profound thanks to our honorable Principal
DR. P WILSON for providing me an opportunity to study in this
distinguished institute.

I extend my thanks to our most respected Director (Self-financed stream) DR. D.


ROOP SINGH for his constant support and encouragement.

I then wish to extend my sincere thanks to the respectable Head of the Department
DR. NIRMALA MOHAN as her constant encouragement proved a source of
unparalleled inspiration.

I express deep gratitude to my internship advisor MRS. SHINY ISAAC for the
proper guidance and constant support to carry out this internship report. Her
guidance helped me to overcome all the hurdles. Without her support and help this
work could not have been completed.

I would like to express my sincere gratitude to the officers of CARGO CONSOL


INDIA PVT LTD, CHENNAI for allowing me to undergo internship training.

Above all, I thank God Almighty for showering upon me His grace and blessings.

( NAVANEETH AAKASH L )
TABLE OF CONTENTS

S.NO CONTENTS PAGE NO.

1 CHAPTER I

History of Finance 6
2 CHAPTER I

History of Company 30
3 CHAPTER III

Learning Experience 42
4 CHAPTER IV

Consolidation of Reports 45
5 CHAPTER V

Conclusion 49
6. BIBILIOGRAPHY 51
CERTIFICATE

This is to certify that the internship report entitled “A REPORT ON


INTERNSHIP TRAINING AT CARGO CONSOL INDIA PVT LTD,
CHENNAI” is a record of personal work done by Mr. NAVANEETH AAKASH
L student of Bachelor of Commerce, General (Shift
– II), Madras Christian College, Chennai 600059, during the period of his study in
the academic year 2020 - 2021. This internship report represents entirely an
independent work of the candidate under my supervision and guidance.

Place: Chennai

SIGNATURE OF INTERNSHIP
ADVISOR

Place: Chennai

SIGNATURE OF EXTERNAL
EXAMINER
CHAPTER I

INTRODUCTION
Meaning

FINANCE is the function in a business responsible for acquiring funds for the firm,
managing funds within the firm, and planning for the expenditure of funds on various
assets. Finance is defined as the management of money and includes activities like
investing, borrowing, lending, budgeting, saving, and forecasting. It 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. It is giving its requirements for managing wealth and
investing money. It is not just about shifting of money. But it is more about the
management or control of money i.e. how well are we managing the funds. Because our
main motive is to develop the business with a limited expense possible

Many of the basic concepts in finance originate from micro and macroeconomic theories.
One of the most fundamental theories is the time value of money, which essentially states
that a rupee today is worth more than a rupee in the future.

Financial system

A financial system is a set of institutions, such as banks, insurance companies, and stock
exchanges, that permit the exchange of funds. Financial systems exist on firm, regional, and
global levels. Borrowers, lenders, and investors exchange current funds to finance projects,
either for consumption or productive investments, and to pursue a return on their financial
assets. The financial system also includes sets of rules and practices that borrowers and
lenders use to decide which projects get financed, who finances projects, and terms of
financial deals. Financial markets involve borrowers, lenders, and investors negotiating
loans and other transactions. In these markets, the economic good traded on both sides is
usually some form of money: current money (cash), claims on future money (credit), or
claims on the future income potential or value of real assets (equity). These also include
derivative instruments.

In a centrally planned financial system (e.g., a single firm or a command economy), the
financing of consumption and investment plans is not decided by counterparties in a
transaction but directly by a manager or central planner. Which projects receive funds,
whose
projects receive funds, and
who funds them is determined by the planner, whether that means a business manager or a party
boss.

Most financial systems contain elements of both give-and-take markets and top-down
central planning. For example, a business firm is a centrally planned financial system with
respect to its internal financial decisions; however, it typically operates within a broader
market interacting with external lenders and investors to carry out its long term plans.

At the same time, all modern financial markets operate within some kind of government
regulatory framework that sets limits on what types of transactions are allowed. Financial
systems are often strictly regulated because they directly influence decisions over real
assets, economic performance, and consumer protection.

Evolution and growth of Indian financial system

The financial system and its efficiency dictate the success of the nation in terms of
economic growth. The larger, the proportion of financial assets to real assets, the greater the
scope of economic growth1 . Investments which are considered as the core of financial
structure are a pre- condition of economic growth. This apart, to sustain growth, continued
investment in the growth process is essential. As finance is an important input in the growth
process, it has a crucial role to play in the development off economy. The increasing rate of
saving is correlated with the increase in the proportion of savings held in the form of
financial assets relative to tangible assets. The word "system", in the term "financial
system", implies a set of complex and closely connected or interlined institutions, agents,
practices, markets, transactions, claims, and liabilities in the economy. The financial system
is concerned about money, credit and finance-the three terms are intimately related yet are
somewhat different from each other.

Indian financial system consists of financial market, financial instruments and financial
intermediation. In simple terms, financial system is the set of inter-related
activities/services working together to achieve some predetermined purpose or goal. It
includes different markets, the institutions, instruments, services and mechanisms which
include the generation of savings, investment capital formation and growth.
Van Horne defined the financial system as the purpose of financial markets to allocate
savings efficiently in an economy to ultimate users either for investment in real assets or for
consumption. Christy has opined that the objective of the financial system is to “ supply
funds to various sectors to activities of the economy in ways that promote the fullest
possible utilization of resources, the destabilizing consequence of price level changes or
unnecessary interference with individual desires. According to Robinson, the primary
function of the system is “to provide a link between savings and investment for the creation
of new wealth and to permit portfolio adjustment in the composition of the existing wealth.

Financial system provides services that are essential in a modern economy. The use of a
stable, widely accepted medium of exchange reduces the costs of transactions. It facilitates
trade and therefore, specialization in production. Financial assets with attractive yield,
liquidity and risk characteristics encourage savings in finical form. By evaluating
alternative investments and monitoring the activities of borrowers, financial intermediaries
increase the efficiency of resource use. Access to variety of financial instruments enables
an economic agent to pool, price and exchange risks in the markets. Trade, the efficient use
of resources, saving and risk taking are the cornerstones of a growing economy. In fact, the
country could make this feasible with the active support of the financial system. Seekers of
Funds (Mainly business firms and government) Suppliers of funds (Mainly households).
The financial system has been identified as the most catalyzing agent for growth of the
economy, making it one of the key inputs of development.

Role of Financial System

The financial sector plays a critical role in the function of the economy. It allows more
efficient transfer of resources from savers to investors as well as facilitates the use of funds
by households, businesses, traders and governments. In fact, an efficient financial sector
spurs economic growth. The Indian financial system comprises of an impressive network of
banks, other financial and investment institutions, offering wide range of products and
services, which together function in fairly developed capital and money markets.

As such, financial system has come to occupy an important role in the process of economic
development. The economic development of a country depends, inter alias, on its financial
structure. In the long run, the larger the proportion of financial assets to real assets, the
greater the scope for economic growth.

Investment is a precondition of economic growth. This apart, to sustain growth, continued


investment in the growth process is essential. Since finance is an important input in the
growth process it has a crucial role to play in the economy. The more efficient composition
of real wealth is obtained by the promotion of financial assets which provide incentives to
saves to hold a large part of their wealth in financial form. The increasing rate of savings is
correlated with the increase in the proportion of savings held in the form of financial assets
relative to tangible assets.

A sound and efficient financial system can contribute to economic growth and development
in a number of ways which include by providing a spectrum of financial assets to meet
diverse preferences of household and thus, enabling them to choose their asset portfolios to
achieve a preferred mix of return, liquidity and risk. Further, it helps to raise productivity of
capital through efficient allocation. Conditions that support the development of a more
robust and balanced financial structure with improve the ability of domestic financial
systems to contribute to their growth

● It serves as a link between savers and investors.


● It helps in utilizing the mobilized savings of scattered savers in more efficient and
effective manner. It channelizes flow of saving into productive investment.
● It assists in the selection of the projects to be financed and also reviews the
performance of such projects periodically. It provides payment mechanism for
exchange of goods and services
● It provides a mechanism for the transfer of resources across geographic boundaries.
It provides a mechanism for managing and controlling the risk involved in
mobilizing savings and allocating credit.
● It promotes the process of capital formation by bringing together the supply of
saving and the demand for ingestible funds.
● It helps in lowering the cost of transaction and increase returns. Reduce cost
motives people to save more.
● It provides you detailed information to the operators/ players in the market such
as individuals, business houses, Governments etc.

Types of Finance

Since individuals, businesses, and government entities all need funding to operate, the
finance field includes three main sub-categories: personal finance, corporate finance, and
public (government) finance.

1. Personal Finance
Personal Finance is managing the finance or funds of an individual and helping them
achieve the desired goals in terms of savings and investments. Personal Finance is specific
to individuals and the strategies depend on the individuals earning potential, requirements,
goals, time frame, etc. Personal finance includes investment in education, assets like real
estate, cars, life insurance policies, medical and other insurance, saving and expense
management.

Personal Finance includes:

● Protection against unforeseen and uncertain personal events


● Transfer of wealth across generations of the family
● Managing taxes and complying with tax policies (tax subsidies or penalties)
● Preparing for retirement
● Preparing for long term expenses or purchases involving a huge amount
● Paying for a loan or debt obligations
● Investment and wealth accumulation goals

2. Corporate Finance
Corporate Finance is about funding the company expenses and building the capital
structure of the company. It deals with the source of funds and the channelization of those
funds like the allocation of funds for resources and increasing the value of the company by
improving the financial position. Corporate finance focuses on maintaining a balance
between the risk and opportunities and increasing the asset value.

Corporate Finance Includes:


● Capital budgeting
● Employing standard business valuation techniques or real options valuation
● Identifying the source of funding in the form of equity, shareholders’
funds, creditors, debts
● Determining the utility of unappropriated profits for future investment,
operational utilization, or distribution to the shareholders
● Acquisition and investment in stock or other assets
● Identifying relevant objectives, opportunities, and constraints
● Risk management and tax considerations
● Stock issuance while going public and listing on the Stock exchange

3. Public Finance
This type of finance is related to states, municipalities, provinces in short government
required finances. It includes long term investment decisions related to public entities.
Public finance takes factors like distribution of income, resource allocation, economic
stability in consideration. Funds are obtained majorly from taxes, borrowing from banks or
insurance companies.

Public Finance includes:

● Identifying the expenditure required by the public entity


● The sources of revenue for the public entity
● Determining the budgeting process and source of funds
● Issuing debts for public projects
● Tax management

Other Types of Financing

There are several other types of financing different than the 3 main types of financing
which are discussed above. They are as follows:

4. Microfinance

Microfinance is also known as microcredit. This type of finance is specifically designed for
individuals who do not have easy access to financial services. These individuals include
unemployed and lower-income group individuals. Banks may even offer additional services
like
saving accounts, microinsurance, and trainings. The main motive behind providing
microfinance is to provide an opportunity for these individuals to become self-
reliant. Lenders often grant loans after pooling borrowers to ensure better repayment
probability. The repayment amount on such microloans is higher than that of conventional
financing due to the risk involved. Microfinance includes:

● Bank checking and savings account


● Educational programs on the principles of investing
● Training on skills like accounting and bookkeeping including cash
flow management, profit and loss statements, etc.
● Basic money management training

● Lessons on financial terms and concepts like interest rate, cash flow, budget,
debt, etc.

5. Trade Finance

Trade Finance includes financial services and instruments that enable and facilitate trade
internationally. Trade finance is ideal for importers and exporters to carry on smooth
international transactions by reducing risk in global trade. Trade finance can help reduce
the risk associated with global trade by reconciling the divergent needs of an
exporter and importer. Unlike conventional finance, trade finance is used to protect the two
parties from the various risks involved in international trade and does not mean that the
parties lack funds or liquidity. The risks involved in international trade are currency
fluctuations, non- payment by the party, political instability, creditworthiness of parties etc.,
Trade finance involves a third party for conducting a transaction thus eliminating the risk of
supply and payment Apart from protecting against the risks, non-payment, and non-receipt
of goods, trade finance also improves the efficiency and revenue. It enables the company to
receive a cash payment based on the accounts receivables as the buyer’s bank guarantees
payment. This also ensures timely payments and assured shipment of goods. The different
parties involved in trade finance are importer, exporter, banks, insurers, credit agencies,
trade finance companies. . In trade finance, the exporter is provided with the payment as per
the agreement and the importer can avail of a credit facility to fulfill the trade orders.
6. Behavioral finance

Behavioral finance, with its roots in the psychological study of human decision-making, is a
relatively new and evolving subject in the field of finance. In brief, behavioral finance is the
study of investors’ psychology while making investment decisions. Being a relatively new
subject, not much prodigious research literature is available in this subject.

However, some research studies have revealed that psychological biases such as emotions,
fear, over- confidence, greed, and risk aversion influence investors’ behavior that, in turn,
influences stock markets. As such, there is a need for studying and understanding
behavioral finance to exploit investors’ psychology for profits.

W. Forbes (2009) defined behavioral finance as a science regarding how psychology


influences financial market. This view emphasizes that the individuals are affected by
psychological factors like cognitive biases in their decision-making, rather than being
rational and wealth maximizing.

7. Social finance
Social finance is a field that helps dispel the idea that capitalist aims and social progress are
incompatible. For individuals interested in pursuing an education in the financial sector that
also benefits human communities or the environment, this unique application of economic
knowledge and investment acumen is ideal. Many groups and companies seek to make a
positive social or environmental impact. This can include businesses that donate a portion
of profits to designated charities, but these companies are usually not directly involved in
social finance because the business itself is not focused on social impact. These companies
still seek to maximize profits, often at the expense of human or ecological factors.

7. Non-Profit
Non- Profits do not have stockholders and they do not require to create any kind of earnings
or economic benefit. But they still require the same varieties of financial management as
other for- profit companies.

Nonprofit organizations impact communities and individuals by delivering services.


Financial decisions rely on good information. It is essential that organizations understand
the real costs of
their programs. Every nonprofit needs to have some cash in reserve in order to respond to
an unexpected downturn or opportunity. As public charities, nonprofits can expect to be
held to a high standard of integrity and honesty in all financial activities. Financial
management connects to every aspect of a nonprofit – governance, planning, programs,
evaluation, etc.

Need and Importance of Finance

Finance is required for the establishment of every business organization. With the growth
in activities, financial needs also grow. Funds are required for the purchase of land and
building, machinery and other fixed assets. Besides this, money is also needed to meet day-
today expenses
e.g. purchase of raw material, payment of wages and salaries, electricity bills, telephone
bills etc. You are aware that production continues in anticipation of demand. Expenses
continue to be incurred until the goods are sold and money is recovered. Money is required
to bridge the time gap between production and sales.

It may be necessary to change the office set up in order to install computers. Renovation of
facilities can be taken up only when adequate funds are available. Funds are always
required to meet the ups and downs of business and unforeseen problems. Suppose, some
manufacturer anticipates shortage of raw materials after a period obviously he would like to
stock raw materials. But he will be able to do so only when money would be available.

In this era of competition, lot of money is required to be spent on activities for promoting
sales like advertisement, personal selling, home delivery of goods etc. Funds are also
required to avail of business opportunities. Suppose a company wants to submit a tender but
some minimum amount is required to be deposited along with the application. In the case of
non- availability of funds it would not be possible for the company to apply.

Finances are about more than money in your hand. While most businesses have some
amount of debt – especially in the beginning stages – too much debt compared with
revenues and assets can leave your with more problems than making your loan payments.
Vendors and suppliers often run credit checks and may limit what you can buy on credit or
keep tight payment terms. Debt ratios can affect your ability to attract investors including
venture capital firms and to acquire or lease commercial space. No matter how well your
business is doing, you have to prepare for rainy
days and even storms. That's why smart businesses create financial plans for downturns.
Cash savings, good credit, smart investments, and favorable supply and real estate
arrangements can help a business stay afloat or even maintain momentum when the
business climate is unfavorable.

A company should always look at prospects to grow. It needs significant financial


investment to acquire new capital, staff or inventory. At this juncture, they have to wade
through their financial options, which may involve infusions of equity capitals – perhaps
from venture capitalists. Every situation is different, but managers consider the cost of
success and their options for obtaining growth financing.

Every company needs to be able to pay their employees. Even the most dedicated
staff won't stick around long once the paychecks stop. The larger an organization gets, the
larger the labor costs. Employees need to receive compensation for their job without which
they will not work efficiently. Employee satisfaction is a key to higher productivity.
Therefore, any business needs to have enough cash in hand to be able to meet this
requirement

In the modern age, marketing is an important function of business, the reason being the area
of marketing has become quite wide and that has necessitated various activities, like –
advertising and publicity, sales promotion, marketing mix, selection of marketing
intermediaries, distribution of goods, transportation, warehousing and marketing research,
etc.

A profit and loss statement is relevant to business finance because it shows whether
your company can reasonably handle new expenses, such as investments in equipment or
property. However, just because your business shows a net profit on its income statement
doesn't mean you'll have the cash you need to pay off loans or buy new equipment. Some
outgoing expenditures, such as payments on loan principal, use up available cash without
appearing on your profit and loss as expenses. Despite these discrepancies, if your income
statement shows a trend toward profitability over time, you'll have greater potential for
successfully paying off debt than if your income statement shows that your company has
consistently lost money.

Financing for working capital is easier to obtain than financing for major purchases
and investments. Many banks offer unsecured credit cards and business credit lines. You
can
use these options to cover business expenses without staking personal collateral or filling
out long loan applications requiring extensive documentation. However, interest rates for
unsecured financing
options tend to be considerably higher than for business-lending products that are harder to
obtain, such as secured term loans.

Business finance is important when evaluating working capital financing because it


gives you the tools and information to assess how much money you need and the best way
to get it. If your company operates with a monthly cycle where it accrues most of its
expenses early in the month and earns most of its income later in the month, a high-interest
credit card isn't such a bad option. You'll pay the money back quickly, so you won't be
seriously hurt by the interest rate.

Finance is also associated to borrowing. A finance strategy of working primarily or


strictly with capital from retained earnings is a prudent approach, but it can also make you
overly cautious. You may hesitate to buy a piece of equipment you need because you don't
have the cash on hand, but you would have saved more in labor over time than you would
have spent on the equipment.

Financial Instruments

For availing financial services an individual or company needs financial instruments. A


Financial Instrument is a contract between two parties and involves monetary activities.
Financial instruments can be used for investment purpose or lending and borrowing
purpose. Financial instruments are either classified as Cash Instruments or Derivative
Instruments:

⮚ Cash Instruments

● The value of Cash Instruments is determined by market forces. Cash instruments


involve instruments that are easily transferable by the parties. It could be in the form
of securities, loans or deposits. The different types of cash instruments available in
the market are certificates of deposits, repurchase agreements like the Repos, bills
of exchange, interbank loans, commercial papers, e securities and many more.

⮚ Derivative Instruments

● The value of Derivative Instruments is derived from the valuation of another entity
which can be an asset, or an index, or any other factor that can influence the value
of
the
derivatives. The different types of derivative instruments available in the market are
futures, forwards, swaps, and options.

Financial instruments are also classified based on their asset class. Financial instruments
can be debt-based or equity-based.

⮚ A debt-based instrument is in the form of loans that the issuing party avails from
the investors. Debt-based financial instruments include bonds, bond futures and
options, Interest rate swaps, Treasury bills, Interest rate futures and forward rate
agreements

⮚ An equity-based instruments reflect ownership based on the share of equity an


investor holds..

⮚ Another type of asset class is the Forex Instruments which includes forex futures,
forex options, currency swaps and more.

Finance consists of a wide range of activities. Some of the terms associated with finance
and financial activities are as follows:

● Interest rates and spreads


● Yield (coupon payments, dividends)
● Financial statements (balance sheet, income statement, cash flow statement)
● Cash flow (free cash flow, other types of cash flow)
● Profit (net income)
● Cost of capital (WACC)
● Rates of return (IRR, ROI, ROA)
● Dividends and return of capital
● Shareholders
● Creating value
● Risk and return
● Behavioral finance
Finance Companies:

Finance companies have experienced sustained growth throughout the 1990s. By the end
of the decade, finance companies had become America's second largest source of business
credit, behind banking institutions. Larger commercial finance companies often offer small
business owners a variety of lending options from which to choose. These include
factoring, working capital loans, equipment financing and leasing, working capital loans,
specialized equity investments, collateral- based financing, and cash-flow financing. Some
also offer additional services in connection with those loans, such as assistance with
collections.

Commercial finance companies come in all shapes and sizes. The size of the firm
usually has some bearing on the exact services it offers. The nation's largest finance firms
(The Money Store, AT&T Small Business Lending Corp.) have established networks of
offices across the country, and they sometimes offer lending services that even banks do
not. For example, The Money Store—which made more than 1,700 loans worth $635
million in fiscal year 1996—offers loans to entrepreneurs looking to take ownership of a
franchise, an option that is not available at all banks. But as Entrepreneur's Cynthia Griffin
noted, "in addition to the mega players, the commercial finance industry is populated by
hundreds of smaller firms." These firms generally make asset-based loans, providing
services to small business owners who are unable to secure loans from their banks.

Limitations of the various financial approaches

1. This approach places more importance on procurement of funds from external


sources and neglects the issues relating to the efficient utilization of funds. It is
concerned with the increasing of funds it attaches more importance to the viewpoint
of external parties who provide funds to the business as well as completely ignores
the internal persons who make financial decisions.
2. It places more importance on the problems faced by corporate enterprises in
procuring the funds. The non-corporate enterprise like solitary proprietorship and
partnership firms are considered outside its scope.
3. ToThis approach focus on the financial problems on the occurrence of special
events such as incorporation, merger etc and fails to consider the day-to-day
financial problems of a normal firm.
4. This approach gives more importance on the problems relating to long term
financing as well as the problems relating to working capital financing are
considered outside the purview of this approach.
5. Financial statements illustrate the company’s financial position at the time.
Unfortunately, it usually does not give trend analysis unless the reader is well
versed in financial ratios. The users of financial statements who are the primary
stakeholders are more interested in the future of the institution for the long term and
short term which are not indicated.
6. Accounting also uses historical costs to assess the values, and this does not consider
such things like price changes or inflation.
7. Finally, accounting and financial statements do not measure things which do not
have a monetary value. Factors relevant to a business such as customer loyalty
cannot be expressed in financial figures regardless of their importance. Other
qualities like reputation and management ability also have no place within financial
statements.
8. We all know that inflation is a reality. Sadly, financial statements do not consider
the effects of inflation on the assets and liabilities shown in the balance sheet. In a
period when the inflation rate is too high, the balance sheet misleads by showing
substantially low values.
9. There are many situations when the financial statement becomes a tool to commit
fraud. There are a lot of agencies who base their decisions on funding, rating etc. on
financial statements. Another possibility of window dressing of financial statement
could be by the management team itself. If the shareholders have introduced
remuneration policy linked to the performance shown in the financial statements,
the management team has an incentive to deliberately show higher incomes.
Another possibility of financial statement manipulation can try is when majority
shareholders are part of the board of directors and the management team.
10. Successfully running a business is not limited to sales, expenses, and profits. A lot
of other environmental, sociological, political factors, competitive position,
contribution towards local communities etc. impact the business. These factors are
ignored in the
financial
statements. Although big and good companies have started taking care of these
factors in their annual reports, there are many companies for whom writing for
reporting about these factors is just a formality.
11. When somebody uses unaudited financial statements, they can really be misleading
without the express opinion of the auditor’s about the true and fair view of the
affairs of the company. some audited financial statements are also as good as
unaudited financial statements due to various reasons. The reasons could be the
inefficiency of auditors, when management and auditors have common interests,
etc.
12. The basic recording of transactions is carried out by the accounting executive who
is normally not highly qualified. So there are always chances of errors and
omissions. Such misrepresentation in the ultimate financial statements.
13. Financial statements are not self-explanatory which a layman can understand.
Reading, understanding and interpreting the financial statements requires expert
knowledge of accounting, finance etc. Investors from other backgrounds have real
difficulty in deciding whether to continue their investment in a particular company
or not. They have to rely on other experts. A big investor can still manage but small
investors may find it difficult to afford expert advice for their small investments.

Financial Management

FINANCIAL MANAGEMENT is the job of managing a firm's resources so it can


meet its goals and objectives.

Financial Management means planning, organizing, directing and controlling the


financial activities such as procurement and utilization of funds of the enterprise. It means
applying general management principles to financial resources of the enterprise.

One of the critical limitations of financial management is the rigidity it ensures within
enterprises. The standards of operation are fixed by incorporating particular accounting
parameters; however, when the tasks are done, the conditions may change from the original
situation. The rules are not able to keep up with the dynamic changes in the market
environment, and that leads to bureaucracy and lost revenue.
Similarly, implementing standards of practice within a business or an institute comes
with a cost. It requires both hardware and software installation and orientation for the entire
staff so they can adjust to the new system seamlessly.

The objectives of financial management

1. Profit maximization

Main aim of any kind of economic activity is earning profit. A business concern is also
functioning mainly for the purpose of earning profit. Profit is the measuring techniques to
understand the business efficiency of the concern.

The finance manager tries to earn maximum profits for the company in the short-term and
the long- term. He cannot guarantee profits in the long term because of business
uncertainties.

2. Wealth maximization

Wealth maximization is also a main objective of financial management. Wealth


maximization means to earn maximum wealth for the shareholders. So, the finance
manager tries to give a maximum dividend to the shareholders. He also tries to increase the
market value of the shares. The market value of the shares is directly related to the
performance of the company. Better the performance, higher is the market value of shares
and vice-versa.

3. Proper estimation of total financial requirements

Proper estimation of total financial requirements is a very important objective of financial


management. The finance manager must estimate the total financial requirements of the
company. He must find out how much finance is required to start and run the company. He
must find out the fixed capital and working capital requirements of the company. His
estimation must be correct. If not, there will be shortage or surplus of finance. Estimating
the financial requirements is a very difficult job. The finance manager must consider many
factors, such as the type of technology used by company, number of employees employed,
scale of operations, legal requirements, etc.

4. Proper mobilization
Collection of finance is an important objective of financial management. After estimating
the financial requirements, the finance manager must decide about the sources of finance.
He can collect finance from many sources such as shares, debentures, bank loans, etc.
There must be a proper balance between owned finance and borrowed finance. The
company must borrow money at a low rate of interest. He must also keep in mind various
other factors such as risk involved before selecting a source of funds.

5. Proper utilization of finance

Proper utilization of finance is an important objective of financial management. The finance


manager must make optimum utilization of finance. He must use the finance profitable. He
must not waste the finance of the company. He must not invest the company’s finance in
unprofitable projects. He must not block the company’s finance in inventories. He must
have a short credit period.

6. Maintaining proper cash flow

Maintaining proper cash flow is a short-term objective of financial management. The


company must have a proper cash flow to pay the day-to-day expenses such as purchase of
raw materials, payment of wages and salaries, rent, electricity bills, etc. If the company has
a good cash flow, it can take advantage of many opportunities such as getting cash
discounts on purchases, large-scale purchasing, giving credit to customers, etc. A healthy
cash flow improves the chances of survival and success of the company.

7. Continuous operation of business

Survival is the most important objective of financial management. The company must
survive in this competitive business world. It is essential that the decisions taken are
progressive and help in sustaining the business through the ups and downs of business.

8. Creating reserves

One of the objectives of financial management is to create reserves. The company must not
distribute the full profit as a dividend to the shareholders. It must keep a part of it profit as
reserves.
Reserves can be used for future growth and expansion. It can also be used to face
contingencies in the future.

9. Proper coordination

Financial management must try to have proper coordination between the finance
department and other departments of the company.

10. Create goodwill

Financial management must try to create goodwill for the company. It must improve the
image and reputation of the company. Goodwill helps the company to survive in the short-
term and succeed in the long-term. It also helps the company during bad times.

11. Financial discipline

Financial management also tries to create a financial discipline. Financial discipline means:

● To invest finance only in productive areas. This will bring high returns (profits) to
the company.
● To avoid wastage and misuse of finance.

12. Reduce cost of capital

Financial management tries to reduce the cost of capital. That is, it tries to borrow money at
a low rate of interest. The finance manager must plan the capital structure in such a way that
the cost of capital it minimized.

13. Reduce operating risks

Financial management also tries to reduce the operating risks. There are many risks and
uncertainties in a business. The finance manager must take steps to reduce these risks. He
must avoid high-risk projects. He must also take proper insurance.

14. Prepare capital structure


Financial management also prepares the capital structure. It decides the ratio between
owned finance and borrowed finance. It brings a proper balance between the different
sources of capital. This balance is necessary for liquidity, economy, flexibility and stability.

Important terms used in Finance

1. Accounts Payable

Accounts payable represents your small business’s obligations to pay debts owed to
lenders, suppliers, and creditors. Sometimes referred to as A/P or AP for short, accounts
payable can be short or long term depending upon the type of credit provided to the
business by the lender.

2. Accounts Receivable

Also known as A/R (or AR, good guess), accounts receivables is another business finance
101 term that means the money owed to your small business by others for goods or services
rendered. These accounts are labeled as assets because they represent a legal obligation for
the customer to pay you cash for their short-term debt.

3. Accrual Basis

The accrual basis of accounting is an accounting method of recording income when it’s
actually earned and expenses when they actually occur. Accrual basis accounting is the
most common approach used by larger businesses to record and maintain financial
transactions.

4. Accruals

A business finance term and definition referring to expenses that have been incurred but
haven’t yet been recorded in the business books. Wages and payroll taxes are common
examples.

5. Asset
This business finance key term is anything that has value—whether tangible or intangible—
and is owned by the business is considered an asset. Typical items listed as business assets
are cash on hand, accounts receivable, buildings, equipment, inventory, and anything else
that can be turned into cash.

6. Balance Sheet

Along with three other reports relating to the financial health of your small business, the
balance sheet is essential information that gives a “snapshot” of the company’s net worth at
any given time. The report is a summary of the business assets and liabilities.

7. Bookkeeping

A method of accounting that involves the timely recording of all financial transactions for
the business.

8. Capital

Refers to the overall wealth of a business as demonstrated by its cash accounts, assets, and
investments. Often called “fixed capital,” it refers to the long-term worth of the business.
Capital can be tangible, like durable goods, buildings, and equipment, or intangible such as
intellectual property.

9. Working Capital

Not to be confused with fixed capital, working capital is another business finance 101 term.
It consists of the financial resources necessary for maintaining the day-to-day operation of
the business. Working capital, by definition, is the business’s cash on hand or instruments
that you can convert to cash quickly.

10. Cash Flow


Every business needs cash to operate. The business finance term and definition cash flow
refers to the amount of operating cash that “flows” through the business and affects the
business’s liquidity. Cash flow reports reflect activity for a specified period of time, usually
one accounting period or one month. Maintaining tight control of cash flow is especially
important if your small business is new, since ready cash can be limited until the business
begins to grow and produce more working capital.

11. Cash Flow Projections

Future business decisions will depend on your educated cash flow projections. To plan ahead
for upcoming expenditures and working capital, you need to depend on previous cash flow
patterns. These patterns will give you a comprehensive look at how and when you receive
and spend your cash. This info is the key to unlock informed, accurate cash flow
projections.

12. Depreciation

The value of any asset can be said to depreciate when it loses some of that value in
increments over time. Depreciation occurs due to wear and tear. Various methods of
depreciation are used by businesses to decrease the recorded value of assets.

13. Fixed Asset

A tangible, long-term asset used for the business and not expected to be sold or otherwise
converted into cash during the current or upcoming fiscal year is called a fixed asset. Fixed
assets are items like furniture, computer equipment, equipment, and real estate.

14. Gross Profit

This business finance term and definition can be calculated as total sales (income) less the
costs (expenses) directly related to those sales. Raw materials, manufacturing expenses,
labor costs, marketing, and transportation of goods are all included in expenses.
15.Income Statement

Here is one of the four most important reports lenders and investors want to see when
evaluating the viability of your small business. It is also called a profit and loss statement,
and it addresses the business’s bottom line, reporting how much the business has earned
and spent over a given period of time. The result will be either a net gain or a net loss.

15. Intangible Asset

A business asset that is non-physical is considered intangible. These assets can be items
like patents, goodwill, and intellectual property.

16. Liability

This business finance key term is a legal obligation to repay or otherwise settle a debt.
Liabilities are considered either current (payable within one year or less) or long-term
(payable after one year) and are listed on a business’s balance sheet. A business’s accounts
payable, wages, taxes, and accrued expenses are all considered liabilities.

17. Liquidity

Liquidity is an indicator of how quickly an asset can be turned into cash for full market
value. The more liquid your assets, the more financial flexibility you have..

18. Statement of Cash Flow

One of the important documents required by lenders and investors that shows a summary of
the actual collection of revenue and payment of expenses for your business. The statement
of cash flow should reflect activity in the areas of operating, investing, and financing and
should be an integral part of your financial statement package.

19. Statement of Shareholders’ Equity


If you have chosen to fund your small business with equity financing and you have
established shares and shareholders as part of the controlling interests, you are obligated to
provide a financial report that shows changes in the equity section of your balance sheet.
CHAP

TER II

HIST

O RY

OF

CARG

CONS

OL

INDIA

PVT
LTD
Headquartered in Chennai, CCL is a reliable and leading NVOCC provider with 3 own offices and 22
associate offices covering all major coastal gateways and inland presence at key ICD locations. A strong
and capable team is proactively available for clients throughout the country.

CCL offers direct consolidation services in and out of most major ports in India. With ICDs well linked to
gateway ports, CCL is able to provide a seamless inland distribution and carriage of cargo from the
hinterlands to the gateway port. Singapore, Port Klang, Colombo, Hong Kong, Busan and Dubai are also
utilized as transshipment hubs for India.

In addition, CCL is able to offer FCL carriage to clients across the world and special rates for African and
European sectors. CCL comprehensive approach to LCL management ensures reliable and rapid shipment
of goods — worldwide. Our philosophy is to run the product in-house so that we control the cargo flow,
transit times, costs and information accuracy

Our Offices Development Plan


Over the next few years, the investor will be enabled to roll out the planned CCL offices in various
strategic locations.

Though the plan may sound ambitious at the outset, with the appointment of dynamic leadership in each
location, Each office will serve the needs of other offices, partners and customers. In doing so, our offices
will continue to achieve sustainable growth in a remarkable way.

Our Future Plan – Emerging Market


Before the end of Dec 2013, CCL will reach the position of TOP 5 consolidator across south India.

Vision
To take utmost Caring of your valuable Cargo with Logic in logistics.

Mission
Providing innovative ways to serve you and handle all of your freight needs.

Services
Ship
Advantages for our customers
As a Non Vessel Operating Common Carrier, CCL is rated among the top customers of almost all leading
shipping lines operating in the region. This reputation has ensured us competitive rates & space with
major liners for consolidated shipments on a regular basis.

Import availability within 4 days


Most comprehensive shipping schedule with confirmed space and the most direct services
Strategically located facilities covering the Dubai seaport
Unique agreements with Sea carriers
Strong and independent global network of agents
The Services Offered:
Consistency and reliability
Professionalism and integrity
Well organized, planned and managed operations
The company is managed by professionals equipped with exposure to the shipping industry
Our experienced staff maintain an excellent rapport with the customers and port authorities and are
abreast of the shipping and business practices of the market. Through our strategic alliances with overseas
partners and Regional Agency networks, CCL offers professional, economical and reliable transport
solutions. Our emphasis on tailor made solutions as required by our clients is reflected by our range of
services.

Advantages for LCL


CCL comprehensive approach to LCL management ensures reliable, rapid shipment of goods —
worldwide. Our philosophy is to run the product in-house so that we control the cargo flow, transit times,
costs and information accuracy.

CCL focused on customer’s business objectives. Our network provides you with:

Direct or maximum-one-stop routings to ensure reliable, fast shipments


Tailored pricing
Minimization of cargo-damage risk through reduced trans-loading
Single point of contact for all your global LCL needs
Access to more than 200 global sailings a week
Using our LCL service allows you to:

Direct or maximum-one-stop routings to ensure reliable, fast shipments


Benefit from maximized routing options with ample supply of equipment and vessel space via preferred
carriers
Take advantage of our leveraged buying power
Improve overall service while keeping costs contained
As a first of its kind award, India Cargo Awards honours deserving industry personalities and companies
through a fair and unbiased selection process using online voting. India Cargo Awards are supported by
the Government of India, Ministry of Civil Aviation and is acknowledged as one of the most esteemed
awards in the Cargo industry of India.

It is a formal black tie ceremony that is graced by the who’s who of the cargo industry.Honoring all the
stalwarts from different regions, the second edition of the India Cargo Awards was held in October 13,
2016 at the HYATT REGENCY, GURGAON.

At the awards in GURGAON, the ceremony was graced by Mr. Sandeep Singh , Director of DDP
publications Pvt Ltd & Mrs. India 2016, along with leaders of the cargo industry.

CARGO CONSOL INDIA PVT LTD, Mr.C. Nagaraj, Managing Director, received the “FASTEST HUB
DEVELOPER OUTSIDE OF INDIA” award, The award was given by Dr. RENU SINGH PARMAR,
economic adviser, Ministry of Civil Aviation and the Title winner certificate given by Mr. Vineeth
Pandey, Chief General Manager of Indian Post , Government of India.

CARGO CONSOL INDIA PVT LTD known as CCL, offers export and import consolidation in a larger
scale mode , specialized in DG handling, air cargo operations, special equipments and freight forwarding.

CCL has been consistent on its own proliferation to an extensive level on yearly basis, speaking on the
occasion, Mr. Nagaraj , MD, thanked all of their employees and customers and well wishers for their
wonderful achievement.

It’s very glad and privilege to achieve this award, since CCL is the prime company has introduced
Colombo as a HUB for consolidation rather than using Singapore & Port Kalng , which was the
innovative thinking and initiative on the consolidation industry of so many years of journey, This pioneer
strategy of CCL created a mile stone in the industry which is remarkable to mentioned and leads to
continue to growth and vast developments in a short span of time.

India Cargo Awards supports, promotes and develops the Indian cargo and logistics industry by
identifying and rewarding excellence, and inspiring its practitioners to continuously raise the
standards of their
products, and service offerings.

These awards are also braced by esteemed trade bodies like Air Cargo Agents Association of India
(ACAAI), Domestic Air Cargo Agents Association of India (DACAAI), Express Industry Council in
India (EICI), Federation of Indian Export Organisations (FIEO) and Federation of Freight Forwarders’
Association in India (FFFAI).

India Cargo Awards runs and governs a comprehensive programme across a range of awards developed to
recognise the industry’s most vital sectors and product offerings. Awards are presented across four
regions: South & East and West & North.

Name Department

Ms. Gayathri Regional Manager – Marketing

Mr. Abishek Territory manager

Mr. Manager –Credit Control


Gnanasekar

Mr. Sukesh Manager

Mr. Gopi Deputy Manager

Mr. Deputy Manager


Rajadurai

Mr. Chella Executive – sales


durai

Mr. Ajee Executive – sales

Ms. Vanitha Deputy Manager – Finance


Mr. Sathiya Operation

Mr. Vijay Operation

Ms. Export – Documentation


Narmatha

Ms. Divya Asst manager – finance

Ms. Asina Executive – customer support

Mr. Executive – Marketing


Nishanth

Name Department

Mr. Naveen Asst Manager – Imports


Kumar

Ms. Devisree Sr. Executive – Customer Support

Mr. Ranjith Executive – Documentation


Kumar

Ms. Hema Executive – Customer Support


Priya

Mr. Executive
Saravanan
CHAPTER III LEARNING

PROCESS
Introduction:

The intern, in Cargo Consol India Pvt Ltd was introduced to the Accounts and Finance
Department. The various sections of the department were introduced and the functioning
process of each section was explained to briefly educate the intern about the accounts and
finance in Cargo Consol India pvt Ltd. Among the Different accounts and finance sections,
the intern was placed in the finance and logistics section. In this section the intern learnt
about the financing of other different sections being generated through the finance and
logistics section. All the payments were made from this department based on the available
funds in the Cargo Consol India Pvt Ltd Accounts.

Week 1

The intern was placed for training in the accounts and finance sction of the finance
department in Cargo Consol India Pvt Ltd. Brief introduction about the functioning of the
section was given. The intern was taught . Later in the week the intern was made to observe
things around and have an idea of whats going inside the firm . Also the import was sent to
the import section to assist the manager who manages the imoorted goods and the intern was
asked to have a file and record of what all things had been imported and was told about the
bills of exchange procedures

Week 2

The intern was given an idea about bank advice copy and letter of credit, also
assist the manager who deals with it. The intern was given a small amount of idea
about export and ask the intern itself to research about export and come back to
office

Week 3

The intern was asked to collect all the datas of imports for all the days and
inputed in a excel sheet and have a consolidated data and upload it in a tally. This
was repeated every day of the week
Chapter IV

Consolidation of

Reports
FORM 2

Student’s Evaluation of Internship Experience


Student Name: Navaneeth Aakash L

ID: 1801721036055

Class: III BCom A

Name and Address of Interning Company:

Cargo consol India, Citi centre, Mylapore, Chennai - 600004

Brief Description of Duties and Projects:

Data enties and tally. Bank Advice copy, data entries of import and export, functioning of
import and export procedures, letter of copy and bills of exchange

In what ways did your B.Com program prepare you for this work experience?

The intern was theoretically equipped by the BCom program, to practice and apply
the concepts practically. Various Accounting concepts, acquired during the B.Com
program,
were made use to complete the given tasks and learning assignments during the
internship program.

What did you learn during the internship experience?

The intern was exposed to the company’s work culture and was equipped with skills like
communication with co-workers, section staff and all higher level authorities; quick
process- learning capacity to grasp the modalities of the section; representation of the
section in various platforms among the department, responsive learning from section heads
and cooperation with co- workers. The staff in the section helped the intern to learn the
various technical process about data entry, tally, bank advice copy, letter of copy, bills of
exchange involved in the functioning of accounts and finance section in the finance
department.

What did you enjoy most about the internship (from both the personal and
professional perspectives)?

The intern enjoyed the friendly atmosphere in the department and was also given
ample space and opportunities to explore and learn from different individuals. The
intern had the privilege to observe and practice new accounting concepts.

What did you find most difficult about the experience (from both the personal and
professional perspectives)?

The intern found it difficult to learn many vast concepts in a very short span of time.
Few theoretical concepts learnt by the intern in their B.Com program were not
sufficient enough to equip the financial functioning of the department.
Would you pursue a permanent position with this firm? Why

The intern would love to have a permanent position in the firm because of the
legacy, friendly atmosphere and such optimist work space.

Overall Comments and Recommendations

Overall, the intern was fully trained and furnished with sound financial knowledge about
bank advice copy, data entries of import export journal, functioning of import exports
procedures,letter of copy and bills of exchange.

Signatures:

Student: Navaneeth Aakash L

Faculty Internship Advisor: Mrs. Shiny Isaac


Chapter V

CONCLUSI

ON
The intern was exposed to the company’s work culture and was equipped with skills like
communication with co-workers, section staff and all higher level authorities; quick process-
learning capacity to grasp the modalities of the section; representation of the section in various
platforms among the department, responsive learning from section heads and cooperation with
co- workers. The staff in the section helped the intern to learn the various technical process of
data entries, tally,journals functioning of company involved in the functioning of accounts and
finance section in the finance department. The intern was fully trained and furnished with
sound financial knowledge about bank advice copy, data entries of import export journal,
functioning of imports and exports procedures, letter of copy and bills of exchange.
BIBILIOGRAPHY
1.Definition of Finance

https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-finance-
definition/

https://www.investopedia.com/terms/f/finance.asp

1. History of Finance

https://www.investopedia.com/ask/answers/what-is-

finance/

https://history-of-finance.org/

2. History of Finance

https://www.palgrave.com/gp/blogs/business-economics-finance-
management/exploring- economic-history/history-of-finance

https://startupaplan.com/what-is-financial-management/

https://www.encyclopedia.com/finance/finance-and-accounting-
magazines/finance- historical-perspectives

3. Air India

History

http://www.airin

dia.in/

https://en.wikipedia.org/wiki/Air_India

4. Financial Terms

https://www.fundera.com/blog/business-finance-terms-and-definitions

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