Pro 2
- 1. STUDY ON DETERMINING THE EFFECTIVENESS OF SECURITY DEPOSITS DEDUCTIONS OF RAILWAY TENDER’S AT EFFTRONICS SYSTEMS PRIVATE LIMETED, VIJAYAWADA Project Report submitted to JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted By T. SRINIVASA RAO Reg. No: 10HP1E0050 Under the guidance of KAVITHA.P Asst. Professor POSTGRADUATE DEPARTMENT OF BUSINESS ADMINISTRATION ANDHRA LOYOLA INSTITUTE OF ENGINEERING AND TECHNOLOGY (Affiliated to Jawaharlal Nehru Technological University, Kakinada) VIJAYAWADA – 520 008 2011-2012
- 2. DECLARATION I hereby declare that this project entitled “A STUDY ON DETERMINING THE EFFECTIVENESS OF SECURITY DEPOSITS DEDUCTIONS OF RAILWAY TENDER’S AT EFFTRONICS SYSTEMS PRIVATE LIMETED, VIJAYAWADA, has been prepared by me during the months of July 2011 and August 2011, in partial fulfillment of the requirement for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” by Jawaharlal Nehru Technological University, Kakinada. I assure that this project is the result of my effort and that it has not been submitted to this University or any other University for the award of any Degree or Diploma. VIJAYAWADA T. SRINIVASA RAO DATE: (Reg.No. 10HP1E0050)
- 3. ACKNOWLEDGEMENTS I express my sincere thanks to Rev. Fr. THAINESE S.J., Director of Andhra Loyola Institute of Engineering and Technology, Mr. DURGA PRASAD OJHA., Principal of Andhra Loyola Institute of Engineering and Technology, Vijayawada who had supported me in taking up and completion of my summer internship. I express my deep sense of gratitude to Mr. ANIL STEVENS, M.B.A., Head of the Department of Business Administration of Andhra Loyola Institute of Engineering and Technology for his valuable guidance, timely support, co-operation and constant encouragement at every stage. I wish to express profound gratitude to my faculty member and my project guide KAVITHA.P, Asst., Professor, M.B.A, for his guidance and timely suggestions, inspiration and encouragement throughout the period of work right from the selection of topic till the successful completion of my project work. I express my sincere and wholehearted thanks to my company guide Mr. Anil Kumar at Efftronics Systems Private Ltd, Vijayawada, for his guidance in acquiring proper information and all the employees for their co-operation in providing required information for building up my project successfully. I also express my sincere thanks to faculty of Andhra Loyola Institute of Engineering and Technology who helped me one way or the other in upbringing of my project. Finally, I thank my parents and everyone who helped me in bringing up my project in a successful manner with their good wishes and care. T. SRINIVASA RAO (Reg. No.10HP1E0050)
- 4. EXECUTIVE SUMMARY In the field of taxation, a deposit is not included as gross income to the receiving party until the depositing party chooses to apply the funds to purchase services. A 1990 ruling, provides that a deposit differs from an advance payment because the depositing party has dominion over the funds and retains the right to insist upon repayment in cash. On the other hand, the party making an advance payment retains no right to insist upon the return of the funds as long as the recipient fulfils the contractual agreement. “ Money paid in advance of a transaction to protect a seller against damage or non- payment is considered as a deposit”. In today’s business world the importance of these deposits has grown tremendously. One among those-Security Deposit, the name itself indicates that it is a measure of security to the recipient. This may be used by the landlords, companies involved in manufacturing, constructions etc., to receive certain percentage of total contract value before the commencement of that contract or activity. This security deposit is a non-taxable income. In consideration of railway tenders, after accepting of quotation for their tender, the railways has to pay certain percentage of amount in the form of security deposits to the company. It is regarded as an asset to the company. So it is the responsibility of the finance department to maintain track of records relating to various customers and receipt of security deposits from them. So, this study mainly specified on the determination of the security deposits of main customers of Efftronics i.e., railways. The details of this project will be the following ones.
- 5. TITLE “A Study to determine the deductable security deposit amount from supply (Bill copies) payments of Efftronics Systems Private Limited., Vijayawada”. Chapter 1 of the study contains the industry profile of Information Technology sector, Electrical and Manufacturing sector in India. The second part of the first chapter deals with the theoretical framework chosen for the study undertaken in determining the deductible amounts of security deposits at Efftronics Systems Private Limited. Chapter 2 of the study contains the brief history which gives details of the origin of the company, vision, mission, philosophies, objectives, quality policies, organizational structure, departments and activities etc, of, Efftronics Systems Private Limited., Vijayawada. Chapter 3 of the study gives brief description of the research methodology of the entire study starting from the need for the study, objectives of the study and consists of methodology used for the study, analyzing and defining the scope of the study along with the limiting factors to the study. Chapter 4 of the study gives a clear view of data collected from the reports, in a tabulated form, and framing interpretations for such numerical data through the study. Chapter 5 of the study attempts to make detailed analysis of the interpretations reached in the former chapter, identify the bright and grey areas and give recommendations as per the requirements of the organization. Chapter 6 gives limitations of the study and states the recommendations offered to the company on the basis of the study with regard to prevailing situations in the organization. At the end conclusion also included in this chapter. Finally, at the end Appendix and Bibliography are enclosed with the project.
- 6. INDEX S.NO CONTENTS PAGE NO. CHAPTER - I Industry Profile 1-11 1 Conceptual Review 12-21 CHAPTER - II 2 A Brief Profile of Efftronics 22-40 Systems Pvt Ltd., 3 CHAPTER - III Research Methodology 41-42 CHAPTER - IV 4 Data Collection 43-57 CHAPTER - V 5 Data Analysis and Interpretation 58-85 CHAPTER –VI 6 Findings 86 Suggestions 7 Bibliography 87