Summer Internship Report

On

Costing Model, Study of IFRS and ROI analysis of available

avenues

AT

Network Integrators (India) Private Limited [NIPL],Pune

Submitted by:

Surabhi Jain

Roll No.42

INSTITUTE OF MANAGEMENT AND DEVELOPMENT AND RESEARCH

PUNE-411004

TABLE OF CONTENTS

S.NO. HEADINGS PAGE NO.

1. Acknowledgement 3

2. Objectives 4

3. Executive Summary 6

4. Organizational Background 9

5. Introduction 14

6. Organizational Processes 33

7. Methodology Used 40

8. Conclusion 47

2

ACKNOWLEDGEMENT

I believe that no task is complete without thanking the people and the entities that

made the task possible. At the very onset, I would like to express my immense

gratitude to Mr. Anand Godse(Director NIPL), who has been helping and at times

straight forward and sharp. It was a learning experience working for him.

I express my gratitude to all the office staff for supplying me with the data required

for the project.

Next I would like to thank Abhin, who was there with me on the same project, for his

immense patience while discussing details of the project and without whom I may not

have been able to learn as much as I have.

I am also grateful to my faculty for the support they gave me all time and guided me

throughout the period.

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Chapter 1Chapter 1

OBJECTIVESOBJECTIVES

Objective of the Summer internship

Objective of costing project

Objective of Buddy Chef’s Project

Objective of IFRS Project

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Objective of Summer Internship:

To work in the corporate world in tune with the professional work methodologies to induce

the qualities needed to equip myself to work effectively and efficiently in the real world

scenario and learn to manage things well.

To observe processes in the organization and experience the reasons for them

To apply the classroom theories in practical situations

To experience the integration between all the functional aspects of business

Objective of Costing Project:

To build a model which will help in making decision for project estimation, Costing and

contribution Analysis for a fixed bid project

Objective of Buddy Chef’s Project:

To Increase the avenues for boosting the sales

Reduce wastage

Reduce capital investment as % of reach

Increase reach – more availability

Increase customer Point of contacts

To do ROI Analysis fro the available options

Objective of IFRS Project:

To study and Understand basics of IFRS (International Financial Reporting Standard)

5

Chapter 2Chapter 2

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

About Company

About Organizational process

About projects undertaken

6

Executive Summary:

I have completed my summer internship from an IT company named Network Integrators

(India) Private Limited [NIPL] Situated in Pune. NIPL was founded in 1996 by three

entrepreneurs (Mr. Anand Godse (Director), Mr. Vaibhav Mahajan (MD & CEO) and Mr. Xitij

Joshi (Co-founder)) with a view of providing excellent business solutions for customers.

NIPL offers services in three areas –

• Managed IT

• Enterprise Applications

• Business Consulting

NIPL has two offices: One for SAP related work and other is for networking and hardware

related works. I worked under the guidance of Mr. Anand Godse, in the SAP office of NIPL

situated in Navi peth,Pune.

NIPL had a centralized management system. All the management decision related to SAP were

taken by Mr. Anand Godse and he had the sole discretion in the organization as all the employees

directly reported to him. There was no middle level management in this organization. Work

structure in the organization was directed by him and only him and the assigned employees knew

about the work assigned. So when he was on tour no one else could follow up with the progress of

the work but this gave immense possibilities of innovation as everyone could directly propose him

about anything that could be done for the progress.

There was no standard process followed in the organization but the organization’s edge over

competitors was its low cost execution of projects and delivery on time. Due to the lack of efficient

administrative process all the people were found running at the time of delivery. But as every dark

cloud has a silver lining, this also had its advantages. This helped us to get an insight of the

internal work and the way the work goes during the delivery time.

I worked on three projects in the tenure of my internship. They are:

To do brochure literature Study and Understand IFRS

To build a model for Project estimation, Costing and Contribution Analysis for a fixed bid

project of an IT company (Network Integrators (India) Pvt. Ltd)

Identification and Return on Investment (ROI) study for alternative avenues to boost and

diversify sales of food retail company Buddy Chef ( a sister concern of NIPL)

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The main project for which I was recruited was from NIPL Company. The project was to build a

model for project estimation, Costing and Contribution Analysis for a fixed bid project of NIPL. The

reason why I was told to make this model was that there was no proper system maintained in that

company for decision making. Whenever they want to make a deal with the client, they have to

take a rough estimation and negotiate accordingly with the client. The negative implications

attached with this was that they were not able to come to know

the contribution or the amount of profit they can be able to earn from a particular deal

the times where they are going to face the cash flow problem

the extent up to which they can negotiate with the clients

About the number of employees needed from different categories like Sr. Consultant,

Consultant, Jr. Consultant or Manager.

I also got great opportunity to learn about the latest accounting standard IFRS (international

financial Reporting Standard) as paid seminar was organized by our firm on this and we were in

close touch of all the technicalities of the standard. I now know the importance of the standard and

the scope of it and I am working hard to gain more knowledge about it. Another Project of mine

was to find out the alternatives to increase the sales and to do an ROI analysis to find out the best

avenue to invest in. In both the projects I found it difficult to gather the relevant information

because of confidentiality of information. But finally, I found another way to manage with this

problem.

Chapter 3Chapter 3

ORGANIZATIONAL BACKGROUNDORGANIZATIONAL BACKGROUND

8

Company overview

Major Clients

Competition

Future Plans

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Organizational Background:

Company Overview

• Network Integrators (India) Private Limited [NIPL] was founded in 1996 by three

entrepreneurs (Mr. Anand Godse (Director), Mr. Vaibhav Mahajan (MD & CEO) and Mr.

Xitij Joshi (Co-founder)) with a view of providing excellent business solutions for customers

• NIPL provides value added services

– ERP Implementation

– ERP Audits

– CxO Consulting

– IT Staffing Services

Vision & Mission

• Mission

To be a partner of first choice to provide end to end service in the IT space and

provide niche consulting in the areas of IT service delivery

• Vision

To help formulate the “Right Solutions” for the business and translate the IT vision

to enable the business.

The People

• NIPL was founded by three entrepreneurs with a view of providing excellent business

solutions for customers.

• NIPL’s main assets

– More than 80+ IT professionals with expertise in the fields of

• Network Infrastructure

• IT Service Desk

• SAP Technologies

• Business Analysts

• Financial Consulting Services

The Management

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- Mr. Anand Godse (Director)

BE, ME, PGDM (Ops.), MA (Economics), CISA

Mr. Godse is a supply chain consulting specialist with more than 12 years of SAP

experience in the field of logistics.

- Mr. Xitij Joshi (Co-founder)

B.E. (Electronics & Telecom), Systems Auditor (CISA),

ITIL Professional, Executive Management (IIM-A)

Mr. Joshi specializes in Security, Risk & Assurance domains

- Mr. Vaibhav Mahajan (MD & CEO)

B.E. (Electronics), ITIL Professional

Mr. Mahajan is responsible for the global operations of Infrastructure Management

businesses. He looks after Service Delivery, Technology and Practices.

The Technology

• NIPL’s main assets

– Being in the field of IT service delivery NIPL boasts to have expertise in all IT

related technologies with expertise in

• IBM Blade server technology

• CISCO

• Firewall

• SCADA

• Microsoft Exchange

• IBM – IBM DB2

The Processes

• NIPL’s rapid growth in the last few years has been mainly due to the focus on delivery

related processes.

• With its decade of experience in the managed IT space and with a thorough understanding

of the Indian customer base, NIPL has found that a mix of formal processes with an

individual attention provides a true customer experience.

• Based on this NIPL has adopted the CMM processes which are tailored to individual

customer based on his unique needs and culture of the organization.

Products and Services

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NIPL offers services in three areas –

• Managed IT

– Network Management

– Data Centre Management

– Desktop Management

– Helpdesk & Migration Services

– Network Architecture

– Security Management

• Enterprise Applications

– ERP-SAP Implementation

– SAP Support & Audits

– Upgrades & Migration

– Global Templates Development

– ABAP Development

– Corporate Training

• Business Consulting

– IT Strategy

– Balanced Score Card

– System & IT Audits

– Concept-to-Build Consultancy

– CXO Advisory

– Process Modeling & Re-engineering

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Competition

NIPL faced a cut throat competition from many companies working in SAP namely Wipro

technologies, Infosys etc. and many of the local software companies. The cutting edge of NIPL was

its low cost and Quality product delivery. During my tenure in the organization we succeeded in

delivering a reengineered product to the client which was earlier made by Wipro technologies. The

requirements of the Client were not satisfied with the delivered product and were not contented by

Wipro technologies.

Future Plans

• NIPL has successfully provided its services in western Maharashtra.

• Now they have their sights fixed on further growth beyond their borders.

• They plan to provide their services to clients in far off shores of South Africa and Europe.

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Major Clients:

1

Chapter 4Chapter 4

INTRODUCTIONINTRODUCTION

My Experience @ NIPLy Experience @ NIPL

Initial phase of Journey

Attended first corporate party

Journey Ahead

Projects Undertaken

Description and key learning from Costing Project

Overview of Buddy Chef

Description and key learning from Buddy Chef’s Project

Description about IFRS project

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My Experience @ NIPL:

Initial phase of Journey:

My overall experience with the organization was a pleasing one. On the first day when I went to the

office, the Director introduced me with each one present in the office and then a brief description

was given over the costing project for which I was recruited. He also explained the problems which

they were facing due to the absence of that costing model. After a discussion of half an hour we

were told to make Integrated Costing Model with the use of excel sheets by our own from whatever

we understood in that short discussion. After that the Director left the office. He was going to meet

us next week as he was going to Germany for some business work. In those seven days, we met

with some more people in the organization But only the admin and Business development were the

two persons whom we used to meet daily as all the other employees were onsite for the project.

We finally made the Preliminary prototype of the model from what we had understood and mailed it

to the Director. After looking at the model, he changed/rephrased his requirements and gave us

better insight on what he wants actually from the model. After this we had to go back to zero level

and start our work from the scratch as the requirement did not match with the model. This rejection

was a bit disappointing for us as we had put lot of efforts in making that. But the way Sir had

conveyed this to us made us enthusiastic about the work. He told us that whatever you made was

right but there’s always a better way.

After working again on the given task we went to show it to Sir (the Director) but this time he didn’t

even saw it, Instead he started asking us some basic questions related to costing concepts. We

answered some of the questions, But he was not satisfied with the answers and gave us

instructions to go back to library and study the basics of Costing. This time we felt very shameful as

we were not able to answer the questions properly. Next day instead of going to the office we went

to the Library and read the books there, issued some books and then went back to our work. This

time we were a bit more scared and curious to show our work to him. We finally showed our work

to him and he approved that. We were elated.

Attended First Corporate party:

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In the initial phase of our project there was a project party organized for all the employees of NIPL

and each one was invited along with his/her family. We were also invited to attend that party so as

to meet and get introduced to all the NIPL members. As that was a late night party and everyone

there was a stranger to me, I was hesitating in attending that party But I didn’t wanted to loose the

opportunity of interacting with the members of the organization. Full fledge facilities were given to

us; We went there in the Director’s car along with his family. We were introduced by each and

everyone present there. We interacted with all the employees. I found very frank environment

there. As I was getting late for my hostel Sir sent a car especially for dropping me . This whole

experience made me feel as if I was a special employee of NIPL.

After some days we started developing better relations with the employees. We used to take Lunch

together and do chit-chats. We used to do Pizza party, Samosa party etc. and celebrated the

birthdays and results of college together with the office employees. We used to be with each other

like colleagues.

Journey Ahead:

As the first phase of our work was checked and we came to know that we were on the right track.

This built our confidence stronger and we moved ahead after discussing further project with our

mentor (the Director). As most of the time he was on work tour, He didn’t used to meet us daily

and ask for the progress of our work. Instead, we used to mail our work to him and if we stuck into

some problem then we used to call him and clear our problems on phone. In between this project,

one more project was handed over to us. That project was of Buddy Chef, a food retail chain outlet

in Pune. Buddy Chef was a sister Company of NIPL. Xitij Joshi, a Co-founder of NIPL was the

Director of Buddy Chef. We were told by our mentor to have a talk with Mr. Xitij related to Buddy

Chef’s project. Mr. Xitij gave us brief introduction about that Company and asked us the ways to

minimize the wastage, due to which their company was incurring losses. We were not given any

direction to start. We thought about that problem, tried out to find some solutions but we were not

able to come to a particular solution as the data was not available to us. After that when we

discussed this project we were given some directions to think by Anand sir and finally we came up

with solutions, which I will explain under the projects undertaken heading.

Along with these two projects one more project was given to me. That project was to study and

understand basics of IFRS (International Financial Reporting Standards)

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The reason behind giving this project to me was to provide me some insights of IFRS which will be

helpful for me in future as I am from Finance Background. Also another reason for this was that

NIPL along with Wizprotek consulting was going to arrange a paid seminar on IFRS.

Finally, I completed all the three projects successfully with the help of my mentor and my

colleague.

Projects Undertaken:

Mainly, I worked on three projects in the tenure of my internship. They are:

To build a model for Project estimation, Costing and Contribution Analysis for a fixed bid

project of an IT company (Network Integrators (India) Pvt. Ltd)

Identification and Return on Investment (ROI) study for alternative avenues to boost and

diversify sales of food retail company Buddy Chef ( a sister concern of NIPL)

To do brochure literature Study and Understand IFRS

Description about Costing Project:

Objective:

To build a model which will help in making decision for project estimation, Costing and

contribution Analysis for a fixed bid project

The main project for which I was recruited was from NIPL Company. The project was to build a

model for project estimation, Costing and Contribution Analysis for a fixed bid project of NIPL. The

reason why I was told to make this model was that there was no proper system maintained in that

company for decision making. Whenever they wanted to make a deal with the client, they had to

take a rough estimation and negotiate accordingly with the client. The negative implications

attached with this was that they were not able to come to know about:

the contribution or the amount of profit they will be able to earn from a particular deal

the number of times when they would face the cash flow problem

the extent up to which they can negotiate with the clients

About the number of employees needed from different categories like Sr. Consultant,

Consultant, Jr. Consultant or Manager.

I along with one more student worked on this project. As I explained earlier, we first approached

the project in our own way by limited understanding of whatever we gathered from the first meeting

with the Director. We made the Preliminary prototype of the model

and mailed it to our mentor. The preliminary model which we have made was like below:

17

But after seeing that model, he rephrased his requirements and asked us to build different model

based on the new requirements. As in the above model we made everything based on individual

person, in the new model we have to make changes according to the category to which individual

employee belongs. We gathered various information about costing concepts like direct indirect

costs, overhead allocation and apportionments, contribution etc. to apply the things properly.

We also understand the process used for project estimation and calculations done before

negotiating with the client and finally indulging in the project.

We finally made the integrated costing model (MIS) with the help of excel by the knowledge and

information we gathered and with the guidance by our mentor. When we showed our final work to

our mentor he was happy with our work but as our model was not user friendly, he asked us to do

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some work to make that user friendly so that anyone who uses it can understand what all entries

he should make to see the result. The final model looks like below:

19

20

21

22

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There was no standard process followed in NIPL and the processes were in developing stage. The

costing project we made was a breakthrough and highly appreciated by the director. We were

highly pleased that we got an opportunity to be a part of the process growth in NIPL. We also got

lot of opportunities to suggest innovational changes to streamline the work methodology in NIPL.

Key Learning from this project:

Understanding the requirements of client

Practical application of theories

Making a model by keeping user friendliness in mind

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Overview about Buddy Chef:

Buddy Chef Restaurant is a chain of quick service food retail outlet. The outlets of Buddy Chef are

located at Kotrud, Aundh, Viman nagar, Hingewadi, Magarpatta, and SP College in Pune .Buddy

Chef was conceived by ORGREEN which is known as Organic farming. The main motto of Buddy

Chef is to provide Healthy ready to eat meal. Buddy Chef is the first one to come up with the

concept of providing ready to eat meals. It has Centralized kitchen and through this kitchen the

food is delivered to the retail outlets where the food is kept fresh. The kitchen has a capacity of

providing 5000 meals per day. They provide meals and snacks in their menu. The meals include:

Veg. Combo and non-veg. combos of Indian, Chinese and Biryani. In snacks Kathi rolls ,Momos.

Sandwitches and coffee are offered by them. There is a facility of providing home delivery for lunch

and dinner under the area of 3 Km radius. Generally, the concept of Buddy Chef is based on take

away meals. People do not used to have Lunch or Dinner at the outlets. They usually place order

for delivery. The structure of Buddy Chef itself communicate the people that it is a take away type

of restaurant as its outlets contain only two tables for the customers to have Lunch/Dinner. Their

Corporate Clients include WNS and Atos origin.

Description about Buddy Chef’s Project:

Objective:

To Increase the avenues for boosting the sales

Reduce wastage

Reduce capital investment as % of reach

Increase reach – more availability

Increase customer Point of contacts

To do ROI Analysis fro the available options

In this project we were asked to reduce the wastage of the restaurant as they were not able to

make enough profit out of the business due to heavy wastage. For solving this wastage problem,

we met with the managers of the outlet and discussed about the process. They gave information

about the outlets but the real process inside the kitchen was unknown to us. The actual cost they

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incur and other information which we require to solve the problem of wastage was not shared with

us as that information was confidential. One problem which we found in the process was that the

operations manager used to call to the outlet manager daily and according to the demand

predicted by them the production is done and the meals were sent to the outlets. There was no

system or person who used to keep track on production.

As we were finding difficulty in gathering information due to confidentiality, we changed our

approach to look at the problem. We started thinking on the problem having the approach of

increasing Sales instead of only looking it on the basis of wastage. As the wastage depends on

sales we started focusing on increasing the sales instead of reducing wastage. To increase the

sales we gave two options:

Table Top Counter, where we can have one boy who can take orders from the customers

and through calling he can coordinate to the nearby outlet of Buddy Chef for delivery.

Sale our food at other retail outlets like Vaidya, Spencers, Reliance Fresh etc.

We gathered all the information of expenses which are going to occur in investing in these two

options. As a suggestion from our side we gave a presentation to the top management about our

findings. The insights of our presentations are:

• Every thing which remains with us is not a waste because we should keep some buffer

with us to be responsive to the customer

• Effective buffer management is required because a Customer lost is the customer lost

forever

We gave the above suggestion to them as there are many customers who complained that

whenever they reach at the Buddy Chef for some particular meal they are not able to serve them

as they are out of stock as a result the company may loose the premium customers.

Options to explore:

• Increase sales channels

– New channels

– Improve touch point with customers

• Decrease wastage

– Optimize existing channels

Increase visibility in the market:

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• Increase the point of sales by-

Low cost options

– Look for retail outlets

– Table counter for order booking

Capital intensive

– Opening new outlets

– Look for franchisee

Our take on this is:

• Opening a new outlet will again require a huge capital investment

• If we go for franchisee it will decrease our profit

• So, the most economical and viable solution is to look for retail outlets and to open a table

counter for booking orders

Reasons for more wastage

• Excess Purchase

• Excess Production

• Excess of inventory keeping by the manager of outlets

To overcome these reasons of wastage the solution suggested by us are:

• Don’t call daily to the outlet manager for production

• Maintain some inventory in central kitchen only and send it to outlets whenever required

• Outlet manager should confirm special orders to Kitchen manager

Suggested Performance indicators

• Turnover to wastage = total sales in inr for each item / total cost of individual item - more

the better

• Order to wastage ratio / forecast ratio

– Number of units orders / wastage in units – more the better

• SCM ratio – total produces / total wasted ( kitchen + all stores)

• Operating Expense to gross sales ratio = (Food + labor cost)/ sales

Inference from Ratios

• Turnover to wastage ratio indicates our revenue through sales.

- If this ratio is high that means our revenue is high

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• Order to wastage ratio helps you to predict and control the production.

- If this is high that means our wastage is controlled and our production prediction is in line

• SCM ratio keep tab on wastage and hence helps in forecasting the production

• Operating expense to sales ratio

- If this ratio is high that means our expenses are more than our sales i.e. our business is at loss

Suggested Operational KPIs

• Compare this across stores

– Phonein ratio : deliveries sales / total sales

• If this ratio is low, then the main buying behavior is by feeling the product

and the brand value is low. This also mean the reach is poor and top of

mind recall is low

• Action point :

» Increase availability

» increase visibility

– Av time per delivery

– Idle capacity of scooters – maintain a log book

– Histogram of deliveries per hour – happy hours before the normal times to

increase sales and cross stocking.

– Better stockout data logging

Costing for Table Top and Retail outlets:

Cost For Table Top

Particulars Cost

Rent 5500Table cost 1000Telephone purchase 1000

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Salary of counter boy 6000Electricity expense 300Telephone expense 600Salary of 1 delivery boy 3500Bike running/day 50-55 km 150km

Travelling Rs.1/km 4500

Total cost 22400

For Retail outlets

Cost 25%of selling price of food

Advantage of Table Top Counter:

• Total investment on Table Top = Rs.22400

• If we are able to sale only 12 Indian veg. meals per day then too we can achieve a

revenue of Rs.23760

• Opening a new point of contact through Table top means not just additional revenue but

also greater visibility.

Advantages of contacting through retail outlet-

• Visibility is high

• Operational expenses are minimal

• Diverse customer base can be accessed

Key learning:

Gathering relevant information

Seeing the problem from various angles

Making rational decisions

Description about IFRS Project:

Objective:

To study and Understand basics of IFRS(International Financial Reporting Standard)

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Basically this project was given to me for increasing my knowledge. As I am from the finance field

and this is the new trend in Finance as all the companies have to report from 2011 in the IFRS

format instead of IGAAP. Also the main reason behind giving this project to me was that the

company (NIPL) along with Wizprotek consulting was going to arrange a paid seminar on IFRS and

its impact on SAP.

My basic understanding of IFRS from the study which I have done is as follows:

What is IFRS?

International Financial Reporting Standards, or IFRS, is the collection of financial reporting

standards developed by the International Accounting Standards Board (IASB), an independent,

international standard setting organization. The aim of IFRS is to provide "a single set of high

quality, global accounting standards that require transparent and comparable information in

general purpose financial statements.”

From 1973 to 2001, IAS were issued by the International Accounting Standards Committee (IASC).

In April 2001 the International Accounting Standards Board (IASB) adopted all IAS and began

developing new standards called IFRS. It is noteworthy that an IAS remains in effect unless

replaced by an IFRS.

India moves towards IFRS

In line with the global trend, the ICAI has proposed a plan for convergence with IFRS for certain

defined entities with effect from accounting periods commencing on or after April 1, 2011.

Phase I (wef 1st April 2011):

All index companies

Companies with net worth > Rs. 1000 crores

Phase II (wef 1st April 2013):

Companies with net worth between Rs.500 to 1000 crores

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Benefits Of IFRS On Indian Corporate

Improvement in comparability of financial information

Better quality of financial reporting and improvement in reliability of financial statements.

Better access to and reduction in the cost of capital raised from global capital market since

IFRS are now accepted as a financial reporting framework for companies seeking to raise

funds from most capital markets across the globe.

IFRS Implementation Challenges in India

Awareness about international practices

Training

Amendments to the existing law

Taxation

Fair value

Management compensation plan

Reporting systems

Disadvantages

Issuers without significant customers or operations outside the Country may resist IFRS

because they may not have a market incentive to prepare IFRS financial statements.

Many people also believe that local GAAP is the gold standard, and that something will be

lost with full acceptance of IFRS.

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1st April, 2010 1st April, 2011 31st March, 2012Date of transition Previous GAAP reporting 1st IFRS reporting w/IFRS To IFRS for 2010-2011 comparatives 2010-11

Chapter 5Chapter 5ORGANIZATIONAL PROCESSESORGANIZATIONAL PROCESSES

Observations Character of Motivational forces

Communication Process and Interaction-influence Process

Decision making

Goal setting process

Control process

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Performance Characteristics

Projects Undertaken

Description and key learning from Costing Project

Overview of Buddy Chef

Observations:

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Opening IFRS Balance Sheet

Employees

Fig: Organizational Hierarchy

Top Management(Director)

Character of Motivational forces:

Employees can get motivated by any of the followings:

Increased salary/pay hikes

Bonus provided

Increased responsibilities

Allocating more important work

Conducive working environment/condition

Support of senior management

Obviously, the pay hikes and bonus are the important tools used to motivate the people. But

here, in this organization, the increased responsibilities, allocation of more important work,

conducive working environment and support from senior management were the main forces to

motivate the employees. As the organization’s strength is small, the employees were given

more responsibilities and sometimes critical works were also allocated to them, which in turn

help them to think that they are the main assets of the organization. Also through increased

responsibility they will get the chance to upgrade their knowledge and skills which will help

them to get a good salary.

The working environment and the support from senior management also plays an important role in

the organization. I was able to observe that every time any work comes in ,it looks almost

impossible compared to the deadlines but the senior management loses no second in worrying

about that and jumps in with further reduce timelines and risk mitigation steps .

A plan is produced, people are assigned and the environment in the office becomes so conducive

that even the impossible seems possible. Some treats here and there, some chit chats from the

employees keep the environment warmer and the working becomes easy but yet there was one of

the founders who would come sometimes and would try to show that he’s the boss by bullying

around. But as he came fewer times, office had its own way of dealing it .They always tried to

minimize the possibilities where he could burst out.

All this just made my opinion concrete on the philosophy of my life

“The world is not interested in the storms you encounter But whether you board in the ship

or not”

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The risk mitigation steps and the resource allocation strategies of the Director were rather

impressive and gave us a clear idea what actual management means and how does our

management knowledge turn out in the real world scenario.

He was a great motivation for us and led to the success of work It gave me a great satisfaction.

Motivational forces conflict which I found in the organization was related with the salary and pay

hikes. There was one employee who was a Chartered accountant and another employee was just

a Graduate. Earlier there was a salary difference between both of them. But as the pay hike was

given to the one who was only a Graduate, the salary of both of them became equal. Through this,

one who received pay hike gets motivated but the Chartered Accountant gets de-motivated as she

thought that she is a C.A. and the salary is not apt for her profession. This all happened because

she started comparing her salary and work with another employee.

Communication Process and Interaction-influence Process:

As the organization had a centralized management system and there was no Middle level

management, all the employees directly reported to the Director. This System has its own

advantages as well as disadvantages.

Advantage of having this type of system is:

It gave immense possibilities of innovation as everyone could directly propose him about

anything that could be done for the progress of organization or any project.

Disadvantage of having this type of system is:

As there was no middle management, so in the absence of top management no one else

was there to follow up the project.

Employees used to work together at times as their works were interdependent. Also, as

the work from home option was available the employees used to call the Director and gave

information for leave/work from home. Due to this, the other employees were not having

information of whether a person is on leave or is working from home as a result sometimes

their work progress might get hampered as there was dependency in their work.

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Interaction between the employees was affable. Daily we used to take our Lunch together and

do some chit chats in the office. We used to do Pizza party & celebrated Birthday parties

together. Employees used to do their work together as at times they needed help from other

functional department’s personnel.

There was two way information flow in this organization.

I was able to observe the downward communication when the top management produced a

plan and assigned work to the employees. But the top management used to consult with the

other employees also when they planned something and the ideas of employees were

accepted. Thus I can say that there was a two way information flow in the organization.

Some of employees have already worked with the director as a colleague in BPTL Company.

Therefore, they were candid with each other and used to call the director with his first name

only. Director also seems to be very frank with everyone and used to ask suggestions from

them in most of the activities. To chill out from the tedious work environment Project event

party was given by the Director and the family members of the employees were also invited for

that.

Decision Making Process;

As the structure of organization is centralized all the major decisions were taken by the top

management only but the employees were also involved in decision making process. They were

invited in the meeting for discussion and the ideas and suggestions from the employees were

welcomed by the top management. Firstly, all the co-founders come together and discuss about

the matter to finally take a decision and after deciding among themselves they share their decision

and plan with the employees and ask for their views.

In making routine decision about assigning works, which employees should go onsite, who should

go out of station for providing support to the client etc. the top management used to consider

problems with the employees at lower level. For example- when one person was required to go to

Delhi for providing support to the client, the Director consider the problem of a women employee

who is not able to go onsite as she was having a small kid at home and hence the other person

was sent to that place.

Goal-Setting Process:

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Goals are usually set at higher level. The employees strive hard to meet the set goals and they

usually achieve them as the goals set by the top management were realistic ones.

Control Process:

The tool used for controlling process is timesheet. Each employee has to fill in the time sheet daily

and that time sheet was sent to the Director. Timesheet shows the time spent and the information

of the work done on the particular project. Through this tool the director can come to know the

progress of the work.

But the employees do not used to fill the time sheets properly, as they do not feel any need or

importance of filling that and the format of time sheet was also having some deficiencies. So, while

doing my project when I noticed these problems I consulted with the Director and then he

explained the importance of filling time sheets and the employees seemed convinced. Also, I

proposed a new format of time sheet which they are going to use now and the employees were

given the instruction to fill the timesheets appropriately and timely. This will help the organization to

control the process.

Performance Characteristics:

Productivity:

As a result of good salaries, incentives, support from management and conducive working

environment the employees perform to their best of abilities and hence the productivity is high.

Absenteeism

In this organization, unlike other organization there was no salary cut for leave and there was no

incentive paid for overtime. Also, the option of work from home was also available. As it is an IT

organization, most of the times employees remain onsite i.e. in the office of the client, so I do not

know exactly about the absenteeism. But I felt that due to conducive and friendly environment

there was a low rate of absenteeism in the organization

Waste

As such there was no wastage found. But as maximum time employees do not used to come to the

office instead they went onsite i.e. to the client’s office, therefore there was a waste of computers

which are taken on rent and office premises. But when the employees doesn’t visit to the client’s

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office then the available computers and the office space are required, hence as such no particular

waste is found in the organization

Quality

The quality of work was given utmost importance, as it was not a manufacturing company the

quality of service was important for the growth of the organization. It also made a difference as the

employees had to take care about the quality of their work, which helped in a better quality of work.

Employee Turnover

Employee turnover in this organization is neither very low nor very high. Some employees left the

organization, as they get selected in MNCs at a higher salary package. While some employees

doesn’t left the organization as they were satisfied with the working environment, salary and the

experience which they are getting from here.

Innovations

Work structure in the organization was centralized and the assigned employees knew about the

work assigned to them. So in the absence of top management no one else could follow up with the

progress of the work but this gave immense possibilities of innovation as everyone could directly

propose top management about anything that could be done for the progress.

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Chapter 6Chapter 6METHODOLOGY USEDMETHODOLOGY USED

Methodology for costing model Costing concepts used

Methodology for Buddy Chef’s Project

Methodology for IFRS project

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Methodology Used:

As I have handled three projects, Different-Different methods were adopted by me to complete the

projects. The methodology which I used to approach the Costing Model is as follows:

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Requirement Gathering from the client

Made a part of model and showed it to client

Understand the problems due to lack of that model

Requirements are rephrased and started the work from scratch

Referred to books from library and searched the topics on internet

Remade the model with the help of knowledge which I gathered

The model was ready in the integrated form of excel sheets and the requirements of the client were met

First of all, I understand the problems which they were facing due to lack of system.

I then gathered the requirements from them.

Then, I went on to make a part of model and showed it to the client.

After that the requirements are rephrased from the client side and then I started from

scratch.

I referred to the books of costing from the library and searched the topics on the internet.

Then, I made the model again with the help of my knowledge on that topic and the

requirements from the client

Finally, the integrated model was ready and the requirements of the clients were fulfilled.

Costing concepts used for building the model are as follows:

Cost Classifications for Assigning Costs to Cost Objects (Direct and Indirect Cost):

Cost Object

Costs are assigned to objects for a variety of purposes including pricing, profitability studies, and control of spending. A cost object is any thing for which cost data are desired including products, product lines, customers, jobs, and organizational subunits. For the purpose of assigning costs to cost objects, costs are classified as direct cost and indirect cost.

Here the cost object which we used are category wise employees in the organization.

Direct Cost:

A direct cost is a cost that can be easily and conveniently traced to the particular cost object

under consideration.

Indirect Cost:

An indirect cost is a cost that cannot be easily and conveniently traced to the particular cost object under consideration.

Overhead Cost:

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Overhead generally refers to indirect, in contrast to direct, costs. Indirect means that a cost cannot be matched or coupled in any obvious or objective manner with particular products, specific revenue sources, or a particular organizational unit.

Cost Allocation:

The assignment, using some reasonable basis, of any indirect cost to one or more cost objects

The methodology adapted for Buddy Chef’s project is as follows:

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Requirement Gathering from the client

Tried to gathered relevant data which is required for solving the problem

Understand the problems of wastage which they were facing

Changed the approach due to lack of data shared

Gathered the data for the new approach from the outlet of Buddy Chef

Enquired about the rates of retail shops and rents of Thelawalas and done ROI analysis

Suggested new way of looking at the problem along with some solutions

Given the presentation to the Director and other top management

Firstly, I understand the problems of Wastage which they were facing

Then I gathered the requirements from the client.

Then I tried to gather relevant data which is required for solving the problem

But due to lack of data sharing I changed my approach to solve the problem. Instead of

decreasing wastage, I tried to see the options to increase the sales.

I then gathered the data required for new approach from the retail shop of Buddy Chef

Then, I went to the retail shops like Vaidya , Spencers, Reliance Fresh to know the rates

for keeping the food of Buddy Chef in their shop. Also, I enquired to the Thewalas on the

F.C Road and J.M road for the rents which they have to pay. So as to get an idea of the

expense on Table Top Counter and have done Return on Investment analysis of both.

Then I suggested the Director and top management to look at the problem from different

perspective of increasing the sales instead by decreasing the wastage.

At the last, the power point presentation was given to the top management for the

suggestions recommended.

The methodology adapted for IFRS project is as follows:

First of all, I was told by the mentor to study some matters on IFRS

I searched about IFRS on the internet and gathered some knowledge from there.

I was told to have some knowledge about IFRS as our company (NIPL) was going to

arrange a paid seminar on IFRS

I gathered pdf files and presentations on the topics related to IFRS and gave them to sir as

he told me to make some power point slides.

I listen to the discussions and rehearsals going on for presentation (Seminar).

Finally, I attended the seminar to get more insight on the subject called IFRS.

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Mentor told me to study some matters on IFRS

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Searched on internet and gathered some knowledge of IFRS

I was told to read more on IFRS as NIPL was going to arrange a paid seminar on IFRS

Gathered pdf files and ppts from net on IFRS and made some slides as told by mentor

Listen to the discussions and rehearsals going on for presentation (Seminar)

Attended the seminar to get more insight on IFRS

Chapter 7Chapter 7

CONCLUSIONCONCLUSION

Key ResponsibilitiesKey Responsibilities

Key Learning

Conclusion:

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I had a nice experience during my summer internship in NIPL. During the tenure of 60 days I

learnt to work in the corporate world in tune with the professional work methodologies.

Key Responsibilities:

My Key responsibilities for Internship projects were:

To understand the process used before negotiating with the client

To understand the necessity of building a model for costing in the organization

To apply the basics of costing and make an MIS for the fixed bid projects, which will help

in taking effective decisions for the organization

To understand the basics of IFRS

To understand the food retail chain’s operations

To take rational decisions and give consultancy advice to the organization to increase the

sales avenues

Key learning:

I always used to learn from each and everyone I met. I learnt the lessons not only from the people

in the organization but also from the work or the projects I had undertaken.

Learning lessons from Mr. Anand godse, the director of NIPL:-

Multitasking

Time management

Art of presentation by keeping the audience in mind

Learning lessons from other employees:-

Separating the personal relations from the professional ones

Working in an integrated way

Learning lessons from the projects undertaken:-

Understanding the requirements of client

Gathering relevant information

Practical application of theories

Making a model by keeping user friendliness in mind

Seeing the problem from various angles

Making rational decisions

Other Learning lessons from summer internship:-

All the functional aspects of business are integrated

Theoretical base is important for doing things practically

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Looking the same problem from different-different perspectives

Time Utilization

Multitasking

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