The document is a project report submitted to Jawaharlal Nehru Technological University, Kakinada by T. Srinivasa Rao in partial fulfillment of the requirements for the degree of Master of Business Administration. The report studies the effectiveness of security deposit deductions of railway tenders at Efftronics Systems Private Limited in Vijayawada. It includes an industry profile of the IT, electrical, and manufacturing sectors in India. It also provides a brief history of Efftronics and describes the research methodology used in the study. The study collects data on security deposits from reports and analyzes the interpretations to identify areas for improvement and provide recommendations.

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