auditPROJECT (Repaired).docx

PROJECT ONAUDIT OF LEDGER OF SYNTHIKO FOILS LTD & ITS ANALYSIS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF DEGREE OF MASTERS OF COMMERCE (M.COM) FROM THE UNIVERSITY OF MUMBAI

SUMBITTED BYSHREERAJ HARIHARANM.COM PART-II (SEM-III)ROLL NO 362014-2015

UNDER THE GUIDANCE OFPROF. MEETA KARANGIA

LORD UNIVERSAL COLLEGE,TOPIWALA MARG, OFF STATION ROAD, GOREGAON (WEST), MUMBAI, 400062

DECLARATION

I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL COLLEGE, M.com Part-I I(SEM III) hereby declare that I have completed project on AUDIT OF LEDGER OF SYNTHIKO FOILS LTD & ITS ANALYSIS, in the academic year 2014-2015.This information is true &original to best of my knowledge

Date: signature of student

Acknowledgement

With deep satisfaction and immense pleasure I am presenting this project report on AUDIT OF LEDGER OF SYNTHIKO FOILS LTD & ITS ANALYSIS partial requirements for the M.COM course.I would like to extend my sincere gratitude and appreciation to my project guide Prof. MEETA KARANGIA who assisted me into this project. It has indeed been a great experience working under her guidance during the course of the project. I would like to thank her for his valuable advice and support throughout this project.And last but not the least I would like to thank all the Faculty Members, staff of the institute for their help in making my project an unforgettable and great learning experience.

Date: signature of student

CONTENTS

INTRODUCTION --------------------------------------------------------------------- 05 IMPORTANCE, ADVANTAGES, DISADVANTAGES AND LIMITATIONS OF AUDIT ------------------------------------------------------------10

INTRODUCTION OF SYNTHIKO FOILS LTD ----------------------------------21

AUDITOR'S REPORT------------------------------------------------------------------ 22

LEDGER OF THE COMPANY & ITS ANALYSIS-------------------------------27

BIBLIOGRAPY-------------------------------------------------------------------------3139 | Page

INTRODUCTION

Economic decisions in every society must be based upon the information available at the time the decision is made. For example, the decision of a bank to make a loan to a business is based upon previous financial relationships with that business, the financial condition of the company as reflected by its financial statements and other factors.If decisions are to be consistent with the intention of the decision makers, the information used in the decision process must be reliable. Unreliable information can cause inefficient use of resources to the detriment of the society and to the decision makers themselves. In the lending decision example, assume that the barfly makes the loan on the basis of misleading financial statements and the borrower Company is ultimately unable to repay. As a result the bank has lost both the principal and the interest. In addition, another company that could have used the funds effectively was deprived of the money.As society become more complex, there is an increased likelihood that unreliable information will be provided to decision makers. There are several reasons for this: remoteness of information, voluminous data and the existence of complex exchange transactionsAs a means of overcoming the problem of unreliable information, the decision-maker must develop a method of assuring him that the information is sufficiently reliable for these decisions. In doing this he must weigh the cost of obtaining more reliable information against the expected benefits.A common way to obtain such reliable information is to have some type of verification (audit) performed by independent persons. The audited information is then used in the decision making process on the assumption that it is reasonably complete, accurate and unbiased.

MEANING OF AUDITINGThe word audit is derived from the Latin word audire which means to hear. It is an important tool of management. It is concerned with making an analytical and critical analysis of the books of accounts, checking and verification of evidence in support of entries appearing in the books of accounts, and ascertaining the authenticity of the financial statements. It is also concerned with the examination of accounting data to determine the extent of an audit examination is too made on the basis of evidential document such as invoice, money receipts and other records by the authorized representative of the client. Auditor has used to send for the accountants and hear whatever they had to say in connection with the accounts. The auditor has to look into the facts behind figures and he must certify their accuracy. Auditing is to ascertain the balance sheet and profit and loss account that they show a true and fair view of the financial state of affairs of a concern. The Institute of Charted Accountants of India has issued a number of statements of standard auditing practices and accounting standards for guidance of Auditor of India ORIGIN AND EVOLUTIONThe term audit is derived from the Latin term 'audire,' which means to hear. In early days an auditor used to listen to the accounts read over by an accountant in order to check themAuditing is as old as accounting. It was in use in all ancient countries such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts and auditing. Arthasashthra by Kautilya detailed rules for accounting and auditing of public finances.The original objective of auditing was to detect and prevent errors and fraudsAuditing evolved and grew rapidly after the industrial revolution in the 18th century With the growth of the joint stock companies the ownership and management became separate. The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees.The objective of audit shifted and audit was expected to ascertain whether the accounts were true and fair rather than detection of errors and frauds.In India the companies Act 1913 made audit of company accounts compulsoryWith the increase in the size of the companies and the volume of transactions the main objective of audit shifted to ascertaining whether the accounts were true and fair rather than true and correct. Hence the emphasis was not on arithmetical accuracy but on a fair representation of the financial effortsThe companies Act. 1913 also prescribed for the first time the qualification of auditorsThe International Accounting Standards Committee and the Accounting Standard board of the Institute of Chartered Accountants of India have developed standard accounting and auditing practices to guide the. accountants and auditors in the day to day workThe later developments in auditing pertain to the use of computers in accounting and auditing.In conclusion it can be said that auditing has come a long way from hearing of accounts to taking the help of computers to examine computerized accountsDEFINITIONThe term auditing has been defined by different authorities.1. Spicer and Pegler: "Auditing is such an examination of books of accounts and vouchers of business, as will enable the auditors to satisfy himself that the balance sheet is properly drawn up, so as to give a true and fair view of the state of affairs of the business and that the profit and loss account gives true and fair view of the profit/loss for the financial period, according to the best of information and explanation given to him and as shown by the books; and if not, in what respect he is not satisfied."2. Prof. L.R.Dicksee. "Auditing is an examination of accounting records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.The book "an introduction to Indian Government accounts and audit" "issued by the Comptroller and Auditor General of India, defines audit "an instrument of financial control. It acts as a safeguard on behalf of the proprietor (whether an individual or group of persons) against extravagance, carelessness or fraud on the part of the proprietor's agents or servants in the realization and utilization of the money or other assets and it ensures on the proprietor's behalf that the accounts maintained truly represent facts and that the expenditure has been incurred with due regularity and propriety The agency employed for this purpose is called an auditor."IMPORTANCE, ADVANTAGES, DISADVANTAGES AND LIMITATIONS OF AUDIT

IMPORTANCE OF AUDITINGFor Business 1. Errors are LocatedAuditing is helpful for business. The error can be located through it. The location and correction of error is possible through auditing. The true and fair information about business is available. 2. Frauds are Discovered Auditing is helpful for business. The discovery of fraud is possible through it. The guilty persons can be held responsible. The auditing accounts show fair about business.3. Loans Become Easy Auditing is useful for business. Lenders for granting loans accept the auditors accounts. The reputation of borrowers increases due to auditing. Thus auditing accounts help the businessman to expand his activities. 4. Advise about Weakness Auditing is useful for business. The people can seek advise from auditors. The auditors are professional and they know their work very well. They can spotlight the grey area. It is the duty of the business man to act upon the advise of the auditors. 5. High Moral Values Auditing is essential for business. There is moral check on the management and other staff. Auditing puts the pressure on the staff of work honestly. There is no pending work so there is less chance of errors and frauds.

6. Tax Payments Auditing is useful for business, tax authority accept audited accounts for assessment of taxes. There is no further inquiry or investigation from department. The audited accounts lessen the worries of business people. For Owners 7. Efficiency Improves Auditing is beneficial for business. The auditing determines the efficiency of employees. The training and qualifies management is an asset for any business. Such management can play dynamic role in framing and implementing the policies.8. Dispute is Settled Auditing is essential for business. The audited accounts are helpful to settle the disputes. The audited accounts become the basis of making decisions. The dispute may relate to infringement of patents or trademarks. 9. Planning Becomes Possible Auditing is helpful for business. The audits accounts present true and fair view of business activities. The facts and figures can be used to prepare budge and estimates for the next years. The projected cash receipts and payments, income statement and balance sheet can be prepared. 10. Improvement of Internal Control Auditing is helpful for business. The auditor can point out the weakness of internal control system. The business management can take steps to remove these weaknesses. The effective control systems are essential for large-scale business enterprises. 11. Fluctuation in Profits Auditing is helpful for business. The auditor can make the detailed study to find of fluctuation in profits. There are various reasons for changes in profits. The auditor can determine the true cause of such changes.

12. High Credit Rating The auditing is beneficial for business. The auditing accounts increase the credit standing of any business house. The lenders can rely on audited accounts for granting credit facility. In fact auditing is a screening test of business entity. 13. Listing at Stock Exchange The auditing is beneficial for business. The listing of securities at stock exchange is optional. The public limited companies can get registration at stock exchange. Stock exchange management for registration purpose accepts the audited accounts. 14. Shareholders Protection Auditing is beneficial for owners. The shareholders feel that their rights are protected through auditing. They can know the performance of management. Audited accounts help to determine the value of shares. 15. Partner Satisfaction Auditing is helpful for partners. The sleeping partner feels satisfaction when there are audited. The managing partners can use business property for their personal benefit. There is moral check on managing partners. 16. Proprietors Auditing is useful for proprietors. The audited accounts help the sole traders that their business is going on properly. The error and fraud are pointed out auditors. The owners can determine the efficiency of their employees or assistants. 17. Beneficiary Auditing is valuable for beneficiaries. The auditor of a trust can nominate any person as trustee to look after the property of a trust. Auditing can safeguard the right of beneficiaries. There is a moral check on the trustee to follow the by laws of trust.

18. Deceased Estate The auditing is helpful for dependents of decreased person. The audited accounts presents true and fair view of financial statements. The family can rely on audited accounts for distributing the estate of deceased person. 19. Insolvency The auditing is beneficial for creditors. The audited accounts show true and fair view of state of affairs of sole proprietorship or partnership. The creditor can get their money first and then owners can get refund of capital. The audited accounts help to settle the cases at an early date. For Government20. Better Performance of Tax Department Auditing is beneficial for government. Tax officers accept the audited accounts. The assessment order can be issued without further clarification. There is saving of money and time due to audited accounts. The performance of tax officers is improved. 21. Exact Revenue Amount Auditing is beneficial for government. The collection of revenue is possible at an early date. The people are allowed to deposit various kinds of taxes. The recovery of income is made at the start of the year. The government can start welfare project on the basis of total revenue collected. 22. Progress of Economy Auditing is essential for government policies. The true fair view is stated in audited accounts. The stage of economic progress can be determined. The government can take measures to raise the rate of economic growth. 23. Purchase of Private Business Auditing is helpful for government. The private business houses may not work in favour of general public. The government can take over such business units. The purchase price is decided on the basis of auditing of accounts.

24. Sale of Government Business Auditing is useful for government. The policy can be framed on the basis of audition accounts. The management comes to know the value of business. The government can sell state owned unit to private sector. The bid price is settled on audited accounts. 25. Inspectors The auditing is helpful for government. The auditing accounts show the fair value of all assets. The value of assets. The value of assets is the basis of tax. This issue can be settle through audited accounts. The auditors are experts in their field. They know all methods of property valuation. They can issue certified the government agencies for valuation of property. For General Public 26. Insurers can Settle Claims Auditing is essential for insurers. The settlement of fire or marine insurance claims is easy through audited accounts. The policy holders and insurance company can settle actual loss of property. 27. No Loss to Lenders Auditing is essential for lenders. The banks and other lenders ask the borrowers to submit audited accounts before granting loans. The audited accounts are helpful to check the trust worthiness of customers. 28. Creditor are Protected Auditing is essential for creditors. They can know the true performance of their debtors. The creditor can accept this promise only when he feels that debtor is reliable businessman. Auditor accounts provide basic information about reliability. 29. Bidders Can Offer High Rate Auditing is helpful for bidders. Audited accounts provide information about net worth of any business. The people interested in purchasing the business can rely on such information. They know the fair value of business. They can offer reasonable price through open bidding.2.2 ADVANTAGES OF AUDITA. Businessman's point of viewB. Investor's point of viewC. Other Advantages.

1 Detect onof errorsandfrauds1 . Protects interest1. Evaluate financial status

2 Loan from banks2. Moral check2.Usting of shares

3 Builds reputation3. Proper valuation of investments3. Settlements of claims

4 Proper valuation of assets4 Good security4 Evidence in court

5. Government acceptance5. Settlement of accounts

6. Update accounts5. FaciStates calculation of Purchase. Consternation.

7 Suggestions for improvement7 Facilitates taxation

8. Useful for agency

1. Audited accounts are readily accepted by Government authorities like Tax authorities and Central banks.2. By auditing the accounts Errors and frauds can be detected and rectified in time.3. Audited accounts carry greater authority than the accounts which have not been audited.4. For accessing finance from financial institutions like Banks, previous years audited accounts are evaluated for determining repayment capability.5. Regular audit of account create fear among the employees in the accounts department and exercise a great moral influence on clients staff thereby restraining them from commit frauds and errors.6. Audited accounts facilitate settlement of claims on the retirement/death of a partner.7. In the event of loss of property by fire or on happening of the event insured against, Audited accounts help in the early settlement of claims from the insurance company.8. In case of Public Company where ownership is separated from management, auditing of accounts reassure the shareholders that accounts have been properly maintained, funds are utilized for the right purpose and the management have not taken any undue advantage of their position.9. To determine the value of the business in the event of purchase or sales of the business, audited account will be the treated as the base for the evaluation.10. The audit of accounts by a qualified auditor also help the management to understand the financial position of the business and also it will help the management to take decision on various matters like report in internal control system of the organization or setting up of an internal audit department etc.11. If the accounts have been audited by an independent person, disputes between the management and labor unions on payment of bonus and higher wages can be settled amicably.12. In the event of admission of a new partner, audited accounts will facilitate the formation of terms and conditions for joining the new partner. Last 3 years audited accounts will give a general idea about the growth and financial position of the business to the new partner.2.3 DISADVANTAGES OF AUDITIt is true that auditing as many advantages, but it as some limitations as such 1. Non-detection of errors/frauds: - Auditor may not be able to detect certain frauds which are committed with malafide intentions. 2. Dependence on explanation by others:- Auditor has to depend on the explanation and information given by the responsible officers of the company. Audit report is affected adversely if the explanation and information prove to be false.3. Dependence on opinions of others: - Auditor has to rely on the views or opinions given by different experts viz Lawyers, Solicitors, Engineers, Architects etc. he can not be an expert in all the fields4. Conflict with others: - Auditor may have differences of opinion with the accountants, management, engineers etc. In such a case personal judgment plays an important role. It differs from person to person. 5. Effect of inflation: - Financial statements may not disclose true picture even after audit due to inflationary trends. 6. Corrupt practices to influence the auditors: - The management may use corrupt practices to influence the auditors and get a favorable report about the state of affairs of the organization. 7. No assurance: - Auditor cannot give any assurance about future profitability and prospects of the company. 8. Inherent limitations of the financial statements: - Financial statements do not reflect current values of the assets and liabilities. Many items are based on personal judgment of the owners. Certain non-monetary facts can not be measured. Audited statements due to these limitations can not exhibit true position. 9. Auditing is a postmortem examination: auditing work begins where accounting ends then the auditor is fully depends upon the accounting transaction provided by the accountant in the throughout the year. So auditing work is not suitable for the current position of the business. But it is useful to the future business situation.10. Detailed checking not possible: - Auditor cannot check each and every transaction. He may be required to do test checking.2.4 LIMITATIONS OF AUDITING1. All transactions cannot be checked It is not possible for an auditor to check each and every transaction; he has to check them on sample basis.2. Evidence is not conclusive Audit evidence is not conclusive in nature the confirmation of debtors is not conclusive evidence that all amount will be collected, the conclusions are persuasive rather than conclusive.3. Not easy to detect some frauds Its not easy for an auditor to detect the deeply laid frauds which involves acts designed to conceal them such as forgery, false explanation, and not recording transaction and so on.4. Audit cannot assure about profitability or efficiency of management Even though the accounts are audited it doesnt that the user can take granted the future profitability or prospects of concern as audit dont comment on efficiency of the management.5. Rely on experts The auditor has to rely on experts like lawyers, engineers, valuers etc. for estimation of contingent liability and valuation of fixed assets.

INTRODUCTION OF SYNTHIKO FOILS LTD

Synthiko Foils Ltd., incorporated in the year 1984, is a Small Cap company (having a market cap of Rs 2.1 Cr.) operating in Metals - Non Ferrous sector.Synthiko Foils Ltd. key Products/Revenue Segments include Aluminium Foils which contributed Rs 12.80 Cr to Sales Value (100.00% of Total Sales), for the year ending 31-Mar-2013.For the quarter ended 30-Sep-2014, the company has reported a Standalone sales of Rs. 6.19 Cr., up 48.87% from last quarter Sales of Rs. 4.16 Cr. and up36.04% from last year same quarter Sales of Rs. 4.55 Cr. Company has reported net profit after tax of Rs. 0.14 Cr. in latest quarter.The companys management includes Mr.Hemant Shetye, Mr.Bhavesh Dadhia, Mr.Ramesh Dadhia, Mr.Bhavesh Dadhia, Mr.Dilip D Punjabi, Mr.Ramesh Dadhia.Company has Arvind & Co. as its auditors. As on 30-Sep-2014, the company has a total of 870,000 shares outstanding.

AUDITOR'S REPORT

Referred to in Paragraph (1) under the heading of Report on OtherLegal and Regulatory Requirements of our report of even date

1. In respect of its Fixed Assets:

a. The Company has maintained proper records showing full particulars,including quantitative details & situation of fixed assets on the basisof available information.

b. As explained to us, all the fixed assets have been physicallyverified by the management in a phased periodical manner, which in ouropinion is reasonable, having regard to the size of the Company andnature of its assets. No material discrepancies were noticed on suchphysical verification.

c. In our opinion, the company has not disposed off a substantial partof its fixed assets during the year and the going concern status of theCompany is not affected.

2. In response of its Inventories:

a. The inventories have been physically verified during the year bythe management. In our opinion, the frequency of verification isreasonable.

b. In our opinion & according to the information & explanations givento us, the procedures of physical verification of inventories followedby the management are reasonable and adequate in relation to the sizeof the company and the nature of its business.

c. The company has maintained proper records of inventories. Asexplained to us, there were no material discrepancies noticed onphysical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken bythe Company to /from companies, firms or other parties covered in theregister maintained under Section 301 of the companies act, 1956:

a. As informed, the company has not granted any loans, secured orunsecured, to companies, firms or other parties covered in the registermaintained under Section 301 of the Companies Act, 1956. Accordingly,the provisions stated in paragraph 4 (iii) (b], (c) & (d) of the Orderare not applicable.

b. In our opinion & according to the information and explanationsgiven to us the rate of interest and other terms and conditions of theloans given by the company, are not prima facie prejudicial to theinterest of the company.

c. The principal amounts are repayable over a period of three to fiveyears, while the interest is payable annually at the discretion of thecompany.

d. In respect of the said loans and interest thereon, there are nooverdue amounts.

e. The company has not taken any loan during the year from companies,firms or other parties covered in the Registered maintained underSection 301 of the Companies Act, 1956. Consequently, the requirementsof Clause (iii) (f) & (iii] (g) of paragraph 4 of the Order are notapplicable.

4. In our opinion & according to the information & explanations givento us, there is an adequate internal control system commensurate withthe size of the company and the nature of its business for thepurchases of inventory and fixed assets and for the sale of goods andservices. During the course of our audit, we have not observed anycontinuing failure to correct major weaknesses in internal controlsystem.

5. In respect of the contracts or arrangements referred to in Section301 of the Companies Act, 1956:

a. In our opinion and according to the information and explanationsgiven to us, the transactions made in pursuance of contracts orarrangements that need to be entered in the register maintained underSection 301 of the Companies Act, 1956 have been so entered.

b. In our opinion & according to the information & explanations givento us, the transactions made in pursuance of contracts/arrangementsentered in the register maintained under section 301 of the CompaniesAct, 1956 have been so entered.

6. According to the information and explanations given to us, theCompany has not accepted any deposit from the public within the meaningof section 58A and 58AA of the Act and rules framed thereunder.Therefore, the provision of Clause (vi] of paragraph-4 of the order arenot applicable to the company.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the Company Pursuant to the Companies (Cost Accounting Records] Rules, 2011 Prescribed by the Central Government under Section 209(l)(d] of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, notmade a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. In respect of Statutory Dues:

a. The company is generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund,investor education & protection fund, employees'' state insurance,income tax, sales-tax, wealth tax, service tax, custom duty, exciseduty, cess & other material statutory dues applicable to it.

b. According to the information & explanations give to us, noundisputed amount payable in respect of provident fund, investoreducation & protection fund, employees'' state insurance, income-tax,sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess &other undisputed statutory dues were outstanding at the year end, for aperiod of more than six months from the date they became payable.

10. The Company does not have accumulated losses at the end of thefinancial year. The company has not incurred cash losses during thefinancial year covered by the audit & in the immediately precedingfinancial year.

11. Based on our audit procedures & according to the information andexplanations given to us, we are of the opinion that the Company hasnot defaulted in repayment of dues to financial institutions, banks anddebenture holders.

12. In our opinion and according to the explanations given to us andbased on the information available, no loans and advances have beengranted by the company on the basis of security by way of pledge ofshares, debentures and other securities.

13. In our opinion, the company is not a chit fund/nidhi/ mutualbenefit fund/ society. Therefore, the provisions of clause (xiii) ofparagraph 4 of the order are not applicable to the company.

14. The Company has maintained proper records of the transactions &contracts in respect of dealing or trading in shares, securities,debentures & other investments & timely entries have been made therein.All shares, securities, debenture and other investments have been heldby the company in its own name.

15. The company has given guarantees for loans taken by firm in whichcompany is a partner from banks. According to the information &explanations given to us, we are of the opinion that the terms &conditions thereof are not prima facie prejudicial to the interest ofthe company.

16. The company has not raised new term loans during the year. Theterm loans outstanding at the beginning of the year have been appliedfor the purposes for which they were raised.

17. According to the information and explanations given to us and onan overall examination of the balance sheet of the company, we are ofthe opinion that there are no funds raised on short-term basis thathave used for long term investment.

18. The company has not made any preferential allotment of shares toparties and companies covered in the register maintained under Section301 of the Companies Act, 1956.

19. The Company has created securities/ charges in respect of secureddebentures issued.

20. The Company has not raised any monies by way of public issuesduring the year.

21. During the course of our examination of the books & records of thecompany, carried out in accordance with the generally accepted auditingpractices in India, & according to the information & explanations givento us, we have neither come across any instance of fraud on or by thecompany, noticed or reported during the year, nor have we been informedof such case by the Management.

LEDGER OF THE COMPANY & ITS ANALYSIS Synthiko Foils Limited - 2013-14

Plant & Machinery-Unit-IFIXED ASSETLedger Account

Page 1

DateParticularsVch TypeVch No.DebitCredit

1-4-2013 ToOpening Balance62,84,791.91

2-4-2013 ToVeekay Blower IndustriesJournal0011,86,000.00

ToVirtex EngineersJournal00000172,200.00

ToSahil Enterprise ( V )24906.00

ToJay Equipment & Systems P LtdJournal541,850.00

ToWeb Flex MachinesJournal945,850.00

6-8-2013 ToJay Equipment & Systems P LtdJournal1361,850.00

ToAqsa TelecomJournal7513,000.00

ToAqsa TelecomJournal741,15,730.00

ToVeekay Blower Industries4,000.00

ToVeekay Blower IndustriesJournal770627,400.00

ToSHRIYA ELECTRONICSJournal1730,000.00

ToAmrit EnterprisesJournal143217,250.00


ToMihir SalesJournal393437,323.00


ToAmrit EnterprisesJournal14841,400.00

ToEkta EnterprisesJournal148230,220.00

ToHasmukh Elec. & Hardware StoreJournal82716,460.00

ToMihir SalesJournal395417,016.00

ToAtlas Engineering CompanyJournal25665,900.00


ToVeekay Blower Industries5313,500.00

ToAtlas Engineering CompanyJournal25785,900.00

ToSahil EnterpriseJournalL0040319,300.00

ToRevole Valves BearingsJournal36322,910.00

ToContech Instruments LtdJournal024094,750.00


8-1-2014 ToMultilinksJournal176918,992.00

ToMultilinksJournal177711,328.00

ToN N EnterprisesJournal795,51,840.00

ToSahil EnterpriseJournal4506,023.00


1-3-2014 ToAir Tech EngineersJournalR-1041,82,700.00


ToMOTILAL KALIANDAS & CO151229,544.00


ToSahil EnterpriseJournalL005082,500.00

ByDepreciationJournal826,34,327.00

79,46,482.916,34,327.00

ByClosing Balance73,12,155.91

79,46,482.9179,46,482.91

1-Apr-2013 to 31-Mar-2014

ANALYSIS OF FIXED ASSETS

1) Nature of account: The plant and machinery a/c are real account of tangible fixed asset.

2) Objective of scrutiny: The scrutiny of the account is to be done to obtain the audit evidence that the closing balance shown the a/c is really owned by asset. The balance is properly valued i.e. more or less. The balance is properly classified and disclosed in balance sheet.

3) Opening Balance: The opening balances of the a/c should be checked from the schedule of the fixed asset for the last year available in the audit file

4) Check posting : Scrutiny of the posting in the account show that-

The posting are on the correct side of the account .All entries are posted in the sequence of date. No entry is inserted in between 2 entries afterwards. No entries are altered.

5) Check casting : the totals of the account are correct i.e. 79,46,482.91 /-

6) Check the Entries : The first entry is of opening balance of 62,84,791.91/- of the last financial year (2012-2013)

During the current financial year the company has purchase the fixed asset of RS 1661690.09/-Date of each product installation is depend upon the date of purchaseDate of product usage of the year starting from the date of purchase till the 31st march of the financial year During the year the depreciation is mention on the plant and machinery a/c is total good purchase from the day one till the 31st march of the financial year as mention in the ledger

7) Closing balance : The closing balanced of the plant & machinery a/c is in the on the credit side as the provision of depreciation is not having the separated a/c so it has been adjusted in plant and machinery account i.e. (79,46,482.91 /- -6,34,327.00=73,12,155.91)

8) Check into schedule :The final balance of these account should be checked in to the schedule of the fixed asset

Synthiko Foils Limited - 2013-14

Hindalco Industries Ltd - Nagpur DivSUNDRY CREDITORSLedger Account

1-Apr-2013 to 31-Mar-2014

Page 1


1-4-2013 ByOpening Balance18,86,645.71

2-4-2013 ToCorporation Bank - CC - 6 000 6Payment96,84,363.00

ToCorporation Bank - CC - 6 000 6Payment1758,06,834.93

ByPur Aluminium Foil ( Local ) Net 5%Purchase4471004866,40,721.97

3-5-2013 ByPur Aluminium Foil ( Local ) Net 5%Purchase130007296,87,039.97


ToCorporation Bank - CC - 6 000 6Payment39426,907.50













ByDiscount AllowedJournal17,067.00




























ToPur Aluminium Foil ( Local ) Net 5%Debit NoteD/N1,55,325.00


Carried Over1,50,52,014.282,20,05,756.07

... continued


Hindalco Industries Ltd - Nagpur Div Ledger Account: 1-Apr-2013 to 31-Mar-2014Page 2


Brought Forward1,50,52,014.282,20,05,756.07



ToPur Aluminium Foil ( Local ) Net 5%Debit Note3602,58,472.00







ToAluminium Foil ( Oms )-Net 2%Debit NoteD/N3,87,127.00

















ToPur Aluminium Foil ( Local ) Net 5%Debit NoteD/N65,815.00




















1-2-2014 ToCorporation Bank - CC - 6 000 6Payment193772,997.63


Carried Over3,03,20,110.213,77,60,790.20

... continued


Hindalco Industries Ltd - Nagpur Div Ledger Account: 1-Apr-2013 to 31-Mar-2014Page 3


Brought Forward3,03,20,110.213,77,60,790.20


ToWrite OffJournal1,74,385.00

















5-3-2014 ByPur Aluminium Foil ( Local ) Net 5%Purchase130090566,84,175.07















ToAluminium Foil ( Oms )-Net 2%Debit NoteD/N21,469.00

4,46,80,718.265,00,32,848.21

ToClosing Balance53,52,129.95

5,00,32,848.215,00,32,848.21

ANALYSIS OF SUNDRY CREDITORS

1) Nature of account: The sundry creditors a/c in the book of the limited company for the year ended 31st march 2014


3) Opening Balance: The opening balances of the a/c should be checked from the schedule of the sundry creditors for the last year available in the audit file


a. The posting are on the correct side of the account .All entries are posted in the sequence of date. No entry is inserted in between 2 entries afterwards. No entries are altered.

5) Check casting : the totals of the account are correct which was i.e. 18,86,645/-6) Check the Entries : In the ledger of the sundry creditors the opening balance has the credit balance of 18,86,645/- approx a. During the financial year the company had made the payment through and allow discount of Rs 17067/-, on purchase through corporation bank b. During the financial year the company also given the debtor note with regard to the payment of the material purchase during the year c. During the financial year the company has write off the amount during the year Rs 174385/-d. During the year the company has done lot of transaction of payment bills and purchase the goods

7) Closing balance : The closing balanced of the sundry creditors 53,52,129/-

8) Check into schedule :The final balance of these account should be checked in to the schedule of the sundry creditors


Attar GlobalSUNDRY DEBITORLedger Account

1-Apr-2013 to 31-Mar-2014

Page 1


1-4-2013 ToOpening Balance6,66,784.00

1-4-2013 ByExcise Refund ReceivableJournal35,600.00

ToLocal Sales ( Form H )Sales281,02,414.00


ByCorporation Bank - CC - 6 000 6Receipt652,00,000.00

ByCorporation Bank - CC - 6 000 6Receipt6665,785.00



ToLocal Sales ( Form H )Sales6662,824.00

ToCylinder Making ChargesDebit Note7,250.00

4-5-2013 ByCorporation Bank - CC - 6 000 6Receipt812,81,435.00




























6-8-2013 ToLocal Sales ( Form H )Sales2876,12,620.00











Carried Over94,55,614.0073,47,943.00

... continued


Attar Global Ledger Account : 1-Apr-2013 to 31-Mar-2014Page 2


Brought Forward94,55,614.0073,47,943.00


















ToLocal Sale ( Form - H )-Excise RebateSales4981,79,722.00
























2-2-2014 ToLocal Sales ( Form H )Sales67269,878.00


6-2-2014 ToCylinder Making ChargesDebit Note9,000.00





Carried Over1,63,35,948.001,49,55,952.00

... continued


Attar Global Ledger Account : 1-Apr-2013 to 31-Mar-2014Page 3


Brought Forward1,63,35,948.001,49,55,952.00







1,69,61,038.001,59,53,043.00

ByClosing Balance10,07,995.00

1,69,61,038.001,69,61,038.00

ANALYSIS OF SUNDRY DEBTORS

1) Nature of account: The sundry debtor a/c in the book of the limited company for the year ended 31st march 2014


3) Opening Balance: The opening balances of the sundry debtors a/c should be checked from the schedule of the sundry debtors a/c for the last year available in the audit file


a. The posting are on the correct side of the account .All entries are posted in the sequence of date. No entry is inserted in between 2 entries afterwards. No entries is altered.

5) Check casting : In the sundry debtor a/c its has the previous year closing balance as opening balance in the current financial year i.e. 6,66,784.00/-6) 7) Check the Entries : In the account opening balance on the debit side of the a/c During the year company had made the sale there product and the profitDuring the financial year company had made the debit note for making the cylinder of the goods During the financial year the company had got the excise free duty of 37000/-

8) Closing balance : The closing balanced of the Sundry debtors a/c 10,07,995/-

9) Check into schedule :The final balance of these account should be checked in to the schedule of the sundry debtor a/c

Synthiko Foils Limited - 2013-14 T/L : Corp Bank - TLS- 01 110002TERM LOAN Ledger Account

1-Apr-2013 to 31-Mar-2014

Page 1


1-4-2013 ByOpening Balance12,60,177.00

ToCorporation Bank - CC - 6 000 6Contra112,92,000.00

ToCorporation Bank - CC - 6 000 6Contra1587,000.00


ByInterest on Term LoanPayment18112,277.00

2-5-2013 ToCorporation Bank - CC - 6 000 6Contra2012,000.00


ByInterest on Term LoanPayment45810,155.00



ByInterest on Term LoanJournal9,543.00










ByInterest on Term LoanJournal1076266.00


















7,74,360.0013,62,785.00

ToClosing Balance5,88,425.00

13,62,785.0013,62,785.00

ANALYSIS OF TERM LOAN

1) Nature of account: The term loan a/c in the book of the limited company for the year ended 31st march 2014


3) Opening Balance: The opening balances of the term loan a/c should be checked from the schedule of the sundry debtors a/c for the last year available in the audit file


a. The posting are on the correct side of the account .All entries are posted in the sequence of date. No entry is inserted in between 2 entries afterwards. No entries is altered.

5) Check casting : In the sundry debtor a/c its has the previous year closing balance as opening balance in the current financial year i.e. 12,60,177/-6) Check the Entries : In the account opening balance on the credit side of the a/c a. During the year company had made the interest on loan (7527+9543+6775+12777) so on b. During the financial year company had made the contra type payment of loan c. During the financial year the company had made the payment with interest 7) Closing balance : The closing balanced of the term loan a/c 5,88,425.00/-

8) Check into schedule :The final balance of these account should be checked in to the schedule of the sundry debtor a/c

BIBLIOGRAPHY

WWW.GOOGLE.COM WIKIPEDIA Economics times.com

SHREERAJ HARIHARAN ROLL NO 36 M.COM PART- II SEMESTER- III

Documents

auditPROJECT (Repaired).docx