JINDAL SAW LTD AUDIT PROGRAM Page 1 of 5

INTERNAL AUDIT REPORTDept. –Production

ProductionPeriod covered : FY 2013-14

AUDIT OBJECTIVES:

To ensure that Production Department is functioning efficiently & effectively in accordance with its objectives and the policies and procedures of the Company.

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Done Y/N?

Auditee contacted Date Comment

(I)      PLANNING          

1. Interview the concerned personnel.          

2. Obtain & review:

2.1 Policies and Procedures.

2.2 SOPs /as is process for various activities of the department.

2.3 Previous audit reports and follow up reports.

2.4 Job Descriptions and Organizational Chart of production dept.

2.5 Obtains details of all reports generated related to Production Management, including MIS reports, and review the reports relevant for control evaluation.

(II)      AUDIT FIELDWORK          

1. Target VS Actual Production          

1.1 Review the Production planning

1.2 Obtain and compare the historical production/sales data to determine reasonableness

1.3 Review the actual production and rejection

1.4 Review the time with the production

1.5 Analyse the target and Actual production comparing with previous project/production

JINDAL SAW LTD AUDIT PROGRAM Page 2 of 5

INTERNAL AUDIT REPORTDept. –Production

ProductionPeriod covered : FY 2013-14

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Auditee contacted Date Comment

1.6 Review the opportunity of improvement

1.7 Review the efficiency compared with the capacity and specification of the machinery

2. Scrap Generation

2.1 identification of Scrap generating point and marking the area

2.2 Scrap generation norms vs actual comparison

2.3 Grading of Scrap as per their intrinsic value

2.4 keeping of the scrap in designated bin and area must be clean

2.5 Frequency of Picking the scrap etc

3. Process of Recording the production at each stage

3.1 Obtain SOP's and verify they are adequate to define how work is to be conducted throughout the production/manufacturing processes

3.2 Verify the data capturing at each station and their reasonableness

3.3 Verify whether the same is manual or electronically.

3.4 Verify whether the data caputuring is on real time basis

4. Process of raw material handling and handling loss

4.1 Obtain SOP in this regard and verify it is followed

4.2 Reviewthe Raw Material is utilised properly with minimum loss

4.3 Review the scrap generated is collected and dumped properly

JINDAL SAW LTD AUDIT PROGRAM Page 3 of 5

INTERNAL AUDIT REPORTDept. –Production

ProductionPeriod covered : FY 2013-14

ParticularsWP Ref

Done Y/N?

Auditee contacted Date Comment

5. Process of testing of raw material .SFG and Finished goods

5.1 Obtain SOP in this regard and verify it is followed

5.2 Review the several required test are perfomed and report generated

5.3 Verify actions are taken on such reports

5.4 Verify any analysis done on such testing reports

5.5 Verify testing reports are kept properly as per the requirement

6. Input vs Output tally

6.1 Review Input Out tally is prepared and analysed

6.2 verify the variations are noted and treated accordingly

6.3 Review the variations norms and compare with the actuals

6.4 Verify if variations are abnormal the effecting area is diagnosed

6.5 whether the diagnosed area is taken care of

7. Process of safety norms followed

7.1 Review the safety norms defined to be followed during production

7.2 Verify the same is followed properly

7.3 Any agency appointed to check such safety requirements

7.4 How the safety norms are encouraged among the employees/workers etc

JINDAL SAW LTD AUDIT PROGRAM Page 4 of 5

INTERNAL AUDIT REPORTDept. –Production

ProductionPeriod covered : FY 2013-14

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Done Y/N?

Auditee contacted Date Comment

7.5 Verify adequate safety items are available and used by the workers

7.6 what are the steps taken to make the ZERO casualty zone

8. Rejections

8.1 Review the rejection policy defined

8.2 Analyse the rejection history and compare with the current

8.3 Review the corrective measures taken to reduce the rejections

8.4 Review the usage of such rejection

8.5 Rejction vs Repairable

9. Cost Capturing

9.1. Review the methodology of cost capturing

(III)     REPORTING          

1. Prepare summary of audit findings/observations.          

2. Discuss the preliminary audit findings to the appropriate process owner/Dep’t/Div Head and obtain corrective actions.

3. Prepare preliminary Audit Report and submit to Head – MAG.

4. Edit the reports and prepare final Audit Report

(IV)       SUPERVISION, REVIEW AND CONCLUSIONS          

1. Conclude responsive to the audit objectives.          

JINDAL SAW LTD AUDIT PROGRAM Page 5 of 5

INTERNAL AUDIT REPORTDept. –Production

ProductionPeriod covered : FY 2013-14

ParticularsWP Ref

Done Y/N?

Auditee contacted Date Comment

2. Prepare points regarding internal controls and other business matters.

3. Perform senior review and supervision.

4. Clear senior review points.

PREPARED BY REVIEWED BY:

Ram Manohar Gupta Dharmendra Prasad

Deputy Manager General Manager