auditPROJECT-Repaired-docx.docx

PROJECT ON

“AUDIT OF LEDGER OF ATTAR GLOBAL LTD &ITS ANALYSIS”

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

UNIVERSITY OF MUMBAI

SUMBITTED BYSHAHIR GULAB MUZAWARM.COM PART-II (SEM-III)

ROLL NO 4

2014-2015

UNDER THE GUIDANCE OFPROF. MEETA KARANGIA

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

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DECLARATION

I MR SHAHIR GULAB MUZAWAR student of LORD UNIVERSAL COLLEGE, M.com Part-I I(SEM III) hereby declare that I have completed project on “AUDIT OF LEDGER OF ATTAR GLOBAL LTDLTD & ITS ANALYSIS”, in the academic year 2014-2015.This information is true &original to best of my knowledge

Date: signature ofstudent

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Acknowledgement

With deep satisfaction and immense pleasure I am presenting this project report on “AUDIT OF LEDGER OF ATTAR GLOBAL LTDLTD & 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

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CONTENTS

INTRODUCTION --------------------------------------------------------------------- 05

IMPORTANCE, ADVANTAGES, DISADVANTAGES ANDLIMITATIONS OF AUDIT ------------------------------------------------------------10

INTRODUCTION OF ATTAR GLOBAL LTDLTD ----------------------------------21

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

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

BIBLIOGRAPY-------------------------------------------------------------------------34

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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 transactions

As 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

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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

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ORIGIN AND EVOLUTION

The 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 them

Auditing 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 frauds

Auditing 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 compulsory

With 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.

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Hence the emphasis was not on arithmetical accuracy but on a fair

representation of the financial efforts

The companies Act. 1913 also prescribed for the first time the

qualification of auditors

The 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 work

The 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 accounts

DEFINITION

The 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."

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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."

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IMPORTANCE, ADVANTAGES, DISADVANTAGES ANDLIMITATIONS OF AUDIT

IMPORTANCE OF AUDITING

For Business

1. Errors are Located

Auditing 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 auditor’s

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.

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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

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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

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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 Government

20. 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

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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

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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 AUDIT

A. Businessman's point of B. Investor's point of view C. Other Advantages.

view

1 Detect onof errorsandfrauds 1 . Protects interest 1. Evaluate financial status

2 Loan from banks 2. Moral check 2.Usting of shares

3 Builds reputation 3. Proper valuation of 3. Settlements of claims

investments

4 Proper valuation of assets 4 Good security 4 Evidence in court

5. Government acceptance 5. Settlement of accounts

6. Update accounts 5. FaciStates calculation of

Purchase. Consternation.

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7 Suggestions for 7 Facilitates taxation

improvement

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

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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 AUDIT

It 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 fields

4. 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.

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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 AUDITING

1. 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 – It’s 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 doesn’t that the user can take granted the future

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profitability or prospects of concern as audit don’t 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 ATTAR GLOBAL LTDLTD

ATTAR GLOBAL LTDLtd., 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.

ATTAR GLOBAL LTDLtd. 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 up 36.04% 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 company’s 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.

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AUDITOR'S REPORT

Referred to in Paragraph (1) under the heading of Report on Other

Legal 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 basis of available information.

b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

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

2. In response of its Inventories:

a. The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

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

3. In respect of the loans, secured or unsecured, granted or taken by

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the Company to /from companies, firms or other parties covered in the

register maintained under Section 301 of the companies act, 1956:

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

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

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

d. In respect of the said loans and interest thereon, there are no overdue amounts.

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

4. In our opinion & according to the information & explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

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

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of section 58A and 58AA of the Act and rules framed thereunder. Therefore, the provision of Clause (vi] of paragraph-4 of the order are not 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, not made 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 appropriate authorities undisputed statutory dues including provident fund, investor education & protection fund, employees'' state insurance, income tax, sales-tax, wealth tax, service tax, custom duty, excise duty, cess & other material statutory dues applicable to it.

b. According to the information & explanations give to us, no undisputed amount payable in respect of provident fund, investor education & 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 a period of more than six months from the date they became payable.

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

11. Based on our audit procedures & according to the information and

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explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and debenture holders.

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

13. In our opinion, the company is not a chit fund/nidhi/ mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 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 held by the company in its own name.

15. The company has given guarantees for loans taken by firm in which company 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 of the company.

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

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

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

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

20. The Company has not raised any monies by way of public issues during the year. 23 | P a g e

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

ATTAR GLOBAL LTDLimited - 2013-14

SUNDRY CREDITORSLedger Aunt

1-Apr-2013 to 31-Mar-2014

Page 1

Date Particulars Vch Type Vch No. Debit Credit

1-4-2013 By Opening Balance 18,86,645.712-4-2013 ToCorporation Bank - CC - 6 000 6 Payment 9 6,84,363.00

ToCorporation Bank - CC - 6 000 6 Payment 175 8,06,834.93ByPur Aluminium Foil ( Local ) Net 5% Purchase 447100486 6,40,721.97

3-5-2013 ByPur Aluminium Foil ( Local ) Net 5% Purchase 13000729 6,87,039.977-5-2013 ToCorporation Bank - CC - 6 000 6 Payment 220 8,24,327.93

ToCorporation Bank - CC - 6 000 6 Payment 394 26,907.50ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001374 10,88,283.00ToCorporation Bank - CC - 6 000 6 Payment 604 6,40,721.97ToCorporation Bank - CC - 6 000 6 Payment 621 6,87,039.97ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001687 4,65,732.98ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001688 4,30,011.55ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001859 6,72,031.97ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001893 4,15,720.98ByPur Aluminium Foil ( Local ) Net 5% Purchase 13001994 12,46,500.92ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002022 16,86,778.93ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002046 7,80,984.96ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002047 1,80,611.01ToCorporation Bank - CC - 6 000 6 Payment 812 10,88,283.00ByDiscount Allowed Journal 17,067.00ToCorporation Bank - CC - 6 000 6 Payment 859 17,067.00ToCorporation Bank - CC - 6 000 6 Payment 860 4,65,732.98ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002415 17,34,162.92ToCorporation Bank - CC - 6 000 6 Payment 876 4,30,011.55ToCorporation Bank - CC - 6 000 6 Payment 898 6,72,031.97ToCorporation Bank - CC - 6 000 6 Payment 899 4,15,720.98ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002622 2,06,470.25ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002623 13,26,137.01ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002796 10,05,886.95ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002802 1,36,366.99ByPur Aluminium Foil ( Local ) Net 5% Purchase 13002804 11,20,686.97

2-8-2013 ToCorporation Bank - CC - 6 000 6 Payment 947 12,46,500.927-8-2013 ToCorporation Bank - CC - 6 000 6 Payment 973 10,00,000.00

ToCorporation Bank - CC - 6 000 6 Payment 1034 6,86,778.93ToCorporation Bank - CC - 6 000 6 Payment 1039 7,80,984.96ToCorporation Bank - CC - 6 000 6 Payment 1040 13,801.81ByPur Aluminium Foil ( Local ) Net 5% Purchase 13003340 1,52,242.99

ToCorporation Bank - CC - 6 000 6 Payment 1056 17,34,218.92

26 | P a g e

By Pur Aluminium Foil ( Local ) Net 5% Purchase 13003533 11,30,176.95By Pur Aluminium Foil ( Local ) Net 5% Purchase 13003573 13,53,907.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13003586 10,28,381.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13003743 4,84,102.97By Pur Aluminium Foil ( Local ) Net 5% Purchase 13003744 12,34,416.00

6-9-2013 To Corporation Bank - CC - 6 000 6 Payment 1118 2,06,970.25To Corporation Bank - CC - 6 000 6 Payment 1119 13,26,137.01To Corporation Bank - CC - 6 000 6 Payment 1164 1,36,366.95To Corporation Bank - CC - 6 000 6 Payment 1165 10,05,886.75To Pur Aluminium Foil ( Local ) Net 5% Debit Note D/N 1,55,325.00

By Pur Aluminium Foil ( Local ) Net 5% Purchase 13004184 8,94,687.12

Carried Over 1,50,52,014.28 2,20,05,756.07

... continuedATTAR GLOBAL LTDLimited - 2013-14

Hindalco Industries Ltd - Nagpur Div Ledger Account : 1-Apr-2013 to 31-Mar-2014 Page 2Date Particulars Vch Type Vch No. Debit Credit

Brought Forward 1,50,52,014.28 2,20,05,756.07

By Pur Aluminium Foil ( Local ) Net 5% Purchase 13004185 4,79,747.98To Corporation Bank - CC - 6 000 6 Payment 1216 11,20,686.97To Pur Aluminium Foil ( Local ) Net 5% Debit Note 360 2,58,472.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13004547 13,90,969.82By Pur Aluminium Foil ( Local ) Net 5% Purchase 13004545 4,31,619.62To Corporation Bank - CC - 6 000 6 Payment 1262 1,52,243.08To Corporation Bank - CC - 6 000 6 Payment 1266 11,30,232.95To Corporation Bank - CC - 6 000 6 Payment 1329 4,82,102.97To Corporation Bank - CC - 6 000 6 Payment 1357 7,69,909.00To Aluminium Foil ( Oms )-Net 2% Debit Note D/N 3,87,127.00To Corporation Bank - CC - 6 000 6 Payment 1412 8,47,289.00To Corporation Bank - CC - 6 000 6 Payment 1431 13,53,907.05To Corporation Bank - CC - 6 000 6 Payment 1448 4,79,747.98To Corporation Bank - CC - 6 000 6 Payment 1449 2,000.00To Corporation Bank - CC - 6 000 6 Payment 1489 6,21,217.12To Corporation Bank - CC - 6 000 6 Payment 1523 4,31,619.62To Corporation Bank - CC - 6 000 6 Payment 1534 5,00,000.00To Corporation Bank - CC - 6 000 6 Payment 1535 8,90,969.82By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006135 2,86,592.80By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006132 4,68,636.18By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006142 5,33,690.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006134 2,06,169.20By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006237 2,95,889.79By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006236 8,86,117.40By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006235 2,01,287.60By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006234 8,49,743.77To Pur Aluminium Foil ( Local ) Net 5% Debit Note D/N 65,815.00To Pur Aluminium Foil ( Local ) Net 5% Debit Note D/N 1,66,809.00To Pur Aluminium Foil ( Local ) Net 5% Debit Note D/N 2,73,470.00To Corporation Bank - CC - 6 000 6 Payment 1723 4,65,170.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006847 16,01,789.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006901 4,64,384.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006900 12,30,367.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13006942 14,22,569.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13007015 13,67,547.00To Corporation Bank - CC - 6 000 6 Payment 1829 4,68,636.18To Corporation Bank - CC - 6 000 6 Payment 1830 2,06,169.20

To Corporation Bank - CC - 6 000 6 Payment 1831 2,86,592.8027 | P a g e

To Corporation Bank - CC - 6 000 6

Payment 1860 2,95,917.79

To Corporation Bank - CC - 6 000 6 Payment 1861 2,01,287.60







1-2-2014 To Corporation Bank - CC - 6 000 6 Payment 1937 72,997.63

To Corporation Bank - CC - 6 000 6 Payment 1938 2,00,000.00Carried Over 3,03,20,110.21 3,77,60,790.20


Page 3Date Particulars Vch Type Vch No. Debit Credit

Brought Forward 3,03,20,110.21 3,77,60,790.20

6-2-2014 To Corporation Bank - CC - 6 000 6 Payment 1959 10,55,982.00To Write Of Journal 1,74,385.00

8-2-2014 To Corporation Bank - CC - 6 000 6 Payment 1968 4,64,383.98By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008346 13,10,738.15By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008345 13,45,019.25To Corporation Bank - CC - 6 000 6 Payment 2013 13,67,547.00To Corporation Bank - CC - 6 000 6 Payment 2014 10,00,000.00To Pur Aluminium Foil ( Local ) Net 5% Debit Note D/N 1,74,385.00To Corporation Bank - CC - 6 000 6 Payment 2023 4,22,569.00To Corporation Bank - CC - 6 000 6 Payment 2024 14,659.40By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008653 1,02,152.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008652 4,69,348.97By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008709 15,67,962.00To Corporation Bank - CC - 6 000 6 Payment 2051 14,05,683.00By Pur Aluminium Foil ( Local ) Net 5% Purchase 13008834 4,57,620.37By Pur Aluminium Foil ( Local ) Net 5% Purchase 13009028 15,71,643.92By Pur Aluminium Foil ( Local ) Net 5% Purchase 13009026 7,74,472.96To Corporation Bank - CC - 6 000 6 Payment 2054 8,09,284.97

5-3-2014 By Pur Aluminium Foil ( Local ) Net 5% Purchase 13009056 6,84,175.07By Pur Aluminium Foil ( Local ) Net 5% Purchase 447107802 10,68,912.00

6-3-2014 To Corporation Bank - CC - 6 000 6 Payment 2092 10,00,000.008-3-2014 To Corporation Bank - CC - 6 000 6 Payment 2106 4,22,946.00

By Pur Aluminium Foil ( Local ) Net 5% Purchase 447107960 9,42,682.97By Pur Aluminium Foil ( Local ) Net 5% Purchase 447107966 9,14,629.97To Corporation Bank - CC - 6 000 6 Payment 2144 13,10,738.15To Corporation Bank - CC - 6 000 6 Payment 2157 2,50,000.00To Corporation Bank - CC - 6 000 6 Payment 2166 7,95,019.25To Corporation Bank - CC - 6 000 6 Payment 2173 3,00,000.00To Corporation Bank - CC - 6 000 6 Payment 2193 4,69,348.97To Corporation Bank - CC - 6 000 6 Payment 2195 15,67,962.00

By Pur Aluminium Foil ( Local ) Net 5% Purchase 447108367 2,35,322.98By Pur Aluminium Foil ( Local ) Net 5% Purchase 13009688 8,27,377.40To Corporation Bank - CC - 6 000 6 Payment 2226 13,34,245.33

To Aluminium Foil ( Oms )-Net 2% Debit Note D/N 21,469.00

4,46,80,718.26 5,00,32,848.21

To Closing Balance 53,52,129.955,00,32,848.21 5,00,32,848.21

28 | P a g e

ANALYSIS OF SUNDRY CREDITORS

1) Nature of account: The sundry creditor’s a/c in the book of the limited company for the year

ended 31st march 2014

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 sundry creditors for the last year available in the audit file

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

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

8)

ATTAR GLOBAL LTDLimited - 2013-14

Attar GlobalSUNDRY DEBITOR

1-Apr-2013 to 31-Mar-2014

Page 1

Date Particulars Vch Type Vch No. Debit Credit

1-4-2013 To Opening Balance 6,66,784.001-4-2013 ByExcise Refund Receivable Journal 35,600.00

ToLocal Sales ( FoH ) Sales 28 1,02,414.00ToLocal Sales ( FoH ) Sales 29 9,21,912.00ByCorporation Bank - CC - 6 000 6 Receipt 65 2,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 66 65,785.00ToLocal Sales ( FoH ) Sales 64 1,02,799.00ToLocal Sales ( FoH ) Sales 65 7,66,727.00ToLocal Sales ( FoH ) Sales 66 62,824.00ToCylinder Making Charges Debit Note 7,250.00

4-5-2013 ByCorporation Bank - CC - 6 000 6 Receipt 81 2,81,435.00ToCylinder Making Charges Debit Note 11,250.00ToLocal Sales ( FoH ) Sales 96 2,73,330.00ByCorporation Bank - CC - 6 000 6 Receipt 107 2,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 111 2,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 131 2,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 142 2,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 144 2,24,326.00ToCylinder Making Charges Debit Note 20,250.00ToLocal Sales ( FoH ) Sales 143 2,23,270.00ByCorporation Bank - CC - 6 000 6 Receipt 179 1,02,799.00ByCorporation Bank - CC - 6 000 6 Receipt 186 62,824.00ToLocal Sales ( FoH ) Sales 177 14,29,238.00ToLocal Sales ( FoH ) Sales 178 3,82,200.00ByCorporation Bank - CC - 6 000 6 Receipt 191 4,00,000.00ByCorporation Bank - CC - 6 000 6 Receipt 199 3,66,727.00ToCylinder Making Charges Debit Note 9,000.00

4-7-2013 ByCorporation Bank - CC - 6 000 6 Receipt 243 1,00,000.00ToLocal Sales ( FoH ) Sales 227 8,90,127.00

6-7-2013 ByCorporation Bank - CC - 6 000 6 Receipt 247 1,73,330.00

By Corporation Bank - CC - 6 000 6 Receipt 258 1,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 266 1,23,270.00To Local Sales ( FoH ) Sales 251 1,98,266.00To Local Sales ( FoH ) Sales 252 27,930.00To Local Sales ( FoH ) Sales 253 7,71,466.00By Corporation Bank - CC - 6 000 6 Receipt 291 10,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 299 4,29,238.00

3-8-2013 By Corporation Bank - CC - 6 000 6 Receipt 309 3,82,200.006-8-2013 To Local Sales ( FoH ) Sales 287 6,12,620.00

By Corporation Bank - CC - 6 000 6 Receipt 325 5,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 331 3,90,127.00To Local Sales ( FoH ) Sales 307 11,99,227.00By Corporation Bank - CC - 6 000 6 Receipt 335 27,930.00By Corporation Bank - CC - 6 000 6 Receipt 341 4,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 351 3,71,466.00To Local Sales ( FoH ) Sales 319 7,49,730.00By Corporation Bank - CC - 6 000 6 Receipt 417 1,98,266.00By Corporation Bank - CC - 6 000 6 Receipt 425 6,12,620.00

To Cylinder Making Charges Debit Note 27,000.00

Carried Over 94,55,614.00 73,47,943.00


Attar Global Ledger Aunt : 1-Apr-2013 to 31-Mar-2014 Page 2Date Particulars Vch Type Vch No. Debit Credit

Brought Forward 94,55,614.00 73,47,943.00

To Local Sales ( Form H ) Sales 371 2,50,641.00By Corporation Bank - CC - 6 000 6 Receipt 447 5,99,227.00By Corporation Bank - CC - 6 000 6 Receipt 455 6,00,000.00To Local Sales ( Form H ) Sales 391 1,96,940.00To Local Sales ( Form H ) Sales 392 4,03,211.00To Corporation Bank - CC - 6 000 6 Payment 1315 6,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 458 6,00,000.00To Cylinder Making Charges Debit Note 15,000.00To Cylinder Making Charges Debit Note 27,000.00By Corporation Bank - CC - 6 000 6 Receipt 486 7,49,730.00To Local Sales ( Form H ) Sales 446 6,27,569.00To Cylinder Making Charges Debit Note 14,000.00To Cylinder Making Charges Debit Note 004 2,250.00To Local Sales ( Form H ) Sales 452 11,16,750.00To Cylinder Making Charges Debit Note 9,000.00To Cylinder Making Charges Debit Note 7,250.00By Corporation Bank - CC - 6 000 6 Receipt 563 1,96,940.00To Local Sale ( Fo- H )-Excise Rebate Sales 498 1,79,722.00To Local Sale ( Fo- H )-Excise Rebate Sales 499 9,92,429.00By Corporation Bank - CC - 6 000 6 Receipt 574 2,03,211.00To Local Sales ( Form H ) Sales 506 2,26,788.00To Local Sales ( Form H ) Sales 507 6,71,305.00By Corporation Bank - CC - 6 000 6 Receipt 585 2,00,000.00To Local Sales ( Form H ) Sales 519 2,75,588.00To Local Sales ( Form H ) Sales 520 62,498.00By Corporation Bank - CC - 6 000 6 Receipt 600 2,50,641.00By Corporation Bank - CC - 6 000 6 Receipt 601 3,27,569.00By Corporation Bank - CC - 6 000 6 Receipt 607 3,00,000.00To Cylinder Making Charges Debit Note 2,250.00

By Corporation Bank - CC - 6 000 6 Receipt 624 5,00,000.0031 | P a g e

By Corporation Bank - CC - 6 000 6 Receipt 627 4,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 638 6,16,750.00To Cylinder Making Charges Debit Note 5,000.00

3-1-2014 By Corporation Bank - CC - 6 000 6 Receipt 662 2,26,788.006-1-2014 By Corporation Bank - CC - 6 000 6 Receipt 673 2,71,305.00

By Corporation Bank - CC - 6 000 6 Receipt 694 3,00,000.00By Corporation Bank - CC - 6 000 6 Receipt 701 3,00,000.00To Local Sale ( Fo- H )-Excise Rebate Sales 627 1,84,552.00By Corporation Bank - CC - 6 000 6 Receipt 722 1,59,952.00By Corporation Bank - CC - 6 000 6 Receipt 725 2,83,258.00By Corporation Bank - CC - 6 000 6 Receipt 756 2,75,588.00

2-2-2014 To Local Sales ( Form H ) Sales 672 69,878.00To Local Sales ( Form H ) Sales 673 6,29,820.00

6-2-2014 To Cylinder Making Charges Debit Note 9,000.00To Cylinder Making Charges Debit Note 4,500.00To Local Sales ( Form H ) Sales 712 2,97,393.00By Corporation Bank - CC - 6 000 6 Receipt 815 1,84,552.00By Corporation Bank - CC - 6 000 6 Receipt 831 62,498.00

Carried Over 1,63,35,948.00 1,49,55,952.00


Attar Global Ledger Aunt : 1-Apr-2013 to 31-Mar-2014 Page 3Date Particulars Vch Type Vch No. Debit Credit

Brought Forward 1,63,35,948.00 1,49,55,952.00

3-3-2014By Corporation Bank - CC - 6 000 6 Receipt 839 6,29,820.00By Corporation Bank - CC - 6 000 6 Receipt 840 69,878.00To Cylinder Making Charges Debit Note 4,500.00To Local Sales ( Form H ) Sales 808 1,44,594.00To Local Sales ( Form H ) Sales 809 4,75,996.00

By Corporation Bank - CC - 6 000 6 Receipt 894 2,97,393.00

1,69,61,038.00 1,59,53,043.00

By Closing Balance 10,07,995.001,69,61,038.00 1,69,61,038.00

32 |

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

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 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

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

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 profit During 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

36 | P a g e

Bibliography

1)ECONOMICS TIMES2)WIKIPEDIA

Documents

auditPROJECT-Repaired-docx.docx