STOCK AUDIT REPORT

M/S. P.V.KNIT FASHIONS

CONDUCTED ON 28/11/2013
Name of the Bank & Branch CORPORATION BANK,
TIRUPUR MAIN BRANCH, TIRUPUR
A. COMPANYS PROFILE
1. Name &
address of the party
M/S. P.V.KNIT FASHIONS
81, Ra!aa"#a$%&a' E(".,
K)!% Ma* R)a+,
TIRUPUR , -.1 -0/
TAMILNADU
. Nat!re of B!s"ness Man!fact!r"n# & $%porters of Hos"ery
#arments
&. Nat!re 'Type of B!s"ness P%&0#a12, 'a%3a0"%&2 4 E($)&"1 )3
#)1*2&5 !a&'2"1 4 a66*2+ a0"*7*"*21
(. )teps "n*o+*ed "n
man!fact!re'process to#ether
,"th ma-or "np!ts'o!tp!ts at
e*ery sta#e
Ya& P&)0%&2'2"89Fa:&*0a"*)8
9B62a0#*!89 D52*! 89C)'$a0"*!
9P&*"*! 89C%""*! 89S"*"0#*!
89C#20;*! 89I&)*! 89Pa0;*!
89E($)&"*! :5 R)a+/S2a/A*&<a51.
.. Insta++ed Capac"ty Not A*a"+a/+e
0. a1 Capac"ty Ut"+"sat"on as on the date of *"s"t Not A*a"+a/+e
/1 A*era#e Capac"ty Ut"+"sat"on d!r"n# the +ast
year
Not A*a"+a/+e
c1 A!d"tors Comment "f any O$"*'%' %12+.
2. )o+e' M!+t"p+e' Consort"!m SOLE BANKIN= >ITH US
3. 4ate of commencement and
4ate comp+eted
3'11'51&
5.'1'51&
6. A!d"t /ased on the stocks'Book de/ts'
dec+ared /y the /orro,er "n the"r statement
Da"2+? 31/10/2013
M)"# C)72&2+? O0"):2& 2013
15.)anct"on"n# A!thor"ty
)anct"on Reference No. & date
Maa!2'2" C)''*""22, HO.
1. 78'CB$'A4R')M$'798C'133'51&:1(
4ated 1'50'51&
. 78'CB$'A4;'79CC')M$'..'51:1&
4ated 5.'1'51
&. TPR'A4;'C)I'A<M'M)$'15('51:1&
4ated 15'5.'51
11. L*'*" Sa0"*)2+ , CORPORATION BANK.
)+.
No
.
Nat!re of =ac"+"ty 9"m"t
>"n 9akhs1
8?)
>8n the date of
Inspect"on1
8*er
d!es "f
any
51 PCL .@0.00 .3.@2..2
5 FDBP
S%: L*'*"?
FDBP/BD D*&20" Pa& 02/B*66
FDBP/BD D*&20" Pa& 02/BD
300.00
2@0.00
1/@.00
0023011
$4RN
$NRN
2
5& F)&<a&+ P%&0#a12 0)"&a0" 300.00 11/2038A
5( a1T$RM 98AN Ne,
/1 Term 9oan II
c1 Term 9oan III
d1 Term 9oan I;
-/.@0
@.@0
30.2.
1./@
33AA82
2.8A@@0
5. "1 BAN@ <UARANT$$
""1 BAN@ <UARANT$$
3.00
1@.00 .0@000
52 8;$R 4RA=T =ACI9ITA 1@.00
B.PHYSICAL VERIFICATION OF STOCKS.
1. 4escr"pt"on of )tock dec+ared >as per stock statement as on &1.15.51& >Amo!nt
"n 9akhs of R!pees1
A. RABAMAT$RIA9
Pa&"*0%6a&1 B%a"*"5
In Kgs
Va6%2
R1.
8pen"n# )tock as on 51.15.51& 012(. 1&..3(
P!rchases >Aarn1 (2.0 15.(0
Tota+ 00.51 1(0.&5
Used'so+d 5(( (3.(6
C+os"n# )tock as on &1:15:51& (((.2 62.31
A. >ORK IN PRO=RESS
Pa&"*0%6a&1 B%a"*"5
In Kgs
Va6%2
Rs.
8pen"n# )tock as on 51.15.51& 1(5606 (01.&3
AddC Ra, mater"a+ D stores &spares cons!med 135& .2.66
AddC 4"rect Man!fact!r"n# $%penses 10.5(
Tota+ 1022 0(..(1
9essC ="n"shed <oods prod!ced d!r"n# th"s month &122 162.16
C+os"n# )tock as on &1:15:51& 1&1(6. ((3.
A. FINISHED =OODS
Pa&"*0%6a&1 B%a"*"5
In PCS
Va6%2
Rs.
8pen"n# )tock as on 51.15.51& ..6
Man!fact!red d!r"n# th"s month 162.16
Tota+ 5.(3
Used')o+d 1(..25
C+os"n# )tock as on &1:15:51& .0.23
N)"21?
Ra, Mater"a+ cons"sts of <rey Aarn of *ar"o!s *ar"es +"ke (5s Com/ed, &5s
Com/ed, &(s Com/ed, Me+an#e, yarn "n =a/r"cat"on etc.,
Bork "n Pro#ress cons"st of =a/r"cated Aarn "n B+each"n#, B+eached =a/r"c "n
4ye"n#, B+eached and 4yed =a/r"c "n Pr"nt"n#, Pr"nted =a/r"c "n Compact"n#, After
3
Compact"n# pr"nted =a/r"c "n C!tt"n#, st"tch"n#, check"n# and "roned fa/r"c f"na++y
packed "n /o%es for Inspect"on.
="n"shed Prod!cts cons"st of <ents, 9ad"es, Ch"+dren T:)h"rts, N"#ht ,ears,
Py-amas, Ba/y )!"ts.
2. B"f!rcat"on of c+os"n# stock at *ar"o!s +ocat"ons'#odo,ns as dec+ared /y the
/orro,er >"nc+!d"n# #oods +y"n# ,"th the process"n#'o!tstat"on #odo,ns, #oods "n
trans"t, "f any1, Bhere the /orro,er "s ha*"n# d"fferent !n"ts'd"*"s"on, f!rn"sh the
!n"t ,"se 'd"*"s"on ,"se deta"+s a+on# ,"th the"r f!++ addresses of the +ocat"on of
the prem"ses ,here the stocks are he+d.
3. C)''2"1 ) B%a"*"5 4 Va6%2 )3 !))+1C>Here spec"fy the ma-or "tems
,h"ch const"t!te more than .E of tota+ *a+!e of )tocks, "f the n!m/er';ar"ety of
s!ch mater"a+s "s Inn!mera/+e1
Ra, Mater"a+s, BIP and ="n"shed <oods const"t!tes more than .E and d"fferent
co+o!rs, d"fferent s"Fes of a order and same #oes thro!#h the G!a+"ty process and
after f"na+ "nspect"on on+y the #oods are c+eared and hence the G!a+"ty of #oods
are ass!red.
(. H!ant"t"es and Amo!nt of
a. <oods rece"*ed !nder 9'C NI9 NI9
/. <oods rece"*ed !nder B'< NI9 NI9
c. <oods rece"*ed !nder cons"#nment /as"s NI9 NI9
d. Any other stock not pa"d for NI9 NI9
.. Bhether any stock "s rece"*ed for Process"n# >Io/ BorkJ1 NO
If Aes
"1 Bhether the #oods are separate+y acco!ntedJ YES.
""1 Conf"rm that s!ch stocks are not "nc+!ded "n the )tock )tatementJ YES.
0. )tock *er"f"ed >The )tock dec+ared as on &1.15.51& & *er"f"ed /y me'!s on
the /as"s of th"s ,as1
4
9ocat"on ,"se C+os"n# )tock as on 3'11'51&
)+.
No.
4escr"pt"on
P; @n"t
=ash"ons
31 A
Ran#anathap!r
am
In @#s'PC)
N M
B+each"n
#
In @#s
'PC)
PM;
4A$IN
<
MI99
@<)
Amara*at
h"
pa+ayam
Un"t "n
@<'PC)
T8TA9
In
@#s'PC
)
Rate
Rs.
;a+!e
In
Rs.
1 Aarn &&2.2.55 5 6655 5 (&0.2 5 605(.(5
=a/r"c
"1 <rey
""1 4ye
d
1&15.5
3033.5
12...5
55.55
1(&2& .5
2.010
(5.33
3(&5(
55
&5
3112055
062235
& )em" ="n"shed
<oods 5&.5 11.2 &1052 &&& 15..1&1
( ="n"shed <oods 13( 13( &6 .52553
. )tores &
)pares
6.5555
0151..6
NoteC H"#h ;a+!e "tems to /e checked 155E, med"!m and +o, *a+!e "tems to /e
checked .E to .5E on random
K Tota+ *a+!e "nc+!des ,ork "n Pro#ress. Hence Ra, Mater"a+ & ="n"shed <oods
*er"f"ed L H"#h *a+!e of Inp!t Mater"a+s *er"f"ed 155E & =< ready for despatch
*er"f"ed 155E. )tores *er"f"ed random+y depend"n# on *a+!e of "tem. More than
2.E of tota+ *a+!e of RM & )tores *er"f"ed.
0>A1 Methodo+o#y adopted for Phys"ca+ ;er"f"cat"on /y the A!d"tors.
T#2 :)&&)<2& $&)+%02+ a 6*1" )3 *72")&5 "a;2 ) "#2 )$2*! )3 "#2 +a5
a+ "#*1 *1 "a;2 a1 "#2 :a1*1 )3 )%& 0#20;*! )3 1")0;1 ;2$"?
Ra, Mater"a+s +"ke Aarn ,ere kept "n Ba#s. A Ba# conta"ned 05'.5 @#s of yarn "n
packed cond"t"on from the s!pp+"ers ,ere f"rst checked.
=rom Cotton yarn, =a/r"c "s prod!ced "n "nho!se kn"tt"n# !n"ts on+y and stock "s
*er"f"ed on a test checked /as"s on a random+y se+ected !n"ts and 155E of s!ch
stocks he+d at the"r prem"ses ,ere *er"f"ed ,"th 4e+"*ery Notes or"#"nated from
off"ce and sat"sf"ed a/o!t the G!ant"ty and G!a+"ty of =a/r"c he+d.
)tock "n Process cons"st of those "n =a/r"c Prod!ct"on sta#e, "n 4ye"n# Ho!se,
4yed =a/r"c "n C!tt"n# ta/+e')t"tch"n# Ta/+e, )em" f"n"shed #oods +y"n# "n Iron"n#
ta/+e, Pack"n# )ect"on, ="n"shed <oods +y"n# "n factory ,"tho!t Pack"n#, Packed
<oods are random+y check ,"th re#"ster and #oods +y"n# on the process"n# ta/+e.
)tocks +y"n# at 4ye"n# !n"ts are *er"f"ed phys"ca++y, those stock ,ere *er"f"ed ,"th
4e+"*ery Note and <oods Transport records.
5
1. C)''2"1 ) 7a6%2 )3 )6+/):1)62"2 !))+1, )8')7*! 1")0;1 1a621
&2"%&1 a+ C )3 1%0# 1")0;1 ") "#2 ")"a6 1")0;1, *3 a5
Us!a++y ,hen an order "s rece"*ed for say 15555 p"eces the prod!ct"on !n"t #oes
"n for 15&E to 15.E of the prod!ct. $%cess stock prod!ced #ets red!ced after
re-ect"on and dama#es. After comp+et"n# the e%act No. of p"eces reG!"red for
e%port the rema"n"n# #oods are kept "n the stock room. Th"s sma++ G!ant"ty of
f"n"shed #oods are +ater d"sposed. The c+os"n# stock a+so "nc+!des th"s. )"m"+ar+y
stock of yarn "nc+!des stock of yarn, ,h"ch ,as kept after samp+"n# has /een
done for f!t!re orders'des"#n. The /orro,er has fo!nd a no*e+ ,ay of d"spos"n#
off e%cess prod!ced #arment and after mak"n# sma++ repack"n# ,ork, the stocks
,ere d"sposed off to +oca+ /!yers for a /etter pr"ce. And hence ded!ct"on on
acco!nt of o+d & o/so+ete #oods d"d not ar"se.
. As per "nformat"on #athered and to the /est of o!r kno,+ed#e, the fo++o,"n#
stocks to /e f!rther e%c+!ded from the stock dec+ared a/o*e. >Th"s sha++ "nc+!de
o+d'o/so+ete and s+o, mo*"n# #oods, #oods "n trans"t, #oods rece"*ed from
others for process"n# ' -o/ ,ork, #oods /e+on#"n# to s"ster concerns etc.1
DA')%" 3)& 2(06%1*)E
4escr"pt"on H!ant"ty ;a+!e >Rs.
"n +akhs1
Reasons for e%c+!s"on
T)"a6 .2. k#sMM 1.2/ @ept !nder c!tt"n# ta/+e and on
c!p/oard
FF B%a"*"5 21"*'a"2+ +%2 ") ) a7a*6a:*6*"5 )3 1")0; &2!*1"2&
6
C. SYSTEMS OF INVENTORY CONTROL?
a. 8/ser*at"on on the G!a+"ty of
stock.
>To "nc+!de method of stora#e,
safety and sec!r"ty protect"on
from ra"n, s!n, mo"st!re, d!st,
p"+fera#e etc.1
M2"#)+ )3 S")&a!2 ?
S")&2+ * Fa0")&5, =)+)< 4 * 06)12+
&))' 0)+*"*)1.
Sa32"5?
H"#h+y )afe
S20%&*"5 P&)"20"*)?
)ec!red /y 8,n )ec!r"ty A#ency $mp+oyed at
the 8ff"ce, =actory Prem"ses. A++ the #oods
mo*e o!t on+y ,"th spec"f"c de+"*ery cha++ans.
=!rther the fa/r"cs sent to dye"n# !n"t on+y "n
Company *eh"c+es and are de+"*ered to the
st"tch"n# p+aces "n CompanyNs o,n transport
and from there to the Pr"nt"n#, etc "n
CompanyNs o,n ;eh"c+e and hence chance of
p"+fera#e "s *ery +o,.
/. 8/ser*at"on on market
cond"t"on, demand's!pp+y
pos"t"on, f!t!re prospects,
market"n# arran#ements,
marketa/"+"ty'sa+ea/"+"ty of the
stock.
Ma&;2" C)+*"*)?
$%ports orders are rece"*ed on+y after
samp+"n# done to the sat"sfact"on of the
/!yers. 4!e to econom"c recess"on e%ports
orders are rece"*ed after d!e care and after
st!dy"n# the cred"t ,orth"ness of the /!yers.
$%port potent"a+ are a*a"+a/+e from U.@. $ast
As"a,U.).A., and other parts of the co!ntry.
D2'a+ 4 S%$$65 P)1*"*)?
<ood demand for <arments from Ind"a.
)!pp+y of Ra, mater"a+s for <arment
man!fact!r"n# "s eas"+y a*a"+a/+e. B!t d!e to
e%port of cotton and yarn, yarn pr"ce "s
"ncreased many fo+d, there "s h"#h *o+at"+"ty "n
pr"ce of yarn
F%"%&2 P&)1$20"1? B&*!#"
Ma&;2"*! A&&a!2'2"1?
4"rect market"n# so far const"t!ted a/o!t 2.E
of the order pos"t"on. Thro!#h /!y"n# ho!ses'
a#ents a/+e to se++ a/o!t .E. Th"s ,"++
cont"n!e.
Ma&;2"a:*6*"5 4 Sa62a:*6*"5 )3 "#2 S")0;?
<enera++y the #oods made are spec"f"c to the
reG!"rement of /!yers and they are made to
order. Ho,e*er these #oods can /e so+d
+oca++y "f there "s a re-ect"on from /!yer at a
prof"ta/+e pr"ce.
c. Bhether cons!mpt"on of Ra,
Mater"a+ "s commens!rate ,"th YES
7
prod!ct"on act"*"ty and other
prod!ct"on e%penses.
d. 8/ser*at"on re#ard"n# the
mo*ement of stock and ho+d"n#
+e*e+ of ra, mater"a+s, Bork "n
process and f"n"shed #oods.
PC9 "s dra,n /ased on the 8rders "n hand.
Hence stock ho+d"n# +e*e+ of Ra, Mater"a+,
Bork "n Process and ="n"shed <oods are "n +"ne
,"th orders and are commens!rate ,"th the
nat!re of ,ork and order.
e. Comments on ho+d"n# +e*e+ of
"n*entory /y the /orro,er
company *"s:O:*"s the "nd!stry.
NEED BASED HOLDIN= LEVEL ONLY
f. R"sk percept"on and
s!##est"ons for r"sk
mana#ement
The on+y r"sk percept"on en*"sa#ed areC
4e+ay "n prod!ct"on can +ead to
sh"pment /y a"r that ,"++ red!ce the
prof"t mar#"n.
H!a+"ty c+a"m from the /!yer d!e to
*ar"o!s man!fact!r"n# defects that the
/orro,er co!+d m"n"m"se.
Aarn pr"ce *o+at"+"ty eats the p+anned
prof"t mar#"n
Po++!t"on Contro+ norms "n r!nn"n# the
Process"n# !n"t
)e*ere +a/o!r short pre*a"+"n# "n the
recent per"od.
)!##est"ons for R"sk Mana#ementC
$ffect"*e !t"+"sat"on of )AP and
"mpro*ement process cont"n!o!s+y and
red!ce stock +e*e+s.
Impro*e the G!a+"ty ass!rance peop+eNs
report"n#
Impro*ement "n /!y"n# G!a+"ty.
Arran#ement for cont"n!o!s s!pp+y of
yarn at standard pr"ce.
Comp+"ance ,"th TNPCB norms to r!n
the process"n# !n"t ,"tho!t "nterr!pt"on.
Ma"nta"n"n# "nte#rated mo*ement
re#"ster for a++ stocks /y means of
"ntrod!ct"on of )AP ,"++ red!ce r"sk of
m"shand+"n# of stocks.
@eep"n# e%per"enced +a/o!rs at
reasona/+e ,a#e str!ct!re
#. Comments on "n*entory contro+
and mana#ement system "n
*o#!e, Comments re#ard"n#
ma"ntenance of Books of
acco!nts, B"n cards, and
proced!re adopted for
dep+oyment of stocks
>=I=8'9I=81, ;a+!at"on of stock
"n process and f"n"shed #oods.
No "nte#rated stock mo*ement re#"ster
ma"nta"ned. 8n+y de+"*ery note and
rece"pts note ma"nta"ned "s not
s!ff"c"ent to arr"*e stock on hand at a
date.
8perat"n# factor"es !nder d"fferent
+ocat"on ,"th d"fferent factory mana#er
+eads to d"fference of op"n"on and
conf!s"on "n hand+"n# orders.
Proper Books of Acco!nt and B"n Card
ma"nta"ned.
8
)tocks are dep+oyed on =I=8 Bas"s and
most of the stocks are /ased on /!yers
order.
;a+!at"on of )tocks are /ased onC
At Cost or Net rea+"sa/+e *a+!e ,h"ch
e*er "s +east.
h. Br"ef comments on descr"pt"on
of prod!ct"on act"*"ty, ,hether
there ,ere any spec"a+ e*ents
+"ke, /reak:do,n "n prod!ct"on
act"*"ty, +oss of mater"a+s and
other re+e*ant "ss!es, ,h"ch
are re+e*ant to the f"nanc"n#
/ank
Prod!ct"on #o"n# smooth+y ,"tho!t any
spec"a+ e*ents s!ch as str"ke, +ocko!t, /reak
do,n "n prod!ct"on act"*"ty, +oss of mater"a+s
and other re+e*ant "ss!es
I =!rn"sh the stat!s of
reconc"+"at"on /et,eenC
a1 <ro!nd /a+ances and /ook
/a+ances
Ta66*2+
/1. <ro!nd /a+ances and +atest
stock statement
Ta66*2+
DMaG)& *"2'1 )3 +*332&202 1#)%6+ :2 1$20*3*2+ a+ 0)''2"2+ :5 "#2 A%+*")&E
N)"2? A 0)3*&'a"*) 1#a66 :2 !*72 :5 "#2 a%+*")& "#a" #2 #a+ ):"a*2+ a
02&"*3*0a"2 3&)' "#2 'aa!2'2" ") "#2 23320" "#a" HA66 !))+1 *06%+2+ *
"#2 *72")&5 *1 "#2 $&)$2&"5 )3 "#2 2"*"5 a+ ) )3 "#2' a&2 #26+ a1
0)1*!22 )3 )"#2&1, :a*6221 a+ 2(02$" a1 12" )%" :26)<, )2 )3 "#2
!))+1 a&2 1%:G20" ") a5 0#a&!2. >2 3%&"#2& 1"a"2 "#a" "#2 *72")&*21 +)
)" *06%+2 !))+1 1)6+ ") 0%1")'2&1 3)& <#)' +26*72&5 *1 52" ") :2
'a+2.I J Confirmation Obtained K
D. METHOD OF COSTIN= OF RA> MATERIALS, >ORK IN PROCESS AND
FINISHED =OODS?
1. Comment on *a+!at"on method adopted /y the company. ;a+!at"on "s done on the
/as"s appropr"ate to /!s"ness carr"ed on /y the company App+"ca/+e acco!nt"n#
standards are fo++o,ed. Acco!nt"n# standards fo++o,ed sho!+d /e spec"f"ed.
Ra< Ma"2&*a6, S")0; * P&)!&211 a+ F**1#2+ !))+1 a&2 Va6%2+ a" C)1" OR N2"
&2a6*1a:62 7a6%2 <#*0# 272& *1 6)<2& a+ 3)66)<2+ 0)1*1"2"65 272&5 52a& )
"#2 1a'2 '2"#)+.
. A conf"rmat"on /y the a!d"tor to the effect that PThe /as"s'/ases of *a+!at"on "s'are
the same as that'those !sed "n the pre*"o!s year e%cept as set o!t /e+o,C
C+ass of "n*entory Bas"s of *a+!at"on $ffect of chan#e "n
the /as"s of *a+!at"on
Th"s year Pre*"o!s year
88888NIL88888
9
E. 1. PLANT LAYOUT AND PLANT MAINTENANCE
DHere comment on f!nct"on"n# of p+ant and
mach"nery, capac"ty !t"+"sat"on, Bhether any
mach"ne "s +y"n# "d+e for +on#, Ma"ntenance of
the mach"ner"es1
P+ant & Mach"nery are f!nct"on"n#
smooth+y ,"th opt"m!m +e*e+ of
capac"ty, no "d+e mach"ne
o/ser*ed,
Mach"nery are ma"nta"ned "n
r!nn"n# cond"t"ons.
2. INSURANCE COVERA=E? C#)6a'a+a6a' MS =22&a6 I1%&a02 C)'$a5
L"+
a. Bhether the #oods are f!++y "ns!red for
a++ the "nd!stry spec"f"c r"sks
Y21
/. $%tent of "ns!rance co*er a*a"+a/+e R1.-00 La;#1
c. Bhether the po+"c"es are "n force Y21
d. Bhether BankerNs C+a!se "nc+!ded "n the
po+"cy
Y21
e. Bhether add"t"ona+ r"sks +"ke r"ots'str"ke,
e+ectr"ca+, theft etc. are "nc+!ded "n the
po+"cy
Bhether any r"sk "s e%c+!dedQ "f so,
spec"fy the reason
No
Aes, str"ke, r"ots, theft r"sks
are not co*ered "n the po+"cy
f. 9ocat"on of #oods proper+y stated "n the
po+"cy ,"th 4.No')!r*ey No., M!n"c"pa+
No etc.
Y21
#. <oods sent to the process"n# !n"ts' s!/
contractor ,hether "ns!red 'trans"t
"ns!rance o/ta"ned.
Y21
h. Bhether any +ocat"on ' <odo,n not
co*ered "n the "ns!rance
NO

PARTICULARS OF INSURANCE HELD?
S&.N
).
Pa&"*0%6a&1
A')%" DI
La;#1E
I>a1
B!"+d"n# The Ne, Ind"a
Ass!rance Co.,
9td, TIRUPUR
1..55 Terror"sm
co*er e%c+!ded
)tocks "n Process 055.55
P+ant & Mach"nery 1(.55
$+ectr"ca+ ="tt"n#s 3.55
=!rn"t!re & ="tt"n#s
10
Tota+ *a+!e of Ins!rance 320.55
F. BUALITY CONTROL?
>Comment on G!a+"ty contro+
meas!res +"ke G!a+"ty a!d"t >I)8
A!d"t1,
*E ISOA001?2008 B%a6*"5 0)"&)6
C2&"*3*0a"2 ):"a*2+
**E SA8000?2008 ):"a*2+ 3)& "#2
1)0*a6 A00)%"a:*6*"5 151"2'
Interna+ G!a+"ty "mpro*ement
process, R&4 or"entat"on1
N) R4 D 21"a:6*1#2+ ") 6)); a3"2&
L%a6*"5 0)"&)6
DATA / RECORDS MAINTENANCE?
a.. Bhether proper /ooks ' records
ma"nta"ned
YES
/. Any G!a+"fy"n# comments of the
stat!tory a!d"tors of the
company re#ard"n# ma"ntenance
of Books of acco!nts and
Acco!nt"n# po+"cy adopted /y the
Borro,er.
T#2 C)'$a51 S"a"%")&5 A%+*")&1
L%a6*3*2+ ) Ma*"2a02 )3 S")0;
R2!*1"2&. O65 C6)1*! I72")&5 *1
"a;2 a+ 02&"*3*2+ :5
Maa!2'2". H)<272& <2 #a72
&26*2+ ) C)'$%"2& P&*")%"1 )3
1")0;1 #26+ :5 "#2 :)&&)<2& a+ <2
0)%6+ )" 6)0a"2 a5 1#)&"3a66 )&
2(0211 * L%a"*"5 )& 7a6%2.
c. If the data "s stored "n the
comp!ter system, the safety
feat!res' meas!res "n force to
pre*ent any man"p!+at"*e
correct"ons'chan#es to /e
commented !pon.
The data stored in Computer are safely
backed up by a system in house team
who takes regular back ups to prevent
any manipulative corrections. The
unit is ably supported by a Internal
Audit team (in house) headed by a
Chartered Accountant.
11
H. VALUATION OF SUNDRY DEBTORS /BOOK DEBTS , NOT APPLICABLE
I.DRA>IN= PO>ER CALCULATIONS?
1. >Comment on Bhether the dra,"n# po,er "s comp!ted as per the norms >#"*en
/e+o,1 ad*"sed /y the /ankC Bhether there "s any d"fference "n Comp!tat"on of
4P1
COMPUTATION OF DRA>IN= PO>ER IN CASH CREDIT HYPOTHECATION LIMIT
A=AINST COMBINED SECURITY OF STOCK AND BOOK DEBTS?
Tota+ )tock >Net of o/so+ete' Non Mo*"n#')+o, Mo*"n# )tocks1 A 1 -10./@
9essC Cred"tors for P!rchases >Inc+!d"n# )tocks Proc!red !nder
Usance 9Cs' Co Acceptance ' Bank <!arantees & rema"n"n# !npa"d A 2
1.5
Ad*ance for P!rchases NI9
M Pa"d )tock ".e. > A & R A 1 L A 1 A 3 @A8.@@
9ess C Prescr"/ed Mar#"n .E A . 1.A.-.
DP a!a*1" S")0;1 *.2. I M A 3 , A . I ..8.A1
PC9 9IABI9ITA BITH C8RP8RATI8N BAN@ Rs.(&(.. 9akhs
T8TA9 PC9 9IABI9ITA Rs.(&(.. 9akhs
$%cess "n 4ra,"n# Po,er "n PC9 as on Rs. 1(.&6 9akhs
12
=22&a6 C#20; L*1"
1. Bhether the t!rno*er "n the acco!nt "s /r"sk, compara/+e ,"th the
past +e*e+' operat"n# +e*e+s.
Y21
. Bhether sa+e proceeds are ro!ted >"f not ro!ted, the reasons are to
/e enG!"red and commented "n the report1
Y21
&. Bhether p!rchase comm"tment "s met /y "ss!e of cheG!es on CC'CA 521
(. Bhether the /orro,er ho+ds stock rece"*ed for
process"n# >-o/ ,ork1 and they are
separate+y stored. If so, ,hether "t "s
dec+ared and ded!cted from the tota+
stock.
Y21
.. Bhether stock t!rno*er "s sat"sfactory. 521
0. Bhether /orro,ers record ma"ntenance of stock records and
acco!nt"n# "s sat"sfactory. Bhether there any def"c"enc"es
N)
2. Bhether random phys"ca+ "nspect"on no, cond!cted represent a
correct pos"t"on of the ent"re ,ork.
521
3. Bhether BankNs hypothecat"on /oard "s d"sp+ayed 521
6. Bhether stocks are proper+y stored. 521
15. Bhether deta"+s of stocks, as per )tock Re#"ster and )tock
)tatement ta++y
Bhether *a+!e of stock dec+ared "n the )tock )tatement ta++"es ,"th
)tock dec+ared "n the Ba+ance sheet
NA
521
11. Bhether the Ins!rance co*er "s adeG!ate 521
1. Bhether p!rchase' sa+e "n*o"ces are *er"f"ed.
Bhether *a+!at"on of p!rchases "s correct
521
1&. Bhether there are any p!rchase from )"ster Concerns N)
1(. Bhether there are any cash p!rchases
Bhether s!ch p!rchases are proport"onate
no
1..Bhether the +e*e+ of s!ndry Cred"tors "s commens!rate ,"th
past trend
A#e"n# of Cred"tors >P+ease #"*e amo!nt of Cred"t o!tstand"n#
/a+ance of more than 1 year
Aes
Be+o, 1 year
10.Bhether Creat"on of Char#e on )tocks' Book 4e/ts has /een
done
Y21
12. Any other o/ser*at"ons on L
a1 ;er"f"cat"on of "n*o"ces
I"2!&a"2+ S")0; R2!*1"2&
") :2 'a*"a*2+
/1 Phys"ca+ *er"f"cat"on of stock
c1 )tock he+d ,"th Processors' -o/ ,orks or
o!tstat"on #odo,ns.
d1 8+d, o/so+ete, non:mo*"n# stock R20)&+1 ") :2 'a*"a*2+
e1 Ad*erse feat!res, "f any re#ard"n# 4ra,"n#
Po,er >4.P.1
NIL
P+aceC T"r!p!r
4ateC 5.'1'51&
=or CA. R. Ras"appan

Chartered Acco!ntant
13