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Devesh Case Study

Devesh Case Study

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Published by gautamahuja

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Published by: gautamahuja on Jul 17, 2012
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Assignment No. 4
Submitted by:-AKHIL AHOOJA1
Case Study 1 : Devesh Sharma
Devesh Sharma completed his post graduation from IIM A. He was appointed as a CostAccountant in ABC Engineering Works, Delhi with a salary of Rs 49000 p.m. Hisimmediate boss was Chief Accountant (CA).Other higher bosses were DGM and GMequally powerful. The firm is basically heavy engineering fabricators and specialists inmanufacturing machinery for sugar and cement industry. They also accept orders for other types os casting, machining and fabrication jobs provided such jobs are sufficientlylarge. The workshop is located on the outskirts of Delhi. The factory is divided into three parts: a foundry, a machine shop, and a fabrication shop. Many parts for sugar and cementindustry have to go through all the departments, generally in the same order in which they arelisted above. Most of the orders received are either single job orders or batches of similar joborders. He was remarked by the chief accountant that he should not get over enthusiastic, better off to suggest your ideas rather try force the pace. He spent two weeks in the plant.Time being the GM and DGM came back after signing a collaboration agreement with aGerman firm set up a paper machinery manufacturing plant.DGM asked him to be intouch on every endeavor and gave him a assignment for two days to be studied and thefactual report on that. He submitted the detail report to DGM, gave a copy to the CA. Neither of them called him to discuss the report.Then he was asked by CA to spend the next months as a staff assistant to him. Every year the company used to take the book balances as per the stores accounts for income2
statement. DGM called the CA and Devesh , suggested we have a physical verification thisyear and assigned the full responsibility to Devesh . He also sent a note to all productiondepartmental heads and the Stores Superintendent to furnish all necessary assistance toDevesh in this regard. Stock verification was completed. Found large discrepancies between physical stocks and ‘book stocks’. Started investigating the reasons for thediscrepancy. He was satisfied with the security arrangements. Ruled out the possibility of that by outside parties. He accidentally found some old used stores indents lying in the backyard of the stores. They were not the indenter’s copy (Indenter’s copy is in buff paper and the original copy is in a fairly thick paper of blue colour.) could not make out thecontent or the department to which they belonged. All the entries had faded. Discussed this problem with the CA. He wondered as to what they could do about it. They did not have proper storing arrangements for all the materials. Again, he prepared a report and submittedto DGM with a copy to CA. Similarily, this time he didn’t receive any responseThe ‘labour booking systemDevesh suggested was basically meant to facilitate theascertainment of the time spent on various jobs by the workers. Since the CA told himabout the DGM’s reluctance to recruit more men for establishing a separate Cost AccountsSection, he suggested that the plant superintendents can utilize their existing assistants tocompile the necessary data from the daily job cards and send a weekly return to the CostAccounts Section. On this he again prepared a report submitted it to DGM with copy toCA. Similarly, there was no action.He again prepared a note as discussed by Mr. Roy (Chief Metallurgist, Foundry) tointroduce a ‘production reporting system’ in the foundry and submitted it to the CA withcopies to the DGM and the Foundry Superintendent. Again no response was received.3

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