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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 BY
SHAHIR GULAB MUZAWAR
M.COM PART-II (SEM-III)
ROLL NO 4
2014-2015

UNDER THE GUIDANCE OF


PROF. MEETA KARANGIA

LORD UNIVERSAL COLLEGE,


TOPIWALA MARG, OFF STATION ROAD,

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GOREGAON (WEST), MUMBAI, 400062

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 20142015.This information is true &original to best of my knowledge

Date:

student

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signature of

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:

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signature of student

CONTENTS

INTRODUCTION --------------------------------------------------------------------- 05
IMPORTANCE, ADVANTAGES, DISADVANTAGES AND
LIMITATIONS 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 AUDITING
The 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 AND


LIMITATIONS 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 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.

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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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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 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
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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 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 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.

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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.
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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 the
company, noticed or reported during the year, nor have we been
informed of such case by the Management.

ATTAR GLOBAL LTDLimited - 2013-14


SUNDRY CREDITORS
Ledger Aunt
1-Apr-2013 to 31-Mar-2014
Page 1

Date

Particulars

1-4-2013 By Opening Balance


2-4-2013 ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
3-5-2013 ByPur Aluminium Foil ( Local ) Net 5%
7-5-2013 ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ToCorporation Bank - CC - 6 000 6
ByDiscount Allowed
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
ByPur Aluminium Foil ( Local ) Net 5%
2-8-2013 ToCorporation Bank - CC - 6 000 6
7-8-2013 ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ToCorporation Bank - CC - 6 000 6
ByPur Aluminium Foil ( Local ) Net 5%
ToCorporation Bank - CC - 6 000 6

Vch Type

Vch No.

Debit

Payment
Payment
Purchase
Purchase
Payment
Payment
Purchase
Payment
Payment

9
175
447100486
13000729
220
394
13001374
604
621

6,84,363.00
8,06,834.93

Purchase

13001687

Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Payment
Journal
Payment
Payment
Purchase
Payment
Payment
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Payment

13001688
13001859
13001893
13001994
13002022
13002046
13002047
812

Credit
18,86,645.71

Payment
Payment
Payment
Payment
Purchase
Payment

6,40,721.97
6,87,039.97
8,24,327.93
26,907.50
10,88,283.00
6,40,721.97
6,87,039.97
4,65,732.98
4,30,011.55
6,72,031.97
4,15,720.98
12,46,500.92
16,86,778.93
7,80,984.96
1,80,611.01
10,88,283.00
17,067.00

859
860
13002415
876
898
899
13002622
13002623
13002796
13002802
13002804
947
973
1034
1039
1040
13003340
1056

17,067.00
4,65,732.98
17,34,162.92
4,30,011.55
6,72,031.97
4,15,720.98
2,06,470.25
13,26,137.01
10,05,886.95
1,36,366.99
11,20,686.97
12,46,500.92
10,00,000.00
6,86,778.93
7,80,984.96
13,801.81
1,52,242.99
17,34,218.92

26 | P a g e
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
6-9-2013 To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6

Purchase
Purchase
Purchase
Purchase
Purchase

11,30,176.95
13,53,907.00
10,28,381.00
4,84,102.97
12,34,416.00

13003533
13003573
13003586
13003743
13003744

Payment

1118

Payment
Payment

1119
1164

2,06,970.25
13,26,137.01
1,36,366.95

To Corporation Bank - CC - 6 000 6


To Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
Carried Over
... continued
ATTAR GLOBAL LTDLimited - 2013-14
Hindalco Industries Ltd - Nagpur Div Ledger Account :
Date
Particulars
Brought Forward
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Aluminium Foil ( Oms )-Net 2%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Pur Aluminium Foil ( Local ) Net 5%
To Pur Aluminium Foil ( Local ) Net 5%
To Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6

Payment
Debit Note
Purchase

1165
D/N
13004184

1-Apr-2013 to 31-Mar-2014
Vch Type Vch No.
Purchase
Payment
Debit Note
Purchase
Purchase
Payment
Payment
Payment
Payment
Debit Note
Payment
Payment
Payment
Payment
Payment
Payment
Payment
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Debit Note
Debit Note
Debit Note
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Payment

13004185
1216
360
13004547
13004545
1262
1266
1329
1357
D/N
1412
1431
1448
1449
1489
1523
1534
1535
13006135
13006132
13006142
13006134
13006237
13006236
13006235
13006234
D/N
D/N
D/N
1723
13006847
13006901
13006900
13006942
13007015
1829

Payment

1830

Payment

1831

10,05,886.75
1,55,325.00
8,94,687.12
1,50,52,014.28 2,20,05,756.07

Debit

Page 2
Credit

1,50,52,014.28 2,20,05,756.07
4,79,747.98
11,20,686.97
2,58,472.00
13,90,969.82
4,31,619.62
1,52,243.08
11,30,232.95
4,82,102.97
7,69,909.00
3,87,127.00
8,47,289.00
13,53,907.05
4,79,747.98
2,000.00
6,21,217.12
4,31,619.62
5,00,000.00
8,90,969.82
2,86,592.80
4,68,636.18
5,33,690.00
2,06,169.20
2,95,889.79
8,86,117.40
2,01,287.60
8,49,743.77
65,815.00
1,66,809.00
2,73,470.00
4,65,170.00
16,01,789.00
4,64,384.00
12,30,367.00
14,22,569.00
13,67,547.00
4,68,636.18
2,06,169.20
2,86,592.80

27 | P a g e

To Corporation Bank - CC - 6 000 6


To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6

Payment
Payment
Payment
Purchase
Purchase
Payment

1860
1861
1862
13007915
13007958
1902

2,95,917.79
2,01,287.60
8,49,743.77

14,05,683.
8,09,284.
6,86,173.40

By Pur Aluminium Foil ( Local ) Net 5%


To Corporation Bank - CC - 6 000 6
1-2-2014 To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
Carried Over

Purchase
Payment

13008092
1909

Payment

1937

Payment

1938

14,22,946.
16,01,789.00
72,997.63
2,00,000.00
3,03,20,110.21 3,77,60,790.2

... continued
ATTAR GLOBAL LTDLimited - 2013-14
Date

Particulars

Brought Forward
6-2-2014 To Corporation Bank - CC - 6 000 6
To Write Of
8-2-2014 To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
5-3-2014 By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
6-3-2014 To Corporation Bank - CC - 6 000 6
8-3-2014 To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
By Pur Aluminium Foil ( Local ) Net 5%
To Corporation Bank - CC - 6 000 6
To Aluminium Foil ( Oms )-Net 2%

Vch Type

Vch No.

Payment
Journal
Payment
Purchase
Purchase
Payment
Payment
Debit Note
Payment
Payment
Purchase
Purchase
Purchase
Payment

1968
13008346
13008345
2013
2014
D/N
2023
2024
13008653
13008652
13008709
2051

Purchase

13008834

Purchase
Purchase
Payment
Purchase
Purchase
Payment
Payment
Purchase
Purchase
Payment
Payment
Payment
Payment
Payment
Payment
Purchase
Purchase
Payment

13009028
13009026
2054
13009056
447107802
2092
2106
447107960
447107966
2144
2157
2166
2173
2193
2195
447108367
13009688
2226

Debit Note

1959

D/N

Debit

Page 3
Credit

3,03,20,110.21 3,77,60,790.20
10,55,982.00
1,74,385.00
4,64,383.98
13,10,738.15
13,45,019.25
13,67,547.00
10,00,000.00
1,74,385.00
4,22,569.00
14,659.40
1,02,152.00
4,69,348.97
15,67,962.00
14,05,683.00
4,57,620.37
15,71,643.92
7,74,472.96
8,09,284.97
6,84,175.07
10,68,912.00
10,00,000.00
4,22,946.00
9,42,682.97
9,14,629.97
13,10,738.15
2,50,000.00
7,95,019.25
3,00,000.00
4,69,348.97
15,67,962.00
2,35,322.98
8,27,377.40
13,34,245.33
21,469.00
4,46,80,718.26 5,00,32,848.21

To

28 | P a g e

Closing Balance

53,52,129.95
5,00,32,848.21 5,00,32,848.21

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
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 thata. 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 Global
SUNDRY DEBITOR
1-Apr-2013 to 31-Mar-2014
Page 1

Date

Particulars

1-4-2013 To Opening Balance


1-4-2013 ByExcise Refund Receivable
ToLocal Sales ( FoH )
ToLocal Sales ( FoH )
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ToLocal Sales ( FoH )
ToLocal Sales ( FoH )
ToLocal Sales ( FoH )
ToCylinder Making Charges
4-5-2013 ByCorporation Bank - CC - 6 000 6
ToCylinder Making Charges
ToLocal Sales ( FoH )
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ToCylinder Making Charges
ToLocal Sales ( FoH )
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ToLocal Sales ( FoH )
ToLocal Sales ( FoH )
ByCorporation Bank - CC - 6 000 6
ByCorporation Bank - CC - 6 000 6
ToCylinder Making Charges
4-7-2013 ByCorporation Bank - CC - 6 000 6
ToLocal Sales ( FoH )
6-7-2013 ByCorporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sales ( FoH )
To Local Sales ( FoH )
To Local Sales ( FoH )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
3-8-2013 By Corporation Bank - CC - 6 000 6
6-8-2013 To Local Sales ( FoH )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sales ( FoH )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sales ( FoH )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6

Vch Type

Vch No.

Debit

Credit

6,66,784.00
35,600.00

Journal
Sales
Sales
Receipt
Receipt
Sales
Sales
Sales
Debit Note

28
29
65
66
64
65
66

Receipt

81

Debit Note
Sales
Receipt
Receipt
Receipt
Receipt
Receipt
Debit Note
Sales
Receipt
Receipt
Sales
Sales
Receipt
Receipt
Debit Note
Receipt
Sales
Receipt

96
107
111
131
142
144
143
179
186
177
178
191
199

1,02,414.00
9,21,912.00
2,00,000.00
65,785.00
1,02,799.00
7,66,727.00
62,824.00
7,250.00
2,81,435.00
11,250.00
2,73,330.00
2,00,000.00
2,00,000.00
2,00,000.00
2,00,000.00
2,24,326.00
20,250.00
2,23,270.00
1,02,799.00
62,824.00
14,29,238.00
3,82,200.00
4,00,000.00
3,66,727.00
9,000.00

243
227

1,00,000.00
8,90,127.00
1,73,330.00

247

Receipt
Receipt

258
266

Sales

251

Sales
Sales
Receipt
Receipt
Receipt
Sales
Receipt
Receipt
Sales
Receipt

252
253
291
299
309
287
325
331
307
335

Receipt

341

Receipt
Sales
Receipt
Receipt

351
319
417
425

1,00,000.00
1,23,270.00
1,98,266.00
27,930.00
7,71,466.00
10,00,000.00
4,29,238.00
3,82,200.00
6,12,620.00
5,00,000.00
3,90,127.00
11,99,227.00
27,930.00
4,00,000.00
3,71,466.00
7,49,730.00
1,98,266.00
6,12,620.00

To Cylinder Making Charges


Carried Over
... continued
ATTAR GLOBAL LTDLimited - 2013-14
Attar Global Ledger Aunt : 1-Apr-2013 to 31-Mar-2014
Date
Particulars
Brought Forward
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sales ( Form H )
To Local Sales ( Form H )
To Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Cylinder Making Charges
To Cylinder Making Charges
By Corporation Bank - CC - 6 000 6
To Local Sales ( Form H )
To Cylinder Making Charges
To Cylinder Making Charges
To Local Sales ( Form H )
To Cylinder Making Charges
To Cylinder Making Charges
By Corporation Bank - CC - 6 000 6
To Local Sale ( Fo- H )-Excise Rebate
To Local Sale ( Fo- H )-Excise Rebate
By Corporation Bank - CC - 6 000 6
To Local Sales ( Form H )
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6
To Local Sales ( Form H )
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Cylinder Making Charges
By Corporation Bank - CC - 6 000 6

Debit Note

Vch Type
Sales
Receipt
Receipt
Sales
Sales
Payment
Receipt
Debit Note
Debit Note
Receipt
Sales
Debit Note
Debit Note
Sales

Vch No.
371
447
455
391
392
1315
458

27,000.00
94,55,614.00

73,47,943.00

Debit

Page 2
Credit

94,55,614.00
2,50,641.00

73,47,943.00
5,99,227.00
6,00,000.00

1,96,940.00
4,03,211.00
6,00,000.00
6,00,000.00
15,000.00
27,000.00

486
446
004
452

Debit Note

7,49,730.00
6,27,569.00
14,000.00
2,250.00
11,16,750.00
9,000.00
7,250.00

Debit Note
Receipt
Sales
Sales
Receipt
Sales
Sales
Receipt
Sales
Sales
Receipt
Receipt
Receipt
Debit Note

563
498
499
574
506
507
585
519
520
600
601
607

Receipt

624

5,00,000.00

Receipt
Receipt
Debit Note
Receipt
Receipt
Receipt

627
638

4,00,000.00
6,16,750.00

Receipt

701

Sales
Receipt
Receipt
Receipt
Sales
Sales
Debit Note
Debit Note
Sales

627
722
725
756
672
673

Receipt

815

Receipt

831

1,96,940.00
1,79,722.00
9,92,429.00
2,03,211.00
2,26,788.00
6,71,305.00
2,00,000.00
2,75,588.00
62,498.00
2,50,641.00
3,27,569.00
3,00,000.00
2,250.00

31 | P a g e

3-1-2014
6-1-2014

2-2-2014
6-2-2014

By Corporation Bank - CC - 6 000 6


By Corporation Bank - CC - 6 000 6
To Cylinder Making Charges
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sale ( Fo- H )-Excise Rebate
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Local Sales ( Form H )
To Local Sales ( Form H )
To Cylinder Making Charges
To Cylinder Making Charges
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
Carried Over

5,000.00
2,26,788.00
2,71,305.00
3,00,000.00
3,00,000.00

662
673
694

712

1,84,552.00
1,59,952.00
2,83,258.00
2,75,588.00
69,878.00
6,29,820.00
9,000.00
4,500.00
2,97,393.00
1,84,552.00
62,498.00
1,63,35,948.00 1,49,55,952.00

... continued
ATTAR GLOBAL LTDLimited - 2013-14

Attar Global Ledger Aunt : 1-Apr-2013 to 31-Mar-2014


Date
Particulars
Brought Forward
3-3-2014By Corporation Bank - CC - 6 000 6
By Corporation Bank - CC - 6 000 6
To Cylinder Making Charges
To Local Sales ( Form H )
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6

Vch Type

Vch No.

Receipt
Receipt
Debit Note
Sales
Sales

839
840

Receipt

894

808
809

Debit

Page 3
Credit

1,63,35,948.00 1,49,55,952.00
6,29,820.00
69,878.00
4,500.00
1,44,594.00
4,75,996.00
2,97,393.00
1,69,61,038.00 1,59,53,043.00

By

32 |

Closing Balance

10,07,995.00
1,69,61,038.00 1,69,61,038.00

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
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 thata. 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 TIMES
2)WIKIPEDIA