Académique Documents
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AUDIT
SUMBITTED BY
SHAHIR GULAB MUZAWAR
M.COM PART-II (SEM-III)
ROLL NO 4
2014-2015
1|Page
DECLARATION
Date:
student
2|Page
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:
3|Page
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
4|Page
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
5|Page
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
6|Page
DEFINITION
The term auditing has been defined by different authorities.
1.
2.
9|Page
10 | P a g e
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
11 | P a g e
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.
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.
13 | P a g e
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.
14 | P a g e
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
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.
15 | P a g e
Suggestions
for
7 Facilitates taxation
improvement
8. Useful for agency
understand the financial position of the business and also it will help the
16 | P a g e
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
3.
17 | P a g e
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
LIMITATIONS OF AUDITING
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.
19 | P a g e
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
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.
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 the
company, noticed or reported during the year, nor have we been
informed of such case by the Management.
Date
Particulars
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
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
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
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
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)
Date
Particulars
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
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
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
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
36 | P a g e
Bibliography
1)ECONOMICS TIMES
2)WIKIPEDIA