Arunachala Logistics Private Limited

Internal Audit Report for the Quarter July 2018 to September 2018

7.Statutory Compliances

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Statutory Compliances- Acts Covered
We have broadly reviewed compliance with the following:

• Employees Provident Fund Act 1952

• Employee State Insurance Act
• Professional Tax
• Goods and Services Tax
• Income Tax Act 1961

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.1 Remittance of Provident Fund HIGH MED LOW

Key Observations

• As per PF and Misc. Provisions Act, the employer shall pay the PF contributions within 15 days from the last day of the calendar month in
which the contributions fall due.
• It is observed that Employee contribution is excess paid by Rs 32,905/- as per books. Details of Provident Fund contribution payable as per
books and paid as per challan are as given below:

Employees Employer's Employer’s

Employees
Contribution Excess Contribution Contribution Excess Due date for Date of
Month Contribution paid Annexure
payable as per /(Short) paid payable as per paid as per /(Short) Paid payment payment
as per challan
books books challan

July-18 7,86,558 7,88,132 1,574 8,53,736 8,53,736 - 15/08/2018 13/08/2018

Aug-18 8,62,529 8,11,237 (51,292) 8,78,857 8,78,857 - 15/09/2018 11/09/2018

Sept-18 9,05,548 9,88,171 82,623 10,05,076 10,05,076 - 15/10/2018 15/10/2018

Total 32,905

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.1 Remittance of Provident Fund HIGH MED LOW

Key Observations
• Details of difference in number of employees as per pay-sheet & challan are as given below:
No. of employees in No of employees in
Month Difference
paysheet Challan
July-18 1257 1257 -
Aug-18 1216 1214 2
Sept-18 1215 1215 -

• Details of PF contribution payable as per our calculation and as per books are as given below:
Employees
Employees Excess Employer's Employer’s Excess
Contribution as
Month Contribution /(Short) Annexure Contribution as per Contribution /(Short) Annexure
per our
payable as per books deduction our calculation payable as per books deduction
calculation

July-18 7,88,132 7,86,558 (1,574) 8,53,736 8,53,736 -

Aug-18 8,62,375 8,62,529 154 9,34,234 8,78,857 (55,377)

Sept-18 9,05,561 9,05,548 (13) 9,81,031 10,05,076 24,045

Total (1,433) (31,332)

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.1 Remittance of Provident Fund HIGH MED LOW

Key Observations

• It is observed that employee contribution is excess paid by Rs 31,472/- and employer contribution is short paid by Rs 31,332/-.Details of PF
contribution payable as per our calculation and Paid as per challan are as given below:

Employees Employer's Employer’s

Employees
Contribution Excess Contribution as Contribution Excess
Month Contribution as per Annexure Annexure
Paid as per /(Short) Paid per our paid as per /(Short) Paid
our calculation
challan calculation challan

July-18 7,88,132 7,88,132 - 8,53,736 8,53,736 -

Aug-18 8,62,375 8,11,237 (51,138) 9,34,234 8,78,857 (55,377)

Sept-18 9,05,561 9,88,171 82,610 9,81,031 10,05,076 24,045

Total 31,472 (31,332)

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.2 Remittance of ESI HIGH MED LOW

Key Observations
• As per Employees State Insurance Act, 1948 the employer shall pay the ESI contributions within 15 days from the last day of the calendar
month in which the contributions fall due.
• It is observed that ESI amounting to Rs 1,458/- is short paid as per books. Details of ESI contribution payable as per books and paid as per
challan are as given below:
Employee Employer
Employee Employer Excess
contribution Excess Contribution Due Date of
Month Contribution Annexure Contribution /(Short) Date of Payment
paid as per /(Short) Paid paid as per Payment
as per books as per books Paid
challan challan

July-18 1,99,710 2,01,100 1,390 5,46,397 5,46,397 - 15-08-2018 16-08-2018

Aug-18 2,10,880 2,10,887 7 5,72,937 5,72,937 - 15-09-2018 12-09-2018

Sept-18 2,25,146 2,24,657 (489) 6,10,296 6,10,296 - 15-10-2018 16-10-2018

Total 909 -

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.2 Remittance of ESI HIGH MED LOW

Key Observations

• It is observed that employee contribution is excess paid by Rs 4,448/- and employer contribution is Excess paid by Rs 6,138/-Details of ESI
contribution payable as per our calculation and as per books are as given below:
Employee
Employee Employer Employer
Contribution as Excess/(Short) Excess/(Short)
Month contribution as Annexure Contribution as per Contribution as per
per our deduction deduction
per books our calculation books
calculation

July-18 1,98,144 1,99,710 1,566 5,37,821 5,46,397 8,576

Aug-18 2,11,015 2,10,880 (135) 5,72,755 5,72,937 182

Sept-18 2,25,608 2,25,146 (462) 6,12,366 6,10,296 (2070)

Total 969 6,688

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.2 Remittance of ESI HIGH MED LOW

Key Observations

• Details of ESI employee contribution payable as per our calculation and paid as per challan are as given below:
July'18 Aug’18 Sept’18
Particulars
Amount Amount Amount Amount Amount Amount
1 ESI payable as per our calculation 7,35,965 7,83,770 8,37,974
2 ESI paid as per challan 7,47,497 7,83,824 8,34,952
Excess/ (Short) paid 11,532 54 (3,022)
Reconciliation:
ESI short deducted and paid due to non
Less: consideration of washing allowance in gross (11,939) (23,644) (28,586)
salary
ESI excess deducted and paid due to non
Add: consideration of washing allowance in gross 22,918 23,168 25,052
salary

Add: Difference in calculation as per portal(Round off - 530 513

Diff)
Total difference 553 11,532 54 (3,022)

Annexure

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.3.1 Remittance of Professional Tax HIGH MED LOW

Key Observations
Professional Tax
• Summary of month wise remittances of Professional Tax as per books is annexed below:

Amount Payable Amount Paid as Excess/(Short) Due Date of Date of

Month Annexure Month Location Delay in Days
as per our books per challan Paid Payment Payment
Hyderabad 10-08-2018 11-08-2018 1
July-18 29,750 29,400 (350)
Kodad 10-08-2018 10-08-2018 -
Jul-18
Puttur 10-08-2018 10-08-2018 -
Aug-18 35,700 34,750 (950) Bangalore 20-08-2018 11-08-2018 -
Hyderabad 10-09-2018 08-09-2018 -
Sept-18 26,150 25,600 (550) Kodad 10-09-2018 08-09-2018 -
Aug-18
Puttur 10-09-2018 08-09-2018 -
Total (1,850)
Bangalore 20-09-2018 08-09-2018 -
Hyderabad 10-10-2018 12-10-2018 2
• Details of difference in number of employees as per
Kodad 10-10-2018 11-10-2018 1
pay-sheet & challan is as given below: Sep-18
Puttur 10-10-2018 11-10-2018 1
Bangalore 20-10-2018 12-10-2018 -

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.3.1 Remittance of Professional Tax HIGH MED LOW

Key Observations
Professional Tax

• Summary of month wise Professional Tax as per books and as per our calculations is annexed below:

Amount Payable as Amount Payable as Excess/(Short)

Month Annexure
our Calculation per books Deduction

July-18 29,850 29,750 (100)

Aug-18 41,950 35,700 (6,250)

Sept-18 48,850 38,600 (10,250)

Total (16,600)

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.3.1 Remittance of Professional Tax HIGH MED LOW

Key Observations
Professional Tax

• Summary of month wise professional tax as per our calculations and paid as per challan is annexed below:

Amount Payable as per Amount Paid as per

Month Excess/(Short) Paid Annexure
our calculations challan

July-18 29,850 29,400 (450)

Aug-18 41,950 34,750 (7,200)

Sept-18 48,850 38,050 (10,800)

Total (18,450)

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.3.2 Remittance of Professional Tax HIGH MED LOW

Key Observations
• Professional Tax for Tamilnadu for the period 1st April’18 to 30th September’18 as per Books and as per challan is given below:

Amount Payable Amount Paid Excess/(Short) Due Date of

Period Annexure Date of Payment
as per books as per Challan Paid Payment

1st April’18 to 30th

September’18 1,39,260 1,32,135 (7,125) 30-09-2018 09-10-2018

• Professional tax for Tamilnadu for the period of 1st April’18 to 30st September’18 as per our calculations and paid is given below:

Amount Payable
Amount Paid Excess/(Short)
Period as per our Annexure
as per Challan Paid
calculations

1st April’18 to 30th

1,94,110 1,32,135 (61,975)
September’18

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 Policy Procedural Regulatory a System Deficiency
Observation rating
7.3.2 Remittance of Professional Tax HIGH MED LOW

Key Observations

• Professional tax slab rates for Tamilnadu state has been revised w.e.f 1st April’18.

• Professional tax for Tamilnadu for the period of 1st April’18 to 30th September’18 as per our calculations and books is given below:

Amount
Amount Payable Excess/(Short)
Period Payable as per Annexure
as our calculation deduction
books

1st April’18 to 30th

1,94,110 1,39,260 (54,850)
September’18

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Arunachala Logistics Private Limited
Internal Audit Report for the Quarter July 2018 to September 2018

9.Other Areas Covered

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