report on after sales workshop

7/25/2019 Report on After Sales Workshop

1/38

CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

PARSOLI MOTOR WORKS PRIVATE LIMITED

MANAGEMENT AUDIT REPORT FOR THE PERIOD 1ST

OCTOBER, 2014TO 31STMARCH, 201

1! COMPLIANCE WITH BMW, PARSOLI AND STATUTORY

NORMS

A! D"#$ C%' (

As per RTO rules, no car should be delivered before CRTEM (Certificate of Temporary

Registration) passing is done from RTO A temporary number has to be obtained from

RTO !hich is valid only for one month "f a car is delivered before CRTEM passing, and

the car meets !ith an accident or is damaged#stolen post delivery, the liability for loss of

the same has to be borne by $arsoli "f the customer is not ready to !ait for delivery till

the CRTEM passing is done, a liability#indemnity form should be signed by the

customer to the effect that the customer shall be liable for any mishap occurring after

delivery till the CRTEM passing is done

%e observed that in sporadic cases, cars had been delivered during our audit period

!ithout CRTEM passing at Ahmedabad, &urat and Ra'ot divisions %e believe that the

practice of delivery of car before CRTEM passing should be stopped completely to avoid

the possibility of any unforeseen loss caused to $arsoli due to any mishap

%hen a car is taen for test drive, a liability form should be signed by the potential

customer taing the test drive to the effect that he shall be liable for any accident#

damage done to the demo car or for in'ury to any person during the test drive This form

should bear details lie the customers driving license number, his contact number, his

address, the time and date of test drive, starting and ending ilometers etc and should be

duly signed by the customer Although $arsoli has commenced obtaining Test drive

Checlist and *eedbac *orm cum liability form at the time of test drive, !e observed

the follo!ing deficiencies in the same+

$age of -.


2/38


A)#"*%+%* D-'$. (

*rom /-rd0une, /12, the ne! Test drive Checlist and *eedbac form cum

3iability form has been put into practice After the sales consultant submits this

form to the reception, Ms 4iita and Ms Richa 0oseph checs the formregarding its completeness 4e! liability form bears serial number and uni5ue

opportunity number %e further observed that the copy of the driving licence of

the participants have been ept on record in ma'ority of the cases

Overall, !e feel that there is a significant improvement in liability form

maintenance and a proper document control is being maintained 6o!ever !e

suggest that obtaining of copy of driving license should be made a mandatory

re5uirement for all the test drives

S/% D-'$.(

Test 7rive *eedbac form cum 3iability form at &urat are generally completely

filled up %e further observed that copy of driving license of participants is ept

on record in ma'ority of the cases

R%$ D-'$.(

Test 7rive *eedbac form cum liability form at Ra'ot are generally completely

filled up %e further observed that copy of driving license of participants is ept

on record in ma'ority of the cases

%e found the follo!ing lacunas in logboo maintenance +

A)#"*%+%* D-'$.(

The logboos had not been ade5uately filled up This needs to be addressed on a priority

basis

On our test chec of the logboo of various demo cars, !e found the follo!ing lapses+

SN$

D"#$ %#$*" .$

S%.5K#' 6A7

E.*.5K#' 6B7

T$% K#'8)$/

D%"' F$# 8)) .$"$* $9 *"#$ % /'%5"

$age / of -.


3/38


%.: "$*

6B ; A77

9$/.*

8-1d blue 2-/9 2:/. -1- 1;#12#/19 to -#12#/19

T$% K#' 303

*urther in all the logboos, the purpose of usage of demo car is missing and logboo

is filled up by security personnel from gate pass

&teps should be taen to rectify the above mentioned lapses in maintenance of

logboos There is improvement in this area as compared to our previous audit

reports

S/% D-'$.(

S

N$

D"#$ %

#$*" .$

S%.5

K#' 6A7

E.*.5

K#' 6B7

T$% K#'

8)$/

%.: "$*

6B ; A77

D%"' $. 8)) .$ "$* $9

*"#$ % /'%5" 9$/.

9/1d ;;/2 89-; /-.9 /#1/#/19 to 1/#1-#/19

/ 9/1d 11/ ;2:9 9-8 1-#1-#-19 to 8#1-#/19

- - series


4/38


division has stopped maintaining logboos inside the demo cars "nstead of that, they are

being maintained by the receptionist

As per @M% standards, sales consultant should drive for all test drives and a test drive in

general should not eceed 21 minutes Moreover, a route map should be dra!n for test

drives and any deviation from the route map should be approved by


5/38


drive checlist and feedbac formD Mr Aslambhai has been given the responsibility to

chec the physical condition of the demo car after each test drive

S/% D-'$. (

*ormal procedure named 7emo car checlistD has been laid do!n to ensure the physical

condition of the cars Receptionist daily checs various aspects of demo cars such as

dents, scratches, tyre cuts, overall cleanliness, fuel, C7, magaFines, routemap, fragrance

etc and maintain physical copy of demo car checlist $roper action is taen if any

aspect of demo car checlist is not meeting the re5uired criteria This is a step in the right

direction

R%$ D-'$. (

There is system of checing G maintaining demo drive vehicle preparation checlist on

daily basis Mr &amir daily checs various aspects of demo cars such as dents, scratches,

tyre cuts, overall cleanliness, fuel, C7, magaFines, routemap, fragrance etc and maintain

physical copy of demo car checlist

%e observed significant lacunas in the procedure of test drives and maintenance of gate

passes as under +

A)#"*%+%* D-'$. (

$arsoli follo!s the system of maintenance of test drive feedbac form

A system of gate pass for demo cars has been put into practice at the sho!room as per

!hich no car is allo!ed to go out !ithout a gate pass Our certain specific observations

from 0uly to &eptember, /12 regarding this system are as under+

%e do not have any material observations in gate pass verification

Our suggestion of using serially numbered gatepass has been put into practice 6o!ever,

instead of using month to month serial numbered gate pass boolets, random gate pass

boos are being used

*rom the gate pass # logboo of demo cars maintained by security at sho!room

basement, !e observed that demo cars had been sent for test drive out of Ahmedabad at

the follo!ing centres+

$age 9 of -.


6/38


P%" M$*"

.$!

D%"' $. 8)) "' *-" 5-".

$age : of -.


7/38


8/38


-


9/38


!hite

=9 grey 1.#1:#/19

&urat =

Orange

/8#1#/19,/9#1/#/19

:i

orange

-1#19#/12

8-1d

silver

9#19#/19,

8-1d blue /9#1/#/19,1-#12#/19,/8#12#/19

-/1d

!hite

1;#12#/1/

=9 grey 1-#1:#/19

-gt !hite 1;#12#/19

.d

!hite

1#1/#/19,/#1/#/19,-#1-#/19

.d

orange

19#1-#/19

%e further observed that demo cars had been sent for test drive out of Ra'ot at the

follo!ing centres+

P%" M$*" .$! D%"' $. 8)) "' *-" 5-".

&urendranagar =- !hite /1#1/#/19

4adiad =- !hite 18#12#/19

9/1d !hite 18#12#/19

7eesa -


10/38


-/1d !hite demo car had gone for test drive to @aroda 2 times The demo car has a

maimum life of 1111 ms $arsoli has sold -/1d demo car to Mr &agar adav at a loss of Rs -/- lahs !hich !ors out to be Rs -//; per m in

depreciation cost alone The aggregate ms run by -/1d demo car for @aroda visits for

2 times comes to /11 ms Total cost of using the demo car during one month comes toRs ,9.,82. (/11 ms Rs -//;) in depreciation cost alone and that too ecluding

fuel, employees and maintenance costs, !hich sounds prohibitively high

%e feel that a proper planning of usage of demo car can al!ays be done, !hich can !or

as a significant cost reduction tool

S/% D-'$. (

A system of gate pass for demo cars has been put into practice at the sho!room !ith

security as per !hich no car is allo!ed to go out !ithout a gate pass

"n fe! of the gate passes, the authoriFed sign, the time in G out and reason for going out

etc has not been mentioned %e suggest that gate pass details should be properly filled

to no! the purpose and usage of demo cars and other vehicles

*urther, in ma'ority of cases !e observed that demo car !as etensively used for

document collection, for collecting che5ues from the customers, for booing of cars etc

*rom the gate pass # logboo of demo cars maintained by security at sho!room, !e

observed that demo cars had been sent for test drive out of &urat at the follo!ing centres+

P%" M$*" .$! D%"' $. 8)) "' *-" 5-".

@ardoli - series


11/38


%e have noted that the fuel cost, !hich is mainly for demo cars on an average is about

Rs 9,/1,111 per month The detailed monthB!ise breaBup of fuel costs of demo cars is

as under+

%e feel that $arsoli can achieve a significant reduction in fuel costs if certain

procedural changes, as recommended in the earlier portion of our report, are !ored

out and operationalised

B! L$%." C%'

3oaner car is given to customer in the event !hen customers car comes at !orshop

for service or repairs and the customer demands a temporary car against the car !hich

is being serviced # repaired

$age of -.

M$.)

F/" $' >R'? T$% F/"

$' >R'?A)#"*%+%*

S)$8$$#

D-'$.

A)#"*%+%*

W$')$=

D-'$.

S/%

D-'$.

R%$

D-'$.

October, /12 //.;28 2;-- .:.89 -2.// 2;;888

4ovember, /12 /1;82: 1:;-. .19.; /.11: 2/9/8;

7ecember, /12 /2/-;2 /918 8-1; .-21/ 9/21/

0anuary, /19 -1... 9129 :;; -1.-2 99;.8;

*ebruary, /19 :;88 /-.2:. 8:/9 -29:/ :.29.

March, /19 /89/28 .9.;- ;;;-/ 2.9. 91;9;1T$% 14343@2


12/38


%e suggest that log boos be maintained for loaner cars, primarily for no!ing

!hether loaner car has been used for any other purpose There are no material

observations regarding maintenance of loaner car register and declaration form

C! D'=%: C%'

The @M% norms re5uire that each display car should have the @M% magaFine, C7 and

specification sheet

A)#"*%+%* D-'$. (

"t !as observed during random verification of display cars that ecept one all the display

cars contained C7 and magaFines

S/% D-'$. (

"t !as observed on 8thAugust, /19 that all the display cars contained the C7, brochure

and magaFines

R%$ D-'$. (

"t !as observed on -st0uly, /19 that all the display cars contained the C7 and brochure,

but none of the cars contained magaFines

D! D"-": $9 %' (

A)#"*%+%* D-'$. (

Customers !ho purchase cars in the premium segment have a rightful epectation that

the eperience should be special and unforgettable %hen a car is brought from the

!orshop for delivery, Ms 4iita and concerned sales consultant have the

responsibility to handle the delivery process and ensure that the car is delivered in a

satisfactory condition to the customer

$arsoli has started preparing eclusive checlist for delivery "n that chec list

department !ise responsibility has been fied *or eample list of items needs to be

ready /2 hours prior to delivery lie $7", "nsurance, number plate, vehicle cleanliness

from !orshop etc There is also list of items to be ready / hours prior to delivery lieinterior and eterior cleanliness, gatepass,tool it,invoice,!elcome it,poo'a thali,body

$age / of -.


13/38


cover etc All these things have been allocated to concern department Ms 4iita

prepare the checlist and maintain the same This is a step in the right direction

S/% D-'$. (

There is one personnel Ms Aruti Iansara designated at the sho!room to ensure that

the car is delivered in a satisfactory condition to the customers 6ere, the cars are being

delivered !ith ribbon at front and at doors, photograph of customer pasted in calendar

gifted to the customer and efforts are made to mae it a special occasion for the

customer %e have been informed that there is no dissatisfaction amongst the customers

regarding delivery process of cars at &urat

E! S"/: % )" ')$8$$# (

There !ere a fe! anomalies observed in the security measures at the sho!room Our

observations regarding the same are as under+

A)#"*%+%* D-'$.(

o

The demo car eys are being ept by the security guard at the entrance Thesho!room car and stoc car eys are ept at the reception

o The sprinler system has been installed at the ne! sho!room A smoe alarm and

fire alarm has been installed

S/% D-'$. (

o The demo car eys are being ept at the reception and other set !ith Mr 7ev@aner'ee The sho!room car and stoc car eys are ept !ith receptionist and

Mr 7ev @aner'ee

o There is fire alarm installed at the sho!room

o &moe detectors are not in !oring conditions and disabled %e suggest that

they be immediately serviced and activated at an early date

R%$ D-'$. (

$age - of -.


14/38


o The sprinler system has been installed at the ne! sho!room A smoe and fire

alarm has also been installed

F! S"/: % )" 8$')$= (

%e found a fe! lapses in the !orshop security Our observations and suggestions

regarding the same are as under+

A)#"*%+%* D-'$.(

o The main light of the entrance gate, at the bac side and around the !orshop

!as off during the night 7uring the test chec verification of CCTHs bac up

data, !e observed that during nightBtime, the clarity of recordings of CCTH

camera !hen lights !ere off is very poor

o @urglar alarms are not installed at the !orshop %e suggest that efficient burglar

alarm system be installed and activated at an early date

o

There are speaers installed on the compound !all of the building but no publicaddress system is installed A public address system should be made available

!ith the CRM so that informing any staff member or passing any instructions

becomes speedier, easier and timeBefficient

S/% D-'$. (

o @urglar alarms are not installed at the !orshop %e suggest that efficient burglar

alarm system be installed and activated at an early date

o &moe detectors are not in !oring conditions and disabled %e suggest that it

should be immediately serviced and activated at an early date

o The bacBup of CCTH data is being stored upto . days only %e suggest that it

should be stored for at least : months

G! R""=$. %.* C/'$#" 8"$#" (

$age 2 of -.


15/38


A)#"*%+%* D-'$. (

o %e have observed that the front des is normally attended by the Receptionist and

greeter for most of the times

S/% D-'$.(

o %e did not observe any material discrepancies in reception and customer

!elcome at &urat division

R%$ D-'$.(

o %e did not observe any material discrepancies in reception and customer

!elcome at Ra'ot division

H! L9"':" P$*/' (

The sho!room displays a !ide range of lifestyle products that are sold, given free

to customers or used as free gifts at promotional events The lifestyle products as !ell

as promotional items including flyers and brochures have to be purchased from @M%Often certain items lie calendars, diaries, boos etc are sent directly by @M% and

billed to $arsoli All these products are maintained by CRM department

6o!ever, !e observed that no records are maintained by the CRM department for the

promotional items that are distributed, gifted or given a!ay to customers

Ms *eny is maintaining lifestyle stoc register of Ahmedabad sho!room division

in ecel sheet &he has been assigned the duty of managing lifestyle related items

At &urat division, 3ifestyle items are being monitored by Ms 4ainita $atel %ehave observed over a period of time that there are al!ays bills pending in 7M& for

items !hich have already been sold # cleared out from the stoc but not invoiced out

from the 7M& %e suggest that the process at &urat for lifestyle items needs to be

streamlined 7ue to repetition of our observations no! 3ifestyle items are being

monitored by parts department

At Ra'ot division, 3ifestyle items are being monitored by Ms RiFvana %e have not

observed any material discrepancies on verification of lifestyle items at Ra'ot

I! I./: %=/.5 %.* 9$$8/= (

$age 9 of -.


16/38


A)#"*%+%* D-'$. (

M$.) N$! $9 ./"'

%=/"* %CRM =$%

N$ $9 %' '$*

%' =" '%"' "5'"

I./"'

C$.-"'$. .$S%"' %$

>?

October, /12 /; // 119

4ovember, /12 /-/ /8 :2

7ecember, /12 /11 -- :91

0anuary, /19 2- -. /:98

*ebruary, /19 /11 8 .91

March, /19 9.: /9 2/8

T$% 10 1


17/38


$arsoli has started the practice of filing of En5uiry Tracing *orm for gathering

various source of in5uiry @ased on that sale consultants !ere ased to follo!

up !ith the customers This is a step in the right direction

%e feel that conversion ratio of potential in5uiries into sales can be further

improved by rigorous follo! up of the in5uiries generated by the sales team

J! E#=$:""' "%-" "$* %.%:''(

SHOWROOM

On verification of muster data for the month of March, /19 on test chec

basis, !e observed the follo!ing +

6R $olicy suggests that if an employee comes late ie after 111 am but before

11 pm, then it !ould be counted as late mar "f an employee comes late for -

days in a month, then an aggregate half day salary deduction !ould be made "f

an employee comes late for : days in a month, then an aggregate full day salary

deduction !ould be made This means that if an employee comes late for 9 days

in a month, then also only half day salary deduction !ould be made &uch relaed

provisions may give employees cushion to come late As a result, certain

employees are regularly irregular in their reporting timings

%e have observed that employees are irregular in punching %e suggest that

proper communication be made to all employees about the punching policy and

appropriate action be taen to ensure maing punching a habit for the employees

%e suggest that regularity and punching habits be lined !ith the incentive given

to employees so as to mae them regular in their reporting timings

%e suggest that 6R policy be revie!ed to rectify the above deficiencies

WORKSHOP

On verification of muster data for the month of March, /19 on test chec basis,

!e observed the follo!ing +

6R $olicy suggests that if an employee comes late ie after ;-1 am but before pm, then it !ould be counted as a late mar "f an employee comes late for -

$age 8 of -.


18/38


days in a month, then an aggregate half day salary deduction !ould be made "f

an employee comes late for : days in a month, then an aggregate full day salary

deduction !ould be made This means that if an employee comes late for 9 days

in a month, then also only half day salary deduction !ould be made &uch relaed

provisions give employees cushion to come late Certain employees are regularlyirregular due to relaed 6R policy %e suggest that regularity and punching

habits should be lined !ith the incentive given to employees so as to mae them

regular in their reporting timings

%e suggest that 6R policy be revie!ed to rectify the above deficiencies and

punching be made mandatory for all the employees irrespective of their

designation

7etailed employee !ise observations and reply from 6R &pecialist given in

A.."/" 1

K! E#=$:""' %" %.* 8$.5 )%+' (

Many times !e observe that some employees come !ithout uniform ?niformis mandatory to !ear ecept on some specified occasion

At the old sho!room, a register !as being maintained on the reception !herein

the staff members !ere re5uired to mae entries before leaving the office

premises (for personal or official !or) and subse5uently on return At the ne!

sho!room, no! register is being maintained at the entrance "t is good step in

the right direction

L! E#=$:""' ="9$#%." "-%/%$. %.* .".-" (

C/". "$. 9$ I.".-" % ')$8$$#

"ncentive to bac office and administrative staff of sho!room is ::8K pa of yearly

gross salary given during the year This incentive is divided into four 5uarters

$age . of -.


19/38


"ncentive to sales staff is as per the ne!ly adopted @alance &core Card system !hich

is based on various parameters decided by the Management

"ncentive to &ales Manager is at 91K of the total incentives earned by the &ales

Managers team as per @alance &core Card system

"ncentive to


20/38


although $arsoli suffers losses, the sales consultant earns a handsome incentive &o

!e suggest that !eightage given to


21/38


O/ $+'"-%$.' $. )" %9$"'%* .".-" =$: %" %' /.*"(

4e! @alance &core Card system is a very good step in the right direction but the

incentive to team leaders based on teams performance is not uniform and sometimes

not even 'ustifiable This is ad'usted to be 'ust the average figure of incentive !hich

they used to dra! earlier Appropriate correction needs to be done to mae this figure

more dynamic and performance oriented

%e suggest that the top management prepare IRA (Iey Responsibilities Areas) of

each employee and performance be assessed based on this IRAs on a half yearly or

yearly basis "t !ill create healthy competition amongst the employees to perform

better "t !ould also help the Company in retaining efficient employees

M! C$#=%." 8) -%$/' %9" '%" BMW '%.*%*' (

As per @M% report, the various performance targets and achievements are as

under +

P"9$#%."

%5"

=%%#""'

J%./%:, 201 F"+/%:, 201 M%), 201

Achieve

ment

(K)

Lualified

incentive

(K)

Achieve

ment (K)

Lualified

incentive

(K)

Achieve

ment (K)

Lualified

incentive

(K)

$arts purchase

performance

1 11 1; 11 1. 11

AG3 purchase

performance

/8- 11 /9: 11 9. 11

%arranty

re'ection rate

compliance

2/ 8. - 11 /8 11

Campaign

completion

rate

;2/ 11 ;9 11 ;/: 11

Complaints 1- 11 1/ 11 1 11

KPI B$./'

W"5)"*

/%9"*.".-"

11 11< 11

$age / of -.


22/38


*rom the above, !e can observe that all the performance parameters ecept

!arrant re'ection rate has been fully achieved *urther, it can be noticed that

$arsoli has over achieved in case of parts purchase performance and AG3purchase performance 6o!ever, this over achievement has resulted in

overstocing of parts at !orshop !hich !e have pointed out in subse5uent

portion of our report

The campaign completion rate has not been achieved as targeted in the month of

0anuary 7ue emphasis needs to be given for achieving !arranty re'ection rate

2! MARKETINGANDADVERTISEMENT(

En5uiries generated are being entered in to CRM dynamic portal 3ead Management

as provided by the @M% Each sales consultant has been provided !ith a separate

logB in id and pass!ord on this portal &ales consultant needs to entered daily in5uiry

into this portal and portal !ill remind him about daily due follo! up and status of

in5uiry CRM has been provided !ith master login id and pass!ord !herein anyone

can loo into overall Ahmedabad and &urat sales consultants in5uiries and follo!

ups

4e! sales consultantB!ise report containing en5uiries, test drives, booing, invoice,

delivery and lost details has been online monitored by CRM department in CRM

portal &ales consultantB!ise assignment of in5uiries and subse5uent conversion of

in5uiry into sales is given in A.."/" 2

M$.) I./"' $ T"' *-"

%$ >I*"% 0?

I./"' $ '%"' %$

>I*"% ?

T"' *-" $ S%"' %$

>I*"% 20?

D-'$. A)#"

*%+%*

S/% R%$ A)#"

*%+%*

S/% R%

$

A)#

"*%+

%*

S/% R%$

Oct, /12 28K :;K B 1K -K B /K .K B

4ov, /12 9:K .8K B /K 2K B /K :K B

7ec, /12 29K 9;K B :K ;K B -:K -K B

0anuary, /19 /8K -/K 9.K /8K /9K 8K ;8K 8.K /11K

*ebruary, /19 22K 8K :2K .K K ;K ;K 9K 2K

March, /19 .-K 8:K 8/K 2K K -K 9K K .K

AVERAGE 0


23/38


%e observed that on an average Ahmedabad, &urat G Ra'ot divisions achieve

in5uiries to sales ideal ratio but fall short for in5uiries to test drive ratio Thus, there is

a !ide scope of improvement in this area

%e observe that at $arsoli only !al in, telephonic and lead provided by @M% is

entered in to 7M& in5uiry portal As per a system recently put in place, even

potential in5uiries generated during the events held by $arsoli are entered in to

7M& portal and follo! up has been done by the sales team

As a part of recently commenced system, for every advertisement campaign done, a

systematic database in ecel sheet is being prepared by the sales consultant and

provided to CRM CRM enters the filtered in5uiries into 7M& and follo! up is

being done by the sales team This is a vast improvement from the previously

follo!ed procedures %e suggest that there should be a system in place to ensure

that the net campaign is based on the feedbac received from the previous

campaign

The comparative figures of actual mareting spending are as under +

(Rs in lahs)7ivision 2/12 to -1;/12 Total 1/12 to --/19 Total

Advertisement

in print media

Harious

events

Advertisement

in print media

Harious

events

Ahmedabad 82. /;-- 11. 99:9 -:2: ;/

&urat 4il 4il 4il 4il / /

Ra'ot 212 1-9 2-; 298 19: 9/

T$% !2 2@!


24/38


S

N$

M$.) T$% ./#+" $9

"'=$.'"' $9A)#"*%+%* S/%

%.* R%$ S%"'

T$% ./#+" $9

"'=$.'"' $9A)#"*%+%* %.*

S/% A9" '%"'

October, /12 ; 8-

/ 4ovember, /12 2 ;-

- 7ecember, /12 -; 18

2 0anuary, /19 /; .

9 *ebruary, /19 2: .;

: March, /19 .

T$% 1 24

Out of these responses, !e made specific observations are given in A.."/" 3

HO"CE results March >T7 /19 are as under+

P%'$

"'/'

A)"-"*

CSI $9

P%'$

G$/=

%-"%5"

$9 CSI

N%$.%

T%5" $9

CSI

P%'$'

/%9%$. 9$

.".-" +%'"*

$. -$"&ales ;8: ;9: ;/ >es

After sales ;8 ;9 .9 >es

*or getting incentive, $arsoli has to achieve either group average or national target

"n sales and after sales C&", $arsoli has achieved national target as !ell as group

target There is s significant improvement in sales and after sales C&" during the

audit period under revie!

4! INSURANCE(

$age /2 of -.


25/38


A)#"*%+%* D-'$.(

Money "nsurance $olicy for sho!room and !orshop division for transit of cash from

ban to sho!room#!orshop and vice versa has been taen from The 4e! "ndiaAssurance Company 3imited The ris covered under this policy has a single carrying

limit of Rs /9,11,111 and annual aggregate carrying limit of Rs /,91,11,111

6o!ever, the total cash deposited from April, /12 to March, /19 at Ahmedabad

&ho!room is more than Rs 991 crores !hich eceeds the annual aggregate carrying

limit %e suggest that annual cash carrying limit in the policy be suitably revised

S/% D-'$.(

Money insurance policy has not been taen for &urat division

%e observed that $arsoli has deposited high 5uantum of cash in ban as under %e

suggest that money insurance policy for &urat &ho!room division be taen at an early

date +

$age /9 of -.

&r

4o

7ate Cash of Rs 9,11,111 or

more deposited in ban

(Rs)

1#1#/12 8,:2,21

/ #1#/12 :,:1,111

- :#1#/12 9,//,111

2 /#1#/12 8,-,-//

9 /:##/12 /:,;;,;:1

: /-#/#/12 9,11,111

8 1;#1#/19 :,11,111

. 8#1#/19 :,;1,111

; /-#1#/19 1,11,1111 /-#1#/19 ;,91,111

1:#1/#/19 -,;:,./1

/ #1/#/19 8,/1,111

- 2#1/#/19 2,11,111


26/38


! INVENTORYANALYSIS(

A! ABC A.%:'' (

A)#"*%+%* D-'$.(

Average 21K of the total stoc value is lying in the form of Class C, !hereas

the average of Class A stoc is -1K and Class @ stoc is /9K from October,

/12 to March, /19 This sho!s that a significant part of inventory has been

bloced in Class C slo! moving and rather obsolete inventory causing carrying

cost "n our last report average total stoc lying in the form of Class C !as

21K &o there is no significant increase or decrease in CB category stoc from21K to 21K as on -stMarch, /19

S/% D-'$.(

Average 2.K of the total stoc value is lying in the form of Class C, !hereas

the average of Class A stoc is //K and Class @ stoc is /K from October,

/12 to March, /19 This sho!s that a significant chun of inventory has been

bloced in Class C &lo! moving and obsolete inventory causing carrying cost %e suggest that non moving stoc items be closely monitored by the parts

manager

7etailed A@C analysis is given in A.."/"4!

The average stoc and sales figure comparison + (Rs in crore)

$age /: of -.

D-'$. A-"%5"

S$

>1!4!2014

$

30!@!2014?

A-"%5"

S$

>1!10!2014

$

31!3!201?

A-"%5"

S%"'

>1!4!2014

$

30!@!2014?

A-"%5"

S%"'

>1!10!2014

$

31!3!201?

I."%'"

.

%-"%5"

'$

>?

I."%'"

.

%-"%5"

'%"'

>?

Ahmedabad 2- -2: /. /-- (;-:K) :22K

&urat -; -. 19: 1:2 (18/K) /91K


27/38


%e observed from the above table that at Ahmedabad division the average stoc

has decreased by ;K !hereas the average sales has increased by :K and at

&urat division the average stoc has decreased by K !hereas the average sales

has increased by /K "t means there has been decrease in stoc at both the

divisions and increase in sales, there is slight improvement in stoc management

compared to previous audit reports

B! O*" A.%:'' (

Orders are divided into - category+

) &toc Order

/) Rush Order

-) Hehicle Off the Road(HOR) Order

A)#"*%+%* D-'$.

*or the period from October, /12 to March, /19, !e observed that the

percentage of stoc order !as 8:K, rush order 8K and HOR order 8K $arsoli

earns maimum margin in stoc orders and minimum in HOR orders "deally, the

ratio of rush and HOR orders should not eceed aggregate /9K At present,

$arsoli is operating at /2K, !hich is in line !ith the ideal level

S/% D-'$.(

*or the period from October, /12 to March, /19,, !e observed that the

percentage of stoc order !as :8K, rush order -K and HOR order /1K "deally,

the ratio of rush and HOR orders should not eceed aggregate /9K At present,

$arsoli is operating at --K, !hich is considerably higher than the ideal level

7etailed Order Analysis is given in A.."/" ; !

$age /8 of -.


28/38


A)#"*%+%* D-'$.(

%e have revie!ed the overall "T system of Ahmedabad division A system has been

setup !hereby customer data as !ell as other data is not freely copyable on pen driveand other removable devices

%e have observed that various social net!oring sites as !ell as un!anted sites are

bloced and revie!ed by "T department time to time

%e suggest that recording of CCTHs be stored at least upto : months Currently

recording of CCTHs are stored for only . days

The server room !here primary data as !ell as bacBups are stored is not fire proof

3ooing to the cost effectiveness, fire proofing of the server room can be considered

$arsoli has framed and implemented documented "nformation Technology $olicy as per

our suggestion made during the previous report, !ith effect from stAugust, /12 This

is a step in the right direction

S/% D-'$. (

%e have revie!ed the overall "T system of &urat division and found that customer data

as !ell as other data is not freely copyable on pen drive and other removable devices

7M& data bacBups are taen either on daily basis or !eely basis and stored near the

server room *urther, bac up of 7M& data is also stored on removable hard dis drive

and stored offsite at "T eecutives home on a !eely basis

%e have observed that recording of CCTHs footage storage is being stored only upto .

days %e suggest that recording be stored at least upto : months

$age /. of -.


29/38


The server room !here primary data as !ell as bacBups are stored is not fire proof %e

suggest that fire proofing of the server room be considered

$age /; of -.


30/38


! DEBTORSANALYSIS(

&ummary of debtors movement of Ahmedabad !orshop division from October, /12 to

March, /19 is as under +

(Rs in crores)

*rom the above, !e can observe that the debtors of !orshop division have gone do!n

significantly from Rs ;. crore to Rs 18/ lahs as on - st March, /19 %e suggest

that recovery process for debtors be continuously monitoring by the management as

debtors balances increases during the period under audit

&ummary of debtors movement of &urat !orshop division from October, /12 to

March, /19 is as under +

(Rs in 3ahs)

$age -1 of -.

M$.) O="..5

+%%.">R'?

I."%'" .

*"+$'>R'?

D""%'" .

*"+$'>R'?

C$'.5

+%%.">R'?

October, /12 ;. //; /:1 :8

4ovember, /12 :8 /. -11 2.

7ecember, /12 2. -/; -8 :1

0anuary, /19 :1 /.9 /9; .:*ebruary, /19 .: /82 /;. :/

March, /19 :/ -/ 2 18/


31/38


*rom the above, !e can observe that the debtors of &urat !orshop division have gone

up significantly from Rs 2.: lahs to Rs ;--. lahs as on - st March, /19 %e

suggest that recovery process for debtors be strengthened on an urgent basis and

continuously monitoring by the management

At present, there is no documented fied policy for grant of credit to !orshop

customers As informed to us, the credit is being granted to customer mostly verbally

!ithout any !ritten documentation %e suggest that a policy of granting credit to

!orshop customers be properly framed on a priority basis in order to eep the balance

of such debtors under chec A policy for charging interest on delayed payments may

also be considered

The Chart of Authority and "nternal Control $olicy is under preparation The aforesaid

policy shall be included in that %e suggest that the Chart of Authority and "nternalControl policy, be prepared and implemented at an early date

! WORKSHOPPROFITABILITYANALYSIS

$age - of -.

M$.) O="..5

+%%.">R'?

I."%'" .

*"+$'>R'?

D""%'" .

*"+$'>R'?

C$'.5

+%%.">R'?

October, /12 2.: 11/ 8.;1 :-;.

4ovember, /12 :-;. 89;/ ..8 9;

7ecember, /12 9; ;8./ ;188 9./20anuary, /19 9./2 89-9 8-:: 9;;-

*ebruary, /19 9;;- :218 :-8 :1/;

March, /19 :1/; ;9; .:91 ;--.


32/38


M$.) S%" $9 =%'

>R'?

L%+$/

.$#"

>R'?

C$' $9 5$$*'

'$* >R'?

D"

"=".'"'

>R'?

G$''

=$9 >R'?

T)$/

5)=/

#$.)

P$9

=" %

>R'?

Oct, /12/1981 2-/11:

9:.-;;2.82.-

;/1./22 28/ ;91

4ov, /12 /--9.8 29.2/9 2.2/91: :8:-2 1299:;. 9/2 ;;9

7ec, /12 /91.-;. 99-2-: ;:-2/1 :9911 1-981;2 922 ;1-

0anuary, /19 ;899 2.12/. 2.:;98; :81/1- 8.98;8 2/1 .:1

*ebruary, /19 8;9::2 2.;929- 9;1:: .-2222 :.98:18 2-8 9:;

March, /19 /22:1.1: 9::9:81 /19/.::/ .8-821 .8/2182 9-/ :-;

T$% 12@041< 2@10134 100R'?

C$' $9

5$$*' '$*

>R'?

D"

"=".'"'

>R'?

G$''

=$9 >R'?

T)$/

5)=/

#$.)

P$9

="

%

>R'?

Oct, /12 8:8-98 1:889 989/-; 92. /;/;1-9 /2 -:.84ov, /12 9819.;9 .;;2 28-. 28./. /2-/:11 /1 /1/

7ec, /12 819;:;2 288.8 9:1.8 9/8-1 /92::-2 /-8 1829

0anuary, /19 9-9:.: 12;.1 292/8/8 1 .//8:1 ; ;92-

*ebruary, /19 2:-2-8 .-..-. 998;;2 1;;18 (92:;/) 89 (..2)

March, /19 .8-9;: -:8.-. 9982..2 98-2 221..: ;- //.2-

T$% 3@120@


33/38


@! WARRANTY BSI ANDINSURANCECLAIMSANALYSIS(

The month !ise breaup of !arranty # @&" claims receivables at A)#"*%+%*

W$')$= *-'$.is as under +

(Rs in lahs)

*rom the above, !e can observe that the outstanding !arranty claims have gone do!n

from October, /12 to March, /19 from Rs ../1 lahs to Rs 81/ lahs Rigorous

follo! up !ith @M% "ndia must be taen up by the !arranty department for recovery of

!arranty # @&" claims

The month !ise breaup of !arranty # @&" claims receivables at S/% W$')$=

*-'$.is as under +

$age -- of -.

M$.) O="..5

+%%.">R'?

I."%'" .

8%%.:

%#'>R'?

D""%'" .

8%%.:

%#'>R'?

C$'.5

+%%.">R'?

October, /12 ../1 8//2 .-1 8;2

4ovember, /12 8;2 9:-2 8:-. 9;1

7ecember, /12 9;1 :.2/ 9;1 :.9

0anuary, /19 :.9 -9/9 :/1 2::

*ebruary, /19 2:: 2/.: -9; 2;--

March, /19 2;-- 8.8: 98;8 81/

M$.) O="..5

+%%.">R'?

I."%'" .

8%%.:

%#'>R'?

D""%'" .

8%%.:

%#'>R'?

C$'.5

+%%.">R'?

October, /12 2./ ;29 /.1 284ovember, /12 28 ::- /./ 9/.

7ecember, /12 9/. .8. 8: //-1

0anuary, /19 //-1 ;1 2;: ;/2

*ebruary, /19 ;/2 9.. 9: /-9:

March, /19 /-9: 2/; 2;2 99-


34/38


*rom the above, !e can observe that the outstanding !arranty # @&" claims have gone up

from October, /12 to March, /19 from Rs l2./ lahs to Rs 99- lahs Rigorous

follo! up !ith @M% "ndia must be taen up by the !arranty department for recovery of

!arranty # @&" claims

The month !ise breaup of insurance claims receivables from various insurance

companies at A)#"*%+%* W$')$= *-'$.is as under +

(Rs in lahs)

*rom the above, !e can observe that the outstanding insurance claims have gone do!n

significantly from October, /12 to March, /19 from Rs /./: lahs to Rs 1:

lahs Rigorous follo! up !ith various insurance companies should be taen upcontinuously by the insurance department for recovery of insurance claims to smoothen

the !oring capital cycle

The ageing analysis of !arranty # @&" claims receivables, insurance claims receivables

and parts payable of Ahmedabad !orshop division are given in A.."/" ;

The ageing analysis of !arranty # @&" claims receivables, insurance claims receivables

and parts payable of &urat !orshop division are given in A.."/" ; !

7uring the audit, !e observed that there are some cases of re'ected !arranty # @&" claims

primarily because of inadvertence and negligence on part of the employees %e suggest

that concerned staff member should be drilled regarding the reasons for re'ection in the

past so that the same mistae does not recur %e observed 9 cases aggregating

Rs9/,:91 permanently re'ected, the detailed !oring !hereof is given in A.."/" ; !

$age -2 of -.

M$.) O="..5

+%%.">R'?

I."%'" .

.'/%."

%#'>R'?

D""%'" .

.'/%."

%#'>R'?

C$'.5

+%%.">R'?

October, /12 /./: 8-9; ;91: 1:8;

4ovember, /12 1:8; ::: 8881 ;9817ecember, /12 ;981 ;/2 /8/ 82//

0anuary, /19 82// :28 28- ;.1

*ebruary, /19 ;.1 :;-1 //.8 -./-

March, /19 -./- ::89 ;2-8 1:


35/38


10! MECHANICPERFORMANCE(

Average efficiency of mechanics for October, /12 to March, /19 is 1/-.K and the

average productivity is 8199K

Average productivity of mechanics has decreased from 821K for the half year ended

-1th&eptember, /12 to 8199K

7etailed mechanic !ise performance analysis is given in A.."/" ; @!

$age -9 of -.


36/38


37/38


12! OTHERISSUES(

Total &ales discount and R'?

C$##''$. "=".'"' %' ="

%$/.' F!Y! 20141 >R'?

Ahmedabad 1,1/,911 ,9:,812

&urat 1,8,.89 /,.9,111

Ra'ot -,.8,911 /,.1,111

Total 24,0, 1,21,04

There is no valid basis, proper documentation, or uniformity in giving 7&A commission

%e have already suggested detailed steps and policy to streamline the 7&A commission

%e suggest that the ne! 7&A commission policy be implemented at the earliest

%e than the management and the staff of the Company for the coBoperation etended to us

during the course of our audit

F$ C)%.*%+)$: & J%''$$+)$:

$lace+ Ahmedabad P%."

7ate+ /th August, /19 C)%""* A$/.%.'

M"#+"')= N$! 100@32

$age -8 of -.


38/38

report on after sales workshop

Documents