summary report_bangalore ws depot_round 1_2009

8/8/2019 Summary Report_Bangalore WS Depot_Round 1_2009

1/5

SUMMARY REPORT ON EXCEPTIONS NOTED DURING THE AUDIT

Depot Name : Bangalore Depot

Name of Auditor Firm : S.N.Mukherji & Co.

Period of Audit : October 2008 to February 2009

Dates of Visit : 10/03/09 to 14/03/09

Date of Report : 23/3/09

Sl.No.

MainAudit

ReportRef.

No.

Observation in BriefRef.

Anxr.ManagementExplanation

PersonResponsible

Implementation

Date

Remarks/Confirmation of

Corrective Action byAuditors

1. 1.0.0 The stock Holding ratio at the UrbanDivision as on week 10/09 is 11

weeks.

Steps should be initiated to bringdown the stock holding ratio to the

recommended standard of 8 weeksby boosting up sales.

DP Stock is high due toSchool buildup

Will be within 8 weeks by

Wk 26/09

Depot Manager 28/06/2009

2. 1.1.4 A Green bill of Rs. 6,196 forfreight expenses of brandingdivision is pending for settlementsince 16th Jul08. (Repetition 1)

Long Pending Pay order of Rs 6,196

should be adjusted at the earliest.

Settlement received bycheque no 101423 Dated

04/04/2009

Depot Manager 10/04/2009

3. 1.2.2 The Branding Division is not

procuring Balance confirmationcertificates from its 6 partiesenjoying credit limit. (Repetition2)

The branding division should procure

balance confirmation certificatesfrom all its parties enjoying credit.

E Branding Customers are

Key accounts customerscontrolled by HO

Banding Division

HO

4. 1.2.3 Branding division has totalbalance amounting to Rs.

G Branding Customers areKey accounts customers

controlled by HO

Banding DivisionHO


2/5

0.029M outstanding over 45days as at Wk 09/09 from two

parties namely Reliance FootWear BLR and Pantaloon Reta.

Old outstanding over 45 should berecovered at the earliest

5. 1.2.4 The depot has not maintained thephotocopies of 13 Demand Draftsreceived during the period fromDec08 to Feb09

Photocopy of Demand draft shouldbe kept as records

I Already started keeping

Copies of DD as and whenreceived

Depot Manager Wk 11/09

6. 1.6.0 Details regarding Claim Numberare not recorded in the Claim

Register.

During Wk 11/09, claim stock of772 pairs worth Rs. 0.164Mwere pending for adjustment overthe stipulated time of 03 months.

In 08 cases the claims settledduring the period 10.12.08 to10.03.09 had not been accounted

for in the immediately succeedingfortnight.

Claim Numbers should be recorded inthe Claim Register.

Claims should be settled within 3months of their receipt.

Settled Claims should be accountedfor in the immediately succeedingFortnight Accounting Statement from

the date of settlement.

M 1

M2

Serial no maintained inclaim register.

Contract claims werechecked and kept for

approval by Horepresentative

Awaited for Road permitfrom HO

Depot Manager On going


3/5

7. 1.8.0 102 damaged furniture itemsamounting to Rs. 0.388M are

available at the Depot. Thisamount includes 71Dealer/wholesalers sign board

worth Rs. 0.377M which hadbeen given to dealers many yearsback. It was explained to us that

the depot management was notsure regarding the physicalexistence of these assets at thedealers premises. (Repetition

2)

The depot should recover compensation from the dealerswherever feasible, for

misappropriation of 71 Dealer/Wholesaler signboards worth Rs.0.377M. Steps should be taken to

write off the value of the damagedassets from the books of the depot toreflect the true value of fixed assets

in the books of the depot.

O Quotation submitted to HOfor Damage Disposal

Approval awaited


8. 1.9.1 In Urban Division article mixing

has been observed in 11% oftotal 421 articles.

It is recommended that adequatecare be taken to ensure correct entry

of articles in the system to avoidcolour and article mismatch.

P

( Ur)

Shall ensure correct

entries henceforth to avoidsuch situation

Depot Manager On going

9. 1.9.1 In two Cartons it was observed

that the details of sizesmentioned in the assortment slipsaffixed on the cartons did notmatch with the sizes of shoes

actually available in the Carton.

Already informed factory

for ensuring correctassortment

Supply Units Always


4/5

10. 1.10.2 The depot is recovering thecharges for bouncing of cheques

from the parties in the form ofcheques.

It is suggested that the depotrecovers the bouncing penaltycharges from the parties in the form

of DD as per the Company policy.

S Shall follow ASM / SO On going

11. 1.11.0 No guard is deputed at the

Wilson Garden godown.(Repetition 2)

Stock kept at the Wilson GardensGodown should be protectedagainst fire by installing adequate

number of Fire Extinguishers.

(Repetition 2)

Since stock worth almost Rs. 15M islying at the Wilson Gardens adequatemeasure for security should beadapted at this place.

Stock kept at the Wilson GardensGodown should be protected against

fire by installing adequate number ofFire Extinguishers

This godown is used only

for school buildup and willbe vacated by wk 26/09

Ground floor we have our

own retail outlet

Shall request HO toprovide the recommended

Security and FireExtinguishers


12. 1.13.0 The software used in the depot is

not protected with Password.(Repetition 1)Since the software contains sensitiveand crucial information the depotshould ensure protection of the same

from unauthorized usage with thehelp of password

T IT department has worked

on it and implemented


13. 1.15.2 The Depot is using unauthorizedtemporary electricity connectiondrawn from RDC which consistsof single phase which is highly

Already quotation sent to

HO. Pending for Workorder

Head Office


5/5

unsafe and prone to accidents.Immediate action should be taken for

installing new electrical connection

with a separate meter.

Encl: Detailed Depot Audit Checklist

Place: Bangalore S.N Mukherji & Co

Date: 23.3.09 Chartered Accountants

Lalita Banerjee

Partner

summary report_bangalore ws depot_round 1_2009

Documents