auditPROJECT (Repaired)

PROJECT ON
AUDIT
OF LEDGER OF SYNTHIKO FOILS 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
SHREERAJ HARIHARAN
M.COM PART-II (SEM-III)
ROLL NO 36
2014-2015
UNDER THE GUIDANCE OF

PROF. MEETA KARANGIA
LORD UNIVERSAL COLLEGE,

TOPIWALA MARG, OFF STATION ROAD, GOREGAON (WEST), MUMBAI, 400062
1|Page
DECLARATION
I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL COLLEGE, M.com Part-I

I(SEM III) hereby declare that I have completed project on AUDIT OF LEDGER OF
SYNTHIKO FOILS LTD & ITS ANALYSIS, in the academic year 2014-2015.This
information is true &original to best of my knowledge
Date:
student
2|Page
signature of
Acknowledgement
With deep satisfaction and immense pleasure I am presenting this project report on AUDIT
OF LEDGER OF SYNTHIKO FOILS LTD & 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 SYNTHIKO FOILS LTD ----------------------------------21
AUDITOR'S REPORT------------------------------------------------------------------ 22
LEDGER OF THE COMPANY & ITS ANALYSIS-------------------------------27
BIBLIOGRAPY-------------------------------------------------------------------------31
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
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
6|Page
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.
7|Page
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."
8|Page
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."
9|Page
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.
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.
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
12 | P a g e
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
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.
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
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
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.
15 | P a g e
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
16 | P a g e
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.
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
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
18 | P a g e
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 SYNTHIKO FOILS LTD

Synthiko Foils Ltd., 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.
Synthiko Foils Ltd. 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 31Mar-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.
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
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
20 | P a g e
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.
21 | P a g e
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
22 | P a g e
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.
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.
LEDGER OF THE COMPANY & ITS ANALYSIS

Synthiko Foils Limited - 2013-14
Plant & Machinery-Unit-I
FIXED ASSET
Ledger Account
Date
1-4-2013 To
2-4-2013 To
To
To
To
To
6-8-2013 To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
To
8-1-2014 To
To
To
To
To
1-3-2014 To
To
To
To
24 | P a g e
Particulars
Vch Type
Vch No.
Journal
Journal
001
000001
24
54
9
136
75
74
Opening Balance
Veekay Blower Industries
Virtex Engineers
Sahil Enterprise ( V )
Jay Equipment & Systems P Ltd
Web Flex Machines
Aqsa Telecom
Aqsa Telecom
SHRIYA ELECTRONICS
Amrit Enterprises
SHRIYA ELECTRONICS
Mihir Sales
SHRIYA ELECTRONICS
Amrit Enterprises
Ekta Enterprises
Hasmukh Elec. & Hardware Store
Mihir Sales
Atlas Engineering Company
Atlas Engineering Company
Sahil Enterprise
Revole Valves Bearings
Contech Instruments Ltd
Multilinks
Multilinks
N N Enterprises
Sahil Enterprise
Air Tech Engineers
MOTILAL KALIANDAS & CO
Debit
62,84,791.91
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
Journal
7706
17
1432
19
3934
20
1484
1482
827
3954
2566
338
53
2578
L00403
363
02409
365
1769
1777
79
450
411
R-104
428
1512
438
1,86,000.00
72,200.00
906.00
1,850.00
45,850.00
1,850.00
13,000.00
1,15,730.00
4,000.00
27,400.00
30,000.00
17,250.00
35,000.00
37,323.00
30,000.00
1,400.00
30,220.00
16,460.00
17,016.00
5,900.00
3,700.00
13,500.00
5,900.00
19,300.00
22,910.00
4,750.00
47,809.00
18,992.00
11,328.00
5,51,840.00
6,023.00
38,002.00
1,82,700.00
12,338.00
29,544.00
1,200.00
Page 1
Credit
To Sahil Enterprise
By Depreciation
Journal
Journal
2,500.00
L00508
82
6,34,327.00
79,46,482.91
By
6,34,327.00
73,12,155.91
79,46,482.91 79,46,482.91
Closing Balance
1-Apr-2013 to 31-Mar-2014
ANALYSIS OF FIXED ASSETS

1) Nature of account: The plant and machinery a/c are real account of tangible fixed asset.
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
fixed asset for the last year available in the audit file
4) Check posting : Scrutiny of the posting in the account show thatThe 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 i.e. 79,46,482.91 /6) Check the Entries : The first entry is of opening balance of 62,84,791.91/- of the last financial year
(2012-2013)
During the current financial year the company has purchase the fixed asset of RS 1661690.09/Date of each product installation is depend upon the date of purchase
Date of product usage of the year starting from the date of purchase till the 31 st march of the
financial year
During the year the depreciation is mention on the plant and machinery a/c is total good purchase
from the day one till the 31st march of the financial year as mention in the ledger
7) Closing balance : The closing balanced of the plant & machinery a/c is in the on the credit side as
the provision of depreciation is not having the separated a/c so it has been adjusted in plant and
machinery account i.e. (79,46,482.91 /- -6,34,327.00=73,12,155.91)
8) Check into schedule :The final balance of these account should be checked in to the schedule of
the fixed asset
25 | P a g e

Hindalco Industries Ltd - Nagpur Div
SUNDRY CREDITORS
Ledger Account
1-Apr-2013 to 31-Mar-2014
Date
Particulars
1-4-2013 By
Opening Balance
2-4-2013 To Corporation Bank - CC - 6 000 6
To Corporation Bank - CC - 6 000 6
By Pur Aluminium Foil ( Local ) Net 5%
3-5-2013 By Pur Aluminium Foil ( Local ) Net 5%
By Discount Allowed
26 | P a g e
Vch Type
Vch No.
Debit
Page 1
Credit
18,86,645.71
Payment
Payment
Purchase
Purchase
Payment
Payment
Purchase
Payment
Payment
Purchase
9
175
447100486
13000729
220
394
13001374
604
621
13001687
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Payment
Journal
Payment
Payment
Purchase
Payment
Payment
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Payment
Payment
13001688
13001859
13001893
13001994
13002022
13002046
13002047
812
Payment
Payment
Payment
Purchase
Payment
1034
1039
1040
13003340
1056
859
860
13002415
876
898
899
13002622
13002623
13002796
13002802
13002804
947
973
6,84,363.00
8,06,834.93
8,24,327.93
26,907.50
6,40,721.97
6,87,039.97
10,88,283.00
17,067.00
4,65,732.98
4,30,011.55
6,72,031.97
4,15,720.98
12,46,500.92
10,00,000.00
6,86,778.93
7,80,984.96
13,801.81
17,34,218.92
6,40,721.97
6,87,039.97
10,88,283.00
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
17,067.00
17,34,162.92
2,06,470.25
13,26,137.01
10,05,886.95
1,36,366.99
11,20,686.97
1,52,242.99

To Pur Aluminium Foil ( Local ) Net 5%
Purchase
Purchase
Purchase
Purchase
Purchase
Payment
13003533
13003573
13003586
13003743
13003744
1118
Payment
1119
1164
1165
D/N
13004184
Payment
Payment
Debit Note
Purchase
Carried Over
Brought Forward
27 | P a g e
8,94,687.12
1,50,52,014.28 2,20,05,756.07
... continued
Hindalco Industries Ltd - Nagpur Div Ledger Account : 1-Apr-2013 to 31-Mar-2014
Particulars
Date
Vch Type
Vch No.
To Aluminium Foil ( Oms )-Net 2%
2,06,970.25
13,26,137.01
1,36,366.95
10,05,886.75
1,55,325.00
11,30,176.95
13,53,907.00
10,28,381.00
4,84,102.97
12,34,416.00
Debit
Page 2
Credit
1,50,52,014.28 2,20,05,756.07
Purchase
Payment
Debit Note
Purchase
Purchase
Payment
Payment
Payment
Payment
Debit Note
Payment
Payment
Payment
Payment
Payment
13004185
1216
360
13004547
13004545
1262
1266
1329
1357
D/N
1412
1431
1448
1449
1489
Payment
Payment
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Debit Note
Debit Note
Debit Note
Payment
Purchase
Purchase
Purchase
Purchase
Purchase
Payment
Payment
1523
1534
1535
13006135
13006132
13006142
13006134
13006237
13006236
13006235
13006234
D/N
D/N
D/N
1723
13006847
13006901
13006900
13006942
13007015
1829
1830
Payment
1831
11,20,686.97
2,58,472.00
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
65,815.00
1,66,809.00
2,73,470.00
4,65,170.00
4,68,636.18
2,06,169.20
2,86,592.80
4,79,747.98
13,90,969.82
4,31,619.62
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
16,01,789.00
4,64,384.00
12,30,367.00
14,22,569.00
13,67,547.00

Carried Over
Payment
Payment
Payment
Purchase
Purchase
Payment
Purchase
Payment
Payment
1860
1861
1862
13007915
13007958
1902
13008092
1909
1937
Payment
1938
... continued
Hindalco Industries Ltd - Nagpur Div Ledger Account : 1-Apr-2013 to 31-Mar-2014
Date
Particulars
Vch Type
Vch No.
Brought Forward
6-2-2014 To
To
8-2-2014 To
By
By
To
To
To
To
To
By
By
By
To
By
By
By
To
5-3-2014 By
By
6-3-2014 To
8-3-2014 To
By
By
To
To
To
To
To
To
By
By
To
To
Corporation Bank - CC - 6 000 6

Write Of
Pur Aluminium Foil ( Local ) Net 5%
Aluminium Foil ( Oms )-Net 2%
To
28 | P a g e
Closing Balance
2,95,917.79
2,01,287.60
8,49,743.77
6,86,173.40
14,05,683.00
8,09,284.97
14,22,946.00
16,01,789.00
72,997.63
2,00,000.00
3,03,20,110.21 3,77,60,790.20
Debit
Page 3
Credit
3,03,20,110.21 3,77,60,790.20
Payment
Journal
Payment
Purchase
Purchase
Payment
Payment
Debit Note
Payment
Payment
Purchase
Purchase
Purchase
Payment
Purchase
1968
13008346
13008345
2013
2014
D/N
2023
2024
13008653
13008652
13008709
2051
13008834
Purchase
Purchase
Payment
Purchase
Purchase
Payment
Payment
Purchase
Purchase
Payment
Payment
Payment
Payment
Payment
Payment
Purchase
Purchase
Payment
Debit Note
13009028
13009026
2054
13009056
447107802
2092
2106
447107960
447107966
2144
2157
2166
2173
2193
2195
447108367
13009688
2226
D/N
1959
10,55,982.00
1,74,385.00
4,64,383.98
13,67,547.00
10,00,000.00
1,74,385.00
4,22,569.00
14,659.40
14,05,683.00
8,09,284.97
10,00,000.00
4,22,946.00
13,10,738.15
2,50,000.00
7,95,019.25
3,00,000.00
4,69,348.97
15,67,962.00
13,34,245.33
21,469.00
13,10,738.15
13,45,019.25
1,02,152.00
4,69,348.97
15,67,962.00
4,57,620.37
15,71,643.92
7,74,472.96
6,84,175.07
10,68,912.00
9,42,682.97
9,14,629.97
2,35,322.98
8,27,377.40
4,46,80,718.26 5,00,32,848.21
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
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/-
29 | P a g e
the sundry creditors

Attar Global
SUNDRY DEBITOR
Ledger Account
1-Apr-2013 to 31-Mar-2014
Date
Particulars
1-4-2013 To Opening Balance

1-4-2013 By Excise Refund Receivable
To Local Sales ( Form H )
By Corporation Bank - CC - 6 000 6
To Cylinder Making Charges
4-5-2013 By Corporation Bank - CC - 6 000 6
30 | P a g e
Vch Type
Vch No.
Debit
Page 1
Credit
6,66,784.00
Journal
Sales
Sales
Receipt
Receipt
Sales
Sales
Sales
Debit Note
Receipt
Debit Note
Sales
Receipt
Receipt
Receipt
Receipt
Receipt
Debit Note
Sales
Receipt
Receipt
Sales
Sales
Receipt
Receipt
Debit Note
Receipt
Sales
Receipt
28
29
65
66
64
65
66
81
96
107
111
131
142
144
143
179
186
177
178
191
199
243
227
247
1,02,414.00
9,21,912.00
1,02,799.00
7,66,727.00
62,824.00
7,250.00
11,250.00
2,73,330.00
20,250.00
2,23,270.00
14,29,238.00
3,82,200.00
9,000.00
8,90,127.00
35,600.00
2,00,000.00
65,785.00
2,81,435.00
2,00,000.00
2,00,000.00
2,00,000.00
2,00,000.00
2,24,326.00
1,02,799.00
62,824.00
4,00,000.00
3,66,727.00
1,00,000.00
1,73,330.00

6-8-2013 To Local Sales ( Form H )
Receipt
Receipt
Sales
258
266
251
Sales
Sales
Receipt
Receipt
Receipt
Sales
Receipt
Receipt
Sales
Receipt
Receipt
252
253
291
299
309
287
325
331
307
335
341
Receipt
351
319
417
425
Sales
Receipt
Receipt
Debit Note
Carried Over
... continued
Attar Global Ledger Account : 1-Apr-2013 to 31-Mar-2014
Date
Particulars
Vch Type
Vch No.
Brought Forward
To Local Sale ( Form - H )-Excise Rebate
31 | P a g e
Sales
Receipt
Receipt
Sales
Sales
Payment
Receipt
Debit Note
Debit Note
Receipt
Sales
Debit Note
Debit Note
Sales
Debit Note
Debit Note
Receipt
Sales
Sales
Receipt
Sales
Sales
Receipt
Sales
Sales
Receipt
Receipt
Receipt
Debit Note
Receipt
371
447
455
391
392
1315
458
486
446
004
452
563
498
499
574
506
507
585
519
520
600
601
607
624
1,98,266.00
27,930.00
7,71,466.00
6,12,620.00
11,99,227.00
7,49,730.00
27,000.00
1,00,000.00
1,23,270.00
10,00,000.00
4,29,238.00
3,82,200.00
5,00,000.00
3,90,127.00
27,930.00
4,00,000.00
3,71,466.00
1,98,266.00
6,12,620.00
94,55,614.00
73,47,943.00
Debit
Page 2
Credit
94,55,614.00
73,47,943.00
2,50,641.00
1,96,940.00
4,03,211.00
6,00,000.00
15,000.00
27,000.00
6,27,569.00
14,000.00
2,250.00
11,16,750.00
9,000.00
7,250.00
1,79,722.00
9,92,429.00
2,26,788.00
6,71,305.00
2,75,588.00
62,498.00
2,250.00
5,99,227.00
6,00,000.00
6,00,000.00
7,49,730.00
1,96,940.00
2,03,211.00
2,00,000.00
2,50,641.00
3,27,569.00
3,00,000.00
5,00,000.00
3-1-2014
6-1-2014
2-2-2014
6-2-2014

Carried Over
Receipt
Receipt
Debit Note
Receipt
Receipt
Receipt
Receipt
627
638
Sales
Receipt
Receipt
Receipt
Sales
Sales
Debit Note
Debit Note
Sales
Receipt
627
722
725
756
672
673
Receipt
831
662
673
694
701
712
815
5,000.00
1,84,552.00
69,878.00
6,29,820.00
9,000.00
4,500.00
2,97,393.00
4,00,000.00
6,16,750.00
2,26,788.00
2,71,305.00
3,00,000.00
3,00,000.00
1,59,952.00
2,83,258.00
2,75,588.00
1,84,552.00
62,498.00
1,63,35,948.00 1,49,55,952.00
... continued
Attar Global Ledger Account : 1-Apr-2013 to 31-Mar-2014
Date
Particulars
Vch Type
Vch No.
Brought Forward
By
32 | P a g e
Closing Balance
Debit
Page 3
Credit
1,63,35,948.00 1,49,55,952.00
Receipt
Receipt
Debit Note
Sales
Sales
Receipt
839
840
808
809
894
4,500.00
1,44,594.00
4,75,996.00
6,29,820.00
69,878.00
2,97,393.00
1,69,61,038.00 1,59,53,043.00
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
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
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 10,07,995/33 | P a g e
the sundry debtor a/c

T/L : Corp Bank - TLS- 01 110002
TERM LOAN
Ledger Account
1-Apr-2013 to 31-Mar-2014
Particulars
Date
1-4-2013
By Opening Balance
By Interest on Term Loan
2-5-2013
3-6-2013
2-7-2013
7-8-2013
3-9-2013
34 | P a g e
Vch Type
Vch No.
Debit
Page 1
Credit
12,60,177.00
Contra
Contra
Contra
Payment
11
15
17
181
2,92,000.00
87,000.00
25,000.00
Contra
Contra
Payment
20
37
458
12,000.00
25,000.00
Payment
Payment
Journal
487
705
10,000.00
25,000.00
Payment
Payment
Journal
739
900
10,000.00
25,000.00
Payment
Payment
Journal
977
1065
999
9,000.00
25,000.00
Payment
Payment
Journal
Journal
Payment
Journal
Payment
Payment
Journal
Payment
Payment
1105
1214
1076
1076
1271
1076
1453
1544
1076
1660
1661
9,000.00
25,000.00
7,900.00
33,266.00
25,000.00
7,752.00
25,000.00
12,277.00
10,155.00
9,543.00
9,534.00
8,777.00
7,937.00
266.00
8,266.00
7,752.00

4-1-2014
6-2-2014
1-3-2014
To
35 | P a g e
Closing Balance
7,527.00
Journal
1076
Payment
Payment
Journal
1785
1888
1076
7,600.00
25,000.00
Payment
1957
7,400.00
6,442.00
Journal
Payment
Payment
Payment
Journal
7,357.00
2068
2069
2070
6,442.00
25,000.00
25,000.00
7,74,360.00
5,88,425.00
13,62,785.00
6,775.00
13,62,785.00
13,62,785.00
ANALYSIS OF TERM LOAN

1) Nature of account: The term loan a/c in the book of the limited company for the year ended 31 st
march 2014
3) Opening Balance: The opening balances of the term loan a/c should be checked from the
schedule of the sundry debtors a/c for the last year available in the audit file
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. 12,60,177/6) Check the Entries : In the account opening balance on the credit side of the a/c
a. During the year company had made the interest on loan (7527+9543+6775+12777) so on
b. During the financial year company had made the contra type payment of loan
c. During the financial year the company had made the payment with interest
7) Closing balance : The closing balanced of the term loan a/c 5,88,425.00/-
8)Check into schedule :The final balance of these account should be checked in to the schedule of
the sundry debtor a/c
BIBLIOGRAPHY
36 | P a g e
WWW.GOOGLE.COM
WIKIPEDIA
Economics times.com
SHREERAJ HARIHARAN
ROLL NO 36
M.COM PART- II
SEMESTER- III
37 | P a g e

auditPROJECT (Repaired)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

auditPROJECT (Repaired)

Uploaded by

Copyright:

Available Formats

PROJECT ON

OF LEDGER OF SYNTHIKO FOILS LTD &

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

UNDER THE GUIDANCE OF

LORD UNIVERSAL COLLEGE,

I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL COLLEGE, M.com Part-I

doing this he must weigh the cost of obtaining more reliable

ORIGIN AND EVOLUTION

Hence the emphasis was not on arithmetical accuracy but on a fair

2. Prof. L.R.Dicksee. "Auditing is an examination of accounting

IMPORTANCE, ADVANTAGES, DISADVANTAGES AND

12. High Credit Rating

18. Deceased Estate

24. Sale of Government Business

1. Evaluate financial status

2 Loan from banks

Audited accounts are readily accepted by Government authorities like Tax

The audit of accounts by a qualified auditor also help the management to

management to take decision on various matters like report in internal control

If the accounts have been audited by an independent person, disputes

transaction. He may be required to do test checking.

profitability or prospects of concern as audit dont comment on efficiency of the

INTRODUCTION OF SYNTHIKO FOILS LTD

the Company to /from companies, firms or other parties covered in the

b. In our opinion & according to the information & explanations given

LEDGER OF THE COMPANY & ITS ANALYSIS

ANALYSIS OF FIXED ASSETS

Synthiko Foils Limited - 2013-14

By Pur Aluminium Foil ( Local ) Net 5%

To Corporation Bank - CC - 6 000 6

Corporation Bank - CC - 6 000 6

ANALYSIS OF SUNDRY CREDITORS

7) Closing balance : The closing balanced of the sundry creditors 53,52,129/-

Synthiko Foils Limited - 2013-14

1-4-2013 To Opening Balance

By Corporation Bank - CC - 6 000 6

By Corporation Bank - CC - 6 000 6

ANALYSIS OF SUNDRY DEBTORS

Synthiko Foils Limited - 2013-14

By Interest on Term Loan

ANALYSIS OF TERM LOAN

You might also like