Mumbai Kamgar M.G.S.S.Maryadit CKS: Apna Bazar Co-Op Department Store (Mulund)

Interim Statutory Audit Report Apna Bazar Co-Op.
Half Year Ended Sept’2018 Charkop Dept. Store

Interim Statutory Audit Report
MUMBAI KAMGAR
M.G.S.S.MARYADIT CKS
APNA BAZAR CO-OP DEPARTMENT STORE
(MULUND)
By Sanjay Rane & Associates (Chartered Accountants)

Period: From 1st April 2018 to 30th September 2018
Sanjay Rane & Associates 1

Chartered Accountants
APNA BAZAR
CHARKOP DEPARTMENTAL STORES
AUDIT PERIOD 01.04.18 TO 30.09.18
INDEX
Sr. No. Particulars Page No.

1 Half Yearly performance, 3
Compliance, Staff Strength, Internal Control
2 Balance sheet Scrutiny 7
3 Profit & Loss Scrutiny 12
4 Irregularities & Suggestions 15
5 Annexures 16

Mumbai Madhyavarti Grahak Sahakari Sanstha Maryadit

Apna Bazar Departmental Store: Charkop
Statutory Audit Report: 01.04.2018 to 30.09.2018
1. HALF YEARLY PERFORMANCE:

1.01 Financial overview:
Particulars Half year ended Half year ended Growth /
Sept’2018 Sept’2017 (Decline)
(Rs. In Lakhs) % (Rs. In Lakhs) % (Rs. In %
Lakhs)
Sales 510.19 100 570.51 100 (60.32) (10.57)
Cost of Sales 446.45 87.51 493.75 86.55 (47.30) (9.58)
Direct Income 4.55 0.89 7.27 1.27 (2.72) (37.41)
Direct Expenses 10.22 2.00 8.46 1.48 1.76 20.80
Gross Profit 68.29 13.38 84.03 14.73 (15.74) (18.73)
Indirect Income 55.56 10.89 49.47 8.67 6.09 12.31
Indirect Expenses 82.51 16.17 80.73 14.15 1.78 2.20
Net Profit / (Loss) 41.33 8.10 52.77 9.25 (11.44) (21.68)
Analysis of the above tabulated financials,

 From the above table, it is observed that the Sales have decreased by Rs. 60.32 Lakhs
i.e. 10.57 % as compared to corresponding previous period April 2017 to September
2017.
 Direct expenses have increased by Rs. 1.48 Lakhs i.e. 20.80%.
 Gross profit has decreased by Rs. 15.74 Lakhs i.e. 18.73% as compared to previous
period April 2017 to Sept. 2017. This is mainly due to reduction in Sales & decrease in
direct income. The Direct income has been reduced by Rs. 2.72Lakhs which is 37.41%
of the sales of the period April 2017 to Sept. 2017.
 Net profit has decreased by Rs. 11.44 Lakhs i.e. 21.68 % as compared to previous
period April 2017 to Sept.2017.
 The financial performance of the department during the current audit period is
comparatively not as good as previous corresponding audit period April 2017 to
September 2017, considering the gross profit and net profit.

Variations in the financial performance can be easily understood by the following
graphical presentation (y axis reflect INR in Lakhs)
1.02 RATIO ANALYSIS:

Year ended Year ended
Ratios
September’18 September’17
Stock Turnover Ratio 10.38 times 6.83 times
Gross Profit Ratio 14.20% 14.73%
Net Profit/(loss) Ratio 8.10% 9.25%
Observation:
 Stock turnover ratio has increased as compared to corresponding previous
period.
 Since the inventory turnover has increased, it means sanstha is selling goods
very quickly and there is good demand for their product.
 Gross profit ratio has decreased to 14.20% from 14.73% during the audit period April
to Sept 2018. The Net Profit Ratio has also decreased as compared to April 2017 to
September 2018.
1.03 Half Yearly Comparative Sales Performance:

 Product wise turnover is as follows:
Year ended Year ended Growth

Particulars Sept 2018 Sept 2017
(Rs. In % (Rs. In % (Rs. In %
Lakhs) Lakhs) Lakhs)
TOTAL SALES 510.19 100.00 570.51 100.00 (60.32) 10.57
COUNTERS 16.38 3.21 31.70 5.56 (15.32) 48.33

UMBRELLA 2.60 0.51 2.25 0.39 0.35 15.56
PROVISION 491.21 96.28 536.56 94.05 (45.35) 8.45
1.04 Half Yearly Comparative Purchase performance:

 Product wise purchase is as follows:
Particulars Year ended Year ended Growth
Sept 2018 Sept 2017
(Rs. In % (Rs. In % (Rs. In %
Lakhs) Lakhs) Lakhs)
TOTAL PURCHASES 442.62 100.00 516.09 100.00 (73.47) 14.24
COUNTERS 13.71 3.10 24.64 4.77 (10.93) 44.36

PROVISION 427.06 96.48 491.22 95.18 (64.16) 13.06
UMBRELLA 1.85 0.42 0.22 0.043 1.63 740.91
1.05 Half Yearly Comparative purchase & Sales Performance:

(Rs. In Lakhs)
Particulars Year ended Sept 2018 Year ended Sept 2017
Purchase Sales Purchase Sales

COUNTERS 13.71 16.38 24.64 31.70
PROVISION 427.07 491.21 491.22 536.56
UMBRELLA 1.85 2.60 0.22 2.25
TOTAL 442.63 510.19 516.09 570.51

Variations in comparative Purchase & sales for the period April ’18 to September ‘18 can be
easily understood by the following graphical presentation, (y axis reflect INR In lakhs)
2. Sales Target:
 As informed head office had set a target of Rs. 650.61 Lakhs for the period ending 30 th
September 2018; however the department store achieved sales of Rs. 510.19 Lakhs,
which indicates that department has failed to reach its target. Efforts should be made
to increase sales turnover. There was a shortfall in sales by Rs. 140.42 Lakhs.
3. Internal Audit & Inspection:

 The entity has internal audit team. The team conducts internal audits on quarterly
basis and submits the report to Head Office. During the audit period, internal audit for
the first two quarters i.e. from April’18 to Sept’18 was conducted.
 Accounting of departmental store is carried out in Tally ERP as well as in SANVIK
software. Purchase Register is maintained in SANVIK software and the balance part is
covered in Tally.
4. Compliance:
 Branch has sent rectification report to head office complying the observation in the
audit report for the period ended 31st March 2018.
5. Rental Income:
 Departmental store has practice of letting out counters for which they charge fixed
amount per month as rent.

 The deposits received from the parties have been transferred to head office as on 30 th
September 2018.The rent agreement of Arvind Sawant(fast food counter) have expired,
& have not been renewed. (Refer Annexure 1)
SCRUTINY OF BALANCE SHEET:

6. Liability Side
6.1 Provision For Other Expenses Rs. 5,54,408/-
 Sanstha follows mercantile accounting policy for expenses and makes provision
for expenses incurred at the end of the month.
 Journal vouchers are verified along with authorized supporting and found
same in order.
Particulars Amount
Salary – Permanent staff 2,58,253
Salary – Temporary staff 13,054
Electricity Expenses 1,61,600
Telephone Expenses 4,100
Water Charges 59,200
House Keeping Expenses 16,100
Sundry Expenses- Officers 1,779
General Expenses (Dept) 1,347
Conveyance & Travelling 665
Discount on Sodexo Card 5,108
Discount on Yes Bank 4,821
Discount on Bank Card- UTI 621
Sundry Exp- Stock 15,270
Sundry Exp- Staff 365
Salary others (D) 2,200
Weekly off Allowance- Officers 350
Daily Wages 7,800
Sundry Exp- others 1,775
Total 5,54,408.00
6.2 Sundry Creditors :Rs. 53,41,992.60/-

 Age wise details of sundry creditor outstanding for long are not available.

 From the above creditors, creditors of Rs. 2,29,063 are pending for more than 12
months. The society must take action against these outstanding balances and
clear it earliest. (Refer Annexure 3)
6.3 Sundry Creditors Expenses: 1,17,395/-

 It includes
Particulars Amount
Adroit labels & technologies 41,312.00
Bright Packaging 38,054.00
Rama packing industries 27,140.00
Sunidhi stationary point 10,889.00
TOTAL 1,17,395.00
6.4 Sundry Creditors -others: 2,04,573.89

 It includes old Sundry creditors, department should make efforts to make the
payment to respective parties.
 Wherever payment is not possible the same may be written back after proper
approval.
 Includes –
Particulars Amount
Sundry creditors old -2008 88,406.39
Sundry creditors old 2011-12 1,16,167.50
Total 2,04,573.89
6.5 Bank O/D: Rs. 3,67,882.34/- Cr.

 Department has maintained OD account with the Apna Sahakari Bank.
 The account is reconciled as on 30.09.18.

7. ASSET SIDE :
7.1 Fixed Asset
 Asset account is maintained at head office & additions / deletions at branch
transferred to H.O.
 No addition or deduction to fixed assets during the year.
7.2 Closing Stock: Rs. 49,16,712/-

 It includes:
Particulars Amount
Provision 48,68,711.00
Umbrella 5,233.00
Denish 42,768.00
Total 49,16,712.00
 Departmental store has carried out physical verification of stock on 27.09.2016. It

has observed shortage in Provision and Umbrella amounting to Rs.(0.59) Lakhs
(Refer Annexure 4)

7.3 Loans & Advances (Assets): 30,000/-

 It includes advance given for expenses made during stock Annamat
7.4 Sundry Debtors: Rs. 17,55,854.65/-

 Debtors outstanding as on 30.09.18 are as follows.
Name of Debtors Amount
Sundry Debtors – Bank Cards 4,97,364.00
Sundry Debtors – Mobile wallet 3,213.00
Sundry Debtors – Others 7659.65
Sundry Debtors – Card 2,04,327.00
Sundry Debtors – Rent Income 10,27,693.00
Sundry Debtors-Coupons 15,598.00

Total 17,55,854.65
7.5 Cash in hand: Rs. 3,07,431/-

 Cash was physically counted by manager as on 30.09.2018 as per the instruction
given by the Head Office.
 Cash was physically verified by us on 14.12.2018 and found in order.
7.6 Deposit BSES/MTNL/Municipal corporation: Rs. 2,30,175/-

 This consists of deposit made with B.M.C. dept., P.C.O., Security (Reliance) &
Tata Indicom.
7.7 Stock of Packing materials & Others: Rs. 43,008/-

 This refers to un-utilized stock of packing material as on 30.09.2018.
 Verified invoice for packing material along with stock sheet and found same in
order.
7.8 Other Income Receivable: Rs. 1,21,794/-

 Income receivable pertains to the followings :

Particulars Amount Remarks
Received within 2
Electricity Expense- Receivable 1,02,794
months
Received in Oct,
Ganpati Advance 13,500
2018
Received in Oct,
Outstanding Income 5,500
2018
Total 1,21,794
7.9 Prepaid Expenses: Rs. 6,78,020/-

 It includes the following:
Particulars Amount
B.M.C Gumasta License 4,497.00
Licence 9,688.00
Property Tax 6,20,410.00
Press control 37,462.00
Music Sasteam 3,000.00
Verification fees 561.00
License Fees 2,402.00
Total 6,78,020.00
7.10 Head office Reconciliation: Rs. 26,44,603.37

 Branch accounts are reconciled as on 30.09.2018.
 For confirmation, department takes signature of the branch in charge of respective

branches or departments along with a stamp on reconciliation statement.
Scrutiny of Profit & Loss Account

8. Income side:
8.1 Direct Income:Rs. 4,54,876.34/-
 It includes income received from following:
Particulars Amount
Discount Received 66,005.50
Sales of Gunny bags 36,979.84
T.O.T Income 3,51,891.00
Total 4,54,876.34
8.2 Indirect Income: Rs. 55,56,373.02/-

 It includes income received from following:
Particulars Amount
Other Income–Counter Rent 2,30,980
Other Income–Demo & Display 2,54,445
Other Income-Premises Rent 50,50,095
Other Income 16,059
Other Receipts 4,794.02
Total 55,56,373.02
9. Expense side:
9.1 Rebate Coupon: Rs. 12513.50/-
 This pertains to rebate coupon issued to members by sanstha.
9.2 Discount: Rs. 4,01,743.10/-

 It includes:
Particulars Amount
Discount on Cash sale 1,075
Discount on Sodexo Coupon 12,482
Discount on Coupon- Ticket 1,438
Discount on Mobikwik E Wallet 110
Discount on Paytm 773.21
Discount on Sodexo card 1,38,878.35

Discount on Yes Bank 2,46,986.54
Total 4,01,743.10
9.3 Other Expenses: Rs. 47,599.26/-

 It includes:
Particulars Amount
APMC Expenses 429717.34
GPRS charges (Yes Bank) 34,293.92
Int. on Akshay Labh 8,885.00
Transport Charges 3,100.00
Total 47,599.26
9.4 Packing Material: Rs. 1,31,484/-

 Verified invoice for packing material along with stock sheet and found same in
order as on 30.09.2018.
9.5 Repairs & Maintenance: Rs. 1,93,676.39/-

 Expenses on account of repairs and maintenance have increased by Rs. 31,217.59
as compared to period ended 30.09.2017.
9.6 Advertisement Expenses: Rs. 25,509/-

 Department has booked expenses incurred on payment basis & paid on
department level and made further provision @ 0.05% of Sales which is then
transfer to head office as per instruction of head office.
9.7 Rent, Rates and Taxes: Rs. 9,24,489/-

 Expenses on account of Rent, Rates and Taxes have increased by Rs. 1,61,182 as
compared to period ended September 2017.
9.8 Printing & Stationery: Rs.51,018/-

 Department has policy to book expenses on payment basis at department level
and make further provision @ 0.10% of sales to head office as per instruction of
head office.
9.9 Audit Fees: Rs. 25,509/-

 Department has made provision of 0.05% of Sales to Head office as per instruction
of head office for department shares of expenses incurred by Head office.
9.10Depreciation: Rs. 2,01,080.00/-

 Department has policy to book depreciation at 10% on opening WDV and 5% on
additional fixed asset during the period.
9.11Bank Charges: Rs. 15,000/-

 Bank charges include interest on OD account maintained by branch, same should be
shown separately under Bank Interest.
9.12Building Expenses: Rs. 7,17,928/-

 Building Expenses includes Property Tax and Water charges.
9.13Other Expenses: Rs. 10,57,097.19/-

 It includes following expenses incurred during the period:
Particulars Amount
Bank and other interest 70,3820
General expenses 1,36,832.19
Housekeeping expenses 1,57,049
Telephone expenses 25,491
Consultancy fees (HO) 25,509
Conveyance & travelling 4,136
Meeting expenses 4,260
Total 10,57,097.19

9.14Salary: Rs. 50,40,157/-

 Salary expenses includes amount of salary of department & salary appropriation
of Head Office.
 Salary has increased by Rs. 37,135 as compared to period ended 30th September
2017.
 Department has made 50% of Gross Salary to Head office for Head office share of
Provident Fund, E. S. I. C. etc. as per instruction of Head office.
Irregularities and Suggestions:
1. Quantity wise details must be maintained for the movement of inventory from
godown to racks for sale, stating quantitative details, coding and numbering of
each & every item. It will help to reduce shortages and result in effective control.
2. Inter-branch reconciliation as well as reconciliation with head office must be
carried out on monthly basis.
3. Dead stock register should be maintained at departmental level stating
quantitative details, coding and numbering of each & every item etc. to be done
and surprise checks should be conducted at regular intervals.
4. Daily packing should be verified & signed by Department Manager. In case of
wastage, goods should be destroyed in presence of Manager, Supervisor, Local
Committee Member & Security guard and Wastage register should be signed by
them.
ANNEXURES

ANNEXURE 1
Following are the details of the counters:
Deposits Agreement Remarks
Particulars Rent/commission
Received period
Agreement not
Arvind Sawant 37,335 p.m. + GST + 01.05.2016 to found for the
1,00,000/-
(Fast Foods) Electricity charges 30.04.2017 current audit period
-
Arihant Lifestyle 06.05.2018 to
31,000 + GST 1,00,000/-
LLP 05.05.2019
M/S. P.S. -
21,080 p.m. + GST + Electric 01.07.2018 to
Subbiyya 50,000/-
charges. 30.06.2019
(Idli counter)
60,000 + GST. -
Apna Sahakari 01.01.2008 to
At escalated rate 15% after 3 40,00,000/-
Bank Ltd. 31.12.2018
years.
Master Genius 01.05.2016 to -
73,913 p.m. + GST 1,50,000/-
Academy 30.04.2019
Indus Towers 16.03.2013 to -
1374.63 per day 1,00,000/-
Ltd. 15.08.2018
-
Anand Steel 10.09.2017 to
60,000 p.m. + GST 3,00,000/-
Corporation 09.12.2018
Rajendra Kumar 40,000 p.m. (Including GST) -

1.10.2014 to
Kesaram At escalated rate 10% after 2,50,000/-
30.09.2019
(Medical) two years.
01.04.2017 to -
Anant caterers 3,75,000 + GST 22,50,000/-
31.03.2022
10,500 per person + TDS 01.01.2018 to -
S.K. Enterprises -
including TDS 31.03.2019
Jayesh Gayaki Sanstha take 500/- per day No Agreement was
vegetables for 28 day a mounth. made.
ANNEXURE 3
Long pending sundry creditors (>12 months):-

Particulars Amount

AASHIRWAD ENTERPRISES 16308 2,153.00
ADIVASI FOOD PRODUCTS PVT.LTD
17292 2,283.00
ARYAN 'S GRUHA UDYOG 16270 2,764.00
ASHISH MARKETING-8281. 4,567.00
BREADKRAFT PRODUCTS - 14313 1,436.00
CHARAK PHARMA PVT. LTD. ( 16937 ) 5,539.00
CLASSIC SALES ENTERPRISE 16734 440.00

DRUMS FOOD INTERNATIONAL PVT
LTD 17572 17,249.00
GLOBAL TRADING 17655 5,838.00
GLOBE ENTERPRISES 16213 3,721.00
HECTOR BEVERAGES PVT.LTD. 17315 2,550.00
HIMANI ARTS 17291 3,653.00
JAIN FARM FRESH FOODS LTD.-18027 1,248.00
JYOTHY LABORATORIES LIMITED 16592 67,730.00
KAILASH AGENCY 16329 17,446.00
KASHINATH SUBHASH AKUDE 16966 500.00
M/S SHREE MAHALAXMI FOOD
PRODUCT-15705 7,705.00
ORIENT ENTERPRISES 16139 35,183.00
PARAG MILK FOODS LTD. 17676 18,576.00
RISHABH ENTERPRISES 16904 6,354.00
SARJENA FOODS PVT LTD. 15769 174.00
SHREE GAJANAN ENTERPRISES 17370 673.00
SUMAN ENTERPRISES 4,044.00
TAHERI SALES 17378 2,470.00
VISHOT AGENCIES-16624 7,090.00
YASHODA DAIRY 1,858.00
YUSUF MEHERALLY CENTRE-941. 5,819.00
Total 2,29,063.00
Long pending entries if not payable should be written back after proper approvals.
ANNEXURE 4
Details of Shortage/Excess of Stock as per 30.09.2018

Balance as per Balance as per (Shortage)/
Section Liability Register Stock Sheet Excess
6,202,16 6,211,163.
Provision 9.00 00 8,994.00
6,9 5,331.
Umbrella 80.00 00 (1,649.00)
62,09,14 62,16,494.
TOTAL 9.00 00 7345.00
Vote of Thanks:
We express our sincere gratitude for the support & co-operation received from the
manager, the staff and local committee members during the course of audit.
Place: Mumbai For Sanjay Rane & Associates

Date: Chartered Accountants



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Mumbai Kamgar M.G.S.S.Maryadit CKS: Apna Bazar Co-Op Department Store (Mulund)

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Interim Statutory Audit Report Apna Bazar Co-Op.

Half Year Ended Sept’2018 Charkop Dept. Store

By Sanjay Rane & Associates (Chartered Accountants)

Sanjay Rane & Associates 1

Sr. No. Particulars Page No.

Sanjay Rane & Associates 2

Mumbai Madhyavarti Grahak Sahakari Sanstha Maryadit

1. HALF YEARLY PERFORMANCE:

Analysis of the above tabulated financials,

Sanjay Rane & Associates 3

1.02 RATIO ANALYSIS:

1.03 Half Yearly Comparative Sales Performance:

Year ended Year ended Growth

COUNTERS 16.38 3.21 31.70 5.56 (15.32) 48.33

1.04 Half Yearly Comparative Purchase performance:

COUNTERS 13.71 3.10 24.64 4.77 (10.93) 44.36

1.05 Half Yearly Comparative purchase & Sales Performance:

Purchase Sales Purchase Sales

Sanjay Rane & Associates 5

3. Internal Audit & Inspection:

Sanjay Rane & Associates 6

SCRUTINY OF BALANCE SHEET:

6.2 Sundry Creditors :Rs. 53,41,992.60/-

Sanjay Rane & Associates 7

6.3 Sundry Creditors Expenses: 1,17,395/-

6.4 Sundry Creditors -others: 2,04,573.89

6.5 Bank O/D: Rs. 3,67,882.34/- Cr.

 The account is reconciled as on 30.09.18.

Sanjay Rane & Associates 8

 No addition or deduction to fixed assets during the year.

7.2 Closing Stock: Rs. 49,16,712/-

 Departmental store has carried out physical verification of stock on 27.09.2016. It

Sanjay Rane & Associates 9

7.3 Loans & Advances (Assets): 30,000/-

7.4 Sundry Debtors: Rs. 17,55,854.65/-

Name of Debtors Amount

Sundry Debtors – Bank Cards 4,97,364.00

Sundry Debtors – Mobile wallet 3,213.00

Sundry Debtors – Others 7659.65

Sundry Debtors – Card 2,04,327.00

Sundry Debtors – Rent Income 10,27,693.00

Sundry Debtors-Coupons 15,598.00

7.5 Cash in hand: Rs. 3,07,431/-

 Cash was physically verified by us on 14.12.2018 and found in order.

7.6 Deposit BSES/MTNL/Municipal corporation: Rs. 2,30,175/-

7.7 Stock of Packing materials & Others: Rs. 43,008/-

7.8 Other Income Receivable: Rs. 1,21,794/-

Sanjay Rane & Associates 10

7.9 Prepaid Expenses: Rs. 6,78,020/-

B.M.C Gumasta License 4,497.00

Property Tax 6,20,410.00

Press control 37,462.00

Music Sasteam 3,000.00

Verification fees 561.00

License Fees 2,402.00

7.10 Head office Reconciliation: Rs. 26,44,603.37

 For confirmation, department takes signature of the branch in charge of respective

Scrutiny of Profit & Loss Account

8.2 Indirect Income: Rs. 55,56,373.02/-

9.2 Discount: Rs. 4,01,743.10/-

Sanjay Rane & Associates 12

9.3 Other Expenses: Rs. 47,599.26/-

9.4 Packing Material: Rs. 1,31,484/-