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Synopsis
ON

INVENTORY AUDIT OF TRUFORM TECHNO PRODUCT LTD, NAGPUR

SUBMITTED TO RASTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR
IN THE PARTIAL FULFULLMENT OF THE REQUIRMENT OF MASTER OF BUSINESS ADMINISTRATION (M.B.A)

UNDER THE GUIDANCE OF SUBMITED BY MR. SACHIN R. BADKHAL

M.B.A. 3RD SEM

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DATTA MEGHE INSTITUTE OF MANAGEMENT STUDIES, NAGPUR

INDEX
Sr. No. 1 2 3 4 5 6 7 8 Topics Introduction Company profile Research objective Research methodology Data collection & analysis Conclusion & interpretation Suggestion & recommendation Bibliography Page No 1-2 3-6 7 8 9 10 11 12

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INTRODUCTION The word audit is derived from the Latin word audire which simply means to discover frauds in records. In the ancient time the process of auditing was restricted to cash book. At that time when a businessmen or a trader feels any doubt about cash, then he used to appoint outsider person as auditor. Thus, an initial purpose of auditing is to discover frauds and errors in the cash book. In olden days most of the goods were produced in small scale sector. Therefore an individual who was investing capital he also maintains books of accounts himself. Therefore, there were no needs to appoint any auditor to disclose any frauds. But due to the industrial revolution trading activities increased. Therefore it was beyond the capacity of investors to check records. As a result appointment of auditor becomes compulsory. According to the Company Act, 1956 the process of auditing becomes compulsory. It is to safeguard in the interest of shareholders. At present auditing is made for all vouchers, receipts, journal, ledger etc. thus, the basic purpose of auditing is to disclose frauds of any record at any stage. According to L. R. Dicksee An audit is an examination of accounting records undertaken with a view to establishing whether they correctly and completely reflect the transactions or not. It means an auditor has not only to see the arithmetical accuracy of the accounts but he has also to see that the original entries are correct or not. An audit is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon. In this Standard, the term financial information encompasses financial statements. Compliance with the basic principles requires the application of auditing procedures and reporting practices appropriate to the particular circumstances.

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Aspects to be covered in Audit The principal aspect to be covered in an audit concerning final statements of account is the following: (i) An examination of the system of accounting and internal control to ascertain whether it is appropriate for the business and helps in properly recording all transactions. (ii) (iii) (iii) (V) (vi) Reviewing the system and procedures. Checking of the arithmetical accuracy of the books of accounts. Verification of the authenticity and validity of transactions in the books of Accounts Verification of the liabilities stated in the balance sheet. Checking the result shown by the profit and loss and to see whether the results Shown are true and fair. (vii) Reporting to the appropriate person/body. (viii) Examination of Bank Reconciliation Statement.

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COMPANY PROFILE

Name Of The Company: Truform Techno Products Ltd. Corporate / Work Office: At Village Kawtha, Tah-Kamptee, Dist-Nagpur-441002, Maharashtra, India. Email- info@ttplngp.com www.ttplngp.com

Website-

Truform Techno Products Ltd. Is a prominent manufacture of cast and iron and all type of alloy castings like brake coupling, Brake Body, Pulleys, Brackets, Pig Molds, Gear Boxes etc. with an installed capacity of 10000 MT per annum. Along with specialized casting equipments for power plants and Ginning machine components, the company is also catering to various other industries like material handling, Steel Plants, Pumps and Valves manufacturer, to name a few. The efficient and experienced technical team of the company is dedicated to meet the international quality standards and the stringent customer requirements with an optimum production lead time. The company has proven its efficiency by submitting the sample castings in a record time of 30 days with the application of art Magma Simulation Software. The plant is located in Zero Mile of India, Nagpur having the facility of dry container port and economical logistics due to centralized location advantage. The team at Truform Techno Products Ltd. Comprises of well experienced metallurgists and engineers to understand and cater to customer requirements.

MISSION OF THE COMPANY The most priority of the Truform Techno Products Ltd. is customer satisfaction by providing quality products and services? All their efforts are focused for their customers. For them QUALITY is of paramount importance and the same is achieved by stringent quality system involving rigorous quality assurance checks at various stages of product development and production. They at TRUFORM Techno Products Ltd. believe in consistently producing castings in the TRUE FORM and with complete technical compliance.

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OBJECTIVE OF THE COMPANY Following are the objectives of the company Increasing turnover and sustain growth Increasing customer satisfaction Reducing overall cost Reducing rework and repairs in foundry and machine QUALITY POLICY OF THE COMPANY They at Truform Techno Products Ltd, Nagpur are committed to manufacture, supply cast iron pipes, fittings and castings that meet their customers statuary and regulatory requirements. They will strive to continually improve all their activities to enhance customer satisfaction and organizational performance. They will consistently work to fulfill this policy through collective participation of all employees.
PRODUCTS OF THE COMPANY

Industrial equipment Mining Pumps and valves Lift equipment Machine tools

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Research Objective
To detect and prevention of Errors.

To detect and prevention of Frauds.

To examine the accounting entries recorded in the books of accounts.

To examine the authenticity of the transactions recorded in the books of account.

To examine the accuracy and reliability of bills.

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Research Methodology
For the purpose of research we need to make a audit plan & according to that plan do the research so in that we collect the data from various sources & drawn the conclusions from that & give the suggestion at last Audit plan (a) (b) (c) (d) (e) Formulating audit plan and laying down broad framework for conducting the work and method to ensure control over the quality of work. Examination and evaluation of the nature, extent and efficacy of the system of internal control. Ascertaining the arithmetical accuracy of the books of accounts. Examining the documentary evidence and the authority in support of the transaction: Checking the validity of transactions with reference to: (i) (ii) (iii) (iv) (g) Rules and regulations governing the constitution and management of the organization Minute books for appropriate sanction; Other legal documents and Well recognized accounting principles and practices

Verification of existence, title and value of the assets and determination of the extent and nature of liabilities.

(h)

Application of various overall checks in order to test the overall reliability of the accounting records and the statements and to see whether the results of overall checks corroborate the findings already made.

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Data Collection & Analysis

The primary data we collect from the various financial statements of the company like a) Bank A/c statement b) Bank Book c) Stock book d) Purchase book e) Sales book f) Journal book

The secondary data collect from the various financial & auditing books & also from the websites. Data Analysis After the all data collecting from the source analyses the data. In that some result we drawn & on that basis conclusion & suggestion will be given after the studding

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Conclusion & Interpretation

After all data analyzing some conclusion & interpretation will be given after the depth study and review.

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Suggestion
Suggestion will be given after the depth study.

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Bibliography

www.google.com Text Book On Auditing & Tax Auditing & Assurance

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