ASISH DEY & CO 4/31 Jahura Bazar lane

Chartered Accountants Kasba, Kolkata 700 042

Mob no:9830954385
Mail:asishdey@rediffmail.com
INTRODUCTION

1.1 We have carried out the internal audit of accounts and affairs of BESCO LIITED,
FOUNDRY DIVISION for the month of January 2017.

1.2 Our observations / comments based on the checking made at the Baruipur
Factory are given here under along with suggestions for improvement. The matters,
which in our opinion are not material, have not been dealt with in this report.

1.3 The report is summarized into different sections as given below:-

 Report on daily accounting activity of the company pertaining to verification of bills

of contractors, sub-contractors and suppliers.

 Report on the excise activity- correctness of input credit taken and whether the
excise activities are carried out in accordance with the applicable law.

 Report on payroll – its calculation and correctness of documentation and

statutory compliances
Report on excise activity- whether the excise activities are carried out in
accordance with the applicable law

(a)We have carried out the in depth checking of all the relevant bills/invoice
pertaining to the central excise. We have also checked the relevant records and
the relevant calculation to find out whether CENVAT credit has been taken
accurately or not. From the analysis we have the following
observation :-Mismatch between Invoices and excise records FOR THE
MONTH OF JANUARY 2017:
(a)2. Discrepancies found between Excise records an Invoices-

Serial No. Invoice Type of mismatch Amount as Amount as Status

no. per invoice per
Statement

928 62280035 CENVAT CREDIT 130.00 1264.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

941 56 CENVAT CREDIT 110000.00 11000.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

963 62282286 CENVAT CREDIT 657.00 675.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

984 62282303 DUTY PAID TO 8054.00 8054.00 Excise

MANUFACTURER, records
BUT IT HAS BEEN rectified
WRONGLY
RECORDED IN THE
COLUMN OF
DEALER.

980 62282726 DUTY PAID TO 525.00 525.00 Excise

MANUFACTURER, records
BUT IT HAS BEEN rectified
WRONGLY
RECORDED IN THE
COLUMN OF
DEALER.

971 303 CENVAT CREDIT 74531.00 74331.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

911 62281777 CENVAT CREDIT 647.00 1456.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

923 62231303 DUTY PAID TO 181.00 181.00 Excise

MANUFACTURER, records
BUT IT HAS BEEN rectified
WRONGLY
RECORDED IN THE
COLUMN OF
DEALER.

936 62281880 CENVAT CREDIT 111.00 885.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

957 62282192 CENVAT CREDIT 272.00 270.00 Excise

AMOUNT WRONGLY records
RECORDED. rectified

ANALYSIS STATEMENT FOR THE MONTH OF JANUARY 2017

ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

DUTY ANALYSIS STATEMENT FOR THE MONTH OF JANUARY 2017

ANALYSIS OF RG-23A PART II

Basic duty Edu Hedu Other Total

cess cess duty

OPENING BALANCE AS ON 28540.00 21713.00 50253.00

1.1.17

ADD.: CENVAT CREDITED 544051.00 3261.00 547312.00

FOR THE MONTH

Duty available 572591.00 24974.00 597565.00

LESS CENVAT DEBITED FOR 566080.00 7475.00 573555.00

THE MONTH against
despatch

LESS CENVAT DEBITED 0.00 0.00 0.00

against rejection
return/DUTY REVERSE

LESS CENVAT REVERSED 0.00 0.00

against excess credit taken

CLOSING BALANCE AS ON 6511.00 17499.00 24010.00

31.1.17

ANALYSIS OF RG-23C PART-II

Basic Edu Hedu Other Total

duty cess cess duty

OPENING BALANCE AS ON 1.1.17 7619.00 0.00 7619.00

ADD.: 50%REMAINING BALANCE 0.00 0.00

OF LAST YEAR
ADD.: CENVAT CREDITED FOR 6713.00 0.00 6713.00
THE MONTH

Duty available 14332.00 0.00 14332.00

LESS CENVAT DEBITED FOR THE 0.00 0.00 0.00

MONTH against despatch

LESS CENVAT DEBITED against 0 0.0

rejection return .00 0

LESS CENVAT DEBITED against 0.00 0.0

excess credit taken 0

CLOSING BALANCE AS ON 14332.00 0.00 14332.00

31.1.17
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

ANALYSIS OF SERVICE TAX FOR THE MONTH OF JANUARY 2017:

Basic Cess Cess S.B. Krishi Total
S.Tax 2% 1% Cess Cess

OPENING BALANCE AS ON 75515.0 1528.0 1213. 14608.0 4375. 97239.0

1.1.17 0 0 00 0 00 0

ADD:CREDIT TAKEN DURING 24943.0 0.00 0.00 891.00 891.0 26725.0

THE MONTH 0 0 0

BALANCE AVAILABLE 100458 1528. 1213. 15499. 5266. 12396

.00 00 00 00 00 4.00

LESS:DEBIT IN THE MONTH 92400.0 0.00 0.00 0.00 0.00 92400.0

0 0

LESS:REVERSE IN THE MONTH 0.00 0.00 0.00 0.00 0.00 0.00

CLOSING BALANCE AS ON 8058.0 1528. 1213. 15499. 5266. 31564.

31.1.17 0 00 00 00 00 00

 Report on payroll –its calculation and correctness of documentation and

statutory compliances

NOTE: ATTENDANCE RECORDS OF Dr ANIRBAN GHOSH NOT FOUND

Following errors are rectified during the course of audit;

ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

Name of Type of error Attendance Actual Status

workers/trainee/tic before attendance
ket number rectificatio after
n rectificatio
n

Viswa Biswas(0498) Attendence not 23.625 23.750 WAGES sheet

properly rectified.
recorded.

Samir Adhikary(0894) Attendence not 21.500 21.375 WAGES sheet

rectified
properly
recorded.

Rajdeo Singh(1840) Attendence not 14.750 15.750 WAGES sheet

rectified
properly
recorded.

Jagadish Attendence not 23.750 23.875 WAGES sheet

rectified
Sardar(4021) properly
recorded.

Gobinda Attendence not 20.625 20.500 WAGES sheet

rectified
Chakraborty(4108) properly
recorded.

Sailen Naskar(4160) Attendence not 23.125 23.625 WAGES sheet

rectified
properly
recorded.

Bapi Mondol(Trainee) Attendence not 18.500 18.375 WAGES sheet

rectified
properly
recorded.

Santanu Attendence not 14.00 12.00 WAGES sheet

rectified
Dalui(Trainee) properly
recorded.

Gouranga Attendence not 22.875 21.750 WAGES sheet

rectified
Das(Trainee) properly
recorded.

Priyabrata Attendence not 18.00 16.875 WAGES sheet

rectified
Pal(Trainee) properly
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

recorded.

Prasenjit Attendence not 8.00 8.125 WAGES sheet

rectified
Adak(Trainee) properly
recorded.

Rohibulla Attendence not 16.625 14.500 WAGES sheet

rectified
Pailan(Trainee) properly
recorded.

SK Nurul Hasan Attendence not 21.500 20.500 WAGES sheet

rectified
Kazi(Trainee) properly
recorded.

Sunil Yadav(Trainee) Attendence not 23.00 22.875 WAGES sheet

rectified
properly
recorded.

Chitra Dalui(Trainee) Attendence not 20.500 20.375 WAGES sheet

rectified
properly
recorded.

Following errors are rectified during the course of audit:

Name of STAFFS Type of error Attendance/ Actual Status

LEAVE attendance
before /LEAVE
rectification after
rectification

Soumalya Ganguly Attendence/leave 21+0 21+8 SALARY sheet

not properly rectified.
recorded.

Ranjit Jha Attendence/leave 28+1 29+0 SALARY sheet

not properly rectified.
recorded.
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

Satyendra Kr. Singh Attendence/leave 19+0 19+10 SALARY sheet

not properly rectified.
recorded.

Following errors are rectified in O.T. register:

Name of Type of error O.T. O.T. Status

workers/trainee/tic recorded recorded
ket number before after
rectificatio rectificatio
n n

Hemanta Kar(Trainee) O.T. not recorded 0 1 WAGES sheet

in wages sheet. rectified.

Following errors are rectified in leave register:

Name of Type of error Leave Actual leave Status

workers/trainee/tic recorded after
ket number before rectificatio
rectificatio n
n

Shyamal Kr Leave not 0 1 WAGES sheet

Sanpui(0259) properly rectified.
recorded.

Shyamal Kumar Leave not 0 2 WAGES sheet

Das(4111) properly rectified.
recorded.

Bapi Mondol(Trainee) Leave not 2 4 WAGES sheet

properly rectified.
recorded.

Prasenjit Leave not 0 1 WAGES sheet

adak(Trainee) properly rectified.
recorded.

Ananda Leave not 0 2 WAGES sheet

Mondal(Trainee) properly
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

recorded. rectified.

GENERAL OBSERVATION & SUGGESTIONS:

1.1 ATTENDANCE RECORDS OF THE WORKERS WHO ARE UNDER THE
CONTRACTORS PAYROLL IS NOT BEEN PROPERLY REFLECTED UNDER THE
‘BIOMETRICAL SYSTEMS’ RESULTING IN DOUBLE CHECKING OF THE
SAME RECORDS WITH THE MANUAL RECORDS.
1.2 SIGNATURE OF MANAGER NOT FOUND IN WAGES ATTENDANCE
REGISTER COPY.

SALARIES & ALLOWANCES FOR THE MONTH OF JANUARY 2017:

Comparative analysis of salary for the current month vis-a-vis last month:

Nov-16 Dec-16 Jan-17

Particulars of employee
Directors 28,876.00 28,876.00 28,876.00
5,06,971.00 8,01,560.00 5,53,936.00
Managers
3,12,595.00 2,89,250.00 2,89,250.00
Manager perks
1,80,050.00 2,08,550.00 1,78,550.00
voucher
1,97,987.00 2,23,526.00 2,02,346.56
Staf
Staf perks 28,964.40 18,174.81 18,383.71
Trainee 7,377.00 6,877.00 13,601.35
4,91,590.67 4,59,602.27 5,11,972.14
Contractual employees
1,79,954.83 1,85,469.52 1,95,152.26
Contractual perks
Voucher employees 97,370.78 97,879.39 91.187.81
&GANGA SINGH&OTHERS
20,31,736.68 23,19,765.19 20,83,255.83
Gross Net Pay
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

Comparative analysis of WAGES for the month of DECEMBER 2016 vis-a-vis

SEPTEMBER 2016 & OCTOBER 2016

Particulars SEPTEMBER 2016 OCTOBER 2016 DECEMBER 2016

Gross earning 19,13,970.73 19,51,037.22 18,95,815.76
Less deduction:-
1,76,480.00
Provident fund 1,72,263.00 1,78,298.00
ESI 33,401.00 34,198.00 33,207.00
Professional Tax 12,910.00 13,250.00 12,310.00
LIC 2,328.00 2,328.00
2,052.00
Co-operative 41,972.00 39,043.00
33,449.00
Advance 0.00 0.00
Company loan 2,000.00 2,000.00 0.00

Bonus 0.00 0.00 1000.00

Welfare 0.00 0.00 0.00
Special advance 0.00 .8,38, 000.00 606.00
Present coin 703.72 641.08
8,44,652.04

561.65

Net Pay 16,48,393.01 8,43,279.14 7,91,498.07

NOTE; In biometric device in some occasion instead of arrival and departure time the device
is showing ‘NA’ so for the specific day calculation of actual working hours is not possible.
We have also checked the attendance register of the concerned department to see whether
on that particular day the specific person is present or not, from the register copy it is
possible to find out whether that person is present or absent but as in the register copy
arrival or departure time is not recorded it become impossible to determine the actual
working hours in case the biometric device is showing ‘NA’.
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

Report on daily accounting activity of the company pertaining to verification of

bills of contractors, sub-contractors and suppliers
We have checked all the bills of contractors and sub-contractors and error if any identified
have been rectified immediately with the help of accounting team. We have observed that in
certain cases bill date of certain items purchased is ahead of purchase order date. It may
create problems at the time of assessment of sales tax especially for CST under rule 6(2)
sales as Sales tax authority might treat these as predetermined sales instead of
concessional sales and thereby impose maximum rate of sales tax.
Invoice Name of the vendor Type of dispute observed. Status
No/Voucher
NO

1094/15-16 Singh Associates This is an old bill which was ---

duly presented to pass as per
order.

62281795 Praxair India Pvt. Ltd. Purchase order number and RECTIFIED
date wrongly recorded in GRN.

RGPL/16- Radhika gasses Pvt. Ltd. Bill date wrongly recorded in RECTIFIED
17/10924 GRN..

Shera Security guard There is no biometric ---

Services. attendance attached with the
bill.Only manual attendance
has been attached with the bil.

Following errors are rectified in advance register:

Serial Party Name Amount Cheque no Cheque no Status
No. as per as per
register voucher
632 Jaggi Brothers 1,00,000 345461 136861 Advance
Overseas pvt. Ltd. register
rectified
646 R Enterprise 1,38,000 171234 345452 Advance
register
rectified

For ASISH DEY & CO Date: 5.12.2016

Chartered Accountants
ASISH DEY & CO 4/31 Jahura Bazar lane`
Chartered Accountants Kasba, Kolkata 700 042
Mob no:9830954385
Mail:asishdey@rediffmail.com

ASISH DEY
Partner
Kolkata
FRN :0326320E