Scope of Work: -
1. Purchase Accounting:
a. Check whether all local POs are prepared as per systems framed
b. Whether all bills are booked in time, MRN prepared
c. All necessary supporting documents are attached to all bills
d. Debit & Credit notes raised for differences
e. Purchase returns taken into consideration
f. Payments made within due dates, overdue bills for more than 180 days
g. Unadjusted advances for more than 90 days. Ensure that all advances at the year-end are adjusted with purchases/credit notes.
h. Ensure that all credit balances not to be paid should be either reversed within the FY or adjusted with Debit notes.
2. Major Expenses in Plant:
a. Identify these expenses and find out whether reductions of such expenses are possible or not.
b. Also find out whether all proper systems and controls are being followed in incurring and accounting of such expenses.
3. Sales Discounts:
a. Ensure whether all calculations are done as per the Purchase Orders.
b. Whether credit/Debit notes raised
c. To ensure that all credit notes are considered as per PO Terms.
4. Freight:
a. Ensure that all freight payments are as per procedures laid down.
b. Suggest improvement in the system of incurring freight costs.
c. Ensure GST (RCM) is properly deposited and Deducted TDS if any. d. Ensure that all advances are adjusted within a time frame.
e. Ensure that company is not losing out in freight negotiations.
5. Slow/non-moving stock: Identify all these stocks and find out reasons for the same. Then suggest remedies.
6. Production Loss Report: abnormal loss if any to the management.
7. HR Policies:
a. Ensure that all policies framed in HO are being followed. If some policies are not in place to suggest the same and identify the losses due to such policies not being followed.
b. Time Office-Checking of attendance of all staff & workers to ensure the Time office policies are being followed by all.
c. Ensure that salary is properly calculated, deductions made properly, advances adjusted properly, leaves adjusted, all old bonuses paid, CODs properly calculated and accounted.
8. Physical Verification of Stock: To be done on quarterly basis. Ensure that proper systems are being. 100% verification should be done. All discrepancies should be first discussed with the local seniors there and then finally with the management and all corrective actions to be taken.
9. Security Gate: Ensure that all registers at the security gates are maintained properly and kept updated.
10. Cost Audit and Margin Analysis: Product-wise / Batch-wise cost computation and margin review
11. Cost cutting measures.
12. Analysis expenses, prepare charts and trend analysis and suggest improvements.
13. Checking the POs rate with Quotations of all the local purchases. 14. Detailed Checking and analysis of Scrap Sales and scrap stock.
15. Checking cash expenses.
16. Checking of Security Expenses and Security Manpower.
17. Checking local conveyance, Travelling, Fooding, expenses in detail.
18. Help the company management in plugging revenue leakages if any.
19. Help the management in analyzing the debtors’ movements, selecting the right customers and prompt collection of dues and over dues.
20. Check old debit & credit balances of vendors and ensure that corrective actions are taken within a stipulated time frame.
21. Check whether all taxes have been properly calculated, deposited and returns are properly filed. Whether all GSTunder reverse mechanism had been considered.
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