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    WIP Report

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    Hemant Aher
    The audit report summarizes the results of an inventory audit conducted at Wikas Printing and Carriers Pvt. Ltd. The audit found issues including a high percentage (29.27%) of non-moving inventory, products with changes to packaging/design that were not communicated to customers and remained in stock, excess wastage material allocated, finished goods that had been in stock for over a year and should be moved to scrap, missing or incorrect tags on stock items, and shortages found during stock verification. The report provides detailed examples and data to support these findings.

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    WIP Report

    Uploaded by

    Hemant Aher
    74 views8 pages
    The audit report summarizes the results of an inventory audit conducted at Wikas Printing and Carriers Pvt. Ltd. The audit found issues including a high percentage (29.27%) of non-moving inventory, products with changes to packaging/design that were not communicated to customers and remained in stock, excess wastage material allocated, finished goods that had been in stock for over a year and should be moved to scrap, missing or incorrect tags on stock items, and shortages found during stock verification. The report provides detailed examples and data to support these findings.

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    The audit report summarizes the results of an inventory audit conducted at Wikas Printing and Carriers Pvt. Ltd. The audit found issues including a high percentage (29.27%) of non-moving inventory, products with changes to packaging/design that were not communicated to customers and remained in stock, excess wastage material allocated, finished goods that had been in stock for over a year and should be moved to scrap, missing or incorrect tags on stock items, and shortages found during stock verification. The report provides detailed examples and data to support these findings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    74 views8 pages

    WIP Report

    Uploaded by

    Hemant Aher
    The audit report summarizes the results of an inventory audit conducted at Wikas Printing and Carriers Pvt. Ltd. The audit found issues including a high percentage (29.27%) of non-moving inventory, products with changes to packaging/design that were not communicated to customers and remained in stock, excess wastage material allocated, finished goods that had been in stock for over a year and should be moved to scrap, missing or incorrect tags on stock items, and shortages found during stock verification. The report provides detailed examples and data to support these findings.

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    INVENTORY AUDIT REPORT

    WIKAS PRINTING AND CARRIERS PVT. LTD.

    PART–A : EXECUTIVE SUMMARY

    A. SURPRISE VERIFICATION OF INVENTORY :

    Initially on 22nd February 2023 – we requested the WIP Incharge for surprise verification
    of inventory. He informed us that he was not ready with the same.

    Some of Inventory Details not provided by the WIP Incharge at the time of verification of
    stock.

    B. VERIFICATION OF WIP INVENTORY :

    As requested by the WIP Incharge – we did the verification of inventory as follows :

    Start Date : 2nd March 2023 End Date : 3rd March 2023

    Summary of Stock as on 28th February 2023.

    Sr.No. Material Category Value Rs. Of Which Value of Non


    Moving Rs
    1. Packaging 9,48,496 -
    2. Packaging in Printing 54,70,216 25,51,572
    3. WIP Commercial Printing 25,08,695 6,51,959
    4. Material in Production 16,23,747 -
    a. Conventional & UV Inks 2,35,810 -
    b. Chemicals & Coating 1,35,810 -
    c. Liner Material 2,99,190 -
    d. Window Patching Film 39,840 -
    e. Lamination Material 1,47,806 -
    f. Corrugation Material 7,65,291 -
    5. Packaging Labour Cost 3,91,938 -
    Total 1,09,43,092 32,03,531
    Non-Moving % 29.27%
    a. What is considered as Non-Moving ?:
    Item that have not moved at all / not dispatched at all during the
    Period from 1st October 2022 to 28th February 2022 are considered as
    Non-Moving.

    b. Non – Moving items includes various types of packaging material


    & finished goods etc. which are of not dispatch or no use after a
    period of time.

    c. Please find attachment here with item wise details of Non-Moving under each
    category as stated above ( Annexure A & B )

    C. OTHER OBSERVATION AND REMARKS – REGARDING INVENTORY VERIFICATION :

    a. Changes in packaging / Design / Wording :


    During our verification we found that many cases were changes in packaging, Design
    and Wording of product but items not dispatch to customer. Items still lying in stock.

    b. Wastage Material :
    The process of considering wastage material needs to be looked into. it was found
    that the wastage material issue beyond the allocated limit. During our verification
    the concerned person was not able to give exact details of issuing of extra wastage
    material.

    c. Scrap Material :
    During verification it was found that many finished goods items in stock since March
    2021 and not in good condition.

    d. Tagging Issue :
    Tags were not put on many stock items of Finished goods.

    e. Wrong Tagging :
    wrong tag was put on the stock of Finished goods.

    f. Short Stock found :


    Stock of Finished Goods was found short.
    INVENTORY AUDIT REPORT
    WIKAS PRINTING AND CARRIERS PVT. LTD.

    PART–B : DETAILED REPORT

    1. Example of cases where there are changes in Packaging / Design / Wording :

    Date Party name Quantity WIP Observation


    Job order Product Value
    03.11.2021 Parag Milk 7,000 26,460 This should have been
    J003422 communicated with the
    Go Cheese Process customer immediately.
    Angles
    23.03.2022 Parag Milk 6,000 23,220 Inventory should have been
    1890 sent to Customer.
    Go Cheese Process
    Square 200GM
    16.11.2021 Parag Milk 10,600 19,080
    J003483
    Table Butter 500 GM
    14.03.2022 Klass Pack 300 4,860
    1807
    Borosil Klass Pack Gift
    Box
    15.03.2022 Meril 3,000 8,667
    1813
    Filaprop
    Polypropylene – Old
    Material
    10.05.2022 Meril 2,600 8,190
    2809
    Aspiron Polyglactin
    910

    2. Examples of cases where extra sheets were provided beyond wastage allocated limit .
    ( Wastage Limit – 5% )

    Date Party name Quantity Sheets Wastage Wastage WIP


    Job order Product ( Units ) Required Allowed Allocated Value
    (5% ) ( Rs. )
    08.12.2021 P.R. Sales 2,000 834 42 500 8,478
    876
    D-Touch
    Hand Gloves
    15.12.2021 East Sun 2,800 850 43 500 3,879
    984 Electronics
    India LLP

    Gionee
    Powerbank
    23.11.2021 Sri Sri 4,700 840 42 500 13,113
    J003523 Enterprises

    Asian 9W
    Led Light
    Carton
    24.12.2021 Zydus 4,600 1,080 55 504 4,885
    1108
    Monotax XP
    500MG
    15.07.2022 Raymond 5,400 3,889 195 805 13,608
    KC983
    KS 10S
    Skinfeel
    06.01.2022 Radhika 6,200 5,000 250 600 13,392
    JC1248 OPto

    5W
    Goldmedal
    LED Bulb
    06.01.2022 Radhika 6,100 5,000 250 600 13,176
    JC1247 OPto

    5W
    Goldmedal
    LED Bulb
    3. Example of cases where items not in use or not dispatch or move to scrap.
    Date Party name Quantity WIP Observation
    Job order Product Value
    14.12.2021 East Sun 1,300 5042 These are item lying in stock
    971 since March 2022.
    Syska Power Bank
    P1037B Suggested that it should be
    15.12.2021 East Sun 2,800 10,861 move to scrap or Write off.
    984
    Gionee Thunder
    109 Power Bank
    23.12.2020 Weikfield 1,200 2,624
    2332
    Weikfeild Jelly
    Mango
    16.12.2021 East Sun 1,500 5,818
    994
    Syska Charger
    PD20WI White

     Major Party - MERIL

    Product Name Quantity WIP Value Observation


    Mericron XL 1,500 6,412 These are item
    Aspiron 2,600 6,435 lying in stock
    Polyglactin 910 since March 2022.
    – FBB
    Mitsu 2,000 4,950 Suggested that it
    Antibacterial should be moved
    Red – FBB to scrap.
    Filamide 1,400 5,985
    Polyamide –
    FBB
    Mitsu C+ - FBB 5,300 22657
    Filasilk Silk 1,800 5,200
    Black – FBB
    Merizelle 2,700 11,542
    Standard – FBB
    Skin Stapler 1,200 12,722
    Merisofy Plain 1,700 5,355
    4. Example of cases where tags not put on stock :

    Job order Party name Quantity WIP Value


    Product
    1607 Dagdu Teli 4,000 7,560

    Sugandhi Utne 40G


    East Sun

    994 Syska Charger 1,500 5.818


    PD20WI White

    971 Syska Power Bank 1,300 1,300


    P1037B – Black

    Syska Power Bank 1,400 1,400


    P1037B - Blue

    5. Wrong Tagging :

    During verification it was observed that wrong tag was put on the stock of Finished
    Goods :

    Job order Party name Quantity WIP Value


    Product
    KC/FY22- Nikam Education 3,010 1,12,875
    23/1540 ( OPC ) Pvt. Ltd.

    Ticket to Civil Service


    Book

    6. Short Stock found :

    During verification of stock – following stock of Finished Goods was found short :

    Party name Quantity as per Quantity Difference


    Product sheet found during short quantity
    verification
    Pravin 6,00,000 5,96,250 3,750
    Masale

    Pavbhaji
    Masala
    East Sun 1,500 1,000 500

    Portronics
    gift box
    White 10 k
    Meril 1,300 1,000 300

    Aspiron Silk
    Black
    Aco 1,400 1,200 200
    Perfumes

    Perfumes de
    violleta
    DISCLAIMER : This Internal Audit Report is for Internal use of Company only.

    Test Checks have been applied wherever found necessary. Speciffic areas / functions of
    the company have been covered from time to time. Further this report should not be
    used for forming any opinion what–so-ever or an opinion on accounts / financial
    position of the company. Our firm shall not be responsible for its use to form opinion /
    judgement / conclusion.

    Anand S. Daga
    Place: Partner
    Daga & Chaturmutha
    Date : Chartered Accountants

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