Draft Report Sales

Rohan Motors Ltd.
(Sarita Vihar Arena)

Report Discussed with Areas Covered
Sales
Audit Team
Name Designation
CA C.K. Choraria Engagement Partner
CA Kunal Yadav Manager
Mr. Ankit Bhardwaj Audit Assistant
Mr. Gaurav Nawadia Audit Assistant
Ms. Honey Garg Audit Assistant
Internal Audit Co-ordinator

Name Designation
Mr. Brajagopal Panigrahi Internal Auditor
Period of Testing Dec'23-Sep'24
Date of Field Work
Date of Draft Report Submission
Date of Management Response
Date of Discussion with Branch

(Branch Level Discussion)
Date of Final Report Submission

tors Ltd. (Sarita Vihar Arena)
Period Contact Detail
July'24 to Sep'24
Audit Team
Contact Detail Email
99104-55711 ckchoraria@singhico.com
88263-80672 kunalyadav@singhico.com
97186-88266 ankitbhardwaj@in.singhico.com
98353-84094 gauravnawadia@in.singhico.com
91665-94990 honeygarg@in.singhico.com
Name of Concern: -
Branch: -
Department:-
Name of Concern Head:-
Name of Department Head:-
Sent for Feed Back Date:-
Sr. No.
1
2
4
5
6
Name of Concern: -
Branch: -
Department:-
Name of Concern Head:-
Name of Department Head:-
Sent for Feed Back Date:-
Audit Observations
Vehicles not sold on FIFO Basis
Background:
As per standard practice, vehicles should be sold on a FIFO basis or based on their manufacturing date.
Observation:
We noted vehicles were not sold on a FIFO basis, i.e. Vehicles that were purchased on later date from MSIL were sold early to
leads to increase in holding period of vehicles and later on these vehicles are sold on discounts.21 cases whose purchase amo
crore were noted where vehicles were not sold on a FIFO basis. Details attached in annexure:
Root Cause:
Risk:
Lower enquiry to sales conversion ratio
Observation:
While review of enquiry register we noted total 11,369 enquries were received out of which only 1,262 enquires were converted
attached below:
Month Total No. Of enquiry Total No. Of car Purchased Purchase %

December 1,460 160 11
January 1,296 129 10
February 1,221 104 9
March 1,221 127 10
April 990 114 12
May 1,173 118 10
June 1,033 122 12
July 1,058 139 13
August 894 106 12
Root Cause:
September 1,023 143 14
Risk:
Total 11,369 1,262 11
Discount not recovered from Maruti
Background:
Discounts/offers are issued from time to time by Maruti and must be recovered in a specific proportion from MSIL on a timely ba
following the date of raising the invoice.
Observation:
We noted that there were 12 cases for delay in submission of claims to Maruti/claims rejected by Maruti/claims pending to be su
as per defined timeline mentioned in policy,we reviewed Corporate discount and noticed that in 12 cases amounting RS.29,846
rejected, or the filing of claim of discount has been time barred, or is pending to be received. Details are as under:
Status No of Cases Amount

Rejected 2 3,954
Pending For Submission 3 4,884
TimeCause:
Root Barred 7 21,008
Risk:
Total 12 29,846
Invoiced cancelled and Re-invoiced for providing additional Discount
Background:
To Claim a higher discount, DSE cancels the invoiced vehicle with the mutual consent of the customer and rebills/rebook the sa
customers in the offer period to claim a higher discount on the same car.
Observation:
Noted 31 instances, where excess discounts were offered to customers by cancelling the invoiced vehicle and rebilling the sam
same customer. The total additional discount amounts to Rs. 2.16 lakhs. Details attached in annexure-:
Root Cause:
Risk:
Discrepancies in Test Drive Declaration Form Files
Background:
As per practice followed, the Company is required to obtain ‘Test Drive Declaration Form’ and driving license from prospective
test drive of car to avoid any liability on the Company.
Observation:
On review of 25 ‘Test Drive Declaration Forms’ on sample basis for the month of Jun’24, we noticed below observations-:
1. Out of 25 Test drive forms Driving license were not obtaied in 16 cases, further for these 16 cases not any photo of Driving L
attached in file.
2. In 21 cases Test Drive Declaration Forms were not signed by customer.
Root Cause:
Risk:
Discrepancies in Test Drive Records
Observation:
On review of Test Drive log book for the month of June'24 and July'24, We noticed below observations-:
1. 91 Test drive were provided as per Test Drive log book as compared to which 150 Test Drive were provided as per Test drive
DMS,as a result 59 Excess test drive were punched in DMS.
2. We noted 14 cases in which Excess Km test drive were provided to customers as compared to location of test drive.Details a
annexure.
Root Cause:
Risk:
INTERNAL AUDIT REPORT
Rohan Motors Ltd. Report No.:-

Sarita Vihar Audit Period:-
Sales Audit Start on:-
Audit End on: -
Audit Conducted by :-
Feed Back Received Date:
Rohan Motors Ltd(July'24 to Sep'24)

Sales (Sarita Vihar)
Reference Auditors’ Suggestions/ Recommendations
Discount working (
Invoice-
cancelled).xlsx
Test Drive
Declaration Forms
Annexure.xlsx
Excess Test Drive

Given Annexure.xlsx
RML/Sales/2023-24/02/Sarita Vihar
July'24 to Sep'24
Mr. Ankit Bhardwaj

Mr. Gaurav Nawadia
Ms. Honey Garg
Management Response

Draft Report Sales

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Rohan Motors Ltd.

(Sarita Vihar Arena)

Internal Audit Co-ordinator

Period of Testing Dec'23-Sep'24

Date of Field Work

Date of Draft Report Submission

Date of Management Response

Date of Discussion with Branch

Date of Final Report Submission

Sent for Feed Back Date:-

Sent for Feed Back Date:-

Month Total No. Of enquiry Total No. Of car Purchased Purchase %

Discount not recovered from Maruti

Status No of Cases Amount

Invoiced cancelled and Re-invoiced for providing additional Discount

Discrepancies in Test Drive Records

Rohan Motors Ltd. Report No.:-

Feed Back Received Date:

Rohan Motors Ltd(July'24 to Sep'24)

Excess Test Drive

Mr. Ankit Bhardwaj

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