Automotive Dealership Report

download Automotive Dealership Report

of 43

Transcript of Automotive Dealership Report

  • 7/25/2019 Automotive Dealership Report

    1/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    PARSOLI MOTOR WORKS PRIVATE LIMITED

    MANAGEMENT AUDIT REPORT FOR THE PERIOD 1ST

    OCTOBER, 2013TO 31ST MARCH, 2014

    1 COMPLIANCE WITH BMW, PARSOLI AND STATUTORY

    NORMS

    A D!"# C$% '

    As per RTO rules, no car should be delivered before CRTEM (Certificate of Temporary

    Registration) passing is done from RTO A temporary number has to be obtained from

    RTO !hich is valid only for one month "f a car is delivered before CRTEM passing, and

    the car meets !ith an accident or is damaged#stolen post delivery, the liability for loss of

    the same has to be borne by $arsoli "f the customer is not ready to !ait for delivery till

    the CRTEM passing is done, a liability #indemnity form should be signed by the

    customer to the effect that the customer shall be liable for any mishap occurring after

    delivery till the CRTEM passing is done

    %e observed that in sporadic cases, cars had been delivered during our audit period

    !ithout CRTEM passing at Ahmedabad, &urat and Ra'ot divisions %e believe that the

    practice of delivery of car before CRTEM passing should be stopped completely to avoid

    the possibility of any unforeseen loss caused to $arsoli due to any mishap

    %hen a car is taen for test drive, a liability form should be signed by the potential

    customer taing the test drive to the effect that he shall be liable for any accident#

    damage done to the demo car or for in'ury to any person during the test drive This form

    should bear details lie the customers driving license number, his contact number, his

    address, the time and date of test drive, starting and ending ilometers etc and should be

    duly signed by the customer Although $arsoli has commenced obtaining liability form

    at the time of test drive, !e observed the follo!ing deficiencies in the same*

    $age + of -

  • 7/25/2019 Automotive Dealership Report

    2/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    A("!)$*$) D+++#- '

    %e observed that the practice of signing of liability form has not been follo!ed in

    several cases .o!ever from /-rd0une, /1+ the ne! En2uiry Tracing 3orm and

    Test drive feedbac form cum liability form has been put into practice After thesales consultant submits this form to the reception, Ms 4iita and Ms Richa

    0oseph checs the form regarding its completeness 4e! liability form bears

    serial number and uni2ue opportunity number %e further observed that the copy

    of the driving licence of the participants in most of the cases have been ept on

    record

    Overall, !e feel that there is a significant improvement in liability form

    maintenance and a proper document control is being maintained

    S.%$/ D+++#-'

    Test 5rive 3eedbac form cum liability form at &urat are generally completely

    filled up %e further observed that copy of driving license of participants is ept

    on record in ma'ority of the cases .o!ever, in some cases, the customers name

    mentioned on test drive feedbac form does not match !ith the name in driving

    license

    R$#/ D+++#-'

    As the operationalisation of the ne! sho!room is under process, !e shall chec

    this area once sho!room becomes fully operational

    %e have noticed that many times employees uses demo car or loaner car !ithin

    Ahmedabad or out of Ahmedabad for personal or leisure visits, !hich needs to be

    controlled on a priority basis

    A("!)$*$) D+++#-'

    The logboos had not been ade2uately filled up This needs to be addressed on a priority

    basis

    On our test chec of the logboo of various demo cars, !e found the follo!ing lapses*

    S% D!"# $% S/$%/+- E-)+- T#/$ K" D$/! F%#" 5(+( -#

    $age / of -

  • 7/25/2019 Automotive Dealership Report

    3/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    N# "#)! -# K" 6A7 K" 6B7 5+/(#./

    $-8 %!#%)

    6B 9 A77

    %!#%) #: )!"# $% .$!

    :#.-)

    + 6+/1d 6

    line

    /7 889 -++ 1+#1/#/1+ to 1#1/#/1+

    T#/$ K" 311

    / 8/1d %hite +1/ /+ ++/ //#+1#/1+-

    /-- -8 ++/ /#+1#/1+-

    -8: -;: +1 /8#+1#/1+-

    -9/ -:+ : /;#+1#/1+-

    19 ;; 89 /7#+1#/1+-

    ++/+ ++/9 7 -+#+1#/1+-

    ++-; +++ 8 1+#++#/1+-

    +-7 /+71 7:; 1#++#/1+-

    //1/ //8 - //#++#/1+-

    -+9+ -+:+ +1 /7#++#/1+--/8/ -/;8 +- /:#++#/1+-

    --/9 --7 ; 1/#+/#/1+-

    -;; -7-: 78 1#+/#/1+-

    :11 :;+ ;+ 1:#+/#/1+-

    :71 :9+ ++ +1#+/#/1+-

    T#/$ K" 13; has been laid do!n from + st0uly, /1+- to

    ensure the physical condition of the cars Ms 4ainita $atel daily checs various aspects

    of demo cars such as dents, scratches, tyre cuts, overall cleanliness, fuel, C5, magaines,routemap, fragrance etc and maintain physical copy of demo car checlist This is once

    again a step in the right direction

    %e observed significant lacunas in the procedure of test drives and maintenance of gate

    passes as under *

    A("!)$*$) D+++#- '

    $arsoli follo!s the system of maintenance of test drive feedbac form

    A system of gate pass for demo cars has been put into practice at the sho!room

    basement as per !hich no car is allo!ed to go out !ithout a gate pass ate pass for the

    period under audit is not available # traceable for verification Our certain specific

    observations from April to 0une, /1+ regarding this system are as under*

    S%

    N#

    D$/! #:

    G$/!?$ @G$/!?$

    S% N#

    O*!%$/+#-

    + +7#1#/1+

    +-;9:

    @M% - series T demo car used by Mr &adibhai from Ahmedabad

    to @aroda The purpose of usage of demo car !as not mentioned

    / +7#1#/1+

    +-;:1

    @M% -/1d !hite demo car used by Mr A'itbhai The purpose of

    usage of demo car !as not mentioned

    - +9#1#/1+

    +:#1#/1+

    @M% - series T demo car used for test drive but customers name

    is not mentioned T!o dates mentioned on the gate pass

    $age 8 of -

  • 7/25/2019 Automotive Dealership Report

    6/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    +/81+

    +:#1#/1+

    +/8+/

    @M% demo car used for test drive but customers name is not

    mentioned

    8 +:#1#/1++/8+

    @M% demo car used for test drive by Ms Richa &hah Timementioned is :1 to :81 but ms of the same 799+ to :79

    ; +:#1#/1+

    +/8//

    @M% 6- demo car used by Mr 0ahidbhai to Ra'ot $urpose and

    time in and ending ms are not mentioned

    7 /+#1#/1+

    +/8-+

    Mr Rustambhai used 6+ demo car at @aroda but the purpose of the

    same is not mentioned

    9 /+#1#/1+

    +/8-

    @M% -/1d demo car used at @aroda for test drive but customers

    name is not mentioned

    : 1:#18#/1+

    +81-8

    @M% 6- demo car used at 4adiad but the purpose is not mentioned

    +1 +9#1;#/1+

    +;;7/

    @M% ++9d car used for test drive but customers details are not

    mentioned

    ++ +:#1;#/1+

    +;;:

    @M% 8-1d used by Mr 3arid Fhan but time in detail are not

    mentioned

    +/ +:#1;#/1+

    +;918

    @M% - series T used by Mr &irin $anchal The customers details

    and time in details are not mentioned

    "n ma'ority of the gate passes, customers detail has not been mentioned

    Our suggestion of using serially numbered gatepass has been put into practice

    .o!ever, instead of using month to month serial numbered gate pass boolets,

    random gate pass boos are being used

    3rom the gate pass # logboo of demo cars maintained by security at sho!room

    basement, !e observed that demo cars had been sent for test drive out of Ahmedabadat the follo!ing centres*

    P$! M#)! -# D$/! #- 5(+( /!/ )%+! +!-

    @aroda 6- +:#1#/1+

    8 series +:#1#/1+

    -/1d /+#1#/1+, /+#1#/1+

    - series T /1#18#/1+

    $age ; of -

  • 7/25/2019 Automotive Dealership Report

    7/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    ++9d 1/#1;#/1+

    Ra'ot - series T +9#1#/1+

    6- 1/#1;#/1+

    ++9d +9#1;#/1+

    andhinagar 8/1d +;#18#/1+

    7-1d +-#1;#/1+

    $alanpur ++9d /1#1-#/1+

    6+ /:#18#/1+, 1-#1;#/1+

    @haruch 6+ /:#18#/1+

    $atan 6- +:#18#/1+

    &urendranagar 8-1d +;#1#/1+

    3urther on random verification of demo car on /+st0une, /1+, !e observed that none of

    the demo cars contained C5 and magaines as re2uired by @M%

    6+ demo car had gone for test drive to $alanpur / times ie on /:thMay, /1+ and -rd

    0une, /1+ The demo car has a ma

  • 7/25/2019 Automotive Dealership Report

    8/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    3rom the gate pass # logboo of demo cars maintained by security at sho!room, !e

    observed that demo cars had been sent for test drive out of &urat at the follo!ing centres*

    P$! M#)! -# D$/! #- 5(+( /!/ )%+! +!-

    @ardoli 6+ /1d /9#1-#/1+

    @haruch 8/1d 1+#1#/1+

    Hapi 8/1d 1-#1#/1+

    ate pass do not mention the place of visit in ma'ority of the cases As a result, it is not

    possible to trace the e

  • 7/25/2019 Automotive Dealership Report

    9/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    %e have noted that the fuel cost, !hich is mainly for demo cars on an average is about

    Rs ,,111 per month The detailed month!ise breaup of fuel costs of demo cars is

    as under*

    %e feel that $arsoli can achieve a significant reduction in fuel costs if certain

    procedural changes, as recommended in the earlier portion of our report, are !ored

    out and operationalised %e suggest that efficient fuel policy be implemented for

    monitoring usage of fuel for demo cars

    B L#$-!% C$%

    Boaner car is given to customer in the event !hen customers car comes at !orshop

    for service or repairs and the customer demands a temporary car against the car !hich

    is being serviced # repaired

    $age : of -

    M#-/(

    F.! #/ R T#/$ F.!

    #/ RA("!)$*$)

    S(#5%##"

    D+++#-

    A("!)$*$)

    W#%(#?

    D+++#-

    S.%$/

    D+++#-

    R$#/

    D+++#-

    October, /1+- +,:+,++: ;,1-1 +,7,98- --,-18 -,79,-17

    4ovember, /1+- +,+;,/:7 +,9-,91+ +,88,:7 +7,1:- ,7-,+;8

    5ecember, /1+- /,-8,;+; 77,++/ 78,8;; /;,+1/ ,+,-:;

    0anuary, /1+ +,:8,-;9 :1,8 :1,1+- /-,111 -,:9,:/8

    3ebruary, /1+ +,7+,/: +,19,::- 89,1/- /+,:/1 -,;1,/-1

    March, /1+ /,+,;91 :/,+1; /,;-,8:7 1,+18 ;,-7,99T#/$ 11,1,3=4 ,

  • 7/25/2019 Automotive Dealership Report

    10/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    The current declaration form is inade2uate in respect of details mentioned therein %e

    suggest that !hen a loaner car is given to a customer, a broad declaration form

    containing details of name, model of car, reasons, date, ms, physical condition of the

    car, legal liability in case any accident occurred during the period the car is !ith

    customer etc should be duly signed by the customer "t has to be clearly mentioned that

    if any damage is done or accident occurred to the car !hile in possession of the

    customer, the customer has to indemnify and reimburse to $arsoli any monetary loss or

    legal liability

    A ne! revised format of declaration form as suggested by us has been implemented

    from -rd 0une, /1+- %e also suggest that log boos be maintained for loaner cars,

    primarily for no!ing !hether loaner car has been used for any other purpose There is

    an improvement in maintaining of loaner car register and declaration form as compared

    to our earlier audit period

    C D+?$8 C$%

    The @M% norms re2uire that each display car should have the @M% magaine, C5 and

    specification sheet

    A("!)$*$) D+++#- '

    "t !as observed on /-rd0une, /1+ that out of +1 display cars checed, only 8 display cars

    contained C5 and magaines

    S.%$/ D+++#- '

    "t !as observed on ++th0uly, /1+ that all the display cars contained the C5, magaines

    and specification sheet e

  • 7/25/2019 Automotive Dealership Report

    11/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    A("!)$*$) D+++#- '

    Customers !ho purchase cars in the premium segment have a rightful e

  • 7/25/2019 Automotive Dealership Report

    12/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    An announcement board (similar to ones used in hotels) can be placed at the

    entrance to the dealership (or at the delivery area) !ith a note of congratulations for

    people taing delivery on that day

    O!ner handboos and eys to be presented to customers from a special tray or bo

  • 7/25/2019 Automotive Dealership Report

    13/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    E S!.%+/8 $/ /(! (#5%##" '

    There !ere a fe! anomalies observed in the security measures at the sho!room Our

    observations regarding the same are as under*

    A("!)$*$) D+++#-'

    o The demo car eys are being ept by the security guard at the entrance The

    sho!room car and stoc car eys are ept at the reception

    o The sprinler system has been installed at the sho!room A smoe alarm and fire

    alarm has been installed

    S.%$/ D+++#- '

    o The demo car eys are being ept at the reception and other set !ith Mr 5ev

    @aner'ee The sho!room car and stoc car eys are ept !ith receptionist and

    Mr 5ev @aner'ee

    o There is fire e

  • 7/25/2019 Automotive Dealership Report

    14/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    o @urglar alarms are not installed at the !orshop %e suggest that efficient burglar

    alarm system be installed and activated at an early date

    o There are speaers installed on the compound !all of the building but no public

    address system is installed A public address system should be made available

    !ith the CRM so that informing any staff member or passing any instructions

    becomes speedier, easier and timeefficient

    S.%$/ D+++#- '

    o @urglar alarms are not installed at the !orshop %e suggest that efficient burglar

    alarm system be installed and activated at an early date

    o There is effective CCTHs in !orshop division @ut there is only one CCTH in

    the stores and spares section %e suggest that another CCTH be fitted in the

    service area as !ell as stores and spares section so that total overvie! on the

    happenings at the !orshop can be monitored "t !ould also serve as an inbuilt

    chec on the possible pilferage or !or inefficiency of the employees or theft

    Recently, a second CCTH has been installed in the parts area as per our

    suggestion

    o The bacup of CCTH data is being stored upto + days only %e suggest that it

    should be stored for at least ; months

    G R!!?/+#- $-) C./#"!% 5!#"! '

    A("!)$*$) D+++#- '

    o After appointment of Ms Firan and Ms .eena as receptionist and greeter, !e have

    observed that the front des is normally attended by them most of the times @ut !e

    have also observed that both the persons occasionally comes late as per the punching

    report

    S.%$/ D+++#-'

    $age + of -

  • 7/25/2019 Automotive Dealership Report

    15/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    o %e did not observe any material discrepancies in reception and customer

    !elcome at &urat division

    H L+:!/8! P%#)./ '

    The sho!room displays a !ide range of lifestyle products that are sold, given free

    to customers or used as free gifts at promotional events The lifestyle products as !ell

    as promotional items including flyers and brochures have to be purchased from @M%

    Often certain items lie calendars, diaries, boos etc are sent directly by @M% and

    billed to $arsoli 4o proper records are maintained for the promotional items that are

    distributed, gifted or given a!ay to customers

    There !ere certain items lie @M% brochures, covers, printing papers, tshirts,

    magnet bo

  • 7/25/2019 Automotive Dealership Report

    16/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    Even after t!o years, these items have not been traced and are still reflected in 5M&

    .o!ever as per a decision taen recently, these items are being stoced out from the

    5M& system

    Apart from the above, the follo!ing items of lifestyle or accessories have been

    missing since a long period of time *

    S%

    N#

    I/!" N# I/!" N$"! /8 T#/$

    R

    + 9-+///:98+; &tarter it 8 +1-;8

    / 8+:8/+9-98/ @ase support / -/11

    - 7++11+81-8 Tire mobility + +1+77

    8+7/--;7:8 3loor mats + /-+-

    8 8+7//1:+1 All !eather + -8:

    ; 8+:8/+9-98/ @ase support / -/11

    7 9-+///:98+; &tarter it 9/:-

    9 91+/+;;7- Tshirt + //:+

    : 91/;///11+- %atch + /+91

    +1 91--1-:-1;; olf ball 88/

    T#/$ ;;230

    .o!ever as per a recent decision taen, these items are being stoced out from the5M& system

    Ms 3eny is maintaining lifestyle stoc register of Ahmedabad sho!room division

    in e

  • 7/25/2019 Automotive Dealership Report

    17/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    3ebruary, /1+ +:/ +/ ;/8

    March, /1+ +97 -; +:/8

    T#/$ 113; 12 1332013

    A!%$!

    S/#

    1102013

    /#3132014

    A!%$!

    S$!

    142013

    /#30>2013

    A!%$!

    S$!

    1102013

    /#3132014

    I-%!$!

    +-

    $!%$!

    /#

    I-%!$!

    +-

    $!%$!

    $!

    --1 -8 +9; -++ 7L ;7L

  • 7/25/2019 Automotive Dealership Report

    33/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    Average 87L of the total stoc value is lying in the form of Class I C, !hereas

    the average of Class I A stoc is /1L and Class I @ stoc is +9L from October,

    /1+- to March, /1+ This sho!s that a significant chun of inventory has been

    bloced in Class C I &lo! moving and obsolete inventory causing carrying cost

    The average stoc value lying from April, /1+- to &eptember, /1+- !as about

    Rs :1 lahs and during the period from October, /1+- to March, /1+ it is about

    Rs +1: lahs out of !hich a significant chun is non moving %e suggest that

    non moving stoc items be closely monitored by the parts manager

    5etailed A@C analysis is given in A--!.%!3

    B O%)!% A-$8+ '

    Orders are divided into - category*

    +) &toc Order

    /) Rush Order

    -) Hehicle Off the Road(HOR) Order

    A("!)$*$) D+++#-

    3or the period from October, /1+- to March, /1+, !e observed that the

    percentage of stoc order !as 7L, rush order :L and HOR order +7L $arsoli

    earns ma

  • 7/25/2019 Automotive Dealership Report

    34/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    ; OVERVIEWOF IT SYSTEMANALYSIS'

    A("!)$*$) D+++#-'

    %e have revie!ed the overall "T system of Ahmedabad division A system has been

    setup !hereby customer data as !ell as other data is not freely copyable on pen drive

    and other removable devices

    %e have observed that various social net!oring sites !hich !ere earlier bloced have

    no! once again been made freely accessible to employees %e suggest that all such sites,

    social sites as !ell as un!anted sites be bloced as decided by the management

    %e suggest that recording of CCTHs be stored at least upto ; months

    The server room !here primary data as !ell as bacups are stored is not fire proof

    Booing to the cost effectiveness, fire proofing of the server room can be considered

    %e suggest that broad documented "T policy be framed to address "T related issues

    S.%$/ D+++#- '

    %e have revie!ed the overall "T system of &urat division and found that customer data

    as !ell as other data is not freely copyable on pen drive and other removable devices

    5ata bacups are taen either on daily basis or !eely basis but stored near the server

    room %e suggest that data bacups be stored offsite

    %e have observed that recording of CCTHs footage storage is being stored only upto +

    days %e suggest that recording be stored at least upto ; months

    The server room !here primary data as !ell as bacups are stored is not fire proof %e

    suggest that fire proofing of the server room be considered

    $age - of -

  • 7/25/2019 Automotive Dealership Report

    35/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    = DEBTORSANALYSIS'

    &ummary of debtors movement of Ahmedabad !orshop division from October, /1+- to

    March, /1+ is as under *

    3rom the above, !e can observe that the debtors of !orshop division have gone

    significantly do!n from Rs ::9 lahs to Rs 7+/1 lahs as on -+ stMarch, /1+ %e

    believe that recovery process for debtors still needs to be strengthened and needs

    continuous monitoring by the management

    At present, there is no documented fi

  • 7/25/2019 Automotive Dealership Report

    36/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    >,33,301 2,2>,24,04 >,20,1,

  • 7/25/2019 Automotive Dealership Report

    37/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    > WARRANTY@ BSI ANDINSURANCECLAIMSANALYSIS'

    The month !ise breaup of !arranty claims receivables at A("!)$*$) W#%(#?)+++#-is as under *

    3rom the above, !e can observe that the outstanding !arranty claims have gone do!n

    significantly from October, /1+- to March, /1+ from Rs 87: lahs to Rs() ,9+

    lahs

    The month !ise breaup of !arranty claims receivables at S.%$/ W#%(#? )+++#-isas under *

    3rom the above, !e can observe that the outstanding !arranty claims have gone up

    significantly from October, /1+- to March, /1+ from Rs :+1 lahs to Rs () /: lahs

    $age -7 of -

    M#-/( O?!-+-

    *$$-!R

    I-%!$! +-

    5$%%$-/8

    $+"R

    D!%!$! +-

    5$%%$-/8

    $+"R

    C#+-

    *$$-!R

    October,/1+- 8,7:,--1 7,-+,- ;1,71,+9+ +,1,:-

    4ovember,/1+- +,1,:- 7,/7,+;1 87,8,/:; -+,//,-87

    5ecember,/1+- -+,//,-87 ;;,9+,+9; :8,1,+1; /,;-,-7

    0anuary,/1+ /,;-,-7 -7,1,88; ;,:7,9:8 (7,/:,:1/)

    3ebruary,/1+ (7,/:,:1/) 7,7+,88+ +,/;,:17 (98,/89)

    March,/1+ (98,/89) /,+,71 ;,+1,98 (,9+,11-)

    M#-/( O?!-+-

    *$$-!R

    I-%!$! +-

    5$%%$-/8

    $+"R

    D!%!$! +-

    5$%%$-/8

    $+"R

    C#+-

    *$$-!R

    October,/1+- :,+1,-1 8,19,-19 ++,::,9+8 /,+9,9--

    4ovember,/1+- /,+9,9-- ,+,: 7,::,:8+ (+,;;,+7)

    5ecember,/1+- (+,;;,+7) +8,:1,;9/ /+,89,9: (7,-,-9;)

    0anuary,/1+ (7,-,-9;) +,/1,/-+ -,71,8-; -,+8,-1:

    3ebruary,/1+ -,+8,-1: +,11,/7- +-,;+,-9 -,8,+:9

    March,/1+ -,8,+:9 +-,,89; +:,9,197 (/,:,-1-)

  • 7/25/2019 Automotive Dealership Report

    38/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    The month !ise breaup of insurance claims receivables from various insurance

    companies at A("!)$*$) W#%(#? )+++#-is as under *

    &teps should be taen to ensure speedy recovery of dues from the insurance companies

    to smoothen the !oring capital cycle

    "nsurance claims of substantial amount are liable to be !ritten off in the boos ofaccount out of the aforesaid outstanding claims since the insurance company does not

    accept these claims &uch insurance claims are created in the boos of account by the

    sales advisor !ithout considering final liability from the insurance company $rocess of

    insurance claims approval and balance amount recovery from customers needs to be

    streamlined and the service advisor should be held liable in case of short recovery from

    insurance companies or customers

    The ageing analysis of !arranty # @&" claims receivables, insurance claims receivables

    and parts payable of Ahmedabad !orshop division are given in A--!.%! 9

    The ageing analysis of !arranty # @&" claims receivables, insurance claims receivables

    and parts payable of &urat !orshop division are given in A--!.%! 9 ;

    5uring the audit, !e observed that there are some cases of re'ected !arranty # @&" claims

    primarily because of inadvertence and negligence on part of the employees %e suggest

    that concerned staff member should be drilled regarding the reasons for re'ection in the

    $age -9 of -

    M#-/( O?!-+-

    *$$-!R

    I-%!$! +-

    +-.%$-!

    $+"R

    D!%!$! +-

    +-.%$-!

    $+"R

    C#+-

    *$$-!R

    October,/1+- 9/,;/,+-; :/,98,:7 ;;,8+,78+ +,19,:8,99/

    4ovember,/1+- +,19,:8,99/ 8,9,+7/ -8,/8,8:/ +,/9,+9,;/

    5ecember,/1+- +,/9,+9,;/ ;9,:7,1:; 9:,8,1:; +,17,71,;/0anuary,/1+ +,17,71,;/ ,19,;88 79,:8,::- 7/,9-,+/

    3ebruary,/1+ 7/,9-,+/ :7,-,-/8 9,-/,/- 98,98,/+8

    March,/1+ 98,98,/+8 7-,7/,8-/ :7,+,+:9 ;/,-,8:

  • 7/25/2019 Automotive Dealership Report

    39/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    past so that the same mistae does not recur %e observed / cases aggregating Rs /:,/;

    permanently re'ected during October, /1+- to March, /1+, the detailed !oring

    !hereof is given in A--!.%! 9 =

    BMW $+" $-$8+'

    %e observe the follo!ing differences in various types of claims as claimed by $arsoli

    and subse2uently approved by @M%*

    Mon

    th VIN Model Claim Head

    As perDealer

    !s"

    Asper#M$

    !s"

    Di%ere

    nceNov-

    13WBAVN97060VV10774 X1 20d X Line Model incentive 150000

    0 10000

    Nov-

    13WBAVN970X0VV10941 Model Incentive X1 20d Base 175000

    10000 2000

    ec-

    13

    :BA3F3(030NP09962

    'deI.e+/e

    320d Ba5e 12000 900003000

    ec-

    13

    :BA3F3(00NP10420

    'deI.e+/e

    320d Ba5e 12000 900003000

    ec-

    13

    :BA3F3(010NP10432

    'deI.e+/e

    320d Ba5e 12000 900003000

    ec-

    13

    :BA3F3(000NP1043(

    'deI.e+/e

    320d Ba5e 12000 900003000

    ec-

    13

    :BA3F3(000NP102$9

    'deI.e+/e

    320d Ba5e 12000 900003000

    !an-14:BAY,4(010;%2$921

    'deI.e+/e (30&d &!I 300000

    200000 100000

    &otal()****

    +***** ,)****

    3urther !e have observed that all the corporate claims for the month of 3ebruary, /1+ have not

    been received by $arsoli till the date of audit Mr Ashat &hula informed that this !as due to

    nontimely submission of the claims The value of corporate claims not received for the month

    of 3ebruary, /1+ is appro

  • 7/25/2019 Automotive Dealership Report

    40/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    10 MECHANICPERFORMANCE'

    Average efficiency of mechanics for October, /1+- to March, /1+ is +1:;L and theaverage productivity is 7+8L

    Average productivity of mechanics has decreased from 7;-9L for the half year ended

    -1th&eptember, /1+- to 7+8L

    5etailed mechanic !ise performance analysis is given in A--!.%! 9

  • 7/25/2019 Automotive Dealership Report

    41/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    11 WORKING CAPITAL MANAGEMENT'

    Aggregate interest payment as per boos of account is as belo!*

    (Amount in Rs)

    I-/!%!/ P$8!! O/#*!%,2013 /#

    M$%(,2014

    A?%+,2013 /#

    S!?/!"*!%,2013

    @M% "ndia $rivate Bimited &toc cars 78,-,:7+ 9;,+7,-+;

    @M% 3inancial &ervices $rivate Bimited &toc cars +,;1,9;,8+/ +,19,-,/;+

    @M% "ndia $rivate Bimited $arts purchase -+,;1,89/ 7,19,;9/

    .53C @an Bimited "nventory funding /8,9-,19 +;,:;,91

    "C"C" @an Bimited 5emo funding /;,:+,811 /8,77,7+8

    A

  • 7/25/2019 Automotive Dealership Report

    42/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    12 OTHERISSUES'

    Total &ales discount and ood!ill gesture discount as per accounting record at

    Ahmedabad division is as under *

    M#-/( S$!

    )+#.-/

    G##)5+ !/.%!

    )+#.-/

    T#/$

    October, /1+- +,-,-7; +,:9,+;; -,-/,8/

    4ovember, /1+- +;,87 +9,/9: -,7;

    5ecember, /1+- -,::,/9+ +,1;,+/; 8,18,17

    0anuary, /1+ +,89,181 -+,1/1 +,9:,171

    3ebruary, /1+ +,9/,9:+ ,8,;/- ;,-7,8+March, /1+ ,+-,8+/ ;:,+:- ,9/,718

    T#/$ 13,04,;=

  • 7/25/2019 Automotive Dealership Report

    43/43

    CHANDABHOY & JASSOOBHOYCHARTERED ACCOUNTANTS

    %e than the management and the staff of the Company for the cooperation e