TGV SRAAC LTD

INTER OFFICE COMMUNICATION

From: To:
Vice President Sr. Vice President (M&M)
Internal Audit Department
Ref:I.A.R.2019-20/070 Date :10/08/19

Sub:-Finished Goods sold at the prices less than the price fixed by the Management
during July , 2019 -Reg.,

**
Audit has observed that Marketing Department has taken orders from customers during July,
2019 and accepted the same at the prices less than the prices fixed by the Management. Such
deviations are resulted in reduction of revenue or reduction of contribution to the Company in
total by Rs.90,50,532/- against the Finished goods of Caustic & KOH Division. Pre-approval
of Such deviations are not taken by Marketing from the Chairman.

Attached Excel sheet showing customer order wise price differences for ready reference.
Audit, in this context, needs ratification of Chairman for such deviations.

(K.SAMBAIAH – Dy. Manager -I/A)

[M.VEERA KUMARA SWAMY]

CC to ED (F&C) for kind information and necessary action and make suitable advice in this regard.
 TGV SRAAC LTD
INTER OFFICE COMMUNICATION

From: To:
Vice President Mr. Sathya Kumar (GM-Marketing)
Internal Audit Department
Ref:I.A.R.2019-20/071 Date :10/08/19

Sub:-Finished Goods sold at the prices less than the price fixed by the Management
during July , 2019 -Reg.,

**
Audit has observed that Marketing Department has taken orders from customers during July,
2019 and accepted the same at the prices less than the prices fixed by the Management. Such
deviations are resulted in reduction of revenue or reduction of contribution to the Company in
total by Rs.40,57,093/- against the Finished goods of Caustic Division. Pre-approval of Such
deviations are not taken by Marketing from the Chairman.

Attached Excel sheet showing customer order wise price differences for ready reference.
Audit, in this context, needs ratification of Chairman for such deviations.

(K.SAMBAIAH – Dy. Manager -I/A)

[M.VEERA KUMARA SWAMY]

CC to ED (F&C) for kind information and necessary action and make suitable advice in this regard.

CC to Sr.Vice President(M&M) for your kind information.

 TGV SRAAC LTD
INTER OFFICE COMMUNICATION

From: To:
Vice President Mr.Muniruddin (Hyderabad Office)
Internal Audit Department Mr.
Ref:I.A.R.2019-20/072 Date :10/08/19

Sub: Finished Goods sold at the prices less than the price fixed by the Management during
July, 2019 -Reg.
****
Audit has observed that Marketing Department Hyderabad Office has taken orders from customers during July,
2019 and accepted the same at the prices less than the prices fixed by the Management. Such deviations are resulted
in reduction of revenue or reduction of contribution to the Company in total by Rs .3,62,511/- against the Finished
Goods of Caustic Divisions. Pre-approval of Such deviations are not taken by Marketing from the Chairman.

The report in a table form given below shows customer order wise price differences for ready reference. Audit, in
this context, needs ratification of Chairman for such deviations.

NAME OF THE REGION PRODUCT PO RATE/TON- QTY MANGEMENT RATE Notional

CUSTOMER DATE FRT/ (Mts.) RATE DIFFE- LOSS
CRN RENCE IN Rs.
SHIKA TELANGANA C.SODA 29/07/19 33000/-LESS 9.41 34000/- 2000/- 18828/-
ENTERPRISES LYE 1000/-Cr. Note
SHIKA TELANGANA C.SODA 22/07/19 33000/- 21 35000/- 2000/- 42000/-
ENTERPRISES FLAKES
SHIKA TELANGANA C.SODA 25/07/19 35000/-LESS 105 35000/- 2000/- 210000/-
ENTERPRISES FLAKES 2000/-Cr. Note
MALANI TELANGANA C.SODA 11/07/19 35000/-LESS 63 35000/- 1000/- 63000/-
TRADING FLAKES 1000/-Cr. Note
COMPANY
FUSION TELANGANA C.SODA 20/07/19 35000/-LESS 21 35000/- 1000/- 21000/-
CHEMICALS & FLAKES 1000/-Freight
PRODUCTS (P)
LTD.,
DEEPAK TELANGANA C.SODA 07/19/19 36300/-LESS 38.42 34000/- 200/- 7683/-
NITRITE LYE 2500/-Freight
LIMITED&
NANDESARI
TOTALS 257.83 362511

[M.VEERA KUMARA SWAMY] (K.SAMBAIAH – Dy. Manager -I/A)

CC to ED-(F&C) for kind information and necessary action and make suitable advice in this regard.
CC to Sr.Vice President (M&M) for kind information.
 TGV SRAAC LTD
INTER OFFICE COMMUNICATION

From: To:
Vice President Mr.Jaleel-(Marketing)
Internal Audit Department Mr.Shafi- (Marketing)
Ref:I.A.R.2019-20/073 Date :10/08/19

Sub:-Finished Goods sold at the prices less than the price fixed by the Management
during July , 2019 -Reg.,

**
Audit has observed that Marketing Department has taken orders from customers during July,
2019 and accepted the same at the prices less than the prices fixed by the Management. Such
deviations are resulted in reduction of revenue or reduction of contribution to the Company in
total by Rs.48,15,000/- against the Finished goods of Caustic & KOH Division. Pre-approval
of Such deviations are not taken by Marketing from the Chairman.

Attached Excel sheet showing customer order wise price differences for ready reference.
Audit, in this context, needs ratification of Chairman for such deviations.

(K.SAMBAIAH – Dy. Manager -I/A)

[M.VEERA KUMARA SWAMY]

CC to ED (F&C) for kind information and necessary action and make suitable advice in this regard.

CC to Sr.Vice President(M&M) for your kind information.

 TGV SRAAC LTD
INTER OFFICE COMMUNICATION

From: To:
Vice President Mr. Mr. Narasimha Rao
Internal Audit Department
Ref:I.A.R.2019-20/074 Date :10/08/19

Sub: Finished Goods sold at the prices less than the price fixed by the Management during
July, 2019 -Reg.,

****

Audit has observed that Marketing Department (Mr. Narasimha Rao) has taken orders from customers
during July, 2019 and accepted the same at the prices less than the prices fixed by the Management. Such
deviations are resulted in reduction of revenue or reduction of contribution to the Company in total by
Rs.32000/- against the Finished Goods of Caustic Divisions. Pre-approval of Such deviations are not taken
by Marketing from the Chairman.

The report in a table form given below shows customer order wise price differences for ready reference.
Audit, in this context, needs ratification of Chairman for such deviations.

NAME OF THE REGION PRODUC PO RATE/TON- QTY MANGE RATE Notional

CUSTOMER T DATE FRT/ (Mts.) MENT DIFFE- LOSS
CRN RATE RENCE IN Rs.
SATYAKALA VIJAYAWADA C.S.LYE 20/07/19 35000/- Less
AGRO OIL 2600/Freight 20 34000/- 1600/- 32000/-
PRODUCTS LTD

TOTALS 20 32000/-

(K.SAMBAIAH – Dy. Manager -I/A)

[M.VEERA KUMARA SWAMY]

CC to ED-(F&C) for kind information and necessary action and make suitable advice in this regard.
CC to Sr.Vice President (M&M) for kind information
 TGV SRAAC LTD
INTER OFFICE COMMUNICATION
From: To:
Vice President Mr. Mr. Omkar (Bangalore Office)
Internal Audit Department
Ref:I.A.R.2019-20/075 Date :10/08/19

Sub: Finished Goods sold at the prices less than the price fixed by the Management during
July, 2019 -Reg.,

****
Audit has observed that Marketing Department (Mr. Omkar) has taken orders from customers during July,
2019 and accepted the same at the prices less than the prices fixed by the Management. Such deviations are
resulted in reduction of revenue or reduction of contribution to the Company in total by Rs.30,194/- against
the Finished Goods of Caustic Divisions. Pre-approval of Such deviations are not taken by Marketing from
the Chairman.

The report in a table form given below shows customer order wise price differences for ready reference.
Audit, in this context, needs ratification of Chairman for such deviations.

NAME OF THE REGION PRODUCT PO RATE/TON- QTY MANGE RATE Notional

CUSTOMER DATE FRT/ (Mts.) MENT DIFFE- LOSS
CRN RATE RENCE IN Rs.
S.P.ENTERPRISES KARNATAKA C.S.LYE 09/07/19 34000/- 10.19 35000 1000/- 10194/-

MAHENDRA DYE KARNATAKA C.S.FLAKES 15/07/19 34000/- 20 35000 1000/- 20000/-

CHEM.,
TOTALS 30.19 30194

(K.SAMBAIAH – Dy. Manager -I/A)

[M.VEERA KUMARA SWAMY]
CC to ED-(F&C) for kind information and necessary action and make suitable advice in this regard.
CC to Sr.Vice President (M&M) for kind information.
 TGV SRAAC LIMITED
INTER OFFICE COMMUNICATION
From: To:
Vice President Sr.Vice President(M&M)
Internal Audit Department
Ref:I.A.R.2019-20/76 Date:10/08/19

Sub: Review of Customer Orders (from 13.07.19 to 09.08.19) -Reg.,

****
We have reviewed customer orders and found certain existing orders were pending for dispatch and
taken new orders from the same customers at lower prices. It is also found that the dispatches were
made against new orders. As such the company sales revenue gets reduced. Such instances are
furnished hereunder in a table form for your kind information.
Cancelled Orders
Name of the Name of the Existing New order Dispatched New Differential Decrease
customer Product, Order Po No. Qty Order Price /Ton in sales
Existing PO Rate / &Date, against Rate / Ton Bal Qty
No.,Date, Po Ton New Po New Order (Rs.) Cancelled
Qty (Mts) (Rs) Qty (Mts) in (Mts) (Rs.)

M/s.KIRAN GLOBAL C.S.LYE

CHEM LTD Order taken by 33000/- Revised 30.650 32000/- 1000/- 50000/-
(NALGONDA) Chennai Office Po-201, Dispatched
201, 02/08/19
23/07/19 New Order
Bal.Qty=50 Qty 100
(50-0)
TOTALS 50 100 30.65 50000

Pending Orders
Name of the Name of the Existing New order Dispatched New Differential Decrease
customer Product, Order Po No. Qty Order Price /Ton in sales
Existing PO Rate / &Date, against Rate / Ton Bal Qty
No.,Date, Po Ton New Po New Order (Rs.) Pending
Qty (Mts) (Rs) Qty (Mts) in (Mts) (Rs.)

M/s.PARSHVA C.S.Flakes
ASSOCIATES Email, 37000/- Email, 25.000 31000/- 7000/- 175000/-
23/05/19 25/07/19 Dispatched
Bal.Qty=25 New Order
(50-25) Qty 50
(Pending)
TOTALS 25 50 25 175000/-
Audit Note: Marketing Department has to do dispatch the goods against the customer orders possessing at
higher rates so as to maximization of revenue to the company. Audit could not able to know why dispatches
are not made though the orders are available on hand. For every order cancellation approval of the
management is necessarily required being there is a Revenue LOSS to the company.

(K.SAMBAIAH – Dy. Manager -I/A)

(M.VEERA KUMARA SWAMY)

CC to ED - (F&C) for your kind information and necessary action in this regard.