The Comptroller and Auditor General of India has appointed a Chartered Accountant firm to conduct the comprehensive audit of Saras Company Limited,…

Matters to be undertaken by the CA Firm while conducting the comprehensive audit of Saras Company Limited are: How does the overall capital cost of the project compare with the approved planned costs? Were there any substantial increases and, if so, what are these and whether there is evidence of extravagance or unnecessary expenditure?Have the accepted production or operational output been achieved? Has there been under-utilisation of installed capacity or shortfall in performance and, if so, what has caused it?Has the planned rate of return been achieved?Are the systems of project formulation and execution sound? Are there inadequacies? What has been the effect on the gestation period and capital cost?Are cost control measures adequate and are there inefficiencies, wastages in raw materials consumption, etc.?Are the purchase policies adequate? Or have they led to piling up of inventory resulting in redundancy in stores and spares?Does the enterprise have research and development programmes? What has been the performance in adopting new processes, technologies, improving profits and in reducing costs through technological progress?If the enterprise has an adequate system of repairs and maintenance?Are procedures effective and economical?Is there any poor or insufficient or inefficient project planning?