We Wear Limited (WWL) is a publicly listed company in Ludhiana, Punjab. The Founder and Managing Director of the company is Mrs. Gurpreet Kaur who…

We Wear Limited (WWL) is a publicly listed company in Ludhiana, Punjab. The Founder and Managing Director of the company is Mrs. Gurpreet Kaur who established this company 60 years ago. The Chief Executive Officer (CEO) is Mr. Harman Singh who looks after the daily operations and the strategic implementation of various initiatives. The company manufactures garments for children of all ages from new born babies to pre-teenagers, having a wide presence both within and outside India. The company's vision is “to create apparel with exquisite designs to showcase latest trends in fashion!”. The apparel manufactured by the company concentrate on appealing to the aesthetic sense of young customers from infants to pre-teens. These end users would of course be guided by their parents or guardians in making their choices. Starting from a small proprietary concern to now a large public listed company, WWL has established its reputation in the domestic and international market in the last many decades. With the widespread connectivity, sales are mostly made online either directly on the company's website or on few e-commerce platforms. Some of the merchandise is also sold through large retail stores in malls that cater to niche customers who prefer in-store shopping. Financial report for the year F.Y. 2024-25 Lalit Agarwal, the head of finance of WWL has circulated the financial report for F.Y. 2024-25 for the perusal of the senior management in the month of April 2025. The annual turnover of the company for the F.Y. 2024-25 was ₹ 275 crores. On receiving the report, Harman Singh realizes that the sales turnover has started showing downward trend in the last 3 quarters. This is despite a growing demand for apparel for this age group both domestically and internationally. He has been aware that the company has recently been receiving constant customer complaints and negative market feedback. He therefore asks Nitish Suri, head of marketing, to conduct market surveys to understand current customer preferences and market trends. Findings of market research and customer satisfaction surveys conducted by Nitish's team The company operates in markets where competition is stiff, and customer loyalty is inconsistent. The marketing team conducted customer surveys to identify product features that will secure customer satisfaction and their loyalty. It was found that most parents do not want excessive embroideries on the children's garments as they are uncomfortable to wear. They expect that garments should be made from non-toxic dyes, lead free zippers, buttons that are secured to avoid choking hazard. They would prefer the fabric to be durable such that it can withstand frequent wash due to regular usage. While choosing the garment, its durability is carefully considered before purchasing it. They are not bothered much about the packaging of the product as it is disposed immediately once it is opened. Standard packaging that ensures proper storage and delivery of the product is all that is expected. Strategic Pivot Harman's instinct is to change the company's strategy that can satisfy customer needs better. Once all the inputs were available, he calls for a meeting of the senior management to discuss issues relating to product features and quality. The meeting held in May 2025 is attended by Megha Prahalad, creative head and lead designer, Omkar Desai, head of manufacturing, Nitish Suri, head of marketing, Shridhar Sampath, head of procurement, Rekha Jain, head of HR, Lalit Agarwal, head of finance. Gurpreet Kaur, Managing Director WWL is also present at the meeting. Refer to Annexure 1 for the meeting discussions. Sale of high-quality children's apparel procured from Australia and United States of America While WWL has started transitioning to manufacture **Question 1.8:** How should CA. Craig Morgan ADVISE CA. Sanjay Singh regarding the use of internal auditor's work for valuation of inventory?