Notes

-----Original Message-----
From: Yok Teng [mailto:[email protected]]
Sent: 07 September 2015 19:22
To: Ashish Desai; [email protected]; [email protected]
Subject: financial accounts and compliance.

Dear Mr. Ashish,

I hope everything is fine for you.

I visited Hudson MPA on the 2nd of September and note the following for your attention:-

1. From my discussion, I am pleased to note the submission of the returns for SOCSO (Social Security Insurance for employees), EPF - the Employees Provident Fund and the Schedular Tax Deduction (STD) have been complied with.


2. With regard to the submission of the tax payment and form which have to be forwarded to the Kuala Lumpur Inland Revenue Office, I have suggested that to ensure prompt and timely submission, the form and the cheque be couriered to my office for personal submission.


3. The print out of the financial accounts on 2nd September 2015 for the month of June show a net loss of RM496,420.00 whereas a print out on 24th July, 2015 for the month of June shows a net loss of RM225,170.22. The main difference is the expenditure on transportation which was reflected as RM422,867.31 on the print out of 2nd September 2015. The earlier print out shows a figure of RM235, 508.90 for the transportation charges. The accounts, according to the accounts personnel, Miss Siti, have been updated to July, 2015 and August entries have yet to be completed.



4. Besides I have requested for the audit adjustments for the year of 2014 and hopefully your office would be able to collect the same from the auditors. I would like to check whether the same have been entered in 2014 closing balances or the opening balances of 2015.


5. From the print out on 2nd September 2015 the stock balance as at 31st August 2015 is RM2,464,998.98. During the discussion, I was informed that no formula was provided as to how the percentage was derived as to the cost of sales against the invoices for each customer. I have proposed that the percentage to be scheduled out for review by the management. In addition I believe the stocks require closer examination as stock is a substantial part of the current assets.

6. I have suggested for a vouching exercise to all the entries for the year 2015 to ensure that they are posted correctly and to identify discrepancies or errors, if any. The current accounts personnel, unfortunately is very new and not familiar with the full accounting principles and the accounting software.

7. In this regard, I would be going to the factory again with my accounts manager to provide our input for I am afraid subsequent compliance of the GST in October maybe an issue if the accounts are not properly entered.

Our earlier engagement was more of monitoring and overseeing the financial and administrative compliance. However with the shortage of the competent accounting personnel, it seems our involvement would be more than that. Hopefully you could provide someone at your end to be in the office for a period of, let say, six months to a year to guide the accounting personnel so that she could by then perform independently.

I shall be most obliged for your comments. Have a good day.

Warm regards,
Kuan Yok Teng