“Study of Internal Audit Function with Financial Analysis of I-Cat”

Executive summary
Objectives of the study

  * This project aims at the advanced and thorough study of internal audit system in the organization including internal controls /systems & processes.
  * To establish the rationale of internal audit.
  * To find if the internal audit observations are complied with & corrective actions are taken on timely basis.
  * To look into the internal audit process and suggest practical solutions for improving the systems & Controls.
  * Studying the risk-profile of the organization & steps taken by the management to mitigate the risks associated.
  * Analyzing the external audit reports (Statutory Audit & Audit by the C&AG).
  * Co-ordination of Finance & A/c with other Departments of Civil, Equipments & Administration.
  * Steps taken by the management by way of formulating policies. Guidelines & procedures for effective control over various departments after review by audit.
  * Study of Project Financials along with Published Annual Report of past financial years.



Scope of the study
  * Internal audit reports
  * Statutory Audit Reports
  * CAG Audit Reports
  * Financial Statements
  * Day to day activities in F & A
  * Interface with other dept. etc

Chapter 1

INDUSTRY BACKGROUND – AUTOMOTIVE INDUSTRY

Since liberalization, the Indian automotive industry has emerged as a ‘sunrise sector’. The automotive sector has shown a tremendous potential for growth in the past few years. This industry is actually passing through a defining phase. Due to motorization, increase in need of mobility and availability of competitive automotive manufacturing location on the global map, India is emerging as a growing market for passenger cars.

After the process of De-licensing in July 1991 the Indian Automotive Industry has grown at a spectacular rate of 17% in the last few years. The industry has attained a turnover of Rs 1650000 crores and an investment... [continues]

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