CA Shrirang Jadhav (Manager Finance) (70 Points)
03 November 2011Hello friends,
I need your guidance on INternal Audtit of Power Generation Company.
I need guidance on Important Areas, Peculierity of Power Gen Sector etc while auditing Power Gen. Co.
Thanks & Regards,
Shrirang R Jadhav
CS Alok Mishra
(Income Tax Practitioner)
(786 Points)
Replied 15 November 2011
Sir i am very less experienced than you but still i want to give reply on your post as i have done an Internal Audit of West Bengal's leading Electricity Co:
1. Most important part is Discussion with high level officers regarding all the functioning of the co.
2. Its very important to check whether the price of Raw Material ( Rice Husk, Straw, Coal) is competent with profit (if there is) and if not then what remedy may be suggested to minimize loss.
3. Boiler is most important part in Electricity production, so its important to check in what condition it is standing and also safety of its.
4. There is a new concept of CARBON CREDIT (as appreciation to co.) , its only for those companies which spreads less carbon or pollutes less to the environment. Check whether the co has ever availed this .
5. Also cash vouching is very important as i had find a lot of minor mistakes.
7. Check whether payment made to parties have been authorised properly by H.O..
6. Apart from all these, all general internal audit things to do.
Sir it was not all what i had done then but its what i remember now.
Thanks
ALOK
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