Afterwards, 20 kg of order was returned by Mr A on 16th June 2018 due to which delivery to M/s RST was delayed. Logistic manager accepted that he was part of this deal and wanted to make profits out of such transactions, however he informed audit team that his part was just to deliver the goods and get it back from Mr A.
In case of M/s RST the order for 40 kg came as an urgent requirement, whereas the actual stock available at stockyard was just 30 kgs which was supplied instantly to the customer on 10th June 2018. The PQR at least takes 7 to 8 days to manufacture and deliver 10 kg of any pigment to Delhi stockyard. Therefore, even to get new stock on 10th June was not possible and hence stockyard manager had to wait for the stock which was to be returned by Mr A on 16th June. As soon as the stock arrived from Mr A, Stockyard manager made the delivery to M/s RST immediately.
Also, he accepted that such out of the books transactions were made many times to earn income out of unutilized stock lying in stockyard.
For M/s PQW & Associates
CA Rajat Agrawal