Identifying Financial Mismanagement of a Trading Company

Client / Industry Brief

The Client is an FMCG trading company mainly trading in perishable food items including meat products . Client also has a factory to process and repackage meat as required by retail outlets.
It has about 100 employees.
The company is rapidly gaining market share and pre dominantly working on brining exclusive products, and has a high growth potential in the next 3-5 years

Identifying revenue leakages:
Verifying internal and external financial and stock records to identify revenue leakages . Analyzing cost structures for appropriate pricing of products .
Setting up processes and controls :
To study gaps in processes and controls and implement cost effective business enabling processes in order to prevent revenue leakages but not disrupt any business activities and help maintain smooth flow of all activities.
Recommendation on potential ways of enhancing the overall robustness of process and business enabling practices.

Financial investigation led to identification of revenue mismanagement in cash sales as well stock management. Identified leakages, out which nearly half has been recovered by company .
Developed a pricing structure which incorporates all costs in an appropriate manner which led to prevention of under recoveries in any future sales.
Multiple gaps in process and controls were identified and better processes and controls were implemented leading to smooth functioning of business..