13h 23min, feb 10, 2025 y - Profine Key WP Review

Description:

Manufacture window/door profiles and glazing
B2B
Supply only
PM Group 1.8m Local 254k
PPE +1.8m
Inventories -1.5m reduced volumes/trading
Receivables down -1.3m due to factoring
Other receivables +1.6m due to factoring deposit +300k loan to Recycling PVC Ltd (IC loan?) 1m term is <1 year interest accrued
Cash is down -200k
Loan to GmbH +700k
Trade payables -1m due to volume
Revenue -10m to 39m
GP% 42% vs 38%
Bad debts 366k
Admin -600 expected what is Licence fees 700k also paid last year
PBT 970k

Audit approach
Revenue TOC
- SAP exception report shows no exceptions to Revenue
TOC No issues
VAT ledger not checked
Cut-off not checked incoterms but no issues on despatch
Purchases TOD; no issues
Journals
- tab 4 no investigation of spikes
- tab 7 no test sample of debit items to s/l
Confirmations
- 1 debtor confirm with errors no investigation; investigated later and found after-date credit notes not accrued
- debtors collections high
- no legal cases
- bank confirms received except Commerz
After date sales credit notes not selected
Accruals
- rebates; no MLP or material issues FY23 utilisation 65% 288k no PY SUAD
- no checking of subsquent credit notes raised
- bonus utilisation FY23 50% not on 213k SUAD
- supplier accruals over accrual 116k
IC balances agreed
Inventory cost walkthrough
- no check on absorption rates budget to actual

SUAD total 591k of which 474k is PY 117K is CY largely unutilised rebates and bonuses

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