Automobile Industries

FRAS International LLP specializes in the automobile sector, offering tailored financial, tax, and advisory services that encompass manufacturing, dealership networks, and component suppliers. Our expertise ensures adherence to industry-specific regulations while efficiently managing complex inventory and warranty accounting.

Audit and Assurance

• Statutory Audit: We perform annual audits aligned with company law, ensuring the accuracy of financial statements.
• Internal Audit: Our assessments of internal control systems focus on fraud prevention, particularly for high-value inventory and cash management in dealerships.
• Tax Audit: We help clients comply with all relevant tax laws, including income tax and GST.
• Cost Audit: Our evaluations cover production costs, material efficiency, and overheads within manufacturing units.

Taxation and Compliance

• GST Management: We oversee GST related to automobile sales, services, spare parts, and manage the RCM (Reverse Charge Mechanism) for certain services.
• Warranty Accounting: We provide guidance on warranty expense provisions, crucial for automobile manufacturers.
• TDS and Corporate Tax: Our team handles the filing of income tax returns and TDS (Tax Deducted at Source) for vendor and service center payments.
• Litigation Support: We represent clients in disputes with tax authorities regarding Excise, VAT, or GST.

Financial Reporting and Advisory

• Financial Statement Preparation: We create balance sheets and profit & loss accounts in accordance with accounting standards (e.g., AS/Ind AS).
• Variance Reporting: Our reviews of monthly results focus on analyzing deviations from budgets and forecasts.
• MIS Reporting: We develop Management Information Systems to monitor key performance indicators, including daily sales, service throughput, and inventory turnover.

Cost Optimization and Control

• Inventory Management: We implement inventory management controls, including "Just-in-Time" (JIT) systems and manage inventory depreciation.
• Cost Reduction: We identify opportunities to reduce expenses by optimizing procurement costs and streamlining logistics.
• Working Capital Management: We ensure sufficient cash flow for daily operations, including floor planning for dealerships.

Specialized Services

• Due Diligence: Our financial reviews support clients during mergers, acquisitions, or when establishing new dealerships.
• Risk Management: We create frameworks to identify financial risks, such as fluctuations in foreign currency and credit risk associated with dealer financing.
• Valuation Services: We offer valuation services for fixed assets, machinery, and components.