Process

Production

Sub- Process
Maintenance of BoM
Quality Assurance

Design Control
Rationale of BoM
Configuration in SAP
Approval Process
Testing & Sampling Process
Lab equipment up gradation

Maintenance

Deployment of Contract Labour

System of In & Out

Overtime Management

Authorisation, Recording & Reporting process

Material Accounting

Measurement Process
Losses / Shortage Accounting Process

Log Book

Log book maintenance process

Fixed Assets

Physical Stock
Movement of Fixed Assets
Integration with SAP records

Statutory Compliance
Preventive Maintenance Schedule

Work shop Maintenance

Material Procurement

SAP Usage
Creation of Job Order & Purchase requisition
Vendor Master

Maintenance of Vendor master

Approved Vendor List

Material Requirement Planning
Creation & approval of Purchase Requisition

Request For Quotation (RFQ)

Preparation of Preventive Maintenance Process

Requisition Process
Authorisation
Schedule generation & updation
Authorisation & Requisition process
Authorisation & Compulsory Field

Operation Control
Interface with Fi /Co /MM Module
Adherence to laid down Policy including
authorisation of test reports
Lab equipment / stores record keeping
Timeliness of Sampling, Test Results & updation
of test records
Approval for variation
Legal Compliance
Authorization
Legal Compliance
Payroll Process
Physical stock taking process
Booking of shortage / excess process
Overall material balancing of key material
Long stocking materials
Legal Compliance - Cost Record Rules, Boiler
regulation,etc

Maintenance backlog monitoring process

Material usage record keeping process
Spare requisition process (new / old items)
Timeliness of attending maintenance requisition
Cost booking process
Job Outside PM Module
Timeliness of Job Order Completeness of required information in Vendor
Master
Duplication of Vendor code
Periodical review of Vendor Master
Identification of inactive vendors & blocking
thereof.
Transactions with unapproved vendors

Authorisation & Configuration in SAP

Determination of Minimum, Maximum & Re-order stock
Approval for the exception
level Process
System & authorisation of Purchase requisition
Delay in processing of Purchase requisition
System to ensure that material already in stock
not requisitioned.
Requirement of minimum nos. of RFQ
RFQ Outside SAP

Process

Sub- Process
Quotation
Selection of Parties (SOP)

Purchase Order & amendments thereto

Design Control
Requirement of minimum nos. of Quotations
System of preparation of SOP
Standard format of SOP & SAP usage for SOP
Authorisation
Completeness & Appropriateness of General Terms &
Condition

Purchases without PO

Imprest Purchases

Balance Confirmations & Account Reconciliations

Single Source/ Sole Vendor Items

Approval of purchases without PO

Approval Process
System & periodicity of balance confirmation &
reconciliation
Approval of Single source items

Operation Control
Rationality of repeat order When prices are falling or frequent fluctuating
Accuracy & Completeness of SOP
Approval of SOP
SOP Coverage
Rationality of repeat order When prices are falling or frequent fluctuating
Approval of POs having value significantly
higher then Purchase Requisition
Delays of unexecuted POs
Spares & equipment - Inventory build up
Quantum with % to total purchase of such
purchases
Material wise, Area wise analysis of such
purchases
Quantum with % to total purchase of such
purchases
Rationale of such purchases
Balance confirmation & Reconciliation of key
creditors
Quantum with % to total purchase of such
purchases

Basis of sole vendor

Services Procurement

Statutory Compliance - Like Excise & VAT

Creation & approval of Job Requisition
Quotation
Selection of Parties (SOP)

Job Order & amendments thereto

Authorisation Process
Requirement of minimum nos. of Quotations
System of preparation of SOP
Standard format of SOP & SAP usage for SOP
Authorisation
Completeness & Appropriateness of General Terms &
Condition

Bill Verification Process

SAP Authorisation for Service entry

Measurement process of Work Done
Bill approval authorisation

Delay in processing Job requisition

Rationality of repeat order When prices are falling or frequent fluctuating
Accuracy & Completeness of SOP
Approval of SOP
SOP Coverage
Rationality of repeat order When prices are falling or frequent fluctuating
Analysis of JOCs having value
significantly higher then Job Requisition
Delays of unexecuted JOCs
Timely creation of service entry
Timeliness of verification
Adherence to authorisation

Statutory Compliance - Like Service Tax & Works

Contract Tax
Stores Management

Material Master maintenance

Material coding system

Completeness of required information in Material

Master

Stores Management
Process

Material Master maintenance

Sub- Process
Gate entry for inward & outward material
Weighment at Weigh Bridge

Design Control
System of compulsory field in Material Master
Documentation Process
Integration with SAP

Receipt of Materials & Creation of GRN

GRN Creation Process

Acceptance (Quality Assurance) of Materials

Rejected Material
Storage
Physical Verification

Quality assurance Process

Fixation of Inventory Levels,

Including Lead Times
Indenting/ Issue from stores
Shelf Lives

System of fixation of inventory levels - Min, Max,

Average, Reorder levels
Authorisation for issues

Slow/ Non-moving Inventory

Insurance Spares
Returnable & Non Returnable
Gate Pass (RGP & NRGP)
Sales & Marketing

Sales Policy

Customer Master

Pricing

Order Procurement & Sales Order Creation

Credit Limit

Bin card maintenance Process

Periodicity of stock taking

System of monitoring of shelf life

Operation Control
Duplication of Material code
Integration of Gate entry with that of Stores
Accuracy of weighment
System of periodical calibration
Delay between Gate entry & creation of GRN
Reporting system of delays to management
Reporting system of delays to management
Status & delays of rejected material
Adequacy of storage conditions
Accounting treatment of discrepancies
Physical verification of random selected items
Approvals for exceptions
Charging of expense to correct Cost center
Analysis of shelf life recorded vis a vis actual shelf
life

System of review & intimation to user deptt. for expiry of

the material
Documentation defining Non / Slow moving items
Quantum with % to total store value
System of reporting non / slow moving items to
Detailed analysis of higher value items
management & user deptt.
System of identification, maintenance & approval.
Stock out position of insurance spares
Quantum with % to total store value
System of recording RGP & NRGP
Nature of material sent against RGP
System of control at security gate
Status material sent against RGP
Follow - up system
Reporting process for delays in RGP
Policy Documentation
Policy adherence & variation management
- Scope
Financial Delegation
System review of followed practices evolved over
- Authorisation
the period
Completeness of required information in Customer
Maintenance & Compulsory Field
Master
Duplication of Customer code
Authorisation
Adherence to Pricing authorisation
Adherence to Financial Delegation
Effective Price Master Vs. Invocie Price
System review of process followed
Order Booking, Processing & Recording Process
Unserved Order
Authorisation to create & change Sales Order in SAP
Pending Sales Order Review
Credit Appraisal Process
SAP Control over changes
Adherence to Credit Limit (Manual vs SAP
Authorisation
Control)

Credit Limit
Process

Sub- Process

Design Control

Operation Control
Review process of outstanding above Credit Limit

Payment Collection
Credit Notes

Debtor Review

Balance Confirmation & Reconciliation

Security Deposits

Logistics

Payment Collection Process

CMS arrangements
Documentation
Authorisation
Authorisation & SAP Control
Reivew process

Balance Confirmation & Reconciliation Process &

Periodicity
Policy Documentation

Container Turnaround Monitoring

Statutory Compliance

Monitoring Process

Depot & Godown Sales

Monitoring System at Marketing (HO)

Prcoess review of Cash, Cheques, Stock & Fixed
assets
Invoicing process & interface with HO (Marketing)
CMS arrangements
Inter depot transfers - Process Review
Attendance Process & Leave records

C&F Agent

C&F Agreement - Adequacy of terms & condition

Basis of calculation of C&F Commission

Railway wagon management

Process Review
Monitoring & liasion system review

Trasporter Management

Process Review

Timeliness of collection
Adherence to Discount Policy
Adherence to authorisation
System review of followed practices.
Aging of Debtors
Litigated Parties & measures taken
Bad debts / Write off
Balance confirmation & Reconciliation of key
customers
Adherence to Security Deposit Policy
System review of followed practices.
Timeliness
Sales Tax Law, Industry specific law relating to
marketing - Gas Cylender Rule, Calcium Carbide
Rule, Explosive Act, Shop & establishment act,etc
Timeliness of MIS from Locations
Physical verification of maintenance of Cash,
Cheques, Stock & Fixed assets
Cash Imprest & settelement thereof
Budgeted vs Actual exp.
Rationale of Inter depot transfer
Employee outstanding review
Statutory Complaince - Sales Tax, ESI, Income
Tax (TDS), Shop & Establishment Act, Minimum
wages
Timliness of renewal
Adherance to Agreement Terms
Accuacy of C&F Commission
Demurrage, detention charges
Timliness of loading & unloading
Comparison of records of Sales cordination Deptt.
& Produciton Deptt.
Record updation
Demurrage, detention charges

Adequacy of terms & conditions in Transport Agreement Adherence to Transporter Agreeement

Inter depot transfer management

Process Review

Process
Finance & Accounts

Sub- Process
-Cash & Bank
Bank Accounts

Design Control
System of verifiying bank charges

Bank Reconciliations

Periodicity
Process manual / computerised

Bank Guarantees & Letter of Credit

Authorisation
Monitoring Process
Limits
Physical control

Cash Balance & Payments

Invoice Verification

Invoice verification Process

Integration with other modules
Accounting of associated cost like insurance, freight &
taxes & duties
Authorisation
Record Keeping

Capital Expenditure
CAPEX Budgets
Test Run & Capitalisation
Project Accounting
Fixed Asset Regiser in SAP
Capital Purchases
Physical Verification of Fixed Assets

Process
Authorisation & Accounting Treatment
Project Monitoring Process
Maintenance & Design
Process Review
Verification & resultant adjustment in books

Insurance
Insured amount
Insurance Policy

Insured Covers adequacy

Declaration to Insurance companies

Process

Operation Control
Transaction processing
Review of non operative accounts
Cheque Book Custody
Fund avalilability process review
Fund transfers process
Treatment of funds in transit
Unutilised bank balances
Balance confirmation from Banks / Financial
Institution.
Review of Old outstanding entries
Timeliness & Completeness
Stale Cheques cancellation process
Control over cancelled cheques
Timeliness
Accuracy of Charges & Record keeping
Cash Balance & Insurance Cover
Quantum of cash purchases
Cash transactions & authorisation
fidelity insurance
Physical verification
Approval & Accounting of Demurrage, Detention
charges & LD Penalty, etc
Transporter bills - Contract terms & acknowledged
copy of consignment note
Civil work - Signed measurement book & crossed
checking
Compliance of TDS & Service Tax

Capitalisation
Completeness
Coding
Adjustment of discrepancies

Timeliness of renewal
Comparable quotation
Coverage adequacy

Process

Sub- Process

Design Control

Insurance Claims
Accounting & Reporting
Account Reconciliations (Debtors,Vendors,
Excise,VAT, Service tax) & Inter Unit
Reconciliations
Deposit of Statutory Dues (TDS, PF, ESI, etc.)
Physical Verification of Stocks
Debtors Review

Statutory Compliance

HR & Payroll

Safety, Health &

Environment

System Review
Process Review

Creditors Review

Process Review
Authorisation

Employees

Payroll

Taxes & Duties

Other applicable laws

ISD - Information
Technology

Periodicity

Advance Process
Process Review
Maintenance of Statutory Records
Advance Tax
New taxes introduced - VAT
Non - Compliance & corrective action
Process Review
Access Controls & OS Security
IT Business Continuity/ Disaster Recovery Plan

Attendance Process
Leave recodring process
Recruitment Process & Joining formalities

Hazardous Inputs Process

Operation Control
Timeliness of filing claims
Pending claims analysis
Old outstanding entries
Analysis of gaps
Adequancy of amount
Timeliness of payment
Accuracy & Authorisation of Data
Adjustment of variation in physical stock
Sales realised for later period but old outstanding
not recovered
Debtors having credit balance
Old advances
Credit notes not adjusted
Penalty / Penal interest paid to creditors
Status of advances given to creditors
Advances to employees
TDS
Statutory Compliances
Timeliness of returns & payments
CENVAT Credit & VAT input tax credit
Data Validation
Subsidy Claims - like FICC, Sales Tax
Updation of records
Timeliness of payment & return
Authorization
Access to Master Files & Modification
User's requirement / configuration
Physical Security of (Key) IT Assets
Adherence to Intellectual Property Rights
(i.e. Software Licenses)
Statutory Compliances
Review of Employee's advances
Full & Final settelement
Legal cases against employees
Overtime & Contract Labour system
Deposit of Statutory Dues
Timeliness of Returns
Existence & Rollout of Health & Safety
programmes
Incident Reporting & Follow Up Process

Safety, Health &

Environment
Process

Sugar related

Sub- Process

Cane Management

Design Control
Incident Reporting & Follow Up Process

Purchee management - System Review

Cane Management - Process Review
Cane Procurement Management - Process Review
Cane Development Activities - Process Review

Operation Control
Monitoring of Health & Safety programmes
Availability of Safety Equipment / deployment
thereof
Identification & Disposal of Hazardous Scrap/
Effluents
Compliance with Statutory requirements
No Cane Situations
Status of Cane Advances
Status of Seed Loan
Budgeted vs Actual exp.