IFC Framework Issue

RCM
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
Fixed Assets
O2C
O2C
O2C
HR & Payroll
HR & Payroll
HR & Payroll
HR & Payroll
HR & Payroll
HR & Payroll
P2P
P2P
P2P
P2P
Expenses
Expenses
Expenses
Taxation
FSCP
Particular
Risk/Control related to process of Inter Unit Transfer
Risk/Control related to process of capitalization of asset (approval, amount etc.)
Risk/Control related to process of adjustment of discrepancy found during PV of assets
Risk/Control related to process of booking of GRN under correct asset category
RCM is not complete w.r.t Control Category/Control Type/ Nature of Control/ Transaction frequency
Sales Invoicing is done with compliance to statutory requirements such as GST Law, E way bill etc
Risk/Control related to process of discount to customer
Risk/Control related to process of any updation in salary master
Risk/Control related to process of creation of new employee master
Risk/Control related to process of leave (Leave policy, application of leave)
Risk/Control related to process of loan to employees
Risk/Control related to process of recruitment
Statutory Compliances w.r.t Bonus, Gratuity, Leave Encashment
Risk/Control related to Advance payment to the creditors
Risk/Control related to demurrage charges or any other cost or penalty or any incurred due to delay in clearance of goods or
improper documentation
Risk/Control related to Late delivery / shortage / Excess any deductions
Risk/Control related to booking of expense (other than store expense)
Turn around time(TAT) not defined for submission of supporting documents/invoices by the user department to the Accounts
department
Depot Operations
Marketing
Supply Chain Management
O2C
Corporate Social Responsibility
P2P
Statutory Compliances w.r.t GST
IND AS and FSCP (Financial Statement closure procedure - Periodic & Annual)
Remarks Reference
Not in RCM (Will be included in due course) Mail Sent
Included in RCM FA 1
Transaction Frequency is to updated Done
Included in RCM except for Eway bill O2C 1 Done
Included in RCM O2C 2
Nature & Transaction frequency to be updated Done
Included in RCM HR 1
Included in RCM except for bonus HR 6 Mail Sent
Included in RCM P2P 1
Required discussion
Mail Sent
Required discussion Mail Sent
Nature to be updated Done
Separate RCM Expenses!A1
Required discussion
Mail Sent
Transaction Frequency is to updated Done
Included in O2C Matrix O2C!A1
Separate RCM O2C!A1
Separate RCM P2P!A1
Included in Taxation RCM Taxation!A1
Separate RCM FSCP!A1
RISK CONTROL MATRIX - Fixed Asset
Identifying Control Risk & Mitigation
Financial Statement Assertions
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
S NO Control Objective Sub Process Risk No What may go wrong? / Risk Description Control No
1 Standard Operating practice is available Company Policies & R1 Standard Operating practice is not in place for C1
for conduct of operations with regard to Procedures conduct of operations with regard to Asset
Asset Management functionalities Management functionalities
2 SOPs are communicated to all relevant Company Policies & R2 SOPs are not communicated to all relevant C2
employees Procedures employees.
3 There is a DOA Matrix in place with Company Policies & a a R3 There is a no DOA Matrix in place with regards to C3
regards to Fixed Asset procurement Procedures Fixed Asset procurement
4 Procurement of assets are done with Capital Budgets for a a R4 Procurement of assets are not done as per approved C4
reference to approved Capital Budgets Purchase of Assets Capital Budgets
5 The vendors of the capital assets are Asset Purchase - R5 The vendors of the capital assets are not approved C5
approved Approvals
6 Indent is Authorized. Procurement of Fixed R6 Indent is unauthorized C6

Asset
7 There is a timely purchase of Fixed Procurement of Fixed R7 Delay in procurement Schedule C7

Asset in the Company Asset
8 Indent is missed by the Commercial Procurement of Fixed R8 Indent is missed by the Commercial Department C8
Department Asset
9 Technical specifications are considered Procurement of Fixed a R9 Technical specifications are not considered while C9
while placing the RFQ Asset placing the RFQ (Request for quotation)
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
10 Minimum number of comparative Procurement of Fixed a R10 Only one quote is received C10
quotations are received by the asset Asset
purchase department before final
selection is made.
11 One Vendor can submit only one Procurement of Fixed a R11 Same Vendor presents quotation under different C5
quotations. Asset names.
12 All new Vendors are checked for their Procurement of Fixed a R12 Vendors are not checked for their credibility C11
credibility Asset
13 Vendor Selection is authorized. Procurement of Fixed R13 Vendor Selection is not authorized. C12
Asset
14 PO should match to the Indent Procurement of Fixed a a R14 PO does not match to the Indent C13
Asset
15 PO is not back dated. Procurement of Fixed a R15 PO is back dated. C14

Asset
16 Open PO's and Indents are tracked Procurement of Fixed a R16 Open PO's and Indents are not tracked C15
Asset
17 Vendor complies with PO Terms Procurement of Fixed R17 Vendor does not comply with PO Terms C16
Asset
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
18 Goods received are same as invoiced. Procurement of Fixed a a R18 Goods received are different from as invoiced. C17
Asset
19 GRN is raised on a timely manner Procurement of Fixed a R19 GRN is not raised or not raised timely C18
Asset
20 Value of invoice is matching to PO. Procurement of Fixed a a R20 Value of invoice is not matching to PO. Quantity in C19
Quantity in GRN is matching to invoice. Asset GRN is not matching to invoice.
21 All emergency purchases are approved Procurement of Fixed a R21 Emergency purchases not approved C20
and follow a regularization process Asset
22 Imported assets are accounted Procurement of Fixed a a a a R22 Imported assets are accounted incorrectly / C21
accurately Asset inconsistently
23 FAR matches with the Accounting Procurement of Fixed a R23 FAR does not match with Accounting C22
records Asset records
24 FAR is updated for all invoices entered Procurement of Fixed a R24 Invoice accounted in Accounting system is not C23
in the Accounting System. Asset entered in FAR
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
25 No duplication of entries in the FAR Procurement of Fixed a R25 Duplication of entries in FAR C22
Asset
26 No duplication of purchase entries in the Procurement of Fixed a R26 Duplication of purchase entries in Accounting C24
Accounting System. Asset system
27 Physical verification is carried out every Physical Verification a R27 Physical verification is not carried out in a financial C25
year. year
28 Insurance for assets initiated and Physical Verification a R28 Insurance for assets not initiated or not renewed C26
renewed on a timely basis.
29 Expenditures of a non-capital nature Improvements to Fixed a R29 Expenditures of a non-capital nature (e.g., repairs C27
(e.g., repairs and maintenance)are not Asset and maintenance) have been incorrectly capitalized.
capitalized.
30 Subsequent improvements made to fixed Improvements to Fixed a a R30 Subsequent improvements made to fixed assets C28
assets (e.g., remodels, additions) are Asset (e.g., remodels, additions) are incorrectly expensed.
capitalized.
31 Depreciation expense is calculated Depreciating Fixed a a R31 Depreciation expense is::- C29
correctly. assets 1) Calculated using an inappropriate rate
2 ) Recorded at the incorrect amount
3) Not calculated for all fixed assets.
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
32 Depreciation expense is recorded for Depreciating Fixed a R32 Depreciation expense is recorded for assets of a non- C30
assets of capital nature only and which assets capital nature or for assets that have been disposed.
have not been disposed.
33 Impairment testing is done for assets Fixed assets Valuation a a R33 Impairment indicators may exist for fixed assets, but C31
where exists any impairment indicators. are not known to management.
34 Lease classification into Operating and Classification of Leases a a R34 Operating leases for fixed assets are incorrectly C32
Finance is done correctly. accounted for as finance lease or vice-versa
35 Correct and accurate recognition and Right of Use Assets a a a R35 Incorrect and inaccurate recognition and C33
measurement of right of use assets measurement of right of use assets
36 Identification of short term leases or low Short term or low value a a R36 Identification of short term leases or low value C34
value leases is done according to leases leases is not done according to relevant standard.
relevant standard.
37 Capital Work in progress (CWIP) is Acquisition of Fixed a a R37 Capital Work in progress (CWIP) is not transferred C35
transferred to fixed assets when the asset assets to fixed assets when the asset is placed into service
is placed into service. and therefore not depreciated.
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
38 Incidental expenses related to CWIP is Acquisition of Fixed a a a R38 Incidental expenses related to CWIP is not correctly C36
correctly and properly capitalised assets and properly capitalised
39 Disposal of Assets are authorized and Disposal of Fixed Asset a a R39 Disposals of fixed assets are recorded in the general C37
recorded correctly ledger at incorrect amounts.
40 The entity not records the disposal of Disposal of Fixed Asset a a a R40 The entity incorrectly records the disposal of fixed C38
fixed assets for assets still owned by the assets for assets still owned by the entity.
entity.
41 The valuation methodology used for Impairment of FA a a a R41 The valuation methodology used for impairment C39
impairment purpose is appropriate under purpose is inappropriate under the circumstances.
the circumstances.
42 Intangibles: Recording Intangible a a a a R42 Intangibles : C40
• Are correctly recorded Assets • Are incorrectly recorded
• Are not recorded in excess of the asset • Are recorded in excess of the asset amount rather
amount rather than as an other expense. than as an other expense.
Nature of Control Type of Control
Person Responsible Substantive
Control Description at DSL (Preventive/ (Manual/
Procedure Planned
Detective) Automated)
A standard operating procedure is in place in the company for all HOD - Procurement & Preventive Manual
fixed asset procurements and accessible to concern employee Store Incharge
through intranet. All asset procurements go through an initial
requistion, indent, GRN and its Capitalization in the accounting
system.
SOPs about Fixed Assets are communicated to all relevant HOD - Procurement , Preventive Manual
employees through intranet. Store Incharge &
HOD Accounts
Company has defined DOA Matrix regarding procurement of FAR HOD - User Preventive Automated
which is shared with relevant employees through intranet. Department, HOD -
DOA matrix is also defined in IMIS. Procurement
All the procurement related to capital expenditure are sanctioned Directors Preventive Manual
based with the approval of Directors.
Vendor registration process is jointly taken by the Procurement HOD - Procurement Preventive Manual
Team and technical team before placing order with the Vendor. All HOD - Technical
vendors are required to produce their KYC details .Vendor is HOD -Taxation
considered as approved only after getting approval of his details
from Taxation team and procurement head
Company has defined in built SOD Matrix in system itself which HOD - Procurement Preventive Automated
defines the authority for raising indent and its approval. HOD -IT
If the indent remains unauthorized, PO generation is not possible.
User Department HOD's ensure timely orders and delivery of Fixed HOD - User Preventive Manual
Asset. Departmenmt
Procurement Head also constantly monitor through tracking sheet HOD - Procurement
prepared by him in excel.
Company has defined automated process in IMIS itself that PO HOD - Preventive Automated
cannot be raised if the relevant indent is not present and approved in Procurement
the system. HOD -IT
HOD - Capital Purchase Department monitors that all technical HOD - Procurement Preventive Manual
specifications are shared while placing the RFQ and meeting of HOD -Techinical
prospective vendors with HOD of user department are arranged in
case the purchase involves technical specification.
Procedure Planned
For regular vendor or purchase which is unique there could be a HOD - Procurement Preventive Manual
possibility of one or no quotation but in case of all other purchases a HOD -Techinical
minimum of 3 quotations are considered. All PO's are backed by a
justification note in case of single quotation. HOD procurement
ensures compliance of quotation process
Vendor registration process is taken by the Commercial Team before HOD - Preventive Manual
placing order with the Vendor. All vendors are required to produce Procurement
their KYC details .Vendor is considered as approved only after
getting approval of his details from Taxation team and procurement
head
Checking of vendors credibility is ensured by HOD - procurement. HOD - Procurement Preventive Manual
However, for high value purchases from a first time vendor clauses
related to performance guarantee / retention money / liquidation
damages are also entered in agreement / order document.
1) For FA procurement the decision of vendor selection is jointly HOD - User Preventive Manual
taken by Purchase & Technical Dept. Department
2) For CWIP or any project related - Vendor selection are based on HOD - Procurement
decision taken by committee under the supervision of directors. Directors
Indent and PO mismatch is not possible. Since generation of PO is IMIS Preventive Automated
linked with indent present in the IMIS.
The Purchase Department verifies that the PO date is after the date of HOD - Procurement Preventive Automated
indent and not back dated.
Also PO generation is not possible if relevant indent is not present.
Procurement head tracks open PO's and indents manually only and HOD - Procurement Preventive Manual
follow up is taken on timely basis by Procurement Head
Capital Asset Purchase Department monitors that the vendor HOD - Procurement Preventive Manual
complies with the PO terms and penalty clauses are mentioned in the
Order and invoked in case of non compliances.
Also in case of high value purchases performance guarantee /
retention money / liquidation damages are also sought for.
Procedure Planned
User Department checks if the the specification of goods received HOD - User Preventive Manual
matches with the PO, Invoice and the delivery chalan. Goods are Department
rejected if not in conformity to the PO. Quality department at the HOD- QC
unit has the onus to ensure that goods received are same as per PO
and invoice.
GRN is created immediately after the unloading of material which is Store Incharge Preventive Manual /
ensured by Store Incharge. Automated
GL posting of FA procurement in IMIS not possible without creation
of GRN.
There is auto flow of data from PO in to GRN and finally into AP Team Preventive Automated
vendor ledger.
In case of short qty., GRN will be prepared with actual qty & invoice
will be booked with invoiced qty and a debit is auto generated by
IMIS for short qty. GRN is then also approved by user department.
In case value of invoice not matching with PO, invoice will be
booked with as per actual invoice and a debit note is also created by
AP team for difference amount which is verified by their HOD.
Invoice booking not possible in IMIS unless approved by Business Head Preventive Manual
management as per DOA. Both routine and emergency purchases are
always supported by a PO with the approval of Business Head.
Imported FA is accounted at the exchange rate prevailing on HOD-F&A Preventive Manual

the date of ownership of the goods is transferred to the
company as per the purchase order, which is verified by DGM-F&A.
DGM - F&A also ensures that all incidental expenses (like duty
paaid, CFA charges etc.) are also capitalised. FA 1
Procurement Head analyse the purchase cost (including any duty
paid thereon) of asset to be imported and the best one is selected
after negotiation with vendors.
The finance personnal at respective unit/depot recocile the FAR HOD-F&A Preventive Manual
with accounting records on monthly basis which is further verified
by their HOD. FA 1
The F&A personnal at HO responsible for FAR also reconcile the
same on monthly basis.
Purchase of fixed assets is first booked in the accounting system and HOD-F&A Preventive Manual
thereafter the same is manually updated in FAR.
The finance personnal recocile the FAR with accounting records on
monthly basis which is further verified by their HOD. FA 1
Procedure Planned
The finance personnal at respective unit/depot recocile the FAR HOD- F&A Preventive Manual
by their HOD. FA 1
Posting of accounting entries of purchase is linked with GRN and HOD- F&A Preventive Manual
PO and also DGM - F&A required to approve any posting done by
AP team, hence duplication of purchase entries in accounting system
is not possible. FA 1
The finance personnal at respective unit/depot recocile the FAR
by their HOD.
Physical verification of all assets is ensured to be carried out in each HOD- F&A Preventive Manual
financial year and the same is verified by the F&A, Stores,
Technical, Production and Admin Dept. based on category and
location of assets.
The separate insurance team extract FA Schedule from IMIS for Insurance Department Preventive Manual
renewal of insurance which is reveiwed and validated by their HOD at Corporate
and SVP and further approval by Directors.
Expenditures of a non-capital nature are reviewed and approved by Unit Head Preventive Manual
finance personnel sitting at each location and Journal entry and HOD - Balance Sheet
supporting documentation for expenditures of a non-capital nature Team
are reviewed by Unit Head.
Also HOD - Balance Sheet team at HO periodically review to ensure
correct captitalization of expenses.
FA 1
Subsequent improvement project plans are reviewed by finance HOD - Balance Sheet Preventive Manual
personnel with knowledge of the capitalization policy as per Ind As. Team
The journal entry and supporting documentation for subsequent
improvement expenditures are verified by HOD - Balance Sheet
team at HO.
FA 1
The depreciation expense is calculated through the FAR Module at Unit Head Preventive Automated
the depereciation rate updated by the finance team as per the
Companies Act which is reviewed by their HOD.
The asset classification for a newly purchased asset is put into the
system by the finance team of respective units/depots responsible for
capitalization of fixed asset and reviewed by their HOD.
Procedure Planned
Non capital nature items are expensed out and same is also ensured FAR Module Preventive Automated
by DGM F&A. FAR module (which calculates depreciaation) is also
reconciled to accounting records on monthly basis.
Depreciation calculated by FAR module is always for capital and
existing items for disposed assets FAR module removes WDV of
such asset from the FAR on the date of sale and the depreciation is
calculated on the asset only till the date of sale.
On a yearly basis, Balance Sheet Team at HO assess internal or HOD - Balance Sheet Preventive Manual
external factors for indicators of impairment and the same is Team
discussed with the respective business head & CFO before a decision
is taken on the same.
New lease contracts and lease modifications are reviewed by Balance HOD - Balance Sheet Preventive Manual
Sheet Team to determine whether they meet the criteria for finance Team
or operating lease treatment, including reference to the appropriate
accounting framework and principle which is also verified by HOD -
Balance Sheet Team.
Recognition and measurement related to right of use assets done by HOD - Balance Sheet Preventive Manual
balance sheet team is reviewed and approved by HOD - Balance Team
Sheet Team FA 1
Balance sheet team at HO is responsible for accessing the impact of HOD - Balance Sheet Preventive Manual
Ind AS 116 related to identification of short term leases or low value Team
leases which is reviewed and validated by HOD - Balance Sheet
Team.
Capital Work in progress (CWIP) is transferred to fixed assets when HOD-F&A Preventive Manual
the asset is ready for use on the basis of completion certificate. The
finance team of respective unit also scrutinise the CWIP ledger for
its correctness which is reviewed by their HOD.
At year end Finance team at HO also scrutnise the CWIP ledger for
its capitalization which is reviewed by HOD - Balance Sheet Team. FA 1
In case of significant balances in CWIP ledger directors are also
involved for its correctness and capitalization, if required.
Procedure Planned
Details of incidental expenses related to CWIP is provided by project HOD-F&A Preventive Manual
head at respective units which is verified by Associate Vice
President of Corporate Project.
The entry posting done by finance team is reviewed and verified by
their HOD FA 1
Any incidental expenses related to CWIP of corporate office is
scrutinised by FA in-charge and reviewed by HOD - Balance Sheet
Team.
Sale invoice of fixed asset is manually entered in the books. It is HOD-F&A Preventive Manual
ensured by F&A Head that the profit / loss on such asset is acurately Directors
booked and that such asset is removed from the FAR.
Disposal of asset is duly approved by Directors.
The entry for asset disposal is passed by F&A personnal which is
reviewed by F&A Head.
For every disposal of fixed assets approval of directors is required. Directors Preventive Manual
Hence, recording disposal for assets still owned by entity is not
possible.
Also entry for asset disposal is passed by F&A personnal which is
reviewed by F&A Head.
The valuation methodology used for impairment purpose are based Respective Business Preventive Manual
on the judgement of respective unit heads which is further reviewed Head
by respective business head and CFO. CFO
The journal entry for intangible assets are recorded by AP team DGM -F&A Preventive Manual
which is reviewed by DGM - F&A.
RISK CONTROL MATRIX -Revenue & Debtors
Presentation &
Completeness
Occurrence
Obligations
Type of Control
Existence /
Disclosure
Valuation
Accuracy
Cut Off
S No Control Objective Sub Process Related Account Risk No What may go wrong? / Risk Description Control No Control Description Control Owner (Automated / Documents Reference Remarks Testing Reference
Manual)
1 The employees are aware of the standard sales process Standard Operating Practices Debtors R1 The employees are not aware of the standard sales C1 SOPs are defined and posted on intranet and there is a depot Manual in place which defines Depot in charge Manual Depot manual
(SOP) process or are not using a valid or authorized SOP, the sales process to be followed across depots within the organisation.
which results in inefficient sales.
2 The employees are aware of the standard sales process Standard Operating Practices Debtors R2 The employees are not aware of their responsibilities in C2 Any employee on joining is by his respective reporting Manager is made aware of the same. Depot in charge Manual
and they adhere to it (SOP) the sales function. Also depot manual, describing the detail process of sales function, is available at the Depot
which is accessible to employees.
3 Item codes can be created for authorised products and Master Data Creation √ Debtors R3 Unauthorized item codes are created by unauthorized C3 Defined person opens the product codes- CPC Head Manual
by authorised person only persons resulting in bogus sales. - The requirements for new item code is initiated by CPC dept.
- CPC team open the new item codes after approval of CPC head
4 Only authorized customer codes are created by Customer Master √ Debtors R4 Unauthorized customer codes are created by C4 A standard pre appointment form is generated and filled for any customer. This is signed by SM - F&A Manual Customer appointment form We had verified forms on sample
authorized persons. unauthorized persons. GM/RSM, Sales Head, CPC and Business Head along with verification of KYC documents (AR Team) basis
and checking status of GST registration from GST portal before creation by SM-F&A and
activated by IT team.
5 Any Changes to customer data like address, contact Customer Master Debtors R5 Changes to customer data like address, contact details C5 Any change in customer master is approved by SM-F&A after a change request is received SM - F&A Manual We had verified forms on sample
details etc. are authorized. etc. are unauthorized. from the customer either by the sales team or SCM dept. or AR Team. In case of small (AR Team) basis
changes (i.e., change of address), customer master data will be amended and for major changes
(i.e., change in name), new customer master will be created after closing the existing customer
master and any balances in old ledger will be settled immediately.
6 All items of costing are considered for fixing price of Fixation of Sales Price √ Cost of Sales R6 The costing of all the departments are not considered C6 The price for any product is fixed by the Central Planning Department under the supervision CPC Manual
a product ,Debtors while fixing price of a product. of Director.
The CPC dept. ensures the costing of all dept. to be taken which is further reviewed and
verified by CPC Head
7 Authorized /Correct creation/modification in price Amendment in Sales Price √ Cost of Sales R7 Unauthorized /Incorrect creation/modification in price C7 Any change in price master will be done by IT team only after getting the approval of CPC CPC Manual
master ,Debtors master head & Director.
8 Payment Terms / Credit terms are approved the HOD Terms of Contract Debtors,Cash & R8 Payment Terms / Credit terms approved by C8 For credit limit authenticity - DGM - F&A prepares a O/s report on daily basis which is then BOD Automated Credit Sanction copy Verification of credit sanction copy
Sales/Finance/Management Bank Directors/BH are superseded by the Sales team at Order verified by top management to ensure that the limits are in line with approvals.
Entry level resulting in terms detrimental to the Further, a sales order is processed only after 100% Advance is collected or there is a pre
Company defined credit limit against the customer that has been initiated / recommended by sales head
and approved by Director and in case of modern trade, approved by Business Head.
9 Sales and Trade Debtors are correctly recorded Recording of Sales √ √ √ √ Debtors R9 Sales and trade receivables are recorded C9 Depot- Depot in charge Automated / Documents trails of Sales
1) That do not relate to valid sales/shipments - Depot incharge is the only person responsible for punching the order, received from SCM Manual
2) Recorded at the incorrect amount team, in IMIS
3) Recorded in the incorrect period. - The Depot team prepare the performa invoice on the basis of order punched by depot
incharge after ensuring the valid shipments is loaded in the vehicle which is further approved
by depot incharge
- There is dual checking of shipment at the time of loading
- The Depot incharge prepares the final bill after verifying it from the order received from
SCM at the point of sales and forward the documents to accounts for recording of trade
receivables.
Unit-
- Dispatch team at unit punch the order received from SCM in IMIS and prepare the performa
invoice after ensuring the valid shipments is loaded in the vehicle which is reviewed and
verified by SM - F&A
- There is dual checking of shipment at the time of loading.
- Dispatch team prepare the final bill which is verified by SM - F&A.
10 Sales are classified appropriately as per Schedule III Recording of Sales √ Debtors R10 Sales are not classified appropriately as per Schedule III C10 The company has defined GL codes in IMIS through which sales are properly recorded and IMIS Automated Autogenerated system in place All Samples - Noida Depot
to the Companies Act, 2013 to the Companies Act, 2013 classified as per Schedule III to the Companies Act, 2013.
Also finance head on monthly basis reviews the sales data and if any mistakes appears, the
same will be corrected on timely basis.
11 Discounts given to dealers are authorised Discounts √ Debtors R11 Unauthorized discounts given to dealers C11 In the beginning of each FY, CPC team prepares discount policy which is then verified by Director Automated
CPC head and then final approval by Director. Post Director approval, discounts are punched
in IMIS and are then auto populated in the invoice based on customer and product details.
12 Discount given to eligible dealers Discounts √ Debtors R12 Discount given to ineligible dealers C11 In the beginning of each FY, CPC team prepares discount policy which is then verified by Director Automated
CPC head and then final approval by Director. Post Director approval, discounts are punched
in IMIS and are then auto populated in the invoice based on customer and product details.
13 Any credit memos issued are known to accounting. Recording of Sales √ Debtors R13 Any credit memos issued are not known to accounting. C12 Credit notes are prepared only from System by F&A team post approval of sales head. Sales Head Automated
14 Sales are recorded only after all necessary revenue Recording of Sales √ Debtors R14 Sales are recorded prior to all necessary revenue C13 The invoices are generated at the Point of dispatch which is then verified by the Depot Depot in charge Manual Documents trails of Sales All Samples - Noida Depot
recognition criteria being met. recognition criteria being met. incharge / unit head.
Sales are recognised immediately upon despatch from the depot / unit, however posting will
be done either on daily or fortnightly or monthly basis.
At each year end, sales invoices which are not ex-factory are monitored as to identify date of
acceptance by customer and if required, sales are then reversed from books of accounts.
15 Invoice is generated and recorded only after goods Recording of Sales √ Debtors R15 Goods are shipped to customers and no invoice is C14 The security guard maintains the inward and outward register and for every outward Depot in charge Manual Documents trails of Sales All Samples - Noida Depot
are shipped to customers generated and recorded. movement, guard check the invoice and capture the details in the register.
Also in GST regime, for creation of E-Way bill invoice no is required, hence invoice is
generated before goods are dispatched.
16 Trade receivables as per the general ledger reconcile Recording of Sales √ √ √ √ Debtors R16 Trade receivables as per the general ledger does not C15 The trade receivables general ledgers are reconciled on monthly basis with the trade AR Team Manual Reconciled with statement received from
to the trade receivables records reconcile to the trade receivables records receivables trial balance and the same is reviewed by AR head. Any variations are being counter party. Yearly statements are sent to
reviewed on timely basis. the parties for confirmation of balances.
17 All Credit notes issued or committed to the customer Sales Returns and Credit Memos √ Debtors R17 Credit notes are issued or committed to the customer C16 The depot team generate the credit note after the stock taking of goods returned which is then Depot Manager Automated / Documents trails of credit notes
are correctly recorded but not correctly recorded approved by depot manager. Same is also pre approved by sales head. Manual
For generation of credit note IMIS requires reference of original invoice no and customer
details and rate will be automatically fetched from the original invoice details. Credit note is
then auto posted in IMIS.
18 Credit Notes are issued for all actual return of goods Sales Returns and Credit Memos √ √ Debtors R18 Credit notes are not issued and recorded for goods C16 The depot team generate the credit note after the stock taking of goods returned which is then Depot Manager Automated / Documents trails of credit notes Credit notes are issued only after the
only returned by customers or issued and recorded when no approved by depot manager. Same is also pre approved by sales head. Manual purchase return is communicated by the
goods returned have been received For generation of credit note IMIS requires reference of original invoice no and customer party and the goods returned are inspected
details and rate will be automatically fetched from the original invoice details. Credit note is at the depot.
19 Credit notes are issued for the correct amount. Sales Returns and Credit Memos √ Debtors R19 Credit notes are issued for the incorrect amount. C16 The depot team generate the credit note after the stock taking of goods returned which is then Depot Manager Automated / Documents trails of credit notes The calculation amount of credit note is
approved by depot manager. Same is also pre approved by sales head. Manual done by the system
20 Sales return transactions occurring around period-end Sales Returns and Credit Memos √ √ Debtors R20 Sales return transactions occurring around period-end C17 Post approval by sales head, depot / unit team will prepare the credit note which is further Depot Manager Manual Documents trails of credit notes
are recorded in the correct period are not recorded in the correct period checked and approved by Depot Manager / unit head to ensure its correct recording.
21 Invoices are generated and sales recorded for Recording of Sales √ √ Debtors R21 Invoices are generated and sales recorded for shipments C18 The customer masters are created, updated, modified or removed only after approval from the SM - F&A Automated
shipments to only real customers. to fictitious customers. GM/RSM, Sales Head, CPC & Business head ensuring that the system generates invoices only (AR Team)
for pre existing customers codes
22 Invoice/Sales Order adjustments are accurate and Recording of Sales √ √ Debtors R22 Invoice/Sales Order adjustments are inaccurate/ C19 No adjustments in IMIS are allowed to be made in the Invoices that are approved. They can IMIS Automated
authorized unauthorized only be cancelled.
23 Sales are made to customers with good credit standing Provision for Doubtful Trade √ Other expenses R23 Sales are made to customers with poor credit, which C20 Sales are made to the customers who are duly approved by Sales Head / Business Head as per Sales Head Automated
in the market receivables may affect revenue recognition criteria being met and policy.
the ultimate write-off of uncollectible trade receivables. Further, a sales order is processed only after 100% Advance is collected or there is a pre
defined credit limit against the customer that has been initiated / recommended by sales head
and approved by Director and in case of modern trade, approved by Business Head.
RISK CONTROL MATRIX -Revenue & Debtors
Presentation &
Completeness
Occurrence
Obligations
Type of Control
Existence /
Disclosure
Valuation
Accuracy
Cut Off
S No Control Objective Sub Process Related Account Risk No What may go wrong? / Risk Description Control No Control Description Control Owner (Automated / Documents Reference Remarks Testing Reference
Manual)
24 Invoice are generated eventhough the approved credit Recording of Sales √ Debtors R24 Invoices are generated in excess, individually or in the C21 IMIS suspends invoice generation that individually or aggregately exceed customer credit IMIS Automated
limit exhausted aggregate, of customer credit limits, which may affect limits. Adhoc approval by the director is required prior to the invoice generation in IMIS
revenue recognition criteria being met and the ultimate
write-off of uncollectible trade receivables.
25 Quality Checks are carried out before any despatch Order Execution √ Debtors R25 Quality check is not performed while loading the goods C22 For sales made from unit - quality check of product is done at the time of packing of the Units Manual
for sale to outside customers which may lead to goods.
rejection of goods by customer. Post packaging, there is no process required for quality check.
26 Credit notes issued are never in excess of the amount Sales Returns and Credit Notes √ √ Debtors R26 Credit notes are issued at an amount in excess of the C23 IMIS requires the reference of original invoice no to ensure the amount will not exceed the IMIS Automated
of original invoice. original invoice. original invoice amount.
27 Credit Notes are issued only for the goods actually Issue of Credit Note √ √ √ Debtors R27 Duplicate credit notes are generated. C16 The depot team generate the credit note after the stock taking of goods returned which is then Depot in charge Automated /
returned approved by depot manager. Same is also pre approved by sales head. Manual
28 Credit notes granted valid and authorised (in case of Issue of Credit Note √ √ √ Debtors R28 Credit notes granted are invalid/ unauthorised (in case C24 - SOPs are defined which describe the process to be followed in case of sales return due to Depot in charge Manual - SOP
D&D) of D&D) D&D - Documents trail for D&D
- The sales return due to D&D is validated by Area Sales Manager after receipt of request
letter from customer which is further approved by Sales Head.
29 Cash/Bank receipts from Sales are recorded correctly Cash / Bank receipts √ √ √ √ Cash/ Bank R29 Cash/bank receipts have been recorded (when there are C25 - Entry for cash sale is initiated by responsible person appointed at counter which is further AR Team Manual
non-existent cash receipts), or have improperly been approved by AR Team on daliy basis.
recorded or have not been recorded/applied or are not - Senior Manager - F&A identify the source of bank receipt & forward it to the treasury dept.
accurately recorded - Treasury dept. will make the voucher.
- Voucher created by treasury will be checked by DGM - F&A
30 Invoices are issued and recorded only for the Recording of Sales √ Sales R30 Invoices are issued and recorded for shipments to non- C18 The customer masters are created, updated, modified or removed only after approval from the Depot in charge Automated
Shipments to valid customers customer offsite locations GM/RSM, Sales Head, CPC & Business head ensuring that the system generates invoices only
for pre existing customers codes and data
31 The sales and trade receivables are appropriately Recording of Sales √ Debtors R31 Sales and trade receivables are inappropriately C26 The sales and receivable transactions representation is guided by the accouting system in IMIS Automated
presented. presented. place. (Automated)
Also on monthly basis respective finance head reviews the sales and trade receivables data and
any mistakes are corrected on timely basis.
32 Bad debt assumptions are correctly calculated and Recording of Bad Debt √ √ Debtors R32 Bad debt assumptions are incorrect and / or inaccurately C27 Depot- Bad debt provision is reviewed by zonal head and depot incharge which is further Director Manual
recorded calculated and recorded approved by director.
Units- Bad debt provision is reviewed by unit head and AR head which is further approved by
director.
Provision estimation is based on provision matrix used by the company for calculating
expected credit losses.
33 Trade receivables are correctly written off. Recording of Bad Debt √ √ Debtors R33 Trade receivables are incorrectly written off. C28 Any trade receivable was written off only on director approval. Director Manual
Also trade receivables general ledgers are reconciled yearly with the customer third party
ledgers
34 Recoveries of trade receivables previously written off Recording of Bad Debt √ √ Debtors R34 Recoveries of trade receivables previously written off C29 Journal entries made to record trade receivables recoveries by AR team are reviewed and AR Head Manual
are properly recorded in the Statement of Profit and are improperly recorded in the Statement of Profit and approved by AR Head
Loss. Loss.
35 A/R sub-ledger is reconciled to the G/L Recording of Debtors √ √ √ Debtors R35 A/R sub-ledger is not reconciled to the G/L, which may C30 The current application package used for financial accounts IMIS is configured to ensure that IMIS Automated
lead to incorrect financial reporting. all A/R transactions are automatically taken as Debtors to Balance sheet.. Further, same is
reconcilied on monthly basis by AR head.
36 Timely confirmations are obtained from Customers Recording of Debtors √ Debtors R36 There is no system of obtaining balance confirmation C31 Confirmations are rolled out by the company at the year end to ensure correctness of the AR Team Manual
from all Customers balances present in the financial statements.
37 The Company has adopted safeguards for any loss Customer Contracts √ Debtors R37 The Company has not adopted safeguards for any loss C32 Company obtains comprehensive insurance for the primary and the secondary disptaches for Insurance officer Manual
which might arise on loss of material in transit which might arise on loss of material in transit the direct customers.
38 Sales Invoicing is done with compliance to statutory Sales Invoice Preparation & √ Debtors and Taxes R38 Sales Invoicing is done without compliance to statutory C33 This is automatically added in the IMIS after the generation of the sales order. IMIS Automated Documents trails of Sales All Samples - Noida Depot
requirements such as GST Validations requirements such as GST etc.
39 Overdue A/Rs are identified on a timely basis Recording of Debtors √ Debtors R39 Overdue A/Rs are not identified timely which may C34 Accounts department sends an outstanding report on a daily basis to the Sales AR Team Manual
become unrecoverable. department/SCM with a copy to HOD Finace and CPC to follow up with the customers whose
outstanding have exceeded the permissible credit limits.
40 Advances agreed with customers are in line with Recording of Debtors √ Debtors R40 Advances agreed with customers are not in line with C35 IMIS does not approve the invoice till the advance payment for the intended invoice is not IMIS Automated
Company policy /Contract Terms Company policy or advances are not collected as per accounted for in the customer's account.
contractual terms.
41 The ITC for Sales Returns are reversed correctly Sales √ √ √ √ Taxes ,Debtors R41 The taxes for Sales Returns are reversed wrongly or not C36 To ensure the correct reversal of ITC, accounts head at depot trace the relevant purchase Depot Manager Manual The process discuss with Depot manager is found to be
reversed and accounted in Books of Accounts . invoice receive from mfg unit through batch no mentioned on the performa invoice. satisfactorily.
RISK CONTROL MATRIX - PAYROLL & HR
S No Control Objective Process Sub-Process (1)
1 Well defined policies/ SOPs available in the system may result in the - -
various processes being followed in an effective manner.
2 Selection of competent/favourable employees HR On-Boarding
3 Formal documented process and evaluation parameters for HR On-Boarding

conducting interviews may result in correct assessment of the
candidate resulting in recruitment of undeserving candidates .
4 Verification of the educational and work experience certificates stated HR On-Boarding

in the candidate's resume with the original certificates resulting in
hiring of eligible candidates.
5 Correct Offer Letter(OL) generated HR On-Boarding
6 Payment for recruitments through consultants/referrals is made only HR On-Boarding

when employee joins the organisation.
7 Unique E-code generated for the employees HR On-Boarding
8 E-code generated when mandatory documents collected & updated in HR On-Boarding

employee master
9 Correct or true information provided by the new joinee HR Background

Verification
10 Employees with dubious backgrounds are not hired /allowed to work HR Background
with the company. Verification
11 Formal / written agreement with the recruitment agencies HR Vendor

Management
12 Induction Training for all new joiners to make them aware of HR Learning &
Company's policies and procedures. Development
13 Periodic training and development programmes for the employees to HR Learning &
ensure personal & professional development of the employees. Development
14 Relocation expenses/joining bonus/notice period buyouts processed HR Joining Bonus,

for new hires are accurate. Relocation
expenses and
Notice Period
Buyouts
15 Correct updation in employee database may result in correct Payroll Employee
processing of salary information
master updation
16 Authorised access to employee database Payroll Employee

information
master updation
17 1) Leave encashed as per the HR Policy. Payroll Payroll

2) Accurate leaves carried forward(for calculation of leave balance Processing
for encashment)
3) The leave encashment is paid to eligible employees.
4) Correct leaves recorded.
18 Correct payment of salary Payroll Payroll

Processing
19 Salary credited in the correct account Payroll Payroll

Processing
20 Correct and accurate entering of attendance & deductions details in Payroll Payroll
HRIS Processing
21 Statutory deductions computed accurately Payroll Payroll

Processing
22 1) Incentives are adequately included during salary processing Payroll Payroll
2) Incentives during salary processing are approved Processing
23 Salary disbursed to correct employee Payroll Payroll

Processing
24 Timely disbursement of salary to employees Payroll Payroll

Processing
25 Correct / timely in accounting of salary expense Payroll Payroll

Processing
26 Accurate F&F calculation and recovery of dues / assets from Payroll Exit Formalities
employee
27 Notice period waiver provided to resigned employee is properly HR Exit Formalities

authorised.
28 Notice pay recovery done in case of short notice. Payroll Exit Formalities
29 No leakage of valuable and confidential information by an Payroll Exit Formalities

involuntarily terminated employee
30 1) F&F amount disbursed with adequate approvals Payroll Exit Formalities

2) Accuracy in F&F amount disbursed vis-à-vis amount approved /
entered in ERP.
31 Terminated employees are removed from the HRIS. Payroll Exit Formalities
32 1) Correct accounting of gratuity / leave encashment. 2) Payroll Gratuity / Leave

The data sent to actuary is correct. Encashment
33 Staff welfare expenses are provided for in the annual budgets Payroll Staff Welfare
Expenses
34 Expenses incurred with prior approval from relevant authorities / as Payroll Staff Welfare
per approved budget Expenses
35 1) Expenses reimbursed as per the policy threshold / adequately Payroll Employee
approved Reimbursement
2) Expense reimbursements processed with adequate supporting Expenses
documents
36 Timely submission, settlement and accounting of reimbursement Payroll Employee

Reimbursement
Expenses
37 1) Fictitious / inflated expenses not being claimed Payroll Employee

2) Expenses incurred as per the approved / allowed threshold & Reimbursement
policy Expenses
38 Correct accounting of travel expenses reimbursed Payroll Employee

Reimbursement
Expenses
39 Appropriate and correct recoveries of Loans / advance are made from Payroll Granting of
the employees salaries. Loans &
Advances
40 Loans given in excess of eligibility / not adequately approved Payroll Granting of
Loans &
Advances
41 Adequate documentation leading to recover loans Payroll Granting of

Loans &
Advances
42 Timely recoveries of advances to employees Payroll Granting of
Loans &
Advances
43 Correct accounting of advances Payroll Granting of

Loans &
Advances
44 Terminated employees not appear in the database and salary register Payroll Exit Formalities
and information is not accessed by the terminated employee by
accessing their emails.
45 All employee are covered in the insurance policy Payroll Insurance
46 Salary not processed for absconding employee Payroll Payroll

Processing
47 The third-party actuary utilise the employee and other data provided Payroll Acturial
by the entity when performing the actuarial measurement. Calculation
48 In determining the employee benefit obligation: Payroll Employee

• The methodology used to calculate the employee benefit obligation Benefit
is appropriate under the circumstances. Expenses
• The underlying significant assumptions are appropriate.
Risk No. Risk Description Control No
R1 Absence of well defined policies/ SOPs may result in the various C1

processes not being followed in an effective manner.
R2 Selection of Incompetent/unfavourable employees C2
R3 Absence of a formal documented process and evaluation C3

parameters for conducting interviews may result in incorrect
assessment of the candidate resulting in recruitment of
undeserving candidates .
R4 Non-verification of the educational and work experience C4

certificates stated in the candidate's resume with the original
certificates resulting in hiring of ineligible candidates.
R5 Incorrect Offer Letter(OL) generated C5
R6 Payment for recruitments through consultants/referrals is made C6

when employee not joins the organisation.
R7 Duplicate E-code generated for the employees C7
R8 E-code generated without mandatory documents collected & C7

updated in employee master
R9 Incorrect or false information provided by the new joinee C8
R10 Employees with dubious backgrounds are hired /allowed to work C8

with the company.
R11 Absence of a formal / written agreement with the recruitment C9

agencies
R12 Absence of Induction Training for all new joiners to make them C10
aware of Company's policies and procedures.
R13 Absence of periodic training and development programmes for C11

the employees to ensure personal & professional development of
the employees.
R14 Inaccurate relocation expenses/joining bonus/notice period C12

buyouts processed for new hires
R15 Inaccurate updation in employee database may result in incorrect C13

processing of salary
R16 Unauthorised access to employee database C14
R17 1) Leave encashed in excess of eligibility as per the HR Policy. C15

2) Inaccurate leaves carried forward(for calculation of leave
balance for encashment)
3) The leave encashment is paid to ineligible
employees.
4) Incorrect leaves recorded.
R18 Possibility of excess payment made due to inaccurate salary & C16
disbursement computation
R19 Salary credited in the wrong account C17
R20 Risk of tampering or manual errors while entering attendance & C18
deductions details in HRIS
R21 Statutory deductions not computed accurately C19

R22 1) Incentives not adequately included during salary processing C20
2) Unapproved incentives during salary processing
R23 Salary disbursed to terminated employee / incorrect employee C21
R24 Delay in disbursement of salary to employees C22
R25 Incorrect / delay in accounting of salary expense C23
R26 Inaccurate F&F calculation and non-recovery of dues / assets C24

from employee
R27 Unauthorised notice period waiver provided to resigned employee C25
R28 Notice pay recovery not done in case of short notice. C25
R29 Leakage of valuable and confidential information by an C26

involuntarily terminated employee
R30 1) F&F amount disbursed without adequate approvals C27

2) Inaccuracy in F&F amount disbursed vis-à-vis amount
approved / entered in ERP.
R31 Terminated employees are not removed from the HRIS. C28
R32 1) Incorrect accounting of gratuity / leave encashment. C29

2) The data sent to actuary is incorrect.
R33 Staff welfare expenses not provided for in the annual budgets C30
R34 Expenses incurred without prior approval from relevant C31

authorities / in excess of approved budget
R35 1) Expenses reimbursed in excess of policy threshold / not C32
adequately approved
2) Expense reimbursements processed without adequate
supporting documents
R36 Delay in submission, settlement and accounting of reimbursement C33
R37 1) Fictitious / inflated expenses being claimed C32

2) Expenses incurred over approved / allowed threshold & policy
R38 Incorrect accounting of travel expenses reimbursed C34
R39 Appropriate and correct recoveries of Loans / Advances are not C35
made from the employees salaries.
R40 Loans given in excess of eligibility / not adequately approved C36
R41 Absence of adequate documentation leading to inability to C37

recover loans
R42 1) Non-recovery of unsettled / delayed advances C38

2) Absence of monitoring of advances leading to old outstanding
advances/loans remaining unsettled
R43 Incorrect accounting of advances C39

R44 Terminated employees still appear in the database and salary C40
register and information is accessed by the terminated employee
by accessing their emails.
R45 All employee not covered in the insurance policy C41
R46 Salary being processed for absconding employee C42
R47 The third-party actuary does not utilise the employee and other C43
data provided by the entity or inappropriately makes changes to
the employee and other data when performing the actuarial
measurement.
R48 In determining the employee benefit obligation: C44
• The methodology used to calculate the employee benefit
obligation is inappropriate under the circumstances.
• The underlying significant assumptions are inappropriate, lack
sufficient basis, or lack sufficient support.
Type 1
Type 2 (Preventive or
Control Description at DSL (Manual or
Detective)
Automated)
The Policies/SOPs are available with the respective personnel's concerned through Manual Preventive
intranet and are duly approved.
The candidates undergo a thorough and an exhaustive hiring process which Manual Preventive
includes various rounds of interviews with the HR, reporting manager and the
respective line managers who ensure that the candidate hired is competent.
For appointment at senior level final round of interview will be taken by
BH/AVP/Directors
The appointment is approved by the HOD and HR head for M2 and below level.
For level higher than M2, approval of cocerned director is also required.
The evaluation of prospective employee is done by a panel based on the functional Manual Preventive
and job requirements. If candidate clear the first round, HR will conduct interview
with HOD (Level 1) of the concerned dept.
Interview findings along with rating sheet of panel are documented by recruiter
under the signatures of interview panel for future references.
Self-attested copies of the certificates, experience certificates, salary slip are Manual Preventive
collected from the candidate. These are verified with the Originals by the
concerned recruiter (HR Personnel).
The offer letter is prepared by the concerned recruiter (HR Personnel) and is Manual Preventive
approved by the DGM - HR, before issue.
For above M2 level concern director approval is also required.
The resume of candidates are shared by recruitment agencies. The payment to Manual Preventive
recruitment agencies is made only when the prospective employee joins the
organisation. This is ensured by concerned recruiter and approved by DGM - HR.
Any payment to the recruitment agency will processed after the sanctions for the
same are approved as per the approval matrix.
The e-code generated is a unique employee code which is employee specific and Automated Preventive
cannot be linked to another employee. This e-code is generated by concerned
recruiter (HR personnal) in coordination with IT after uploading of employee
details in IMIS.
This e-code is generated by concerned recruiter (HR personnal) in coordination Manual Preventive
with IT after uploading of employee details in IMIS.
The e-code will not be generated till all details of employee master is filled by HR
dept. in IMIS
The Company does the back ground verification of the new joinees. Manual Preventive
For M2 and below level - Concerned recruiter and above M2 level either vigilance
team or external consultant initiates the background verification (BGV) process for
the new joiners.
The BGV report is also reviewed by HR Dept.
The Company does the back ground verification of the new joinees. Manual Preventive
For M2 and below level - Concerned recruiter and above M2 level either vigilance
team or external consultant initiates the background verification (BGV) process for
the new joiners.
The BGV report is also reviewed by HR Dept.
HR Head ensures that there is agreement with all the recruitement agencies. Manual Preventive
Formal induction training is organised for new employees to make them aware Manual Preventive
regarding the company's policies and procedures.
Learning & Development Team for M2 and below and recruitment team for M1 &
M0 is responsible for conducting the same.
The company has also Learning & Development Team. Company has an ongoing Manual Preventive
training programme for employees which includes both Technical and Non
Technical Training.
Training needs are identified for various jobs and functions. Employees are sent on
trainings as per their area of interest
The relocation expense, joining bonus, notice pay buyouts etc. are processed by Manual Preventive
concerned recruiter which is verified by DGM - HR and approved by HR head
only after getting approval from mgt. as per the approval matrix.
The employee database is updated in HRIS system at the time of joining of new Manual Preventive
employee. The concerned recruiter (HR Personnal) updates the employee database
which is reviewed and approved by their HOD.
The access rights to the employee database are restricted only to authorised Automated Preventive
personnel within the HR team. Each of them is provided with an ID and password.
- Leaves are recorded automatically. HRIS Module is interconnected with the LMS Automated Preventive
Module. After processing of salary, the leaves of the employees are updated in
Leave Form 14 & also shows in the salary slip. Every month leave detail report is
taken out from LMS & matched with the salary data. This is done by the payroll
processing team and reviewed by their HOD.
- The process of carried forward of leaves is automated. At the year end Form 14
is taken out & checked by payroll processing team which is reviewed by their
HOD.
- The calulation of leave encashment is automated which is reviewed by payroll
processing team and verified by their HOD.
Salary is automatically computed by HRIS system. Payroll processing team review Automated Preventive
the salary sheet and in case of any difference same is highlighted to JGM- Payroll
Team. The salary sheet is also shared with employee atleast 3-4 days before
disbursement for any possible correction if required.
Payroll team shares the salary details generated by HRIS software which also Manual Preventive
includes the employees accounts details (extracted automatically from employee
master). Treasury personnal upload the details on portal which is verified by
Manager - F&A for the accuracy of amount and account details.
The payment voucher prepared by treasury team is approved by DGM - F&A
Attendance report is automatically generated by software and in case same is not Automated Preventive
captured, Executive - Payroll Processing Team will manually enter the same.
Loan or advance deduction is fully automated in HRIS system and reviewed by
payroll processing team.
For on roll workers, there is biometric system for capturing of attendance.
TDS on salary is automatically calculated by HRIS software. The taxation team on Automated Preventive
test check basis manually calculate the amount of TDS to ensure its correctness
and also validate on monthly basis the formula used in software for its accuracy.
The report generated by software is checked by Senior Manager - Taxation which
is further reviewed and approved by AGM - Taxation and their HOD.
Other statutory deductions is also calculated automatically by HRIS and in case of
any amendment in law same is updated by Payroll team.
- No incentive is given to any employee except production incentive of Rs 2200/- Manual Preventive
to workers of production dept. is given which is approved by directors.
- Incentive is given only after the same is recommended by HOD & approved by
Director.
- On termination / resignation of employee, the date of last working day is entered Manual Preventive
in HRIS by Executive - Payroll Processing Team and the ID gets automatically
blocked on the last working day.
- Each employee has a unique Employee ID and hence the salary is disbursed to
the correct employee.
The salary is processed on 26th or 27th of each month for all employees and the Manual Preventive
disbursement is made on the last day of each month. The same is also monitored
by payroll team to ensure timely disbursement.
Monthly books are required to be closed by 7th of every month, hence DGM - Manual Preventive
F&A ensures the timely accounting of salary expenses.
Entry entry posted by finance team is reviewed and approved by Manager - F&A
- A "No Dues Clearance Form" is signed by the Employee post the approval of all Manual Preventive
the departments like F&A, IT, Admin etc.
- DGM- IT Infrastructure approve the "No Dues Clearance Form" which is
reviewed by IT Head to ensure assets allocated have been returned.
- F&F calculation is prepared by payroll team & reviewed and validated by JGM-
Payroll Team and Finance Department whether the same has been calculated as
per the terms of employment.
- Employee is handed F&F only if there are no dues pending (as confirmed by
"No Dues Clearance Form"). In case of any dues pending, employee to pay it by
submitting cheque to the Accounts team.
The notice period waiver, if any, is approved by the HR Head after the approval of Manual Preventive
Mgt. as per the approval matrix.
The Notice Pay recovery is done for short notice i.e. short notice recovery is done Manual Preventive
or notice period waiver, if any, is approved by the HR Head after the approval of
Mgt. as per the approval matrix.
As per practice, in case the employee is asked to leave immediately, their laptop Manual Preventive
and other assets are confiscated immediately and also their access rights to
company resources are terminated immediately.
Also IT had put restrictions in laptop i.e., employee will not be able to download
any data in laptop also pendrive access is restricted.
- F&F settlement will be done after sign off of "No Dues Clearance Form" by all Manual Preventive
the dept..
- F&F calculation is reviewed and validated by Payroll processing team and
Finance Department whether the same has been calculated as per the terms of
employment.
- The accounting entry for F&F posted by Finance team is reviewed and approved
by Manager - F&A and the payment voucher is approved by DGM - F&A after
verifying all the relevant supporitngs.
On termination / resignation of employee, the date of last working day is entered in Automated Preventive
HRIS by Executive - Payroll Processing Team and the Employee ID gets
automatically blocked on the last working day.
- The data send to actuary will be processed by HRIS system and reviewed by Automated Preventive
respective units which is further validated by Payroll Team and F&A. Manual
- The unit wise allocation related calculation done by Balance Sheet team is
reviewed and approved by their HOD.
- The accounting entry for gratuity / leave encashment posted by Finance team is
reviewed and approved by Manager - F&A.
Annual budget related to staff welfare expenses is also prepared and approved by Manual Preventive
Directors at the beginning of the year.
For non-budgeted or non-sanctioned expenses prior approval of director is
required.
Director approval is required if any expense is committed in excess of the amount Manual Preventive
approved in the Annual Budget.
- IMIS will automatically restrict the posting of expenses reimbursed in excess of Automaed Preventive
policy threshold.
- Finance team scrutinize the claim documents and related supportings and ensure
expenses claimed are in adherence to the thresholds defined in the policy.
- All reimbursements are approved by the respective employees Reporting
Manager / HOD. The voucher prepared by Finance team is reviewed and approved
by DGM - F&A
As per practice, there is a defined calendar for claiming the reimbursement and all Manual Preventive
claims are settled within the defined cycle. Reimbursements are required to be
claimed upto 5th of next month. Finance to process the reimbursements within 3
days of submission of the claims.
Also monthly books is required to be closed on 7th of every month, hence DGM -
F&A ensures the timely accounting of salary expenses.
However, at yearend employee not claim the reimbursement upto 5th of next
month same is reimbursed with the of director and also taxable in the hands of
employee.
- IMIS will automatically restrict the posting of expenses reimbursed in excess of Automaed Preventive
policy threshold.
- Finance team scrutinize the claim documents and related supportings and ensure
expenses claimed are in adherence to the thresholds defined in the policy.
- All reimbursements are approved by the respective employees Reporting
Manager / HOD. The voucher prepared by Finance team is reviewed and approved
by DGM - F&A
- Finance Manager verifies bills and claim forms and approves pay outs. Manual Preventive
- Payment voucher generated by finance team is reviewed and approved by DGM -
F&A
HRIS automatically calculates the installments amount as per the EMI plan. The Automated Preventive
Interest and the instalments are calculated and deducted automatically and are
reviewed by Payroll Team.
As per policy, company is not giving any loans to employee except workers. Manual Preventive
Employee related loans are outsourced.
There is a policy that defines the EMI plans. Unit HR checks the eligibility and the
loans require approval of reporting manager and Unit Head and in case deviation
from policy director approval is also required.
Prior to providing any new loans, Finance reviews the employees account in ERP
to ensure previous similar loan has been setteled
Workers to acknowledge receipt of loans by signing the form which is verified by Manual Preventive
Unit HR.
- The company has policy of giving 70% of salary as advance and same was Automated Preventive
deducted from the employee salary automatically in the next month by HRIS
system.
- All the deduction made by HRIS is reviewed by Payroll Processing Team.
The entry posting done by finance team is reviewed and approved by DGM - F&A Manual Preventive
- On termination / resignation of employee, the date of last working day is entered Automated Preventive
in HRIS and the ID and all the access rights to that employee gets automatically
blocked on the last working day.
- The email id of the employee is deactivated by DGM - IT Infrastructure at the
time of signing "No Dues Clearance Form" which is reviewed by IT Head.
The employee who are not covered in ESIC are coverd in mediclaim insurance Manual Preventive
policy. Executive payroll processing team ensures the same
HRIS Module does not process the salary / automatically deduct the salary in case Automated Preventive
of absence of employee without intimation.
If employee is absconding for the whole month then atleast 3 letters will be sent to
employee to join back and in case of no reply appropriate action is taken by
Payroll Team.
Balance Sheet Team at HO review the final actuarial report and reconcile the key Manual Preventive
data listed in the report to the data relating to employees and others provided to the
actuary.
The calculation of the employee benefit obligation is performed by a qualified Manual Preventive
actuary. Any assumptions used in the calculation is reviewed and approved by
HOD - Balance Sheet Team
Control Activity
Owner
Intranet
HR - Head HR 5
HR - Head HR 5
HR - Head HR 5
HR - Head HR 5
HR - Head HR 5
HR - Head HR 2
HR - Head HR 2
HR - Head
HR - Head
HR - Head
HR - Head
HR - Head
HR - Head
HR Head HR 1
HR Head HR 1
Payroll Team HR 3
Payroll Team
Tresury Team
Payroll Team
Taxation Team
Payroll Team
Director
Payroll Team
Payroll Team
F&A
Payroll Team
HR - Head
HR - Head
IT
F&A
Payroll Team
Payroll Team HR 6
F&A
Director
Director
IMIS
F&A
IMIS
F&A
Payroll Team HR 4
Unit HR HR 4
Reporting
Manager
Unit head
Unit HR HR 4
Payroll Team
DGM - F&A
Payroll Team
IT
Payroll Team
HRIS Module
Payroll Team
Balance Sheet
Team
Balance Sheet
Team
RISK CONTROL MATRIX - P2P
S. No Control Objective Sub Process
1 The employees are aware of the standard purchase NA

process or are using a valid or authorized SOP, which
results in efficient purchase.
2 Access rights in IMIS are restricted. NA
3 The purchase transactions are approved by appropriate Procurement

authority.
4 Items which are required by the company are purchased Procurement
by the Purchase Dept.
5 GRN is done at the stores with PO reference. Procurement

6 All emergency purchases are approved and follow a Procurement
regularization process
7 Purchases are made from authorized vendors at Procurement

authorized terms.
8 Only authorized vendor codes are created by authorized Master Creation

persons.
9 Any Changes to vendor data like address, contact details Modification in vendor master
etc. are authorized.
10 Authorized/Correct Business Plan Business plan
11 Correct/Authorized estimates for requirement of PO Processing

material
12 Correct PO raised to vendor PO Processing
13 Authorized PO raised to vendor PO Processing
14 Authorized amendment/modification made in PO PO Processing
15 Material is received after making a PO. Receipt of Material
16 Actual quantity and invoiced quantity may be different Receipt of Material

and trade payable is credited with actual qty
17 Goods or services of poor quality or not meeting the Receipt of Material

business requirement are not accepted and paid for.
18 Quality testing is properly done by Inspection Receipt of Material

Team/User Dept.
19 Correct accounting entries are passed in accounts Recording of Accounts payable
payable ledger
20 Liability is booked after adjusting advance given to Recording of Accounts payable

vendors
21 Liability is created for materials/ services received Recording of Accounts payable
22 Inventory and trade payables are recorded at correct time Recording Inventory
23 Inventory and trade payables are recorded at the correct Recording Inventory
amount.
24 Inventory is received and recorded in the inventory Recording Inventory
system timely.
25 Inventory stated in the general ledger reconciles to the Recording Inventory
inventory records.
26 Item codes can be created for authorised products and by Maintenance of Item master
authorised person only
27 Inventory may be removed from inventory records and Recording removal of Inventory
recorded as a consumption only when it has actually
been consumed.
28 Inventory may be removed from inventory records when Recording removal of Inventory
it has actually been sold.
29 Inventory records does not include inventory that was Recording removal of Inventory
sold to customers
30 Inventory that was sold to customers are recorded in the Recording removal of Inventory
correct period.
31 Inventory has been sold that is removed from the Recording removal of Inventory
accounts at correct amounts.
32 Physical inventory counts are performed on a periodic Physical Inventory
basis, potentially resulting in accurate inventory records.
33 Counting of Inventory at the time of Physical Inspection Physical Verification

is accurate
34 Authorised personnal is allowed to do adjustments in Physical Verification

inventory in the system
35 Inventory records include inventory that is in a salable Inventory Valuation
condition.
36 Inventory may be recorded at the correct cost under the Inventory Valuation
entity’s costing method.
37 The adjustment for lower of cost or NRV is recorded in Inventory Valuation

the correct accounting period.
38 The adjustment for lower of cost or NRV stated in the Inventory Valuation
general ledger reconcile to the calculation and/or does
not contains mathematical errors.
39 Proper adjustment is recorded against inventory for Inventory Valuation

Obsolete, slow moving, or excess inventory
40 Proper adjustment is recorded against inventory for Inventory Valuation

Obsolete, slow moving, or excess inventory
41 The calculations for obsolete, slow-moving, or excess Inventory Valuation

inventory and related adjustments are based on accurate
inventory usage/movement data.
42 The adjustment for obsolete, slow moving, or excess Inventory Valuation
inventory is recorded at the correct amount, in the
correct general ledger account, or in the correct
accounting period
43 Inventory returned to suppliers is: Inventory Returns

removed from the inventory and trade payables records
Recorded at the correct amount
44 Inventory recorded as returned to vendors (removed Inventory Returns

from the inventory and trade payables records) is
actually returned.
45 Authorised / Correct payment made Invoice Payment and Payable
management
46 Payments are made to correct vendor, address, or bank Invoice Payment and Payable
account. management
47 Timely payment to vendors Invoice Payment and Payable

management
48 Payments made for actual PO's or items received Invoice Payment and Payable
management
49 The purchase return is booked at the rate of original Invoice Payment and Payable
purchase. management
50 The service purchase transaction is approved by Purchase of Services
appropriate authority
51 Purchase of service is booked which is availed by Purchase of Services
company
Completeness
Existence /
Occurrence
√
Accuracy
Cut Off
√
Obligations
Valuation
Presentation &
Disclosure
R9
R8
R7
R6
R5
R4
R3
R2
R1
Risk No
√ R10
√ R11
R12
R13
R14
√ √ R15
√ √ √ R16
√ R17
√ √ R18
√ √ √ R19
√ √ √ √ R20
√ √ √ √ R21
√ √ R22
√ √ R23
√ R24
R25
√ √ R26
√ √ R27
√ R28
√ √ R29
√ R30
√ √ √ R31
√ √ √ R32
R33
√ √ √ R34
√ R35
√ R36
√ R37
√ √ √ √ R38
√ √ R39
√ √ R40
√ R41
√ √ √ R42
√ √ √ R43
R44
√ √ R45
√ √ R46
√ R47
√ √ R48
√ √ √ R49
√ R50
√ R51
What may go wrong? / Risk Description Control No
The employees are not aware of the standard purchase C1

process or are not using a valid or authorized SOP, which
results in inefficient purchase.
Access rights in IMIS are not restricted. C2
The purchase transactions are not approved by appropriate C3

authority.
Items which are not required by the company are purchased C4
by the Purchase Dept.
GRN is done at the stores without PO reference. C5

Emergency purchases not approved C6
Purchases are made from unauthorized vendors at C7

unauthorized terms.
Unauthorized vendor codes are created by unauthorized C8

persons.
Changes to vendor data like address, contact details etc. are C9

unauthorized.
Unauthorized/Incorrect Business Plan C10
Incorrect/Unauthorized estimates for requirement of material C11
Incorrect PO raised to vendor C12
Unauthorized PO raised to vendor C12
Unauthorized amendment/modification made in PO C13
Material is not received after making a PO. C14
Actual quantity and invoiced quantity may be different and C15

trade payable is credited with invoiced qty
Goods or services of poor quality or not meeting the business C16

requirement are accepted and paid for.
Quality testing is not properly done by Inspection Team/User C17

Dept.
Erroneous accounting entries may be passed resulting in C18
wrong information on accounts payable.
Liability is booked without adjusting advance given to C19

vendors
Liability is not created for materials/ services received C18
Inventory and trade payables are recorded prior to receipt C20

and/or title transfer of the inventory.
Inventory and trade payables are recorded at the incorrect C21

amount.
Inventory is received and not recorded in the inventory C22
system.
Inventory stated in the general ledger does not reconcile to C23
the inventory records and/or the reconciliation contains
invalid items.
Unauthorized item codes are created by unauthorized C24

persons resulting in bogus purchase
Inventory may be removed from inventory records and C25
recorded as a consumption when it has not actually been
consumed.
Inventory may be removed from inventory records when it C26

has not actually been sold.
Inventory records include inventory that was sold to C26

customers
Inventory that was sold to customers are recorded in the C26

incorrect period.
Inventory has been sold that is removed from the accounts at C27
incorrect amounts.
Physical inventory counts are not performed on a periodic C28
basis, potentially resulting in inaccurate inventory records.
Physical inventory counts: C29

Count inventory that does not exist
Do not include counts of all inventory
Do not include consideration of movement of inventory
during the physical inventory
Unauthorized adjustments in inventory in the system C30
Inventory records include inventory that is not in a salable C31

condition.
Inventory may be recorded at the incorrect cost under the C32

entity’s costing method.
The adjustment for lower of cost or NRV is recorded in the C33

incorrect accounting period.
The adjustment for lower of cost or NRV stated in the C33

general ledger does not reconcile to the calculation and/or
contains mathematical errors.
Obsolete, slow moving, or excess inventory exists but no C34

adjustment is recorded against inventory and as a component
of cost of sales.
Obsolete, slow moving, or excess inventory does not exist C34

but an adjustment is recorded against inventory and as a
component of cost of sales.
The calculations for obsolete, slow-moving, or excess C35

inventory and related adjustments are based on inaccurate
inventory usage/movement data.
The adjustment for obsolete, slow moving, or excess C36
inventory is recorded at the incorrect amount, in the incorrect
general ledger account, or in the incorrect accounting period
Inventory returned to suppliers is: C37

Not removed from the inventory and trade payables records
Recorded at the incorrect amount
Inventory recorded as returned to vendors (removed from the C38

inventory and trade payables records) is not actually
returned.
Unauthorized/ Incorrect payment made C39
Payments are made to an incorrect vendor, address, or bank C39

account.
Delayed payment to vendors resulting in possibility of levy C40

of interest.
Payments made for fake PO's, items not received or returned C41
The purchase return is not booked at the rate of original C42

purchase.
The service purchase transaction is not approved by C43
appropriate authority
Purchase of service is booked which is not availed by C44
company
Control Description at DSL
The Company is having a documented manual with authorized & detailed Standard
Operating Procedures which defines the procurement prcess to be followed across units
within the organisation.
The relevant document is accessible to concerned employee through intranet.
The access rights in IMIS are defined at various levels. (eg., Store Incharge can only view
PO and cannot modify it, also store incharge cannot view payables ledger)
IT team will provide the access right to any user only with the approval of their HOD.
The transaction undertaken by purchase department are approved by an authorisation

matrix which is also inbuilt in IMIS.
For other than pan masala RM - Purchase Department, as such, is not purchasing any item
on its own (except RM). User department (based on the planning of CPC), first raises an
requisition in IMIS, which is duly authorized by departmental head or some senior official
in the department. With reference to requisition, purchase department raises an indent
which is again approved by Departmental head and then a PO is raised. The authorization
to approve POs is with BH/AVP/some other authorized person.
For RM (Pan Masala Division) - BH keeps on placing the order based on market
condition, stock in hand and expected production. In this exercise, Director Finance is
always involved in the planning.
NO GRN is prepared without PO reference in IMIS. (Automated).

Invoice booking not possible in IMIS unless approved by management as per DOA. Both
routine and emergency purchases are always supported by a PO with the approval of
Business Head/AVP/some other authorized person.
SOPs are defined and posted on intranet which defines the procedure to be followed for
selection of vendors.
Purchase Department is making extensive search for vendors and all reasonable efforts are
made to invite proper quotation from more than one vendors. The order is then placed to
vendor approved by Business Head /Authorized person (based ondelegation of authority
matrix)
However, in case of emergency purchase one quotation will also be considered only with
the proper justification and approval of Business Head
IT team send a link to vendor on the recommendation of procurement team/respective

business head and vendor is required to fill and attach the required details (KYC &
others). Vendor code is created automatically by system after taxation team approves the
KYC details (like PAN, GSTN).
Any changes to vendor data will done by IT team only with the approval of business
head / procurement dept.
Business plan is made after analysing past sales trend, market size and expected growth
rate of management which is prepared by CPC dept. in coordination with Sales Team and
verified by marketing dept., business head and third party consultant.
The finalized busniess plan is approved by directors.
Requirement of material is automatically generated as per BOM defined in IMIS when

production plan estimated by CPC are entered in IMIS by production team.
The procurement team generate the PO and business head verify & approve (as per the
matrix defined in IMIS) the PO on the basis of quotation received from the vendor.
The procurement team generate the PO and business head verify & approve (as per the
matrix defined in IMIS) the PO on the basis of quotation received from the vendor.
Any modification in PO in IMIS will require approval of business head.
If material is not received against a PO or only a part quantity has been received, the IMIS
system auto close the PO after 5 days from the expiry of PO delivery terms. Purchase
department also reviews and takes follow up for all open POs and if required, all such
open POs are closed on timely basis with the approval of respective business head.
After the materials are received at the security gate and entries made in material inwards
register, security endorses the documents and presents the same for further processing.
Stores verifies all the supporting documents such as PO, vendor invoice and transit papers
and prepares Goods receipt note (GRN) on the basis of PO & Actual quantity received.
In case of short qty. GRN will be prepared with actual qty & trade payable will be booked
with invoiced qty and a debit note is auto generated by IMIS for short qty.
Material of poor quality are not accepted or paid for as the same are checked in a prima
facie manner by security and stores department and also user dept. do the quality
inspection. The GRN is processed only if the material passes the quality test. If there is
any concealed defect which is traced afterwards by User Dept., material is rejected and a
debit note is given to the party.
For betel nut, QC testing is done automatically by machines. For other material inspection
done by QC team is approved by their HOD.
The process of creation of GRN ia aligned with purchase order and this creates a credit in
a parking account named as "Liabilities Account" and at the same time invetorizing the
material to the approprite head. F&A Department books SPV against GRN reference and
the invoice amount is automatically credited to vendor account and immediately
"Liabilities Account" is debited, thus minimizing the possibility of errors.
The advance voucher will require reference of PO and liability will automatically knocked
off by IMIS at the time of bill booking.
The process of creation of GRN ia aligned with purchase order and this creates a credit in
a parking account named as "Liabilities Account" and at the same time invetorizing the
material to the approprite head. F&A Department books SPV against GRN reference and
the invoice amount is automatically credited to vendor accountand immediately
"Liabilities Account" is debited, thus minimizing the possibility of errors. This liability
account is reconciled monthly and Nil balance in the account indicates that all the
transactions are properly recorded.
Inventory are recorded in IMIS only after the preparation & approval of GRN
However, the posting of trade payable will done by F&A team only after the receipt of
invoice & other supporting.
Amount is automatically recorded as per the rate defined in PO (Automated)
Inventory is automatically recorded in the inventory system on approval of GRN
F&A reconcile the inventory records of RM based on the excel working which is again
cross checked with the excel sheet prepared by CPC team and approved by CPC Head on
monthly basis and any reconciling items are reviewed and addressed on timely basis.
For other types of inventory F&A reconcile at the year end any reconciling items are
reviewed and addressed
Item codes are created by IT team on the basis of information received on pre-specified
excel template from stores / procurement dept.
Inventory issued to units as per requisition created by user dept. with the approval of Unit
Head is parked automatically under WIP.
Consumption is recorded automatically in IMIS according to BOM defined in the system
when Prduction Dept. team entered the quantitative details of finished goods produced
which is approved by production head.
Also physical inventory is counted on monthly basis and discrepencies are investigated
and corrected on timely basis.
IMIS ensures inventory to be removed from inventory records immediately after making
of sales invoice through voucher type I1. (Automated)
Invoices will be prepared by dispatch team at unit/depot only after loading of inventory on
vehicle.
Physical inventory is counted on monthly basis and discrepencies are investigated and
corrected on timely basis.
of sales invoice through voucher type I1. (Automated)
Invoices will be prepared by dispatch team at unit/depot only after loading of inventory on
vehicle.
Physical inventory is counted on monthly basis and discrepencies are investigated and
corrected on timely basis.
of sales invoice through voucher type I1. (Automated).
At year end, F&A personnal ensures that the material is delivered to customer for all
invoices raised before close of the period.
No manual punching of rate is allowed in IMIS. Price master is updated by IT with the
approval of CPC head & Director.
Physical counting is done at every month by store incharge and yearly by F&A and any
discrepancies are investigated on timely manner. In case of any difference, the same will
adjusted in inventory records only with the approval of directors.
Physical inventory is counted yearly, and discrepancies are investigated and corrected
within the inventory records with the approval of director. At year end PV is done in the
presence of F&A / internal auditors / statutory auditors removing any possibilty of
inaccurate counts / not considering movement of inventory during the physical inventory.
Any adjustment in inventory will require prior approval of director and BH
Physical inventory is counted monthly by store incharge & yearly by F & A. Inventory
records based on physical inventory are reconcilied to general ledger and any inventory
that is not in salable condition are adjusted within the inventory records only with the
approval of directors.
Inventory costing done by CPC (for RM), accounts team (for PM) & Depot head (for FG)
and is reviewed by Finance head to check for its accuracy and methodology
Finance head reviews and approves the cost v/s NRV evaluation prepared by depot
incharge and the resulting journal entry.
For Dairy division cost v/s NRV evaluation prepared by AGM - F&A is reviewed and
approved by AVP - F&A.
Finance head reviews and approves the cost v/s NRV evaluation prepared by depot
incharge and the resulting journal entry.
For Dairy division cost v/s NRV evaluation prepared by AGM - F&A is reviewed and
approved by AVP - F&A
records based on physical inventory are reconcilied to general ledger and any obsolete,
slow moving or excess inventory found at the time of PV will be adjusted in inventory
records after the approval of Directors.
Also monthly ageing process provides the details of obsolete or slow moving inventory.
The related adjustment entry after the approval of director is recorded by respective unit
which is further reviewed by unit incharge.
records based on physical inventory are reconcilied to general ledger and any obsolete,
slow moving or excess inventory found at the time of PV will be adjusted in inventory
records after the approval of Directors.
Also monthly ageing process provides the details of obsolete or slow moving inventory.
The related adjustment entry after the approval of director is recorded by respective unit
which is further reviewed by unit incharge.
Calculation for obsolete, slow moving or excess inventory are based on PV report and
monthly ageing report and any related adjustment are made in books only with the
approval of Directors.
Any adjustment entry for obsolete, slow moving or excess inventory prepared by finance
team will reviewed by finance head after approval of director.
IMIS system automatically records entries to reduce inventory and trade payables after
generation of either debit note or tax invoice.
Debit note raised by F&A team is reviewed and approved by F&A Head.
Also in case GRN qty is not approved then the inventory is not recorded but transferred to
rejection store and store incharge forward the documents to F&A for raising debit note
which is then approved by F&A Head.
The store incharge ensure that rejected inventory is returned to vendor through delivery
challan.
- Payments are released to vendor by F&A, as per terms of PO and after proper scrutiny of
supporting documents as furnished by Procurement Department which gets approved by
finance head
- The payment voucher is created by AP team and are reviewed by DGM - F&A
- Bank statements are reconciled to general ledger regularly and differences are
investigated and resolved on a timely basis by treasury dept.
- Payments are released to vendor by F&A, as per terms of PO and after proper scrutiny of
supporting documents as furnished by Procurement Department which gets approved by
finance head
Payments are released as per terms of PO, local acts and ageing reports are generated in
the system, thus facilitating release of payment in time.
- There is no such possibility as all POs are recorded in system and are duly authorized.
There is nothing like manual PO.
- Also Payments are released to vendor by F&A after proper scrutiny of supporting
documents which gets approved by DGM - F&A
For booking of purchase return, IMIS requires reference of PO which ensures the
correctness of rate.
Purchase of service is done on the basis of requirements of user dept. are approved as per
the authorisation matrix which is also inbuilt in IMIS
Service related invoice will not be booked in IMIS unless the relevant work order and
service receipt note (SRN) is not available in the system.
Work order and SRN is prepared by respective user dept. which is approved by their
HOD.
Type of Control
Frequency Control Owner
(Automated/Manual)
Manual NA Directors
Automated NA IMIS
Manual As and when Business Head / AVP
Automated As and when IMIS

Automated As and when Business Head
Manual As and when Respective Business

Head
Manual As and when Respective Business

Head
Manual As and when CPC / Business Head /
Sales Team /
Marketing Team /
Directors
Automated As and when Respective Business

Head

Head

Head
Automated/Manual As and when Purchase Dept.
Manual As and when User Dept.
Manual As and when Inspection Team

Automated
Manual As and when F&A

P2P 1
Manual As and when F&A
Manual As and when Store Incharge

F&A
Manual Monthly/Yearly F&A / CPC
Manual As and when IT Team

Manual Monthly Store Incharge
Manual Yearly F&A
Manual As and when Business Head /

Directors
Manual Yearly Store Incharge/
Directors
Manual Monthly (RM) F & A head

Yearly (Others)
Manual Monthly F & A head
Manual Monthly F & A head
Manual Yearly Directors

Manual Yearly F & A Head /
Directors
Manual As and when F&A Head
Manual As and when Store Incharge
Manual As and when F & A Head
Manual As and when F & A Head
Manual As and when AP Team
Manual As and when DGM - F&A

Dharampal Satyapal Ltd.
RISK CONTROL MATRIX - Other Expenses
Presentation &
Completeness
Occurrence
Obligations
Existence /
Disclosure
Valuation
Accuracy
Cut Off
S. No. Control Objective Sub Process
1 Expenses are done as per approved Budget Recording Expenses a
2 Expenses beyond budget are monitored, Monitoring of unbudgeted

analysed and controlled expenses
3 The entity uses appropriate methodology Preparation of Budget a

while planning budget
4 Expenses are recorded only when they occur Recording Expenses a a a
5 Expenses are recorded in the Correct Recording Expenses a

Accounting period (cut off dates)
6 Expenses are recorded in the correct general Recording Expenses a
ledger account.
7 Expenses related to goods received or Recording Expenses a

services received are recorded in Trade
payables
Risk No. What may go wrong? / Risk Description Control No.
R1 Expenses are not done as per approved Budget C1
R2 Expenses beyond budget are not monitored, analysed and C2

controlled
R3 The entity uses incorrect methodology while planning C3

budget
R4 Expenses are: C4
i) Recorded for transactions that did not occur
ii)Not recorded for transactions that did occur
iii) Recorded at incorrect amounts.
R5 Expenses are recorded in the incorrect accounting period. C4

R6 Expenses are recorded in the incorrect general ledger C5
account.
R7 Amounts recorded to trade payables and other expenses do C4

not relate to goods or services received.
Control Activity
Control Description at DSP
Owner
In the beginning of F.Y. the entity prepares a budget for every user deprtment DGM-F&A
which is reviewed and approved by Director.There are also in built checks in
IMIS which prevents from any unbudegeted expenses to be recorded in books
unless approved by Director.
Unbudgeted expenses can only be recorded with Director's approval.They Director

keep a check on expenses incurred beyond budget and inquires the user
department about such inconsistencies.It is recorded only after the user
department provides satisfactory explanation (except in certain cases).
There are following ways Finance team uses in preparation of annual budget:- Director
1) Analyse the nature of spending to be incurred in current financial year
2) Taking previous year amounts as base
3) A presentation of financial budget is made & discussed with Directors, who
after reviewing the same approves the budget.
In case of goods received, the entry is recorded through SPV voucher after DGM-F&A
receiving GRN by Finance personnel.
In case of services, the entry is recorded after reviewing supportings such as
SRN, Sanction memo & Invoice.
The journal entry for recording expenses is prepared by Finance personnel
which is checked by another person of the Finance team.The cross verification
process ensures that the expesnses are recorded accurately.
receiving GRN by Finance personnel.
The journal entry for recording expenses is prepared by Finance personnel
which is checked by another person of the Finance team.The cross verification
process ensures that the expesnses are recorded accurately.
The expenses ledger in IMIS is selected manaually so far.With respect to DGM-F&A
recording of expenses, there exists a two layer system of booking i.e. maker &
checker.The journal entry for recording expenses is prepared by Finance
personnel which is checked by another person of the Finance team.The cross
verification process ensures that the expenses are recorded in correct ledger
account.
Special attention is paid by the team while recording AP vouchers. DGM-
F&A also checks the AP vouchers periodically to ensure accuracy.
receiving GRN, Invoice by Finance personnel.
In other cases (e.g.-land procurement) Management approval is obtained,
journal entry is prepared by F&A team and approved by DGM-F&A.
(Preventive/ (Manual/ Substantive Procedure Planned
Preventive Manual/Automated
Preventive Automated
Preventive Manual
Preventive Manual
Preventive Manual
Preventive Manual
Preventive Manual
The budget presentation copy
is not shared with us
Document trail of Goods received & services

to be obtained
RISK CONTROL MATRIX - Taxation
S No Control Objective Process Sub-Process (1) Risk No.
1 Correct/ adequate computation of advance tax liability Direct Advance Income Tax R1
Taxation
2 Calculate and Record Provision for income taxes or Direct Advance Income Tax R2
Advance Taxes. Taxation
3 Correct compuataion of tax liability Direct Income Tax R3

Taxation
4 Correct accounting of provision for tax Direct Computation and R4

Taxation accounting of
provision for tax
5 Calculation of income tax Direct Advance Income Tax R5

expense/deductions/exemptions include all jurisdictions. Taxation
6 Calculate and Record Provision for income taxes or Direct Advance Income Tax R6
Advance Taxes. Taxation
7 The amendments to recent income tax code is correctly Direct Advance Income Tax R7
reflected in determination of tax expense Taxation
8 Correct payment of advance tax/self assessment tax to Direct Payment processing R8

avoid late payment charges Taxation
9 Timely payment of tax liability Direct Deposition of tax R9
(quarterly advance tax and final self assessment tax, if Taxation liability
any)
10 Correct classification of temporary differences Direct Deferred Tax Asset R10

Taxation and Liability
11 Calculate and record deferred income tax asset and Direct Deferred Tax Asset R11
liability Taxation and Liability
14 Correct assessment of reasonable/virtual certainty that Direct Deferred Tax Asset R14
certain future taxable income will be available against Taxation and Liability
which the deferred tax assets can be realised.
15 Correct TDS rate considered for a particular section. Direct TDS payment R15
Taxation
16 TDS on Salary correctly calculated Direct TDS payment & R16

Taxation Return filling - Salary
17 Investment proofs produced by employee is valid Direct TDS payment & R17
Taxation Return filling - Salary
18 Timely filing of statutory returns Direct Return filling R18

Taxation
19 Correct filing of statutory returns (such as Annual returns/ Direct Return filling R19
TDS returns) Taxation
20 Authorized lower deduction of TDS Direct Accounting of tax R20

Taxation liability
21 Issuance of TDS Certificate Direct TDS Certificate R21

Taxation
22 Correct details submitted to the IT department in reply to Direct Assessment R22

the notices. Taxation Proceedings/ Appeals
23 Timely filing reply to the notices Direct Assessment R23

Taxation Proceedings/ Appeals
24 Correct/ adequate computation of GST liability Indirect Computation of Tax R24

Taxation liability
25 Correct calculation of GST liability due to RCM Indirect Computation of Tax R25
Taxation liability
26 ITC blocked by virtue of section 17(5) is not availed by Indirect Computation of Tax R26
company Taxation liability
27 Correct reversal of ITC where goods or services or both Indirect Reversal of ITC R27
are used partly for taxable supplies or exempt supplies Taxation
28 Annual adjustments / calculation of ITC reversal due to Indirect Reversal of ITC R28
taxable & exempt supplies and to reverse / reclaim the Taxation
ITC based on Annual calculations.
29 Correct reversal of ITC for the goods or services or both Indirect Reversal of ITC R29
received when company has accepted D&D (Damage & Taxation
Destruction)
30 Adequate compuation of GST liability in case of supply Indirect Computation of Tax R30
of goods or services or both between distinct persons as Taxation liability
specified in sec 25(4) & (5) or where the supplier and
recipient are related party.
31 Correct reversal of ITC along with interest in case of non- Indirect Reversal of ITC R31
payment of consideration to vendor within the period of Taxation
180 days from the date of issue of tax invoice
32 ITC reclaimed after payment made to vendors, in cases Indirect Reclaiming of ITC R32
where ITC is earlier reversed due to non-payment of Taxation
consideration to vendor within the period of 180 days
33 Correct compuatation of provisional credit for the Indirect Provisional Credit R33
invoices or debit notes, the details of which is not Taxation
reflected in GSTR 2A
34 Timely payment of GST liability, if any Indirect GST Computation & R34
Taxation payment
35 Timely filing of GST returns Indirect Filing of Returns R35

Taxation
36 Correct details filled in GST returns Indirect Filing of Returns R36
Taxation
37 Cross checking of details filed in GSTR 1 & GSTR 3B on Indirect - R37

monthly basis so that there will be control over mis-match Taxation
in returns
38 Correct details submitted to the IT department in reply to Indirect Assessment R38
the notices. Taxation Proceedings/ Appeals
39 Records of replies to information / interaction with Direct Information/ inquiry R39

statutory authorities maintained Taxation/Indire
ct taxation
40 Adequate controls over tracking of information / inquiry Direct Information/ inquiry R40
called for by the regulatory authorities Taxation &
Indirect
Taxation
41 Correct tax charged Indirect Computation of Tax R41
Taxation liability
42 Correct ITC claimed Indirect Computation of Tax R42
Taxation liability
43 Correct classification of Inputs / Input Services / Capital Indirect Classification R43

Goods in ITC register. Taxation
44 Periodic reconciliation of ITC ledgers in books with Indirect Reconciliation R44

Electronic Credit ledgers on GST Portal. Taxation
45 Periodic reconciliation of Invoices with E-way bills Indirect Reconciliation R45

wherever required, Taxation
46 Check whether GST liability discharge or not on sale of Indirect Computation of Tax R46
Fixed Assets / permanent transfer of assets on which ITC Taxation liability
is claimed
47 Periodic check over HSN / SAC classification, so that Indirect HSN/SAC R47
correct HSN / SAC are used while raising Invoices / Taxation classification
paying taxes.
Risk Description Type of Risk Control No
Incorrect/ inadequate computation of advance tax liability Financial C1
Estimated Advance income tax payments made are: Financial C2

- Not recorded
- Recorded at incorrect amounts
Income tax/deduction/exemption is incorrectly calculated due to: Financial C3

- Exclusion of valid tax deductions or exemptions or under-
recorded tax deductions or exemptions
- Inclusion of invalid tax deductions or exemptions or over-
recorded deductions or exemptions.
There are errors in accounting of provision for tax. Operational C4
Calculation of income tax expense/deductions/exemptions does Financial C5

not include all jurisdictions.
Tax adjustments, penalties, or interest resulting from income tax Financial C2

assessment orders/appellate orders are:
- Not recorded
- Inaccurately recorded.
The amendments to recent income tax code is not reflected in Financial C6

determination of tax expense
There are errors in the amount of taxes paid resulting in over or Operational C7
under payment of taxes due to incorrect preparation of challan.
Late payment of tax liability Financial C8
(quarterly advance tax and final self assessment tax, if any)
Taxable temporary differences are classified as deductible and Financial C9

vice-versa.
Transaction with a deferred tax impact not considered while Financial C9

calculating deferred tax balances
Tax Rate applied is incorrect Financial C10
Tax journal entries are posted at incorrect amounts to the general Financial C11
ledger.
Incorrect assessment of reasonable/virtual certainty that certain Financial C12

future taxable income will be available against which the
deferred tax assets can be realised.
1) Wrong TDS rate considered for a particular section. Financial C13

2) Wrong tagging for company and Other than company which
may lead to incorrect rate taken under section 194C
TDS on Salary wrongly calculated Financial C14

Investment proofs produced by employee is invalid Operational C15
Non/ Delayed filing of statutory returns (such as Annual returns/ Operational C16
TDS returns)
Incorrect filing of statutory returns (such as Annual returns/ Operational C17

TDS/TCS returns)
Unauthorized lower deduction of TDS Financial C18
Non Issuance / Delayed Issuance of TDS Certificate would result Operational C19
in non compliance with provisions of Income tax act
Incorrect details submitted to the IT department in reply to the Operational C20

notices.
Delay in filing reply to the notices Operational C21
Incorrect/ inadequate computation of GST liability Financial C22
Incorrect calculation of GST liability due to RCM Financial C23
ITC blocked by virtue of section 17(5) is availed by company Financial C24

ITC not reversed or incorrectly reversed where goods or services Financial C25
or both are used partly for taxable supplies or exempt supplies
Annual adjustments / calculation of ITC reversal due to taxable Financial C26

& exempt supplies and to reverse / reclaim the ITC based on
Annual calculations is not correct.
ITC not reversed or incorrectly reversed for the goods or services Financial C27
or both received when company has accepted D&D (Damage &
Destruction)
Inadequate compuation of GST liability in case of supply of Financial C28

goods or services or both between distinct persons as specified in
sec 25(4) & (5) or where the supplier and recipient are related
party.
ITC not reversed or incorrectly reversed in case of non-payment Financial C29

of consideration to vendor within the period of 180 days from the
date of issue of tax invoice
ITC not reclaimed after payment made to vendors, in cases Financial C30
where ITC is earlier reversed due to non-payment of
consideration to vendor within the period of 180 days
Incorrect compuatation of provisional credit for the invoices or Financial C31

debit notes, the details of which is not reflected in GSTR 2A
Delay in making the payment of GST liability, if any Operational C16
Delay in filing of GST returns Operational C16

Incorrect details filled in GST returns Operational C32
No process exist for cross checking of details filed in GSTR 1 & Operational C33
GSTR 3B on monthly basis so that there will be control over
mis-match in returns
Incorrect details submitted to the GST department in reply to the Operational C34
notices.
Records of replies to information / interaction with statutory Operational C35

authorities not maintained
Inadequate controls over tracking of information / inquiry called Operational C36

for by the regulatory authorities
Incorrect tax charged – Instead of CGST + SGST, IGST is Operational C37

charged or Vice Versa
Incorrect ITC claimed – Instead of CGST + SGST, IGST is Operational C38
claimed or Vice Versa
Incorrect classification of Inputs / Input Services / Capital Goods Operational C39

in ITC register, this will impact ITC claim & Refund calculations
NO periodic reconciliation of ITC ledgers in books with Operational C40

Electronic Credit ledgers on GST Portal.
No periodic reconciliation of Invoices with E-way bills wherever Operational C41

required,
Inaccurate GST liability discharge on sale of Fixed Assets / Financial C42

permanent transfer of assets on which ITC is claimed
NO periodic check over HSN / SAC classification, so that correct Operational C43
HSN / SAC are used while raising Invoices / paying taxes.
Type 1 (Manual or Type 2 (Preventive or
Control Description at DSL
Automated) Detective)
The calculations made by taxation team are checked and reviewed Manual Preventive
by their HOD to ensure correctness.
Also HOD - Taxation compare it with historical and budgeted
data and analysing it to ensure its accuracy.
- Bank statements are reconciled to general ledger regularly and Manual Preventive
differences are investigated and resolved on a timely basis.
- The journal entry for recording the transaction is punched by
Senoir Manager- Taxation and approved by DGM - F&A
The computation prepared by taxation team will reviewed by Manual Preventive

AGM - Taxation and HOD - Taxation.
The computation is also validated by their tax consultant.
Accounting entries with respect to provision for taxation is passed Manual Preventive
by balance sheet team which is reviewed by their HOD.
The GL balances is also cross-checked with excel working
prepared by balance sheet team and reviewed and validated by
their HOD.
The tax department obtains Trial Balance of all standalone units Manual Preventive
along with their breakups from F&A, which is further reviewed
by Senior Manager - Taxation.
- Bank statements are reconciled to general ledger regularly and Manual Preventive
differences are investigated and resolved on a timely basis.
- Senior Manager - Taxation ensures that any tax adjustments,
penalties or interest resulting from income tax assessment
orders/appellate orders either paid in cash or adjusted with refund
are recorded in books of accounts.
- The journal entry for recording the transaction is punched by
Senoir Manager- Taxation and approved by DGM - F&A
The HOD - Taxation have taken various subscriptions of taxation Manual Preventive
related website to be updated. In case of any amendments about to
come or are notified, a mail is sent to all the unit heads & depot
incharges so that they too have information about the same.
Also taxation team validate on monthly basis the formula used in
software for its accuracy
Any compuatation related to tax is independently reviewed by
HOD - Taxation and validated by their Tax Consultant.
The challan for taxes to be paid is prepared by Senior Manager - Manual Preventive
Taxation which is reviewed by AGM - Taxation and approved by
HOD - Taxation.
The Challan is then processed for payment as per bank
authorisations.
- Compliance module auto sends reminders as per levels defined Manual Preventive
in module prior to due date.
- Also taxation team maintains calender based upon which a mail
is sent to F&A to prepare and compile data for computation of tax
liability which also includes the time frame within which the data
be must shared with taxation team for timely payment.
F&A - Balance Sheet Team ensures that a check sheet is prepared Manual Preventive
for all possible temporary differences and after scrutiny a division
is made between the taxable and deductible differences.
The sheet is reviewed and validated by HOD - Balance Sheet
Team.
F&A - Balance Sheet Team prepare a check sheet for all possible Manual Preventive
temporary differences and after scrutiny a division is made
between the taxable and deductible differences. This ensure no
items to be left out with a deferred tax impact.
The sheet is reviewed and validated by HOD - Balance Sheet
Team.
Tax rate is confirmed from the Subject Matter Expert – Taxation Manual Preventive
who ensures that the rate is correct.
The tax journal entries is posted by balance sheet team which is Manual Preventive
reviewed and validated by HOD - Balance Sheet Team
The GL balance is also coss-checked with excel working.
Facts are thoroughly examined by F&A - Balance Sheet Team Manual Preventive
which ensures only those items are considered for DTA where
reversal is resonably certain which is again reviewed and
validated by HOD - Balance Sheet Team.
1) No manual punching of TDS rate is allowed as IMIS provide Automated Preventive
the drop down list to select the section and accordingly TDS is
calculated. Also on monthly basis the discoverer report generated
by IMIS is shared to Senior Manager - Taxation by F&A who
check the rate and other data which is further reviewed by AGM -
Taxation.
2) The company has opted conservative approach by taking 2%
default rate for all vendors u/s 194C. In case any individual
produces certificate for deduction of TDS @ 1%, the same is
tagged in IMIS to that particular vendor by Senior Manager -
Taxation.
TDS on salary is automatically calculated by software. The Automated Preventive

taxation team on test check basis manually calculate the amount
of TDS to ensure its correctness and also validate on monthly
basis the formula used in software for its accuracy.
The report generated by software is checked by Senior Manager -
Taxation which is further reviewed and approved by AGM -
Taxation and their HOD.
Investment proofs produced by employee is reviewed by Manager Manual Preventive
- Taxation which is again verified by Senior Manager - Taxation
Compliance module auto sends reminders as per levels defined in Automated Preventive
module prior to due date of a particular return.
The compliance module also sends overdue alert mail for any
open tasks which includes consequences of non-compliance.
Also Chief Compliance Officer/Compliance Officer/Compliance
Head will regularly takes follow up regarding any open tasks.
The TDS/TCS return prepared by IMIS is checked and reviewed Automated Preventive
by Manager and Senior Manager - Taxation.
Post filing of return the same is also validated by AGM -
Taxation.
For lower deduction, certificates are taken from the respective Automated Preventive
vendors and recorded in files.
Senior Manager - Taxation tag the lower rate and deduction limit
in IMIS along with certificate no. to that particular vendor.
Taxation team download TDS certificate in the shared folder Manual Preventive
having access to all units and depots from traces atleast 15 days
prior to due date and communicate to F&A via mail regarding
this. The F&A dept. mailed the certificate to respective vendors.
TDS certificate to employees are mailed automatically through
software.
Any information received from F&A by taxation team is first Manual Preventive
review by their head which is further checked by Manager and
Senior Manager - Taxation and then reviewed by their HOD.
Reply to any notice is prepared by Manager - Taxation which is
reviewed by AGM - Taxation and their HOD which is further
approved by Director - Taxation.
The taxation team maintains calender to ensure timely filing of Manual Preventive
reply of notices. HOD Taxation also ensures compliance of
calender timelines
GST liability is computed by corporate IDT team which is Manual Preventive
reviewed by Deputy Manager - Taxation
For GST payment beyond Rs. 10 lakhs Manager - Taxation also
reviews the same.
GST liability due to RCM is calculated by respective F&A team Manual Preventive
at HO/Units/Depots, which is reviewed and checked by Corporate
IDT Team.
Respective F&A team at HO/Units/Depot ensures that ITC Manual Preventive
blocked by virtue of section 17(5) not availed by company which
is reviewed and validated by corporate IDT Team
Respective F&A team at HO/Units/Depot ensures correct and Manual Preventive
accurate reversal of input related to goods or services or both
when used for making partly taxable supply and exempt supply
which is reviewed and validated by corporate IDT Team
Annual adjustment / calculation of ITC reversal and to reverse / Manual Preventive

reclaim the ITC due to taxable & exempt supply is done by
corporate IDT Team which is reviewed by Deputy Manager -
Taxation
Respective F&A team at HO/Units/Depot ensures correct reversal Manual Preventive
of ITC for the goods or services or both when company has
accepted D&D which is reviewed and validated by corporate IDT
Team
Corporate IDT Team advices the respective F&A team at Manual Preventive
HO/Units/Depot for the correct determination of value of supply
in case of supply of goods or services or both between distinct
person as specified in sec 25(4) & (5) or where the supplier and
recipient are related party.
Respective F&A team at HO/Units/Depot ensures correct reversal Manual Preventive
of ITC along with interest in case of non-payment of
consideration to vendors within 180 days which is reviewed and
validated by corporate IDT Team
Respective F&A team at HO/Units/Depot ensures ITC to be Manual Preventive
correctly reclaimed which was reversed due to non-payment of
consideration to vendor which is reviewed and validated by
corporate IDT Team
For Haryana & Assam Units same is ensured by respective F&A Manual Preventive
and reviewed by corporate IDT team.
For other units/Depots, computation of provisional credit made by
corporate IDT Team is reviewed by Deputy Manager - Taxation
To ensure correct filling of GST returns Level 1 employee Manual Preventive
prepares the returns which is further reviewed and approved by
higher level employee as defined in module.
Level 2 responsible person shall upload details of proof of

compliance in the compliance portal and same is verified by SME.
Corporate IDT Team at HO do it on monthly basis. Manual Detective
Reply to notices received from GST department are drafted by the Manual Preventive
GST Team and reviewed and approved by their HOD before
submission.
Direct Tax - Proper record of reply (both in hard and soft copy) is Manual Preventive
maintained by taxation team which is ensured by AGM -
Taxation.
Indirect Tax - Proper record of reply (both in hard and soft copy)
is maintained by taxation team which is ensured by Deputy
Manager and Manager Taxation.
A separate register is maintained by tax team for tracking of Manual Preventive

information/ inquiry called for by the regulatiry authorities.
Corporate IDT Team on periodic basis reviews that IMIS Automated Preventive
correctly charged the tax based on place of supply.
F&A Team at respective location ensures correct claiming of Manual Preventive
inputs.
Also Corporate IDT Team on periodic basis reviews that inputs
are correctly claimed.
F&A team assumes that HSN codes/SAC codes of inputs/input Manual Preventive
services/capital goods as mentioned on vendor's invoice to be
correct.
F&A Team at respective location reconcile the ITC ledgers in Manual Preventive
books with ECL of GST portal and in case of any differences
same is highlighted to Corporate IDT Team.
Corporate IDT Team at HO also reconcile the ITC ledgers in
books with ECL of GST portal on monthly basis.
Periodic reconciliation of invoices with E-way bills is done by Manual Preventive
respective units/depots.
However, in case of any notice from dept. same is scrutinized by
corporate IDT team & reviewed by Manager - Taxation before
any reply is submitted to dept.
Respective F&A team at HO/Units/Depot ensures correct Manual Preventive
discharge of GST Liability on sale or permanent transfer of Fixed
Asset which is reviewed and validated by corporate IDT Team
All HSN/ SAC codes & Tax rates on products & services are Manual Preventive
approved by Corporate IDT team only. In case of any change in
Tax rate, Corporate IDT team get it changed in IMIS.
Control Activity Owner
Direct Taxation Team
Senior Manager- Taxation /

DGM - F&A
Balance Sheet Team
Senior Manager- Taxation /

DGM - F&A

Balance Sheet Team
Balance Sheet Team
SME - Taxation
Balance Sheet Team
Balance Sheet Team

Compliance Module
Indirect Taxation Team

Compliance Module

Taxation Team

F&A
F&A
Respective units/depots

RISK CONTROL MATRIX - Financial Statement Closure Procedure
S. No. Control Objective Risk No What may go wrong? / Risk Description Control No Control Description at DSL
1 To have a documented process with respect to financial R1 There is no appropriate documented process with respect C1 There is no SOP (Standard Operating Procedure) in place as of now.
closing and reporting to financial closing and reporting, including the Company monitors the financial closing and reporting process through
identification and updating of internal and external Balance Sheet Activity Chart, which is also reviewed by F&A Head
financial reporting requirements and deadlines. responsible for balance sheet preparation for any updation requirements.
Presently list is sent to all concerned unit finance heads through email
which also includes the timelines for financial closure. The list also
includes guidelines and formats for annual disclosure requirements.
2 To timely and effectively communicate relevant R2 There are no procedures and timetables for communicating C2 List of Requirements which includes the timelines for closure is floated
information affecting the financial closing and reporting relevant information affecting the financial closing and through email by "HOD Balance Sheet Team" to all the concerned finance
process within the entity reporting process within the entity heads at various units along with updation if any. This is further ensured by
CFO that the timetables and requirements are floated.
3 A Delegation of Authority Matrix is in place within the R3 The Company has no documented Delegation of Authority C3 The Company has defined Delegation of Authority Matrix in balance
Organisation which establishes segregation of duties and (DOA) and / or a Responsibility structure with a view to activity chart which defines the roles and responsibility of people
accountability for the various functions involved in the establish segregation of duties and accountability for the responsible towards financial closure and reporting process.
FSCP Process. various functions involved in the FSCP Process.
4 Any changes made to financial closing and reporting R4 Changes made to the financial closing and reporting C4 1) Changes are identified based upon various news letters, amendments to
process are properly authorised. process are not valid and properly authorised. the acts / Ind AS, and after discussion with the various company
departments, like legal personnel and SME's. Post discussion only, the
identified changes are incorporated in FSCP process. All changes are also
approved by CFO and board of directors.
2) The modifications so incorporated are communicated to the relevant
personnel's at corporate office / unit for implemetatation.
5 The Accounting Policies are documented and authorised. R5 There is no documented list of Accounting Policies in C5 Accounting Policies are attached to the Balance Sheet, these are reviewed
force in the Company which are reviewed, authorised and every year by the management and whereever required, changes are
documented. incorporated.
6 Any updation of accounting policy are valid and properly R6 Any updation of accounting policy are not valid and C6 Any updation of accounting policy is evaluated by Balance Sheet Team and
authorised. properly authorised. the same is also reviewed by subject matter expert.
Post review by SME, same is also required to be approved by CFO.
7 Right man for right job R7 Individuals in financial reporting roles do not have the C7 Knowledgeable personnel are hired into financial reporting roles and
necessary understanding of the organisation’s operations provided with adequate training, in line with Corporate guidelines. On
and appropriate accounting knowledge to properly perform periodic basis a management personnel audit is conducted to ensure that
their assigned responsibilities. personnel hired have appropriate knowledge to properly perform their
assigned responsibilities.
8 Accounting treatments before adoption are approved by R8 When alternative accounting treatments are available for a C8 The Balance Sheet Team evaluate the alternate accounting treatments and
the Management and Audit Committee. significant event or transaction, the decisions on which also ensures that this is in accordance with GAAP and Ind AS. Any
treatments to select are not documented, approved by alternative accounting treatment is also evaluated by the team of company's
management, and are not communicated to the audit subject matter experts and only CFO approved transactions are recorded as
committee. per authorisation matrix.
The proper documentation is ensured by F&A - Balance Sheet Team.
9 User profiles for financial reporting process are defined R9 User profiles (on G/L system) are not C9 System-access profiles are set up by management and monitored by the IT
and monitored. monitored/maintained to ensure that appropriate team for any misuse.
individuals have access to financial reporting process. The IT team will provide additional access to user only with the approval
of HOD's of respective dept.
10 There is procedure in place to ensure all postings have R10 There is no procedure in place to ensure all postings have C10 It is ensured by respective teams that all the unpproved vouchers have been
occurred in the correct period occurred in the correct period approved in the system and the system is locked.
Also, in IMIS, the access rights to open and close financial periods is
adequately restricted to prevent late entries posting. Post closure of period
in IMIS, voucher can be paassed with CFO's review and approval.
However, HOD - BSH Team ia also authorised to approve the posting of
entries related to low activity level.
11 Independent review for reconciliation of significant R11 There is no reconciliation for all significant accounts and C11 For reconciliation of all significant accounts respective team is reponsible
accounts no independent review of such reconciliation which is further reviewed by respective team lead.
12 Intercompany transactions are correctly eliminated in R12 All intercompany transactions and balances are not C12 Accounts personnel prepares and updates inter unit reco. which is reviewed
consolidation and in the current accounting period identified, reconciled, and appropriately eliminated in by respective unit incharge / heads or team leads and Company has also
consolidation in the appropriate accounting period. defined specific GL codes for inter unit transactions.
13 All suspense accounts are identified and monitored. R13 All suspense accounts are not identified and monitored. C13 Respective unit incharge / team leads ensures any balance parked in
suspense accounts should be identified on timely basis.
14 MIS reports are prepared regularly accurately R14 MIS reports are not prepared regularly and / or prepared C14 Balance Sheet Team ensures that MIS reports are prepared on regular basis
inaccurately with wrong data. and the data extracted for MIS are through trusted sources only i.e. Trial
Balances, Ledgers etc. Any estimation of provisions is also considered after
due diligence of past trends or on accrual basis. This minimises the risk of
errors. Ratio analysis of output is carried out to further check on trends and
accuracy of information. All this is the verified by Head - BSH team.
Finaly MIS is reviewed and verified by CFO.
15 Cut Off Procedure are done properly at the closing of the R15 Cut Off Procedure are absent and not done properly at the C15 Financials are prepared based on finalised trial balances only. Books of
books of accounts. closing of the books of accounts. accounts are locked for editing once the cut-off trial balance is taken and
only approved transactions from HO can be entered in units after cut-off.
Balance Sheet Team ensures that all the protocols set for closure of books
are followed.
16 Contingent liability disclosures are accurately made. R16 Incorrect disclosure of contingent liability is made or no C16 Contingent liabilities are accurately reported based on the information
disclosure on contingent liability is made. received from the concerned subject matter experts who maintains all the
information and status of litigations. Arithmetic accuracy is ensured by the
Balance Sheet Team.
17 The trial balance(s) used to prepare the financial R17 The trial balance(s) used to prepare the financial C17 On closure of books, the data is extracted from IMIS directly into Excel
statements are generated from the final general statements are not generated from the final general Sheet in consolidated form, and thereafter the balance sheets are prepared.
ledger(s). ledger(s). As a cross check, balance sheet extracted from IMIS is reconcilled with
Excel Balance Sheet.
18 All trial-balance accounts are correctly and consistently R18 All trial-balance accounts are not appropriately and C18 The format for financials are so designed that all related GL’s are grouped
grouped for presentation in the financial statements for consistently grouped for presentation in the financial together leaving no room for error. Further the grouping is consistently
accounting periods presented. statements for accounting periods presented. reviewed by Balance Sheet Team for consistency and changes if needed are
discussed, documented and appropriate disclosures are made in financial
statements.
A final check is also performed by CFO
19 Related Party transactions are appropriately disclosed. R19 All related-party events and transactions are not identified C19 F&A Balance Sheet team receives a list of related parties from the
and, appropriately accounted for, and disclosed in the secretarial deptt. The list then floated on a template with all possible nature
appropriate accounting period. of transactions. The template is being shared with all the units and depots
with all guidelines for capturing of related party transactions. These
templates are consolidated at Corporate after being verified and cross
checked by HOD - Balance Sheet Team. The related party data is also get
validated from subsidiaries by cross confirmation. This process ensures that
all RP transactions are captured and disclosed.
20 Consolidation process is effective. R20 All subsidiaries and other entities are not identified and C20 A list of subsidiaries and other entities is prepared, updated for new
appropriately included in the consolidation process. acquisitions and stake disposals is received from secretarial department.
This list then validated from Investment Accounts. F&A- Balance Sheet
Team reviews the consolidation for the proper inclusion of the results of all
subsidiaries and other entities for which consolidation is prepared as per
the Companies Act 2013 and applicable Ind As which is reviewed by HOD
- Balance Sheet Team.
21 Consolidation packages received from subsidiaries R21 Consolidation packages received from subsidiaries do not C21 Only final signed audited (where ever applicable) financials of subsidiary
accurately reflect the underlying financial records accurately reflect the underlying financial records at each (alsong with signed component isntructions) is taken for preparing
subsidiary. consolidated financial accounts .
22 In terms of consolidation of foreign subisdaries in the DS R22 In terms of consolidation of foreign subisdaries in the DS C22 Foreign exchange rate as declared by any nationalise or Axis bank is taken
Group Consolidation financials, Conversion from foreign Group Consolidation financials, Conversion from foreign for the purpose. Conversion exercise is done by BSH team and is then
Currency to local currency is accurate. Currency to local currency is not accurate due to incorrect verified for accuracy by Head BSH team
foreign exchange rate.
23 All necessary disclosures in draft financial-statement are R23 All necessary disclosures in draft financial-statement are C23 Company has a team of professionals (Balance sheet team) which
correctly made. not made. consistently evaluates all the changes made in Ind AS and ensures that all
required disclosures are made in compliance of all applicable standards and
entity's accounting and disclosure policies. The disclosures so made is
further reviewed by their Head BSH team.
The draft financials are compared with previous years financials to ensure
that the same are in conformity with it, then current changes affecting the
financials are taken care off.
24 Financial Statement is prepared in accordance with R24 Each financial-statement disclosure is not prepared in C23 Company has a team of professionals (Balance sheet team) which
GAAP accordance with generally accepted accounting principles consistently evaluates all the changes made in Ind AS and ensures that all
(including relevant regulatory rules) and the entity's required disclosures are made in compliance of all applicable standards and
accounting and disclosure policies. entity's accounting and disclosure policies. The disclosures so made is
further reviewed by their Head BSH team.
The draft financials are compared with previous years financials to ensure
that the same are in conformity with it, then current changes affecting the
financials are taken care off.
25 Published Financial Statements are error free R25 The published financial statements (in print and electronic C24 The financial statements and related disclosures, in print and electronic
form) are not free from publishing, printing, or electronic- form, are reconciled to the approved financial statements, trial balance, and
conversion errors. supporting information prior to final publishing, printing, or electronic
submission.
Type of Control Control
Substantive Procedure Performed Remarks
(Manual/ Automated) Effective
Manual
Manual We went though the process of requirements being floated

to the respective Units and found that the requirements
were being floated through emails and constant follow ups
were conducted by the F&A team at HO responsible for
book closure
Manual
Manual
Manual
Manual
Manual
Manual
Automated
Manual
Manual
Manual
Manual
Manual
Manual
Manual
Manual
Manual
Manual
Manual
Manual Copy of final signed audited is verified by us for the year

ending 31st March 2019
Manual
Manual
Manual
Manual

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RCM

6 Indent is Authorized. Procurement of Fixed R6 Indent is unauthorized C6

7 There is a timely purchase of Fixed Procurement of Fixed R7 Delay in procurement Schedule C7

15 PO is not back dated. Procurement of Fixed a R15 PO is back dated. C14

Imported FA is accounted at the exchange rate prevailing on HOD-F&A Preventive Manual

S No Control Objective Process Sub-Process (1)

2 Selection of competent/favourable employees HR On-Boarding

3 Formal documented process and evaluation parameters for HR On-Boarding

4 Verification of the educational and work experience certificates stated HR On-Boarding

6 Payment for recruitments through consultants/referrals is made only HR On-Boarding

7 Unique E-code generated for the employees HR On-Boarding

8 E-code generated when mandatory documents collected & updated in HR On-Boarding

9 Correct or true information provided by the new joinee HR Background

11 Formal / written agreement with the recruitment agencies HR Vendor

14 Relocation expenses/joining bonus/notice period buyouts processed HR Joining Bonus,

16 Authorised access to employee database Payroll Employee

17 1) Leave encashed as per the HR Policy. Payroll Payroll

4) Correct leaves recorded.

18 Correct payment of salary Payroll Payroll

19 Salary credited in the correct account Payroll Payroll

21 Statutory deductions computed accurately Payroll Payroll

23 Salary disbursed to correct employee Payroll Payroll

24 Timely disbursement of salary to employees Payroll Payroll

25 Correct / timely in accounting of salary expense Payroll Payroll

27 Notice period waiver provided to resigned employee is properly HR Exit Formalities

29 No leakage of valuable and confidential information by an Payroll Exit Formalities

30 1) F&F amount disbursed with adequate approvals Payroll Exit Formalities

32 1) Correct accounting of gratuity / leave encashment. 2) Payroll Gratuity / Leave

36 Timely submission, settlement and accounting of reimbursement Payroll Employee

37 1) Fictitious / inflated expenses not being claimed Payroll Employee

38 Correct accounting of travel expenses reimbursed Payroll Employee

41 Adequate documentation leading to recover loans Payroll Granting of

43 Correct accounting of advances Payroll Granting of

45 All employee are covered in the insurance policy Payroll Insurance

46 Salary not processed for absconding employee Payroll Payroll

48 In determining the employee benefit obligation: Payroll Employee

R1 Absence of well defined policies/ SOPs may result in the various C1

R2 Selection of Incompetent/unfavourable employees C2

R3 Absence of a formal documented process and evaluation C3

R4 Non-verification of the educational and work experience C4

R6 Payment for recruitments through consultants/referrals is made C6

R7 Duplicate E-code generated for the employees C7

R8 E-code generated without mandatory documents collected & C7

R9 Incorrect or false information provided by the new joinee C8

R10 Employees with dubious backgrounds are hired /allowed to work C8

R11 Absence of a formal / written agreement with the recruitment C9

R13 Absence of periodic training and development programmes for C11

R14 Inaccurate relocation expenses/joining bonus/notice period C12

R15 Inaccurate updation in employee database may result in incorrect C13

R16 Unauthorised access to employee database C14

R17 1) Leave encashed in excess of eligibility as per the HR Policy. C15

R19 Salary credited in the wrong account C17

R21 Statutory deductions not computed accurately C19

R23 Salary disbursed to terminated employee / incorrect employee C21

R24 Delay in disbursement of salary to employees C22

R25 Incorrect / delay in accounting of salary expense C23

R26 Inaccurate F&F calculation and non-recovery of dues / assets C24

R27 Unauthorised notice period waiver provided to resigned employee C25

R29 Leakage of valuable and confidential information by an C26

R30 1) F&F amount disbursed without adequate approvals C27