IFC - Internal Financial Control

IFC-Internal Financial Control compliance Implementation by Indiba Consulting.

1. Internal Financial Control (IFC): Assessment & Compliance Implementation IFC

2. Background What is Internal Financial Control (IFC) ? Who All Are Responsible? Internal Controls – Expected responsibility of stakeholders IFC – Beyond Compliance Indiba Consultancy’s Offering for IFC – Assessment and Compliance IFC – Tools and Accelerators by Indiba Consulting

3. IFC Purchase liability (AP) is correctly recorded in the Financials Payments to suppliers is done as per agreed credit Policy. Unauthorized change in Item price master (access controls) Example As per Sect ion 134 of t he Companies Act 2013 , t he term ‘Internal Financial Cont rols’ means t he policies and procedures adopted by t he company for ensuring: Orderly and efficient conduct of its business, including adherence to company’s policies, Safeguarding of its assets, Prevention and detection of frauds and errors, Accuracy and completeness of the accounting records, and Timely preparation of reliable financial information. Definition What is Internal Financial Control (IFC) ?

4. Who All Are Responsible? As per Companies Act 2013 Who All are Responsible Public Listed Company Public Unlisted Companies Pvt. Co. Paid up Share Capital >= INR 20 Cr Paid-up share capital >= INR 10 Cr Turnover >= INR 100 Cr Loan /Borrowing in aggregate >= INR 50 Cr 1 Director’s Responsibility, Statement (134 ) IFC 2 Auditor (143 ) ICFR 3 Audit Committee (177 ) ICFR 4 Independent Directors (S chedule I V) ICFR 5 Rule 8(5)(viii) of the Companies, (Accounts) Rules, 2014 – BOD report – Financial Statements ICFR

5. Expected respons ibility of the stakeholders Would like to see a robust framework that is aligned to accept able s tandards Review & question the basis of your controls design and ongoing assessments Focus on internal controls, to the extent these relate to the financial report ing (ICFR) Auditors Responsibility limited to Evaluation of Financial Reporting Controls” Company Mana g em e n t Auditors Audit Committee / Independent Director Create & t est the framework of internal controls IFC (including operational & Compliance) Cont rols documentation Would rely on the assessment and view of the Audit Committ ee They may ask for addit ional information Board of Directors

6. How will IFC help beyond compliance ? Helps in business process re-designing to plug revenue leakages & cost containment opportunities Helps in rationalizing the number o f controls across organization – moving to smart and automated controls Helps in standardizing policies and procedures for multi-location/ multi-business Companies Fosters a control conscious work culture for people behind controls Provides assurance to the CEO/ CFO as well as improves business performance In some instances, also serves as a base for blue print of optimal procedures while thinking about ERP Aimed at strengthening the processes to further improve business, identify cost containment opportunities as well as drive growth

7. Indiba Consulting Offering for: IFC Assessment & Control Implementation

8. Understanding Compliance requirement Project Planning Project Management & Quality Assurance Project Team & Training Control Assessment Ongoing Training & Communication Communication Plan development Internal Control Risk Assessment Monitoring & Reporting Internal Control Framework Development Phase 1 Phase 2 Phase 3 Phase 4 Project People Process Internal financial controls (IFC) - implementation methodology

9. IFC - Tools and Accelerators (by Indiba Consulting)

10. Some of our Customers

11. Thank You Contact us : www.indba.in Mumbai Office : Office No – 57, Ground Floor, Foundation Towers, CBD Belapur , Sector 11 Mumbai – 400614. UAE : 2204,Fortune Executive Towers T-1, JLT,Dubai United Arab Emirates Cell : + 91 9028013279/9987454045 Telephone : + 91 22 65206530 Email : [email protected]