Audit & Assurance Services
This includes Information System Audit, Management Audit, Tax Audit, Due Diligence service, apart from Statutory Audit, Internal Audit and Propriety Audit including Special Audit, Forensic Audit and Investigation.
Audit & Attestation Services
Audit is an independent, Critical and continuous appraisal of the functions established within an organization, to examine and evaluate its activities for its improvement and governance, as a service to the organization. Internal audit plays an important role in providing assurance to the management on the effectiveness of risk management procedures followed. The audit methodology and software are constantly reviewed to ensure that they are up-to-date with the latest changes in international auditing standards and regulations. A statutory audit is an appraisal of the financial activities within an organisation and the status of compliances required by the Statutes and Standards.
We provide assurance services both to regulators and to managements to enable our clients to ensure adherence to best practices and comply with the regulatory requirements. We are committed to the highest professional ethics, standards, and principles.
Reporting on Internal Financial Control
Clause (e) of Sub-section 5 of Section 134 of the Companies Act, 2013 defines Internal Financial Controls as “the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.”
Applicability of Reporting on Internal Financial Controls
Sec 134 requires the directors’ responsibility statement to state that the directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. Further, the Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014 requires the Board of Directors’ report of all the companies to state the details in respect of adequacy of internal financial controls with reference to the “financial statements” only.
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the 2013 Act” or “the Act”) requires the auditors’ report to state whether the company has adequate internal financial control system in place and the operating effectiveness of such controls. The term ‘internal financial controls’ wherever used in this Guidance Note issued by Institute of Chartered Accountants of India, in the context of the responsibility of the auditor for reporting on such controls under Section 143(3)(i) of the Act, per se implies and relates to internal financial controls over financial reporting.
Internal Financial Controls over Financial Reporting
Internal financial controls over financial reporting shall mean “A process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles“. A company’s internal financial control over financial reporting includes those policies and procedures that
I. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
II. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
III. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.”
Importance of Effective Internal Controls on a Company
In our opinion, effective internal controls matter to a company in the following five essential ways:
- It ensures accuracy in financial reporting
- It ensures compliance with laws and regulations
- It builds effective and efficient operations
- It allows for a peaceful night’s sleep – ensures that the management team and the stakeholders are not faced with risks since they adhere to the required regulations
- It saves money
Challenges Faced by Companies While Implementing a Financial Reporting Compliance Program
- Failure to identify/quantify all material risks
- Failure to obtain multilevel management commitment
- Failure to integrate the program among all functions
- Failure to provide a mechanism to incentivize employees
- Failure to monitor effectiveness of program
- Failure to keep senior management apprised and engaged
- Failure to properly and thoroughly train employees
- Failure to report violations
With Our core team dedicated and experienced in implementation of Internal Control over Financial Reporting of various manufacturing, trading and service industry we offer below assistance services for your organization with efficient and timeliness approach:
- Review of existing process and controls documentation.
- Review of ‘Entity level controls’ such as code of conduct, whistleblower mechanisms, delegation of Authority management reporting, etc.
- Evaluate control testing results from existing monitoring mechanisms such as Internal Audit scope and coverage; management self-assessment questionnaires, ERM etc.
- Track controls and testing of controls of processes
- Drafting of Business Processes Narratives over all material business processes.
- Risks & Controls Matrices as required.
Due Diligence Review
Due Diligence Review (DDR) is a process, whereby an individual or an organization, seeks sufficient information about a business entity to reach an informed judgment as to its value for a specific purpose. Offers to purchase a business are usually dependent on the results of due diligence analysis. This includes reviewing all financial and legal records including anything else deemed material for the purpose.
Today, businesses have become complex and India needs comprehensive accounting standards. Move towards Ind AS is an attempt to bridge this gap.
The Indian Companies witnessed transitioning to Ind AS (Indian Accounting Standards) – a new accounting framework converged with IFRS in 2016. This would enhance the required uniformity and comparability throughout the practices of accounting. The standards board of the institute of Chartered accountants in India has formulated such accounting standards. The way IFRS has been numbered and named similarly Ind AS has also been named and numbered.39 Ind ASs have been notified by the MCA so far.
Though most of the Ind ASs are extremely close to the IASB IFRS yet there are certain areas in which MCA differs from the principles formulated by the IASB IFRS. Certain areas that differ are related to the usage of the leased asset at about the same rate -straight lining of lease rentals, accounting practices for the conversion of the foreign currency bonds, usage of the Indian GAAP possessing fixed assets’ values and the methodology for treating the exchange differences on the borrowings of the long term foreign currency. The main objective of the accounting standards is to treat several accounting aspects by removing the variations and bringing standardization in the presentation. The intention is the harmonization of the diverse policies of the accounting adopted in presentation as well as preparation of the financial statements by varied reporting enterprises for facilitating the intra firm and inters firm comparison.
The MCA has mandated transitioning to Ind AS in a phased manner based on the listing status and net worth of a company.
Companies with a net worth of Rs. 500 crores or more are required to apply the new standards mandatorily. The second phase of Ind AS (beginning from 2017-18) will cover all listed entities and other entities with net worth of Rs. 250 crores or more.
Impact of IND AS
Each and every area will be covered under Ind AS. This would comprise of the reported assets, liabilities, expenses, revenues and equity. At an elementary level, the focus of the Ind AS would be on substance instead of the legal form and the rewards and the risks associated with the underlying transactions. This would change the accounting that is legal structure based to an accounting that is substance driven. Ind AS would impact the real economics of the transaction and would reflect the underlying rationale of the business.
Transition to Ind-AS is not a mere accounting change but has significant business consequences like:
- Modification to Transaction modules required in Corporate IT system.
- Impact on key performance indicators like EBITA, Liquidity ratios, net worth, debt covenants and executive compensation plan.
- Five Step Model to be implemented for Revenue Recognition under Ind AS 115
- Component approach and replacement accounting mandatory for Property, Plant & Equipment.
- Financial Instruments accounting & extensive new disclosures on capital management.
The impact of the move could be quite significant for certain companies with complex transactions. The impacts of change to Ind AS need careful analysis. Prior to embracing full-fledged conversion, a preliminary study would help the Companies assess the level of complexities and challenges, and then prepare and plan for effective and efficient conversion exercise.
Transition to Ind AS is expected to be a challenging affair for Indian Companies.
Services relating to Ind AS
- GAAP conversion (from Indian GAAP to Ind AS or IFRS),
- Advice on new accounting changes/pronouncements
Our senior professionals have extensive training experience as well as experience of working on GAAP to Ind AS conversion engagements. They also share global best practices and perspectives to provide a holistic understanding of the challenges related to the transition to Ind-AS. Access to us provides you a rich library of accounting and auditing guidance relating to implementation of Ind AS. We augment the in-person interactions of the Clients’ Ind AS engagement team by sharing key knowledge and interpretive guidance produced by our firm’s accounting policy professionals.
We strive for consistent interpretation through constant communication and consultation with our engagement teams and the clients.
Tax & Regulatory
Direct Tax Services
In the modern day world all businesses are engaged in multinational transactions and operations, they are continually challenged to manage the impact of multiple and ever-changing tax -jurisprudence. Perfect business decision requires appropriate tax advice. Proper tax strategies and planning can reduce incidence of tax leading to competitive edge.
SPAN provides comprehensive and sophisticated tax assistance in effectively managing the impact of taxation. We help to address, domestic and international tax issues. Be it compliance, litigation or advisory, we are well equipped to handle critical tax issues in today’s tax environment.
Compliance: Filing of corporate and non-corporate individual tax returns, deposit and filing of withholding tax returns, obtaining certificates for lower deduction and appearance before the authorities in case of assessment, withholding tax proceedings and other proceedings.
Domestic Advisory: Advice on Search and Seizure operations, Tax planning strategies, payroll structuring and opinions on various issues under the tax laws
Personal Advisory: Assisting in devising of succession planning strategy and implementation of the same by formation of trusts and execution of WILLS.
Self-assessment: Assisting in making a self-assessment of income. Further, along with the tax, any interest arising on account of delay in furnishing of tax return or any default /deferment in payment of advance tax, is also supported.
Litigation: Handling and representation in Income Tax Search, Seizure and Survey cases, Appearance before the Commissioner (Appeals) and Income-tax Appellate Tribunal.
International tax: Cross border tax structuring and advice on global tax matters, advice on treaty issues, expatriate taxation, tax advice on inbound and outbound investment and appearance before the tax authorities. We also provide advisory service and Report on Transfer Pricing for international transactions.
Trust related work: Formation of private discretionary and public charitable trusts and appearance before the authorities in case of any proceedings involving trusts.
Income Computation and Disclosure Standards: We provide assistance in examining ICDS having regard to nature of business & transactions of the taxpayers and advising on relevant tax implications.
Indirect Tax Services
Enables better compliance, reduce exposure and helps creating value. Our team of experts provides advisory and compliance audit in the area of Central Excise, Service Tax and VAT.
Compliance Outsourcing: Filing of VAT, service tax returns and Excise Returns along with appearance before the authorities
Advisory and Strategic Consulting: Providing consultancy in relation to Service Tax, Central Excise, Customs Duty, Foreign Trade Policy and State VAT
Litigation: Appearance before the Commissioner (Appeals), Central Excise and Service Tax Appellate Tribunal.
Tax Audit: We support in the preparation and carrying out Tax Audit under various Indirect Tax Laws
Form Issues: We provide all kinds of assistance required in terms of Issue / Receipt of various forms like Form F, Form C, Form H etc.
Goods & Service Tax
GST is one of the most radical reforms that have been proposed for the Indian economy after years of political and economic debate. GST is not just a Tax Reform but a Business Reform, as it modifies the way in which business will be done in India. Every Stake holder needs to get ready for the GST likely to be introduced in India from 1st July, 2017. Tax is money and whether the stake holders will gain or loss depends upon the tax schedules, final GST rates and the laws that are framed for availing input tax credit on item-to-item basis or on cross basis. The stake holders need to take immediate steps and start discussions, industry specific, to frame their final view on the draft legislation, as and when released. The impact will be tremendous; laws will be simplified and if the stake holders rightly understand the intricacies of the law, take timely steps to upgrade their business practises and systems; the financial gains will be all pervasive.
Companies that are proactive in preparing for the GST early can gain a real competitive advantage by reducing disruption and maintaining and improving relationships with domestic/international suppliers and customers alike. Starting the analysis of GST process early will help Industries to leverage the opportunities that the new tax system offers, ensure timely compliance and avoid disruption and panic at the later stage.
Our in depth experience in Indirect Taxation for over so many years for some big Corporate Houses and a dedicated research team for GST analysis, makes us the competent consultant for smooth roll out and management of GST in your organisation.
Start up Business
We help new entrepreneurs umbrella services to get their business started and get stabilised. We are providing required business information, arrange funds for their business, form entities – a body corporate or otherwise, procure trade & other licences, procure PAN, and get the entity registered under Service Tax & VAT Acts. Once started we are providing them regular required advises on current legislations, accounting and Tax matters. We are also providing Accounting & Audit Services on requirement.
Company Law Matters & Secretarial Functions
SPAN helps Corporate in navigating the complexities of the new legislation and adapt to the changes introduced in the Companies Act, 2013. List of services delivered includes:
Impact Study – We provide analysis of the provisions of the 2013 Act applicable to the company and their corresponding impact study considering the present policies and structure of the company.
GAP Investigation – We help Organizations to figure out the changes/additions required in the statutory documents/ records/ structure and carrying out the changes related thereto.
Training and Roadmap – We provide Customized training program and prepare a road map for key stakeholders in understanding their roles, responsibilities and liabilities.
Getting Ready for changes – Getting the Organization ready in carrying out the changes in the structure and policies of the company along with providing opinion on interpretation issues
Others – A bouquet of services are provided for incorporation including conversion of non-corporate bodies in to corporate units and the compliance of related secretarial matters like preparation of Memorandum and Articles of Association, Prospectus, maintenance of related registers and filing of various returns under the law. It also provides services like acting as Receiver and Liquidator under the Companies Act.
FEMA / FCRA
- Advising clients on and ensuring compliance with the provisions of the Foreign Exchange Management Act,1999 (FEMA) and Foreign Contribution(Regulation)Act, 2010
- Preparation of documentation and obtaining approvals from the Reserve Bank of India for the allotment/transfer of shares to foreign citizens and foreign companies.
- Obtaining approvals from the Reserve Bank of India with regard to various transactions involving foreign exchange like stock option plans, technology transfer agreements, EPC contracts, legal service agreements, acquisition of foreign companies, foreign currency loans, suppliers credit etc.
- Advice on Investment Structuring decisions
- Drafting applications and obtaining approvals of foreign investment proposals in various sectors of economy from the Foreign Investment Promotion Board (FIPB)/Ministry of Finance, amendment and extension of FIPB approvals, etc.
- Advising and handling issues relating to foreign contribution received.
Management Consultancy Services
Management Consultancy being a non-audit based service, is an aid to management in finding constructive and practical solutions to key concerns affecting organisational performance in an era of cut-throat competition. The collaborative approach adopted in these consultancy projects makes for easy implementation of the proposed organisational and process models. It helps industry in achieving efficiency improvement for sustainable growth both in short term and long term perspective.
We are providing services which includes:
Business Consulting – This includes providing consultancy in Business Planning and strategies along with Performance Measurement and Improvement studies
Business Process Consulting – This includes designing of Accounting and Costing systems along with Stores and Asset Management process.
Design of Control System – This includes designing the Internal Audit Framework and Budgetary Control Systems.
Management of Receivables & Payables
Management of Inventory
Fixed Asset Management
Back Office Support
External service providers support a broad spectrum of non-strategic repetitive functions thereby releasing managerial time for core activities. Outsourcing of functions to a skilled workforce is not only service friendly, cost effective and process efficient, it also enables internal resources to focus on achieving business objectives. SPAN plays an integral role in maintaining the efficiency of outsourced facilities and meeting the needs of the operating units they support. The major areas of support include:
Specialized Accounting Services & Allied Matters:
A total comprehensive accounting service including development of MIS and business management. It includes preparation of Accounting Manuals, Internal Audit Manuals, Feasibility Study Reports, Project Reports containing forecasting and projections for procuring Loans from Banks & Financial Institutions.
SPAN helps companies in respect of their financial reporting by providing
- Uniform Chart of Accounts for group
- Design of accounting procedures (say for elimination of intra group transaction or deferred tax creation) for group
- Preparation and/or assistance in consolidation of group financials
- Combined / carve out financial statements
- Assistance in selection of appropriate accounting policies for group
- Preparation of opening balance sheet in respect of business acquisition
- Designing MIS for Management
Dedicated and experienced professional with wide spread knowledge of method relating to payroll processing can provide full-fledged payroll service and related compliance.
Claims & Transaction Processing:
We have a dedicated team experienced hands working under the close supervision of experts and is providing support to the biggest multinationals/giant companies in the country in the arena of claims/transaction processing for last fifteen years, both on site and off site.
ERP Software Implementation Consultants are responsible for providing a consultative approach to the successful and timely implementation of ERP. In this regard, list of services provided by us include –
- Analysis of clients’ business requirements and objectives and working with them to meet those objectives
- Assess clients’ needs for software training and implementation services
- Train users in application use and/or configuration
- Assist clients in application testing and rollout
- Analyze and specify application enhancements