Audit in Finsys ERP Environment needs which skills ( Hand’s-on for Audit team)

Voucher audit

• Purchase Daybook, column format
• Purchase Daybook, voucher format, if and where required .. ( services like 57 series, RCM vouchers, etc)
• Sales Daybook, for audit of Sales invoices… see if any invoice edited after printing / files / sending , by any error / any deleted
• Journal Daybook ( Voucher format is best) .
• Not : In tally dunia, Journal is everything apart from Purchase… but in Finsys due to excellent automation and automatic 3B preparation, automatic TDS, automatic RCM, Automatic many other things, a scientific system of 50,51,52,57, 5A, 5B etc is there
• see this link below for details : https://finsys.co.in/manuals-accounts-and-finance-module-finsys-erp

• The biggest / most important thing to check in audits now a days is TDS compliance, and GST compliance
• at the voucher level you must see…… TDS is there wherever required, don’t miss it. And TDS is proper rate, proper section and posted properly
• Hence MLG team always recommends that the Voucher must be printed and pinned on the top of the vendor’s invoice… in tally environment people sometimes only mark “entered” on the invoice, this is not good… or mark the voucher number/date on the invoice, this is also not sufficient,  Since auditor will not be able to see if the TDS posting is proper or not. GST is taken in eligible or ineligible. GST is taken in C or S or I… all this is visible in printout form only.

Ledger Review audit

• Purchase side ledger review
• Sale side ledger review
• Expenses side ledger review
• Loans side ledger review
• Creditors side ledger review
• Debtors
• and so on

MLG BPO, KPO, the Business Outsourcing Team.

Making Your Business Better

for Careers with MLG BPO / KPO / Audit Teams, contact us

Cost Audit Non Compliance

As per Law, the Cost Audit is compulsory in certain cases (Turnover over Rs 100 Crores p.a.)

Cost records are compulsory , for Turnovers over certain limits for certain specified industries.

This is a rare case of conviction for violation of provisions of the Companies Act. The Economic Offences Wing Court in Hyderabad has found Ameya Laboratories and its managing director guilty of failing to file a cost audit report to the Registrar of Companies (ROC).

https://www.thecompanycheck.com/company/ameya-laboratories-limited/L24230TG1996PLC023283

The company conducted sales or supplied products worth Rs 269 Crores, but did not file the report within the stipulated time.

Both prosecutions were filed by the Registrar of Companies, Hyderabad for non-filing of cost audit reports to the central government within a stipulated period as per Companies Act, 2013 under Section 233(b) for 2012-13 and 2013-14 fiscals. According to the preceding fiscal filed with ROC, the company’s turnover from sales or aggregate value of the turnover from the sale or supply of products as evident from profit and loss on March 31, 2011, was Rupees 269 Crores, making it liable to file a cost audit report to the central government.

ROC officials said that both cases were proved by the prosecution, and these are the fourth and fifth successful prosecutions, resulting in the convictions and imprisonment of the accused.

However, this is a rare case where an accused has been given rigorous imprisonment under the Companies Act for non-compliance.

The company has been found guilty and sentenced to pay a fine of Rs 3,000, while the Managing Director has been sentenced to rigorous imprisonment for five months and directed to pay a fine of Rs 2,000.

Under the Companies Act, companies with a turnover exceeding a specified amount are required to file a cost audit report to the central government. The objective of this requirement is to ensure that companies are maintaining adequate cost records and that their cost accounting practices are in compliance with the established norms.

According to Section 233(b) of the Companies Act, every company engaged in the production, processing, manufacturing or mining activities and whose annual turnover exceeds the threshold limit, as prescribed by the central government, is required to get its cost accounting records audited in the manner specified by the government.

The Companies Act also mandates that the cost audit report must be filed with the Registrar of Companies (ROC) within the stipulated time period. Failure to do so is considered a violation of the Companies Act and can result in penalties and even imprisonment, as in this case here.

Read More: https://www.taxscan.in/hyderabad-eow-court-convicts-md-for-non-filing-of-cost-audit-reports/260791/

Members are suggested to get themselves complied with in the Cost Records and Cost Audits area too.

This was a Sick company,

already shut down as per this site on rediff.com.  This was a listed company in 2011 to 2016. then it apparently shut down. See the link below.

https://money.rediff.com/companies/Ameya-Laboratories-Ltd/12540667/results-annual?src=comp_research

Contact us / Our team

Supreme Court Dismisses foreign national

Do you know about the TDS on Business Gifts , if you are a MSME….This New TDS 194R might be even 20% instead of 10% ?

Last year, a new TDS had started… this March 2023, we have the first Balance Sheets for this section’s compliance…. So, let us see this TDS on Gifts From the perspective of MSME

Labour welfare Fund – Haryana … Alert

“Due date” ( including buffer time given by Govt) = 31st Jan 2023 ( for the 12 months Jan 2022 to Dec 2022 )

Try to Finish this compliance also, before time.

Please pay both employer share and employee share