Internal Audit that improves control, compliance and business performance

Internal audit is not just about checking vouchers or finding errors. It is a structured review of processes, risks, controls, compliance, and reporting systems so that management can take better decisions with confidence.

At MLG Associates, we conduct internal audits with a practical business approach. We help management identify control gaps, process weaknesses, compliance risks, inefficiencies, leakages, and reporting issues, and then recommend workable solutions that fit the size and nature of the business.

What MLG Associates does

MLG Associates provides internal audit and advisory support for businesses that want stronger systems, cleaner processes, better compliance, and more reliable information for management review. Your existing website already presents MLG as a firm offering internal audits, risk assessment, accounting outsourcing, statutory audit, GST consultancy, and business advisory support.

Our internal audit scope typically covers:

• Review of accounting systems and internal controls.

• Verification of business processes, approvals, and maker-checker controls.

• Audit of purchase, sales, expenses, inventory, cash, banking, and statutory records.

• Identification of risk areas, revenue leakages, weak controls, and process inefficiencies.

• Review of compliance with GST, TDS, Companies Act requirements, internal SOPs, and management policies.

• Assessment of documentation, supporting records, reconciliations, and reporting discipline.

• Practical recommendations for strengthening systems and reducing errors, fraud risk, and non-compliance exposure.

What makes MLG useful to clients

We do not treat internal audit as a routine checklist exercise alone. MLG’s positioning on its website emphasizes process advisory and feasible business solutions, which means the focus is on identifying real issues and helping management improve operations, not merely reporting exceptions.

This is especially useful for owner-managed businesses, growing companies, manufacturing units, service businesses, and entities that need stronger oversight across finance, compliance, inventory, operations, and branch controls.

Legal requirements in India

Under Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014, internal audit is mandatory for specified classes of companies. This includes every listed company.

Internal audit is also mandatory for certain unlisted public companies if, during the preceding financial year, they meet any of these thresholds: paid-up share capital of Rs. 50 crore or more, turnover of Rs. 200 crore or more, outstanding loans or borrowings from banks or public financial institutions exceeding Rs. 100 crore at any point of time, or outstanding deposits of Rs. 25 crore or more at any point of time.

For certain private companies, internal audit is applicable when turnover is Rs. 200 crore or more during the preceding financial year, or when outstanding loans or borrowings from banks or public financial institutions exceed Rs. 100 crore at any point of time during the preceding financial year.

Listed entities are also subject to stronger governance and audit committee oversight under SEBI’s Listing Obligations and Disclosure Requirements framework, which places significant emphasis on financial reporting oversight, internal controls, and review mechanisms.

In regulated sectors, additional requirements may apply. For example, RBI-regulated NBFCs can be subject to risk-based internal audit expectations depending on category and size, especially for deposit-taking NBFCs and larger non-deposit-taking NBFCs.

Why businesses opt for internal audit even when not mandatory

Many businesses voluntarily appoint internal auditors even when the law does not require it, because internal audit helps management detect weaknesses before they become financial loss, compliance default, fraud exposure, or operational disruption.

A well-executed internal audit can help in improving control over cash and bank transactions, inventory, procurement, expenses, receivables, statutory compliance, branch operations, and MIS quality. It also supports promoters and senior management in building discipline, accountability, and scalable systems.

Industries and businesses we can support

MLG Associates can support internal audit assignments for:

• Manufacturing companies.

• Trading and distribution businesses.

• Service companies and growing private businesses.

• Branch-based and multi-location operations.

• Companies needing process review, risk assessment, or compliance strengthening.

Engagement approach

Our internal audit approach is practical and management-oriented. We understand the business process, identify key risk areas, review records and controls, discuss issues with the concerned team, and submit observations with actionable recommendations for improvement.

Where needed, we can also help businesses move beyond issue reporting into control redesign, process strengthening, documentation improvement, and ongoing compliance monitoring.

Need an Internal Audit review for your business?

Whether internal audit is legally applicable to your company or you want a stronger control framework voluntarily, MLG Associates can help you review systems, identify risks, and improve business processes with practical recommendations.

Contact MLG Associates to discuss internal audit requirements, scope, frequency, and a suitable review plan for your business.

 

for Day to Day Accounting, the Ledger Accounts remain the same. Usually they are

TDS Payable- Salary

TDS Payable- Contractor

TDS Payable- Professional

TDS Payable- Rent

TDS Payable- Interest

TDS Payable- Commission and so on

There is no change in the names of the sections.

 

Accounting will also continue as it is, as it was.

Accrual on each Purchase voucher / Service Voucher : As it is.

Ledger Account in Trial balance : As it is.

5. Payment of TDS “online to Govt”

 

As since 2012 CBDT Notification, you can continue single Payment of all TDS sections in single Challan. Keep that in TDS Control Account / Buffer Account. At time of each monthly closing / Quarterly Closing.. Transfer all the payables to the TDS Control account / Buffer Account.

Exactly same as in past years

 

6. Filing of TDS Return

 

Use Webtel E TDS Filing Software. Helps you in Smoother compliance work. https://webtel.in/tds-filing-software ). Softwares like Finsys ERP, give excel output for ease in filing the TDS returns using Webtel.

 

Webtel has done the internal programming for the Required Automation. Its Robust Planning allows it to use the Consolidated TDS Challan amongst Various sections. No worries.

 

Exactly same as in past years.

 

6. Action Items for your Accounts Team

Do Not Mix Salary & Non-Salary Challan Amount …: While you can mix multiple non-salary codes in one challan, Salary (Sec 392) must always be paid via a separate challan, as it is reported in a different return (Form 138).

Webtel Updation : Ensure your Webtel software is updated to the FY 2026-27 (Tax Year 2026-27) This version is pre-configured to handle the mapping of your single challan to the 92 new numeric codes.

Webtel Adoption : If your TDS Software Still does not allow this facility to you… upgrade to Webtel.  https://webtel.in/tds-filing-software 

Form 168 Reconciliation: From this month onwards, tell your vendors to check Form 168 (which replaces the old Form 26AS). Their tax credits will now appear under these 4-digit numeric codes.

Final Word

The move to the Income Tax Act, 2025 is a structural shift, not a procedural hurdle. By maintaining the “Single Challan” approach suggested by Webtel, your business can avoid the administrative burden of generating dozens of small payments.

Webtel, Finsys and MLG Team are here to assist with your first “Form 140” filing under the new regime. Please contact your relationship manager for any specific queries.

Warm Regards

• Sangeet Kumar Gupta & Puneet Gupta, MLG Associates & Finsys ERP Team
• with Vijay Sahni, R. Kapoor & R Aggarwal : Directors Webtel Electrosoft
• Together as your Digitisation Experts

   

Section 393 … Income Tax Act.. Section Bare Act on Govt Website

https://www.incometaxindia.gov.in/w/section-393-5

And

All codes. List of Academic Purposes

https://razorpay.com/docs/payroll/tax-verifications/tax-codes/ and https://www.tdsman.com/downloads/TDS_and_TCS-rate-chart-2027.pdf

Joint Webtel Finsys Seminar ( Past event )

FINSYS – GST Seminar In Association With WEBTEL

More Pictures from joint Webtel Finsys Events click here

Finsys and Webtel  .. Always ahead in Digitisation

Feb to April are the months to clear the 43B(h) MSME payments…

As in last 2 years…… Be Alert …and do the needful

This article has Some ideas and Tips in MSME 43B(h) – for Tax audit, for Balance Sheet for Advance tax and for Income Tax

Alert dated 25th April-2026 at — 1 pm,

 

Current Status of 43B(h)- for FY 25-26

 

The LAW = Same as last year… There is no Change … as such… but now MSME Limit is now Rs 100 Crores… hence, more and more of your suppliers are now covered in MSME benefit scheme.

 

Section 43B(h): MSME ~ 45 Days Payment Rule.

This  provision mandates that payments for goods or services provided by MSEs must be settled within 45 days from the date of acceptance.

If businesses fail to meet this deadline, they will be at a risk to claim these payments as tax deductions.

1. So. Yes the Law is Real
2. Yes, unpaid MSME dues will be DISALLOWED
3. AND YOU WILL HAVE TO PAY TAX AT FULL RATE.. SAY 26% OR 34%
4. Yes, there was no relief
5. There was no amendment
6. Yes, 2024 and 2025 Income tax returns also went this way
7. Yes, MSME usually got a lot of payments from their customers this way
8. Yes, many companies had to pay steep taxes due to this section.
9. 

10. Nobody can save your company from accidental tax later .. if Govt “catches you” later on.

11. Have you made your Financial Budget to pay all eligible MSME vendor’s : Arrange Funds as soon as possible. Keep Buffer for new creditors, new invoices of upto 31st March 2026 also.

 

so, for all the Corporate Accountants, and Corporate Auditors, and MSME businessmen, both as receiver of funds and payer of funds, Get Ready for that time of the year…

1. Hope you have completed the work ?
2. Hope the vendor identification had been done ?
3. Hope your team had checkd Vendor MSME status on the Govt website ( that is the only evidence ), or on their invoices … keep that screenshot or PDF

1. Usually, all MSME vendors bills of 29-2-2025, already paid by 31st March or maximum, 15th April 2025…..

3. MSME vendors Bills upto 15th March 2026 are also paid between 20th and 30th April 2026.. 

5. MSME vendors Bills upto 31st March 2026  are also paid between  30th April and 10th May 2026. (Just to be safe)…

6. See this yourself.

7. Also remember to clear all the MSME dues…
8. Short cut :Vigilance point
9. SOP for future
10. 5th March by 5th April ( start the process by 30th day.. so that you are safe bye 45th day )
    10th March by 10 April
    15th March by 15th April
    20th Mar. by 20th April
    25th Mar by 25th April
    31st March… by 30th April( I have kept a Buffer )
11. 
12. If you are an MSME … you might have been benefited from this in the March payment wave, So, similarly, the WAVE continues

13. This is a benefit Govt is giving to MSME’s and if you are a MSME take this benefit from your customers….

14. Almost 4 Crores MSME are already registered and are claiming this benefit… are you taking this Benefit ???

Sent letters to all creditors ? Kept evidence ? Two rounds of emails is a must evidence. ?

Do you have letters or MOU with each MSME vendor, … with overriding clause for 45 days, irrespective of the PO’s and Invoices. ( get the format in the Google drive link below )

 

Three year MSME category Rule notification dt 18-10-2022.. Change of category upwards… you can take the benefit of previous classification for three long years. Yes you can. ( see notification in the Google drive link below )

1. Cheque Hand over   ( Cheque in Transit ?)……….? This idea can work only if you have 100% clear balance in your bank account… Else… It will not be acceptable. 

2. Money is coming automatically to most MSME’s .. every day… Congratulations, if you are the beneficiary too.

3. Hope the PSU’s also start paying in the same way. The PSU chief will be shocked with huge tax if he does not organise the payments to all the MSME vendors in time… this will create a new culture.

Google Drive link for the Powerpoint presentation , Copies of Letters, Emails, MOU.. as discussed in the Session by Mr Sangeet Kr Gupta. in the last Zoom seminar

MOU copy inside

 

43B(h) benefit ? 43B(h) action ? 43B(h) what to do ? 43B(h) safety ? 43B(h) annexure ? 43B(h) when to follow ? 43B(h)penalty? 43B(h)areyousafe?

How to check MSME reports in your ERP ? Example Finsys ERP ?

How to do this in Finsys ? Very simple… Just ask the accounts to take out the Vendor Outstanding report.. in Future date… say 1st May 2026… and see what will come as overdue on that date… all those invoices are fit to start processing.. so that you are safe.. by 1st May and so on….

Team at your service.. Contact us page

BUDGET 2026 – MLG & FINSYS ERP CLIENT UPDATE

Dear MLG / Finsys Patron, Budget speech just completed. Here’s what matters for YOUR business:

TAX UPDATE (Direct Tax):

✅ Corporate tax rates: UNCHANGED (22% continues)
✅ No new compliance burden on MSMEs
✅ Depreciation rates: No change
✅ Section 43B(h): Continues (MSME 45-day payment rule)
✅ March-end closing: Can proceed as planned
✅ Individual Tax Rates : New Regime : No Change.
✅ MAT : Not relevant for New Regime. Those in old regime, MAT rate further reduced to 14% as final tax
✅ Return Filing dates : New last date of 31st August created : for Non Audit Business cases & for Trusts
✅ TDS for Property : NRI cases.. made simpler
✅ Time to Revise return.. increased… now upto 31st March

WHAT’S COMING NEXT:

⏰ Finance Bill text (tonight): We shall Watch for hidden changes
⏰ GST/Customs announcements: Impact on raw material duty

ACTION BEFORE 15TH MARCH:

1️⃣ Run MSME Creditor Aging report (43B(h) compliance)
2️⃣ Pay final Advance Tax installment (15-Mar deadline)
3️⃣ Capitalize Capital WIP (depreciation planning)
4️⃣ Book Bonus/Incentive provisions (Section 43B compliance)

MARCH MIS FOCUS (Finsys MLG Clients):

Stock valuation accuracy (for March 31 closing)
Debtor confirmation letters & provision
Revenue recognition (special point for those in export and in Project industries )
MSME payment tracking (avoid disallowance)

MLG Finsys Support for Year-End:

•⁠ ⁠MSME payment tracking ( use automation in Finsys )
•⁠ ⁠Advance tax calculation module
•⁠ ⁠March closing checklist & alerts

Detailed note with updates and impact: By 8.30 PM today

Call for support: 9312608426 (MLG)
Tax advisory: MLG Associates team
No surprises in direct tax. Focus shifts to Business now.

Finsys ERP | MLG Associates | Integrated Accounting, ERP, BPO, MIS & Tax Solutions | www.mlgassociates.in | www.finsys.co.in |

 

Basic points, for Budget 2026. For Finsys and MLG Clients. …. in Simple language. … No hype, … No delay… Simple and To the Point.