Internal Financial Controls Set up
Section 134(5)( e) of the 2013 act requires that in case of listed companies, Directors’ Responsibility Statement should, among other matters, state that directors had laid down internal financial controls and such financial controls are adequate and were operating effectively Rule 8(5)(viii) of the Companies Rules, 2014 Requires the board report of all companies to state the details in respect of adequacy of internal financial controls with reference to the financial statements also Section 143(3)(i) of the Act requires the auditors’ report to state whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
ICFR therefore is 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
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company
• 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 authorisations of management and directors of the company
• provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Conversion of financial statement in compliance with US GAAP and IFRS
IFRS at present can be viewed as the most important initiative in the financial reporting standards at the global podium. Approximately 120 nations and reporting jurisdictions permits/ requires IFRS for domestic listed companies, while over 90 countries have fully conformed to IFRS as promulgated by the International Accounting Standards Board (IASB) and include a statement acknowledging such conformity in their audit reports. We have qualified and trained resources to assist in IFRS convergence, balancing both, the short term and the long term objectives of the businesses.
The common set of generally accepted accounting principles, standards and procedures that companies use to compile their financial statements. GAAP is a combination of authoritative standards (set by the policy board) and simply the commonly accepted ways of recording/ reporting accounting information. At AMJC, we have accumulated the expertise needed to conduct US GAAP Conversion.
Ind AS Convergence Services
International Financial Reporting Standards (IFRS) are increasingly being recognised as Global Reporting Standards for financial statements. IFRS includes IAS (until they are replaced by any IFRS). As global capital markets become increasingly integrated, many countries are moving to IFRS. More than 100 countries such as European Union, Australia, New Zealand and Russia currently permit the use of IFRS in their countries. ICAI / MCA has also expressed their view that IFRS should be adopted in India for the public interest entities such as listed entities, banks and insurance entities and large-sized entities.
What We Do
• IFRS convergence
o Providing assistance to Client
In analysis of impact on convergence to IFRS
In compilation / quantification of impact on convergence to IFRS
In deciding and designing solutions for implementation
In staff training
In preparation of IFRS financial statements
• Agreed-upon Procedures
The objective of such service is to carry out procedure of audit nature as requested by the client and to report on factual findings. No assurance is provided while performing agreed-upon procedures and the client must form its own conclusion from the report on factual findings.
• Compilation of financial information
The objective of such service is to make available accounting expertise to the client to collect financial information as opposed to audit or review. Though no assurance is provided, the client gets the benefit of professional skills and trained man-power available with us.
At AMJC our bookkeeping services aims at cost reduction and cost management for our clients. A specialized team of accounting professionals have been designated to cater customer’s requirements and processes.
Some of the bookkeeping services that we offer are:
• AR/AP services
• Bank account reconciliation
• Invoicing Processing Services
• Manual Journal Entry Services
• General ledger maintenance
• Expenses ledger maintenance
• Preparing ageing reports & summaries
• Preparing financial statements
• Trial balance services
• Preparing income statements (Profit & Loss)
Fixed Assets Register/ Physical verification Report
Asset is the backbone of any business. Any organization acquire different types of assets that are being used for production of the finished goods, assistance in sale of goods, better atmosphere to their employees etc. Value of all assets including fixed assets and current assets already consists of a major part of total business, hence it is necessary that those assets should be checked and controlled in such a way that these assets can be used optimally and efficiently for long period and people can be stopped from misuse thereof. Generally organization do better control on their cash assets, debtors but reluctant towards fixed assets and sometimes for inventory.
AMJC with its unique and innovative technique helps organization to identify all fixed assets, their valuation, recording and creating of fixed assets register. AMJC is providing specific solutions and process to the organization which ensure continuance updating of fixed assets registers, better tracking of assets spread into different location and fix responsibility among users. AMJC is providing solutions for all type of assets (e.g. Infrastructure Assets (Road, Drain, Lake & Pond, Public Lighting, Sewerage Systems etc.) mainly found in municipal organizations, Intangible Assets (Goodwill, Patents, Copyrights, Trademark etc.), IT assets (Softwares, Hardware, Server, Networking Equipments), Research equipments (Lab equipments, precious consumables) etc.
Account receivables are the money receivable in some future date for the credit sale of goods and services at present. These days, most business transactions are in credit. Most companies, when they face competition, use credit sales as an important tool for sales promotion. As a sales promotion tool, credit sale enhances firm's sales revenue and ultimately pushes up the profitability. But after the credit sale has been made, the actual collection of cash may be delayed for months. As these late payments stretch out over time, they may cause substantial drop in a company's profit margin. Since the extension of credit involves both cost and benefits, AMJC helps in measuring them to determine the ultimate effect of credits sales and manage them in the best possible manner.
Our experienced trusted advisors can help with a variety of complex business issues and transactions. With our know-how, we can make recommendations for your organization’s finance function efficiency, articulate effective employee benefit programs or realize value out of large volumes of data.