Internal Control Document 1

Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX

DailyCompare the production orders in SAP on a daily basis for

top 10 variance items.

Weekly

Order types used are appropriate to the nature of

transactions (e.g. deliveries to be billed, free

samples, replacements against goods returned,

defective goods, etc.). ZFSO is used for CCE, FOC

supplies and appropriately approved through a

block & release strategy.

Compare the production orders (In SAP / ERP) with that

uploaded in CF2000E for the period under review.

Investigate into differences. (orders available in SAP/ERP

and not in CF2000e should be seriously looked into. Likewise

orders in CF2000e not available in SAP/ERP should get

special attention).

Weekly

Proof of delivery information is available - both

carrier's and customer's acknowledgement

(signed and dated). Wherever a shortage/excess is

noted on the deliver documents, is there a

procedure to trace the reasons for such

excess/shortages and initiate recovery if required,

from the freight carrier. Check the process to

ensure that goods are not diverted to other

customers inadvertently (or) intentionally to

provide unintended extended credit.

All failed lots or cheeses from Dyehouse and Finishing have

to be transferred to the FAIL storage location from the

production orders.

WeeklyGoods returned are properly recorded and stock

records promptly updated.

Check whether production is issueing GT to cost centre

other than approved cases.

Weekly

Orders received are checked against credit limits

& overdue prior to dispatch of goods and except

those that had been properly authorized; other

breaches are "stopped". Are these parameters

appropriately defined in SAP (or other systems)

and reviewed at periodic intervals?

WeeklyCheck delays between date of cheques/cash

collections from customers and date of deposits

into bank for EPZ customers only.

WeeklyCheck if there is any COD from customers which is

prohibited.

Monthly

Cut-off procedures are clearly identified and

strictly adhered to. What is the process to ensure

that all goods delivered are invoiced and all goods

invoiced are delivered?

Check the process followed for quality inspection for items

received on consignment basis.

All materials & services received are routed

through Purchase Orders and comply with the

Group guidelines. Any exceptions are identified

and escalated for approval (e.g. auditors’ fees,

royalty payments).

Payments to casual workers are

authorised and correctly

controlled.

Clear policy guideline exists with regard to

lease/hire of vehicles and other amenities given

to employees and periodic monitoring of such

expenses.

Is the Balance Sheet review process in place?

Are assets (including real estate) adequately

insured as instructed in the Capital

Expenditure Policy?

Monthly

All prices (ZPRO & ZPNT) are updated in SAP and

available for raising invoices? Is there

authorization matrix with regard to the gross

margins to be earned. Wherever sales are made

to GKA customers, are GKA price lists available to

confirm that prices charged are appropriate?

Is there a database of items which were rejected due to

defect (or quality complaints) and the actions taken to close

them (e.g. replacements received/credit notes issued by

vendor).

Purchase invoices, GRN and orders are recorded

and matched.

All deductions are authorised and

calculated correctly.

Pool vehicle usages are restricted for business

purpose only and log books are properly

maintained.

Are Control accounts in agreement with subsidiary

ledger balances.

Monthly

Access to change rates/terms at the time of order

entry is restricted and appropriately authorized.

YPCM Report is generated on a monthly basis to

review all changes made at the order level and

appropriately authorized as per authority matrix.

Are all cycle count & physical stock take differences posted

into SAP only after approval through a park and release

strategy? Is the access to post stock adjustments restricted?

Purchase ledger is reconciled at least monthly to

the purchase ledger control in the nominal

ledger.

Control accounts are reconciled

monthly for net pay, statutory

deductions such as PF, tax etc.

Monitoring fuel consumption of company

provided vehicle including pool cars.

Are suspense accounts, Inter Office balances etc.

periodically reconciled.

MonthlyReasons for credit notes are analysed and

exceptions are reported to management.

The level of blocked stocks should be reviewed on a weekly

basis. Stocks should be blocked due to following reasons

only:

- Returns from customers during quality check;

- Inventory differences identified but not processed;

Check for double payment/invoicing.All statutory deductions are paid

in line with Government policy.

All employees’ related expenses (including

MDs) are approved as per one up principle and

expenses approval policy.

Other debtors and prepayments are reviewed

monthly and are fully realizable and appropriate

documents are available (wherever required) to

substantiate its recoverability.

MonthlyOverdue account collection systems exist and are

strictly adhered to. Supplies to overdue customers

are strictly regulated.

Confirm whether appropriate NRV provision is carried in the

books and complied with Group Policy requirements.

All non-statutory deductions are

paid on a timely basis and/or in

line with Group policy (e.g.

pension fund).

Business travel expenses must be incurred in

line with policy and any exceptions are

approved by MD.

Other creditors and accruals (e.g. Inbound &

outbound delivery, commissions, incentives,

discounts & rebates, etc.) are reviewed monthly and

are fully stated. Any excess accruals/amounts no

longer required are identified and reversed.

MonthlyConfirm that WIP value as per FICO is supported by open

production orders which are current and appropriately

valued.

All discontinued employees are

removed from payroll register and

bank instructions letter.

An aged creditor’s ledger is produced and reviewed

monthly.

MonthlyCheck whether all items are enabled for backflush and

manual backflush is disabled for movement type 261. All

issues to cost centre are appropriately approved.

Outstanding items in suspense and other clearing

accounts (GRIR & consignment clearing & Employee

Suspense) are current and valid.

MonthlyCompare the approved conversion factors with the factors

set in the SAP and inquire into differences (greater than

5%).

Provisions for known liabilities (e.g. bad and doubtful

debts, customers claims, irrecoverable VAT, etc.) are

adequate, comply with Group/Division policy and

regularly reviewed.

Sales & Credit Control Material Management Purchasing Payroll HR General Accounting Fixed Assets & CAPEX

MonthlyInquire whether an input-output reco is performed on a

monthly basis. Independently compute the waste.

Are all known expenses/liabilities accrued/provided

for while preparing the unit results.

Monthly

Compare order quantity with production quantity. In case of

MTO, ensure that excess production is considered for

dormancy / slow moving provision.

Bank reconciliation is prepared and reviewed

regularly with explanation of unreconciled items.

QuarterlyOutstanding debts are fully supported by relevant

sales documentation (invoices, despatch notes).

Monitoring of OTV to check multiple purchase

are not being done from them.

Employee insurance such as

medical & life coverage premium

is calculated correctly and

updated for all employees.

Have all local statutory accounts/tax filing deadline

been met.

Any missing assets are appropriately charged

off after such investigation and approvals.

Quarterly

Unadjusted credits (collections, credit notes) are

periodically reviewed and matched against the

customer dues to reflect current and correct

status of the customers’ balances.

Supplier statements reconciled & differences

actioned.

QuarterlyAre prices negotiated for MuM linked to the

cost of base raw materials and inflation thereof?

QuarterlyAre purchases following three quotations

principle?

Quarterly

Any shipment received other than by sea route

(Air, courier, etc.) are appropriately approved as

per the authority matrix, after appropriate

review. Are all freight transactions

substantiated by a freight contract (inward – as

per group negotiated terms) and outward (as

per local contracts)?

QuarterlyEvaluate open PO and resolve long pending

cases.

Quarterly

Where suppliers' credit is taken, it is evaluated

against alternative funding cost and appropriate

advice is sought before incurring such additional

costs re advance to suppliers should be

restricted.

QuarterlyVendor background data are updated and

reviewed for accuracy.

Half yearly

Credit limits are regularly reviewed as per Group

Credit Policy (twice a year review) and changes are

properly authorised. Credit limits are aligned to

average sales for past 12 months and forecast

sales.

Physical stock count is done twice a year as per group

norms. Insure that count is done by a multifunctional team,

instructions have been issued, and count sheets do not

contain quantity. Enquire into the differences and whether

the explanations sound reasonable.

PO authorization matrix defined in SAP for

approval of purchase orders is in line with local

authorization matrix within the ambit of

delegation of authority (DOA) matrix issued by

Group. How does one ensure that the purchase

orders are not split to violate authorization

limits?

All pay changes are approved and

aligned with policy

Code of business conduct has been signed as

required by Group HR policy and conflicts If any

have been disclosed & appropriately actioned

by Unit?

Leased assets are separately identified and recorded.

Group cut-off levels are observed for

capitalisation of small value items and spare

parts. SAP functionality is used for monitoring

stocks at the same time writing off low value

assets.

Half yearly

Customers’ credit limits > $200k are approved as

per Group Credit Policy prior to posting these

credit limits in SAP (or other systems). Also data

on credit limit and balances >$200k and overdue

in those accounts are reported in BCS on a

monthly basis.

A supplier database is maintained and regular

suppliers are periodically evaluated for price,

delivery and quality. The evaluation process

should be evidenced. All items have multiple

sources of supply and in case of single source,

action plans are in place to address supply

disruption and is flagged off in Risk

Questionnaire.

Holiday pay provisions are

adequate.

Systems are adequate to monitor funds

committed (e.g. POs, contracts) and estimate

total project cost to assure early warning of

potential overruns or scope changes and

provide the basis for a supplemental

authorisation request before authorised

funds are fully expended.

Half yearlyIs purchase committee is functioning as per ToR

including location based committee?

Fund management such as

accounts preparation, balance

circulation etc of PF/WPPF/SAF

are properly done and updated.

Capital WIP accounts are periodically

reviewed and followed up with user

departments for timely capitalization and

providing depreciation.

Half yearlyPayment terms are optimised. Access to change

credit terms at the time of PO creation or

Invoice Verification (MIRO) is restricted.

Provision for payroll related costs

are adequate such as

PF/Gratuity/WPPF/SAF/Insurance

etc.

Formal procedures have been defined for

asset disposal (such as, obtaining competitive

quotes, regulatory approval, internal

approval etc) and are followed.

Half yearly

Half yearly

AnnualPayroll accounting captured all

payroll related costs appropriately

to reflect correct employee costs.

All assets are marked/tagged with the asset

number corresponding to that shown in the

fixed asset ledger.

AnnualImpairment test is done annualy to comply

IAS 36.

Daily

Weekly

Weekly

Weekly

Weekly

Weekly

Weekly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Costing Treasury Accounts Payable Accounts Receivable Regulatory

Additive costs are captured in SAP to

reflect real price variances (freight, duty

and C&F charges).

What is the net exposure? if it is more

than US$ 2.5 million, have you hedged

your net forex exposure?

Supplier statements are reconciled to the

creditors ledger and the reconciliations are

checked by senior financial management.

Are all customer bills of exchange discounted with

recourse added back to debtors.

All price & manufacturing variances

(including revaluation reserve) are

appropriately capitalized (or charged to

results) as per FIFO template prescribed

by Global Management Accounting

Team.

For treasury deals, have you obtained

multiple quotes prior to finalization of

the deal?

Where sales are given away free, the costs needs to

be recognized in variable SDA costs.

Spare parts older than 2 years are

written off from the book

“Aged” lists of debtors to be produced at least

monthly

Provisions for obsolete, slow-moving

stocks and NRV basis are adequate,

comply with Group/Division policy and

regularly reviewed.

Debtors overdue by more than 6 months must be

fully provided, including the associated output

tax/VAT. Provision is required against the output

tax/VAT regardless of whether or not it is expected

to be recovered (and should only be released when

actual recovery has been achieved).

Sales are recognized as per group policy.

Monthly

Monthly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Half yearly

Half yearly

Half yearly

Half yearly

Half yearly

Half yearly

Annual

Annual

Costing Treasury Accounts Payable Accounts Receivable Regulatory

Have bank mandates been updated to

remove all personnel who have left the

company?

Accounts payable should review debit

balance accounts at least quarterly and

request remittance of old debit amounts

outstanding. Such remittance should be

submitted directly to the cash function.

Review of pending legal

proceedings status

Is there any cash forecasting in

practice to minimise the instances of

outstanding borrowing and cash in

hand?

Tax, VAT & other fiscal

charge compliance

Review of remittance &

transfer pricing compliance

Original invoices should be used as the basis

for payment. Where the original invoice is

not available a copy can be used only if it is

properly authorized.

Review of bonded

warehouse operations

The suppliers invoice should be matched and

compared to an approved purchase

requisition, purchase order, and appropriate

receiving information before payment. The

absence of any of the referenced information

or discrepancies between the information

(e.g. price quantity etc.) must be resolved

before payment is made.

Review of labour law

compliance

Invoices for which a purchase order or

receiving report does not exist (e.g. non

production services, cheque requests, one-

time purchases etc.) must be approved by

management in accordance with the

company approval authorization limits before

payment.

Ensure withholding tax/VAT are charged as

per requirement of law.

Approved payments must be made within

the agreed terms.

Signed cheques ready for handover must be

delivered to persons independent of invoice

processing and maintenance of accounts

payable records.

Review of BOI activities

Details of test Frequency

Order types used are appropriate to the nature of transactions (e.g. deliveries to be

billed, free samples, replacements against goods returned, defective goods, etc.). ZFSO

is used for CCE, FOC supplies and appropriately approved through a block & release

strategy.

Weekly

Proof of delivery information is available - both carrier's and customer's

acknowledgement (signed and dated). Wherever a shortage/excess is noted on the

delivered documents, is there a procedure to trace the reasons for such

excess/shortages and initiate recovery if required, from the freight carrier. Check the

process to ensure that goods are not diverted to other customers inadvertently (or)

intentionally to provide unintended extended credit.

Monthly

Cut-off procedures are clearly identified and strictly adhered to. What is the process to

ensure that all goods delivered are invoiced and all goods invoiced are delivered.Monthly

All prices (ZPRO & ZPNT) are updated in SAP and available for raising invoices? Is there

authorization matrix with regard to the gross margins to be earned. Wherever sales are

made to GKA customers, are GKA price lists available to confirm that prices charged are

appropriate.

Quarterly

Access to change rates/terms at the time of order entry is restricted and appropriately

authorized. YPCM Report is generated on a monthly basis to review all changes made at

the order level and appropriately authorized as per authority matrix.

Monthly

Goods returned are properly recorded and stock records promptly updated. Monthly

Outstanding debts are fully supported by relevant sales documentation (invoices,

despatch notes etc.).Quarterly

Unadjusted credits (collections, credit notes) are periodically reviewed and matched

against the customer dues to reflect current and correct status of the customers’

balances.

Quarterly

Reasons for credit notes are analysed and exceptions are reported to management. Monthly

Credit limits are regularly reviewed as per Group Credit Policy (twice a year review) and

changes are properly authorised. Credit limits are aligned to average sales for past 12

months and forecast sales.

Half yearly

Customers’ credit limits > $200k are approved as per Group Credit Policy prior to

posting these credit limits in SAP (or other systems). Also data on credit limit and

balances >$200k and overdue in those accounts are reported in BCS on a monthly basis.

Half yearly

Orders received are checked against credit limits & overdue prior to dispatch of goods

and except those that had been properly authorized; other breaches are "stopped". Are

these parameters appropriately defined in SAP (or other systems) and reviewed at

periodic intervals?

Weekly

Check delays between date of cheques/PO/DD collections from customers and date of

deposits into bank for EPZ customers only. Weekly

Check if there is any COD from customers which is prohibited. Weekly

Responsibility Remarks Sign off SC role

Customer

service manager

Every Saturday report will be

circulated

Customer

service manager

First week of May'14 we will

circulate first report

Finance

Controller

Reporting to be completed by

3rd day of month closing

Credit

ControllerWeek 4 April'14

Credit

ControllerWeek 4 April'14

Customer

service manager

Further discussion and

alternative solution to be

developed

Complaint goods return report from CWH on a monthly basis

AR executive Week 3 April'14 SOP for goods return to share with CWH

Credit

ControllerReporting is in place

Credit

Controller

Reporting from 1st week

May'14 with the help of FC.

Credit

Controller

Quarterly review at local level

with documentation

Credit

Controller

Pending approval to be

obtained a s a p

Credit

Controller

Weekly report from May'14

1st week onward

BillingReporting from 16th April

onward

Billing

Add disclaimer to the DN

copy as printed that all

claim should be lodged

with 72 hours

GP margin issue to deal with CC…

Complaint goods return report from CWH on a monthly basis

SOP for goods return to share with CWH

Details of test T-code Frequency

Check the process followed for quality inspection for items

received on consignment basis.ME23N Monthly

Is there a database of items which were rejected due to defect

(or quality complaints) and the actions taken to close them (e.g.

replacements received/credit notes issued by vendor).

Monthly

Are all cycle count & physical stock take differences posted into

SAP only after approval through a park and release strategy? Is

the access to post stock adjustments restricted?

MB51/BW Monthly

Check whether all items are enabled for backflush and manual

backflush is disabled for movement type 261. All issues to cost

centre are appropriately approved.

Monthly

Compare the approved conversion factors with the factors set in

the SAP and inquire into differences (greater than 5%)SE16 - table MARM Monthly

Inquire whether an input-output reco is performed on a monthly

basis. Independently compute the waste.Worksheet exercise Monthly

Compare the production orders in SAP on a daily basis for top 10

variance items.COOIS/yprodvar Daily

Compare the production orders (In SAP / ERP) with that uploaded

in CF2000E for the period under review. Investigate into

differences. (orders available in SAP/ERP and not in CF2000e

should be seriously looked into. Likewise orders in CF2000e not

available in SAP/ERP should get special attention)

MB51 , movement types

261,262, ( for CF2000

materials) storage

location 45 and 201,202

for other chemicals used

( effluent plant etc.)

Weekly

All failed lots or cheeses from Dyehouse and Finishing have to be

transferred to the FAIL storage location from the production

orders.

MC.1 for storage

location FAILWeekly

Check whether production is issueing GT to cost centre other

than approved cases.

MB51 (movement type

201, 202)Weekly

Responsibility Remarks Sign off

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance

Plant Finance


PO authorization matrix defined in SAP for approval of purchase

orders is in line with local authorization matrix within the ambit of

delegation of authority (DOA) matrix issued by Group. How does

one ensure that the purchase orders are not split to violate

authorization limits?

Half yearly

Vendor background data are updated and reviewed for accuracy. Vendor master Half yearly

A supplier database is maintained and regular suppliers are

periodically evaluated for price, delivery and quality. The

evaluation process should be evidenced. All critical items have

multiple sources of supply and in case of single source, action

plans are in place to address supply disruption and is flagged off in

Risk Questionnaire.

Half yearly

All materials & services received are routed through Purchase

Orders and comply with the Group guidelines. Any exceptions are

identified and escalated for approval (e.g. auditors’ fees, royalty

payments).

Check for direct invoice

entryMonthly

Where suppliers' credit is taken, it is evaluated against alternative

funding cost and appropriate advice is sought before incurring

such additional costs re advance to suppliers should be restricted.

Quarterly

Evaluate open PO and resolve long pending cases

ME2L/Queries of User

Group Coats_RO_MD,

transaction SQ01/BW

report

Quarterly

Purchase invoices, GRN and orders are recorded and matched.

ME2L/ME80FN/ME23N/

YFI_GRIR/F.19/BW

report/MB5S

Monthly

Check for double payment/invoicingS_ALR_87012341/S_ALR

_87009879/78Monthly

Any shipment received other than by sea route (Air, courier, etc.)

are appropriately approved as per the authority matrix, after

appropriate review. Are all freight transactions substantiated by a

freight contract (inward – as per group negotiated terms) and

outward (as per local contracts)?

Quarterly

Is purchase committee is functioning as per ToR including location

based committee?Half yearly

Are prices negotiated for identified MuM linked to the cost of

base raw materials and inflation thereof?MCE3 Quarterly

Are purchases following three quotations principle? Random basis Quarterly

Purchase ledger is reconciled at least monthly to the purchase

ledger control in the nominal ledger.F.42 Monthly

Supplier statements reconciled & differences actioned. F.42 Quarterly

Payment terms are optimised. Access to change credit terms at

the time of PO creation or Invoice Verification (MIRO) is

restricted.

BW/SAP Half yearly

Monitoring of OTV to check multiple purchase are not being done

from them.SAP Quarterly


FM

PM

There are gaps exist in SAP. From now

onward Musfiq will be responsible for

updating all backgraond data. All data will

be updated by Q3 2014.

PM

FM

FM

PM & FMWe will get a report and follow up by end of

April'14.

PM & FM GR/IR report to be generated every month end. Process to simplified

FM

Commercial

ManagerApril'14 end

FD

PMPlastic negotiation has been done, card

board will be done by end of this year

PMPR comparative report to be generated

quarterly

FM

FM

FM

PM April'14 end

Details of test Frequency Responsibility

Payroll accounting captured all payroll related costs

appropriately to reflect correct employee costs.Annual FM

All pay changes are approved and aligned with policy Half yearly COMBEN

Payments to casual workers are authorised and correctly

controlled.Monthly COMBEN

All deductions are authorised and calculated correctly. Monthly FM

Control accounts are reconciled monthly for net pay,

statutory deductions such as PF, tax etc.Monthly COMBEN

All statutory deductions are paid in line with Government

policy.Monthly COMBEN

All non-statutory deductions are paid on a timely basis and/or

in line with Group policy (e.g. pension fund).Monthly COMBEN

Holiday pay provisions are adequate. Half yearly COMBEN

Employee insurance such as medical & life coverage premium

is calculated correctly and updated for all employees.Quarterly COMBEN

Fund management such as accounts preparation, balance

circulation etc of PF/WPPF/SAF are properly done and

updated.

Half yearly COMBEN/Finance

Provision for payroll related costs are adequate such as

PF/Gratuity/WPPF/SAF/Insurance etc.Half yearly FM

All discontinued employees are removed from payroll register

and bank instructions letter.Monthly COMBEN

Code of business conduct has been signed as required by

Group HR policy and conflicts If any have been disclosed &

appropriately actioned by Unit?

Half yearly HR

Clear policy guideline exists with regard to lease/hire of

vehicles and other amenities given to employees and periodic

monitoring of such expenses.

Monthly HR

Pool vehicle usages are restricted for business purpose only

and log books are properly maintained.Monthly ADMN

Monitoring fuel consumption of company provided vehicle

including pool cars.Monthly ADMN

All employees’ related expenses (including MDs) are

approved as per one up principle and expenses approval

policy.

Monthly COMBEN

Business travel expenses must be incurred in line with policy

and any exceptions are approved by MD.Monthly ADMN

Remarks Sign off

GL input, Reconciliation with Salary Sheet.


General Accounting:

Balance Sheet review process is in place once in a month Monthly

Are Control accounts in agreement with subsidiary ledger balances. GL Monthly

Are suspense accounts, Inter Office balances etc. periodically reconciled. GL Monthly

Other debtors and prepayments are reviewed monthly and are fully

realizable and appropriate documents are available (wherever required)

to substantiate its recoverability.

GL Monthly

Other creditors and accruals (e.g. Inbound & outbound delivery,

commissions, incentives, discounts & rebates, etc.) are reviewed monthly

and are fully stated. Any excess accruals/amounts no longer required are

identified and reversed.

GL Monthly

An aged creditor’s ledger is produced and reviewed monthly. Monthly

Outstanding items in suspense and other clearing accounts (GRIR &

consignment clearing & Employee Suspense) are current and valid.

ME23N/YFI

_GRIR/F.19/

MB5S

Monthly

Provisions for known liabilities (e.g. bad and doubtful debts, customers

claims, irrecoverable VAT, etc.) are adequate, comply with Group/Division

policy and regularly reviewed.

Monthly

Royalty and GKA commissions are accounted on cash basis as per group

guidelines, except at the year end when it should be accrued and

reconciled as part of schedule J reconciliation. Any unbranded items sold

and whether it is excluded for royalty calculations.

Quarterly

Leased assets are separately identified and recorded. Half yearly

Are all known expenses/liabilities accrued/provided for while preparing

the unit results.Monthly

Have all local statutory accounts/tax filing deadline been met. Quarterly

Bank reconciliation is prepared and reviewed regularly with explanation

of unreconciled items.

Excel

workingsMonthly

Fixed assets & CAPEX:

Group cut-off levels are observed for capitalisation of small value items

and spare parts. SAP functionality is used for monitoring stocks at the

same time writing off low value assets.

Half yearly

All assets are marked/tagged with the asset number corresponding to

that shown in the fixed asset ledger.Annual

Systems are adequate to monitor funds committed (e.g. POs, contracts)

and estimate total project cost to assure early warning of potential

overruns or scope changes and provide the basis for a supplemental

authorisation request before authorised funds are fully expended.

Half yearly

Capital WIP accounts are periodically reviewed and followed up with user

departments for timely capitalization and providing depreciation.

AUC from

Y_FAMHalf yearly

Formal procedures have been defined for asset disposal (such as,

obtaining competitive quotes, regulatory approval, internal approval etc)

and are followed.

Half yearly

Any missing assets are appropriately charged off after such investigation

and approvals.Quarterly

Impairment test is done annualy to comply IAS 36.Excel

workingsAnnual

Are assets (including real estate) adequately insured as instructed in the

Capital Expenditure Policy?Monthly

Costing:

Additive costs are captured in SAP to reflect real price variances (freight,

duty and C&F charges).Monthly

All price & manufacturing variances (including revaluation reserve) are

appropriately capitalized (or charged to results) as per FIFO template

prescribed by Global Management Accounting Team.

y_cd2_8900

0030/BW

report

Monthly

Provisions for obsolete, slow-moving stocks and NRV basis are adequate,

comply with Group/Division policy and regularly reviewed.BW report Monthly

Activity costs calculation and run in SAP in time. Annual

Treasury:

What is the net exposure? if it is more than US$ 2.5 million, have you

hedged your net forex exposure?Monthly

Is there any cash forecasting in practice to minimise the instances of

outstanding borrowing and cash in hand?Quarterly

For treasury deals, have you obtained multiple quotes prior to finalization

of the deal?Monthly

Have bank mandates been updated to remove all personnel who have

left the company?Quarterly

Payable:

Original invoices should be used as the basis for payment. Where the

original invoice is not available a copy can be used only if it is properly

authorized.

Half yearly

The suppliers invoice should be matched and compared to an approved

purchase requisition, purchase order, and appropriate receiving

information before payment. The absence of any of the referenced

information or discrepancies between the information (e.g. price quantity

etc.) must be resolved before payment is made.

BW report Half yearly

Invoices for which a purchase order or receiving report does not exist

(e.g. non production services, cheque requests, one-time purchases etc.)

must be approved by management in accordance with the company

approval authorization limits before payment.

Half yearly

Ensure withholding tax/VAT are charged as per requirement of law.S_P00_0700

0134Half yearly

Approved payments must be made within the agreed terms. Half yearly

Signed cheques ready for handover must be delivered to persons

independent of invoice processing and maintenance of accounts payable

records.

Half yearly

Supplier statements are reconciled to the creditors ledger and the

reconciliations are checked by senior financial management.F.42 Monthly

Accounts payable should review debit balance accounts at least quarterly

and request remittance of old debit amounts outstanding. Such

remittance should be submitted directly to the cash function.

F.42 Quarterly

Accounts Receivable:

Sales are recognized as per group policy. Monthly

Are all customer bills of exchange discounted with recourse added back

to debtors.Monthly

Where sales are given away free, the costs needs to be recognized in

variable SDA costs.

BW report

of FOCMonthly

“Aged” lists of debtors to be produced at least monthly Monthly

Debtors overdue by more than 6 months must be fully provided,

including the associated output tax/VAT. Provision is required against the

output tax/VAT regardless of whether or not it is expected to be

recovered (and should only be released when actual recovery has been

achieved).

Excel

workingsMonthly


FC

FC

FC

FC

FC

Management Accounting Manager


FC

FC

FM

FC

FM

FC


FM

FM

FM

FM

FM

FM

FM





FC

FC

FC

FC

FM

FM

FM

FM

FM

FM

FM

FM

FC

AR executive

FC

AR executive

FC

Details of test Frequency Responsibility Remarks Sign off

Review of bonded warehouse operations Half yearly FM

Review of BOI activities Annual FM

Review of remittance & transfer pricing compliance Quarterly FM

Tax, VAT & other fiscal charge compliance Quarterly FM

Review of labour law compliance Half yearly HR

Review of pending legal proceedings status Quarterly HR

Status review of different type of agreements Monthly FM

Quarterly

Monthly

Order No of rep Original or der Status Date Return stat

Rep deliverd 4/4/2014 Not returned

Documents

Internal Control Document 1