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• Setting up Controls in Real Estate / Construction Business
Consult Construction is a consulting firm with all governance, compliance and IT related services related to the construction sector under one roof.
Focus Areas :-
Corporate GovernanceManagement AuditProject Budgeting and MonitoringIndirect Tax CompliancesCorporate TrainingInformation Technology and Allied ServicesISO Implementation
Core Team
Mr.Sandesh Mundra - Indirect Tax & Management AuditMr.S N Mundra - CompliancesMr.Samir Siddhpuria - VAT Mr.Philip Fernandes - Excise Mr.Dinesh Kavi - Labour LawsMs.Suman Mundra - Management AuditMr.Sanjay Christian - Management AuditMs Pooja Jajwani - IndirectTax Consulting
Authored - Technical Guide on “Business Controls, Monitoring and Internal Audit of Construction Sector”
Authored the technical Guide on “Business Controls, Monitoring and Internal Audit of Construction Sector” issued by ICAI in 2011.
One of our team members has been appointed to the three member National level Direct and Indirect Committee of Builder’s Association of India (BAI) for year 2014. Successful representation to the Ministry of Finance on service tax related issues on behalf of BAI.
Paper on “Accounting Controls in Construction Sector” chosen for publication in January, 2013 issue of National Journal of ICAI.
Paper on "Budgeting Challenges for construction sector" chosen for publication in August 2013 issue of National Journal of ICAI.
Our team members have acted as a speaker on various topics in seminars and study circle meets organised at Mumbai, Ahmedabad, Gandhinagar, Navsari, Jamnagar, Rajkot and Nadiad Branches and study circles of ICAI.
Our team members are Regular Column writers for Indian Construction (Journal of Builder’s association of India), CA Associaton Ahmedabad & web portals like Consult Construction.com & Consolidation of accounts.com
Our Team Achievements
Consult Construction is a consulting firm with all governance, compliance and IT related services related to the construction sector under one roof.
Focus Areas :-
Corporate GovernanceManagement AuditProject Budgeting and MonitoringIndirect Tax CompliancesCorporate TrainingInformation Technology and Allied ServicesISO Implementation
Challenges Involved Improper definition of
BOQ Lack of Control on Design
and material changes Material Reconciliation Commercial Decision
Making – Procurement Statutory Compliances Asset Management Schedule Management
Contractor Management Planning Cost Savings by
finding different ways to engage the inputs – Man, Material and Machine including Resource Management
Monitoring Fund Flow Legal Documentation
Controls required
A) Operational Controls:• Control over Labours• Control over Materials• Control over Equipment • Documentation and records • Timely accounts closure • Employee & Salary Structure• Quantity reconciliation of Contractor vs. Client billing• Material Reconciliation
Controls required
B) Financial & MIS: • Review of Budget vs. Actual performance• MIS of all departments
C) Taxation & Compliances: • Direct Tax• Indirect Tax• Labour Laws
Customer Management
• Structuring of Agreements to sale / Sale deeds
• Setting up Billing and Collection Cycle
• Dealing with Cancellations /Transfers
• Setting suitable structures for post construction maintenance
Appointing Contractors• Structuring of Tendering & B.O.Q.
• Letter of Indent
• Critical Work Order Clauses,Like - Defect Liability period, BG, Mob. Advance, Extra Items, Liquidity Damages, Rate Ecalation, Designing proper BOQ, etc.
Tracking Budget Variances Contractor cost
Material Cost
Equipment Cost
Overheads
Synchronisation of Account heads with Budgetary Heads
Store - Flow chart
MRN (Material Requisition Note)
Indent
Procurement - Quotation & PO
GRN (Goods Receipt Note)
Outward / Consumption
Data Entry & Record maintenance
Difficult Areas / Material Management
• Material Master • Procured Material Controls• Returnable Material Reco (FIM = Free Issue Material)
• Loan transactions• Outward Process• Control over loss of material• Physical verification process• Scrap Material & its Disposal
Other Areas- HR- Equipment- Accounts- Taxation- Other Compliances
Controls/Planning of Staff & Labour
Ghost Labour Working in both supply & measurementIncomplete & its recovery / Repay for Duplication of
workStaff Salary package & Project TransfersAttendance and Mess Controls at Site
Equipment Controls
Decision Making – Hire / Purchase
Control areas in both cases Hired & Own, like– Vehicle Report,– Fuel consumption analysis, Due dates of permits /
Insurance & Taxes etc..
Accounts
Decession of Accounting whether Centralized or Decentralized
Accounting with inventory
Appointment of proper local Consultants for Statutory compliances & Assessments i.e. VAT & Labour Law
Customized Controls in Books of Accounts – Tally / Any ERP
• Common chart of accounts (Technical vs. Financial)
• Inventory & Labour Masters• Defining BOQ items• Define Material inward process• Tracking Free Issue Material (FIM)• Linkage with MIS• Exceptional reporting
Tax Structuring – Indirect Taxes
• Structuring of Agreement• Payment Schemes • Point of Taxation• Sub-Contractor Planning• Avoid Tax Overlap • Reverse Charge Mechanism• Procedural Issues
Labour Laws
Compliances of basic following laws like –• Labour License• Minimum Wages & Bonus • EPF• Workmen Compensation Insurance / ESIC• Labour Cess• Bonus • Labour Welfare • Child & Women Labours etc..
Project Closure
• Closing Reconciliations• Quality Controls• Preparation of final bills• NOC from all Departments• Documentation of Variations• Documentation of Disputes• Future Learning
In House Training
• Educating the users about the need to have better systems
• Upgrading the level of Knowledge that the users possess
• Ensuring smoother coordination among various stake holders
• Evaluation
