1. 1
Proposal to provide Risk based internal audit
and legal compliance services
Riskpro India

2. 2
Make Decisions……
Take Risks…….......
Your partner in
Risk Management /
compliance / audit
Experience Success!

3. 3
Background - Who is Riskpro… Why us?
ABOUT US
 Riskpro is an organisation of member firms
around India devoted to client service
excellence. Member firms offer wide range
of services in the field of risk management.
 Currently it has offices in three major cities
Mumbai, Delhi and Bangalore and alliances
in other cities.
 Managed by experienced professionals with
experiences spanning various industries.
MISSION
 Provide integrated risk management
consulting services to mid-large sized
corporate /financial institutions in India
 Be the preferred service provider for
complete Governance, Risk and Compliance
(GRC) solutions.
VALUE PROPOSITION
 You get quality advisory, normally delivered
by large consulting firms, at fee levels
charged by independent & small firms
 High quality deliverables
 Multi-skilled & multi-disciplined organisation.
 Timely completion of any task
 Affordable alternative to large firms
DIFFERENTIATORS
 Risk Management is our main focus
 Over 200 years of cumulative experience
 Hybrid Delivery model
 Ability to take on large and complex projects
due to delivery capabilities
 We Hold hands, not shake hands.

4. 4
Riskpro’s Network Presence
New Delhi
Mumbai
Bangalore
Ahmedabad
Pune
Agra
Salem
Kolkata
Hyderabad
Chennai
Jaipur

5. 5
Your requirements
● You require a firm with not only demonstrable skills and experience in
your sector, but also the ability to deliver seamless compliance and
business support services that match your development plans;
● You also wish to work with a firm that is personable and easy to deal
with. While we operate in an environment that demands honed
technical ability and a degree of formality, arising from the
professional standards we observe, we regard ourselves as a flexible
and responsive team that has client relationships at its heart; and
● You, also wish to ensure that your auditors, consultants and advisers
are appropriate for tomorrow's environment.

6. 6
Our commitment
We commit to you that we will:
● dedicate our best resources to ensure that your needs are met;
● provide an effective, efficient and smart consulting services;
● adhere to timeliness and reporting deadlines;
● provide constructive suggestions on improving processes and
controls;
● work closely with your management in a co-operative environment;
and
● keep you regularly updated on significant changes in regulatory,
accounting and other compliance sectors.

7. 7
Our differentiating factors
● Adding value to the client and protecting their business is paramount and our
logo symbolizes that bond of protection
● Unique combination of International, senior, hands on industry experience,
across all areas of the requirement.
● Mature and deep domain expertise, along with current involvement in strategic
business growth activity.
● Strengths in relation to Business Model and Objectives - Track Record of
Ethical Practice
● Strengths in relation to Implementation Plan - Proven Success in taking
businesses from Vision to Reality through tactical Implementation across all
aspects of the plan
● Strengths in relation to Requirements- Track Record in geographical,
Professional and Business areas.
● Value for money
● Building enduring relationships with all our clients as a trusted business
partner

8. 8
Riskpro Clients Our Clients
*Any trademarks or logos used throughout this presentation are the property of their respective owners
Banking/
Insurance
Corporate
MNC
Banking
Intl
Consulting
IT / Others

9. 9
Team Experiences Our Experiences
Any trademarks or logos used throughout this presentation are the property of their
respective owners
Our team members have worked at world class Companies

10. 10
Quality assured
We place great emphasis on quality control and quality management.
Our quality process
Our Quality Process is designed to provide a quality
culture, to analyze the processes used to hire, train and
retain staff, to develop and deliver services to our clients
and to administer our own business.
Skills and competence
Personnel in the firm adhere to the standards of
independence, integrity, objectivity and confidentiality.
The firm is staffed by personnel who have attained, and
who maintain, the skills and competence required to
enable them to fulfill their responsibilities. To assist in
maintaining these skills the firm has procedures for:
 training of staff at all levels, through both formal
courses and on-the-job experience;
 continuing professional education;
 assigning work to personnel who have the degree
of technical training and proficiency required in the
circumstances; and
 evaluating the performance of staff and counseling
staff as to their progress and career opportunities.
`
CONTINUOUSIMPROVEMENT
Leadership
andQuality
Culture
Information
Analysis and
Planning
Human
Resource
Processes
External
Service
Processes
Business
Processes
Service
Delivery
Measure
Client
Satisfaction
andBusiness
Results
Direction and supervision
The firm provides for appropriate direction and
supervision at all levels, together with appropriate
consultation procedures, to give reasonable assurance
that the work performed meets the highest standards.
We:
 employ and retain only those persons with the
intelligence, education, character and diligence
necessary to assume professional responsibility;
 assign engagement responsibility to only those
persons sufficiently trained and supervised to
discharge those responsibilities;
 not accept or continue a client relationship in
circumstances incompatible with the firm’s
integrity;
 adopt promptly policies necessary to realise the
objective of professional standards and applicable
regulatory requirements;
 maintain policies to ensure that the firm and its
professionals are free of conflicts of interest and
that professional excellence is achieved;
 not tolerate any act that can damage the firm’s
credibility.
Confidentiality
We are well aware of the importance that you place on
confidentiality requirements and we have a proven
record of maintaining a strict code of confidentiality.
Our firm policy requires that affairs of clients be
confidentially kept at all times.

11. 11
Clear and continuous communication
At Riskpro India, open and honest communication is a Core Value. Our experience
leaves us in no doubt that a successful relationship is based on trust and candid,
proactive communication.
Regular and open two-way communication is fundamental to all aspects of our service
to you. As an initial priority, we will agree with you an annual Communication Plan for
all our key meetings. This will help ensure there are formal and informal opportunities
for all key stakeholders to be kept informed of the issues that matter, and that there will
be “no surprises”.
Key objectivesMeeting/stakeholders
 Present annual audit plan
 Report key findings
 Updated assessments of key risks, including emerging risks
 Discuss new regulatory and corporate governance requirements
Bi-annual meetings (or as requested) with the
Board / Audit Committee
 Discuss strategy
 Discuss operational matters and performance
 Raise and consider emerging issues
Quarterly meetings with the Chief Executive
Officer
 Discuss operational matters and financial performance
 Discuss implications of changes to the reporting and internal control framework
Regular meetings with Head of Financial
Control
 Discuss operational and business mattersMeetings with operational management

12. 12
Our fees
Our aim is to build a long-term relationship with you. We believe that the essence of
building such a relationship is the quality of the service and expertise that we provide.
We also believe that the combination of our international expertise with local market
knowledge enables us to propose a fee that provides value to you.
Accordingly our fee will be structured as a fixed fee which would be payable in two
equal instalments, on commencement of the engagement and on submission of the
draft report.
No Particulars Per Diem Rate - INR
1 Staff Category
Partner 8,000 - 30,000
Manager 4,000 - 6,000
Staff Accountant ~ Rs 2,000
2 Expenses
Travel and Conveyance
Board and Lodging
Actual Cost
ex Delhi, and ex Mumbai

13. 13
RESUMES – Our team
 Co-Founder - Riskpro
 CA, CPA, MBA-Finance (USA), FRM (GARP)
 Over 10 years international experience – 6 years in Bahrain and 4 years USA
 15 years exp in risk management consulting and internal audits, Specialization in
Operational Risk, Basel II, Sox and Control design
 Worked for Ernst & Young (Bahrain), Arab Investment Company (Bahrain),
Navigant Consulting(USA), Kotak Mahindra Bank (India) and Credit Suisse(India)
 Sox Compliance project for Fannie Mae, USA ( $900+ Billion Mortgage Company)
ManojJain
 Co- Founder - Riskpro
 CA (India), MBA (Netherlands), CIA (USA)
 Over 15 years of extensive internal and external audit experience in India and
abroad.
 Worked with KPMG United Arab Emirates, PKF South Africa, Ernst and Young
Kuwait, Deloitte Netherlands and KPMG India.
 Worked with clients in a wide variety of industries and countries including trading,
retail and consumer goods, NGO, manufacturing and banking and finance. Major
clients include banks, investment companies, manufacturing organizations,
aviation etc.
RahulBhan
Credentials

14. 14
RESUMES - Our team
 Co-Founder - Riskpro
 PGD (Electrical & Electronics & Computer Programming)
 30 years of experience in Information & Communications Technology (ICT) Solutions
for Retail, Garments, Manufacturing, Services Industries.
 Has created Companies, Divisions, Products, Brands, Teams & Markets.
 Consulting in Business, Technology, Marketing & Sales & Strategic Planning.
 Advisory, Training, Workshops & Implementation in Systems Thinking, Systems
Modeling & Balanced Scorecard
 Worked with TIFR, Mahindra, Ambience, Communico-Graphique & Ionidea Inc, USA,
CasperAbraham
Credentials
 Senior Vice President – Risk Management (Fraud Risk, BFSI)
 MBA, PDFM, NSE-NCFM, PMP, CSSGB,Trained ISO 9001:2000 I.A
 Professional with 17 years of rich experience into diverse Consumer finance/ Lending
operations ,Risk Management,BPMS, Consumer Banking, NBFC, Management Consulting &
Housing finance in BFSI industry having successfully led key business strategic
engagements across multi-product environment in APAC, Australia and US regions.
 Worked with GE, ABN AMRO Bank, Citigroup, Accenture, Deutsche Postbank
 Highly skilled and expert Trainer in Fraud Risk areas across Credit, Corporate Risk
management.
 Specializes in Fraud Control, Compliance QA ,ERM and Regulatory governance.
HemantSeigell

15. 15
RESUMES - Our team
 Head – Taxation Risk Advisory
 B.Com, FCA
 Senior Partner with 48 year old Delhi based Chartered Accountant firm, Mehrotra
and Mehrotra
 Over 19 years of experience in the field of Audit, Taxation, Company law matters.
 Major clients served are NTPC, BHEL, Bank of India, PNB, Airport Authority of
India etc.
RajeshJhalani
Credentials
President – Banking & Financial Services
 A senior researcher in Applied Mathematics leading to Ph.D after MSc (Mathematics),
CWA, CAIIB
 Combined experience of 25+ years in corporate banking, risk management,
international trade finance, development of risk rating models, project finance, credit
monitoring and NPA management
 Since 2006 conducting open / in-house training on the above domains to all Top
public/ new and old private sector banks, top MNC banks (India and abroad), leading
NBFCs and corporates in manufacturing and financial services space; Worked on IFC
(World Bank) funded projects for MSMEs in India and abroad
 Worked for Bank of Baroda and ICICI Bank – bestowed Top Performer Award
continuously two years during his tenure; widely travelled abroad for business
relations, seminars, offering training, investor meetings, NYSE listing and for
processes involving establishment of representative Office in USA
Sivaramakrishnan

16. 16
Executive Vice President – Risk Management ( Banking & Financial Services)
 A hands-on banking professional {BSc (Mathematics), CAIIB} with considerable
domestic and international experience
 An aggregate experience of 24+ years across industry, mainly BFSI in several
functional areas including Retail and Commercial Banking, Corporate Lending, team
member of the Business Process Re-Engineering project (BPR); conceptualizing and
setting up shared services centres for centralized operations for the Bank in India.
 Management through ERM framework overseeing all key areas of the business
through various Operational Risk tools like KRI / RCSA matrices. Managing of major
project implementation of Basel II and Compliance risk framework
 Directing, reviewing and advising Board of Directors on various compliance issues and
representing the bank to the Central Bank regulatory offices.
 Worked for ANZ Grindlays Bank, Standard Chartered, Bahraini Saudi Bank and Dubai
Holdings ( subsidiary)
KashiBanerjeeRESUMES - Our team Credentials
Consultant – Information Security & IT Governance
 LLB, CA, CISA, CWA, CS, CFE and others
 Over 15 years of experience in the field of Audit, Taxation, Investigations.
 Specializing in the field of Systems Audit, Cybrex Audit, Computer Crime
Investigations, IS Forensics
 International Committee Member of Governmental and Regulatory Agencies
Board and Academic Relations Committee of ISACA, USA
AnjayAgarwal

17. 17
RESUMES - Our team Credentials
PhanindraPrakash
 Vice President – Riskpro India
 FCA [India], ACMA [India], CFE [USA], CertIFRS [UK]
 Over 16 years of extensive consulting experience which includes financial & systems audit,
process transformation, implementation of internal controls, SOX compliance, fraud audits
& due diligence, US-India taxation
 Engaged in consulting roles as trusted advisor to finance, internal audit and information
technology executives of multiple Fortune 1000 companies with project sites in US,
Canada, Europe & Asia
 Worked with E&Y and Deloitte Consulting in USA
 Some of the major clients served internationally are GE Capital, UBS, McKesson, Eaton,
Imation, Albertsons,
 EVP and Head – Telecom Risk Advisory
 M.Tech, IIT Kharagpur, India; IES; Doctoral study, research and teaching in Linkoping
University/Sweden; Lead Auditor (BVQI).
 Over 30 years on International experience in networks and mobile Handsets from top
global companies /institutes like ISRO, Ericsson, Nokia, Nokia Siemens Networks and
based mostly in its head quarter locations in India, EU, USA.
 Expertise: Setting up capability, behaviour, culture in turning Risk, Quality, Innovation for
competitive advantage, customer delight and sustainability; key skill sets are Engagement,
Handholding, Coaching, Mentoring and lot of best practices, benchmarking/standards like
CMMI, TL9000, Six Sigma, ISO, SAS 70 etc.
AsokSit

18. 18
RESUMES - Our team Credentials
SiddharthaGhosh
 Executive Vice President – Riskpro India
 CPA (USA), ACA, ACS, Grad CWA (India), MBA (USA), Associate ICPAS (Singapore)
 Over 25 years of extensive audit and industry experience which includes 19 years with
Rolls-Royce India Pvt Ltd at New Delhi and its associate and parent companies of Rolls-
Royce in UK, USA and Singapore in all aspects of Finance, Taxation, Audit, Banking, Legal,
Company Secretarial, Statutory compliances and due diligence, Internal Control, ESOP,
Budgets, Cashflows, Forecasts, MIS Reporting, HR, Expatriate & Office Administration,
Payroll, IT, Retirement Funds Administration, Shared Services, Project Accounts, etc.
 Worked with Price Waterhouse Coopers for 4 years with reputed MNCs, banks, Indian
corporate houses
 Worked with McNally Bharat Engineering Company Ltd for 4 years
PritiTawari
 Vice President – Riskpro India
 B. Com, ACA, Dip. IFRS
 Over 6 years of extensive audit and industry experience in all aspects of Finance, Taxation,
Audit, Legal, Company Secretarial, Statutory compliances and due diligence, Internal
Control, Budgets, Cash flows, Forecasts, MIS Reporting, HR, Expatriate & Office
Administration, Payroll, IT, Project Accounts, etc.
 Worked with Price Waterhouse Coopers for 3 years in audit & assurance for reputed
MNCs, Indian corporate houses.
 Engage in own practice since 2010 specialize in outsourcing of finance department in mid
size MNCs and consultation in Indirect Taxes and Management Reporting

19. 19
Executive Vice President – Risk Management ( Banking & Financial Services)
 Professional Risk Manager with considerable domestic and international experience
 An aggregate experience of 30 + years across industry, mainly Banking in several
functional areas including Wholesale Credit Risk, Operational Risk, Trade Finance ,
Retail Banking and Islamic Financial Services.
 Track record of setting up of excellence in the set-up, and management of credit and
operational risk, compliance and credit administration functions in retail, commercial ,
Islamic Banking and offshore banking entities in the Middle East.
 Key strength includes Corporate Credits, Risk Management in IT, implementation of
Risk Management module in core banking Bank’s Policies, procedures, Country Risk.
Played an active role in 3 core banking software implementations
 Worked for a Private Sector Bank in India, ABN AMRO Bank, Bahrain, Bank Muscat
Bahrain and BMI Bank Bahrain as AGM Risk Management.
VijayanGovindarajanRESUMES - Our team Credentials

20. 20
RESUMES - Our team Credentials
ManojKumar
Senior Vice President
CAIIB
20 Years of hard core banking experience in India’s most reputed banks
across wide functional areas.
Worked with Central Bank of India, ICICI Bank, HDFC Bank, and Axis
Bank as Asst Vice President, Cluster Head, and Branch Head.
Areas of expertise are Financial Risk Management, NPA-Credit-Debt
Management, Asset Reconstruction, Project Finance, and others.
Accomplished several achievements in the functional areas of banking.

21. 21
 Specialist Risk Consultant – Business Continuity
 Founder and 15-year Chairman of Survive, the first international user group for Business
Continuity professionals
 Founding director and first Fellow of the Business Continuity Institute
 Over 25 years international consulting expertise in Risk, Crisis, Emergency, Incident, and
Business Continuity and ICT Disaster Recovery Management
 Multi-sector experience including Banking, Insurance, Finance, Oil, Gas, Energy,
Manufacturing, Retail, Hi-Tech & Telecom
 Western Press Award for services to business, 1994; BCI/CIR nomination for
lifetime achievement in BC, 1999, London; inducted into BC Hall of Fame by CPM magazine,
2004, Washington DC.
AndrewHilesRESUMES - PARTNERSHIPS
 Specialist Risk Consultant – Enterprise Risk Management
 Highly skilled risk and insurance professional with 25 years of experience designing, developing and
implementing large, global corporate risk management programs for Fortune 500 firms.
 Principal Consultant and Founder - Excellence in Risk Management, LLC. (Texas, USA) Co-founder
and EVP, Professional Services, rPM3 Solutions, LLC (Maryland, USA).
 Past experiences include Head of Global Risk Management for USAA, PepsiCo/Tricon Global and
American National Red Cross
 Additional risk and insurance experience at Verizon Corp,. Marsh USA and Liberty Mutual Insurance
Co.
 2004 Risk Manager of the Year – 2007 recipient of the Alexander Hamilton Award for “Excellence in
ERM” (at USAA) – former President, Risk and Insurance Management Society, Inc.
ChrisE.Mandel

22. 22
Key Contacts
Corporate Mumbai Delhi Bangalore
Riskpro India Ventures (P)
Limited
info@riskpro.in
www.riskpro.in
F 186, Sarita Vihar
New Delhi 110076
Manoj Jain
Director
M- 98337 67114
manoj.jain@riskpro.in
Shriram Gokte
EVP - Risk Management
M- 98209 94063
shriram.gokte@riskpro.in
Sivaramakrishnan
President – Banking & FS
M- 98690 19311
smaran.iyer@riskpro.in
Rahul Bhan
Director
M- 99680 05042
rahul.bhan@riskpro.in
Hemant Seigell
SVP – Risk Management
M- 99536 97905
hemant.seigell@riskpro.in
Casper Abraham
Director
M- 98450 61870
casper.abraham@riskpro.in
Vijayan Govindarajan
EVP – Risk Management
M- 99166 63652
vijayan.govindarajan@riskpro.in
Ravikiran Bhandari VP – IT
Risk Advisory
M- 99001 69562
ravikiran.bhandari@riskpro.in
Ghaziabad / Noida Chennai Kolkata Gurgaon
Siddhartha Ghosh
EVP - Finance
M- 9810058072
Siddhartha.Ghosh@riskpro.in
R Gupta - Insurance Risk
M- 98101 07387
R. Muralidharan
EVP – Risk Management
M- 95660 77326
murali@riskpro.in
Kashi Banerjee
EVP – Risk Management
M- 98304 75375
kashi.banerjee@riskpro.in
Nilesh Bhatia
Head – Human Capital Mgt.
M- 98182 93434
nilesh.bhatia@riskpro.in
Asok Sit
EVP – Telecom Risk Advisory
M- 98105 03463
asok.sit@riskpro.in
Pune Salem Ahmedabad Hyderabad / Agra
M.L. Jain
Principal – Strategy Risk
M- 98220 11987
mljain@riskpro.in
Priti Tawari
M- 9011054085
Chandrasekeran
Recruitment franchisee
M – 94435 99132
Manoj Kumar
M – 98983 65320
Maulik Manakiwala
M – 98256 40046
Gourav Ladha
Phanindra Prakash (Hyderabad)
Member Firm
M- 95500 61616
Alok Kumar Agarwal (Agra)
Member Firm
M- 99971 65253

23. 23
ANNEXURE I - Our Audit Methodology

24. 24
Our audit methodology - Risk Based Internal Audit How we Do
Transaction
Audit
Control
Reviews
Process
Reviews
Risk
Assessment
Fraud
Mitigation
Enterprise Risk
Assessment
Increasing Enterprise Risk Focus
NeedofOrganizations
Internal Auditing helps an organization
accomplish its objectives by bringing a
systematic, disciplined approach to evaluate
and improve the effectiveness of risk
management, control and governance
processes.
Source: The Institute of Internal Auditors 1999 (IIA)
Benefits of Risk based Audit
• Traditional audit view value added
techniques
•Risk profile of Businesses
•Internal Controls & Ops Risk reviews
•Cost reductions recommendations
•Review of Fraud Risk Controls

25. 25
Our audit methodology
Our audit methodology is risk-based and systematic which focuses on the organizational
objectives and any impediment to achieving those objectives. We recognise fully the need to
provide assurance on your business operations. Equally, we recognise the importance of
managing compliance issues, particularly in today’s evolving regulatory environment.
The key benefits of our audit approach are:
●Risk-based, & systematic approach;
●Focus on areas considered as potentially & most likely to
lead to material errors in financial statements;
●Our audit control procedures are based on project planning
techniques, including the use of automated processes and
document templates, and the agreement of objectives,
timetables, responsibilities and careful resource planning;
●The focus of our reports are to generate constructive and
value added advice; and
●Identifies performance improvement and cost reduction
opportunities.
Audit Strategy / Planning
Risk Assessment
Understanding of Business
Fieldwork
Dealing with critical issues
Reporting

26. 26
Our audit methodology (cont..)
UNDERSTANDING THE BUSINESS
Our top-down risk-based approach ensures that the audit focus is on the issues that
are of greatest importance to you and that we are in the most appropriate position to
respond to them. Our audit starts with a detailed understanding of your industry and
business.
Our approach is based on a top-down examination of the key drivers of your business.
The output is a balanced picture of how the company interacts with customers and
external industry forces. We consider the audit implications of this analysis and use it
to identify significant audit risks.
We use industry specific business models to gain information on:
• industry background including major players, regulatory changes and trends,
• risks and drivers,
• geographic issues,
• descriptions of business processes,
• benchmarks and best practice and
• audit risks.

27. 27
Our audit methodology (cont..)
RISK ASSESSMENT
In order to run your business, you develop processes to manage the factors that drive
performance and help control internal and external risks that could prevent you from meeting
your objectives. We focus on those processes where significant risks have been identified and
discuss with management its perception of how these risks are controlled. This phase of our
work enables us to obtain information on the processes supporting the achievement of the
company’s goals.
AUDIT STRATEGY AND PLANNING
Based on the understanding of business and risk assessment we devise the audit strategy. We
then develop detailed audit programs to test the transactions, processes and balances.
AUDIT FIELD WORK
The audit test work flows from strategic planning and risk assessment. The key element is to
review and test the high level controls embedded in your processes, as significant weaknesses
in your key processes could cost, both in terms of financial impact and reputational damage. We
also carry out necessary substantive audit procedures.
DEALING WITH CRITICAL ISSUES AND REPORTING
We identify and discuss all critical issues with management. We then determine whether the
Company’s financial statements and related disclosures meet our expectations.
We provide the audit report, management letter and any other deliverables and formally present
these to the Audit Committee / Board.

28. 28
Our audit methodology (cont..)
IT AUDIT PROCESSES AND METHODOLOGY
We see IT as an enabler of the operational and financial processes and we
incorporate IT audit professionals into our audit to facilitate the identification and
testing of IT controls.
We use our focused IT audit methodologies and tools as part of our core audit
process to evaluate and test whether the Company’s information systems are
configured for data integrity, are secure and are effectively managing the business
needs. We work with key business and IT management to identify aspects of IT
that pose the highest risk to the Company. We then conduct a systematic, detailed
review of those areas in which we:
• identify appropriate IT control objectives that map to key business
processes;
• identify relevant IT policies and procedures and/or industry IT standards;
and
• evaluate the design of controls and test whether they are in place and
operating effectively.

29. 29
Our audit methodology (cont..)
We use the following types of IT methodologies:
 Continuity management
 System capacity and availability
 Back up and recovery
 Data storage
 Project risk assessment
 Quality Assurance
 Project management methodology
 Programme management
processes
 Process Documentation
 Control Risk Analysis
 Control Design & Implementation
 Network penetration testing
 Information security assessment
 Enterprise security architecture and
integration
 Ongoing monitoring
ITAUDITMETHODOLOGIES

30. 30
Our audit methodology (cont..)
INTELLIGENT USE OF TECHNOLOGY
Technology is only one component of an integrated approach that combines
methodology, knowledge and technology into our tailored service to you.
We deliver our external audit services using a fully automated audit software. This
software is designed specifically to integrate knowledge management into the audit
process. Technology can never be a substitute for face-to-face communications and
we continue to rely on meetings with management to identify, resolve and
communicate issues.
Knowledge
M ethodologyTechnology
Knowledge
M ethodologyTechnology

31. 31
Strategic questions with regard to the engagement
• Have you had any personnel changes that have impacted your area?
• Have you had any computer system/computer software changes and are any projected
for your area?
• Has your area experienced any losses in recent years? If so, please describe.
• Do any third parties such as the external auditors or regulatory auditors review your
area? If so, please provide the report.
• Do you have any regulatory reporting requirements? Describe the frequency and
sensitivity of the filing.
• How much do you rely on manual processing in lieu of computer processing?
• What areas have you experienced poor performance?
• Has the volume of transactions processed in your area changed?
• What type of impact could your unit have on the Association’s reputation, if you did not
meet your mission?
• Do you have any Program performance issues that you want reviewed?

32. 32
ANNEXURE II - Legal Compliance

33. 33
Legal compliance
Stage 1 – CAC
 Preparation of Compliance Audit Checklist (CAC) covering all relevant laws
applicable to the target unit.
Stage 2 - Visit to location
 Verification of relevant records and documents available.
 Compilation of draft report based upon findings and observations of the audit
team
 Review meeting with the unit head / work directors to discussion on the
finding of audit.
Stage 3 – Report
 Submission of detailed Non Compliance (NC) report to the company (Board
of Directors or Compliance Head)
 Follow up with the unit to verify action taken

34. 34
Legal compliance (Acts covered - HR)
Factories Act, 1948 Shop & Establishment Act (state acts)
Payment of Wages Act, 1936 Maternity Benefits Act, 1961
Minimum Wages Act, 1948 Gratuity Act, 1972
Equal Remuneration Act, 1976 ESI Act, 1948
Payment of Bonus Act, 1965 Apprentices Act, 1961
Provident Fund & Misc Provisions Act,
1952
Employment Exchanges (Compulsory
Notification of Vacancies Act), 1959
Contract Labour (Regulation & Abolition) act,
1970 Trade Unions Act, 1926
Workmen Compensation Act, 1923
Private Security Agencies Regulation
Act, 2005
Prevention of Sexual Harassment
(Guidelines)
Industrial Disputes Act, 1947
Labour Welfare Act (state acts)

35. 35
Legal compliance (Acts covered - Engg.)
Electricity Act, 2003 Environment Protection Act, 1986
Petroleum Act, 1934
Water (Prevention and Control of
Pollution) Act, 1981
Explosives Act, 1884
Air (Prevention and Control of
Pollution) Act, 1981
Boilers Act, 1923 Water Cess Rules, 1977
Legal Meteorology Act, 2011
Hazardous Waste Handling &
Management Rules, 1989
Essential Commodity Act, 1945

36. 36
Legal compliance (Acts covered – Tax & Misc)
Micro, Small & Medium
Enterprises Devel. Act, 2006
Central Excise Act, 1944
Central Sales Tax Act, 1956 State VAT Acts
Customs Act, 1962 (export and import
documentation)
Service Tax Act, 1955
Income Tax Act (payment of Tax, TDS) Foreign Exchange Management Act
Negotiable Instruments Act, 1881
Industries (Development &
Regulation)
Act, 1951
Information Technology Act, 2000 Motor Vehicles Act, 1988
Competition Act, 2002