Case Studies

Internal Audit

The Client: A leading IT service provider and software development Company working in India, USA & Europe.

Purpose: EValuations of Internal Controls and it’s implementation across various branches and Head Office.

Scope of Work: Internal Audit of Domestic Service Process, HR Process, Account & Financial Reporting Process, Admin Process.

Our Approach: Instead of traditional transactional audits wherein the audit is majorly dependent on voucher checking and sampling techniques, we did risk based audit after understanding the existing processes and potential risks.  

Outcome: The management get to know about the cash embezzlement and revenue leakage being done by the branch in-charge, based on our report. Our report also highlighted the false sales call reporting due to which lot’s of improvement was noticed thereafter in the effectiveness of the sales team

Internal Audit

The Client: A leading manufacturer of automotive parts

Purpose: EValuations of effectiveness of controls implemented by the management across various processes.

Scope of Work: Audit of Production Process, Inventory Process, Order Delivery Process, HR & Admin Process.

Our Approach: We walked through with each and every process and prepare a repository of potential risk and test checked the existing control to evaluate its effectiveness.   

Outcome: The management has implemented various controls suggested in our report and is not fully compliant with Factory Act and other related laws. The usage of PPEs are now being focused while working on the floor area. Which results in lesser number of injuries.

Business Valuations

The Client: A leading manufacturer of telecom cables supplying products to top most players in the industry.

Purpose: Fair Market Valuations for exploring the possibilities of disinvestment or outright sale.

Scope of Work: The management provided mandate to value the company based on Discounted Cash Flow (DCF) and Net Asset Value (NAV) Methods

Our Approach: Instead of just sticking to the mandate, we went beyond our scope and did the Valuationss based on DCF, NAV and Comparable Company Methods to find the true fair value of the Company in the Market.   

Outcome: The Valuationss presented by us were 15% higher than the expectations of client and they were able to see the true potential of the Company and thus negotiated better with their prospective buyer.

Strategic Cost Reduction

The Client: An Indian Multinational education content development Company.

Purpose: Though education sector was not directly hit by the recession, the management engaged us to do precautionary cost analysis aiming the increase in bottom line of the Company

Scope of Work: Review of financial controls & procedures and thus suggesting the ways of reducing the costs strategically.

Our Approach: We adopted an holistic view of reviewing the systems and processes right from the operations to every other function in the Company. Conducted the overall assessment with greater emphasis on bigger picture. The target was to reduce costs without impacting the delivery.   

Outcome: After adopting our suggestions, the client was able to achieve the overall reduction of 8% in the total costs and thus was also able to increase its cash flows as we also suggested the measures to improve working capital.