Audit & Assurance

Challenge

A manufacturing group with 4 entities had received qualified audit opinions for 2 consecutive years due to inter-company reconciliation gaps, inventory valuation inconsistencies, and inadequate documentation of related-party transactions. Their bank was threatening to recall a Rs 15 crore working capital facility.

Our Solution

Conducted a comprehensive statutory audit across all 4 entities with a focus on inter-company eliminations, physical inventory verification at 3 plant locations, and reconstruction of related-party transaction documentation. Worked with the management to implement standardized accounting policies across entities and set up monthly reconciliation processes.

Result

Challenge

A fast-growing EdTech company preparing for Series B fundraise had never undergone a proper statutory audit. Revenue recognition was inconsistent (mixing cash and accrual basis), ESOP expenses were unaccounted, and deferred revenue from annual subscriptions was not being tracked. Investors required audited financials for the last 2 years.

Our Solution

Conducted statutory audit for 2 financial years simultaneously. Restated revenue recognition to comply with Ind AS 115, computed ESOP fair value and expensed using Black-Scholes model, set up deferred revenue schedules for all active subscriptions, and reconciled payment gateway settlements with books.

Result