1) The document discusses Internal Financial Controls (IFC), which refers to policies and procedures adopted by a company to ensure orderly and efficient business conduct, safeguarding of assets, fraud prevention, accurate accounting records, and reliable financial reporting. 2) It outlines the IFC responsibilities of different stakeholders like management, auditors, audit committees, and boards of directors according to company size and financial thresholds as specified in the Companies Act 2013. 3) Indiba Consultancy offers IFC assessment and implementation services following a 4-phase methodology covering areas like control documentation, risk assessment, framework development, and ongoing monitoring.

1. 1 | Copyright © 2014 Indiba Consultancy Services Limited
Internal Financial Control (IFC): Assessment &
Compliance Implementation
IFC

2. 2
Background
• What is Internal Financial Control (IFC) ?
• Who All Are Responsible?
• Internal Controls – Expected responsibility of stakeholders
• IFC – Beyond Compliance
• Indiba Consultancy’s Offering for IFC – Assessment and
Compliance
• IFC – Tools and Accelerators by Indiba Consulting

3. 3
Fraud
prevention
Operational
Controls
Internal Financial
controls Over financial
reporting (ICFR)
IFC
Purchase liability
(AP) is
correctly recorded in
the Financials
Payments to
suppliers is done as
per agreed credit
Policy.
Unauthorized
change in Item price
master (access
controls)
Example
As per Sect ion 134 of t he
Companies Act 2013 , t he term
‘Internal Financial Controls’ means
the policies and procedures adopted
by the company for ensuring:
 Orderly and efficient conduct of its
business, including adherence to
company’s policies,
 Safeguarding of its assets,
 Prevention and detection of frauds
and errors,
 Accuracy and completeness of the
accounting records, and
 Timely preparation of reliable
financial information.
Definition
What is Internal Financial Control (IFC) ?

4. 4
Who All Are Responsible? As perCompanies Act 2013
Who All are Responsible
Public
Listed
Compan
y
Public Unlisted Companies Pvt. Co.
Paid up
Share
Capital >=
INR 20 Cr
Paid-up
share
capital >=
INR 10 Cr
Turnover
>=
INR 100 Cr
Loan
/Borrowing
in
aggregate
>= INR 50
Cr
1 Director’s Responsibility,
Statement (134 ) IFC
2 Auditor (143 )
ICFR
3 Audit Committee (177 ) ICFR
4 Independent Directors
(Schedule IV)
ICFR
5 Rule 8(5)(viii) of the Companies,
(Accounts) Rules, 2014 –BOD
report –Financial Statements
ICFR

5. 5
Expected responsibility of the stakeholders
Would like to see a robust
framework that is aligned
to acceptable standards
Review & question the
basis of your controls
design and ongoing
assessments
Focus on internal controls,
to the extent these relate to
the financial reporting
(ICFR)
Auditors
Responsibility limited
to Evaluation of
Financial Reporting
Controls”
Company
Management
Auditors
Audit Committee/
Independent Director
Create & test the
framework of internal
controls
• IFC (including
operational &
Compliance)
• Controls documentation
Would rely on the
assessment and view of
the Audit Committee
They may ask for
additional information
Board of Directors

6. 6
How will IFC help beyond compliance ?
• Helps in business process re-
designing to plug revenue leakages &
cost containment opportunities
• Helps in rationalizing the
number of controls across
organization–
moving to smart and automatedcontrols
• Helps in standardizing policies and procedures for multi-location/ multi-business
Companies
• Fosters a control consciouswork culture for people behindcontrols
• Provides assurance to the CEO/ CFOas well as improves business performance
• In some instances, also serves as a base for blue print of optimal procedures while
thinking aboutERP
Aimed at strengthening the processes to further improve business,identify cost
containment opportunities as well as drive growth

7. Indiba Consulting Offering for:
IFC Assessment & Control Implementation

8. 8
Understand,
Educate &
Communicate
Plan & Scope
Document,
Assess &
Remediate
Sustain &
Monitor
Understanding
Compliance
requirement
Project Planning
Project Management & Quality
Assurance
Project Team &
Training
Control
Assessment
Ongoing Training & Communication
Communication
Plan development
Internal Control
Risk Assessment
Monitoring &
Reporting
Internal Control
Framework
Development
Phase 1 Phase 2 Phase 3 Phase 4
Project
People
Proces
s
Internal financial controls (IFC) - implementation methodology

9. 9
IFC - Tools and Accelerators (by Indiba Consulting)

10. 10
Some of our Customers

11. 11
Thank You
Contact us :
www.indba.in
Mumbai Office :
Office No – 57, Ground Floor, Foundation Towers, CBD
Belapur, Sector 11
Mumbai – 400614.
UAE :
2204,Fortune Executive Towers T-1,
JLT,Dubai United Arab Emirates
Cell : +91 9028013279/9987454045
Telephone : +91 22 65206530
Email : info@indiba.in