• Value-added tax (VAT) is a type of indirect tax levied on goods and services for value added at every point of production or distribution cycle, starting from raw materials and going all the way to the final retail purchase.  

• Ultimately, the end consumer has to pay the complete VAT while buying goods; buyers at earlier stages of production receive reimbursements of tax they have paid.  

• Because the consumer bears the entire tax, VAT is also a consumption tax.

• Value Added Tax (VAT) compliance and returns management can be complex, costly and challenging for organizations .  

•   Organizations have perpetually limited the use of Information Technology for VAT compliance to basic ERP configurations and ERP report customization.  

• The latest approach to managing VAT compliance is majorly unorganized and unstructured.  

• Compliance with varying provisions in each State in a predominantly manual VAT compliance is yet another challenge. Moreover, it is also necessary to ensure that tax positions adopted have been implemented as envisaged across States.

• Organizations even face a lack of audit trail of VAT calculations and return compilation.

Maintenance of documentary trail for deductions claimed such as goods return and using correct tax codes for accounting input tax credits in necessary for VAT compliance.  

2) An independent director is an individual who is a director (member) of the board of directors who does not have a material or pecuniary relationship with the company or related persons. Their role is to provide independent oversight and constructive challenge to the executive directors.

If there is a conflict or a potential conflict and it is not one from which the director has been excused already (such as in the constitution), then the director must disclose it to the company. It is then open to the director, if appropriate, to seek a resolution releasing him or her from this duty. This can be done in general meeting or by written resolution of the members. It is vital that the director discloses fully all material facts about the proposed arrangement. The facts should be sought in the same way as from a third party. In this way, the other directors are fully aware of the conflict or potential conflict and, where appropriate, the company can make an informed decision whether or not to so release the director from that duty.

3)

Whistleblowing policy as defined by this policy is an employee of (Name of Company/Organization) who reports an activity that he/she considers to be illegal or dishonest to one or more of the parties specified in this Policy. The whistleblower is not responsible for investigating the activity or for determining fault or corrective measures; appropriate management officials are charged with these responsibilities.

Examples of illegal or dishonest activities are violations of federal, state or local laws; billing for services not performed or for goods not delivered; and other fraudulent financial reporting.

The Audit Committee should, upon receipt of a Report directly from a Complainant and when possible and appropriate, acknowledge, or direct the General Counsel to acknowledge, receipt of the Report to the Complainant who submitted it.

All Reports received directly by the Audit Committee must promptly undergo a review by the Audit Committee  

The Audit Committee may, in its reasonable discretion, determine not to commence an investigation if a Report contains only unspecified or broad allegations of wrongdoing without appropriate informational support or the Report is not credible.

This decision shall, to the extent appropriate, be made known to the Complainant who submitted the Report.  

If the Audit Committee determines that an investigation should be conducted, it may consider the following  

i. Who is the alleged wrongdoer?  

ii. How material is the misreporting or loss?  

iii. How serious is the alleged wrongdoing?  

iv. How credible is the allegation of wrongdoing?  

If the Audit Committee determines that case should be investigated, it may call for investigation.

4)  

To have a smooth working relationship between the two sets of auditors, it is crucial that there is effective and regular communication between the Chief Internal Auditor (or senior team member) and the External Auditor (e.g. the audit engagement partner or one of the senior team members). This will be helped by:

• Discussions at appropriate intervals during the year on any major matters which may affect the work of either party.
• Full and prompt access to reports issued by the internal audit function during the year.
• Full and prompt access to the internal audit plan of work, audit files and testing.
• The audit committee facilitating communication between internal audit and external audit.

5)

• Among its many roles, a board of directors is responsible for establishing accountability for company management and assuring reasonable internal controls through independent third-party reviews of the company.
• While boards should seek members who can provide a diverse range of competent perspectives based on their experience and expertise, it is nevertheless imperative that board members are knowledgeable and conversant in the language of finance and accounting.

• Directors should regularly have to conduct reviews of the effectiveness of the company’s or group’s internal controls systems.

• Regular reviews performed on the board's behalf by independent third parties will focus board members’ attention on the issue and adequacy of internal controls.

examples of internal controls

• Pre-approval of actions and transactions (such as a Travel Authorization)
• Review organizational performance (such as a budget-to-actual comparison to look for any unexpected differences)