Strengthening Financial Compliance through Comprehensive Audit

Building Trust Through Transparency :

How we Helped to company for Strengthen Financial Compliance

Quick Highlights

Statutory & Tax Audit

Conducted a full audit under Companies Act & Income Tax Laws.

GST Input Tax Credit Recovery

Recovered ₹9.2 lakhs in missed GST ITC.

TDS Compliance Regularization

Regularized multiple TDS defaults and avoided penalties.

Strengthened Internal Controls

Implemented system-based approvals and ERP integration.

Client Overview & Requirement

A Agro company is a fast-growing agro-based products manufacturer based in North India, producing fertilizers and chemicals for regional distributors and agricultural agencies.
With revenues exceeding ₹120 crores, the company experienced rapid business expansion — but its documentation, internal controls, and compliance framework had not evolved at the same pace.

Facing approaching statutory audit deadlines and complex reporting obligations under the Companies Act, Income Tax, and GST regulations, the management sought PGAS & Associates to:

Conduct the statutory and tax audit
Identify control gaps and compliance risks
Build a foundation for stronger governance and financial transparency

Challenges Identified

When the audit team from PGAS & Associates initiated its review, several key weaknesses emerged. The client’s main objective extended beyond audit completion — they wanted a robust financial control structure for future reliability.

Incomplete Transaction Documentation

Major purchase and sales entries lacked proper documentation, significantly hampering audit verification.

GST Mismatches & Delays

Delayed reconciliations and mismatches resulted in unclaimed input credits for the company.

Unreconciled Advances & Inter-Company Balances

These unreconciled items posed significant reporting risks under Schedule III & CARO.

TDS Non-Compliance

Included delayed payments and incorrect rate applications, creating compliance risks.

Weak Internal & Inventory Controls

Ineffective controls increased the risk of financial inaccuracies and operational inefficiencies.

PGAS & Associates’ Audit Approach

Our team adopted a risk-based and value-oriented audit methodology, ensuring that every audit step translated into measurable business improvement.

01

Risk-Based Audit Planning

Identified high-risk areas: inventory, related-party transactions, and indirect tax compliance.
Designed a customized audit plan integrating both financial and operational controls.

02

Financial & Compliance Review

Reconciled all major ledgers and verified expenses with documentary evidence.
Reviewed depreciation schedules as per Schedule II and ensured related-party transactions were properly disclosed under Section 188.
Strengthened compliance under CARO 2020 and ICDS requirements.

03

GST & TDS Reconciliation

Detected ₹9.2 lakhs of missed ITC due to vendor mismatches; assisted in rectification and recovery before audit close.
Reviewed TDS deductions across key sections (194C, 194H, 194J) and guided regularization of defaults with minimal interest — preventing penalties.

04

Internal Control Enhancement

Identified control gaps and implemented a Maker-Checker system for high-value expenses.
Recommended ERP integration for purchase orders and invoices, improving audit trail visibility.

05

Reporting & Advisory

Delivered a detailed audit report with actionable recommendations.
Guided management on Schedule III amendments, CARO 2020 disclosures, and tax reporting under ICDS.

Outcome & Benefits

The result was not just a clean audit — it was a transformation in the company’s financial governance framework.

Parameter	Before PGAS Audit	After PGAS Implementation	Impact
Audit Completion	Delayed & reactive	On-time & structured	✅ Timely filing
GST Reconciliation	Partially matched	Fully reconciled	💰 ₹9.2 Lakh ITC recovered
TDS Compliance	Multiple defaults	Fully compliant	⚖️ Avoided penalties
Internal Controls	Weak	Strengthened	🔒 Better accountability
Financial Transparency	Limited	High	📈 Enhanced lender & investor confidence

Client Feedback

PGAS & Associates brought a level of professionalism we hadn’t experienced before. Their audit wasn’t about finding faults — it was about building confidence. They helped us uncover hidden inefficiencies and recover missed credits, all while strengthening our systems for the future.

— Finance Director

The Value of Strengthening Financial Compliance through a Comprehensive Audit

Audit is often viewed as a statutory obligation — but PGAS & Associates demonstrated that it can be a strategic opportunity.Through their holistic audit approach, the firm helped MNO Agro Chemicals.

PGAS & Associates transforms audits from a checklist exercise into a catalyst for better governance, financial health, and business confidence.

Enhanced Financial Discipline

Improved accountability and strengthened financial management practices.

Tax Credit Recovery & Penalty Avoidance

Recovered lost tax credits and ensured compliance to avoid penalties.

Long-Term Control Systems

Established robust systems to maintain accuracy and regulatory compliance.

Strengthened Credibility

Built trust with auditors, lenders, and investors through reliable financial practices.