AIROX TECHNOLOGIES PRIVATE LIMITED

Internal Controls Over Financial Reporting (ICOFR)

Risk and Control Matrix - Statutory Compliance
Period April 1, 2022 to March 31, 2023

Key Control Control

Control/ Type Control Type Classification Responsibility
Control Risk Control
Sr. No. Process Sub Process Risks Event Control Objective Existing Control Activities/ Other Controls Assertions* Non (P)reventive (A)utomated (O)perating, (Process Owner &
Reference Category Frequency
Key or or (M)annual (F)inancial, Reviewer)
Control (D)etective (C)ompliance
Advance tax liability is calculated by the CFO and reviewed by Tax
To ensure that the Advance Tax liability
Statutory Advance Tax liability is Consultant on the estimated turnover and profits for the current year. Key
1 SC1 Advance Tax is calculated & Paid correctly as per the A, C, V M P Quarterly M F/C CFO
Compliance incorrectly computed or paid After approval from the MD, the F&A Manager makes the payment and Control
Income Tax provisions
records the entry.
1. Final Tax Computation is prepared by CFO, reviewed by Tax
Provision for tax & tax return To ensure provision for current tax are
Statutory Provision for consultant and approved by MD. A, C, R&O, Key
2 SC2 adjustments are not accurate, complete and recorded in the M P Annually M F CFO
Compliance Income Tax 2.F&A Manager post entries in the sytstem which is then reviewed & V and C/O Control
appropriately recorded. correcct period.
approved by CFO
ITC claimed is inappropriate.
Payment of output tax is
Goods and Ensure appropriate claiming of ITC and Manager F&A of GST prepares the workings and reconciliation of
Statutory unauthorized or Key Monthly/
3 SC3 Service Tax payment of liability. Timely filing of GSTR's which is reviewed by GST Consultant and uploaded on portal E,A, C, C/O M P &D M F/C CFO
Compliance inappropriate. GST returns Control Yearly
(GST) returns which is then approved by CFO/MD.
are not filed in a timely
manner
Tax Deducted Tax is not deducted correctly
Statutory To ensure that Tax is deducted correctly TDS on salary is calculated by Manager F&A which is reviewed and Key Manager F&A &
4 SC4 at Source as per the Provisions of A, C, C/O M P Monthly M F/C
Compliance as per the Income Tax Laws. approved by CFO and sent to Sr. HR Manager Control CFO
(TDS) -Salary Income Tax
Tax Deducted
Tax is not deducted correctly Working of TDS (rates, TDS Amount,Category of the payee) other than
Statutory at Source To ensure that Tax is deducted correctly Key
5 SC5 as per the Provisions of salary is calculated by Finance Officer which is then reviewed by A, C, C/O M P Monthly M F/C Manager F&A
Compliance (TDS) - Other as per the Income Tax Laws. Control
Income Tax Manager F&A before payment.
than Salary
Sr. Manager HR will calculate all PF, ESIC,PT and employee related
Provident Incorrect calculation of
To ensure that PF, PT,ESIC is properly calculations which are reviewed by Manager F&A .Statutory
Statutory fund, regulatory payments. Key
6 SC6 deducted and deposited with the compliance tracker is maintained by Finance team for ensuring payment E,A, C, V M P Monthly M F/C Manager F&A
Compliance Professional Delayed deposition of Control
Government within the due date for the statutory liabilities is within due date and non compliance does
Tax & ESIC regulatory payments.
not take place, it is monitored by Manager F&A.
Tax Deducted Finance officer prepares draft return on the basis of approved workings
Statutory at Source Non Filing of returns or which is reviewed and approved by Manager F&A. Finance officer then Non Key Monthly/
7 SC7 Filing of Returns A,C,O,R&O M P &D M C/O Manager F&A
Compliance (TDS) - Other Incorrect returns filed files the return which is once again reviewed by Manager F&A to control Quarterly
than Salary ensure returns are filed correctly.

Deferred tax calculation is considered

Deferred tax working (temporary difference identified, permanent
Deferred taxes are not after considering all the temporary and
difference identified and effective tax reconciliation) is prepared by
Statutory accurately measured, permanenet differences. Preparation of Key Manager F&A and
8 SC8 Deferred Tax Manager F&A which is reveiewed & approved by CFO.Finance officer A,C,V, R&O M P Annually M F
Compliance completely recorded or are effective tax reconciliation to verify that Control CFO
posts the entry in the system which is reviewed & approved by
not appropriately valued the deferred tax is created on all the
Manager F&A.
temporary differecnes.

Open Cases Impact of pending The Manager F&A/CS/Consultant(Related Tax Libility) handled open
Statutory Ensure proper assessment of pending Key
7 SC7 and Pending proceedings is not cases, pending proceedings and all other court related matters on that A, C M P Monthly M F/C CFO & MD
Compliance proceedings Control
Proceedings ascertained appropriately basis MIS for outstanding litigation is reviewed by CFO & MD monthly.

Payment for
Statutory Unauthorised payments to Payments are processed after Asst. Manager F&A takes approval for payment for every payment Key On
9 SC9 Statutory O,C,A M P M F CFO
Compliance Government Authorities appropriate authorizations from CFO and then processes the payment Control Occurrence
Payment

*Assertions impacting IFC

Existence (E) - Assets, liabilities and equity balances exist at the period end.
Accuracy (A) - Assets, liabilities and equity balances are accurately recorded.
Cut off (C/O) - Assets are recorded in a timely manner and proper period.
Completeness (C) - All assets, liabilities and equity balances that were supposed to be recorded have been recognized in the financial statements.
Rights & Obligations (R&O) - Entity has the right to ownership or use of the recognized assets, and the liabilities recognized in the financial statements represent the obligations of the entity.
Valuation (V) - Assets, liabilities and equity balances have been valued appropriately.