Human resource internal audit focuses on assessing and evaluating the effectiveness,

efficiency, and compliance of an organization's human resource (HR) functions and

processes. It involves reviewing HR policies, procedures, and practices to ensure they
align with legal requirements, industry best practices, and organizational goals. Here
are some key aspects of HR internal audit:

1. HR Compliance: The internal auditor ensures that the organization is compliant with
relevant laws, regulations, and internal policies pertaining to HR practices. This
includes areas such as employment contracts, discrimination and harassment
prevention, employee benefits, leave management, and worker safety regulations.
2. HR Policies and Procedures: The auditor reviews HR policies and procedures to
assess their clarity, completeness, and adherence to legal requirements. This involves
examining documents such as employee handbooks, code of conduct, disciplinary
procedures, and recruitment policies.
3. Recruitment and Selection: The auditor assesses the organization's recruitment and
selection processes to determine if they are fair, transparent, and based on merit.
They review hiring practices, job descriptions, interview techniques, and background
checks to ensure compliance and effectiveness.
4. Training and Development: The internal auditor evaluates the organization's training
and development programs to determine if they align with employee needs and
organizational goals. This includes assessing training effectiveness, career
development opportunities, and succession planning processes.
5. Performance Management: The auditor examines the performance management
system to ensure it is designed effectively and consistently applied. They assess the
performance appraisal process, goal setting, feedback mechanisms, and performance
improvement plans.
6. Employee Relations: The internal auditor reviews employee relations practices,
including grievance handling, conflict resolution procedures, and employee
satisfaction surveys. They ensure that the organization fosters a positive work
environment and addresses employee concerns appropriately.
7. Compensation and Benefits: The auditor assesses the organization's compensation
and benefits structure to ensure it is competitive, fair, and compliant with legal
requirements. They review salary scales, benefits packages, incentive programs, and
compliance with minimum wage laws.
8. HR Data and Analytics: The internal auditor examines HR data and analytics to assess
data integrity, accuracy, and confidentiality. They review data management
processes, data protection measures, and adherence to privacy regulations such as
GDPR or CCPA.
9. HR Risk Management: The auditor identifies and evaluates HR-related risks, such as
employee turnover, workforce planning, talent acquisition, and legal compliance.
They provide recommendations to mitigate risks and improve HR practices.
10. Reporting and Follow-up: After completing the audit, the internal auditor prepares a
report summarizing findings, including any non-compliance issues, control
deficiencies, or areas for improvement. They may monitor the implementation of
corrective actions and provide guidance on continuous improvement.
 HR internal audit helps organizations ensure that their HR practices are aligned with
legal requirements, ethical standards, and industry best practices. It provides
assurance to management and stakeholders that HR processes are effective, efficient,
and contribute to the overall success of the organization.

The rules and regulations for calculating salary vary across countries and jurisdictions,
as they are influenced by local labor laws and tax regulations. Here are some
common factors and considerations involved in the calculation of salary:

1. Minimum Wage: Many countries have laws that establish a minimum wage, which is
the lowest hourly, daily, or monthly rate of pay that employers are legally required to
pay to their employees. Employers must ensure that the salary paid to employees
meets or exceeds the minimum wage requirement.
2. Hours Worked: The number of hours worked by an employee is a crucial factor in
calculating salary. It includes regular working hours as well as overtime hours, if
applicable. Overtime pay rates are often set at a higher rate than regular pay to
compensate employees for additional hours worked beyond the standard workweek.
3. Pay Period: The frequency of salary payments, such as weekly, bi-weekly, semi-
monthly, or monthly, is determined by local labor laws or company policies. The
salary calculation should be based on the specific pay period, and employees should
receive their salaries within the legally defined timeframe.
4. Salary Components: Salary may consist of various components, including base salary,
allowances, bonuses, commissions, and incentives. Each component is determined by
contractual agreements, employment terms, and company policies. It's important to
accurately calculate and include all eligible components while determining the total
salary.
5. Tax Withholdings: Employers are typically responsible for deducting income taxes,
social security contributions, and other statutory deductions from employees' salaries
based on applicable tax laws. The tax rates and calculation methods vary by
jurisdiction and are subject to change, so it's essential to stay updated with the
current tax regulations.
6. Benefits and Deductions: Employers may provide various benefits to employees, such
as health insurance, retirement plans, paid time off, and other allowances. These
benefits are often deducted from the gross salary to determine the net salary
amount that the employee receives.
7. Bonuses and Incentives: Calculation of salary may include performance-based
bonuses, sales commissions, or other incentives that are contingent upon achieving
specific targets or goals. The criteria for earning bonuses and incentives should be
clearly defined, and calculations should be based on agreed-upon formulas or
predetermined criteria.
8. Payroll Cycles and Deadlines: Employers need to establish payroll cycles and adhere
to deadlines for salary calculation and disbursement. This ensures timely payment to
employees and compliance with legal requirements regarding salary payment
schedules.

It's important to note that these are general considerations, and specific rules and
regulations for calculating salary can vary significantly depending on the country,
region, industry, and employment contracts. Employers should consult local labor
laws, tax regulations, and seek professional advice to ensure accurate and compliant
salary calculations for their employees.

What are the tax benefits that can be claimed on HRA?

The whole of HRA received by employees is not always fully tax-exempt. The actual tax
exemption that can be claimed will be the least of the following three:

 The amount received as HRA from the employer

 Actual rent paid minus 10% of salary
 50% of basic salary for those living in metro cities and 40% for those living in non-metro
cities

What is gratuity?

Gratuity is a lump sum benefit paid by employers to those employees who are retiring from the
organization. This is only payable to those who have completed 5 or more years with the
company. The gratuity amount is paid in gratitude for the services rendered by the individual
during the period of employment. According to the Payment of Gratuity Act, 1972, gratuity is
calculated as 4.81% of the basic pay. Most firms with a workforce of 10 or more employees come
under the Act.

How is LTA CTC break up calculated?

Leave Travel Allowance is paid to cover travel expenses incurred by employees within the
country. LTA is 8.33% of Basic, it can be fixed depending upon grade and native place of an
employee by company.
The basic salary is the amount of money a person gets paid by an employer for
performing work. It is not the same as total pay or gross pay. Basic salary is
usually expressed in terms of monthly, weekly, or daily rate and sometimes it is
called hourly rate, wage rate, etc. The Basic salary does not contain allowances and
bonuses. It is 40-50% of the total salary.

Work-related expenses such as travel, internet, phone, etc are also added to the
basic pay. Total salary includes the basic salary along with Dearness allowances,
Housing rent allowances, bonus, etc. 

There are three ways to calculate your monthly salary:

 Daily Wage Method

 Working Days Method
 Total Days Method

Daily Wage Method:

This is the most common method for daily wage workers. There are two
methods here to calculate this:

 Method A: Monthly Gross Salary = (Net Daily Wage) * (Present Days)

 Method B: Monthly Gross Salary = (Net Daily Wage) * (Present Days +
Weekly Holidays)
Either of these two methods can be used to calculate the salary depending
on the employer’s preference.

Working Days Method:

This is the most recommended method to calculate the salary of workers.

Monthly Gross Salary = {Net Salary * (Present Days + Paid Leave)}            

(Total Working Days)

Total Days Method:

This is another common method to calculate the salary of workers.

Monthly Gross Salary = {Net Salary * (Present Days + Paid Leave + Weekly
Holidays + Festival Leaves)}                                                                                                               
(Total Days in a Month)

[ S = N * (Present + PL + W + F) / Total ]
 A Human Resource (HR) Audit Standard Operating Procedure (SOP) outlines the
step-by-step process for conducting an HR audit within an organization. While the
exact details of an HR audit SOP may vary depending on the organization's specific
needs and requirements, here is a general outline that can be customized to suit
your organization's HR audit process:

1. Objective and Scope: a. State the purpose and objective of the HR audit. b. Define
the scope of the audit, including the departments, processes, and time frame to be
covered.
2. Pre-Audit Preparation: a. Identify the audit team members and their roles. b. Establish
communication channels with relevant stakeholders. c. Gather and review HR
policies, procedures, and relevant documentation. d. Develop an audit checklist or
questionnaire to guide the audit process.
3. Information Collection: a. Interview key HR personnel, managers, and employees to
gather information about HR practices and processes. b. Collect and review HR-
related documents, such as employee files, payroll records, training records, and
performance management documentation. c. Conduct surveys or employee
satisfaction assessments to gather feedback on HR practices.
4. Compliance Assessment: a. Review HR policies, procedures, and practices to ensure
compliance with relevant laws, regulations, and industry standards. b. Evaluate
adherence to equal employment opportunity (EEO) guidelines, anti-discrimination
laws, labor laws, and any other applicable regulations. c. Assess compliance with
record-keeping requirements, such as employee contracts, leave records, and
documentation related to employee benefits and compensation.
5. HR Processes and Practices Evaluation: a. Assess the effectiveness and efficiency of
HR processes, such as recruitment and selection, onboarding, training and
development, performance management, and employee relations. b. Evaluate the
consistency and fairness of HR practices across the organization. c. Analyze HR
metrics and data to identify trends, patterns, and areas for improvement.
6. Risk Assessment: a. Identify HR-related risks, such as turnover, talent acquisition
challenges, compliance gaps, or inadequate succession planning. b. Evaluate the
impact of identified risks on the organization and recommend mitigation strategies.
7. Gap Analysis and Recommendations: a. Compare current HR practices with best
practices, industry standards, and organizational goals. b. Identify gaps, deficiencies,
or areas for improvement in HR policies, procedures, and practices. c. Provide
recommendations for enhancing HR effectiveness, efficiency, and compliance. d.
Prioritize recommendations based on urgency and potential impact.
8. Reporting and Follow-up: a. Prepare a comprehensive audit report summarizing the
findings, recommendations, and suggested action plan. b. Share the report with
relevant stakeholders, such as HR leadership, management, and the audit committee.
c. Monitor the implementation of recommended actions and provide support or
guidance as needed. d. Conduct periodic follow-up audits to track progress and
ensure ongoing compliance and improvement.

Remember to adapt and customize the SOP based on your organization's specific HR
audit requirements and industry regulations. It is also important to involve HR
leadership and seek legal or HR consulting expertise to ensure the accuracy and
effectiveness of the HR audit process.
Bonus Details:

7.8.2014 incorporation date

14-2015 loss 114682 31.3.15

15-2016 loss 215288 31.3.16

16-2017 loss 70060 31.3.17

17-2018 profit 669077.88 31.3.18

18-2019 profit 11265032.42 31.3.19

19-2020 profit 25714966.39 31.3.2020

20-2021 profit 38366635.67 31.3.2021

21-2022 profit 19991740.47 31.3.2022