Auditing Services by Sigma Solutions
Introduction
A rapidly expanding construction company in Northeast India was plagued by financial discrepancies, non-compliance penalties, and inaccurate reporting. With no prior external audit and a disorganized internal finance structure, the firm found itself unable to track expenses, ensure tax compliance, or secure investor funding.
To restore financial health, the company turned to Sigma Solutions for a comprehensive auditing and financial risk management solution.
Challenges Faced
1. Lack of Financial Transparency
- Balance sheets and P&L statements contained:
- Mismatched entries
- Inconsistent vendor payments
- Overstated income/expenses
2. Tax & Compliance Risks
- Missed:
- Statutory audit deadlines
- Annual filings under the Companies Act, 2013
- Resulted in:
- Penalties from GST and Income Tax departments
3. Weak Internal Controls
- No system for:
- Expense approvals
- Financial monitoring
- Increased risk of:
- Fraud
- Unaccounted leakages
4. Payroll & Vendor Payment Delays
- Manual disbursements and errors in:
- Salary payments
- TDS deductions
- Vendor reconciliation
5. Low Investor & Lender Confidence
- Failed loan applications due to:
- Inaccurate reporting
- Absence of third-party audit reports
Solution Provided by Sigma Solutions
Sigma Solutions implemented a multi-layered auditing and control system to eliminate discrepancies, reduce financial risks, and restore regulatory compliance.
Implementation Process
1. Pre-Audit Review & Financial Diagnosis
- Audited past 3 years’ financial statements
- Identified:
- GST mismatches
- Duplicate invoices
- Missing audit trails
2. Statutory & Internal Audit Execution
- Conducted:
- Annual statutory audit under Companies Act
- Internal audits covering inventory, payroll, and capital expenditure
- Generated:
- Form 3CD (Tax audit report)
- Financial audit summary for board meetings
3. Forensic & Risk-Based Auditing
- Traced:
- Unauthorized expenditures
- Delayed vendor payments
- Employee reimbursement abuse
- Suggested:
- Approval workflows
- Daily cash register audits
4. Regulatory Compliance Alignment
- Ensured timely:
- GST, TDS, PT, and Income Tax filings
- Set up:
- Yearly compliance calendar
- Real-time audit dashboard for CFO visibility
5. Financial Reporting & Recommendations
- Developed:
- Monthly P&L, Balance Sheets, and Cash Flow Reports
- Provided:
- Risk mitigation strategies
- Suggestions for restructuring vendor agreements and loan utilization
Results Achieved
Outcome | Impact |
₹12 Lakhs Saved | From fraud leakages, expense control & missed payments |
95% Financial Accuracy | Improved reporting and reduced manual errors |
100% Audit Compliance | Passed tax, GST, and statutory audits |
Timely Payroll & Vendor Settlements | Improved cash flow and payment cycles |
Enhanced Investor Confidence | Company became loan-eligible and secured vendor credit lines |
Conclusion & Key Takeaways
Auditing is not just a statutory requirement—it is a business imperative.
With Sigma Solutions:
- The company transitioned from disorder to discipline
- Financial statements became investor-grade
- Tax and vendor risks were completely mitigated
Key Learnings:
- Regular audits prevent revenue leakage
- Statutory audit compliance boosts funding eligibility
- Internal controls and reconciliations create financial discipline
Related Services by Sigma Solutions
- GST & Corporate Tax Advisory
- TDS & Payroll Compliance
- Internal Audits & Risk Management
- Business Financial Planning & Expansion Advisory
- ESI, EPF, and Professional Tax Structuring
Other Case Studies
Client Testimonial
“Sigma Solutions transformed our
financial systems. Their auditing expertise helped us correct errors, prevent
financial losses, and improve compliance. Now, we have a clear financial
picture and better business decisions. Highly recommended!”
— Founder, Construction Firm, Arunachal Pradesh