Professional Documents
Culture Documents
4. Terms of Engagement
Who We Are?
ALBS is a Professional Consultancy Service Provider that aims
to provide both financial and non-financial business solutions.
ALBS came into being with the vision to fill the void of
accessibility of premium consultancy services to large
companies only.
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Vision
Mission
Values
Your Company, hereinafter referred to as “the Client” in this proposal, with respect to the assignment. We have
prepared the following presentation based on your requirements. We would be happy to discuss it further with you
and your team.
ALBS’ team combines all skills and competencies necessary for smooth and timely completion/ implementation of the
said assignment. Our team also provides the seniority and interdisciplinary experience from comparable projects
which ensures the appropriate level of knowledge and experience required to achieve a successful and efficient project
management in a qualitative manner. We have extensive experience in Preparation & Review of Financial Statements.
We will be pleased to share our knowledge and experience with you. You can rely on us!
Should you have any questions related to our proposal, please feel free to reach out.
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2.
Our Approach,
Methodology &
Workplan
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Our Approach, Methodology & Work Plan
We aim to provide you a streamlined project which is divided into phases for an effective and efficient execution
of the project. In this connection, we have divided our work plan into Four phases as follows:
7arts Construction
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Phase 1 – Data Collection
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Phase 1 – Data Collection (Cont’d)
Information Sourcing
In order to streamline the project and accelerate our progress, an initial list of requirements will be shared with
the Client enabling us to augment our understanding of the Client’s environment. This may include Purchase
Orders, Invoices, Customer and Suppliers’ contracts, JVs, Accounts, Excel files, General ledgers, Access to client’s
system, Bank Statements, Cash books, Organogram, Workflow diagrams depicting relevant Processes, Policy and
Procedural documentation, System related documents and List of key third-party service providers etc.
Workflow Assessment
In addition to the above, various meetings will be conducted in coordination with point of contact with relevant
stakeholders to corroborate with aforementioned documents obtained as part of information sourcing activity. In
order to prevent the process being overly burdensome and time consuming, real-time communication will be
ensured at all the times. Once the required documents have been obtained, Trial Balance and Financial
Statements along with notes to Financial Statements will be prepared.
Data Integrity Check
In relation to ensure accuracy and appropriateness of data which forms the basis for the preparation of Financial
Statements, basic data integrity check will be conducted through reconciliation and cross verification of data from
various available sources and with the relevant documents.
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Phase 2 – Preparation of Trial Balance
Creation of General ledger Codes and Opening of Debit & Credit Accounts
Trail Balance is a book keeping worksheet like account that reflects all the credit and debit balances of all the
general ledger accounts. A specific code will be assigned to each ledger account on the basis of its classification
either as an asset, liability or equity based on mutual consensus. The trial balance is of utmost importance as it
helps identifying errors in journalizing and ensure balancing of debit and credit.
Trail Balance are vital to determine the arithmetic accuracy of the accounts. Incase the debit and credit balance of
trial balance do not tally, it may indicate either errors in book keeping of the ledgers or may also be indicative of
fraudulent transactions. Although, our responsibility does not consist of identification of fraudulent activities.
However, any such activity identified will be reported during preparation and reconciliation of the Trial Balance.
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Phase 2 – Preparation of Trail Balance (Cont’d)
AL FARAX Construction
Trial Balance
y
S.No. Account Title Debit Amount Credit Amount
l
1 Capital 282
n
2 Land and Building 120
O
3 Plant and Machinery 105
e
4 Equipments 35
i v
5 Furniture & Fixtures 82
t
6 Work-in-process 134
r a
7 Inventory 24
t
8 Debtors 89
9
10
Creditors
l l u s
Finished Goods 28
110
I
11 Cash in Hand 46
12 Cash in Bank 96
13 Sales 89
14 Reserves 146
15 Tax Payable 132
Total 759 759
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Phase 3 – Preparation of Financial Statements
The Trial Balance prepared in phase 2 would form the basis for preparation of the Financial Statements. The
International Financial Reporting Standards (IFRS) compliant Financial Statements would be prepared
keeping in view all the applicable laws and regulations. The Financial Statements will be self-explanatory and lay
out the current status of the company to the best extent possible. The Financial Statements would include the
following components:
The Financial Statements will also be accompanied with disclosures & notes outlining details of the figures
embodied within the Financial Statements. All standard line items will be covered including fixed assets, cash &
bank, inventory, investments, short and long term liabilities and equity as well as the gross and net profits.
Illustrative extracts of Financial Statements have been attached in this proposal for your perusal.
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Phase 3 – Preparation of Financial Statements
(Cont’d)
Illustrative Statement of Balance Sheet Illustrative Statement of Profit & Loss
n l y Onl y
iv e O t iv e
t r at st ra
Il lus I l l u
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Phase 4 – Ongoing Bookkeeping
Following the objective of ALBS to provide premium services to our valued clients and keep the client compliant with the
IFRS, applicable laws & regulations and updates therein, Bookkeeping services shall be provided in lieu of ongoing support
subject to mutual agreement which shall include but not limited to the following:
Our ongoing support will provide added value to the Client over the long-term through mutual association along with other
benefits including effective compliance, cost effectiveness, process efficiencies and system support. Also, it will provide us
with an opportunity to identify any potential growth factors in your operations.
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Key Milestones
and Billing
“
The key milestones and billing details would be discussed and mutually agreed
with you once we reach consensus on the agreed assignment terms.
A detailed roadmap will be shared with you outlining the timelines for
completion of each phase to ensure effective and efficient execution of the
assignment.
4.
Terms of
Engagement
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Terms of Engagement
Neither we nor 7arts Constructions will disclose any confidential information without the other’s consent. Confidential
information includes but is not limited to our working papers, any proposal, engagement letter, deliverables to be provided
hereunder or information, methodologies and documents that are not in the public domain.
Timely completion of this project is dependent both on the performance of the company as well as ALBS. In order to
ensure smooth workflow, 7arts Constructions will need to ensure full commitment both in terms of resources and time
and, as a minimum (and as far as applicable), undertake the following significant steps:
Appreciating and developing a culture/ awareness within the relevant stakeholders as to why this project is being
carried out and their respective role during the execution of the project;
Assuming the ownership of the project at the top-most level as well as within different levels of senior management
and managing and monitoring the overall project;
Providing us all the related information, documents, reports, financial or other data, records, forms etc., (as required
for the project in a timely manner so as facilitate our work);
Coordinating and Scheduling meetings on a timely basis with the relevant stakeholders at various stages of the
project; and
Arranging travelling & necessary facilities to ensure uninterrupted services.
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5.
Our Experience
and Work Profile
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Our Core Expertise
ALBS offers a platform embroils a rich experience of Implementation of IFRS, Accounting, Auditing and Business &
Risk Consulting. Our core expertise comprises of end-to-end accounting and business solutions covering a wide
spectrum of financial and non-financial services including preparation of financial statements, internal control
assessments, business process improvement, regulatory compliance and enterprise risk management.
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Why ALBS ?
We offer tailor-made solutions to your problems. Our team derives seniority and inter-disciplinary experience from
comparable projects ensuring excellence in knowledge and experience to deliver successful, efficient and streamlined
projects in a qualitative manner.
Core
Reasons
Experienced Professionals
Satisfaction Guaranteed
Top-notch professional
We accord paramount
experience accumulated being
importance to the needs of our
affiliated with one of the world’s
clientele. Your satisfaction is our
biggest Accounting &
prime objective!
Consultancy firms
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THANKS!
Any questions?
Please reach us at info@thealbs.com
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