RAMA’s Anubhav September 20181

RAMA’S

ANUBHAVSeptember 2018

RAMA’s Anubhav September 2018

1. EDITORIAL……………………………..…..…………………………………………………….………..03Mr. Vishal Mandani

2. CA TOPIC......................................................................................................... 05Mr. Pankaj Agarwal

3. GST TOPIC………………………….........................................................................….07Mr. Chintan Valia

5. SPECIAL ARTICLE...........……………………………………….….….…………………………..…11Ms. Neha Shah

6. TRAINING……..………………………………………………………………………………..………....12 Ms. Nammika Giddi

Priya Mishra– Editor, Communicator/ Nammika Giddi - Creative & Art work

7. MOMENTS TO CELEBRATE….………………….……………………………..………………..… 13Ms. Anjali Singh

INDEX

4. ERP TOPIC……................……….….…………………………………………………………..….…09Mr. Syed Anees

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RAMA’s Anubhav September 2018

EDITORIAL

Dear All,

May Krishna show us the way inour lives as he did to Arjuna inthe battle of Mahabharata.Have a blessed Janmashtami!!!

Let’s ponder our thoughts onthis noteworthy matter of howwe should follow the commandsof lord Krishna on Karma andreach out to our ultimate aim.‘What we sow is what we reap’and that’s the Karma. How manyof us consciously work onKarma? It is not a fancy wordbut something that we call aduty, responsibility in a verycommon parlance.It is responsibility as a son ordaughter to their parents, as astudent to their studies and soon. If we assume, understandand discharge our dutiesproactively, keeping theirpriority with timeline, friendswe can really avoidconsequential issues merelyshirking out of ourresponsibility.Friends, life is full ofopportunities and challenges incoming era and I would like toshare some of the indicatorswith you that shows how fastthe things around us arechanging and building new andbetter economy for tomorrow.

[A] India Post Payment Bank(IPPB)

Prime Minister Mr. NarendraModi on 1 September 2018launched the payments bank ofthe Department of Posts thatwill take banking to thedoorstep of every citizenthrough an unmatchednetwork of post offices andalmost 3 lakh postmen and‘Grameen Dak Sewaks’.IPPB services are now availableat 650 branches and 3,250access points and will bequickly scaled to all 1.55 lakhpost offices by December 2018.IPPB will be like any other bankbut its operations will be on asmaller scale without involvingany credit risk.Surprisingly, the IPPB accountscan be opened instantlythrough their respective mobileapps just by providing details

like Aadhar number with KYCverification. IPPB doesn’tcharge any fee forwithdrawals made from itsown ATM or any PunjabNational Bank ATM. The IPPBhas teamed up with financialservices providers like PNBand Bajaj Allianz LifeInsurance for third-partyproducts like loans andinsurance.

Nobody could ever think ofthe Post Office beingmechanized to work asbanking system but today ithas turned into reality. This isa best example of how todeploy the available resourceswhen there is a choice toabandon them and leave todeplete it naturally.

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RAMA’s Anubhav September 2018

EDITORIAL

[B] Insolvency & BankruptcyCode (IBC)

In the past two years since theInsolvency and BankruptcyCode (IBC) came into being,701 companies have beenadmitted under the corporateinsolvency resolution process(CIRP) and around 87 firms areheading for liquidation.

After Demonetization and GST,the IBC is one of the majorreforms which is changing theeconomy of our country.

The changes are inevitable inlife but one who gets pulse ofpresent situation to anticipatethe likely transformations offuture and becomes the face ofchange is the visionary. It is ourchoice to follow the changes orbring the change. It is said that“Change your Thoughts andyou change your World”

My heartiest congratulations topeople who have joined CAfraternity in last month and allthe best who will be appearingin coming Novmber’18.

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NPA of about Rs.4,68,000crores were reported underIBBC out of total expected NPAof Rs.9,50,000 crores up toMarch 2018. It shows thatmany of NPA’s are restructuringto do away with their pastirregularities and start with theplain slate. Statistics of totalcases lodged under Insolvencyis as under:

RAMA’s Anubhav September 2018

GHOST EMPLOYEES – Forensic into payroll

Now a day’s accounting

frauds are on rise to bereported related to Payroll inwhich a FRAUDSTER managesto create some employeesmaster file which actually donot exists and manage to takeaway their all benefits by wayof FRAUD.

This is not a new kind ofaccounting FRAUD but due tothe significant use ofAUTOMATION processes inbusinesses, it has becomemore vulnerable to an everybusiness and become verycrucial to find or detect it atearly stage and at the sametime to implement suchsafeguards which can actuallyprevent from these kinds ofAccounting FRAUDS.

Automation to process payrollmakes it more vulnerablebecause it is very easy topenetrate WRONG ACTIONwhich easily gets repeated tillit’s actually detected by theMANAGEMENT of theCompany.How it works?

FRAUDSTER who can be amember of HR, Payrollprocess team or an approvingauthority which might create

some GHOST (bogus) employeesin the system which might getsalaries and other benefits forsome time and those paymentsof salaries are deleted even bydoing forging in bankstatements.It is very common in anorganization where an employeeleaves and FRAUDSTER manageto continue such employeeaccount for long and the amountis being withdrawn by the helpof even bank employees. Thereare number of reported cases inthe public domain where severalGHOST employees were createdinto the system with theknowledge of some of higherlevel employees and hence theymanaged to take away suchfunds from the entity in thename of such GHOSTemployees. Satyam was one ofrecent cases happened in Indiawhich shocked the entireindustry.

Statistic about the PAYROLLFRAUDS

According to the Associationof Certified Fraud Examiners,it’s the number one source ofaccounting fraud andemployee theft.Refer the statistics as given by,Payroll Fraud happens in 27percent of all businesses,

Payroll fraud occurs nearlytwice as often (14.2 percent)in small organizations withless than 100 employees thanin large ones (7.6 percent).

The average instance ofpayroll fraud lasts about 36months. That’s three years ofpaying ghost employees oroverpaying existing ones. InDelaware, a School DistrictFinance Director paid himselfan extra $150,000 over eightyears. He also underpaid

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RAMA’s Anubhav September 2018

GHOST EMPLOYEES – Forensic into payroll

several school administrators acombined $50,000 in oneschool year.Some real time incidences onPAYROLL FRAUDS

Satyam paid 13,000 ghostemployees (2009)

Facts:THE disgraced formerchairman of Satyam ComputerServices, B. Ramalinga Raju,used salary payments to13,000 fictitious employees tosiphon millions of dollars fromthe Indian outsourcer for landpurchases, prosecutors said.

Prosecutors in the southernIndian city of Hyderabad,where the technologyoutsourcing firm is based, tolda criminal court that Satyamhas only about 40,000employees instead of the53,000 it claims.Upper Macungie Companyloses $54,000 to possiblepayroll fraud (2013)

Facts:

Upper Macungie TownshipPolice said a township truckingfirm found fraudulent payrolldeductions Friday totaling$54,000.

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Billing Trucking, at 5316Oakview Dr., told police thatthree people who do not workfor the company were giventhe money. The disbursementwent through the company’sregular payroll system which isrun by an outside firm. UpperMacungie police did notidentify the three people whoreceived the money.How to prevent:

The below is indicative listsonly and there are severalother areas/ way to preventsuch FRAUDS in payroll:

1. Maker – checker ofemployee payroll shouldbe rotated at non-fixedinterval basis.

2. Physical verification ofemployees should be doneon an ongoing basis.

3. Complete backgroundcheck should be done foreach employee before it ishired and document thesubstantiation accordingly.

4. Automation processcontrol should be re-evaluate periodically andchange report should besought from IT departmenton non-fixed intervals.

5. Compare a employeepayroll cost each time withthe averages of past

periods and any changes/variation should beinvestigated anddocumented.

6. Employee ID should beissued by separate unit ofdepartment which does nothas any control by HR orfinance, if the process isoutsourced then it isperiodically to be reviewedor consider for change.

7. Bank reconciliation shouldnot be allowed to bepostponed and all non-reconciled items should beinvestigated and properlydocumented.

8. Bank statement receiveddirectly from BANK shouldbe used and avoid gettingthe bank statement bypersonal visits.

9. Always logon to onlinebanking and periodicchecking of debits shouldbe done.

10.Employee leaving andjoining the organizationshould be announced atbigger platform to avoidadding any GHOSTemployee.

RAMA’s Anubhav September 2018

TYPES OF REVIEWS / AUDIT IN GST

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Types of GST Review:

1. Complete Health checkreviews:

GST health check reviews canbe conducted on the periodicalbasis covering all functionshaving GST impact. This couldinclude sales, procurements,inventory, finance etc. Suchreviews would be also helpfulfor GST mandatory statutoryaudit and more importantly itprovides management with thecomfort on level of compliancein the organization. Thisexercise is also value addictivewhere various benefitsavailable in the law are alsoidentified on timely basis.Broadly, this would cover thefollowing:Review of GST outwardsupplies, tax rates applied,concessions, and exemptionsclaimed, fulfilment of relatedconditions, export benefitsclaimed etc.Review of GST input tax creditsclaimed to assess eligibility,ineligibility, completeness,documentation for credits,transitional credits carryforward etc.Review of proceduralcompliances including GSTregistrations obtained, paymentof taxes, filing of returns,

disclosure of ITC & outwardsupplies in returns, movementof goods for job work, carryforward of credits etc.Review of reverse chargecompliance by reviewing theexpense ledgers on samplingbasis, payments made,availment of re-credit afterpayment, eligibility of suchcredits, rate and abatements ifany claimed includingdocumentation.2. Area specific reviews:

Management can decide toconduct area specific reviewsas per the need andrequirement of theorganization. Various areas thatcan be reviewed on specificbasis from GST point of viewcan be sales, procurements, IT,ERP/ systems, exports &refunds, ITC credits, reverse

charge, compliance anddocumentation, agreements/contracts, disputes & litigationmanagement etc

3. Inter-branch transactionsreview:

With the advent of ‘distinctpersons’, transactions whichwould have gone untaxed arenot only brought to tax but arerequired to be reported asinward-outward supply,respectively. And thesetransactions cancel each otherin the consolidated financials atthe entity-level. As such,identifying what are inter-branch transactions, reviewingthe accounting entries andreporting them for GSTpurposes during each taxperiod requires close attention.

RAMA’s Anubhav September 2018

4. Review of invisible-supplies:

Transactions that are not for‘monetary consideration’ arealso liable to GST. As such,even without an accountingentry, the said transaction willneed to be reported for GSTpurposes and reconciled in theAnnual Returns. For example,exchange of goods will notinvolve any monetaryconsideration and as such noaccounting entries arewarranted, evenimpermissible. There are manyother instances where evenwithout an accounting entry,there would be a transactionliable to be reported for GSTpurposes.This review attends to takeadvantage of theunderstanding of the businessdomain and identify themanner – timing and valuation– of such transactions whichcould be referred as ‘invisible’transactions.

5. Systems and processesreviews:

The review helps managementin incorporating variouspreventive, detect andcorrective controls at various

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levels of a business processand it helps in streamliningand strengthening the entirebusiness process cycle from itsinception to the end whicheventually cuts down thechances of mistakes, errorsand frauds thereby improvingthe overall compliance matrix.Examples of such reviews maybe:Maintenance and data-flow in‘control accounts’ where somefactor such as credit reversalfor delay in payment tosuppliers, tax payment fordelay in return of inputs sentto job-worker, tax payment ondisposal of fully depreciatedassets in books (but less than 5years old) and such other post-procurement conditionsprescribed by GST law;Ongoing review of payment oftax by suppliers which may notalways be through monitoringGSTR-2A but additional checksby admission of timely taxremittance (invoice-wise) bythe supplier;

6. IT/ ERP systems review:

GST as we have seen is ITdependent. The GSTN hasbeen the focal point ofcompliance. Many tax payershave automated their

processes and even the returnfiling is performedelectronically with utilitiesprovided by the GSTN as well asindependent software vendors.The need for keeping the dataconfidential is the key objectivewhen sharing data. Even inmanagement decision makingreliance is placed on the outputof the IT systems and the ERP.Any error in the initialconfiguration/ set up, dataentry, data transfer, softwarecoding of utilities could havesubstantial impact onbusinesses. Thereforebusinesses would need get theaudit of the IT/ ERP systemsand software validated.Business would also need to getan IT/ERP audit done not justfrom the compliance side, butto assess what are theTechnology features that anorganisation is missing out.Today most of the reports areprepared in Microsoft Excel,without that applicationFinance & Taxation team couldnot perform their duties.However it brings the limitationof possibilities of DataProcessing beyond Excel

TYPES OF REVIEWS / AUDIT IN GST

RAMA’s Anubhav September 2018

New feature Introduced byMicrosoft ForUpgradation of AX2012Environment to Dynamics 365using Upgrade Analyser tool.

For new or existingcustomers that are not yet golive, moving to Dynamics 365for Operations is a greatopportunity for a futureupgrade to dramatictechnology. For existingDynamics AX2012-R3customers Microsoft is startinga preview program for anupgrade experience that willmove existing systems to thecloud. The upgrade consists oftwo components: the codeupgrade and the data upgrade.The newest addition is the dataupgrade where Microsoft willallow customers to compressdown the data sizes as much aspossible simplifying themigration process.Note:Upgrade is currently supportedfrom either Dynamics AX 2012R2 or AX 2012 R3 only.Overview:The following Image shows theend-to-end upgrade process,and the activities that weconsider part of each phase.Sign into http://lcs.dynamics.com/Select the Shared assetlibrary tile.

tasks that you should do toprepare the AX 2012environment, to help make theupgrade experience smootherand less expensive:Data clean-up – This processhelps you identify data that youcan remove without causing lossof functionality. The toolidentifies various types of datathat you can reduce by running aclean-up process. For each typeof data, an explanation is givenabout the impact of the clean-up. You then decide whether torun the clean-up process. Part ofthe cost of your Finance andOperations subscription is basedon database size. Therefore, byreducing the size, you reduce

DATA UPGRADE TOOL FROM AX2012 TO DYNAMICS365

In the Shared asset library,under Select asset type,select Software deployablepackage.In the list of deployablepackage files, find the dataupgrade package thatcorresponds to your upgrade.For example, if you'reupgrading from AX 2012, thepackage name starts withAX2012DataUpgrade. Select thepackage that corresponds tothe release you are upgradingto. For example:AX2012DataUpgrade-July2017.Run the upgrade tools:The upgrade analyser tool runsagainst your AX 2012environment and identifies

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RAMA’s Anubhav September 2018

that component of thesubscription cost and also helpreduce the time that is requiredfor the upgrade go-live process.A smaller database helpsguarantee a faster upgrade.SQL configuration – This processreviews the SQL configurationand recommends optimizations.By making sure that SQLperforms optimally, this processhelps reduce the time that isrequired for the upgrade go-liveprocess.if upgrading from AX 2012 R3,install KB 4035163if upgrading from AX 2012 R2,install KB 4048614.This step takes your code fromAX 2012, converts it to the newformat, and provides feedbackabout conflicts that a developermust resolve later. This stepforms the basis for the estimateof the cost of your codeupgrade.To complete this step, you mustexport your code from AX 2012as a model store export andupload it to the LCS Code

upgrade tool. The Code upgradetool will produce an upgradedversion of your code and areport about the remainingconflicts that must be resolved.Your developer can then reviewboth the upgraded code and thereport to determine the effortthat will be required in order toupgrade your code base.The output of this steprepresents the workstream inthe upgrade project plan foryour Microsoft Dynamics AXdevelopers.

End-to-end data upgradeprocessThe following Picture shows theprocess. Just back up the AX2012 database, upload it toAzure, restore it to theDynamics365 environment, andthen run the data upgrade.

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DATA UPGRADE TOOL FROM AX2012 TO DYNAMICS365

RAMA’s Anubhav September 201811

It's all very well to have courage and skillAnd it's fine to be counted a star,

But the single deed with its touch of thrillDoesn't tell the man you are;

For there's no lone hand in the game we play,We must work to a bigger scheme,

And the thing that counts in the world to-dayIs, how do you pull with the team?

They may sound your praise and call you greatThey may single you out for fame,

But you must work with your running mateOr you'll never win the game;

Oh, never the work of life is doneBy the man with a selfish dream,

For the battle is lost or the battle is wonBy the spirit of the team.

You may think it fine to be praised for skill,But a greater thing to do

Is to set your mind and set your willOn the goal that's just in view;

It's helping your fellowman to scoreWhen his chances hopeless seem;

Its forgetting self-till the game is overAnd fighting for the team

TEAM WORK

RAMA’s Anubhav September 201812

TRAINING SESSIONS

RAMA’s Anubhav September 2018

Moments to Celebrate

Ms. Shivani Masalia– 2nd Sept

Mr. Vijay Sharma- 2nd Sept

Mr. Sunil Kevat- 10th Sept

Ms. Vasundhara Gupta- 25th Sept

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Mr. Callistus Dabre

Mr. Vikash Vasani

Mr. Rohit Jain

Mr. Dishank Shah

Mr. Mayur Chandak

RAMA’s Anubhav September 2018

Thank You

and

Goodbye

Until Next Time

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