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Preparation of comprehensive financial policies manual

The Assignment
The client is a wholly state owned company registered under the Companies Act, 1956, engaged in exploration and mining of mineral resources. The Management felt the need to establish well-designed policies, systems and processes in various areas of Finance and Accounts. MaGCTM was engaged to prepare a comprehensive financial policies manual.

MaGCTM Approach
MaGCTM prepared a comprehensive manual on Financial Policies in the following areas:

  • Investment in joint ventures and subsidiaries
  • Expenditure
  • Working capital management
  • Costing
  • Finance integrated MIS
  • Delegation of financial powers
  • Performance monitoring through ratio analysis
  • Computerized financial management system
  • Accountability for custodian of investments and finances
  • Tax
  • Risk management
  • Borrowings and long-term debt
  • Financial accounting policies
  • Inventory and asset management
  • Internal audit and control
  • Dividend policy
  • Budgetary control
  • Investments

MaGCTM visited the mining sites to understand ground level realities. MaGCTM also held extensive discussions with the Management and senior officials of the client to understand their concerns. Best practices in the industry were studied, analyzed and the same were incorporated in the financial policies manual.

The Output
The manual was well appreciated by the Management and staff of the client. The manual served as an operational and financial guide in all the areas covered above and enabled efficient and effective quality output and in strengthening internal capabilities. An orientation was provided by the Board to all the functional heads. Following this, these manuals were approved by the Board and subsequently implemented.