Our Approach | K Jayaraman & Co.

Hallmarks of the firm

Service Excellence: We put our clients first.
Professionalism: We strive to be timely, efficiently and responsive in all we do. Our working relationships are founded on courtesy, fairness, mutual respect and personal touch.
Integrity: We are uncompromising: partners put interests of the clients above any personal interest or ambition. We are intent on getting to right answer, rather than one that will do – that’s part of delivering true value for money.
Vision: We not only understand client’s business but we also picture its potential.
Realism: We strive for clear-sighted vision, based on honest and objective Assessment of our client. We share our view openly and frankly with clients, proposing solutions where we see problems and initiatives where we see opportunities.
Involvement: Seeing the client as a person, not as abstract, leaves no room for aloofness or pomposity. An involvement breeds loyalty: commitment that extends through bad times as well as good.
Energy: We think ahead, look beyond the immediate brief to see what else needs to be considered.
Creativity: We recognize the need to foster lateral thinking, and to stimulate innovation and imagination within client teams as well as our own.

Key strategies

First, as already mentioned, we aim to understand our client’s business and their particular needs. Every client is different and has different requirements. Our people at JS&A provide industry knowledge and examples of best practice, to complement the technical skills of each discipline.

Second, we recruit and develop people of high caliber-with imagination and flair, team players who can work with others from different disciplines. They are people of integrity, enthusiastic professionals who work hard. They are leaders in their fields, prepared to offer a view.

Finally, we take lead in developing new services and new techniques, to match the changing needs of our clients and their market place.

But the quality that marks us out is not just the scale of our resources; it’s the ability to deliver those resources in ways that best meet the individual needs of each and every client. Everyone in JS&A is guided by a simple yet demanding maxim: Listen to what clients wants-----then deliver more than they expect.

We have acted for many of our clients for years. We maintain a high standard of service consistently over the years as well as on individual assignments. We do this by developing good working relationships and by anticipating client’s needs - by stretching ourselves and by going beyond expectations. Only by providing the best service over many years and on each assignment will our client stay loyal. Today our goodwill depends on the quality of each job done, and as professionals we aim for excellence every time.

Proposed approach for forensic engagements

Our forensic accounting specialists will, using a variety of techniques, including document analysis, statistical analysis of transactions and the tracing of funds, provide factual findings related to the investigation issues. Our team consists of Chartered Accountant, Certified Fraud Examiners, Certified Internal Auditors, consulting professionals, forensic technologists and Former law enforcement who have high consultative experience in investigations, accounting and financial issues.

Forensic technology and analytics

Forensic Technology and Analytics plays a critical role in a financial investigation. A financial investigation most frequently involves analyzing voluminous transactional data from many sources, such as bank records, financial statements, books of accounts, documents etc.

Our forensic data analysis focuses on the underlying business transactional data contained in an investigation. We take a systematic approach to data analysis that begins with assisting the client in locating, scoping, and acquiring, testing and verifying data. Once the data has been verified and migrated to a stable platform, we employ a variety of proprietary analysis tools and techniques including SQL and OLAP, and statistical tools including SAS and visual data mining tools, among others.

Our suite of data analysis tools combines the principles of data matching, pattern recognition and data forensics along with our extensive experience in providing forensic accounting services. To identify potential anomalies and relationships that may indicate fraudulent behavior, our technology can combine data from many disparate sources within an organization (general ledger, payables, receivables and HR) and compare it to fraud profiles and external reference databases. We combine the concepts of visual data mining with the skills of our experienced forensic accountants, CPAs and former law enforcement officers to assist our clients in proactively identifying and detecting anomalies within data. In the past, data inquiries have generally been reactive and relatively “low tech,” usually requiring a tip off or a catastrophe to prompt the inquiry. Now, through the use of visual data mining techniques and targeted approaches, our professionals can electronically perform the data analysis. These technologies can make large-scale pattern detection a reality.

Kick off Meeting and Planning
Field Work
Reporting

The firm aims to provide practical answers through constructive relationships between our people and the clients they serve.

Kick off meeting and planning

We will be meeting with Client representative along with initial documents request for the following objectives:

Conduct meetings/ calls with the representatives from the Bank with an objective to identify the nodal contact point at the Bank for the engagement.
Obtain details of the bank accounts held by the Borrower with the Bank and obtain bank statement for the loans sanctioned and operative accounts, in electronic format (text format).
Obtain the audited financial statements / unaudited financial statements of the Borrower for period under review.
Obtain details of loans and other facilities sanctioned and disbursed.
Obtain the stock audit reports along with Borrower responses for the period under review.
Obtain the receivable and stock statements submitted by the Borrower to the Bank for the period under review.
Obtain statutory audit reports, internal audit reports, cost audit reports and any Special audit reports for the period under review.
Gather any other relevant information/ document required to perform the work on this assignment.

Field work

Option I: Books of accounts of Borrower not available:

A/ Money Trail and End Use of Funds:

Analyse the statement of bank accounts of the Borrower with the Bank with the help of proprietary forensic analytical tools for ascertaining the end use of funds disbursed to Borrower for Term Loan, working capital facilities and other loans. For disbursements of loan, subsequent debits and withdrawals will be identified for the end use of the disbursement.
Analyse the statement of accounts of the Borrower with the Bank with the help of proprietary forensic analytical tools to identify the trend and patterns in the receipts and withdrawals of funds.
Analyse the Statement of Accounts and the details of the facilities provided to Borrower by the Bank to ascertain patterns of circular transactions, if any.
Identify details of the payees from the statement of accounts to the extent available. Bank will be requested to provide details of payees for transactions selected by us based on the analysis carried out as above.
Obtain Bank account statements in electronic format (text format) for funds transferred within accounts of sister / group/ associate entities, transferred within accounts of promoters / partners/ directors (restricted up to 3 bank account statements) for identifying trail of fund movement.
Obtain details of outstanding debtors for the period under review from the Bank.
Identify top 10 debtors from the Stock and Debtors statement submitted by the Borrower to the Bank and from the analysis of bank account statements.
Obtain Balance confirmation from Debtors by written communications through the Client for selected high value Debtors (Total 10 samples) as agreed with the client.
Desktop searches would be conducted on these identified debtors pertaining to the underlying issues within the limited data as is available in the public domain: Basic profile of the debtors; Relationship / connections with the Borrower, if any; Adverse media, if any.

Option II: Books of accounts of Borrower available:

In addition to above activities mentioned in option I, following additional activities will be performed if the Books of accounts are made available by the Borrower:

Conduct meetings with the Client/ Borrower representatives with an objective to gather an understanding the operations of Borrower and the organization structure in respect of the areas under the scope. Also understand Processes related to sales and receivables accounting data and documents for sale of goods / services.
Obtain the accounting records of the Borrower in the electronic format for the period under review.
Analysis of accounting as well as relevant non accounting information, as necessary, focused on sales and debtors.

Review sample sales transactions recorded and reported along with the supporting documentation (total 10 samples per Financial Year) to identify any prima-facie instances of irregularities.
Review of selected contractual agreements and documents with select Debtors, restricted up to maximum 10 debtor agreements, if any.
Review of related party transactions to identify sale transactions within the group entities.
Scrutiny of Debtor accounting ledgers to identify concentration of debtors and other unusual transactions within Debtor’s ledger, if any.

It is our understanding that the engagement is to be carried out based on the available records and interactions with Client and K Jayaraman & Co will be provided access to the required information (financial statement etc.) by the Client. For purpose of the proposed engagement, we may have to rely on this information. Our work will not constitute an audit of the information and accounts provided to us nor will it be an evaluation of internal controls or review or attestation services in accordance with generally accepted practices in India or elsewhere. Our reliance on and use of the information should not be considered as an expression of our opinion on it.

Reporting

After completing the field work, we will consolidate our findings/ observations to prepare the report which will include the following findings:

Finding and Observations of our work under the scope
Any other relevant issue identified during the engagement

In accordance with our normal practice, prior to finalization of our report, in order to avoid miss-interpretations, we will confirm facts with the Client.

Our value proposition

Presence & Infrastructure: M/s K Jayaraman & Co has significant geographic presence in India, with offices in 17 locations including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi. We have a highly developed infrastructure that has more than 37 years of maturity.
Expertise and Experience: We have a highly talented and globally competitive workforce, offering experience and expertise in a wide range of services. Professionals in our Forensic & Dispute Services practices have worked on some of the largest and most complex investigations of fraud and corruption within India. Our team has assisted clients on a number of anti-corruption engagements that include anti-corruption due diligence, compliance reviews and investigations.
Flexibility and Scalability: We have the flexibility and scalability to quickly ramp up to support large projects at short notice. We are able to staff projects, both virtually and on-site.
Proven Global Delivery Model: M/s K Jayaraman & Co has a proven global delivery model, working seamlessly across time zones and cultures to deliver high quality work on time. Depending on engagement requirements, we adjust our timetables to meet client requirements.

Forensic and dispute services capabilities

Experienced Team with Strong Skills: M/s K Jayaraman & Co brings a team of diverse professionals with extensive, specialized knowledge, including Chartered Accountants, Certified Fraud Examiners, forensic accountants, computer forensic specialists, MBAs, engineers, professionals with local law enforcement experience and lawyers. Their combined financial, analytical, investigative and computer forensic skills create a team highly experienced and qualified to assist in supporting our clients.
Technology and Alliances: M/s K Jayaraman & Co have effective proprietary tools and methodologies to leverage in developing our clients‘ anti-fraud programmes, such as the Fraud Risk Management Framework, the Fraud Diagnostic and Fraud Health Check assessment tools, the Fraud & Ethics Cultural Survey, and other forensic technology tool (anomaly detection tool). Each of these approaches and tools is designed to incorporate and support leading practices based on our industry knowledge and experience in fraud risk management.
Global Reach and Multidisciplinary Approach: Our practitioners have decades of forensic investigation and consulting experience covering thousands of investigations involving challenging financial and economic issues linking large volumes of data, suspected fraudulent activities, and complex accounting matters. Our practitioners have deep experience in advising clients on strategies for prevention, detection, investigation, and recovery from fraud, corruption and money laundering on a global basis. Our industry risk and compliance professionals can assist in addressing many aspects of a fraud programme. Access to this broad base of knowledge enables our professionals to address a broad range of issues including people, process, and technology. Our services are scalable and can be tailored to your industry and specific needs.