NumberTree Assurance Services

MUMBAI / NEW DELHI

Brief about the firm…

NumberTree Assurance is a professional Techno-Financial Audit firm focused on cost reduction through identification of Frauds, Thefts, Wastages etc. We provide high quality Construction Cost Consultancy to our clients.We believe that what clients truly value is sound technical advice, delivery in the context of theirbusiness or commercial situation which is also practical, effective and implementable. This requiresgoing beyond the conventional Internal Audit to understand the underlying business transactionand the business imperatives and then applying an understanding of the tax and regulatoryframework to fashion a solution that works.We equally believe that we will gain and retain our clients’ confidence only when we are able toprovide efficient cost planning solutions consistently, from engagement to engagement, from oneyear to the next. We are passionately committed to do so.

Management Assurance Practice Across Sectors

INFRASTRUCTURE

REAL ESTATE

RAILWAY & METRO BRIDGE & STRUCTURES ROAD & HIGHWAY

RESIDENTIAL COMMERCIAL

WATER

OTHER SECTORS

POWERTOLL SURVEY AUDITS INDUSTRIAL PIPELINE

Our Expertise

Techno-Financial Audit of Infrastructure Project

Our objective is to help promoters, owners and management of the organization to reducetheir project cost, achieve cost savings through our Cost Control Mechanism and toprovide value addition to their current systems and process.

We perform Construction Audits of EPC & BOT Road Projects, Tunnel & Bridge Projects, Civil Projects, Metro & Rail Projects, Industrial Projects, Water Treatment Plants, Power Projects, Real Estate – Residential & Commercial Projects.

Our audits can start at the conceptual proposal stage, during active construction, atsubstantial completion or after close out.

Since our incorporation in 2005 we have:

9Audited major projects across the country totaling more than Rs 15,000 Crore.9Recovered millions as cost saving for our clients.9With our cost control recommendations, reduced millions of construction costs.9Our reports and recommendations have prevented millions in unnecessary expenditure.9 Identified & investigated frauds of various nature.9We have recovered substantial over-billed costs after the project has already been

audited by Third Party Organizations/Internal – External Auditors.

We, the Project Auditors…

…..Are The Project Manager's Right Hand on Major Projects!

We offer support to the Project Manager by verifying the details of project cost,providing analysis of alternatives, evaluating billings, examining the work done bythe subcontractors, evaluation of the systems and internal controls, suggestingimprovements in systems and procedures including documentation, checkingfrauds, thefts and wastage.

With our past experience of audit, mostly in construction, we serve as an adjunctto your staff. Whether your organization has in-house internal auditors, projectmanagers, engineers and accountants or you have an owner’s representative tomanage construction, we can and do make a worthwhile impact on the projectcost savings and financial contribution to the project.

We audit to maximize Client Value as defined as net recovery/net savings less audit costs.

Our Approach – Project Audit

Co-develop audit expectations with the client

Understand key business processes

Identify and document key business risks

Review controls design and operating effectiveness

Identify and document control gaps and process improvement opportunities

Recommend and report on control gap mitigation plans

Unique Features – Project Audits

Maximize Client Value as defined as net recovery/net savings less audit costs.

Focus on cost reductions and increased efficiency.

Operational aspect and practical outlook

Practical & business oriented recommendations

Implementing suggestion and follow up status

Independence , creative and business driven attitude.

Discuss, document andagree on detailed auditplans for areas agreed asper IA Scope

Conduct reviews as peragreed Audit Plans

Reporting to Managementand Audit Committee asper agreed protocols

Management Reporting

Process Understanding &

Validation

Risk & Controls Evaluations

Gap Analysis & Value

Recommendations

Project Audit

PlanningExecution Reporting

Internal Audit - Project Implementation Methodology

Process Efficiency

Performance Management

Project Management

Business Transformation

SOP (Standard Operating Procedures ) – Manual & Process Improvement Studies

• Evaluation process controls• Identify and document gaps• Discuss and agree on

mitigating controls• Benchmarking with leading

practices

• Discuss and understand processes ‘as-is’

• Flow chart processes• Document organization

structure, roles & responsibilities.

• Future State Design SOPs (Standard Operating Procedures) incorporating ‘To Be’ processes

• Discuss and agree on Future State Design

• Training and workshops • Communication and

reporting

Gain ‘As Is’ Understanding Controls Evaluation & Gap Analysis

Reporting Future State Design

Budgeting & PlanningQuantity Survey & Physical MeasurementsTechnical AuditProcess and Systems- Review & ImplementationsRevenue Recognition & Client Bill VerificationStores & InventoryPurchases & ProcurementMaterial Consumption & Variance AnalysisSub Contractor BillingMechanical & Machinery DepartmentAccounts & FinancePayment & AuthorizationFixed AssetsMIS

Major Areas of Audit Work Scope of Construction Site Audit

Review and Audit of toll Operations is conducted w.r.t. Revenue Leakage, identification and prevention, Theft Identification & Prevention, IT & Fixed Asset Review, etc. Toll Site audit is to safeguard the revenue and to block the revenue leakage gaps.

Revenue Leakage Areas includes:Loss due to Inaccurate Vehicle ClassificationVehicle detection and separationRising threat from theft at Cash toll plazaReview of toll management skillsTraffic Monitoring SystemsDetailed Review of Closed-Circuit Television (CCTV) systemReview of Vehicle Movement AnalysisReview and Analysis of Toll collectionReview of Monthly Passes Issue and Vehicle MovementRevenue Leakage due to manual operation

Revenue Assurance program is designed not only to detect potential revenue loss, but also to proactively assist an operator with its investigation, diagnosis & preventive steps.

Plaza Management & Corridor Management

Compliance & Concession Agreement

Fixed Asset & IT Review

Toll Operations Audit & Survey

Other Services (In Brief)Monthly / Quarterly Project AuditThese “On-Going” construction audits produce maximum cost saving by documenting and preventing future over billings.

Project Closure AuditThe Project Team may determine the requirement of an independent construction auditor at substantial completion or prior to final payment.

Investigation Fraud AuditTo verify in depth, the areas which are critical in nature and where the management expects an element of doubt in the actual transactions incurred by their project site personnel. These areas include diesel consumption of plant & machineries, scrap verification, sub contractor billing verification, etc.

Review of Systems and ProcessesTo assess and review the current systems, processes and SOP’s implemented with the different departments of the client and to suggest on the improvement on the same.

Internal AuditsInternal Audit procedures and Internal Control Verification as per the required compliance.

Implementation of New Systems We have also assisted the client in implementing new systems such as SAP, ERP, etc.The service includes the selection of vendor, system implementation plan review, Data Migration Plan and review of the post implementation scenario of the system.

Workshop / Manpower Training We have also conducted workshops and seminars for various infrastructure corporates to train their site staff with respect to the process, MIS, Formats, etc. to be followed at the project site.

ChallengesThe major challenge in the construction site audit is the environment, since thesame is executed at construction site and most of them are remote places wherebasic facilities are also not available. Further, dealing with the construction staff,sub-contractors, labors, managing the data and executing the work is also one ofthe challenges in the audit.

AchievementExecuting the work with value addition and savings to the clients is the utmostsatisfaction & achievement.

Challenges & Achievements

Experience of Infrastructure Project AuditSome Examples of Techno-Financial Audits completed:-

Road Projects�Rohtak- Bawal EPC Road project of Rs 700 Cr� Sion Panvel Expressway Project of Rs 600 Cr� Gwalior-Shipuri DBOFT Road Project of Rs 1000 Cr� Ludhiana-Moga-Talwandi EPC Road project of Rs 600 Cr� Jalore - Jashwantpura BOT Road project of Rs 74 Cr� Jalandhar NHAI Project of Rs 350 Cr� Amritsar Majitha Road Projects and Amritsar BRTS Corridor Project of Rs 300 Cr� Kota RSRDC Road Project of Rs 400 Cr�Multiple Road & Structural Projects in Uttarakhand of Rs 100 Cr

Toll� Toll Survey Audits in Maharashtra, Rajasthan, Bihar, Orissa, West Bengal, Karnataka, Uttar Pradesh,

Andhra Pradesh & New Delhi.

Metro & Indian Railway Projects� Delhi Metro Airport Express Commercial Building and Multi Level Car Parking Project at Delhi� Underground Metro Station & Tunneling Project for Delhi Metro Rail Corporation� Tamluk Rajgoda Project (Civil, Signalling, OHE)� Ambika Kalna, Katwa, Nalhati, Krishnanagar Railway Projects in West Bengal worth over Rs 75 Cr� North-Eastern Railway project of Rs 125 Cr in Bihar� Elevated Metro Project at Noida (India’s Fastest Metro) worth over Rs 550 Cr

Real Estate Projects� Real Estate Project of Residential Housing City at Bhopal of Rs 1000 Cr� Residential Real estate project of Rs 1200 Cr at Tardeo in Mumbai�Residential and commercial Real estate project of Rs 85 Cr at Mira Road in Mumbai.� Residential and commercial Real estate project of Rs 145 Cr at Borivali in Mumbai.� Residential and commercial Real estate project at Vasai & Virar in Mumbai.� Hotel construction Project at Solapur.�Andaman Nicobar Tsunami Rehabilitation project at Hut bay and Nicobar islands of Rs 342 Cr.� Civil Construction project at Nanded of 22000 houses of Rs 700 Cr� Civil Construction project at Malegaon of 11000 houses of Rs 400 Cr� Civil Construction project at Delhi of 15000 houses of Rs 500 Cr

Industrial & Other Projects� Thermal Power Project at Nagpur worth over Rs 1200 Cr�Maruti Suzuki Plant Project at Ahmedabad worth over Rs 500 Cr�Mercedes Benz India Plant Project at Nagpur worth over Rs 300 Cr� SAIL, Rourkela Steel Plant Project worth over Rs 300 Cr� Institutional Project (IIM Kashipur) worth over Rs 400 Cr� Institutional Project (IIM Trichy) worth over Rs 300 Cr� Ethane Pipeline Project at Dahej-Nagothane worth Rs 188 Cr� Gas Pipeline Project in Mumbai worth over Rs 142 Cr� Diesel Pipeline Project in Orissa worth over Rs 132 Cr�Water Treatment Plant Project in Rajasthan of Rs 122 Cr� Port Jetty Construction at Andaman Nicobar worth over Rs 15 Cr�Water & Sewerage Pipeline Project.

Designation Qualification Experience Range Numbers

Partner Chartered Accountant 10 4

Team Leaders Chartered Accountant 3 – 5 6

Team Leaders CWA 3 – 5 3

Mid Level B.Com/MBA 3 – 5 5

Junior Level CA – MT 1 – 3 10

Senior Engineer B. Tech – Civil 25 2

Billing Engineer B. Tech – Civil 5 – 7 3

Engineers B. Tech – Civil 3 – 5 5

Accounts B. Com 5 1

HR & Admin MBA 3 2

Organization Team Profile

Our Project Locations

Road & Highway

Railway & Metro

Real Estate

Other Construction

LEGENDS

Toll

Road & Highway

Railway & Metro

Real Estate

Other Construction

LEGENDS

Toll

LOCATIONS:

Mumbai OfficeAddress: 1ST Floor,Dr. R. G. Rao Villa,

Amboli Church, Andheri (West), Mumbai-400058, India

Danish KhalifeyDirect: +91 916 777 3875Email : danish@numbertree.in

Tanuja SurveDirect: +91 916 777 2907Email : survetanuja@numbertree.in

New Delhi OfficeAddress: A-99, Third Floor, Lajpat Nagar-II,

New Delhi - 110024

Ajay ShekharDirect: +91 9911 358 409Email : ajay.shekhar@numbertree.in

Our Offices

MUMBAI

KANPUR

NEW DELHI

THANK YOU

COMMITTED TO YOUR GROWTH

NumberTree Assurance Services Pvt. Ltd.