Strengthening Control. Ensuring Compliance. Enhancing Reliability.

Internal Financial Controls (IFC) are essential to the orderly, efficient, and compliant functioning of any organization. At Fincom India, we help companies implement, evaluate, and strengthen their internal control systems to ensure the accuracy of financial reporting, compliance with laws, and protection of assets.

What is Internal Financial Control (IFC)?

IFC refers to the policies and procedures put in place by an organization to provide reasonable assurance regarding the achievement of objectives related to:

• Orderly and efficient business conduct

• Compliance with internal policies

• Protection of assets

• Prevention and detection of frauds and errors

• Accuracy of financial records

• Timely preparation of reliable financial information

Internal control is not a one-time event, but an ongoing process involving board oversight, management execution, and staff participation across the organization.

Legal Framework for IFC in India

Internal Financial Controls are mandated by several key provisions of the Companies Act, 2013, and supporting rules:

• Section 134(5)(e): Board’s responsibility to ensure the implementation of adequate IFCs for orderly operations and accurate financial reporting.

• Section 143(3)(i): Statutory auditors must report on the adequacy and effectiveness of IFCs.

• Schedule IV (II)(4): Independent directors must satisfy themselves regarding the integrity of financial controls.

• Rule 8(5)(viii), Companies (Accounts) Rules, 2014: Board reports must disclose IFC adequacy with reference to financial statements.

Internal Control Over Financial Reporting (ICFR)

ICFR is a subset of IFC, focused specifically on ensuring reliable financial reporting and the preparation of financial statements that comply with applicable accounting standards. ICFR includes controls that:

• Maintain accurate and complete financial records

• Ensure authorized and documented financial transactions

• Detect and prevent unauthorized use or misappropriation of assets

• Safeguard the integrity of financial reporting processes

Our IFC/ICFR Services at Fincom India

We provide end-to-end support for both IFC implementation and evaluation. Whether you’re building internal financial controls from scratch or enhancing your existing framework, we offer the following:

IFC Framework Design & Documentation

• Business Process Narratives (BPN)

• Risk and Control Matrices (RCM)

• Defining Key Controls & Test of Controls (TOC)

IFC Evaluation & Testing

• Review and refinement of existing BPN, RCM, TOC

• Identification of design or operating deficiencies

• Assessment of control effectiveness

ICFR Compliance & Audit Preparedness

• Mapping controls to financial reporting risks

• Assistance with statutory auditor requirements

• Support in preparation of Board and Auditor reports

Training & Capacity Building

• Training sessions for internal teams and management

• Support in creating SOPs and compliance checklists

Why Choose Fincom India?

Regulatory Expertise – Deep knowledge of Indian Companies Act & accounting standards

Custom-Tailored Approach – Controls designed around your business processes

Audit-Ready Documentation – We help you meet expectations of statutory auditors and regulators

End-to-End Partnership – From IFC/ICFR design to ongoing testing and monitoring

Get Compliant. Stay In Control. Build Trust.

Whether you’re a listed company, a private enterprise, or a growing startup—Internal Financial Controls are a legal and operational imperative.
Let Fincom India help you design, implement, and sustain a strong control environment.