Preventing Financial Fraud – Ensure your organisation is protected

Raghunath. T, Director

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    According to the Federal Trade Commission (FTC), in 2019 a reported $1.9 billion was lost to financial fraud, and that represented an increase of over 15% from the previous year. However, not all financial fraud involves companies losing money in an immediately quantifiable manner. Often, the fraud centers around deception that results in a slow drain of funds or drop in profitability that can span several years. Regardless of the immediate or long-term effect, it’s important to know how to pinpoint—and stop—financial fraud before it affects your bottom line.

    Evolution and Types of Financial Fraud

    The most common types of financial fraud involve inflating earnings through various means. The objective is to keep specific groups of stakeholders happy. This often includes private investors, the stock market, or people or organisations holding the company’s debt. There are several ways this kind of fraud is levied, but some of the most common include:

    • Extending the period of depreciation to delay when the depreciation gets factored into the company’s accounts. Many assets depreciate, steadily, year-to-year. If a valuable asset’s depreciation is left off the books for an extra year or so, stakeholders can be fooled into thinking the company’s financial performance is more valuable than it actually is.
    • Hiding liabilities by shifting debt from the main company to a special purpose entity. This kind of fraud involves creating or maintaining a separate company that the main company can shovel off its debt to. The entity’s balance sheet reflects the debt that used to be on the main company’s records.
    • Recognising revenue early while delaying the recognition of expenses Some companies will enter their revenue but leave out the funds they spent to make that money until a later date. When both are, eventually, included, the books balance true. But before then, it looks like the company’s revenue to expense ratio is a lot higher than it actually is.
    • Incorrect capitalisation of expenses When a company capitalises something, they categorise it as an asset instead of an expense. As a result, it shows up on the balance sheet instead of the income statement, which accounts for expenses. If an investor or other stakeholder were to ask to see the income statement, this potentially sizeable expense wouldn’t be factored in, artificially inflating the company’s performance.
    • Factoring in non-existent inventory to fraudulently reduce the cost of goods sold (COGS). The lower your cost of goods sold, the more efficient your company’s production system looks. To calculate COGS, the Initial inventory is added to Purchases made during the period and the period ending inventory is deducted. So, if a company pretends that they have more inventory at the end of the period, their COGS is lower, making them look better to investors.

    Cases of Financial Fraud

    The history of financial fraud is long and complex, but here are some of the more notable examples.

    One of the largest and the most high profile frauds was that of Enron.

    Enron, which was once a poster boy of Wall Street, was found to have engaged in serious  fraudulent activity which involved keeping large debts off the balance sheets. While the high stock prices did arouse suspicions, it was eventually an internal whistleblower’s revelations that  led to the downfall of the organization. The scandal ended up costing shareholders around $74 billion and resulted in the creation of the Sarbanes-Oxley Act of 2002.

    In 2016, the car manufacturer Volkswagen was embroiled in a scandal that ended in a settlement estimated to be in excess of $25 billion. This was not a direct financial fraud, but nevertheless, one that had serious financial consequences . In order to avoid failing to meet emission standards set by  authorities in the US and other markets, Volkswagen installed software in their vehicles that enabled them to fool emissions testers. Thus, vehicles tended to show far lesser emission levels than actual and were considered roadworthy. Once the cover-up was unearthed, it led to a recall of almost 500,000 vehicles and led to serious financial and reputational losses for the company.

    Other cases like the Lehmann Brothers scandal that triggered the economic recession in 2008, the Wells Fargo scandal and Bernie Madoff’s outrageous Ponzi scheme were also noteworthy, but the unfortunate situation is that despite all efforts from authorities across the world, there are still several cases which continue until this day.

    The most high profile case in recent times was that of the German financial services company Wirecard.

    The Wirecard scandal has been dubbed the “Enron of Germany.” The payment provider falsified their books by reporting money that simply did not exist, executing a fraud that spanned the globe. They owed creditors nearly $4 billion. While the CEO was arrested, their COO, who was considered to be a key figure in this scandal, is still missing at the time of writing this article.

    The Next Big Bubble—Cryptocurrency Fraud

    Cryptocurrencies have reached a total market capitalisation of $600 billion. This is only a small fraction of fiat currencies worldwide, which are valued at around $36.8 trillion, but this doesn’t minimize the potential for cryptos to be exploited by fraudulent actors. There are several reasons why fraudsters may soon target cryptocurrencies.

    No Sovereign Backing

    The value of a currency is driven by the financial health of the body that issues it. For example, the US dollar has more value than the Jamaican dollar, primarily because the US economy is more stable and powerful. The value of each currency is relative, and a country’s gross domestic product (GDP), exports, imports, and other factors all affect how much their money is worth in comparison to those of other nations.

    While Bitcoin does have the likes of Elon Musk endorsing it, there is no sovereign backing for the currency. Therefore, the only thing anchoring their value is the speculation of investors. Without verifiable financial fundamentals, fraudulent actors could swing the value of cryptos without being checked by a regulatory body.

    Volatility

    Bitcoin, which comprises 66% of the total cryptocurrency market cap, went from being valued at $1 to $32 per coin in just three months. Fast-forward to the time of writing, and a single bitcoin is worth over $40,000. However, this is more than 10 times what it was in December 2018 when it dropped to around $3,400.

    The meteoric rise and falls experienced by cryptocurrencies have created an atmosphere where large fluctuations are the norm rather than the exception. Sudden dips or drops in value hardly raise an eyebrow, leaving open the possibility for widespread valuation fraud.

    Lack of Clarity

    There’s a cloud of confusion around how cryptocurrencies work, as well as their vulnerabilities. As a result, many seasoned finance professionals and institutions have warned investors to steer clear of cryptos.

    Cryptocurrency infrastructure depends on people using computers to solve mathematical problems, called hashes, on a register called the blockchain. While blockchain infrastructure itself does a good job of rebuffing hackers, the anonymity cryptos provide, as well as the lack of financial oversight, provides fertile ground for fraud.

    How Can Organisations Ensure That Financial Frauds Are Better Prevented?

    The good news is that financial fraud can be prevented. There are several steps companies can take to prevent fraud from impacting their organisation, its partners, and customers.

    Study the Governance Mechanisms

    The governance infrastructure of a company can form the foundation of a fraud-prevention strategy. This would necessitate strong governance mechanisms at the board level, including the board’s constitution. A thorough examination and evaluation of the constitution is best performed by external experts with the various tasks involved given to separate committees.

    It’s also important to delegate authorities effectively, making sure the right people are in charge of examining the most fraud-sensitive areas of the organisation. One way to make these authorities’ jobs easier is to implement whistle-blower policies that provide protection for those that speak up when they see something wrong.

    To prevent fraud before it takes root, it’s important to perform due diligence on customers and suppliers. In addition, at times, employees also have to be investigated to mitigate the risks posed by internal vulnerabilities. This can be done by limiting the tenure of people in key positions, as well as re-examining the rights of people who have access to sensitive systems.

    Audit Environment

    A healthy audit environment sets the stage for a more thorough and transparent audit procedure. This requires clear and independent external and internal audit charters. In addition, there needs to be open communication between external and internal auditors, including those on audit committees. At times, the roles of audit committee members should be re-evaluated to ensure the integrity of the process.

    Stakeholder Relationships

    Certain stakeholders are naturally more compelled to attempt fraud than others. Here are some questions to ask to make sure your company is remaining vigilant:

    • Are there instances of exceptionally favourable or unfavourable financial terms with banks?
    • Are there suppliers who appear to be getting exceptionally large shares of the business or are paid far higher than market rates?
    • Are there customers who appear to be getting significantly more favourable prices and terms than others?

    These kinds of questions can help identify those who may be more likely to levy fraud against your company. Digging into the answers can help you stay a step ahead.

    Business Model and Sector Performance

    While there are always outliers, in most cases, a company’s performance should be similar to others within its sector. This is typically true because they often have similar target customers and deal with the same, or parallel, micro- and macro-economic factors. Therefore, it’s prudent to raise questions such as:

    • Is the business model clear and sustainable?
    • Is the auditor able to visualise what this company would look like financially in the next 5 or 10 years?
    • Is the company reporting earnings significantly more than its peers? If so, is there a clear competitive advantage that it has that justifies this earning?

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    Cybersecurity in Pandemic time

    Sumesh Krishna, Partner

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      Our business is in the most disruptive times now, and the cybercrimes are also at their peak, giving nightmares to the business owners. Now cybersecurity is one of the priority agenda among all the C-suite members of a business.

      Cybercrimes are emerging to second place, with 33% per cent of all types of business-related fraud. Cybercrimes are accelerated during the pandemic mainly because of remote work scenarios.

      Data breaches, ransomware attacks, BEC and phishing attempts have increased during remote work; according to the sources, over 60000 emails per day include COVID related attachments or malicious websites.

      The following are some examples of socially engineered scams happening in this pandemic time.

      • Mails camouflaged as government announcements: Various mails are focusing on phishing, carrying government institutions logo and unnatural links related to COVID-19.
      • Fake medical advice: – Mails are sent as attachments my mentioning secure cures related to COVID-19 in the name of known medical providers.
      • Charity: Mails in a phishing nature is sent in the name of pandemic to solicit donation
      • BEC Campaigns:- Campaigns are initiated to target the operationally affected industries.
      • Unverified websites and mobile apps: During the pandemic most of the companies are forced to adopt remote working and for this they need to use various IT tools and platforms. Many companies have not checked the reliability of the platforms they are using, which exposes their company to cyberattacks and related frauds.

      As cyberattacks and frauds proliferate during the crisis, companies need to assess their cyber risks and prepare for potential threats regularly.

      Cyber risks are unique to each company based on the activities and the data they are handling; like financial institutions and healthcare companies that handle a large amount of critical personal data. So, the company needs to explore the cyberattacks considering the following points;

      • Technical and operational activity and data attacks
      • Business and financial activity and data attacks
      • Regulatory and compliance-related attacks

      The risk of cyberattacks is high, which results in increased costs to the companies to safeguard them. But investment in resources and related tools for assessing and mitigating cyber risks might be less than the legal and financial consequences caused due to a cyber-attack.

      HLB HAMT has a perfect team and having the right expertise, we helps many organizations in/ by;

      • Developing a risk-based security strategy to strengthen the basic security coverage.
      • Implementing and scaling out security controls.
      • Provide training to the workforce.
      • Choosing the right tools.

       

       

      Would you like to rate us on Google?         

       

      Varun R Chandra
      Varun R Chandra
      07:38 25 Apr 21
      HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
      Giuseppe Assi
      Giuseppe Assi
      06:20 31 Jan 21
      I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
      Mohamed Sheriff
      Mohamed Sheriff
      16:16 28 Jun 20
      Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
      218141 JOSEPH THOMAS
      218141 JOSEPH THOMAS
      16:20 23 Jun 20
      Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
      PMI
      PMI
      07:14 23 Jun 20
      In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
      RAVI CHOKSI
      RAVI CHOKSI
      08:28 21 Jun 20
      Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
      Maharajan Subramaniam
      Maharajan Subramaniam
      18:17 06 Jun 20
      High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
      Mohammed L
      Mohammed L
      08:07 05 Jun 20
      We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
      ROY ROSHAN VIVIAN
      ROY ROSHAN VIVIAN
      06:32 04 Jun 20
      Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
      Basil Daniells
      Basil Daniells
      05:55 03 Jun 20
      I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
      Amar Kashyap
      Amar Kashyap
      19:28 02 Jun 20
      Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
      Radz de Jesus
      Radz de Jesus
      16:03 02 Jun 20
      We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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      A Comparison of Annual Leaves in GCC Countries

      Jahid Tapadar

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        A comparison of annual Leaves in GCC countries

        The Gulf Cooperation’s Council (GCC) is a political and economic union of Arab states bordering the Arabian Gulf. It was established in 1981 and its 6 members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

        There is no doubt regarding the significance of leaves in an employee’s life. It helps in enhancing work productivity, improves the mental health of employees and gives them time to spend with their family. Annual leaves are the most preferred form of leaves for employees, when compared to sick and casual leaves, as it extends to a longer period.

        Annual Leaves in GCC countries

        Annual leave refers to paid time off accorded to employees as a benefit during their services of employment. For every year of service, an employee is entitled to an annual Leave based on the duration of service. As per the provisions of the GCC’s Law, all citizens and expatriate working in a private sector have a privilege to apply for paid vacation for a stipulated period as mentioned in the Law.

        In accordance with articles of employment Law, each GCC country cited when an employee turns out to be eligible for paid annual leave, and for how many days he/she can apply for. The below table will guide you regarding the entitlement of annual leave.

        Entitlement of Annual Leave

        In all the GCC countries, employees shall not work for another employer during his/her annual leave. Also employees are entitled to a cash compensation of his/ her balance annual leave while leaving the company.

        For a comprehensive understanding of each country’s leave policy, please refer to our articles relating to each country.

        Payroll Process

        The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.

        One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.

        As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward. HLB HAMT provides payroll in UAE, Bahrain, Qatar, Saudi Arabia, Kuwait and Oman.

        To know more about our payroll process, click here

        Disclaimer:
        Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.

        Get in touch

        Whatever your question our team will point you in the right direction

        Start the conversation

        A Comparison of Special Leaves in GCC

        Joharan Nachia Mohamed Eusuf

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          The Gulf Cooperation’s Council (GCC) is a political and economic union of Arab states bordering the Arabian gulf. It was established in 1981 and its 6 members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

          In addition to the common leaves which are available in all the countries i.e. Annual Leave, Sick Leave and Maternity leave, there are certain other leaves which are mentioned in relevant countries’ labour law. Here we are comparing the other leave benefits.

          Paternity leave

          Paternity leave is a period of absence from work granted to a father after or shortly before the birth of his child. A male employee in GCC’s Private sector shall now be granted a paid “Paternity leave” for a period mentioned in the laws. The following table will brief about the privileges of leaves in different GCC Countries;

          Marriage Leave

          Marriage leave is the legal right to enjoy leave of absence by an employee due to him or her getting married without loss of wages. This Article is to inform both citizens and expatriates of their rights and privileges as employees in the GCC to ensure that they can maintain a congruous workplace environment. The following table will provide the comparisons between GCC countries relating to marriage leave;

          Hajj Leave

          Hajj is a pilgrimage to Mecca, which all Muslims are expected to make at least once during their lifetime if they can afford to do so. All Muslim employees in the private sector are entitled to certain no. of days of leave, once during their period of their service, to perform the Hajj. To understand more in detail, refer the below table;

          Compassionate Leave

          The Compassionate Leave policy establishes guidelines for providing paid time off to employees for absences related to the demise of immediate family members and close relatives.

          Iddah Leave

          In Islamic legal terminology, Iddah is the period a woman must observe after the demise of her husband. In such instance, she is required to stay at home in mourning and not leave the house except for necessities. For this purpose, Iddah leave is granted to female workers serving across the GCC Countries. The following information will give an understanding of this Law;

          Initially, companies gave importance to just the basic leave requirements, that include annual, sick and maternity leave. Now, they have started to give importance to other prominent instances/ happenings in the lives of employees. This is indeed an encouraging change.

          For a comprehensive understanding of leave policy in GCC countries,  please refer to our article relating to each country.

          Payroll Process

          The process of payroll is little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.

          One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.

          As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.

          To know more about our payroll process, click here

          Disclaimer:

          Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
           

           
          Did you find the blog informative?         

           

          Varun R Chandra
          Varun R Chandra
          07:38 25 Apr 21
          HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
          Giuseppe Assi
          Giuseppe Assi
          06:20 31 Jan 21
          I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
          Mohamed Sheriff
          Mohamed Sheriff
          16:16 28 Jun 20
          Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
          218141 JOSEPH THOMAS
          218141 JOSEPH THOMAS
          16:20 23 Jun 20
          Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
          PMI
          PMI
          07:14 23 Jun 20
          In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
          RAVI CHOKSI
          RAVI CHOKSI
          08:28 21 Jun 20
          Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
          Maharajan Subramaniam
          Maharajan Subramaniam
          18:17 06 Jun 20
          High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
          Mohammed L
          Mohammed L
          08:07 05 Jun 20
          We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
          ROY ROSHAN VIVIAN
          ROY ROSHAN VIVIAN
          06:32 04 Jun 20
          Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
          Basil Daniells
          Basil Daniells
          05:55 03 Jun 20
          I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
          Amar Kashyap
          Amar Kashyap
          19:28 02 Jun 20
          Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
          Radz de Jesus
          Radz de Jesus
          16:03 02 Jun 20
          We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
          More reviews
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          Whatever your question our team will point you in the right direction

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          The need for Due Diligence in Mergers and Acquisition

          Alamin Ahmednegash sied

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            COVID-19 has affected most SME business sectors in 2020 and the current year 2021. The impact of the pandemic still exists in current market which is forcing many businesses to close their businesses and face financial losses.

            With the start of COVID -19 vaccination and re-opening of markets, many companies which were having good market position pre-covid are planning to continue their activities either by merging with other business entities in the same sector or selling out their business.

            At this point, due diligence is required, which is the process of investigation or verification that takes place before entering into an agreement with a target entity to determine the risk and unexpected/unforeseen liabilities which may arise in the future.

            The buyer/investor, before taking over or merging with other entity, needs an assurance of what they are getting and would need to know several important details. Some of them would include:

            • Fair valuation of the entity, what he is buying, nature of the business, and sustainability
            • Asset condition- wear and tear, useful life
            • Aging of receivables and inventory
            • Intellectual property and resources that the entity has ( man-power skill and other resources)
            • Any onerous or binding contracts
            • Liabilities and guarantees made by the entity or group companies
            • On-going litigation and any government proceedings against the entity
            • Relationships with existing customers, major customer dependencies
            • Lead pipelines and prospects of potential customers
            • Unusual income or expenses which result in a misrepresented financial report – window dressing, inter-company activities, etc.
            • Dependence on key employees and the likelihood of their tenure
            • Other financial and operational details

            The due diligence will help the investor to decide whether the deal is valuable while comparing to their portfolio or not. Due Diligence also provides financial forecasts and key assumptions to the buyer to assess the feasibility of the forecast.

            A good Due Diligence will cover wider details that include financial, operational, and technical information – going far beyond financial statements or a statutory audit report.

            Such a Due Diligence will cover the below areas:

            Financial Information

            • Review of historical (say, last three to five years) financials and the current period’s trial balance to give detailed financial ratio analysis and hence, projections of the target future performance.
            • Analyze Product/service/branch wise revenue and profitability and recommendations on key operational decisions such as produce v/s buy and close v/s open markets (or outlets in the case of retail) etc.
            • Details of contracts with customers who have contributed to a large portion of revenue.
            • Give details for pricing mechanism and considerations (including discounts, promotions, etc.) and historical evolution of pricing for all revenue streams.
            • Details of other income, including any financial income, grants, the release of provisions, etc., recorded during the period under review.

            Liabilities and other areas

            • Employee End of service calculations and detailed provision workings
            • Details of any other liabilities with respect to other stakeholders (staff – excluding EOSB, vendors, Federal Tax Authority, shareholders, etc.)
            • Details of any identified off-balance-sheet contingencies and/ or commitments, including any lease obligations
            • Details of any debt from third parties, including related parties with background, and progressive repayment details
            • Documents pertaining to all pending Leases, Guarantees, Major payable commitments
            • Details of pending litigations if any, including litigations pertaining to frauds, IT security breaches, thefts, etc.

            Compliance

            • Review the legal documents Trade licenses, Memorandum of Association(M.O.A.)
            • Review the details of legal due (Tax and other due)

            HLB HAMT has a team of Due Diligence experts who can assist in recognizing possible risks and potential opportunities and make the process of mergers and acquisitions easier to handle, thorough and diligent.

             

             

            Would you like to rate us on Google?         

             

            Varun R Chandra
            Varun R Chandra
            07:38 25 Apr 21
            HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
            Giuseppe Assi
            Giuseppe Assi
            06:20 31 Jan 21
            I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
            Mohamed Sheriff
            Mohamed Sheriff
            16:16 28 Jun 20
            Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
            218141 JOSEPH THOMAS
            218141 JOSEPH THOMAS
            16:20 23 Jun 20
            Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
            PMI
            PMI
            07:14 23 Jun 20
            In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
            RAVI CHOKSI
            RAVI CHOKSI
            08:28 21 Jun 20
            Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
            Maharajan Subramaniam
            Maharajan Subramaniam
            18:17 06 Jun 20
            High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
            Mohammed L
            Mohammed L
            08:07 05 Jun 20
            We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
            ROY ROSHAN VIVIAN
            ROY ROSHAN VIVIAN
            06:32 04 Jun 20
            Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
            Basil Daniells
            Basil Daniells
            05:55 03 Jun 20
            I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
            Amar Kashyap
            Amar Kashyap
            19:28 02 Jun 20
            Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
            Radz de Jesus
            Radz de Jesus
            16:03 02 Jun 20
            We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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            Why RPA is trending among HR executives in the UAE?

            Midhun Menon P

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              Get Free Consultation




              The Human Resources sector in the Middle East is ever so changing, thanks to some close-nit business competition and the arrival of new technologies. Improving Employee Experience is now the top priority of many HR executives around the UAE. If you ask any HR around the globe let alone this region, automation of HR functionalities is the main change they want to be implemented as fast as possible. A study from KPMG reveals that close to 60% of HR executives want an increase in their technology budget to incorporate new technology aids to help them in their processes.

              Among the new age technologies, Robotic process automation (RPA) is one of the most sought after one, as it combines both Artificial Intelligence and Machine Learning to automate some of the complex time-consuming jobs. It is considered one of the excellent methods to improve HR’s data management capability. Software bots is used to automate high volume transactions in the HR department and eliminates any kind of manual intervention. These tasks include onboarding, payroll processing, training scheduling etc. Though the main benefit is the significant reduction of time and error free outputs, RPA also brings down HR Related costs significantly. Moreover, it allows the HR executives to dedicate the time for more valuable activities for the company.

              Recruitment

              If you ask any HR, the biggest time they spend on is going through hundreds and thousands of resumes. A lot of them will be a waste of time. With the help of pre-programmed RPA Bots, we can easily scan these resumes and compare with your put-up Job description and select the best available candidates for the job interview. The system can also schedule the interview based on the panel’s availability and convenience and intimate the candidate about the same.

              Once, the candidate is selected, the next job of the HR is sending the offer letter. There will be a lot of rules and regulations that must be incorporated into the offer letter and is subjected to change based on the selected person’s job role. The Bots can check the job role and prepare an appropriate offer letter suiting the same. These applications can also be manually controlled if needed from time to time.

              Next process is onboarding the selected person. Several sections of the departments would be involved in the onboarding, from creating a company email id, giving guidance documents, allocation of systems to installation of software, Access Card initiations, etc. Company can create a programmed workflow Bots to perform all the above-mentioned tasks, which will complete the onboarding process in a matter of minutes upon a new joiner’s induction.

              Payroll & Data Management

              Another major area where automation can be of a big help is Payroll Preparation & Data Management. An employee’s data should be always up to date and error-free. Through proper data cleansing processes, HR executives can easily filter unwanted data of past employees as well. The larger the size of the company, more complex would be the data management process. The Bots can take data from various database systems and create or remove data based on a particular employee. This will ensure the much-needed data consistency across departments.

              In the case of Payroll preparation process, Bots can first check through to the employee attendance logs and mark out the inconsistencies and absence accordingly. The system can then prepare the payroll accordingly and automate lot of manual data entries and not to mention countless work hours to prepare the same. Just to add to it, other expenses like travel receipts and outstanding payments can be added against an employee automatically.

              Although, there are still plenty of HR-related RPA use cases like employee training, exit management, preparing reports, etc., Recruitment and Payroll & Data Management are the two areas where RPA can be of maximum help. It Is extremely cost-effective and according to studies, saves around 50 to 70 percent of an HR executives time with automation.

               

              Would you like to rate us on Google?         

               

              Varun R Chandra
              Varun R Chandra
              07:38 25 Apr 21
              HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
              Giuseppe Assi
              Giuseppe Assi
              06:20 31 Jan 21
              I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
              Mohamed Sheriff
              Mohamed Sheriff
              16:16 28 Jun 20
              Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
              218141 JOSEPH THOMAS
              218141 JOSEPH THOMAS
              16:20 23 Jun 20
              Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
              PMI
              PMI
              07:14 23 Jun 20
              In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
              RAVI CHOKSI
              RAVI CHOKSI
              08:28 21 Jun 20
              Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
              Maharajan Subramaniam
              Maharajan Subramaniam
              18:17 06 Jun 20
              High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
              Mohammed L
              Mohammed L
              08:07 05 Jun 20
              We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
              ROY ROSHAN VIVIAN
              ROY ROSHAN VIVIAN
              06:32 04 Jun 20
              Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
              Basil Daniells
              Basil Daniells
              05:55 03 Jun 20
              I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
              Amar Kashyap
              Amar Kashyap
              19:28 02 Jun 20
              Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
              Radz de Jesus
              Radz de Jesus
              16:03 02 Jun 20
              We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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              Why should UAE firms think of Implementing RPA beyond their Accounting Department?

              Vimal Ramachandran, Director

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                Get Free Consultation




                We all know the impact Robotic Process Automation makes in finance and accounting departments of an enterprise. It is sort of a perfect department for RPA implementation as it has a lot of repetitive human tasks such as invoice creation and procession, digital signatures as well. But in these COVID-19 affected times, more companies are realizing RPA can be as useful for their other departments as well.  Earlier adopters are using RPA for improving their business processes and to streamline their operational workflows. Moreover, they are making this technology as an important tool to gain competitive advantage over their rivals and to increase their go-to-market time. RPA applications, these days can also be an indicator of how digitally mature a company is.

                I am going to throw some light on where exactly RPA can be used other than to bolster financial performance of a company. Let us begin with the biggest asset of a company, their employees. In this era of Work from Home, induction & training of new employees can be a difficult job for HR managers. With the use of RPA bots, these processes can automate, and the employees will feel connected with the organization. This can also lessen the burden on HR managers as the whole induction and training process would be automated; also such Bots can be used to engage the employees in many ways.

                These days, it is also extremely important to resolve any customer related issues swiftly. According to a recent study, about 60% of the customers believe that an ultra-quick resolution to their issues is the major factor or aspect they look in a vendor. If you can reduce the time that you spend in handling a particular customer, it can lead to a better customer experience. This can be achieved through organizations automating the blind spots in customer service processes and targeting faster outcomes in certain areas of the same. RPA applications will also remove any potential bottlenecks and thereby ensure high levels of customer satisfaction.

                Another area of automation a company can consider is the multi-level approval processes required in order management. These processes are extremely time taking and will involve lot of manual works including the data entry to going through scrutinization and change processes to the final approval with the digital signature. Normally, all these steps require a lot of manual intervention and more importantly induced communications through email or chat reminders. All such steps can be defined and automated using RPA bots.

                From logistics to healthcare, industries are on the lookout for innovative solutions that can lessen the burden on their employees and at the same time with a faster & error-free output. Industries such as Oil & Gas are automating lot of their daily works through RPA making it completely a paperless office. This is just not restricted to financial accounting automation, organizations are slowly expanding RPA to other section of their businesses, particularly in the high-order, high-value use cases. Such changes can help transform their business workflows altogether.

                 

                 

                Would you like to rate us on Google?         

                 

                Varun R Chandra
                Varun R Chandra
                07:38 25 Apr 21
                HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
                Giuseppe Assi
                Giuseppe Assi
                06:20 31 Jan 21
                I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
                Mohamed Sheriff
                Mohamed Sheriff
                16:16 28 Jun 20
                Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
                218141 JOSEPH THOMAS
                218141 JOSEPH THOMAS
                16:20 23 Jun 20
                Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
                PMI
                PMI
                07:14 23 Jun 20
                In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
                RAVI CHOKSI
                RAVI CHOKSI
                08:28 21 Jun 20
                Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
                Maharajan Subramaniam
                Maharajan Subramaniam
                18:17 06 Jun 20
                High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
                Mohammed L
                Mohammed L
                08:07 05 Jun 20
                We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
                ROY ROSHAN VIVIAN
                ROY ROSHAN VIVIAN
                06:32 04 Jun 20
                Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
                Basil Daniells
                Basil Daniells
                05:55 03 Jun 20
                I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
                Amar Kashyap
                Amar Kashyap
                19:28 02 Jun 20
                Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
                Radz de Jesus
                Radz de Jesus
                16:03 02 Jun 20
                We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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                Process Mapping and its Importance in ERP Implementation

                Komal Darshak Koshiya, Senior Auditor

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                  Get Free Consultation




                  What is Process Mapping?

                  Process Mapping means flowcharting the critical business processes using a more hierarchical approach. Business Process Mapping is a framework, which is used to create visual representations of business processes.  Business process maps reveal the relationship between operational steps and inputs to produce an end-product or service.  The main purpose of business process mapping is to promote transparency and allow organizations to improve upon their current practices by creating a clear, detailed visual representation of workflows.

                  The best business process Mapping strategies involve both a current state and future state analysis to clearly define how a new ERP system can get them from point A to point B and to help anticipate the impacts of the new system moving forward. There are three major phases in process mapping:

                  • Creating the “As-Is” model,
                  • Creating the “To-Be” model, and
                  • Bridging the Chasm, or in other words, getting from the here and now to the future state.

                  Creating the “As-Is” model – Define Current State Business Processes

                  The first step in determining where you want to be is to understand where you are. Knowing how your business currently operates and having business practices clearly documented is important for several reasons.  Documenting your current state business processes often reveals inefficiencies and opportunities for improvement, as well as unique differentiating factors that give your organization an advantage over competitors.

                  Process maps should be created for each function that can be summarized up to the primary ERP-related process flows as they are being performed currently.  These process maps should be created at the functional level to assure that any sub-processes are also covered.  Within each functional area, each step isolates an individual process into a workflow diagram for a clear depiction of a process or series of parallel processes.

                  Why do an As-Is model at all? Sometimes processes have evolved to solve a problem with a particular customer, employee, or manager. Understanding why the process is performed in a particular way will permit the elimination of non-value-added work during the last phase of process mapping, the process simplification phase.

                  Creating the “To-Be” model – Define Future State Business Processes

                  These phase represent the way that the business processes will be structured in the ERP-enabled state. The purpose of the ERP system is to automate certain business processes according to the “To Be” maps.  Therefore, the ERP system must personalized or customized to accommodate those intended process flows.

                  Having a visual representation of the current processes, one can identify delays, bottlenecks, and other inefficiencies. Then, create a future state process map that eliminates these issues. It’s also important to understand the future direction of the business and any additional business capabilities required for the foreseeable future. These considerations should also be reflected in the future state documentation.  As is the case with all stages of business process reengineering, future state process mapping should be performed at a technology-agnostic level that does not yet address how processes will be completed within a specific ERP system.

                  Bridging the Chasm

                  In this phase, all potential gaps, problem, issues and risks are both identified and prioritized.  Resolution efforts are detailed; including resource, cost and time requirements.  Responsibility for and ownership over each issue is allocated.

                  Importance of Process Mapping in ERP Implementation

                  Enterprise resource planning (ERP) system implementations typically require several modules to be implemented and integrated into the business. Having clearly defined current and future state business processes documentation is a distinct advantage that reduces the time, effort and cost associated with business management software initiatives. You’ll need to have a clear understanding of where you are, and where you want your business to be in the future before you can start planning your ERP journey.

                  Companies need to understand what they’re changing from and what they’re changing into. Only once they have this understanding can they plan how to change to the intended, restructured state. When this type of planning is overlooked, implementation failure is a likely and unfortunate result. Successful ERP implementations are not only driven by software but also by business processes.  Companies assume that the new system will make their processes easier to perform, without first examining their actual processes. Business process mapping is one of the most critical aspects of implementation projects.

                   

                  Would you like to rate us on Google?         

                   

                  Varun R Chandra
                  Varun R Chandra
                  07:38 25 Apr 21
                  HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
                  Giuseppe Assi
                  Giuseppe Assi
                  06:20 31 Jan 21
                  I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
                  Mohamed Sheriff
                  Mohamed Sheriff
                  16:16 28 Jun 20
                  Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
                  218141 JOSEPH THOMAS
                  218141 JOSEPH THOMAS
                  16:20 23 Jun 20
                  Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
                  PMI
                  PMI
                  07:14 23 Jun 20
                  In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
                  RAVI CHOKSI
                  RAVI CHOKSI
                  08:28 21 Jun 20
                  Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
                  Maharajan Subramaniam
                  Maharajan Subramaniam
                  18:17 06 Jun 20
                  High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
                  Mohammed L
                  Mohammed L
                  08:07 05 Jun 20
                  We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
                  ROY ROSHAN VIVIAN
                  ROY ROSHAN VIVIAN
                  06:32 04 Jun 20
                  Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
                  Basil Daniells
                  Basil Daniells
                  05:55 03 Jun 20
                  I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
                  Amar Kashyap
                  Amar Kashyap
                  19:28 02 Jun 20
                  Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
                  Radz de Jesus
                  Radz de Jesus
                  16:03 02 Jun 20
                  We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
                  More reviews
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                  Tax Updates in the UAE – What you need to know?

                  Jay Krishan, Partner

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                    Get Free Consultation




                    HLB HAMT Partner Jay Krishnan has detailed some important updates on VAT applicability for real estate, medical equipment, ESR and excise tax in our latest edition of our Insight supplement.

                    TAX UPDATES:

                    Since the COVID-19 pandemic, there has been a huge surge and growth in E-commerce, with more and more consumers spending online and we now live in an on-demand digital economy. However, there have been some important changes made in relation to VAT when it comes to E-commerce. The VAT Guide on E-commerce was issued by the FTA in August 2020, and some of the changes include:

                    • Goods purchased online that are to be exported are eligible for zero rate VAT if certain conditions are fulfilled.
                    • Supply made by a non-resident to a non-registered person in UAE, the non-resident supplier is required to register for VAT and to account for VAT on supplies.

                    Real Estate – Owners Association & Management Entity:

                    The Real Estate market is a key component and cornerstone of the UAE economy – and there have been very important updates made in this industry in relation to VAT. Pursuant to the change in law concerning ownership of jointly owned properties in Dubai:

                    • All rights and obligations of OA will shift to Management Entity
                    • All OA should deregister from UAE VAT
                    • Non-compliance by OA will attract a penalty of AED 10,000
                    • Management entities must ensure compliance with UAE VAT regulations or else hefty penalties will be imposed.

                    Zero Rating of Certain Medical Equipment:

                    The COVID-19 pandemic triggered an exponential increase in the need for PPE, face masks, and other medical equipment. However, from February 28th, 2021 there will now be a 5% VAT on some medical imports.

                    • Supply or import of certain medical equipment during September 01, 2020, to February 28, 2021, will be zero-rated.
                    • Any supply or import outside the aforesaid period will be subject to 5% VAT.
                    • Medical face masks, Half-filtered face mask, Non-medical textile face mask, Single-use gloves, Certain categories of chemical disinfectants and antiseptics intended for use on human body is qualified for the above exemption.

                    FTA Administrative Update:

                    • FTA updated the VAT refund template.
                    • Refund claim for multiple tax periods can now be applied by VAT registrants through a single VAT refund template.

                    EXCISE: Excise Tax Obligations for Warehouse:

                    • Excise Taxpayers operating in a Designated Zone (DZ) must appoint a certified external auditor to audit opening stock on January 01, 2021.
                    • The taxpayer must fill Opening Stock Declaration (EX024) and submit the same with the auditor report no later than January 31, 2021.
                    • Non-compliance will set the stock held in DZ to zero and restrict the taxpayer from moving the stock out of DZ.
                    • If Warehouse keepers hold stock for owners who are not registered for Excise Tax with the FTA, they (the Warehouse Keepers) will need to complete the NonRegistered Excise Stock Movement Declaration form (EX204A).
                    • This is a one-off exercise to be completed during January 2021.

                    Economic Substance Regulation:

                    As per the Economic Substance Regulations (ESR), all Licensees are required to notify the Regulatory Authority (typically the license issuing authority) annually on the following aspects:

                    • Whether or not the Licensee is carrying on a Relevant Activity
                    • If the Licensee is carrying on a Relevant Activity, whether all or any part of the Licensee’s gross income in relation to the Relevant Activity is subject to tax in a jurisdiction outside the United Arab Emirates (UAE)
                    • The date of the end of the Licensee’s Financial Year (Accounting Reference Period)
                    • In August 2020, the UAE Cabinet issued updated economic substance regulations which revoked and replaced the previous economic substance regulations introduced in 2019.

                    KEY CHANGES:

                    • Appointment of FTA as the authority for the assessment of compliances by licensees, imposing penalties for non-compliance, hear on appeals filed by licensees.
                    • Licensees exclude natural persons, sole proprietors, trusts, and foundations.
                    • The deadline for filing an ESR report for a Licensee with a financial year commencing on or after January 01, 2019 and ending on or before December 31, 2019 is December 31, 2020.
                    • This deadline is extended to January 31, 2021.

                    UBO:

                    Unless exempt under Beneficial Owner Procedures (the Regulations) companies licensed to carry on business in the UAE must maintain a register of partners or shareholders and a register of Ultimate Beneficial Owners (UBO) and submit UBO information to the relevant registrar or licensing authority (Registrar).

                    UBO are:

                    • Owns or controls 25% equity shares or voting right of at least 25% or
                    • The natural person who exercises control over the entity or
                    • The natural person who is responsible for the senior management of the entity.

                    Deadline for filing of register is October 27, 2020. Any changes to the information contained in the registers must be updated and notified to the Registrar within 15 days of such change. Regarding companies that are under dissolution or liquidation, the appointed liquidator has an obligation to provide a true copy of the updated UBO register to the Registrar within 30 days of the liquidator’s appointment.

                     

                    Would you like to rate us on Google?         

                     

                    Varun R Chandra
                    Varun R Chandra
                    07:38 25 Apr 21
                    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
                    Giuseppe Assi
                    Giuseppe Assi
                    06:20 31 Jan 21
                    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
                    Mohamed Sheriff
                    Mohamed Sheriff
                    16:16 28 Jun 20
                    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
                    218141 JOSEPH THOMAS
                    218141 JOSEPH THOMAS
                    16:20 23 Jun 20
                    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
                    PMI
                    PMI
                    07:14 23 Jun 20
                    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
                    RAVI CHOKSI
                    RAVI CHOKSI
                    08:28 21 Jun 20
                    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
                    Maharajan Subramaniam
                    Maharajan Subramaniam
                    18:17 06 Jun 20
                    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
                    Mohammed L
                    Mohammed L
                    08:07 05 Jun 20
                    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
                    ROY ROSHAN VIVIAN
                    ROY ROSHAN VIVIAN
                    06:32 04 Jun 20
                    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
                    Basil Daniells
                    Basil Daniells
                    05:55 03 Jun 20
                    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
                    Amar Kashyap
                    Amar Kashyap
                    19:28 02 Jun 20
                    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
                    Radz de Jesus
                    Radz de Jesus
                    16:03 02 Jun 20
                    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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                    Top RPA Trends among UAE Companies

                    Vimal Ramachandran, Director

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                      More and more companies are adopting Robotic Process Automation (RPA) as a tool to automate their repetitive tasks and to streamline their processes in general. Moreover, COVID-19 has accelerated the adoption a tad higher; thanks to unavailability of the workforce and keeping touchpoints as minimal as they can. According to a study from Gartner, the companies around the world would spend nearly $1.5 billion on RPA software alone this year, and not only that, this figure will also exponentially grow in the next foreseeable future. Middle East is often considered as a hub of innovative adoptions and here too the studies say almost 20% growth for RPA related software this year.

                      Hyper Automation

                      In simple words, Hyper Automation is a more advanced and smarter version of the traditional RPA. Hyper Automation is generally adopted by large-scale companies to process large volumes of their business data seamlessly across many departments. It constitutes of artificial intelligence, business intelligence and traditional RPA tools, enabling automation of execution of any repetitive tasks. Hyper Automation also dynamically discovers new business processes by creating bots on the way. The process helps in automating undocumented processes that rely on unstructured data inputs. The technology also allows businesses to adopt automation at a much higher level than traditional RPA automation, meaning more complex tasks can be streamlined effectively. This means that DevOps management, overall monitoring, integration of third-party tools, all can be automated at once.

                      Advanced Autonomics

                      For companies trying to cut of their labor costs, robotic automation will offer an immediate value as it automates lot of repetitive tasks. Studies have shown that the average cost of developing a BOT is only one third of the cost per a full time equivalent (FTE) person. There is also the process of getting insights from Bots, as it captures everything that it encounters along the way. This can lead to getting meaningful insights and helps business in where all they can improve in their operation processes.

                      The next level of RPA vendors is concentrating on developing applications with advanced data mining capabilities with the help of artificial intelligence technology. This means more and more complex processes can be automated, irrespective of the level of unstructured data present in it.  For that an organization might have to re-engineer their existing processes and bring in strong governance framework and change management controls.

                      AI Security

                      We have discussed about Hyper Automation and advanced autonomics; all these technologies offer great value for money for the companies and transform their business to an altogether different level. But all these come with a price. Security is a big concern for industries across any vertical or size, but it is a fact that automation can also bring new risk. Identifying potential vulnerabilities and security gaps would be a priority for many companies.

                      AI driven RPA powered security systems is going to be a trend for the future; AI training data, ML models and training pipelines can be automated through RPA. Cybersecurity processes can be automated and with the help of ML, different attack patterns can be understood and detected at an early stage. Some of the examples include VPNs providing secure remote access to the RPA BOTs and anti-viruses, anti-spyware applications used in RPA security to secure the system from various viruses and spyware cyber-attacks.

                       

                       

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                      Varun R Chandra
                      Varun R Chandra
                      07:38 25 Apr 21
                      HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
                      Giuseppe Assi
                      Giuseppe Assi
                      06:20 31 Jan 21
                      I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
                      Mohamed Sheriff
                      Mohamed Sheriff
                      16:16 28 Jun 20
                      Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
                      218141 JOSEPH THOMAS
                      218141 JOSEPH THOMAS
                      16:20 23 Jun 20
                      Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
                      PMI
                      PMI
                      07:14 23 Jun 20
                      In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
                      RAVI CHOKSI
                      RAVI CHOKSI
                      08:28 21 Jun 20
                      Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
                      Maharajan Subramaniam
                      Maharajan Subramaniam
                      18:17 06 Jun 20
                      High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
                      Mohammed L
                      Mohammed L
                      08:07 05 Jun 20
                      We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
                      ROY ROSHAN VIVIAN
                      ROY ROSHAN VIVIAN
                      06:32 04 Jun 20
                      Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
                      Basil Daniells
                      Basil Daniells
                      05:55 03 Jun 20
                      I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
                      Amar Kashyap
                      Amar Kashyap
                      19:28 02 Jun 20
                      Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
                      Radz de Jesus
                      Radz de Jesus
                      16:03 02 Jun 20
                      We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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