Audit Report (Q1 2016)

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Oman National Engineering & Investment Co. (SAOG) Internal Audit Report (1 st Quarter, 2016) Apr-2016 CURRENT QUARTER AUDIT OBSERVATIONS S.No Observation & Impact Recommendation Priority 1 Physical Verification of the Vehicle:- On our review of physical verification of Physical verification of vehicles on H vehicles process, it has been observed that yearly basis should be implemented there is no yearly verification of vehicles. and the follow-up action should be The last physical verification of vehicles has made for corrective action been carried out in December 2013. No physical verification has been carried The vehicles physically available but out in the last two and half years. not in running condition must be Further on our review of last physical disposed off in accordance with verification report, it has been observed company policy. that the vehicles have been physically verified as part of normal fixed assets verification. Considering the value of investment in vehicles, there should be a separate periodical vehicle verification process to ensure that the vehicle is physically available and maintained in good running condition. Impact:- • Non adherence to company policy Management’s Response:- HR:- We planned yearly twice Transport team visit each every branch for the physical verification of vehicles. Finance:- Physical verification of all assets being done every 2 years as per company policy. We shall be doing it in the next two weeks. Internal Audit Response:- As per Finance & Accounts Policy No. 1, Clause 2.2, the physical verification of the vehicles is done once in every two years. - 13 -
Oman National Engineering & Investment Co. (SAOG) Internal Audit Report (1 st Quarter, 2016) Apr-2016 S.No Observation & Impact Recommendation Priority 2 Unassigned shares:- As per the latest Accounts for the period Unassigned shares to be allocated to the respective share holders so that the M ended 31.03.2016, the Company has a total number of shares as per the MSM paid-up Share Capital of RO 10,000,000 records matches with the company’s divided into 100,000,000 shares of 100 records. baiza each. However, on going through the list of shareholders as per MSM, we find that the total Share Capital has been mentioned as RO 9,999,976.100 and the total number of shares has been mentioned as 99,999,761, There is a shortage of 239 shares which are not registered in any name and are unassigned. Impact:- MSM & Company records do not match. Management’s Response:- No response received from the Management. Internal Audit Response:- Though there is no major financial impact, but the number of shares listed on MSM does not tally with the share capital of the company. However, the Legal Advisor has verbally agreed to take up the matter with MSM. - 14 -
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Audit Report (Q1 2016)

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