Financial service
Overview of the Sector
The Energy and Natural Resources industry spans conventional and renewable energy, oil and gas, utilities, and resource management entities — all of which operate in a high-stakes, capital-intensive, and highly regulated environment. These businesses manage long-term infrastructure assets, complex supply chains, and multi-jurisdictional compliance obligations, making robust audit mechanisms indispensable.
Financial complexities in the sector arise from diverse revenue models — including regulated tariffs, energy trading, long-term power purchase agreements (PPAs), and government subsidies. Projects often involve extensive gestation periods with large-scale capital expenditure, necessitating precise capitalization of costs, interest during construction (IDC), and impairment testing of energy assets. Revenue recognition under Ind AS 115 requires close attention to performance obligations and delivery-based billing milestones, particularly for EPC contracts and capacity-based incentives.
Audit procedures are further complicated by variable input costs (such as fuel, wind, solar irradiance), operational risks, and regulatory mechanisms like Renewable Energy Certificates (RECs), feed-in tariffs, and cross-subsidy charges. Internal audits must evaluate procurement processes (especially fuel and equipment), project cost control, generation efficiency, energy accounting, and subsidy claims under government schemes.
Entities are subject to compliance under the Electricity Act, Petroleum and Natural Gas Rules, Environment Protection Act, and sectoral regulations issued by CERC, SERCs, and other authorities. Additionally, GST, TDS on royalty payments, and foreign exchange exposures in fuel imports and equipment sourcing add layers of tax and financial complexity. ESG reporting and sustainability audits are becoming increasingly critical, particularly for listed companies and those with global financing arrangements.
In an industry where infrastructure reliability, environmental responsibility, and fiscal prudence intersect, auditing plays a vital role in ensuring regulatory alignment, financial transparency, and strategic resilience — forming the foundation for long-term, sustainable energy and resource management.
The financial services industry — comprising banks, NBFCs, insurance companies, mutual funds, fintech platforms, and capital market intermediaries — operates within a highly regulated and risk-sensitive environment. At P. Srinivasan & Co., we offer specialized audit services designed to meet the unique regulatory, operational, and financial reporting requirements of this sector. Our audit approach addresses key complexities such as revenue recognition from interest, fees, and commissions; provisioning under the Expected Credit Loss (ECL) model of Ind AS 109; fair valuation of financial instruments; and rigorous assessment of internal risk controls.
We conduct statutory and internal audits that cover loan book verification, asset classification, NPA provisioning, investment portfolio audits, and treasury operations. For fintechs and NBFCs, we provide audit oversight over digital lending processes, system-based controls, and compliance with RBI’s digital lending and KYC norms. Our audit procedures also include verification of policyholder fund segregation, claims provisioning, and actuarial assumptions for insurance companies.
Given the sector’s complex regulatory ecosystem, we ensure full compliance with guidelines issued by the Reserve Bank of India (RBI), SEBI, IRDAI, and PFRDA, along with applicable provisions under the Companies Act, Income Tax Act, and GST laws. We also assist in preparing audit reports required for statutory filings, investor due diligence, and regulatory inspections.
With a control-focused and risk-based audit methodology, P. Srinivasan & Co. helps financial service providers strengthen governance, ensure transparency, and build stakeholder confidence — enabling sustainable growth in a dynamic financial landscape.
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Systems & process setup & implementation
We design and create audit plan and execute audit procedures which enables our clients to have the audited reports at their fingertips -
Tax advisory
Designed to help clients understand and minimise the tax challenges that Educational Institutes face -
Authenticating Records
We look into the accounting records and provide valuable feedback and help the organisations win against any hurdles that come their way -
Strategize Growth
We help with people management, business planning and brainstorming ideas effective for the growth and development of the business/ organisations. -
Mergers & Acquisitions
As a Chartered Accountant, we play a crucial role in guiding businesses through the complexities of mergers and demergers.