Vous êtes sur la page 1sur 3

The Board feels that sustainable business growth is always possible through rigorous internal control

framework, commitment to our financial lenders with timely payments and inculcating the spirit of
strong ethical behavior in all business transaction that we do

The company has linked part of bonusses of all its sales staff with the amount they have recovered in
the terms of rental payment

Further more the financial transactions that the companies carryout in day to day basis are secured
through effective controls. The petty cash accounts are maintained in different regions and each bill is
reimbursed through proper SOP, s defined. In order to with draw cash for petty cash account the
amount limit is set at 5 lacs.

Once they are used up the amount will be reimbursed by sending the bill reimbursed forms along with
the payment vouchers to the finance department.

There is a defined limit to amount of the financial transaction external procurements at various layers
with in management structure. For example the manager operations of a particular regions can approve
maximum transaction of 10 lacs. Higher approvals will be forwarded to the CEO of the company

However whenever the parts are procured from the Allied engineering and services the parent company
of Allied rental Modaraba there are lesser approval required to complete the transaction

New development include the separate ERP system for manging the inventory for consumable parts
across the regions

Each regions has proper quarterly audits for the parts issued and the used parts are audited against each
new part issued and inventory of unused parts are also checked and any difference is highlighted

Defines, Assigns, and Limits Authorities and Responsibilities—Management

and the board of directors delegate authority, define responsibilities, and use

appropriate processes and technology to assign responsibility and segregate

duties as necessary at the various levels of the organization:

-- Board of Directors—Retains authority over significant decisions and

reviews management’s assignments and limitations of authorities and


-- Senior Management—Establishes directives, guidance, and control to

enable management and other personnel to understand and carry out their internal control

--Management—Guides and facilitates the execution of senior management

directives at entity and its subunits.

-- Personnel—Understands the entity’s standard of conduct, assessed risks

to objectives, and the related control activities at their respective levels of

the entity, the expected information and communication flow, and monitoring

activities relevant to their achievement of the objectives.

-- Outsourced Service Providers—Adheres to management’s definition of the

scope of authority and responsibility for all non-employees engaged.

The management decision making is defined at the various organizational level and proper authority is
delegated among the different levels

The structure is simple straight forward. The site in charges report to the operation in charge of the
regions and he is directly reporting to the Business unit head who is the manager operation of the
regions for approvals. Since the most of the approvals are financial in nature. The approval that require
amount higher than the signatory authority the current manger has it is subsequently moved to the
higher ups for subsequent approvals

As a personnel to minimize the equipment failure the dedicated maintenance staff arranges part in
advance to the schedule maintenance so that risks could be minimized.

The outsourced service providers in the case of allied rental modaraba are the cranes and transportation
that are responsible for mobilizing the rental equipment to the site.It is ensure that the vendors that are
associated have certified cranes and take the ownership of the tasks assigned. Proper mobilization
procedure are followed before mobilizing the rental machinery. The mufflers and external accessories
are dismantled and sent separately. The height of the trucks are calculated so that is in allowable range
and therefore the equipment is mobilized safely

All rental machinery is insured in order to minimize the risks.

Furthermore, the power generating equipment are allowed only to run at the eighty percent of the
designated capacity and 20 percent account for margin of safety to avoid operational risks to the

Ongoing oil sampling is done to determine the aging of the equipment and avoid the premature
equipment failure

Establishes Performance Measures, Incentives, and Rewards—Management

and the board of directors establish performance measures, incentives,

and other rewards appropriate for responsibilities at all levels of the entity,

reflecting appropriate dimensions of performance and expected standards

of conduct, and considering the achievement of both short-term and

longer-term objectives.
The managers of different regions are awarded on the basis of their performance in their respective
regions in the annual get togethers. The selection criteria is their performance in terms of the how much
the cost their incurred in conducting the operations. Their punctuality and how well they responded in
the machine breakdowns. The appraisal forms of each employees is sent to their subsequent managers
and the annual increment is dependent upon these apprisals

The sales staff bonusses are linked to the the sales volume and the amount of the account recievable
they have recovered in their respected regions.They are not paid annual bonus but quarterly bonus
payment are made according to their performance as described