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L.N. Revathy

Astral to set up internal audit department for Alliance's group cos

Coimbatore , Aug. 10

The Riyadh-headquartered Alliance Holding Company (AHC) has tied-up with the city-based management advisory services firm Astral Consulting and its associate in Riyadh, Alsabti Astral, for establishment of an internal audit department for Alliance's group companies.

The two-year contract would commence from September 1. Astral would, in the first 18 months, depute a four-member team to conduct the internal audit before establishing a full-fledged internal audit department in the concluding phase of the contract. The cost of the service has been fixed at Saudi Riyal (SAR) 1 million (Rs 1.25 crore approximately). "Thereafter, we will be available on call," said Astral's Director, Mr C. N. Srivatsan.

Alliance Holding is a 30-year old industrial group with five subsidiaries, each of which is engaged in trading and manufacture of light, luminaries, paints and ink. The Group's turnover in 2005 was over SAR 500 million.

Mr Hani Adnan Subuh, who has been identified as the internal auditor for the Alliance Group and is currently on a visit to India, said the Group is expanding its operations rapidly and there is a need for establishment of a professional audit department to plug the loose ends and make the operations more cost effective.

The AHC agreement is the consulting firm's second contract in Riyadh. Astral has, according to Mr Srivatsan, done audit for firms in Japan, Taiwan, Bangladesh and Malaysia.

Commenting on the demand for outsourcing such services, Mr Srivatsan said the definition of internal audit has undergone a vast change. "It is no longer limited to verification of internal control. It should provide value additions like risk mitigation and control, necessitating the use of various technological tools."

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