Question

Question No 2:

Khimji Ramdas headquartered in Muscat. The Khimji Ramdas Group (KR) is an established
business conglomerate in the Sultanate of Oman. Trusted and respected for more than a century
(150 years), KR has consistently maintained its leadership position in the Consumer, Telecom,
Infrastructure and Industrial arenas. The vision of Khimji Ramdas is “to drive Oman to the
forefront, through progressive business practice”. The management always ensure the follow up
of the vision of Khimji Ramdas. Out of many businesses, one of its most successful business in
Oman is SPAR. It is a retail outlet with variety of consumer products. Majority of their goods are
imported from European countries. These days COVID 19 is at its peak in European countries.
SPAR is facing difficulty in importing goods to cater the needs of their customer. Muscat is under
lock down and due to unavailability of goods at SPAR, the management is thinking to shut down
their SPAR outlets or to send their employees on forced leaves. SPAR have reliable staff who have
been working with them for several years. Staff working at SPAR are concerned about their health
as well as jobs. Globally many businesses are facing crisis due to the current Pandemic. Worldwide
trade has also been badly affected.
KR management is fully aware of the importance of a strong internal control system. The
management continues to evaluate all business processes along with related policies and
procedures and also implements the recommendations of the internal auditor to further augment
the overall internal controls environment. The primary function of Internal control system is to
provide independent assistance to the management in fulfilling their oversight responsibility to the
shareholders, investors and other stakeholders. The ICS has to take care of the integrity of the
company’s financial statements, their financial reporting processes, the company’s risk
management, and to ensure the company’s compliance with ethical, legal and regulatory
requirements.
a. In your opinion, what necessary steps should be taken by the SPAR management to run the
business in order to serve their clients and employees suffering due to Pandemic. What should be
their strategy to compensate their loss in future?
b. What do you suggest the internal control units of Khimji Ramdas to take appropriate steps to
tackle the expected financial crisis due to COVID 19?
Your answer should be around 400 words for each question.

Answer 1

Answer for the question (a ) Due to the pandemic situation of COVID-19 everyone in this world is facing terrible. Companies are suffering losses due to a lack of operating activities which is also affecting the employees in case of their salaries. Many big companies had to fire many of their employees as they failed to make their payments. If we think from the perspective of an employee, then in what circumstance he or she is going through. They may be facing difficulties in their living. For a moment we can say that they can manage from their past savings, but for how long. After a point in time, it will be hard to purchase their essential commodities. Due to lockdown many all the shops, malls are closed. People are facing problems to get their essential commodities like eatables, medicines, etc. So in the case of SPAR, for a time being, they should change their category of goods and shift to supply essential commodities that are required by the nearest customers through home delivery along with maintaining the hygiene and social distancing norms. Commodities like essential eatable, hand sanitizer, hand wash, mask, hand gloves, etc can be sold for a time being. Employees who take care of the accounts and recording data should work from home. It is ok paying them half or less. Do so employees will somehow manage to survive during this pandemic situation. while doing so, we should keep on mind regarding the safety issues of the booth customers and employees. No employees suffering from diseases, even from fever or cold and cough should be involved. Employes above the age of 60 years, he or she should not be allowed to be present on the premises. Anyone visiting the store should instruct them to wash their hands before entering the store. So it will be the store manager's responsibility to provide handwash or hand sanitizer along with water outside the store.  It is a hard time for everyone, giving up is not the solution. we should think wisely and apply the appropriate strategy to cope up with the situation.

The answer to question (b), It is okay to go through the internal audit process if it doesn't belong to a quarantined zone. The internal control units should take care of the following points below.

1. Firstly, they should not compromise with the hygiene factor. One's life comes first then rest. Taking absolute care regarding hygiene and maintaining the social distance norm they can go forward.

2. The people connected to the process of auditing, should not be suffering from fever, cold & cough during that period. If someone belongs to the quarantined zone, he or she should be avoided.

3. People those who will be attaining the audit, it's the appointer's duty to provide proper sanitization to members before entering the premises.

4. If someone is above the age of 60 years, he or she should not be allowed to be present on the premises.