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All modulesModule 04 · Legal & Entity

What the contract says and what the ledger recorded, compared without anyone asking.

Legal keeps the agreement. Finance keeps the invoice. They are rarely read side by side, which is how escalations go unbilled, credit periods quietly stretch and a related-party transaction gets approved after it has already happened. PROFINLEX holds both records in one place and tests them against each other.

Module
Legal, Contract & Entity Management
Checks applied
6 capability groups
Frameworks
7 referenced
What this module does

Capabilities, stated as behaviour rather than features.

01

Contracts with their obligations extracted

Payment terms, credit period, escalation formula and date, renewal and notice windows, indemnity caps, liquidated damages triggers and termination rights are pulled out as dated obligations rather than left inside a PDF nobody reopens.

02

Legal to financial reconciliation

Contracted rate against invoiced rate. Agreed credit period against actual collection. Due escalation against escalation billed. Cap on liability against the provision carried. Where the two records disagree, the specific clause and the specific entry are shown together.

03

Related-party register mapped to statute

Parties identified under s.2(76) and Ind AS 24, transactions classified by nature, tested against s.188 approval requirements and arm's-length documentation, with the approval trail - audit committee, board, shareholder - recorded against each transaction and its date.

04

Entity and shareholding structure

Subsidiaries, associates and joint ventures with holding percentages, directors and key managerial personnel with DIN and DIR-3 KYC status, charges registered and satisfied, and the statutory registers under s.85, s.88 and s.170 maintained rather than typed up when asked for.

05

Board and committee governance

Meeting calendar under s.173 and the applicable committee requirements, agenda and minutes repository, and resolutions linked to the transactions they authorise - so an approval can be traced from the entry back to the resolution number.

06

Litigation and contingent liability register

Matters logged with the forum, the amount involved, the assessed likelihood and counsel's position, feeding the contingent liability note directly instead of being collected after the draft financials have been circulated.

Working paper W-5

The same certification sequence, run on this module's own lines.

Rows are verified one at a time, exceptions are held with the reason attached, and the readiness figure reflects only what has actually passed.

W-5Contract to ledger comparison
Entity
Illustrative entity
Period
Q3 FY 2025-26
Basis
Legal & Entity

Supply agreement SA-114 - rate as contracted

₹ 62,40,000
SA-114 · Clause 4.2Queued

Annual escalation at 6% due from 01 Oct

₹ 3,74,400
SA-114 · Clause 4.5Queued

Credit period - 45 days as agreed

₹ 18,26,000
AR-AGE · Clause 6.1Queued

Director advance - approval trail

₹ 12,00,000
RPT-0042 · s.188Queued

Charge on plant and machinery - CHG-1 filed

₹ 3,20,00,000
CHG-1 · s.77Queued

Indemnity cap vs provision assessed

₹ 25,00,000
LIT-08 · Ind AS 37Queued
Audit readiness0%

0 of 6 lines certified · verification running

Verifying line 1 of 6
What it raises without being asked

Flags this module produces on its own.

Each of these is a rule with a defined trigger. When it fires, the line is held, the reason is written, and an owner is named - before the position reaches a report.

  • An invoice raised at a rate the contract does not support
  • A contractual escalation due but never billed
  • A related-party transaction recorded before its approval date
  • A renewal or notice window closing inside the next quarter
  • A charge satisfied in fact but still open on the register
  • An indemnity exposure with no provision assessed against it
What it makes unnecessary

Work this module retires.

These are not inefficiencies to be improved. They exist only because the system of record could not answer the question, so someone built a file beside it.

  • A contract folder nobody opens after signing
  • Related-party lists assembled at year end from memory
  • Renewal dates tracked by whoever negotiated the deal
  • Contingent liability notes gathered over mail in March
Module 04

See legal & entity running against your own period.

We will take a period you have already closed, apply this module's checks to it, and show you every line it would have held - with the standard it was tested against and the evidence it would have asked for.

  • No longer needed: a contract folder nobody opens after signing
  • No longer needed: related-party lists assembled at year end from memory
  • No longer needed: renewal dates tracked by whoever negotiated the deal