• Client: Withheld due to a signed NDA.
• Client Location: Sweden & India
• Tools used: Indian Taxation Framework, Transfer Pricing, MIS Systems
• Duration: Multi-year engagement

About the Company:

The client, a global distribution systems provider, undertook an expansion in India. They required expert guidance during their takeover of an Indian entity, ongoing statutory compliances, and long-term accounting and MIS support.

Problem Statement:

The client faced three major challenges during its India expansion: (1) Structuring and executing a time-bound takeover of an Indian entity without prior due diligence, (2) Resolving weak compliance levels and a backlog of statutory obligations, and (3) Establishing strong ongoing accounting, tax, and MIS processes for sustainable operations.

How We Helped:

We provided comprehensive services across three phases of engagement:

• Takeover Support: We planned the taxation of the takeover transaction, advised on post-takeover compliances including withholding tax, DTAA, transfer pricing, valuation, share transfer documentation, and income tax returns. We completed a transfer pricing arm’s length valuation and ensured compliances for both transferor and transferee entities. Our fees for this exercise were approximately INR 3 lakhs.

• Compliance Rectification: We conducted a thorough due diligence of the Indian entity’s records and reported gaps and solutions to the holding company. We cleared a four-year backlog of ROC compliances, streamlined annual audits, and redesigned withholding tax processes. We also completed all pending statutory filings. Our fees for this engagement were approximately INR 3 lakhs.

• Long-term Retainer Services: We helped management set up an accounting team and designed accounting processes and controls. We managed direct tax, indirect tax, and company law compliances on a yearly retainership basis. We prepared monthly MIS of fund flow in formats aligned with group requirements, analyzed variances from budget allocations, and remained available for ongoing support. The monthly retainership fee was approximately INR 75,000.

Long-term Advantages:

Through our intervention, the client successfully completed its takeover and addressed all compliance gaps, bringing the Indian entity up to global standards. The establishment of accounting teams, processes, and MIS reporting ensured sustainable compliance and operational efficiency. The group benefited from accurate financial visibility, smooth statutory adherence, and proactive management of India operations.