Chintan leads the Governance, Risk, and Compliance (GRC) division at Kreston OPR and is instrumental in driving the firm’s technology consulting to success. With over a decade of experience in the field, he has consistently sharpened his skills and made significant contributions to the industry. As a qualified professional accountant, Chintan is further broadening his expertise by studying Business Analytics and AI/ML at the prestigious Indian School of Business, known for nurturing future leaders in business innovation. lFor insights from his journey or to connect, email chintan@kopr.co.in
Khushal is a key technical consultant at Kreston OPR, specializing in Analytics and Automation within the technology consulting sector. With over seven years of consulting experience, he has been instrumental in implementing process automation across various industries and providing analytics consultancy to clients. His hands-on experience and in-depth knowledge make him a pivotal figure in driving innovation and efficiency improvements.
How Robotic Process Automation could transform workplaces
March 11, 2024
Robotic Process Automation (RPA) could revolutionise the way we work, reshaping the landscape of work by automating repetitive tasks.
This innovation opens doors to strategic thinking, innovation, and improved organisational interactions. The essence of RPA is simplifying processes to maximise efficiencies within workplaces, particularly in sectors like finance, where it introduces new opportunities for Chief Financial Officers (CFOs) and their teams.
The evolution and expansion of Robotic Process Automation
RPA’s journey is marked by constant innovation, integrating with Artificial Intelligence (AI) and Machine Learning (ML) to handle complex tasks. The transition to cloud-based RPA solutions democratises this technology, making it accessible to businesses of all sizes. RPA evolves to offer industry-specific solutions, tailoring its capabilities to meet the unique challenges of various sectors.
Real-world applications and benefits of Robotic Process Automation
RPA showcases significant benefits across different industries:
Efficiency and productivity: Automating tasks leads to substantial time savings, exemplified by a healthcare provider that automated patient insurance verification to save over 10,000 employee hours annually.
Cost savings: Organisations report at least 10% in cost reductions, with a financial institution experiencing a 20% decrease in loan processing costs through RPA.
Accuracy and compliance: RPA minimises human errors and ensures regulatory compliance, as demonstrated by a bank that streamlined its KYC processing.
Enhanced customer experience: Automating back-office tasks allows for improved customer service, evidenced by a retail chain that reduced order processing time by 30%.
Finance sector transformation through Robotic Process Automation
RPA holds transformative potential for the finance sector, facilitating a shift towards strategic excellence. Automating 40% to 60% of finance processes can significantly impact data management, risk assessment, and overall strategic decision-making. Areas such as Purchase to Pay, Order to Cash, Record to Report, and Treasury Management are ripe for automation, leading to enhanced efficiency, accuracy, and strategic insights.
Overcoming challenges and setting up for success
Implementing RPA comes with its set of challenges, including employee concerns, process selection, and setting realistic expectations. A comprehensive strategy addressing these aspects ensures smooth adoption and maximizes the benefits of RPA.
Collaborate with Kreston Global RPA experts
Kreston OPR Advisors LLP provides end-to-end RPA implementation services, guiding organisations through identifying automation areas, deploying RPA solutions, and ensuring smooth transitions and continuous support. Their approach combines hyper-automation expertise with strategic planning to maximise returns on investment.
Embracing RPA for your business
RPA is predicted by the authors to be an essential part of the future of work. By integrating RPA effectively, organisations can achieve remarkable improvements in efficiency, cost management, compliance, and customer satisfaction.
If you would like to talk to one of our experts about RPA efficiencies, please get in touch.
Darshil Surana is a seasoned professional and Partner at O. P. Rathi & Co., where he has been instrumental in driving business process improvements and implementing strategic digital transformations since April 2023. With a diverse skill set that includes internal audits, information technology, and management accounting, Darshil is known for his expertise in financial advisory and analytics across Ahmedabad’s dynamic market.
Before his current role, Darshil was the Proprietor of Darshil Surana & Associates, a testament to his entrepreneurial spirit and his proficiency in strategic planning, financial analysis, and comprehensive taxation. His background also includes pivotal roles in Intech Systems, where as SBU Head and Delivery Head, he led cross-functional teams and managed the strategic business unit performance for MS Dynamics NAV/BC.
Darshil’s ascent from a Functional Consultant to a Project Manager reflects his exceptional leadership and project management skills. His early career foundations were laid at CA Pradeepkumar H. Shah & Co., where he honed his accounting and auditing abilities during his articleship. Darshil Surana’s career is a blend of robust professional experiences and a deep understanding of the intricacies of financial and business strategies.
India’s Digital Personal Data Protection Act, 2023 (DPDP Act)
November 3, 2023
The Digital Personal Data Protection Act, 2023 (DPDP Act) was passed in India on 11th August 2023. The Act seeks to protect the personal data and privacy of Individuals in this digital world. This is a landmark legislation which can empower individuals and the State to ensure data privacy. The Act lays out a framework to ensure the utilisation of data for appropriate and designated purposes and avoid misuse. Darshil Surana at Kreston OPR Advisors explains.
Definitions of The Digital Personal Data Protection Act
The Act emphasises on “Protection of Digital Personal Data”. Hence, any person’s data in the digital world needs to be safeguarded by those responsible for collecting, storing, and processing them. First, let us try to understand some definitions under section 2 of the Act:
Data – “a representation of information, facts, concepts, opinions or instructions in a manner suitable for communication, interpretation or processing by human beings or by automated means” – Section 2(h).
Personal Data – “any data about an individual who is identifiable by or in relation to such data” – Section 2(t).
Digital Personal Data – “personal data in digital form” – Section 2(n)
The first set of definitions are quite simple. Data, personal data and digital personal data have been explicitly defined so as to remove any confusion and ambiguity. It is noteworthy that data has been extensively defined to mean “… suitable for communication, interpretation or processing by human beings or by automated means”. Hence, whether data are handled by human intelligence or artificial intelligence, they will both be covered by the Act. Some examples of digital personal data are: • KYC records such as PAN, Aadhaar, Driving License etc. • Contact details such as e-mail address, phone numbers, etc. • Social media user IDs and profiles. • Audio – Visual identification of individuals such as CCTV footage, webcam images, photos and videos on social media etc. • Biometrics such as fingerprints, iris scans, face recognition, etc.
Data Principal – “the individual to whom the personal data relates and where such individual is— (i) a child, includes the parents or lawful guardian of such a child; (ii) a person with a disability, includes her lawful guardian, acting on her behalf”
Section 2(j).
Data Fiduciary – “any person who alone or in conjunction with other persons determines the purpose and means of processing of personal data” – Section 2(i).
Data Processor – “any person who processes personal data on behalf of a Data Fiduciary” – Section 2(k).
The Data Principal
The next set of definitions are important. They lay the foundation for the data protection framework. The individual to whom the data pertains is called ‘Data Principal’. It is the Data Principal who is at the centre of the Act. ‘Data Fiduciary’ would mean the person who would collect, store, process the data either in own capacity or together with ‘Data Processor’. Both these terms have been defined widely. Let us understand the definitions through couple of examples:
Illustration 1: A Limited is a stock exchange broker and Ms. X wishes to open a Demat account with them. A Limited collects her Name, Address, Contact No., PAN and Aadhaar and utilizes services of B Limited, which is a Data Repository, to verify the KYC. Here, Ms. X is the Data Principal, A Limited is Data Fiduciary and B Limited is Data Processor.
Illustration 2: Ms. X runs a music academy whereby she teaches classical music. Baby Y (aged 10 years) is one of her students. Ms. X collect’s Baby Y’s Name, Address and Contact details for her records. Here, Baby Y and her parents are Data Principal and Ms. X is Data Fiduciary.
Processing – “in relation to personal data, means a wholly or partly automated operation or set of operations performed on digital personal data, and includes operations such as collection, recording, organisation, structuring, storage, adaptation, retrieval, use, alignment or combination, indexing, sharing, disclosure by transmission, dissemination or otherwise making available, restriction, erasure or destruction” – Section 2(x).
Data processing engulfs all modes and methods right from data collection to data destruction. Any activity conducted in between by utilizing data will be covered in the definition of Processing. It’ll also include facial recognition or voice recognition software and tools used to identify individuals.
Applying the Digital Personal Data Protection Act
The Digital Personal Data Protection Act applies to the processing of digital personal data within the territory of India where the personal data is collected – in digital form; or in non-digital form and digitised subsequently. It also applies to processing of digital personal data outside the territory of India, if such processing is in connection with any activity related to offering of goods or services to Data Principals within the territory of India.
If the Data Principal’s data are breached even outside India, the Act would still apply if the goods/services were procured by the Data Principal within India. Hence, the Act has expanded the scope of applicability and is not limited within the boundaries of India.
Illustration: Ms. X is a programmer based in Pune and does freelancing work through a Portal (registered in the USA) that acts as an aggregator for service providers and service receivers and for that purpose gathers data such as name, address, contact information, bank details, credit card details etc. In this case, the Portal would be covered by the provisions of the Act in case of a breach of the digital personal data of Ms. X.
However, this Act would not apply if the personal data were processed by an individual for personal purposes and the data were made available by the Data Principal or by any other person under obligation of law.
Obligations of Data Fiduciary
Consent – The Act lays various obligations on the Data Fiduciary for the manner in which data should be processed and protection of the same. The first and foremost obligation is to obtain ‘Consent’ from the Data Principal. According to section 6 of the Act, the consent given by the Data Principal should be ‘free, specific, informed, unconditional and unambiguous with a clear affirmative action’. It further specifies that the ‘consent shall signify an agreement to the processing of personal data for specified purpose and limited to such personal data as is necessary for such specified purpose’. This means that even if the data principal has given consent to relevant and irrelevant data, the consent would be limited to the relevant data only and the data fiduciary would be liable for breach of obligation for the irrelevant data. Illustration: Ms. X registered as a buyer on an eCommerce portal. The eCommerce portal asked for her mobile number, address and her phone contact list. Ms. X gives her consent to both. However, the phone contact list is not necessary for supplying her goods/services. Hence her consent will be limited to her mobile number and address for the purpose of availing goods/services from the eCommerce Portal, though she may have explicitly consented to provide a contact list as well. Thus, if the data fiduciary processes data for which consent is not obtained or is deemed to be not obtained as per provisions of the Act, they shall be liable for breach of their obligations.
Further, every request made to Data Principal by the data fiduciary shall be accompanied by or preceded by a notice informing the data principal about: • The personal data and purpose for which it is to be processed. • How the data principal can withdraw the consent and file for grievance redressal. • How the data principal may make a complaint to the Data Protection Board of India. If the consent contains anything which infringes the provisions of the Act or rules made thereunder, the consent shall be invalid to the extent of such infringement.
Illustration: X, an individual, buys an insurance policy using the mobile app or website of Y, an insurer. She gives to Y her consent for (i) the processing of her personal data by Y for the purpose of issuing the policy, and (ii) waiving her right to file a complaint to the Data Protection Board of India. Part (ii) of the consent, relating to waiver of her right to file a complaint, shall be invalid. The data principal also has the right to withdraw consent for the personal data for which a valid consent was granted earlier. On withdrawal of the consent, the data fiduciary will have to get the data erased from its database and ensure that they are not used for processing anymore.
Certain Legitimate Use of Personal Data – The data fiduciary may process personal data of data principal for certain legitimate purposes such as: a. Where the data principal has voluntarily provided personal data and has not explicitly indicated non-consent to such data. b. Data requested by the State for the purposes of any law for the time being in force. c. Compliance with judgment or decree d. Responding to a medical emergency involving threat to life or immediate threat to the health of data principal of any other individual e. Taking measures to provide medical treatment or health services f. Taking measures to provide safety to any individual during a disaster or breakdown of public order. g. For the purposes of employment or those related to safeguarding the employer from loss or liability, such as prevention of corporate espionage, maintenance of confidentiality of trade secrets, intellectual property, classified information or provision of any service or benefit sought by a Data Principal who is an employee.
General Obligations of Data Fiduciary – Data fiduciary has certain obligations to be followed to comply with the Act: a. The data fiduciary shall be responsible for complying with the provisions of the Act irrespective of the failure of the data principal to carry out duties under the Act. b. Data fiduciary may engage a data processor only under a valid contract. c. Ensure completeness, accuracy and consistency of data. d. Implement appropriate technical measures to ensure effective observance of provisions of the Act. e. Shall have reasonable security safeguards to protect personal data in its possession or control including data which is processed in its own capacity or by data processor. f. Intimate the Data Protection Board of India in the event of a personal data breach. g. Shall erase and cause the data processor to erase personal data on withdrawal of consent by data principal or the specified purpose if no longer being served.
Personal Data of Children – The data fiduciary shall: a. Obtain verifiable consent of the parent/legal guardian of a child before processing any personal data. b. Not undertake tracking or behavioural monitoring of children or targeted advertisements directed at children.
Rights and duties of Data Principal
The data principal has been accorded various rights and privileges under the Act in order to maintain the privacy of their personal digital data. They are also duty-bound to comply with the provisions of the Act.
Rights of Data Principal: a. Right to access information about personal data: The data principal has the right to obtain a summary of personal data which are processed by the data fiduciary. b. Data principal has to right to amend the personal data or get them erased by withdrawing consent under the Act. c. In case of breach by a Data Fiduciary, the data principal will have the right of grievance redressal through the data fiduciary as well as the Data Protection Board of India.
Duties of Data Principal: a. Comply with the provisions of the Act. b. Not to impersonate another person while providing personal data for a specific purpose. c. Not to suppress material information while providing personal data for any document, unique identifier, proof of identity or proof of address issued by the State or any of its instrumentalities. d. Not to register false or frivolous grievance or complaint e. Furnish information which is verifiable and authentic. Penalties for Breach of Provisions of the Act The Act has stringent provisions for compliance by the data fiduciaries. It also has severe penalties for breach of provisions of the Act. Let us take a look at some of the penalties levied by the Act: Sr. No. Breach Penalty 1 Breach in observing the obligation of the Data Fiduciary to take reasonable security safeguards to prevent a personal data breach under sub-section (5) of section 8 May extend to INR 250 Crores. 2 Breach in observing the obligation to give the Board or affected Data Principal notice of a personal data breach under sub-section (6) of section 8. May extend to INR 200 Crores. 3 Breach in observance of additional obligations in relation to children under section 9 May extend to INR 200 Crores. 4 Breach in observance of additional obligations of Significant Data Fiduciary under section 10. May extend to INR 150 Crores. 5 Breach of any other provision of this Act or the rules made thereunder. May extend to INR 50 Crores.
As you can see, the penalty can range from INR 50 Crore to INR 250 Crores depending on the type of breach. This calls for all organizations falling under the definition of data fiduciary or data processor to take measures to address compliance to the Act and its rules in a timely manner. It is expected that the Government will provide a transition period to allow the implementation of measures to ensure compliance.
Conclusion
The organisations should proactively get a Data Protection Impact Assessment done and get an inventory of measures to be adopted. These may cover the following areas:
Design Consent Mechanisms.
Adopt IT / IS and Cyber Security measures.
Appoint appropriate compliance officers within the organization.
Design data storage, data archival, data purging policies and tools to implement the same. Individuals should also educate themselves about the Act and know their rights and privileges. They have exposed huge amounts of data online to multiple portals. This Act empowers them to take control of how their data might be utilised and protected.
If you would like to learn more about The Digital Personal Data Protection Act in India, please get in touch.
Global vacancies
Dinesh Singhal
India GST specialist
This guide is an overview of the India’s Goods & Services Tax (“GST”) system, focused on how it affects foreign businesses trading with India. It is general in nature and unlikely to cover the specifics of your scenario. It should be read as such and not be construed as advice. For advice as to how your business is affected by India GST please contact a Kreston Global India GST specialist.
India
September 11, 2023
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Join the International Climate Summit 2023 in New Delhi: Exploring the power of green hydrogen
June 13, 2023
Kreston SNR supports the International Climate Summit: sustainability through green growth
Dr J P Gupta Chairman of the Kreston SNR Board, India, will be the chair for the upcoming International Climate Summit: 2023, which explores the use of green hydrogen and other fossil fuel alternatives. The summit is scheduled to be held on 14 and 15 September 2023, in New Delhi. This event is set to bring together global leaders and experts to discuss the theme of “Sustainability Through Green Growth” and address the pressing issue of climate change. Register as a virtual attendant here.
India Led Global Climate Movement 2023: A New Pathway to Climate Change Mitigation through LiFE- Lifestyle for Environment
One of the primary objectives of the summit is to promote the India-Led Global Climate Movement 2023, which aims to establish a new pathway for climate change mitigation through LiFE (Lifestyle for Environment). By encouraging sustainable lifestyle choices, collectively a significant impact can be made on the environment and combat climate change effectively.
Green Energy Growth: Opportunities for Green Hydrogen, Bio-Fuels, and Renewables
Another focus area of the summit is exploring the best opportunities for green energy growth. The summit will explore the potential of green hydrogen, biofuels, and renewables in driving sustainable development. As an emerging powerhouse in renewable energy, green hydrogen offers a promising solution for reducing carbon emissions and transitioning to a cleaner energy future.
Join Virtually or In-Person: Prime Minister of India as Chief Guest
This international event will be conducted in a hybrid mode, allowing participants from all around the world to join virtually. With over 56,000 people already registered for virtual participation, the turnout of 100,000 attendees virtually is anticipated, along with 1,000 participants attending in person. The Prime Minister of India is expected to grace the event as the Chief Guest. Additionally, several important ministries, including the Ministry of Renewable Energy, Ministry of Environment, Invest India, NITI Aayog, among others, are lending their support to this summit.
Five Knowledge Sessions: Dr. JP Gupta as Chairman of the Summit
The summit comprises five knowledge sessions, each focusing on key aspects of sustainability and green growth. Dr JP Gupta is the Chairman of the Summit. Mahendra Rustagi, CEO of Kreston SNR, will also be a speaker at one of the five sessions.
If you would like to understand more about Kreston Global’s commitment to ESG developments around the world, click here.
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Kreston OPR Advisors, India, welcome new partner
April 26, 2023
Sector:Technology, Media & Telecom
Kreston OPR Advisors have announced Darshil Surana with Kreston OPR as a new network partner in India. He will be responsible for growing the Technology Solutions within the Group. He shall have the additional responsibility of managing the Ahmedabad Branch.
Ahmedabad-Gujarat: ‘The city has seen growing importance at national and international levels and is one of the fastest-growing cities. We were looking for a senior resource to help us grow the Ahmedabad Office and Practice. We are so excited to have CA Darshil Surana on board.‘
To contact Vineet or Ruchi at Kreston OPR Advisors, email them at admin@kopr.co.in
To learn more about doing business in India, click here.
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Earth Day 2023: Mahendra Rustagi
April 21, 2023
Sector:ESG
As we approach Earth Day 2023, it’s essential to recognise the significance of sustainability in the business world. With the growing environmental challenges we face, it’s crucial for businesses to incorporate sustainable practices into their operations. In this article, Mahendra Rustagi, CEO of Kreston SNR, shares his insights on how businesses can incorporate sustainability into their financial reporting and tax compliance, the benefits of investing in sustainable initiatives, available tax incentives, and how tax and accounting professionals can help businesses quantify the benefits of sustainable practices.
Mahendra pointed out that Indians have a deep respect and commitment towards the Earth, evident in their tradition of worshipping it as Mother and seeking forgiveness before any construction work. This respect for the environment is something that businesses can learn from and apply to their operations.
The business world is among the most significant emitters of greenhouse gases and other pollutants. How can businesses incorporate sustainability into their financial reporting and tax compliance?
The business/industry is responsible to the extent of about 30% of Total Green House Gases (GHG). So they have a huge responsibility to care for their environment and society in a governed manner.
The efforts of businesses in this direction of sustainability should be incorporated by way of a report which we should form as an integral part of reporting. Like in India, the top 1000 listed companies have been mandated to disclose their data related to sustainability efforts through a report called BRSR (Business Responsibility and Sustainability Report) which is attached to and forms part of financial reporting. This can help to build trust with stakeholders and demonstrate a commitment to sustainability.
Earth Day 2023 theme is ‘Invest in our planet.’ Businesses can profit significantly from a sustainable transition if they invest early on. How do you think businesses will profit – or benefit?
Early investment in sustainability would mean improved energy efficiency, lesser water consumption and less waste reduction resulting in efficient operations and reduced operating costs. All this means higher profitability. Also, improved reputation and brand image and higher valuations, motivated team of employees, loyal customers etc, so one can say the business will benefit hugely in long run.
Businesses which are better on the ESG front can stay ahead of potential future regulations, avoid the financial and reputational risks associated with non-compliance and bring long-term economic benefits. Overall, investing in sustainability early not only benefits the environment but can also bring long-term economic benefits to businesses.
What are some tax incentives available for companies that implement sustainable initiatives, and how can businesses take advantage of them?
In India, the government has not yet started any income tax incentives for sustainable initiatives, however, the government is seriously considering and granting some income tax incentives for use of renewable energy and higher directions on some social spending. The Government of India has introduced a scheme called –Production Linked Incentives (PLI ) where huge incentives are provided to a certain class of environment-friendly products manufacturing linked to production. For example, Producers of Electrolysers are being given huge incentives to manufacture Electrolysers for the production of Green Hydrogen. Also, there are incentives for Green Sustainable Buildings and Energy Efficiency through the Bureau of Energy Efficiency (BEE).
Globally, there are several tax incentives available for companies that implement sustainable initiatives. These include tax credits for investments in renewable energy, tax deductions for expenditures related to environmental protection, and accelerated depreciation for certain environmentally friendly assets. Some countries also offer tax incentives for green buildings or for companies that reduce their carbon emissions. To take advantage of these incentives, businesses can consult with tax experts to identify the specific incentives that apply to their sustainable initiatives and ensure that they comply with the applicable regulations. They can also ensure that their financial reporting accurately reflects the impact of their sustainable initiatives, which can further demonstrate their commitment to sustainability and potentially attract socially responsible investors.
How can sustainable practices positively impact a company’s bottom line, and how can tax and accounting professionals help businesses quantify these benefits in their financial statements?
Implementing sustainable practices can positively impact a company’s bottom line in several ways. For instance, it can help reduce operating costs by improving energy and resource efficiency, optimising supply chains, and reducing waste. Sustainable practices can also increase revenue by improving customer loyalty, attracting socially responsible investors, and accessing new markets. Sustainable business practices lead to an enhanced reputation, being more attractive to staff and business partners who value environmentally sustainable practices, and attracting new customers who are seeking environmentally friendly products and services. Relationship between sustainability management practices and business financial measures as higher return on investment (ROI) and sales growth have already been proven.
Tax and accounting professionals can help businesses quantify these benefits in their financial statements by identifying the relevant tax incentives and credits available for sustainable initiatives, accurately reflecting the impact of sustainable practices on the company’s financial performance, and guiding compliance with applicable regulations.
Tax and Accounting professionals can also make the businesses understand the return on investment (ROI)on their sustainable Investments by quantifying the benefits through categorisation and a scoring model for each SDG component which would help them to make informed decisions about future investments in sustainability.
In conclusion, Mahendra’s insights inform us that businesses have a significant role to play in addressing environmental challenges, and they can do so by incorporating sustainability into their financial reporting and tax compliance. By investing in sustainable initiatives early on, businesses can not only benefit financially but also enhance their reputation and attract socially responsible investors. Tax and accounting professionals can assist businesses in identifying tax incentives, accurately reflecting the impact of sustainable practices on financial performance, and guiding compliance with regulations. As we celebrate Earth Day 2023, let us all take a moment to reflect on the impact of our actions on the planet and work towards a sustainable future.
Global vacancies
Times of India Press Road, Shyamal Cross Road, Ambavadi
April 19, 2023
Global vacancies
102-103 Shivani Flats, Bh. Bank of India, Ellora Park, Subhanpura
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Ganesh Ramaswamy
Partner at Kreston Rangamani and Associates LLP, Global Tax Group Regional Director, Asia Pacific
Ganesh has extensive experience of more than 30 years in providing specialist tax services, particularly to large privately owned groups, with particular strengths in the property, retail, healthcare and hospitality industries. He has supported various entities with specialist advice on tax-effective structures and restructures, cross-border transactions on account of outbound and inbound India investments, mergers, acquisitions and divestments. Ganesh has also worked with stakeholders across businesses to deliver solutions such as tax due diligence, tax consolidation and restructuring of large family businesses in the Middle East, Asia, and Singapore.
Investing in India
April 17, 2023
Investing in India is a compelling opportunity for “interpreneurs”, looking to tap into a rapidly growing economy that is already in the process of overtaking the UK to become the world’s fifth-largest economy. The Reserve Bank of India and the International Monetary Fund predict a 6.8% growth in the Indian economy for 2023.
India is expected to attract $100 billion of foreign direct investment in 2023 with attractive investment opportunities in sectors such as healthcare, renewable energy, information technology, and real estate. The Indian Government has also put in place an investor-friendly policy, making most sectors open for 100% FDI.
Ganesh Ramaswamy, Partner at Kreston Rangamani and Associates LLP and Global Tax Group Regional Director for Asia Pacific advises clients to transition from being founder-led to implementing professional processes, improve corporate governance standards and devising new business models to secure growth in the next 12 months.
India’s growing economy attracts international business
Recentresearch on global investors highlighted India and China as having entrepreneurs that are the most likely to expand globally. Does the data ring true for you in your international client profile?
Both the Reserve Bank of India and the International Monetary Fund, have forecast a 6.8% growth in the Indian economy for the year 2023. The GDP grew by 8.7% in 2022, which was boosted by the pandemic-induced low base of 2021. India continues to be one of the world’s fastest-growing major economies. Steered by decisive leadership, India is rising to the occasion through a significantly enlarged global profile. India is in the process of setting the pace to become a US$ 10 trillion economy in a decade. Therefore, we believe that this brings about tremendous opportunities for our firm in engaging ourselves in international business in future years.
How has the economy changed in the last 12 months?
The Indian economy seems to be moving on after its encounter with Covid-19, staging almost a full recovery in 2022 and is poised to reach the pre-pandemic growth path in 2023. The capital expenditure incurred by the Indian Government increased by over 60% in 2022, from that of the previous years, which was a significant growth driver of the Indian economy. India’s economic growth in 2022 has been primarily led by private consumption and capital formation. The improved health of the private sector banks, has moved them to a better position to increase the credit supply in the market. Consequently, the credit supply to the SME sector has been remarkably high at over 30% in 2022 when compared to previous years. Various agencies, worldwide, continue to project India as the fastest-growing major economy at 6.5% to 7% in 2023.
Investment opportunities in India
Some of the business opportunities which are currently looking very attractive in India are the following:
Warehousing and inventory management for e-commerce businesses
Mobile wallet payment solutions
Website to App conversion services
Health record digitisation and sharing
Cyberattack prevention services
Which sectors are doing well? Have you seen a growth in clients?
Healthcare. renewable energy, information technology, real estate, fast-moving consumer goods and the automobile sectors are currently doing very well in India. According to the Asian Development Bank, the Indian economy is expected to grow by 8% in the next 5 years. Many experts speculate that the Indian stock market, would progress and expand to be the fifth largest in the world, accounting for high market capitalisation.
Client profile in India
Most of our clients have gone global. As a result, they expect a lot from us to support their business needs. Some of our clients need a 24/7 accessibility service for their financial data from us. Some of them insist that we should have the latest and most advanced security measures to protect their business data against data breach threats. A large number of our clients need us to understand their overall financial position and devise financial strategies that aid their growth. In fact, all of our clients do not want us to be a mere accounting firm, but become a trusted advisor for them.
What advice are you giving clients to secure growth in the next 12 months?
Our firm advises clients to transition from being founder-led to more effectively implementing professional processes, improving corporate governance standards and devising new business models. We constantly remind our clients about the fact that the digitisation of the world economy has brought substantial disruption to existing business models, and therefore, they need to create more value out of their core businesses to build new innovative models to serve their clients in these rapidly changing times.
Investment trends for the future
India is expected to attract US$ 100 billion of foreign direct investment (FDI) in 2023, on the back of economic reforms and ease of doing business in India. In 2022, the total FDI, inclusive of equity, capital and reinvested earnings, rose by more than 10% over the FDI received in the previous year with a CAGR of 6% for the last five years. The Indian Government has put in place an investor-friendly policy, where most sectors except some strategically important sectors are open for 100% FDI.
Finding a Kreston Global firm in India
Please visit our “Doing Business in India” for general advice on setting up a company in India.
If you would like to find out more about setting up a business in India, please get in touch or fill out the enquiry form below and one of the team will contact you.
Innovspace Business Center, 11/4, Pooja Garden Kalapatti Main Road, Civil Aerodrome Post
Global vacancies
Elakamdevi, Anugraha Road, Vellyambalam
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Kreston Global starts 2023 by adding eight new firms across four continents
January 23, 2023
LONDON – Kreston Global has begun 2023 by welcoming eight new member firms on four continents: India, Uganda, Lebanon, Japan, Croatia, Bangladesh, Chile and Taiwan.
Top New, based in Taiwan – returning to the Network
Kreston Croatia was founded by Managing Partner Ivan Pečur who has worked in a number of international accountancy organisations over the last 16 years as an audit partner. He is joined by two other partners.
Bhatia & Bhatia was founded in 1981 and provides audit, tax and accounting services to a range of domestic and international clients. It works closely with a broad base of affiliated chartered accountant firms across all major cities in India.
Kreston HM was founded by Managing Partner Hitesh Mehta in 2005. It provides audit, accounting services and tax advisory to international and local clients from its offices in Kampala and Jinja. It has three partners and 45 staff.
Accurate Accounting & Audit was founded in 2021 and is led by four certified auditors. It has over 20 staff based in its central Beirut offices, providing services to corporate and private clients across the construction and building supplies, professional partnerships, hospitality, retail and sports sectors.
Maria Howlader and Co is based in Dhaka, Bangladesh and comprises 34 employees and offers audit, accounting and tax services to international businesses and foreign subsidiaries based in Bangladesh and overseas.
Kreston ATC Chile is a newly established firm in Chile, based in Santiago. The firm has 24 staff and five partners, and is led by Managing Partner Hans Caro. The firm is made up of previous Kreston partners including Ricardo Gameroff who is already involved with the Kreston network through the Global Audit and Quality
Groups. The firm has a number of international clients and specializes in external and internal audits, taxes, risk advisory, forensics, payroll and bookkeeping.
Top New & Co is based in Taipei, Taiwan and is returning to the Kreston network after a few months away. Run by Yashu Hung, who is the lead audit partner, together with two other audit partners and a staff of 20, they offer audit and accounting services to a range of privately owned and not-for-profit organisations.
2022 saw Kreston Global holding its hugely successful network-wide conference in Madrid, the first in-person conference the network has held since the pandemic began. 2022 also saw the launch of its first Environmental, Social and Governance Advisory Committee, launch of new international steering groups for Internal Audit, Transfer Pricing and Life Sciences, and lastly a flagship thought leadership report, ‘The Interpreneur Mindset’.
Liza Robbins, Chief Executive of Kreston Global, said:
“It is with great pleasure that I welcome our latest joiners to the Kreston Global network. To have eight firms join in a short period is a major achievement, but to have eight firms of this calibre join is a significant testament to our depth and breadth.
“In recent years we have spent a great deal of time evaluating and fine-tuning our strategy. We have listened closely to our members, working with them on a range of areas and launching a number of exciting new initiatives. I am excited to move into 2023 with both our existing and new colleagues as we continue to develop our proposition to the entrepreneurial business community.”
Get in touch to talk about how Kreston Global firms can help your expanding business in these eight countries.
News
Crest Healthcare, India
September 22, 2022
Sector:Life Sciences & Healthcare
Crest Healthcare is a private limited group company encompassing several subsidiaries including Crest Life Sciences, Crest Topicals and Crest Hygiene. Crest Group is a leading manufacturer and supplier of a range of pharmaceutical products such as calcium and vitamin D3 suspension, azithromycin oral suspension, Multivitamin syrup and homecare products for various pharma and FMCG Companies. Clients include Cipla, USV, Indoco, J.B. Chemicals and Curever.
The Crest Group was acquired jointly by private investors who appointed Kreston SGCO in India to advise on all aspects of the complex deal. This involved acquiring a 100% stake in the group for the two investors via a Share Purchase Deal.
The deal comprises transfer of overall control and management of Crest Group of Companies along with transfer of possession of all the assets and manufacturing facilities of the companies. Products are manufactured at the Group’s state-of-the-art unit at Baddi, Himachal Pradesh and Sarigaon, Valsad.
The team at Kreston SGCO carried out a wide range of specialist work including:
Acting as sole project manager to assist the above acquisition
Advising on the deal structuring, review and execution of entire transaction documentation including Term Sheet and Share Purchase Agreement from tax and commercial perspective
Structured solutions to all dynamic and rapid evolving transaction specific issues emanating from red flag diligence and facilitated negotiations between the parties
End-to-end ‘handholding’ and guidance on entire acquisition related matters to the successful closure of the transaction
Client comments: “This was an important acquisition for us and Kreston SGCO’s expertise and advice ensured a successful outcome.”
The team’s main advisers were Vidhi Shah, Dhwani Shah, Jay Bhatt and Soyeb Shah.
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