Audit and Assurance
We deliver quality assurance services to help you plug in your leakages clearly and timely by focusing on potential trouble areas to enhance your business. We provide a unique opportunity to review not only the financials of your business but also its information systems, internal controls, and operations. Our services cover independent & objective assurance and consulting activities, designed to add value and improve an organization’s operations.
With over 36 years of vivid experience, KSA offers a wide range of auditing and assurance services, tailored to meet your business needs, including:
- Statutory Audits
- Tax Audits
- Due Diligence
- Forensic Audits / Investigation
- Stock Audits
- Ind AS / IFRS
- Concurrent Audits
- Management Audits
Internal Audit and Business Advisory
Our keen insights into business principles and processes along with our vast experience enables us to identify glitches and problems faced by the client. We offer the following services in this regard:
- SOP’s Development: Standard operating procedures are a vital component of successful enterprises. SOPs provide a detailed roadmap, establishing the step-by-step procedures and accountabilities. At KSA, we help you in setting up SOPs tailored to your business’s working styles.
- Internal Audit: The scope of internal audit is no longer limited to focusing on internal processes and controls but has also increased to identifying enterprise-wide risks and monitoring and providing early warnings of risks. We provide our clients a platform to gain more from the business by providing the highest standard.
- Risk Assessment: Risk assessment is the procedure to identify hazards and risks that have the potential to cause harm and disrupt business working. At KSA, we aim at creating an analytical tool that maps out the potential alarming glitches and the preventive measures to avoid those glitches.
- Information System Audit: Information system audit or information technology audit is an examination of the controls within an entity's Information technology infrastructure. These reviews are performed in conjunction with a financial statement audit and internal audit, which provides us a holistic view of the business working. At KSA, IS audit is conducted by obtaining evidence which ensures whether the organization's information systems safeguard assets, maintains data integrity, and are operating effectively and efficiently.
Corporate Financing Services
- Preparations of Project Reports
- Preparation of CMA data for bank loans
- Private placement of shares, Inter-Corporate Deposit, Terms loans, working capital limits, etc.
- External Credit Borrowings (ECBs)
Direct Tax Services
India’s taxation system is among the more complex systems globally and is constantly being updated to account for changes in the economy and policy. The system remains prone to delays and inefficiencies as well as substantial tax burdens for a misstep or lack of knowledge. There are additional restrictions on foreign nationals and companies, as well as international transactions between group companies.
At present, a company operating in India may need to pay three kinds of direct taxes - Corporate Taxes, Minimum Alternative Tax (MAT), and Dividend Distribution Tax (DDT). These are the broad guidelines for these taxes:
- Corporate Tax: For a domestic company, the prevailing tax rate is 30% (or 25% for SMEs). In addition to this, a surcharge may apply (based on the company’s profit levels) and a cess of 4% applies to all companies (irrespective of profit levels). Foreign companies are required to pay a basic tax rate of 40% (plus surcharge and cess).
- Minimum Alternate Tax (MAT): Because of the differences between calculation of accounting profit and taxable profit, the Government introduced MAT which is applicable on book profits (if they exceed tax profits). The MAT rate is currently 18.5% of the book profits plus surcharge and cess. Every entity would need to pay the higher of corporate tax or MAT.
- Dividend Distribution Tax (DDT): DDT is a tax payable by domestic companies on the dividend that they pay out, since that dividend is tax free in the hands of the shareholder. On the other hand, if a shareholder receives a dividend from a foreign company, he or she is liable to pay tax on it. The current DDT rates are 15% on dividend amount, plus surcharge and cess.
KSA's tax practice is a long-established one with specialists across all regulations and experience with Income tax preparation, assessment, scrutiny and dispute cases. Our tax consulting practice assists our clients with the following services:
- Tax planning and optimisation strategy for Indian and overseas companies
- Tax planning and optimisation for proposed transactions such as mergers and acquisitions
- Ongoing direct tax payments and self-assessments for companies and firms
- Ongoing tax compliances (TDS, professional tax, etc.)
- Income Tax preparation and Filing of tax returns for companies and firms
- Liaising with Income Tax authorities in cases of tax demands, scrutiny or disputes and litigation.
- Tax audits for companies and firms in form 3CD as prescribed by the Income Tax authorities
- Employee tax calculations for companies and firms
Indirect Tax Services
KSA has successfully assisted all its clients in transitioning to the new system and is helping them on a periodic basis in meeting the legal requirements around GST. Our team is involved in every step of the process and in several cases, eliminates the need for our clients to hire more employees to keep up with the additional GST workload. We provide the following indirect tax services to our clients:
- GST registration and migration
- Ongoing calculation of GST liabilities and credits
- Filing of GST returns
- Liaising with tax authorities in cases of tax demands, scrutiny or disputes for both GST and erstwhile indirect tax issues (Service tax, VAT, Excise, etc.)
- Interpretation of GST Act and specific sections based on clients’ industry, products, exporter/importer status and other unique circumstances
- Litigation in cases of indirect taxation
International Taxation
Since many of KSA’s clients are part of multinational groups, almost all of those companies require transfer pricing reports, and most require transfer pricing documentation. The clients include manufacturers, exporters, traders, distributors, service providers, project management groups, EPC groups, licensees, franchisees etc. The intra-group transactions are of diverse nature, and include purchase/sale of goods and services, IPR's, brand license, royalties, technology transfer, cost sharing arrangements, deputation of personnel, central services charge/recharge, management fees, financing transactions and the like. Our team handles various aspects including:
- Proactive planning for transfer pricing transactions and the business model
- Advising on choice of arm's length method and acceptable earnings benchmarks
- Compliance documentation
- Assisting with robust inter-company agreements
- Defending transfer pricing policies in case of litigation etc.
Expat Taxation: Taxing for expatriate individuals can be a problem. It needs know-how and experience to ensure smooth transactions. The problem might begin with submitting the form but it does not end there. Tax clearance, tax reviews, offshore banking and investment, all this and more are involved. Tax compliance, however, is a must, but one also has to plan how to optimize tax liability or burden by restructuring the transactions and assets correctly.
Double Tax Avoidance Advisory: The Double Tax Avoidance Agreements (DTAA) are essentially bilateral agreements entered into between two countries, in our case, between India and another foreign state. We facilitate our client in DTAA Advisory to avoid double taxation based on the nature of Income and expenditure, in both the countries (i.e. Double taxation of same income) and withholding tax issues and other compliance.
Company Formation and Secretarial Services
We provide comprehensive company formation and secretarial services, including:
- Company Information
- Comprehensive Firm Filling and Filing Services
- Maintenance of Statutory Books
- ROC Searches
- Consultancy on Company Law matters
- Planning for Mergers, Acquisitions, De-mergers, and Corporate Re-organizations
- Filing of annual returns and various forms, documents
- Secretarial Matters including share transfers
- Maintenance of Statutory records
- Consultancy on Public/Rights/Bonus Issue of shares
- Change of Name, Objects, Registered Office, etc.
Business Process Outsourcing Services
Outsourcing is the new mantra for getting work done economically, efficiently, and with expertise. Benefits of outsourcing include:
- Enables businesses to concentrate on core activities
- Use of manpower for more important functions
- Reduced investment in fixed assets
- Substantial cost savings
- Access to expert services
- Improved internal controls
- Enhanced reporting capabilities
- Off-site backup of data
Corporate Governance Services
Corporate governance refers to a combination of laws, regulations, procedures, and practices that help companies perform efficiently and maximize long-term value for shareholders. Our services include:
- Periodic monitoring through internal audit
- Independent audit and verification
- Effective supervision and accountability
- Ensuring sufficient independent directors on the board
- Formation of an independent audit committee
- Adequate disclosure and transparency in reports
- Participation in board meetings
Services for Non-Resident Indians (NRIs)
We offer a range of services for NRIs, including:
- Allotment of Permanent Account Number (PAN)
- Tax planning and consultancy
- Obtaining Advance Rulings on debatable issues
- Consultancy on FEMA/RBI matters
- Filing Income Tax/Wealth Tax Returns
Back Office Operations - Payroll and Accounting Services
We provide back-office operations support, including payroll and accounting services. Our services include:
- Preparation of Monthly Salary Sheets
- Deductions as per applicable laws (Income Tax, Provident Fund, etc.)
- Computation and deposit of TDS, ESI, PF, etc.
- Disbursement/Online Payment of Salary
- Pay slip by password-protected email
- Reimbursement of telephone, medical bills, etc.
- Issue of Form 16 to employees
- Periodic reconciliation of payments/statutory deductions
- Administration of gratuity, superannuation, pension schemes, etc.
Risk Advisory Services
We offer risk advisory services, including document verification and risk assurance services (RAS). Our services include:
- Document Verification (PAN Card, Bank Statements, Financials, Salary Documents)
- Risk Assurance Services (Internal Audits, Fixed Assets Verification, etc.)
Virtual CFO and Outsourced CFO Services for Start-ups and SMEs
We provide virtual CFO services to start-ups and SMEs, offering strategic financial guidance, budgeting, forecasting, and financial planning. Our outsourced CFO services help businesses manage their finances efficiently without the need for a full-time CFO.
Implementation of Ind AS
The Indian Accounting Standards, also known as Ind AS, are structured in line with the International Financial Reporting Standards (IFRS). The nomenclature for the naming and numbering of Ind AS is the same as that of IFRS.
With Ind AS compliance being mandatory for specified companies operating in India, businesses need to prepare for Ind AS implementation. This involves developing an outline for replacing existing standards, embedding Ind AS into operational systems, training financial teams, and ensuring managers understand the new accounting principles.
These standards introduce several changes in financial reporting, including accounting for income and expenditure and balance sheet items. Ind AS differs from the existing Indian GAAP framework in key aspects such as:
- Fair valuation
- Substance over legal form
- Emphasis on the Balance Sheet
- Principle-based framework instead of rule-based
Key steps to follow in the implementation of Ind AS:
- Preliminary impact assessment: Identify standards affecting financial statements regarding recognition, measurement, disclosure, or classification compared to existing accounting standards.
- Key Ind AS standards impact: Prepare a detailed comparative presentation assessing the impact on restated balance sheets and income statements at the conversion date.
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First-time adoption: Includes:
- Selection of appropriate options as per Ind AS 101 transition provisions
- Preparation of opening balance sheets under Ind AS
- Preparation of financial statements under Ind AS from the start of the adopting FY
