Business Advisory

With the growth of Business and globalization, the need to communicate across the borders has correspondingly increased. A company in one country is borrowing in the capital market of another country. The financial statements prepared in one country are used in other country more and more frequently. This has raised the issue of harmonization of financial statements, accounting policies, their presentation and disclosures etc.

Investors would like to direct their capital to the most efficient and productive companies globally provided they are in position to understand their accounting/financial reports. Every investor requires reporting of financial, technical and other information in their own format based on the accounting principles followed and accepted in their country.

As an extension of statutory audit services we also provide services of reporting to the foreign holding company for the purpose of consolidation. The foreign reporting group has an in-depth understanding of the Indian GAAP and the IAS, US GAAP and IFRS. We provide support, advice and assurance that will help companies identify, manage and control regulatory risks and meet regulatory standards and expectations.

India is one of the fastest growing economies in the world. It has taken several measures that provide liberalised policies; investor friendly investment climate, simplification of procedures to attract foreign investments. With availability of skilled manpower in abundance, the global corporations are showing keen interest to invest and set up their business operations in India. With our effective understanding and appreciation of accounting, tax, economic and managerial considerations, we offer our expertise and pragmatic solutions to the companies. We leverage our comprehensive understanding of Indian business environment and regulatory structure to deal with complex cross border business issues.

• Advising on ownership structure including appropriate investment jurisdiction.
• Advising on entry structuring including choice of entry vehicle such as branch, subsidiary, joint venture etc.
• Processing regulatory approvals from Foreign Investment Promotional Board (FIPB), Reserve Bank of India (RBI) and other organization.
• Obtaining registrations required under various statutes.
• Tax structuring.

In addition to advising on the Inbound Investments, we believe in implementing comprehensive set of transaction support, tax issues, business setup, recruitment, and assurance services, all under one roof.

A large share of world trade consists of goods, intangibles and services within multinational enterprises. To determine tax liability in each jurisdiction, the right price (arm’s length price) has to be applied.

Transfer pricing is a term used to describe all aspects of pricing arrangements between a company and a related party or between two business segments of a company.

Rise in international transactions calls for stricter compliance requirements, maintenance of adequate documentation, free exchange of information and increased emphasis on audit and inspection.

In this opened arena of the Indian economy, each and every company entering into an international transaction is required to do adequate planning and documentation so as to limit its tax exposure.

Further to that transfer pricing provisions are also applicable to specified local transactions between two related entities with in India

We at MVDCO offer the following advisory services to the clients within India and overseas:

• Services limiting the overall tax exposure of the client in India and other countries including compliance with the Indian and the overseas Tax laws.
• Selection and application of appropriate methods to justify the international transactions at Arm’s Length Principle.
• Advising and guiding the client to maintain adequate and contemporaneous documentation and review compliance thereby avoiding heavy penalties for lack of documentation.
• Responding to enquires made by tax authorities or transfer pricing audit team.

This requires an immense study of the organization, its structure, nature of transactions and different statutes.

Our Transfer Price team comprises of experts who understand the clients business and plays an integral role right from the conception of an idea of a business deal to its implementation with proper documentation and provides guidance throughout the transaction cycle.

As it stands today, India will converge with International Financial Reporting Standards (IFRS) in phased manners beginning on or after April 1, 2016, with Comparatives for the year ending 31st March 2016 or thereafter.

As stated in roadmaps for achieving convergence, there shall be two separate sets of Accounting Standards notified under the Companies Act, 1956. First set would comprise the Indian Accounting Standards (Ind AS) converged with the IFRSs which shall be applicable for preparation of consolidated financial statements as defined in the Companies Act, 2013, of the specified class of companies. The second set would comprise the existing notified Accounting Standards (AS) and shall be applicable for preparation of individual financial statements of the companies preparing consolidated financial statements as per Ind AS and for financial statements of other companies.

At MVDCO, we are having a good team of In house professionals who are well equipped with knowledge of IFRSs/ IASs in addition to tie-ups with other leading professional for expert opinions and fair valuations etc. Further the concerned team is aware about first time adoption scenario with respect to various industries.

• Design a Road map of convergence from Indian GAAP to IFRSs keeping in mind sector in which company operates;
• Observe convergence process on continuous basis and provide required guidance on real time basis;
• Providing training to company professionals to create awareness about IFRSs, issue involved in implementations etc.

Provide various other related services using our professional tie-ups ie Fair valuation/ valuation models etc.

Internal Financial Controls as required by Companies Act 2013

The Companies Act, 2013 (“Act”) has introduced many new reporting, disclosure and compliance requirements for the statutory auditors/ board of directors. One of the important requirements is laying down of Internal Financial Control (“IFC”) policies and procedures adopted by the management and its reporting and disclosure by Auditors and Management with respect to its adequacy and operating effectiveness.

We at MVDCO will help in the following:

• Diagnosing loopholes & setting up controls to mitigate risk
• Designing planning the structure and framework
• Solution Development
• Implementation
• Post Implementation