More value. In Lesser time.
It's a work in progress but we're excited about it!
Business Advisory
The needs of business vary, based on the stage of evolution and maturity in their life cycle.
At early stages, promoters seek validation to strategy, convenient vehicles and mechanisms to attain their goals and to be insulated from bureaucratic and administrative hurdles. We co-create the strategy and structure the business, assist in incorporation, in funding and in regulatory and secretarial compliances required for new businesses. Our work with Angel Investors, Seed Funds and Venture Funds and their investee / portfolio entities places us ringside. Those insights help us prepare early-stage ventures for the funding that is vital to survival, if not success. We also advise on policies and procedures that such businesses may adopt to keep their processes simple and their eye on the business goals. We have worked with over 200 early-stage ventures and at any given moment, 5-8.
At the growth stage, business needs to make processes and controls robust and scalable, the quality of its earnings and operations sustainable and predictable, the Governance non-intrusive and effective. We carry out risk assessments and advise on technology, goods and services tax, income tax and other relevant regulations after securing an understanding of business / operations. We advise on policies, on governance, on process efficiency, on operational and financial controls, on optimisation of cost and on pricing.
At the expansion stage, we assist the business through Valuation, Due Diligence reviews and raising finance through private placement, debt etc., as suited to their business plans. Over the last 3 years, SDU has carried out about 60 valuation engagements, 65 Due Diligence reviews that resulted in successful closures and raised an aggregate of INR 1000 Crores in capital for various clients. Over the last 3 years, we have anchored M&A deals aggregating INR 1500 Crores, some from the buy-side and others, from the sell-side.
At the final stage, we co-create the exit strategy and take businesses through to closure.
Again, we make business simple. Allow business to focus on its goals.
Services include:
- Real Estate & Advisory
- Financial & Tax Due Diligence
- M&A and Capital Raising
- Valuation and Business Modelling
- Secretarial Compliance
Accounting & Advisory
Where the business acquires financial assets or assumes a financial liability whose Fair Value is dependent on an underlying variable, the recognition of such instrument, its treatment in accounting records, measurement at period-end and the related disclosures merit in-depth analysis and understanding.
Where the business is geographically spread, it is likely that multiple accounting frameworks apply to each unit that is in a different geography. Besides, there is high likelihood of inter-unit transactions that qualify as related party transactions. Consolidating such financial statements presents challenges in baselining, consistency, treatment of differences and their disclosure.
At every stage, compliance with Standards – Indian and International, Accounting and Reporting / Disclosure – is mandated by different bodies and / or regulators. The Standards compel rigor, judgment and transparency. Allow our knowledge and experience simplify matters for you. Through Framework implementation, interpretation and regulatory process compliance and training.
As business grows, consistency in process and procedures becomes an imperative: from an efficiency standpoint and reporting as well. Consistency lends itself to automation. Besides, Consistency enables comparability of reports. Consistency can be brought about by creating Manuals: Accounting or Procedures. We have developed Manuals for many enterprises, large and small, and infuse the creation of such manuals with our knowledge of best practices from various industries.
Services include:
- GAAP Advisory
- Accounting & Financial Reporting
- Drafting and implementing Accounting Procedures Manual
- Opinions and interpretations of standards and regulations for accounting
- Corporate law and compliance support
- Training
Risk Advisory
Businesses face risks from various quarters such as Strategic, Financial, Legal, Political, Geographical, Competition and Regulations. Identifying the risks, evaluating them, prioritizing them and setting responses to avoid or mitigate the risks based on the business’ appetite is now de rigueur, even de jure.
The Companies Act, 2013, places responsibility on the Directors of a company, in relation to Risk Management Policy and Systems: that the system is robust and defensible, that the system is (periodically) evaluated and for reporting to shareholders. In addition, SEBI’s listing agreement compels the adoption of a framework and periodic review of risks and controls.
This compliance is best served by putting in place an Enterprise Risk Management program – with Environment, Social and Governance or ESG as the latest additional dimension – that is pervasive. These involve the selection of a Framework, devising a Plan and setting into motion the sequence of actions that identify, assess, prioritize, mitigate, monitor and report risks. Corporations typically appoint a Chief Risk Officer to lead the effort. We cut our teeth assisting a Nasdaq-listed client achieve the Sarbanes-Oxley compliance in 2006. That client was the first in India to achieve it and we were the first to learn and deploy a risk-based approach in all our assurance engagements. Our experience in the Governance and Internal Audit space positions us to provide the lead and consulting roles, besides assisting companies with documenting their Internal Financial Controls leading to certification by statutory auditors.
Digital commerce and enhanced sophistication of fraudsters means that enterprises must continually identify vulnerability to fraud and address them promptly, to maintain the trust of customers. All, while still delivering a great experience for customers. SDU assists in Fraud Risk Management: a system or process that aims at preventing and detecting fraud early on. We have Certified Fraud Examiners who visualise this better and make the process robust: an end-to-end strategy, building a reputation that deters fraudsters, conducting frequent risk and threat assessments, proactively creating awareness and education. We also conduct forensic audits where fraud has been uncovered. Forensic audit is similar to regular financial audit but with different investigative techniques and evidencing geared for to use in a court of law.
Compliance with laws of the land, besides being a proud badge to wear, is the cornerstone of good Governance. Regulatory non-compliance severely damages reputation and corrodes trust of all stakeholders in the enterprise. Compliance Risk is, therefore, rated high and its management, a significant factor. SDU assists in Compliance Risk Management. We design a framework, the process to identify vulnerabilities, provide early warnings, monitor and report on compliance of specific regulations. In addition, we can carry out a one-time ‘Health Check’ by examining the positions the enterprise has taken with respect to the specified laws and the litigation that it may be engaged in or anticipate.
Services include:
- Risk Management Framework
- ESG consulting
- Fraud Risk Management
- Compliance Risk Management
- Other Management Consulting
Tax advisory
A significant factor that enables business success is the Tax strategy and structure. We aim for a structure and strategy that works within the contours of law and optimises the incidence of tax on the business.
When business imperatives dictate establishing entities outside India, there are a host of considerations. Pooling of capital, tax treaties with destination countries, transfer pricing regulations and foreign exchange controls come into play.
Where the expansion is within India, tax costs, input credits, tax concessions and underlying value creation processes require understanding and analysis.
Extensive work with different enterprises in each of these areas sets us well to consider the nuances of any expanding – even established – business and provide bespoke advice.
Family-managed businesses pose many questions for owners. Despite the presence of professionals in the hierarchy, eventually the business will be run by the family. How should the succession be planned? How should the wealth be managed? Which vehicle will optimise incidence of tax? How will global mobility run un-impeded for future generations?
We work with families: understand the ambitions, the emotions, the aspirations for future generations and advise them on the structure that best suits their goals.
Services include:
- Inbound, outbound and supply chain structuring
- Tax Anchor support
- Contract negotiations
- Health checks
- Representations to the Government
- Design of tax manuals and implementation support
- Trainings
- Price setting exercises
- Design and evaluation of business models
- Internal reorganisation
