What We Do

Business Setup Advisory

As entry strategy specialists, we understand that setting up business in a complex Indian jurisdiction can be challenging and time consuming task. With over a decade of experience in giving structured and timely advice, our project management service supports every stage of your business setting up. From identifying the most suitable entry route and assisting you in deal structuring to providing a one stop shop for all regulatory approvals, we help you consolidate the new set up. From obtaining clearances and approvals from Government bodies like the Reserve Bank of India (RBI), Secretariat of Industrial Assistance (SIA), Foreign Investment Promotion Board (FIPB), Registrar of Companies (ROC), Foreign Contribution Regulation Authority (FCRA) etc., to land acquisition, clear title and conversion rights, we make your experience in India a hassle-free one.

Our Strategy Includes:

Entry Strategy – Planning and implementing an appropriate route for investing into India. We suggest, plan and implement entry strategy for your business by doing a detailed analysis of the regulatory environment, evaluate alternative entry options and decide best option.

Location Study – We conduct location studies by evaluating relative advantage of different Indian states based on our well-defined multi perspective geographic, political, economic parameters, including fiscal incentives, rebates and tax concessions knowledge.

Project Management – Project managing factory establishment in India, including identification of industrial location, necessary clearances from government agencies and facilitating relationship with key service providers and contractors.

Regulatory Approvals – Specialized teams to assist in getting approvals from the ‘Reserve Bank of India’ (RBI), ‘Secretariat of Industrial Assistance’ (SIA), ‘Foreign Investment Promotion Board’ (FIPB), ‘Registrar of Companies’ (ROC), ‘Foreign Contribution Regulation Authority’ (FCRA) and other concerned agencies.

Start up Support – We organize the office infrastructure and manpower during the ‘in transit period’ of a company when it is in the process of setting up, including acting as a nominee resident directors. We also act as a incubator for startups.

Secretarial Support – Assisting the management in drafting and maintaining statutory records, minutes of meetings of the Board (Annual, Shareholders, Board), appointment and resignation of key personnel, increase/reduction of capital, dividend declaration, change of registered office etc. and if required assist in closure of office and liquidation of an entity.


Book Keeping and Accounting Services

Bookkeeping is the process of recording, in chronological order, daily transactions of a business entity. It forms part of the accounting information system. On the other hand, accounting is an information system– includes process of recording, classifying, summarizing, reporting, analyzing and interpreting the financial condition and performance of a business – in order to communicate it to stakeholders for business decision making. Our professional team including CA’s, MBA’ accountants and administrative staff are capable of handling all your book keeping and accounting processes, from basic AR and AP entry, payment and processing, to the more difficult duties of a CFO.

We apply stringent data / information security measures for your bookkeeping needs so that you can focus on your core competencies while we manage your bookkeeping activities. We at ETEA realize the importance of being updated with accounting and are here to provide you with internationally accepted accounting & bookkeeping outsourcing services which can be utilized for various internal decision making and reporting purposes. ETEA provides bookkeeping services & accounting services – daily, weekly, monthly, quarterly and annually as per the requirement. ETEA’s bookkeeping and accounting services include:

  • Setting up ‘books of account’ in required bookkeeping software / formats
  • Charting of accounts
  • Categorization of income and expenses
  • General Ledger maintenance
  • Invoicing services
  • Accounts Receivable services
  • Accounts Payable services
  • Preparing ageing reports and summaries
  • Reconciliation services – Accounts, Bank, Credit Cards & Payment Gateway
  • Preparing Financial Statements adhering to Generally Accepted Accounting Principles (GAAP)
  • Preparing and formatting Income Statement and Balance sheets on a regular basis
  • Cash Flow management
  • Payroll reconciliations

Our Software Expertise
In addition to above mentioned bookkeeping and accounting services being provided to business set ups, we also provide innovative accounting / bookkeeping customized reports to assist you further in performing an in-depth analysis of the performance of the various business units. Most commonly used accounting softwares are Tally ERP 9, Quickbooks, SAP, Xero etc. We have been providing accounting and bookkeeping services in India and to global clients and this has helped us gain a competitive advantage which can leveraged and utilized by our customers in getting end to end financial and accounting support at substantially lower cost.


Management Information System Services(MIS)

ETEA Delivers MIS reports on timely i.e, Monthly, Quarterly and yearly bases to Management for their quick decision making MIS Reports covers following

  • Profit & Loss Statement, Balance Sheet, Cashflow
  • Statutory Compliance Report
  • Cost Analysis
  • Budget vs Actual Comparison

Physical Verification

Physical verification can be termed as a process of comparing an organization's official list of assets with the actual assets. Most of assets that auditors verify are fixed assets, cash and inventories. With this examination, auditors personally authenticates that the assets listed on an entity's financial statements actually exist.

Inventory Verification
The core purpose of inventory verification is to support the value of inventory as shown in financial statement along with verifying the accuracy of stock records, disclosing the possibility of fraud, theft or loss, or deterioration thereby revealing the weakness of the system, if any. It could be done at periodic intervals or at the end of specified period (periodic verification), throughout any period (perpetual verification), and any point of time as the management deems fit (surprise verification).

ETEA provides both human and technological inputs for inventory verification of material received, material in process, semi-finished goods, finished goods, warehouse inventory and goods in transit at multiple locations like manufacturing plants, warehouses, trading sites, project sites etc.

Fixed Asset Management
ETEA is one of the prominent fixed asset management companies in India. Deal with your fixed assets as usual and simply give us the inputs that will be reflected in the databases immediately. ETEA’s fixed asset management service include but not limited to:

  • Physical Verification of fixed assets
  • Capitalization & Valuation
  • Barcode numbering including location, type of product, tag ID, value and other necessary information
  • RFID tagging where required
  • Software support and training
  • Maintaining database and updating these with reports

We are scrupulous and committed to delivering results setting you free to focus on more crucial aspects of your operations.


Transactions Advisory

Our professional teams, with their vast knowledge and substantial experience offer Fund-raising, Due Diligence, M&A advisory, Valuations and Financial Modeling which facilitates rational decision making.

Mergers & Acquisition – End to end support on deals from planning to successful closure. Also support post-merger integration..

Buy-Side/ Sell-Side Advisory – Strategizing the entire transaction starting from market analysis to defining an acquisition strategy, locating potential clients, negotiating fair value and support to close definitive agreements.

Valuation – Appropriate, internationally acceptable valuation techniques to arrive at fair business value. Also, valuation related to assets for family settlements, dispute resolutions, purchase price allocations, capital raising etc.

Due Diligence - Support to Client Due Diligence Reviewing all financial or other records as an insight to make a potential investment / transaction.

Corporate Debt Syndication / Restructuring - To assist in financial obligations by reorganizing outstanding obligations, arranging funds for expansion / working capital needs.


Taxation And Regulatory Services

Our teams are well versed with issues effecting both Foreign and Indian businesses. The teams are continuously engaged in upgrading skills thereby offering comprehensive, efficient and pragmatic tax strategies. These assignments are monitored at senior level and adequate care is taken to ensure a high level of skill and experience.

Our teams provide complete handholding in preparation for a tax enquiry, investigation or appellate matter and work as business partners in dealing with regulatory authorities. Transfer pricing professionals provide effective guidance to your finance teams in maintaining country files and related matters.

Planning and Advisory – Tax planning for optimizing the overall tax structure, reviewing business transactions and assisting contract structuring, risk analysis, secondment arrangements etc.

International Taxation – International tax treaties (DTAA), handling of transnational company affairs, international tax planning covering inbound and outbound investments.

Transfer Pricing – Determination of financial transactions at arm’s length price, ensuring transactions adhere to regulatory framework and assist in filing report under section 92E of the Income Tax Act, 1961.

Indirect Taxation – Advisory, compliance and audit under Goods and Services Tax (GST) in India along with pre-GST taxes.

Tax Controversy & Dispute Resolution – Managing tax litigations and assistance in resolving income tax disputes.


Audit And Assurance Services

We engage with our clients on a continuous basis to ensure adherence to statutory and regulatory requirements, including disclosures and provide constructive, value-added delivery.

Internal Audit – Evaluating company's internal controls, corporate governance and accounting processes to improve overall efficiency.

Forensic Audit – To detect, improve or mitigate chances of fraud or misappropriation of resources/ funds.

Cost Reduction Audit - Audit of business operations, processes and transactions, identifying loopholes and providing suggestive cost effective measures.

Management Audit – Audit of specific operational management functions (viz. purchase, sales, inventory, fixed assets, special purpose accounting, mergers, acquisitions etc.) wherein we closely work with the management in improving overall efficiency.

Revenue Audit – A revenue audit is a two-tier process that scrutinizes the figures and information as given in tax returns against those found in its business records of an entity.

Review of Financial Statements - Ensuring financial statements in accordance with Indian GAAP, US GAAP and IFRS.

Preparation and Implementation of Policies, SOPS, BPN, RCM – Assistance in preparation of Standard Operating Procedures (SOP), Business Process Notes (BPN), Risk Control Matrix (RCM) etc.

Audit support – ETEA also provides assistance in audit process thereby improving efficiency either independently or along with your existing teams. We offer unparallel support to auditors with a team comprising experts from several domains on every process.


Non-Core Process Outsourcing

Our compliance services ensure adherence to legislations in the complex Indian regulatory framework, making it a hassle free exercise for you. Providing you with a knowledge partnership, we make optimal use of our PAN India presence by efficiently handling end-to-end compliances, enabling you to focus on your business growth.

Our highly specialized teams leverage a thorough understanding of statutory legislations and policies ensuring a smooth and fully compliant environment for international/ domestic clients intending to do business in India. We provide you with a single point of contact for all your compliance needs, who then efficiently interacts with the various internal PAN India teams ensuring compliance, be it book keeping as per Indian GAAP/ other GAAPs, payroll processing, deposit of various taxes or filing of different returns.

Our specialized advisory teams assist you in decision making with analysis of GST implications on complex commercial transactions, providing detailed reports simplifying the complex terminologies and intricacies.

Financial Accounting – Conversant with Indian and international accounting software’s viz. Tally ERP, Qickbook, Xero, SAP etc.

Virtual CFO – Virtual Chief Financial Officer (CFO) services by managing, providing analytics and business insights for decision making requirements.

Payroll – Set-up, maintain and ensure timely and accurate processing of employee payroll in line with payroll manual, HR policies and regulations.

Compliance Diagnostics – Comprehensive diagnostic check of business to identify and remediate compliance gaps.

Debtor/ Vendor Reconciliation – Analysis of agreements, scrutiny of transaction at invoice level to affirm book balance is in conformity with the balance at other end, aging analysis and over viewing/ follow-up assistance in collection and Payments.

Inventory Management – Assistance in managing inventory through controlling re-order levels, overseeing transportation, monitoring storage of the same, notifying on the unnecessary leakages.

Fixed Asset Verification – Verification of fixed assets for the purpose of financial accounting, preventive maintenance, control and theft deterrence.


GST
Are You Ready?

Our experts can assist you in Complying with GST Law.

A supplier must register in each of such state or union territory from where he effects supply if the taxable value of supply exceeds the threshold limit. In GST registration, the supplier is allotted a 15-digit GST Identification Number called “GSTIN”, and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal.

A registered person irrespective of their nature i.e. proprietary concerns/partnership firms/ LLP/ AOP/ HUF/ companies etc has to follow various statutory compliances monthly/ quarterly/ annually, as the case may be. Non-filling of the returns on the prescribed dates will attract interest, late fees, penalty as applicable. We also provide advisory for matters related to classification of an item as good/service, determination of HSN, place of supply, appropriate tax rate and any specific issue based on the requirement.

Monthly Returns

  • GSTR 1 Filing
  • GSTR 2A Input Cross verifying
  • GSTR 3B Filing

Certifications
A practicing Chartered Accountant is required to certify various forms related to reconciliation under GST audit, declaration in refund application, declaration for availing input tax credit when such declared amount exceeds the prescribed amount under law.

Annual return
An annual return must be filed once in a year by the registered taxpayers under GST on the due date as prescribed under law. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGST and IGST. It consolidates the information furnished in the monthly or quarterly returns during the year. The types of annual returns are summarized hereunder.

Form To be filed by
GSTR-9 Regular taxpayers
GSTR-9 A Persons registered under composition scheme
GSTR-9 B E-commerce operator

GST Audit
With the rationale of verification of turnover declared, taxes paid, refund claimed, input tax credit availed, and assuring adherence to compliance with the provisions of GST Act or the rules government has mandated the furnishing of an audited statement of accounts and reconciliation statement for registered persons having turnover exceeding 2 crores on or before 31st December following the end of such financial year without relaxation to voluntarily registered persons. The types of GST audit are

  • Annual Audit
  • Audit by tax authorities
  • Special Audit

Annual audit under GST comprises of furnishing a statement in Form 9C, duly certified by a CA/CWA. A registered person whose annual turnover exceeds Rs 2 crores during the financial year, need to file a statement of reconciliation between the annual returns in GSTR-9 and the figures mentioned in the audited financial statements in Form-9C. Such person is also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C. Section 35 (5) read with section 44(2) of CGST/SGST Act and relevant rules thereof provides for the manner of audit of records and class of registered persons who are required to get his accounts audited from Chartered Accountant or Cost Accountant.

ETEA is a one stop solution for all your requirements for advisory on specific transaction, compliance and audit under Goods and Services Tax (GST) in India along with pre-GST taxes.


Implementation of Ind AS

The Indian Accounting Standards also known as Ind AS and are structured in line with the International Financial Reporting Standards (IFRS). The nomenclature for the naming and numbering of Ind AS is same as that of IFRS With Ind As compliance being mandatory for specified companies, for companies operating in India need to prepare for Ind AS implementation. Businesses should firstly develop an outline of how the new standards will replace existing ones, and then look to embed Ind AS into their operational systems, train their financial teams, and ensure all company managers understand the new accounting principles.

These standards have introduced several changes in the way companies report financials, including how they account for income and expenditure and items in the balance sheet. Ind AS is different from the existing Indian GAAP framework in following key aspects:

  • Fair valuation
  • Substance over legal form
  • Emphasis on the Balance Sheet
  • New framework is principle based, rather than rule based.

Impact of Ind AS (Illustration)
The volume and breadth of differences between Indian GAAP and Ind AS is enormous. Further, its impact will vary by industry and for each company. Ind AS will cover every area comprising reported revenues, expenses, assets, liabilities and equity. Companies have to devote substantial amount of their time especially in the following areas while preparing for Ind AS adoption.

  • Revenue recognition
  • Financial Instruments
  • Consolidation
  • Business Combination
  • Taxes

Key steps to be followed in implementation of Ind AS:

  • Preliminary impact assessment on financial statements of company -An initial assessment required to be done to identify standards which will have impact on financial statements in terms of recognition, measurement, disclosure or classification of items as per Ind AS in comparison of existing accounting standards.
  • Key Ind AS standards with an impact on financial statements of company -A detail comparative presentation needs be prepared to assess its impact for each key Ind AS in restated balance sheet and income statement at conversion date.

First time adoption of Ind AS involves the following:

  • Selection of appropriate options as per Ind AS 101, which contains the transition provisions for an entity to adopt Ind-AS for the first time.
  • Preparation of opening balance sheet as at under Ind AS.
  • Preparation of financial statements under Ind AS from starting of adopting FY.

Exceptions to the retrospective application of other Ind AS:
This Ind AS prohibits retrospective application of some aspects of other Ind ASs. The implementation of Ind AS is a major change process requiring substantial preparation and training effort for which the company must establish a project team and dedicated considerable resources. Our audit methodology will include thoughtful communication with the board of directors, shareholders and other stakeholders for Implementing Ind AS, which is likely to impact key performance metrics. Internally, Ind AS implementation can have a wideranging impact on a company’s processes, systems, controls, income taxes and also contractual arrangement. We assist in full-fledged implementation of Ind AS through strategic assessment, a proper audit plan, arrangement of trainings for the staff, providing the proficient staff with excellent Ind AS knowledge, good project management and finally ensuring a smooth Ind AS conversion.


Internal Financial Controls (IFC)

Internal Financial Controls (IFC) framework is an integral part of overall internal financial controls program of a company. Internal financial control refers to the policies and procedures adopted by the company for ensuring:

  • Orderly and efficient conduct of its business,
  • Including adherence to company’s policies,
  • Safeguarding of its assets,
  • Prevention and detection of frauds and errors,
  • Accuracy and completeness of the accounting records,
  • Timely preparation of reliable financial information

Internal control is a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

Internal Financial Control is not solely a policy or procedure that is performed at a certain point in time, but rather a continuous process operating at all levels within the Company.

Legal Requirements of IFC In India
Schedule IV (II) (4):
Independent director shall satisfy themselves on the integrity of financial information and that of financial controls.

Section 134(5)(e) of the Companies Act 2013:
The report by Board of Directors (BoD) shall include a statement ensuring implementation of adequate internal financial control and adherence of policy and procedures adopted by the company with an objective of orderly and efficient conduct of business, safeguarding company’s assets, prevention and detection of frauds for accuracy and completeness of the accounting records and timely preparation of reliable financial information.

Section 143 (3) (i) of the Companies Act, 2013:
Auditor’s report should state the adequacy and operating effectiveness of the Company’s internal financial controls

Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014:
The Board of Directors’ report of all companies to state the details in respect of adequacy of internal financial controls with reference to the “financial statements”.

Internal Control over Financial Reporting ('ICFR')
ICFR may be defined as a process designed by, or under the supervision of, the company’s principal executive (CEO) and principal financial officers (CFO), or persons performing similar functions and effected by the company’s Board of Directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the generally accepted accounting principles and includes those policies and procedures that:

  • Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
  • Provide reasonable assurance that transactions are recorded as necessary, to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of the Board of Directors and management of the company; and
  • Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

The above definition of ICFR includes the controls that ensure ‘effectiveness and efficiency’ of a company’s operations and ‘compliance with applicable laws and regulations’ to the extent that those directly relate to the preparation of financial statements.

ETEA provides a one stop solution for all your IFCR needs starting with devising Business Process Narratives (BPN), Risk Control Matrix (RCM) & establishing Test of Controls (TOC) for each business process. We also evaluate the existing BPN, RCM & TOC, as per the requirement.


Internal Audit

An effective internal audit is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organization. Organizations are increasingly leveraging internal audit as a strategic resource, recognizing that internal auditors’ broad and deep perspective of operations, risks and potential opportunities can help inform business decision-making. All organisations are subject to fraud risks and there have been several instances when frauds have disgraced organisations as a whole. With increased regulatory focus and widespread negative impact of frauds, the managements and senior executives are increasingly concerned about the vulnerability and exposure of their businesses/ organisations to frauds and whether or not they are adequately protected. This emphasizes the need of internal audit in fraud risk management.

Mandatory Requirement For Internal Audit In India
Section 138 of the Act was enforced with effect from 1st April 2014. As per section 138 of the Companies Act, 2013, such class or classes of companies as may be prescribed shall be required to appoint an internal auditor to conduct internal audit functions and activities of the company. Accordingly such class or classes of companies have been prescribed in Companies (Accounts) Rules, 2014 by Ministry of Corporate Affairs. The following class of companies shall be required to appoint an internal auditor namely,

Listed companies : – Appointment of an internal auditor is mandatory

Unlisted public company and private companies : – Appointment of an internal auditor is mandatory if either of the following criteria are met

Criteria* Unlisted Public Companies
Paid-up share capital INR 500 million (50 crore)or more
Turnover INR 2 billion (200 crore)or more
Outstanding loans or borrowings from banks or public financial institutions INR 1 billion (100 crore)or more
Outstanding deposits INR 250 million (25 crore)or more

*to be checked for the preceding financial year

However, a company can also on sole discretion opt for internal audit even if it does not qualify for the mandatory requirements due to several benefits stated above.

Our audit methodology includes making recommendations for improvement, not just to express numbers and ensure compliances. The recommendations are realistic because we want you to implement them. We also ensure our clients are updated all around the year of accounting, financial and regulatory developments that may impact their business. Working in the capacity of an internal auditor, we provide following services:

  • Risk Assessment and development of risk based audit plan;
  • Evaluating the adequacy of the system of internal controls;
  • Recommend improvements in controls;
  • Assess compliance with policies and procedures and sound business practices;
  • Assess and ensure compliance with legal and contractual obligations.
  • Review operations/programs to ascertain whether results are consistent with established objectives and whether the operations/programs are being carried out as planned.