An Engineering design and Consulting Firm specialising in Mineral Processing and Mining Infrastructure, with global operations, set up a Joint Venture in India to provide services to coal processing plants in India.
The joint venture arrangement ran into early operational and managerial difficulties as a result of which the accounts fell into arrears. Various direct, indirect tax and other regulatory compliance issues remained unattended. Corporate filings got delayed. Transfer Pricing compliance issues cropped up. Labour regulations compliance posed a challenge.
Sterling was called upon to bring order to a messy situation like this.
How we helped:
Sterling prioritised various non compliance issues based on the risk of penal consequence for each default. With the help of previous period back up of accounting data, it reconstructed the entire year’s accounts from the source documents furnished by the company. Working overtime, it ensured that all tax compliance issues were regularised and corporate filings done.
Accounting arrears was cleared. Financial statements were prepared in accordance with the Indian GAAP and got audited without any major adverse audit objections. Corporate filings and labour regulations compliance were made up to date. Outsourced services by Sterling saved the client nearly a Million of Rupees in staff costs and benefits had they set up own accounting and taxation department. The Management could focus on the key business issues to put back the company’s operations on track.