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INDIA DESKSuccessful India Trip for Hall Chadwick Melbourne DirectorsIn February Peter Pryn and I spent 3 weeks in India visiting our existing clients, meeting with Carisma (our back office partners) as well as travelling with Austrade who had arranged a large number of positive meetings in the cities we visited.

We were in India for the release of the Indian Federal budget and it was interesting to see the general as well as economic discussion surrounding what was obviously an election-focused budget.

This year we went back to New Delhi after a 3-year absence and then travelled to Ahmedabad, Bangalore, Pune, Chennai and Mumbai.

Our trip followed on from the Victorian Premier’s visit a few weeks earlier. This was beneficial for us because Australia (and Victoria in particular) was still in the minds of many of the businesses we both met.

With many meetings each day the trip was extremely hectic and the assistance of Austrade and their team on the ground in each city was very much appreciated. Peter and I have no doubt in the longer term our trips will continue to provide an ever increasing flow of work for Hall Chadwick Melbourne.

We also met up with Michelle Wade, the Commissioner – South Asia, for the Victorian Government for the first time together with Mr Gopi Shankar the Director of Trade and Industry with whom we have been in contact for many years. We look forward to working closely with both of them into the future.

In previous years, with restricted time and tight schedules, we never took a single day off whilst in India with 100% of our time devoted to work.

This year we decided to have one day off and took a train to Agra – an experience not to be underestimated – where we visited the Taj Mahal and the Red Fort.

Both are stunning and are now ticked off the bucket list. Our guide was knowledgeable and provided a great insight into the history of both.

Our thanks to the Taj group of hotels who looked after us in spectacular fashion, as they always do.

We also had the opportunity to meet a potential new Prime Global member firm and answer any questions they had. We look forward to them progressing their interest in Prime Global.

Having planned a holiday to India midyear, I informed many companies we visited of this fact and a significant number requested I try to meet with them at that time. Accordingly I will combine the holiday with work and look forward to meeting with many of the friends and business contacts we have made over the past years.

To those who have not been on a holiday in India – consider doing so and I promise you will not be disappointed. For those who have not considered doing business in India – you need only look at the growth statistics regarding this world class economy that is growing at an exponential rate and see the possibilities.

Should any reader require assistance in undertaking business in this market please contact either myself or Peter Pryn and we will be more than happy to assist.

David Lissauer

New Delhi

INDIA

MumbaiPune

BangaloreChennai

Ahmedabad

[Above] The Taj Mahal [Below] The Red Fort

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INDIA DESK

Detailed Analysis of the Union Budget 2018-19The Indian Finance Minister, The Hon Arun Jaitley presented the Union Budget 2018 on 1 February 2018. This year’s Budget was in line with the Government’s mission to transform India by strengthening agriculture, rural development, health, education, employment, Micro, Small and Medium Enterprises (MSME) and infrastructure.

Government says, a series of structural reforms will propel India among the fastest growing economies of the world. IMF, in its latest update, has forecast that India will grow at 7.4% next year in the backdrop of services resuming high growth rates of 8% plus, exports expected to grow at 15% in 2017-18 and manufacturing back on good growth path.

Corporate Tax Proposal to extend reduced rate of 25 percent

currently available for companies with turnover of less than 50 crore (in Financial Year 2015-16), to companies reporting turnover up to Rs. 250 crore in Financial Year 2016-17, to benefit micro, small and medium enterprises.

Increase in cess on personal income tax and corporation tax to 4 percent from the present 3 percent. The new cess will be called the “Health and Education Cess” *

*A cess is also different from the usual taxes such as personal income tax, excise duty and customs duty in another respect. All the taxes collected by the government usually go into the Consolidated Fund of India (CFI) which can be spent on any legitimate activity. But the collections from a cess are required to be kept outside of the CFI to be spent only on the specific purpose for which it was levied.

Taxation of Start-ups The Finance Bill extends the benefit of section 80-IAC

to start-ups incorporated on or after April 1, 2019 but before April 1, 2021. Under section 80-IAC, a startup engaged in an eligible business can elect to exempt its income from income tax for any three successive years within a block of seven years commencing from the date of its incorporation.

Employment Government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years.

He proposed to make amendments in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to reduce women employees’ contribution to 8% for first three years of their employment against existing rate of 12% or 10% with no change in employers’ contribution.

MSMEs The Budget has given a big thrust to Medium, Small and Micro Enterprises (MSMEs) to boost employment and economic growth.

A sum of Rs. 3794 crore has been provided for giving credit support, capital and interest subsidy and for innovations. MUDRA Yojana launched in April, 2015 has led to sanction of Rs.4.6 lakh crore in credit from 10.38 crore MUDRA loans.

Finance Government will establish a unified authority for regulating all financial services in International Finance Service Centre (IFSCs) in India.

Digital EconomyDoubling the budget of Digital India to INR 30 billion in FY 2018-19 shows the Government’s vision and commitment towards digital economy.

NITI Aayog** will initiate a national program to direct efforts in artificial intelligence.** NITI Aayog (Hindi for Policy Commission), also “National Institution for Transforming India”, policy think tank of Government of India, established with the aim to achieve Sustainable Development Goals and to enhance cooperative federalism by fostering involvement of State Governments of India in the economic policy-making process using a bottom-up approach.

Its initiatives include “15 year road map”, “7-year vision, strategy and action plan”, AMRUT, Digital India, Atal Innovation Mission, Medical Education Reform, Agriculture reforms (Model Land Leasing Law, Reforms of the Agricultural Produce Marketing Committee Act, Agricultural Marketing and Farmer Friendly Reforms Index for ranking states), Indices Measuring States’ Performance in Health, Education and Water Management, Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored Schemes, Sub-Group of Chief Ministers on Swachh Bharat Abhiyan, Sub-Group of Chief Ministers on Skill Development, Task Forces on Agriculture and Elimination of Poverty, and Transforming India Lecture Series.

Article supplied by Neeraj Bhagat & Co. New Delhi, Gurgaon, Mumbai.

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INDIA DESK

Hall Chadwick Melbourne is committed to building two way trading opportunities with businesses in India. For several years, directors David Lissauer and Peter Pryn have fostered business relationships in Australia and travelled to India to meet clients, prospective clients, trade organisations and various government bodies. These face to face initiatives have enabled David and Peter to deeply understand the business culture in India and measure the vast opportunities ready for Australian companies looking to expand.

Economists have for some time forecasted the economic growth to exceed that of China.

The country’s GDP has been floating between 6.5% and 8% now for several years with inflation kept relatively in check.

The Central Statistics Office data shows that India grew at a rate of 7.2% in the December quarter (Q3) as compared to 6.3% in the second quarter (July-September) attributable to increased activity from the manufacturing and service sectors.

The growth result is respite for an economy recovering from after effects of large denomination note ban and rollout of GST.

The manufacturing sector grew 8.1% in the third quarter of 2017-18, from 6.9% in the previous quarter. Government revenue expenditure also accelerated to 24% from 12% in the previous period.

Non-agricultural growth has shown signs of improvement thanks to better investments and the service sector, including public administration and credit growth indicators.

Population growth is expected to surpass China by 2030 and India’s middle class is rapidly

growing. The demand for further development of infrastructure and

energy resources is great. The Modi government offers incentives and development programs that have attracted business interest from France, Germany, Spain and Japan. Australia however, has been slower

than other developed nations to capitalise these significant opportunities.

Peter and David put this down to a broad misunderstanding of the way business is done in India.

It is indeed a complex environment but it is certainly

feasible to achieve commercial success with the right approach.

In turn, Indian business establishing or expanding into Australia can experience difficulties if the correct registrations, structures and processes are not established from the onset.

To learn more about doing business with India, please contact Peter Pryn and David Lissauer on 03 9820 6400 or send an email to india@hallchadwickmelb.com.au

Understanding ways to do business is key to commercial success

GDP BETWEEN 6.5 – 8%

MANUFACTURING UP 8.1%

INFLATION IN CHECK

POPULATION TO SURPASS CHINA BY 2030

GOVERNMENT INCENTIVES FOR INFRASTRUCTURE TO ATTRACT BUSINESS

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INDIA DESKIndia’s National Financial Reporting Authority EstablishedBackground The Companies Act, 2013, Section 132 empowered the Central government to establish an authority named National Financial Reporting Authority (NFRA). The cabinet in a meeting on 1 st March 2018 approve draft rules to decide on NFRA’s jurisdiction and function .

Role of NFRA:As per companies Act 2013, section 132(2):

NFRA shall make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies (large unlisted companies).

NFRA shall monitor and enforce the compliance with accounting standards and auditing standards

NFRA shall oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures required for improvement in the quality of service and such other related matters as may be prescribed.

Powers of NFRA:As per companies Act 2013, Section 132(4): NFRA have the power to investigate, for listed companies and large unlisted companies or persons, the matters of professional or other misconduct committed by any member or firm of chartered accountants, registered under the Chartered Accountants Act, 1949. 9

Provided that no other institute (ICAI) or body shall initiate or continue any proceedings in such matters of misconduct where the National Financial Reporting Authority has initiated an investigation under this section .

Where professional or other misconduct is proved, NFRA has the power to make an order for imposing penalty of:

not less than 1,00,000/- rupees, but which may extend to five times of the fees received, in case of individuals; and

not less than 5,00,000/- rupees, but which may extend to ten times of the fees received, in case of firms.

NFRA also have the power to debar the member or the firm from engaging himself or itself from practice as member of the Institute of Chartered Accountant of India, for a minimum period of six months or for such higher period not exceeding ten years as may be decided by the National Financial Reporting Authority.

The government said the inherent regulatory role of the Institute of Chartered Accountants of India (lCAI) will continue “in respect of its members in general and specifically with respect to audits pertaining to private limited companies, and public unlisted companies below the threshold limit to be notified in the rules.”

Further, ICAI shall continue to play its advisory role with respect to accounting and auditing standards and policies by making its recommendations to NFRA.

‘We do not want to interfere in the professional autonomy of the institute or its functioning. The routine matters will stay there with the institute,’ said Arun Jaitley.

NFRA will have the power to investigate not only chartered accountants who audited a firm but also firms of chartered accountants and can impose a penalty of up to five times the fee received in case of misconduct by individuals and ten times the fees received in case of firms. It can also debar an auditor for up to ten years.

Article supplied by our PrimeGlobal colleagues S.P. Chopra & Co. a professional Accounting, Assurance

and Consultancy services firm established in 1949 and ranks among the top 20 firms in India. They have been

empanelled with Reserve Bank of India, Royal Audit Authority of Bhutan, United Nations and World Bank.

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HCM NEWS

Accountancy Services• Maintenance of accounting records.• Financial statement preparation.• Statutory financial statements.• Provision of financial statements

with variance to budget.• Maintenance of detailed fixed asset registers.

Audit Services• Audit of all business entities.• Audit of superannuation funds.• Audit of solicitor & estate agent trust accounts.• Audit of travel agents for IATA purposes.• Management & internal control audits to

review operations.• GST review audits.• Audits conforming to current Export Development

Grant requirements (EDG).• Sarbanes Oxley Compliance.

Succession Arrangements & Planning• Estate & succession planning.• Co-operation with clients’ solicitors

in preparation & updating of wills.• Administration of deceased estates.

Superannuation AdviceFor all superannuation matters including:• Setting up self managed super funds.• Transition to retirement matters.• Pension funds.• All financial planning advice about superannuation is

provided through the SMSF Advisers Network Pty Ltd – the Australian Financial Services Licence of the National Tax and Accountants’ Association Ltd. (NTAA).

Back Office Support• For local operations of international businesses.• Bookkeeping and administrative functions.• Advice / support for business structure

and registrations.• Payroll services.

Insolvency & Business Recovery• Pre-lending and security reviews• Investigating accountants’ reports• Workouts• Formal appointments, including: o Receiverships o Voluntary Administrations o Agent for the Mortgagee in Possession o Bankruptcies and Personal

Insolvency Agreements o Liquidations

Forensic Accounting• Review & investigation of businesses.• Valuations.• Matrimonial & business disputes.• Quantification of loss.• Due diligence.

Business Management ServicesOur innovative services include:• Business planning.• Budgeting & cash flow projections.• Development & regular monitoring

of Key Performance Indicators (K.P.I’s).• Regular review of management information &

analysis of variations to budget.• Applications for finance.• Valuations of businesses & companies.

Corporate Secretarial Services• Provision of shelf companies.• Maintenance of company

secretarial requirements.• Preparation & filing of annual

corporate documentation.• Provision of Registered Office.• Company search information.• Registration of business & domain names.

Taxation• Advice & information in relation to changes in

federal & state tax laws.• Advice in relation to international tax.• Complete taxation compliance service including

the preparation & lodgement of returns for Income Tax, Fringe Benefits, Payroll Tax, Land Tax, GST, PAYG, WorkCover & other returns as required by federal & state law.

• Advice on tax implications of the purchase, sale or exchange of any assets.

• Review of contracts, business agreements & other proposals in terms of tax implications.

StrategiesProvision of management & consulting services to medium large business, both public & private across a wide variety of industry groups, including: • Healthcare • Retail • Transport • Real Estate • Import • Hospitality • Financial

Liability limited by a scheme approved under Professional Standards Legislation. S.L.A. Partners Pty Ltd ABN 88 081 186 450

Hall Chadwick Melbourne Services Directory

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HCM NEWS

Hall CHadwiCk Melbourne

level 14 440 Collins Street Melbourne ViC 3000 australiaT: +61 3 9820 6400 F: +61 3 9820 6499e: hcm@hallchadwickmelb.com.auw: www.hallchadwickmelb.com.au

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Hall Chadwick Melbourne publishes HCM News, Newsletters, eUpdates and bulletins as a service to our valued clients and trust these are of benefit to you. If you think this (or any of our publications) may be useful to others please provide their details to our office. Important: Certain articles in HCM News Report are provided by Thomson Reuters and other contributors as a service for clients of Hall Chadwick Melbourne. This is not advice. Clients should not act solely on the basis of the material contained in HCM News. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas. HCM News is issued as a helpful guide to clients and for their general information. S.L.A. Partners Pty Ltd ABN 88 081 186 450 Liability limited by a scheme approved under Professional Standards Legislation.

Hall Chadwick Melbourne Directors

David Lissauer Robert Lissauer Mark Lipson

John Christopoulos

Peter Pryn Drew TownsendDavid Fairfull

Buck Xiao Craig de Vries David RossRichard Albarran