Managing Accounting & Taxation for the Indian Subsidiary of a Large UK-Headquartered Steel & Engineering Manufacturer
A multinational manufacturer with UK headquarters and multiple manufacturing units across India needed to transform their fragmented, entity-driven accounting and taxation operations into a centralized Shared Service Center (SSC) model to achieve standardization, compliance, and cost efficiency.
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Tenure 5+ Years
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ERP Systems SAP & Tally
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Scope Taxation & Accounting
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SLA Compliance Yes
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SOX Compliance Yes
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Tax Scope Multi-State / Multi-Unit
Operational Challenges Before MYND
The client's Indian operations had grown organically over the years, resulting in a decentralized structure where each entity and location managed its own accounting and taxation independently. This fragmented approach created significant operational and compliance challenges.
Industry Context
Steel and engineering manufacturing in India involves complex multi-state operations with GST implications across raw material procurement, inter-unit transfers, and finished goods sales. Each manufacturing unit must comply with state-specific regulations while maintaining consolidated reporting for the UK parent company.
Individually Entity-Driven / Location-Based Structure
Each of the 8 entities operated independently with its own accounting team, processes, and reporting timelines. This siloed approach meant duplicate efforts, inconsistent practices, and no economies of scale. Finance teams at each location worked in isolation, making consolidated reporting for the UK headquarters time-consuming and error-prone.
Lack of Standardization
Without unified Standard Operating Procedures (SOPs) or process documentation, each unit followed its own interpretation of accounting standards and tax compliance requirements. This led to inconsistencies in journal entries, reconciliation approaches, and statutory filings. The lack of standardization also made it difficult to train new staff or ensure continuity during employee transitions.
High Churn Rate Leading to Backlog of Accounting
The decentralized structure and lack of career progression opportunities led to high employee turnover at individual locations. Each resignation created knowledge gaps and accounting backlogs as replacement resources required significant ramp-up time. The backlog accumulated across multiple periods, affecting month-end closes and statutory filing timelines.
Missing of Critical Compliance & Timelines of Reporting
The combination of backlogs, non-standard processes, and resource gaps resulted in missed statutory deadlines including GST filings, TDS returns, and advance tax payments. These delays exposed the company to penalties, interest charges, and potential scrutiny from tax authorities. Reporting to UK headquarters was frequently delayed, affecting group-level consolidation.
MYND's Shared Service Center Implementation
MYND deployed a comprehensive transformation strategy to consolidate all 8 entities into a centralized SSC model, leveraging our expertise in multi-entity accounting, SAP and Tally integrations, and Indian taxation compliance.
Transition within 2 Months
Executed a rapid but systematic transition of all accounting and taxation operations to MYND's centralized delivery model. This included knowledge transfer, system access setup, and parallel run validation to ensure zero disruption to ongoing operations.
Completed Backlog of Pending Compliances within 3 Months of Takeover
Deployed a dedicated task force to clear accumulated backlogs across all entities including pending reconciliations, statutory filings, and reporting gaps. Prioritized based on compliance risk and penalty exposure to minimize financial impact.
Creation of SSC for All 8 Entities & Centralized Delivery
Established a unified Shared Service Center consolidating accounting and taxation functions across all 8 legal entities. Implemented common workflows, centralized master data management, and unified reporting structure for efficient operations.
Prepared SOP/Process Notes & Standardization with Stakeholder Sign-off
Documented comprehensive Standard Operating Procedures for every accounting and taxation process. Obtained formal sign-off from major stakeholders including India CFO and UK finance team to ensure alignment with group policies.
SLA/KPI Driven Approach
A key component of MYND's solution was implementing a rigorous SLA and KPI-driven governance framework. This ensured measurable accountability, transparent performance tracking, and continuous improvement across all accounting and taxation processes.
The framework was designed to meet both SOX compliance requirements of the UK parent company and Indian statutory obligations, with regular reporting to stakeholders on both sides.
Every process was mapped to specific SLAs with defined turnaround times, accuracy thresholds, and escalation protocols – creating complete transparency and accountability.
Turnaround Time SLAs
Defined timelines for every transaction type from invoice processing to GST filing with daily tracking and exception reporting.
Accuracy Metrics
Quality scorecards measuring first-time-right percentages for journal entries, reconciliations, and statutory returns.
Compliance Tracking
Real-time compliance calendar monitoring all statutory deadlines across multi-state operations with proactive alerts.
Monthly Reporting
Comprehensive dashboards shared with India and UK leadership covering all KPIs, exceptions, and improvement initiatives.
Measurable Business Outcomes
The transformation from a fragmented, entity-driven structure to MYND's centralized Shared Service Center delivered significant improvements across cost, efficiency, compliance, and visibility.
Cost Savings
Significant reduction in operational costs through centralization, elimination of duplicate roles across entities, and economies of scale in talent management and technology utilization.
Single/Centralized SPOC for Entities
One dedicated point of contact managing all 8 entities, simplifying coordination with UK headquarters and eliminating the need to chase multiple location-based teams for information.
Process Standardization
Unified SOPs across all entities ensuring consistent accounting treatment, standardized reconciliation processes, and uniform compliance practices aligned with both Indian and UK requirements.
Improved Reporting & Compliances
Timely and accurate statutory filings across multi-state operations, on-time group reporting to UK headquarters, and complete audit trail for SOX compliance requirements.
Comprehensive Accounting & Taxation Services
MYND delivered end-to-end accounting and taxation services across all 8 entities, covering the complete spectrum of finance operations while ensuring compliance with both Indian statutory requirements and UK group reporting standards.
Accounting Services
- General Ledger accounting and maintenance across SAP and Tally
- Accounts Payable processing including invoice verification and payment scheduling
- Accounts Receivable management and collections tracking
- Bank reconciliation and cash management
- Inter-company accounting and elimination entries
- Fixed asset accounting and depreciation management
- Month-end and year-end closing activities
- MIS reporting for India and UK headquarters
Taxation Services
- Multi-state GST compliance including GSTR-1, GSTR-3B, and annual returns
- TDS computation, deposit, and quarterly return filing
- Advance tax computation and payment management
- Income tax return preparation and filing
- Transfer pricing documentation support
- Tax audit support and liaison with auditors
- Assessment and appellate proceedings support
- Withholding tax compliance for international payments
Technology Stack
Understanding Steel & Engineering Manufacturing Finance
The steel and niche engineering products industry in India presents unique accounting and taxation challenges due to complex supply chains, multi-state operations, and significant capital investments. MYND's team brought deep understanding of these sector-specific requirements.
From managing GST on inter-unit stock transfers to handling customs duties on imported raw materials and spare parts, our specialists ensured every transaction was correctly classified and compliant with applicable regulations.
Supply Chain Complexity
Multi-state procurement of raw materials, inter-unit transfers of semi-finished goods, and finished product distribution across India.
Capital Intensive Operations
Large-scale machinery and equipment requiring specialized fixed asset accounting, depreciation policies, and capital expenditure tracking.
International Reporting
UK parent company requirements for consolidated reporting, transfer pricing documentation, and compliance with international accounting standards.
Manufacturing Sector Expertise
8 Legal Entities
Consolidated under one SSC
Multi-State Operations
GST compliance across states
Dual ERP Environment
SAP and Tally integration
SOX Compliant
Meeting UK group requirements
5+ Years Partnership
Long-term trusted relationship
Facing Similar Accounting & Taxation Challenges?
Whether you're managing multiple entities, struggling with compliance backlogs, or looking to standardize processes across locations, MYND can help transform your finance operations into an efficient, centralized Shared Service Center.
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