Professional Opportunities for Chartered Accountants
- Banking and Financial Services December 2011
Abizer Diwanji
Mandatory Services – Plan vanilla services
MANDATORY SERVICES Book-keeping & Preparation of Financial Statements Audit of Accounts (branch and special audits) Internal Audit concurring audits of inventory concurrent audit of other companies Certifications and concurrent operations audits Tax Assessment & Returns (direct and indirect taxes) Monitoring of various covenants
ACCOUNTING
AUDIT
TAX
CORE AREAS
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
2
Key challenges faced b by the Financial Services sector in India Banks & NBFCs 1 Slowdown in credit off take 2 Increased regulatory intervention on incumbents
Insurance 1 Regulatory changes impact on business offtake 2Uncertainty on FDI reforms
3 Uncertainty on reforms process vis-a-vis foreign investment, WOS and entry of new private banks
3Increased capital strain on business with low renewals
4 Skill gap and talent management in PSUs
4 Impending IPOs and the likely guidelines
5 Increased NPA in books
5
Bank incremental credit in FY12 YTD is lower by 21.9% yoy compared to last year (FY11 YTD)
Capital Markets & Investment Management 1Pressure on Yields 2 Access to capital & growth strategy 3 Alternate investment classes emerging in commodities, metals
Access to third party distribution
Life insurers recorded a 21.6% drop in premium collection during 1HFY12. LIC fell 19.6%; private peers declined 26.1%
YTD India is amongst the worst performing market, on a relative basis, delivering -21% return
© 2011 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
3
Differentiated approach
Commoditized
Customized
Fees
• • Regulatory compliance • Compliance Framework
• Internal Audit • SOP
• • • • •
Due Diligence Dash boarding Data Analytics MPA Revenue Assurance
• Process reengineering • IA Transformation
Execution Complexity
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Introduce products which align with a specific sectors/client group: • IA : Focus on Group Audits • Revenue Assurance : Retail Banking • KSPRINT : PSU/ emerging banks • MPA : New NBFC / Bank Setup, program management office on BOT basis (to be formalized) • Regulatory Compliance : Capital Markets • CSA : For all distributed businesses • CA/CM (Analytics): Retail Banking and International corridors. • Due Diligence : Process & operational diligences • Governance Workshops/Business Reviews : Consulting at Partner / Director Level with CXO
4
Integrated solutions
Finance and risk transformation Driving regulatory agenda Planning & Transformation Integration and separation Market Entry, Integration & Separation
• “Group” vs. “Individual entity” level risk management • Improving Finance Function & Internal Reporting • Business Intelligence • Basel III • Regulatory & Compliance Reporting • IFRS • Sales force Transformation, CRM, Channel Strategy • Operations Transformation, Sales Force Effectiveness • PSU Transformation • Subsidiarization/Booking entity rationalisation • Recovery and resolution planning • Ring fencing and business restructuring • New Bank and NBFCs End to End Advisory • Legal Entity Rationalization, WOS • Portfolio Sales & Capital Management
© 2011 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
Non-mandatory Services – The Value Add NON-MANDATORY SERVICES Regulatory & Compliance – Advice, Management & Reporting (Basel, Solvency etc) Project Finance, Credit Analysis & Valuations IFRS and XBRL training Budgetary & Control Systems Forensic & Investigation Restructuring and CDR process Due diligence review on lending assets (pre lending and on going) Detailed Review of Operations risk management Valuation services – MTM of securities and shares M&A/ JV Related Tax & Regulatory Advisory Finance Function & Investor Management Transfer Pricing
ACCOUNTING
AUDIT
TAX
CORE AREAS © 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
6
Thank you CA Abizer Diwanji
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International").
