Case Study
Transaction Accounting Advisory to Streamline Post-Acquisition Financial and Regulatory Reporting
One of the largest banks by assets and among the top ten globally by market capitalization, it acquired one of the leading housing finance companies. Through its subsidiaries, it also operated across life insurance, general insurance, asset management, private equity, and student loan financing.
The business situation
- The bank acquired the housing finance company and its subsidiaries
- The bank is listed on the USA and other exchanges. Post-merger, the subsidiaries of the housing finance company were required to:
- Submit interim and annual local GAAP financial information for the bank’s reporting requirements; Compliance with regulatory reporting requirements
- Submit semi-annual and annual US GAAP financial information for the bank’s US GAAP reporting requirements
- Standardization of processes and controls for compliance with the principles of the Sarbanes-Oxley Act, 2002
- Multiple reporting requirements, complexity of reporting, stringent timelines, and limited team bandwidth required the bank to seek external support to ensure it adhered to the statutory and regulatory reporting requirements
Our team’s role
Specialized Team Expertise
Identifying a team with deep FS sector knowledge, US GAAP and SEC expertise, regulatory accounting and banking regulations, and SOX experience to furnish the required information to the bank
Accounting Policy Alignment and SOX Compliance
Supporting subsidiaries in identifying and quantifying accounting policy differences from those followed by the bank under local and US GAAP, aligning the chart of accounts and financial reporting formats, and updating the risk control matrix under SOX requirements
Regulatory Reporting Support
Assisting in designing formats and workflows for regulatory reporting to the regulator
The value our team added
- The bank completed the first interim reporting under Indian GAAP following the merger, within their stipulated timelines of SEBI requirements – this required significant optimization of interim reporting by the various subsidiaries
- We assisted the subsidiaries by enhancing the SOX documentation, including remediation of design deficiencies
- The first set of regulatory submissions to RBI were completed without any delay
Simplify Post-Merger Reporting Complexity
From RBI Requirements to SOX Compliance, We Standardize Processes and Deliver Audit-Ready Assurance
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