CASE STUDIES

BKR presence in Guernsey proves valuable for Mumbai firm

Tim Lowe of our member firm Lince Salisbury (Guernsey, Channel Islands) was approached by Vikas Kumar, a Partner at T. R. Chadha & Co. (Mumbai, India) with a view to undertaking an audit of the holding company for an Indian Group of companies. It transpired that the bulk of the group audit was to be completed in Mumbai and Cyprus by T. R. Chadha & Co. The size of the business and its location made it difficult for Lince Salisbury to be the lead auditor. Having liaised with Simon Wagman of Blick Rothenberg (London, United Kingdom), it was quickly determined that it would be better for T. R. Chadha & Co. to be the lead auditor and for Lince Salisbury to conduct their work on behalf of our Mumbai firm.

Therein lay the second problem. Guernsey law only allows for a Guernsey regulated business to perform audits in Guernsey. The law did allow other external firms to conduct audits but only if they had been given licence by the States of Guernsey (the government). Following a few phone calls with the Commerce & Employment Department and Law Officers at the beginning of March 2012, it was determined that no other non-Guernsey audit firm had been approved in this way and it was arranged for the relevant requirements to be communicated to T. R. Chadha & Co. by the Law Officers.

Tim is pleased to report that his firm successfully facilitated the process and on 16th April 2012 T. R. Chadha & Co. became the first Indian Audit firm to be appointed as an external approved audit firm in Guernsey, with the approval being valid for 3 years.

This is another fine example of how solutions can be found for clients by working closely with other BKR firms and thereby fully utilising the resources and expertise within the BKR association.