End-to-End Accounting Services for an India-Based Healthcare Technology Subsidiary

Client Story

The client is an India-incorporated healthcare technology and digital pathology company that builds Microsoft chip-enabled pathology systems, robotic testing platforms and software for blood testing and diagnostic workflows. The India entity is a major R&D, technology and manufacturing-export hub, selling primarily to its U.S. parent under transfer pricing arrangements, with annual revenue of approximately ₹100 crore. Between 2016 and 2025 the business passed through three successive ownership changes, each raising the bar on finance discipline, reporting depth and transaction readiness.

The Bottleneck

1. Limited internal finance and tax capability: The internal operational team had limited grasp of accounting controls and tax applicability — payments were going out without correct tax deductions and finance processes were inconsistent across functions.
2. Manual inventory reconciliation: Inventory reconciliation was being done manually with no system support, creating tracking gaps, reconciliation delays and limited visibility for management.
3. Rejected ₹4 Cr GST refund with lapsed statutory timelines: A GST refund application worth roughly ₹4 crore was rejected during FY22–23 after department communications were not escalated in time and statutory timelines lapsed — creating a serious compliance and working-capital problem.
4. Transfer pricing exposure on a parent-export model: Because the India entity transacts almost entirely with its U.S. parent, transfer pricing compliance and supporting documentation had to be airtight — a gap any acquirer or auditor would catch immediately.
5. Repeated ownership transitions raising the reporting bar: Three acquisitions in under a decade meant continuous shifts in reporting structures, group queries and due-diligence demands — each new parent expected deeper financial workings, faster turnaround and cleaner audit trails.

The Solution

1. Process Discovery, Review & Assessment: Implemented structured process governance through defined timelines, stakeholder coordination, workflow mapping, and standardized documentation practices.
2. Embedded outsourced finance team with review controls: Stood up a dedicated FA team building the running end-to-end accounting on Tally, layered with structured finance reviews, tax applicability training and a payment validation workflow where every transaction is reviewed before approval.
3. StockOne implementation for inventory reconciliation: Recommended and implemented the rollout of StockOne inventory management software, supported by monthly reconciliation reviews and on-site visits that materially improved reconciliation efficiency.
4. Redesigned GST refund strategy with a customs-based route: The FA tax team restructured filing frequency – monthly refund filings for export of goods, quarterly for export of services — and routed export-of-goods refunds through customs-based mechanisms, an uncommon and differentiated approach in the market.
5. Transfer pricing documentation and direct/indirect tax support: Built ongoing transfer pricing reporting and documentation support alongside income tax compliance, tax deduction reviews, GST compliance, GST return filing and export-related GST documentation — making the parent-export model fully defensible.
6. Continuous transaction, audit and IFC support through ownership changes: Delivered audit preparation, group reporting packs, related-party schedules and consolidation support; led India-entity due diligence and valuation support during the latest acquisition; and from FY25 added Internal Financial Controls (IFC) — process documentation and compliance support.

The Impact

• Recovered approximately ₹16 crore through restructured export-of-services GST refunds and an additional ₹4–5 crore through the customs/export-of-goods refund route — turning a rejected ₹4 crore refund into steady ongoing recovery and freeing up significant working capital.
• Maintained zero major accounting backlog with up-to-date books, timely monthly close and reporting-ready financial documentation at all times.
• Improved tax compliance, documentation controls and audit preparedness — with related-party schedules, ledger reconciliations and audit workings reviewed and ready ahead of each annual audit.
• Delivered seamless finance, reporting and due-diligence support across three successive ownership transitions, including India-entity due diligence and valuation support during the most recent acquisition.
• Built a scalable outsourced finance function covering accounting, tax, audit, transfer pricing, GST refunds, group reporting and IFC — operating as the effective finance team for the India entity.

Closing Statement

For India entities sitting under foreign parents, the biggest finance risks rarely announce themselves — refund windows lapse, tax deductions slip, transfer pricing documentation drifts, and the damage only shows up when an auditor or acquirer is already looking. An embedded outsourced finance function with the depth to run accounting, tax and refund recovery as one connected motion is what keeps those risks contained and the business audit- and transaction-ready year-round.

If your India entity is operating with a lean internal finance team while a global parent expects audit-ready books and due-diligence depth, we can help! Facing a similar challenge? Book a free 30-minute consultation with FinAdvantage.