- Hi, I am Vikas Kumar, a Senior Partner and CEO at T R Chadha (TRC), a 75+-year-old firm that has managed to stay relevant even today.
- We are fully aligned with the fact that India is one of the fastest-growing economies in the world.
- Here is how TRC built a strong practice and why CA firms, even the ones small in size can grow exponentially in this decade.
Back story
In 1991, I joined T R Chadha as an article trainee.
I qualified as a Chartered Accountant in January 1993 and continued with the firm. In August 1995, I became a Partner. I was the youngest Partner in TRC, at that time.
A pivotal moment in my professional journey occurred with the establishment of our Mumbai office in 1998. I was tasked with spearheading its expansion. It was here that I truly grasped the limitless growth potential.
Fast forward to 2019, TRC adopted a Corporate Structure and I was made the Deputy CEO. In 2023, I became their first CEO.
Previously as a Senior Partner, I only managed a few branches, but now, many of the centralized operations have started reporting in, and more will gradually.
I now oversee the entire development of quality practices and growth initiatives. Furthermore, I focus on risk mitigation to minimize potential risks during the firm’s development and growth.
Additionally, I ensure that all the necessary measures are in place to comply with regulations.
These, I believe, are the key changes in my role.
T R Chadha’s growth journey over the last three decades
When I joined the firm in the early 90s, it was one of the top CA Firms with a presence only in Delhi.
Over the years we have witnessed tremendous growth.
- From 150 team members in 1991 to 950+ in 2024,
- Offices in 11 different locations across India.
- Previously, we were engaged in approximately 18 to 20 different types of tasks. At present, we have expanded our repertoire to include over 100 diverse tasks that we can provide to our esteemed clients.
- We are affiliated with the Public Company Accounting Oversight Board (PCAOB) in the United States. This affiliation allows us to conduct statutory audits for clients based in the US.
- In the Gulf Cooperation Council (GCC) region, we have our affiliated firm called TRC PAMCO Middle East.
How was this possible? By implementing numerous changes and revamping our practices within the firm.
Corporatization
The magic happened when Managing Partners Manu Chadha and Sumant Chadha decided to adopt a corporate approach to our firm’s operations.
They declared that there is a need for diversification, inclusivity, and clear leadership, which can propel us toward success.
Increased risk mitigation
From client onboarding to signing the final report, we have increased our risk mitigation measures across the board.
Established committees
We have also set up many committees now. For instance, we have a committee that decides which clients to onboard.
Stringent Client onboarding
We cannot just say that we will onboard someone just because it is a large client.
Any partner who wants to take on work has to demonstrate to the committee all the details, including, why they want to take on that client, how they will ensure appropriate risk management, and who the promoters are, among others.
This is how TRC is growing, not only in size but also in quality.
Top performing service lines at T R Chadha
Although I attribute our success to our corporatization, I cannot overlook the significance of our service lines, which serve as the foundation of TRC.
Assurance
Assurance is perhaps the best-performing service line at TRC.
Not just TRC but several prominent Indian CA firms have recently begun to receive a significant amount of work in the Assurance field.
Companies, including many listed ones, have started to explore options beyond the traditional Big 4 firms.
The modifications made by RBI in the rules for appointing auditors in the Banking and NBFC sectors have brought forth numerous opportunities.
Risk and Governance
We have also made significant strides in this field.
TRC is well known among various MNCs, and clients in the Banking, Financial Services, and Insurance (BFSI) sector for providing quality internal audits, Internal Control over Financial Reporting (ICFR) testing, and Standard Operating Procedure (SOP) preparation.
Tax
Taxation is also on our list of top-performing service lines.
The complexities in Goods and Services Tax (GST) implementation, as indicated by the surge in notices and other related matters, have proven to create numerous opportunities.
I believe GST-related services will continue to be in high demand in the foreseeable future, and we at TRC are gearing up for that.
Consulting
Over the years we have undertaken a considerable amount of work in areas such as due diligence and valuations, thanks to the current business landscape in India.
Companies, including SMEs, have shown great interest in public listings and mergers. This creates a significant window of opportunity for us to provide our expertise.
IT Audits
We are actively working towards developing this practice. We have even formed an internal team to support these efforts.
Previously, we did not have relevant audit software, but now we are using internationally certified software, some of which is also employed by one of the Big 4 firms.
Looking ahead
Today our diverse team consists of 20 Partners and 950+ employees, with over 170 Chartered Accountants and other domain experts.
Despite the substantial growth we have achieved at TRC, we are constantly seeking out new opportunities to explore.
Mergers: If we come across a firm with niche expertise such as international taxation or IT audits, we might consider forming a partnership or acquisition.
Invest in AI: Speaking of scaling our firm, how can I miss AI or technology in general?
Let me provide you with a simple example. Initially, we had allocated around 8 to 10 individuals to Know Your Client (KYC)-related assignments for a company in the Banking, financial services, and insurance (BFSI) sector.
Our IT team developed a bot that reduced the number of people required to just two. This bot now handles more than 80-90% of the workload, resulting in reduced costs for the client and improved efficiency and margins for us.
I understand that implementing such technology takes time, as well as the cost but we have no choice but to invest in this technology.
Sustainability practice: Investors and large MNCs are progressively focussing on ESG and Sustainability.
This offers a significant opportunity not only for the Big 4 firms but also for other mid-sized firms. This practice will continue to evolve and expand.
We have established a dedicated team to focus on sustainability. We plan to not only assist companies in developing their ESG practices but also conduct their audits.
Focus on tier 2 / tier 3 cities: If your firm is associated with SMEs, whether in a tier-2 or tier-3 city, chances are you will experience growth as they strive for IPOs and M&As.
We have first-hand experience of acquiring numerous clients from SMEs in a tier 2 city.
Emergence of IPOs: With the rapid growth of businesses, those with a turnover of INR 10-20 Crores have experienced remarkable growth, reaching INR 60-70 Crores in the past three years.
This growth opens up the possibility of planning for an IPO in the next two to three years. As a result, midsize CA firms that were previously handling audits will find themselves in a different position, needing to handle larger audits
Global expansion: We have plans to explore other geographies in the future.
Wrapping up…
India will continue to grow for the next 10 years at least, considering its sizable young and energetic workforce, IT prowess, along with the government’s initiatives.
Nowadays the opportunity is not only for large CA Firms or those in tier-1 cities.
For instance, we started an office in Tirupati to primarily work with TTD Temple, but eventually, we started receiving a lot of assignments from local businesses.
I foresee a lot of opportunities emerging in tier-2 and tier-3 cities.
All you have to do is think like an entrepreneur, invest time and energy into your practice, and create a strategy to experience growth.
