Desai Haribhakti Company, a leading tax audit and consulting firm, plans to widen its reach and services by increasing its network of small and medium practitioners (SMPs), and spilt its non-audit business for listing on the stock exchange.

The company, which is also into assurance and risk advisory, intends to increase its current network of SMPs to 5,000 from 1,300 in the next 3-5 years. At present, there more than 60,000 SMPs across India that provide audit services to various companies.

Embarking on the journey of multi-country growth, the company, which provides services in 30 countries from India, plans to go global by enrolling global partners on its platform and open offices in London, New York, Singapore, Tokyo, Dubai and Australia.

Dilip B Desai, Founder and Chairman, told businessline that the company has taken the cue for transforming into a big Indian global firm to fulfil Prime Minister Narendra Modi’s wish to see at least four Indian companies among the Big Eight in the near future.

Onboarding of SMPs on the company’s platform will also help them to grow their business and have exposure to larger companies, besides adopting the best practices in auditing, he said.

The company will have two different networks for audit and consulting with no conflict of interest. After achieving a scale, the non-audit business will be listed on the stock exchange to drive more transparency and have the currency for acquisitions.

Globally listed Accenture, he said, has a revenue of $60 billion and market capitalisation of $200 billion, which is a multiplier of little over three times. Given the type of non-audit services Desai Haribhakti does and intends to do, it will get a multiplier of five times, said Desai.  

Globally, there is a scarcity of audit firms compared to companies seeking audits. In India, it is just the reverse, and there is an urgent need to strike the right balance for quality services, said Desai.

It will also help DHC widen its reach by tapping into SME clients. The International Federation of Accountants report states that SMEs account for over 95 per cent of the enterprises globally and account for 60 per cent of employment besides contributing significantly to global GDP.

In order to propagate best practices, the company will lay down a code of conduct for SMPs to follow and ensure its implementation by using the best of technology.  

The company will also launch Global Skill Institution to elevate SMPs to global competent level in India and other countries to ensure the quality of service is not diluted.

The company will also launch Global Foundation for Policy Advocacy to suggest changes in regulations for promoting ease of business and drive knowledge on the contribution of CAs, lawyers to public and government.

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