KPMG in India is here to make a difference for the better. As we continue on a journey of being the most trusted firm, our purpose acts as our guiding force. In a world where rapid change and disruptions are the new normal, we inspire confidence and empower change. We are committed to enabling others to succeed and simplifying what is complex. Quality and integrity are the cornerstones of everything we do. Our passion, expertise, curiosity, inclusive culture and focus on developing the leaders of tomorrow sets us apart from the rest as we drive meaningful change and impact for our stakeholders.
Our Values are our core beliefs, guiding and unifying our actions and behaviours. They are the foundation of our unique culture and reflect in our interactions with our colleagues, clients, stakeholders and communities.
Our Values enable us to bring out the best in our people. They give us a shared language through which we collaborate across the India firm and KPMG globally, leveraging our local market knowledge and specialised insights across the global network of member firms more effectively.
Our structure and governance
KPMG in India is a member firm of KPMG Global, an organisation of independent member firms affiliated with KPMG International Limited, which acts as the coordinating entity for the overall benefit of the KPMG global organisation.
KPMG in India has a robust governance structure guiding its activities, setting policies and managing risks.
As a multi-disciplinary organisation, we recognise that strong and clear leadership is critical to ensuring accountability across the organisation.
Our multi-disciplinary model ensures breadth and expertise for our clients and allows our workforce to develop, grow and prosper. It also gives us the stability and the trust that are synonymous with KPMG. Our complementary skillsets enable governments, non-profits and businesses to meet their most important challenges, from cybersecurity to pandemic response to digitisation.
The Board is a governance body charged with the key responsibilities of approving the firm’s strategy; protecting and enhancing the KPMG brand and reputation; and approving significant policy decisions and changes with which the firm and its people must comply. The Board is supported by independent external advisors.
The sub-committees of the India Board oversee critical aspects of the firm’s financial performance, compensation and benefits, risk and regulatory, and people and culture.
The leadership team (LT) oversees the strategy, performance, people agenda and day-to-day responsibilities of the firm, under the overall steer of the Chief Executive Officer (CEO). The Board and the LT work closely to enhance the positioning and impact of the firm.
Key responsibilities of the LT include:
- Setting growth aspirations, strategy, culture and client centricity
- Defining the operating model and structure
- Owning the annual operating plan, budget and P&L
- Risk management
- Engaging with the India Board on strategy, governance, performance and key risks
Our Impact Plan governance structure
Chaired by the COO, the LT oversees the strategic direction and development of OIP at KPMG in India. Led by the Head of Our Impact Plan, the OIP team comprises representatives from different departments who are responsible for managing Environmental, Social and Governance (ESG) issues and driving change under four key pillars.
United Nations Global Compact
As signatories to the UN Global Compact (UNGC) since 2002, KPMG International Limited is aligned to the UNGC’s 10 principles covering human rights, labour, the environment and anti-corruption.
As a member firm, KPMG in India is aligned with this alliance and core principles (for more information, see Page 82 of our Global Impact Plan 2023).
Quality is fundamental to maintaining public trust and professional reputation.
We define ‘quality’ as the outcome when engagements are fulfilled consistently, in line with the requirements and intent of applicable professional standards, within a strong system of quality controls. All our activities are conducted in an environment of objectivity, independence, ethics and integrity.
Over the years, our Quality Transformation Programme has helped us implement sustainable practices. These include strengthening governance, investing in technology, implementing more robust controls and refreshing our approach to training. Our Quality Monitoring and Compliance Programmes are consistent with, and in compliance with, KPMG’s Global Quality programmes.
Our Quality Management Systems are consistent, robust and compliant with the International Standard on Quality Management (ISQM 1) issued by the International Auditing and Assurance Standards Board (IAASB).
We have implemented a robust approach to support quality and we regularly monitor progress against each initiative through stakeholder engagement and timely action.
We are committed to serving in public interest and quality is the cornerstone of our vision of being the preferred choice for our people, clients and the public.
A responsible tax practice is an essential element of conscientious social behaviour. It is also a pillar of our overall governance framework.
Our firm follows the ‘Principles for Responsible Tax’ and considers it a critical element of our broad ethical framework. It is mandatory for our client-servicing teams to embrace responsible tax behaviour for creating a positive client impact with respect to tax accountability and transparency.
Principles of a responsible tax practice
Our tax advice will:
- Be supported by a valid basis in law
- Be based on the assumption that all material facts are known to tax authorities and all relevant disclosure requirements are properly met
- Be tailored to the circumstances of our clients, address any requirements of substance and purpose, and consider the intention of the legislators
- Clearly explain the technical merits and sustainability of relevant options available to our clients
- Consider any reputational risk and impact on stakeholders and communities, wherever such assessment is possible
We are committed to operating lawfully, interacting with integrity with revenue authorities and our clients, and being fully compliant with all applicable regulations.
Research-based tax advice
We have built a focused and technically sound team in the Department of Professional Practice, which focuses on in-depth research to guide our tax positions and opinions. Our advice is based on the applicable laws and facts presented by our clients. Our advice also explains the merits of our opinion to clients.
Tax transparency is often used as a key metric for demonstrating a responsible outlook towards tax and has become a topic of discussion in corporate boardrooms with ‘GRI 207: Tax 2019’ recognising the criticality of tax transparency in ESG frameworks and public disclosures. We actively encourage and assist our clients in publishing tax transparency reports.
Working with revenue authorities
We proactively use our voice for driving policy structuring through advocacy initiatives with the government – on our own account as well as by leveraging our participation in various forums, chambers, industry associations and client groups. We also actively engage with the revenue authorities on subjective interpretations of (new and existing) tax regulations, with a focus on technical merit, valid legal basis and material facts.
Global tax ecosystem
We keep abreast of global developments and trends in the tax ecosystem and actively take initiative to apprise and familiarise our clients with their nuances and potential impact.
We also apprise our clients of the importance of conducting business responsibly, creating structures that align with substance and value creation, and practising responsible tax behaviour. We are committed to working with integrity, delivering trustworthy solutions and quality services, and building sustainable relationships with our stakeholders.
Value-driven advisory services
Quality at source
All engagements are classified at the CRM/opportunity level and, based on certain criteria, subject to Deal Consultation Board (DCB) approvals. A 20-point opportunity scorecard serves as an objective lens, sets the tone for quality in engagements and lays down quality benchmarks, at the very beginning, for adhering to during execution.
Quality in execution
Critical engagements, based on their complexity and value, are closely monitored throughout their execution.
A subject matter expert (SME) is assigned to each engagement to provide feedback to the engagement partner for improving the quality of execution. In-flight reviews (IFR) provide timely inputs to the engagement partner and senior management in case any course correction is needed for delivering the engagement satisfactorily, with focus on the ‘Promises made to Client’ and ‘Promises made to KPMG’ at the outset.
Voice of Customer (VoC)
The client’s perspective, for us, is the ultimate measure of quality of delivery. The VoC programme ensures that we get unbiased feedback on critical engagements. In addition, our senior leaders connect with clients in person throughout the year.
ESG as a watermark in our organisation
We are deeply committed to the ESG agenda, both in the way we operate and through the imprint that our ESG team delivers to our clients and stakeholders.
Using a bouquet of homegrown and co-created applications, we are creating a positive difference for our clients and for the broader ecosystem as their respective ESG journeys evolve and mature.
In March 2022, we launched the India Decarbonisation Hub, which channelises advanced skills, capabilities and knowledge across the KPMG world, and helps us co-create innovative solutions enabled by technology. The Hub also serves as a platform for continuous engagement, dialogue and collaboration between industry, government, civil society and other stakeholders across the value chain, around emerging themes in India Inc.’s decarbonisation journey
Inauguration of India Decarbonisation Hub
The ESG learning journey
To help our people stay abreast of the changes and compliance needs in relation to ESG, we have provided a series of e-learning modules that equip them with general knowledge on ESG, climate-related risks, ESG-related assurance and other topics.
We have also launched an ‘ESG knowledge enhancement programme' – a specially curated learning pathway to help our partners gain a deeper view of KPMG’s ESG ambition and strategy, and to build a compelling point of view.
Bringing purpose and profit together
“‘ESG,’ a buzz word today, was known to very few some years back. KPMG in India had foreseen its rise to relevance and continued to invest in their people, building stronger portfolios and developing meaningful collaborations, which has helped us win exciting work with several clients. Today, we have a strong focus in almost every facet of ESG viz ESG disclosures, decarbonisation, climate strategy, sustainable finance, supply chain, EHS due diligence, corporate responsibility, Diversity & Inclusion and much more. This diverse portfolio has given me a unique opportunity to make a tangible impact on a larger scale. Our work here in ESG is an everyday reminder of the interconnectedness between businesses and the environment and the social fabric that sustains us all.
One of the proudest moments for me has been leading the GRI (Global Reporting Initiative) and ESG training portfolio. These endeavours have allowed me the opportunity to educate and share my insights with an array of stakeholders. It has been an immensely gratifying experience to witness the transformative moments when individuals comprehend the profound significance of ESG and its potential to shape the trajectory of businesses and societies.
My time in ESG advisory is not just about numbers and reports, it is equally about shaping a better world for our future generations. Through my work with KPMG in India, I discovered that purpose and profit could go hand in hand, and I am grateful for the opportunity to grow, learn and make a difference.“
The KPMG Global Code of Conduct outlines our ethical principles and expectations around how all KPMG colleagues treat each other, clients and the public. It demonstrates how our Purpose and Values inspire and guide our behaviours and actions.
All KPMG firms are required to have processes for assessing prospective clients, third parties and suppliers in relation to bribery and corruption. They must also assess the bribery and corruption environment annually and have processes to monitor, manage and control how their personnel and agents interact with government entities and officials.
Continuously strengthening our ethical culture is a crucial part of our journey towards accelerating business growth, capturing additional market share and becoming the most trusted professional services firm.
KPMG in India provides regular mandatory training to its people and partners on a wide range of topics, including our Global Code of Conduct, anti-corruption policies and procedures, and ethical principles.
of our people and partners completed the anti-corruption training in FY22.
Our approach to identifying risks
At KPMG in India, we know that trust is earned by doing the right thing, the right way, always. Risk Management helps us to foresee risks and take actions to avoid, manage and mitigate them.
Our policies and practices ensure transparency, integrity and high-quality service. At KPMG in India, our Quality & Risk Management function oversees compliance with enterprise risk, ethics and quality control. We assess client relationships based on their risk profile, independence, conflicts, purpose, public perception and alignment with our Values. Our robust Enterprise Risk Management (ERM) process identifies and manages evolving risks, assigning owners, documenting controls and monitoring improvements. The process helps in identifying key risks to the firm, assigning key risk owners, keeping the risk descriptions current, documenting existing controls/processes to manage/mitigate risks and action points for further enhancements/improvements, and monitoring action points. Quality and risk management are a shared responsibility among KPMG colleagues.
Our global client and engagement acceptance and continuance policies and processes also inform us of potential issues prior to accepting or continuing a client relationship or performing a specific engagement. This evaluation considers a broad range of factors, including the client or potential client’s risk profile, potential independence, conflict of interest, intended purpose and use of engagement deliverables, public perception and whether the services would be unethical or inconsistent with our Values.
Client confidentiality, information security and data privacy
Client data confidentiality and information security are essential to us becoming the most trusted professional practices firm. At KPMG in India, the importance of maintaining client confidentiality is emphasised through a variety of mechanisms, including our Global Code of Conduct. We have policies that address information security, confidentiality and data privacy. All firm personnel are required to go through training on confidentiality, information protection and data privacy requirements at the time of joining the firm and, thereafter, annually.
Speaking up safely
KPMG in India maintains clearly defined channels for its people and third parties to make inquiries, raise concerns, provide feedback and notify reportable matters without fear of reprisal, in accordance with local applicable laws and regulations.
Supporting our ‘speak up‘ culture, KPMG International has a hotline, which is a mechanism to confidentially report concerns relating to any activity by KPMG International, KPMG firms or KPMG colleagues. We also have local whistleblowing hotlines, which can be accessed through phone, web, email and post.
Respecting human rights
KPMG International and its member firms are committed to respecting human rights, as outlined in our Business and Human Rights Statement, which is consistent with the UN’s Guiding Principles on Business and Human Rights and builds on our longstanding support for the UN Global Compact. This means supporting the protection of human rights, avoiding being complicit in human rights abuses (including those involving business relationships) and helping to eliminate all forms of forced or compulsory labour, including child labour.
Our Global Code of Conduct articulates our zero tolerance for behaviour that is illegal, unethical or breaches human rights – within both our global organisation and our suppliers.