About the Company
Akash Garments is a clothing and garment wholesaler that supplies smaller brands with clothes for marketing and resale. The company operates as a trading business, purchasing clothing from its subsidiary company and selling to major clients. As with other wholesalers, Akash Garments aims to expand and establish itself as a brand in the market. Its target customers are currently B2B, and the company’s key success measures include providing high-quality products to smaller businesses at competitive rates, ensuring customer satisfaction through product quality and service. One notable aspect of the Indian market is the prevalence of numerous “brands” found in small shops and on the streets of cities like Mumbai, which purchase and market clothing from wholesalers like Akash Garments.
The company is focused on providing high-quality products to smaller businesses at competitive rates, with the goal of establishing itself as a leading brand in the industry.
One key aspect of Akash Garments’ business model is its focus on B2B customers. By supplying smaller brands with clothes for marketing and resale, the company is able to build strong relationships with its clients and ensure customer satisfaction through high-quality products and service.
In the Indian market, there are many small shops and street vendors that sell clothing from wholesalers like Akash Garments. These vendors often purchase clothing in bulk from wholesalers and then sell them to customers at a markup. This creates a highly competitive environment where wholesalers like Akash Garments must work hard to differentiate themselves and provide value to their customers.
One way that Akash Garments stands out from the competition is through its focus on product quality. The company is committed to sourcing high-quality materials and manufacturing its products to the highest standards. This ensures that its customers receive clothing that is durable, stylish, and comfortable, which is important for both B2B and retail customers.
Another way that Akash Garments provides value to its customers is through competitive pricing. The company is able to keep its prices low by purchasing clothing from its subsidiary company and selling in bulk to major clients. This allows smaller businesses to access high-quality clothing at affordable prices, which is important for their success in the competitive Indian market.Overall, Akash Garments is a strong player in the Indian clothing and garment industry. Its focus on B2B customers, high-quality products, and competitive pricing has allowed it to build a strong reputation and establish itself as a leading brand in the market. As the company continues to grow and expand, it will likely face new challenges and opportunities, but its commitment to customer satisfaction and product quality will remain the foundation of its success.
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The Challenges faced by Akash Garments
When Aakash took over the management of the garment company, they quickly identified significant gaps in the financials of the company. Despite being an established business for many years, the company’s financial structure was not fully compliant with legal requirements, and their previous accounting team had failed to address these issues. This lack of compliance posed a serious risk to the company’s operations and reputation.
The accounting records were not up-to-date, and there were inconsistencies in the way that transactions had been recorded. This meant that it was difficult to get an accurate picture of the financial health of the company. There were also gaps in the company’s knowledge of accounting processes and procedures, which would have made it difficult for them to address the issues themselves.Aakash quickly set about addressing these issues by bringing in a new team of accountants who could work to ensure that the company’s financial records were up-to-date and accurate. They also worked with the company’s management to identify the accounting challenges that the company would encounter as they continued to grow.
One of the key challenges that the company faced was managing cash flow. With a growing business, there were more and more transactions to track, and it became increasingly difficult to manage the flow of funds in and out of the company. Aakash worked with the management team to develop strategies for managing cash flow, such as setting up a more efficient invoicing system and implementing tighter controls on spending.
Another challenge that the company faced was ensuring compliance with tax regulations. The previous accounting team had not kept up-to-date with changes in tax laws, and the company had fallen behind on their tax obligations. Aakash worked with the new accounting team to ensure that the company was fully compliant with all tax regulations, and that they had systems in place to ensure that they remained compliant in the future.
Overall, Aakash was able to identify and address the financial gaps in the company’s operations, and set them on a path towards compliance and sustainable growth. By bringing in a new accounting team and working closely with the management, they were able to overcome the challenges and build a strong financial foundation for the company’s future success.
Our Approach
We understand that their clients’ success depends on more than just increasing revenue; it also involves ensuring that they are fully compliant with regulations and mandates while minimizing expenses. By adhering closely to regulations and mandates, Savage & Palmer has been able to manage their clients’ monthly compliances and educate them on potential accounting challenges that may arise as they scale their businesses.
One of the key areas that Savage & Palmer focuses on is the proper deduction of TDS (Tax Deducted at Source) and GST (Goods and Services Tax). They understand that failure to comply with these regulations can result in significant penalties and legal complications for their clients. As a result, Savage & Palmer provides ongoing monitoring and notifications regarding TDS and GST, ensuring that their clients are aware of the latest developments in these areas and are taking the necessary steps to remain compliant.
The firm’s MIS (Management Information System) reports play a critical role in this process. These reports provide important notifications to Savage & Palmer’s clients, enabling their internal finance teams to plan ahead and address potential compliance issues proactively. For example, the MIS reports highlight important notifications regarding E-Invoicing and TDS on goods. These notifications help clients understand their obligations under these regulations and take the necessary steps to comply with them.
In addition to providing notifications and monitoring services, Savage & Palmer also provides solutions to potential accounting challenges that may arise. The firm collaborates closely with its clients’ in-house finance teams to identify areas of concern and develop practical solutions that meet their clients’ unique needs. This approach helps clients navigate complex accounting issues while minimizing expenses and avoiding costly penalties.Overall, Savage & Palmer has established itself as a trusted partner to businesses seeking to achieve compliance and sustainable growth. By prioritizing regulatory compliance and expense reduction, the firm has helped its clients succeed in a challenging business environment, enabling them to focus on their core competencies and achieve their long-term goals.
The Result
We have a proven track record of helping their clients minimize accounting challenges while ensuring regulatory compliance. Their success is evident in their ability to reduce error margins by 80% in their main accounting matrix within a year of working with their clients.
This achievement led to a new mandate with Krishna Garments, a subsidiary of one of Savage & Palmer’s existing clients. With their expertise in accounting and regulatory compliance, Savage & Palmer was able to help their clients manage complex transactions related to dealing in shares.Dealing in shares can be a complicated process, and it is important for businesses to have a clear understanding of the accounting rules and regulations that govern these transactions. Savage & Palmer worked closely with their clients to ensure that they had a solid understanding of the accounting principles involved, and that they were able to comply with all relevant regulations.One of the key challenges that Savage & Palmer addressed was the accounting treatment of share-based payments. Share-based payments are a common way for businesses to compensate their employees or vendors, but they can be difficult to account for properly. Savage & Palmer provided guidance to their clients on the appropriate accounting treatment of share-based payments, ensuring that they were properly recorded and reported in their financial statements.
Savage & Palmer also provided guidance on the accounting treatment of complex financial instruments such as warrants and convertible debt. These instruments can be difficult to account for, but Savage & Palmer’s expertise helped their clients navigate the complexities and ensure compliance with relevant regulations.
Overall, Our guidance on the accounting of complicated transactions related to dealing in shares helped their clients minimize accounting challenges and maintain compliance while scaling their businesses. Their expertise and attention to detail enabled their clients to focus on their core competencies and achieve their long-term goals with confidence.
