Dear Friends,
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To begin with, let me first convey, on behalf of our accounting fraternity, heartiest congratulations to the Hon’ble Shri Sachin Pilot
for taking over as new Union Minister of Corporate Affairs (Independent
Charge). Known for his youthful, energetic and dynamic working style,
his reformist zeal and resultoriented approach with proven track record
of his earlier accomplishments, the two-term Member of Parliament Shri
Sachin Pilot has been an ardent proponent of inclusive and equitable growth, and clean government.
And, he duly acknowledges the role of chartered accountants in the
above-said policy goals. He put his complete trust in our profession and
hoped that CAs will continue to contribute towards a better and
developed corporate environment in India when I recently met him along
with the-then President of International Federation of Accountants
(IFAC) Mr. Göran Tidström and its Executive Director Mr. Russell
Guthrie. Again, Shri Sachin Pilot demonstrated his keen desire to more
actively include us chartered accountants in his benevolent scheme of
things when he spoke high about our role in nationbuilding during the
24th Annual International Seminar (1st GCC Seminar) organised by Abu
Dhabi Chapter of the ICAI.
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Let me tell you that he is not at all a newcomer for
us. He has been at our programmes in the past as well. I recall, as
Chief Guest in the capacity of Union Minister of State for Communication
and Information Technology at the Orientation Programme of
newlyqualified CAs in New Delhi on 8th August, 2011, he had said: This
is the profession which speaks of dedication and hard work… As India
moves forward, a lot of responsibilities lie on your shoulders as well. I
am quite hopeful that in the times to come, the fraternity of CAs in
India grows and expands in quality as well as in quantity. He had added:
Every entity in this country, whether it is a company or Government or
NGO, needs to be audited. Therefore, you have a lot of work to do, no
matter which field you work in, you will be required to be good
chartered accountants and business advisors to make sure that there is
all-round compliance with the regulations, and we in the Government are
fully committed in this regard. I recall, he had also said: ...as we
move along people, I hope to work with you, with the ICAI, with the
Council Members and hopefully be able to engage with you in times to
come in future with new ideas... Today, that hope of Shri Sachin
Pilot stands fulfilled and we look forward to his more active
participation in our accounting world. We fervently hope for his
guidance and support to the profession to make it all the more active
partner-in-nation-building. Using the go-getter approach and
noble vision of this dynamic Union Minister of Corporate Affairs, I am
sure, Indian corporate world will effectively scale new heights. On
behalf of the Indian accountancy profession, I promise all-out support
to all his initiatives. (His profile has been published elsewhere in
this issue of the Journal).
Meanwhile, we can also not forget the relentless support extended to us by Hon’ble Dr. M. Veerappa Moily
during his tenure as Union Cabinet Minister of Corporate Affairs that
helped us successfully meet many a challenge. We will always remember
his encouraging and guiding words as expressed from time to time at our
programmes. On occasions of ICAI International Conference and 62nd ICAI
Annual Function held on 6th January, 2012, and 11th February, 2012,
respectively, he had said: I compliment the chartered accountants for
being instrumental in bringing about change. Only CA profession can
provide the accountability and transparency as chartered accountants are
the conscience keepers of the country… This (CAs) is a combination,
which very rarely happens – Saraswati, Laxmi and Durga, the power, which
you possess as chartered accountants and you function as the conscience
keepers of the nation… The accounting profession is the noblest
profession. You are on the right track of building world-class
profession in this country… Humbly acknowledging his constant and
even out-of-the-way backing to our concerns and issues, we wish him all
the best for his tenure as the new Cabinet Minister for Petroleum and
Natural Gas and look forward to his continued proximity with the Indian
accountancy profession.
I also heartily congratulate our constant friend, philosopher and guide CA. K. Rahman Khan
for becoming the Union Cabinet Minister for Minority Affairs. We
proudly say that he has been our very own, vigilantly guarding our
interests and standing by us like a rock through the thick and thin in
all his previous capacities. His words of wisdom expressed during our
programmes have continued to inspire and guide us to serve the country
better. I particularly recall when he, as Union Minister of State for
Chemicals & Fertilisers, spoke on the occasion of CA Day on 1st
July, 2004: An accountant should be honest, independent and fearless
in discharging his duties. An accountant is a conscience-keeper and a
watchdog of the economy. A CA also plays a very dynamic role in
corporate governance…I am proud to be a part of the CA fraternity. My
professional background is a great asset to me in successfully
discharging my responsibilities… Let me convey him that we too are
very proud to have CA. Rahman Khan in our fraternity. I am sure that his
support to his alma mater will continue unhindered despite his busy
schedule.
Now let me update you on some of the significant
developments in the accountancy profession that have taken place over
the past one month:
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CA Elections
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We chartered accountants have been the
consciencekeepers of our national economy for decades, but the current
grim global financial-economic scenario requires us to be all the more
vigilant on this front for a secure future of our country. I wish to
emphasise on the crucial need of not only keeping intact the glory of
the profession’s past achievements, but also amplifying these in future
by meticulous and objective planning and efficient execution. Rather
than adapting to the changes, all of us need to lead the changes for the
better.
The legislature of India has cast an important
responsibility on the able shoulders of chartered accountants to
lubricate the wheels of economic growth by ensuring that the financial
information reaching the intended users is reliable. We have to live up
to the expectations of our society and the trust bestowed in us by the
founding fathers of our nation. In this context, the elections to
Central and Regional Councils this month are very crucial, for both the
profession as well as the nation. Candidates elected by you will set the
future course of our profession. As such, they must be responsible,
competent and selfless, with a vision of their own. Thus, it is your
duty to send the very best as your representatives, who will work to
make us the best in the world and who will exemplify the glory of our
profession and add more value to our services by setting our sights on
the future. Select candidates with impeccable professional integrity and
wisdom, irrespective of cast, creed, religion or group. Vote for the
profession rather than the person, so that your vote is never lost. We
have to plan our future in the present only. Remember, generally it is
today that sets tomorrow. Therefore, it is high time that you
proced your prudence and efficacy of your judgement in the elections.
Keep in mind that we are on the right track, but still we have miles to
go before we reach the destination we set out for.
On the other
hand, I am happy to see the enthusiasm of our members in the run up to
the elections. Let’s show the same enthusiasm on the day of elections by
turning out in large numbers. It is our sacred professional duty to
cast our ballot. Remember the words of famous American political
scientist Larry J. Sabato: Every election is determined by the people who show up. I wish all our members a very fruitful election.
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International Initiatives
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IFAC Board Meeting in Cape Town: ICAI
immediate past-President and IFAC Board Member CA. G. Ramaswamy recently
attended the IFAC Council and Board Meeting held in Cape Town of South
Africa. Besides discussing the agenda, the IFAC Council approved its
strategic plan for 2013-16 on the theme Leading the Way. It also
announced the election of Warren Allen as its President, while approving
Olivia Kirtley’s nomination as its Deputy President. It also included
the election of six new members to its Board, advancing its vision to
expand the diversity in gender, geography and professional experience.
Presentation of Public Interest Oversight Board and MoU between
International Accounting Standards Board and IFAC were also discussed
during the meeting.
On the sidelines, ICAI's immediate
past-President and IFAC Board member CA. G. Ramaswamy met the President
of Botswana Institute of Chartered Accountants (BICA) and Indian
chartered accountant, Mr. Vijay Kalyanaraman, and discussed bilateral
cooperation between ICAI and BICA.
First GCC Seminar in Abu Dhabi:
I am happy to inform you that the new Union Minister of Corporate
Affairs Hon’ble Shri Sachin Pilot attended the 24th Annual International
Seminar (1st GCC Seminar) of the Abu Dhabi Chapter of ICAI on Waves of Change: Oceans of Opportunity
as the Guest of Honour, which was attended by a large number of our
members. He highly commended our role in facilitating the growth of our
nation. I, along with the ICAI past-President CA. R. Bupathy and a
Central Council member, was also present in the Seminar to put forward
our views of the accountancy profession. The Higher Colleges of
Technology (HCT) Chancellor and UAE Minister of Higher Education and
Scientific Research Sheikh Nahayan Bin Mabarak Al Nahayan was the Chief
Guest. Prominent dignitaries present on the occasion included Indian
Ambassador to UAE Shri M. K. Lokesh, Infosys Chairman Emeritus Shri N.
R. Narayana Murthy, Adviser to the Prime Minister of India Dr. Sam
Pitroda, MCA Joint Secretary Shri Manoj Kumar, MCA Director Shri B.
Koteswara Rao, among others. This Seminar brought together a galaxy of
experts including leading CEOs, CFOs, financial and management
professionals.
IFAC Delegation to India: IFAC
delegation comprising its the-then President Mr. Göran Tidström and its
Executive Director Mr. Russell Guthrie, recently was in New Delhi to
have a closer and in-depth interaction with our accounting fraternity.
Besides their meeting with me and other ICAI representatives at ICAI
headquarters, they also met the Union MCA Minister Shri Sachin Pilot and
Secretary Shri Naved Masood, the Union Minister for Minority Affairs
CA. K. Rahman Khan and the Controller General of Accounts of Ministry of
Finance Shri Jawahar Thakur. I was present in all the aforementioned
meetings. They also attended and addressed the delegates at the Training the Trainers in Financial Statement Analysis
programme jointly organised by ICAI and CBEC during their India visit.
IFAC Delegation and myself also visited the office of C&AG of India
where we met the Deputy Comptroller & Auditor General of India Shri
A. K. Patnaik and Director-General (Commercial-I) Shri Gautam Guha,
among others.
IAESB Meeting in London: I recently
attended the International Accounting Education Standards Board (IAESB)
meeting held in London, along with the ICAI Director (Board of Studies)
Shri Vijay Kapur. We presented the ICAI viewpoint during the meeting.
Primary agenda included Revised IES-5 on Practical Experience, Strategy and Work Plan of IAESB 2014- 16, IAESB Glossary and Report on Audit Quality Framework.
Visit to Centre of Excellence for Applied Research and Training in Abu Dhabi:
I, along with Infosys Chairman Emeritus Shri N. R. Narayana Murthy,
visited the Centre of Excellence for Applied Research and Training
(CERT) in Abu Dhabi. The CERT is a commercial arm of the HCT (the
largest institution of higher learning in the UAE to develop and provide
education, training and applied technology to public and private
sectors in the country). There we met the HCT Vice-Chancellor Dr. Taiyab
Kamali. He took us around the Centre explaining about the
infrastructure and other facilities available there. After that, we had a
discussion with Dr. Kamali. As you know, we have already signed an MoU
with the HCT.
Visit to Dubai Chapter: I, along
with the ICAI past- President CA. R. Bupathy, recently visited the Dubai
Chapter of ICAI to meet our members and take stock of their good work
being done in promoting the profession in the region. I had very
fruitful discussions with the newly-elected Chairman CA. James Mathew,
the outgoing Chairman CA. Venkatesh and Executive Committee and other
members of the Chapter.
Empowering Accountancy in Bhutan:
The ICAI, on request of the Accounting and Auditing Standards Board of
Bhutan, had organised a six-day training programme on IFRS recently for
the Bhutanese people. ICAI past-President and Ind AS (IFRS)
Implementation Committee of ICAI Chairman CA. Amarjit Chopra, along with
other eminent experts on IFRSs, conducted the programme on issues
including that on first-time adoption of IFRSs.
IFAC’s SMP Committee & PAODC Meetings:
ICAI past-President CA. Uttam Prakash Agrawal was recently in New York
to represent us at the meeting of IFAC’s SMP Committee, where he also
attended its two taskforce meetings. ICAI past-President and Central
Council member CA. Amarjit Chopra went to London to attend the IFAC’s
PAODC meeting, where he dwelt on various issues related to accountancy
profession.
India-Japan Forum 2012 in Japan: India
and Japan have established a joint working group on the issues relating
to application of or convergence with the IFRS. At the 3rd India-Japan
Forum 2012 held in Japan to create awareness about the dialogue on
implementation of IFRS between the two countries, an Indian delegation
comprising representatives of ICAI, IRDA, SEBI, IRDA, C&AG of India
and MCA participated in the Forum to exchange its views on legal and
regulatory issues arising out of the convergence with IFRSs. ICAI
past-President CA. Amarjit Chopra, my Central Council colleague CA.
Mahesh P. Sarda and ICAI Technical Director Dr. Avinash Chander
represented the ICAI in the forum.
29th UNCTAD’s Inter-Governmental Working Group of Experts on ISAR:
My Central Council colleague CA. Bhavna Doshi attended the 29th Session
of UNCTAD’s Inter-Governmental Working Group of Experts on
International Standards of Accounting and Reporting (ISAR) held recently
in Geneva, along with the ICAI Director (Board of Studies) Shri Vijay
Kapur, where discussions were held on regulatory and institutional
foundations for high-quality corporate reporting and recent developments
in that regard.
25th XBRL International Conference in Tokyo:
My Central Council colleague CA. Atul C. Bheda recently attended the
25th XBRL International Conference held in Tokyo, along with the ICAI
Technical Director Dr. Avinash Chander, among others, where participants
could learn from the experts and acquire crucial XBRL skills. The
Conference provided an insight into XBRL implementation projects
undertaken by the countries of Asian region.
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Initiatives for Government Offices/Officials
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Training Programme for Officials of Central Board of Excise and Customs: Recently we, in collaboration with CBEC, organised a successful five-day training programme Training the Trainers in Financial Statement Analysis
for the service-tax officials of CBEC in New Delhi. The objective was
to provide a systematic exposure to reading and understanding financial
statements and audit techniques to increase the effectiveness of revenue
assessment in the area of service tax aiming to create better-informed
and assessee-friendly officials. The Revenue Secretary of Ministry of
Finance, Shri Sumit Bose, inaugurated the programme and expressed his
gratitude to the collaborators for organising the programme while
emphasising the importance of knowledge of forensic accounting and tools
to detect fraud. CBEC Chairperson Ms. Praveen Mahajan, while thanking
us for designing this tailor-made programme, indicated that the
collection of revenue from this sector had not been satisfactory despite
the service-sector’s contribution of 57% in GDP. CBEC members Ms.
Sheila Sangwan (Budget & Service Tax) and Ms. Lipika Majumdar Roy
Choudhury were also present on the occasion. The-then IFAC President Mr.
Göran Tidström and Executive Director Mr. Russell Guthrie also
addressed the participants on the very first day of the programme.
Finally, I would like to express my special gratitude for the Service
Tax Officer-on-Special-Duty Shri Sumit Kumar, who coordinated all
exercises and efforts from the side of CBEC for the programme. Eminent
speakers on the occasion included CESTAT (Customs, Excise and Service
Tax Appellate Tribunal) Member CA. D. N. Panda and Delhi High Court
Judge (retd.), CCI (Competition Commission of India) Member and
Appellate Authority Chairman (constituted under CA, CS and CWA Acts)
Justice S. N. Dhingra, among others.
Suggestions to GAAR Expert Committee Submitted:
We have always considered it our privilege to assist the Government in
the smooth implementation of GAAR (General Anti-Avoidance Rules)
provisions in India. The Expert Committee, chaired by Dr. Parthasarathi
Shome, had submitted its draft report after analysis of the GAAR
provisions and noting the concerns of various stakeholders. Considering
the draft GAAR guidelines open for public comments, we recently
submitted the Memorandum of Suggestions to the Expert Committee on GAAR.
We hope that our suggestions would facilitate consistency and better
implementation of GAAR and prevent unnecessary litigations that may
arise due to lack of clarity.
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Initiatives for Profession
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Registration of CAs in the New e-filing Website:
I am happy to inform you that a long-awaited initiative to curb the
misuse of membership numbers of our members in the tax audit reports has
finally been taken. The new e-filing system launched by the CBDT
(Central Board of Direct Taxes) has opened a window for chartered
accountants to register and upload certain specified reports required to
be furnished by chartered accountants including tax audit report. Time
and again, ICAI has pursued the issue of misuse of membership numbers
being followed at various levels. The same has been well appreciated by
the Department, which now requires the Chartered accountants to directly
upload their reports with their digital signatures in the e–filing
website. The assessee is, however, required to mention the details of
the chartered accountant while filing his return. ICAI would also be
validating the data of practicing members for the purpose of
registration and thereafter at the time of filing of report. This will
ensure that no fake audits are being reported to the Department.
Grievances, if any, with regard to registration in new e-filing system
may also be sent to us so that the system can be improved further.
2012 MII Corporate Forum and Awards in January:
I am happy to inform that we will be organising a comprehensive two-day
6th ICAI’s MII Corporate Forum and Awards 2012 in the first week of
February 2013 in Mumbai. Bajaj Auto Limited Chairman Shri Rahul Bajaj
has agreed to head the jury meeting scheduled to be held in December
2012. Apart from him, ACC Limited MD & CEO CA. Mr. Kuldip Kaura,
SAIL Chariman Shri Chandra Shekhar Verma, ITPO (India Trade Promotion
Organisation) MD & Chairperson Ms. Rita Menon, IAS, Dar World
Chairman Shri Arun Rangachari, Andhra Bank CMD CA. B.A. Prabhakar,
Morgan Stanley MD Shri Ridham Desai and Maharashtra & Goa Circle
Postal Services Director Ms. Abha Singh have also accepted to be the
jury members for the MII Corporate Forum and Awards function organised
by the Institute.
MCA Core Group Meeting on Ind ASs:
A meeting of the Core Group constituted by the Ministry of Corporate
Affairs (MCA) was held recently in the MCA premises in New Delhi to
consider, inter alia, the convergence of Indian Accounting Statndards
with the IFRSs. The meeting was chaired by the MCA Secretary Shri Naved
Masood and was attended by me along with two of my Central Council
colleagues among others. Representatives of various regulators, viz.
RBI, IRDA, PFRDA, SEBI, etc., and officials of the Ministry of Corporate
Affairs were also present. The ICAI representatives made a presentation
on the impact of Ind ASs on various sectors vis-a-vis the existing
Accounting Standards. The Core Group requested us to inform the MCA,
only from the limited perspective of when can the ICAI be ready with the
Ind ASs after incorporating the issuance of new IFRSs/ amendments to
IFRS subsequent to the finalisation of Ind ASs placed on the MCA website
in February 2011. We decided to make limited revisions in the existing
Accounting Standards primarily to synchronise with Revised Schedule VI
and other Accounting Standards, and, therefore, we have finalised the
draft limited revisions to AS 4, Contingencies and Events Occurring
After the Balance Sheet; AS 12, Accounting for Government Grants; and AS
22, Accounting for Taxes on Income.
UGC Workshop on Accouning Standards:
Recently, I inaugurated a workshop on Implementation of Accounting
Standards in Educational Institutions, organised by UGC, for
capacity-building and training of the staff of educational institutions.
This joint initiative of Ministry of HRD and ICAI was attended by more
than 115 delegates.
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Initiatives for Students
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Recognition of CA Qualification for Pursuing PhD:
I am pleased to inform you that Manipal University, Manipal, Karnataka
and Lovely Professional University, Phagwara, Punjab have recognised
Chartered Accountancy qualification for pursuing PhD. Now, 89
Universities and 6 IIMs have recognised Chartered Accountancy
qualification for pursuing PhD programme.
Faculty Development Programme:
We have been organising one-day Faculty Development Programme for the
faculty of GMCS Course and Orientation Programme organised in the
Regional Councils and Branches of the Institute. These programmes have
been organised to create standardisation in Orientation Programmes and
GMCS Courses, so as to ensure uniform and effective delivery of courses.
The second phase of Faculty Development Programme was organised
recently in Bangalore, Kolkata, Pune, Jaipur and Noida, where about 250
faculties attended the programme.
Four-Week Residential Programme for Members/ Students in Hyderabad:
Four-week Residential Programme for the 16th and 17th batches have
commenced recently at the Centre of Excellence of ICAI in Hyderabad.
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Infrastructure Initiatives
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Inauguration of Infrastructure of Bilaspur and Bhilai Branches of CIRC:
It is a matter of deep satisfaction and happiness for the profession
that I recently inaugurated the building of the Bilaspur Branch of CIRC
of ICAI. Then, I also inaugurated the additional infrastructure
(building) of the Bhilai Branch of CIRC of ICAI. During the visit, I had
a discussion with Bilaspur Branch Chairman CA. Govind Madhaw Gupta and
Bhilai Branch Chairman CA. B. M. Surana, and had the opportunity to
interact with the members and students present on the occasion.
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It is good to think about our society, our nation,
especially when we start something that could affect our social sphere.
In fact, Gandhiji had one talisman: Whenever you are in doubt, or
when the self becomes too much with you, apply the following test.
Recall the face of the poorest and the weakest man [woman] whom you may
have seen, and ask yourself, if the step you contemplate is going to be
of any use to him [her]. Will he [she] gain anything by it? Will it
restore him [her] to a control over his [her] own life and destiny?
...Then you will find your doubts and your self melt away. It is
always good to think of people who are on the margins in our society, in
our nation. Gandhiji gave importance to people over the nation; he
realised that nation is nothing without its people.
Here, I
really find it strange when I recall how objectively some of us talk
about our nation, and how strongly we present our viewpoint while
forgetting its very people in the heat of our enthusiasm and love for
our nation. It is inspiring some times and, many a time, it is dangerous
too. Basically, we lose our respect for our nation when we forget the
people in it and that is certainly a sin. A country is not just a mass
of land; it is a living entity, the way a home is. Some of us think that
if we do not vocalise our emotions for our nation, we are not
nationalists. This may not be true. All of us through our roles and
responsibilities in the social, economic, cultural and other spheres of
our nation have been constantly contributing to the health and growth of
our nation in our own way.
In this context, we as professionals
must demonstrate our nationalism through our proactive role as
partner-in-nation-building. It is essential, therefore, to acquire the
contemporary skills in order to keep up with the change and development
in communication technology and to perform better in this IT-enabled
environment. Let’s continue to benchmark our efforts in the interests of
the national development and integrity and create better opportunities
for young professionals in this vibrant phase of globalisation.
I
am sure you must have celebrated Deepawali with joy and peace. I
understand some of our students might not have celebrated it the way
they would have wished to due to examinations. But they have a whole lot
of festivity, let me inform, lying before them to celebrate in the
coming months.
Merry Christmas! Celebrate the festival with peace, joy and love.
Best wishes
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CA. Jaydeep Narendra Shah
President, ICAI
New Delhi, November 23, 2012 |
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