Dear Friends,
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It’s 6.18 in the morning. After getting back from a
small walk, I had my first tea that is usually minus sugar and milk. My
newspapers have been delivered. As I start reading some of them, I
realise: Few more days and June will be over. July is ready to dawn in.
July
as a month has a lot of associations for all stakeholders of
accountancy profession. Our alma mater had
been established by an act of
the Parliament on July 1, 1949. We celebrate because the coveted
accountancy profession was institutionalised in July. This could take
place only because strong efforts were put in by our forefathers on
every front of our dear profession. Our profession was accepted by the
Govt. of India. Imagine, our Institute was set up even before our
country had its constitution in place. Since the introduction of the
Companies Bill in 1913, we have been struggling very hard and putting in
voluminous efforts in order to streamline the intricacies in
accountancy profession, levelling disparities at various levels.
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Very few of us today know that, till 1949, technically speaking, there were actually very few chartered
accountants. There were various designations in profession-RAs
(Registered Accountants), Approved Accountants, Incorporated
Accountants, GDA (Government Diploma in Accountancy)-besides the
existence of Chartered Accountants who had their education from one of
the five chartered societies from UK, e.g. The Institute of Chartered
Accountants of England and Wales and The Institute of Chartered
Accountants of Ireland. To remove this distinction from the professional
makeup of our forefathers, a group of accountants started a war for
dignity, since not just Chartered Accountant designates but the industry
too thought very high and superior of the chartered designation. That
too, when skill-wise, accountants trained and educated in India were no
less competent than their UK counterparts. It was the joint efforts of
our accounting forefathers and extensive discussions and debates put up
by the Government of India officials, enthusiast public advocates,
thoughtful political leaders and representatives, etc., in the
Legislative Assembly on March 23, 1936, with which our forefathers
started their struggle for equality in professional standing. Then in
the 18th meeting of the Indian Accountancy Board, it was decided to
designate all accountants of India as chartered accountants.
Since then, The Institute of Chartered Accountants of India took over
the responsibility to train that class of noble professionals.
This
is the time to recall the great endeavours of our accounting
forefathers and pay our sincere tribute to them. The month of July gives
all of us a reason to recall their contributions. Friends! Let us not
forget that we have a solid heritage as gifted by our strong and
competent accountancy professionals. Let us continue the tradition and
keep on adding glory to that heritage.
Now let me apprise you on some of the major developments in the last one month concerning the accountancy profession:
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Importance of SA 700 (Revised)
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I wish to record my appreciations for the members,
including auditors of companies, auditors of banks and its branches and
auditors of insurance companies, for complying with the requirements of
the SA 700 (Revised), Forming An Opinion And Reporting On The Financial Statements
for the audit reports for FY 2012-13 and onwards. I also wish to place
on record my appreciations for the regulators and the industry, who have
whole-heartedly supported the change to this new auditor's reporting
format. At this juncture, Compliance with the Standards on Auditing
issued by ICAI, being mandatory in application, ensures a high-quality
audit. In particular, the SA 700 (Revised) is aimed at reducing the
expectation gap among the readers to the responsibilities of the
management vis-à-vis the auditors. For the benefit of the
readers, the Standard not only requires that headings be given to the
various sections in the auditor’s report, it also requires separate
presentation of auditor’s opinion on the financial statements vis-à-vis
auditor’s opinion on other legal or regulatory reporting requirements
so that both are clearly distinguishable. Since the SA 700 (Revised) is
in effect now, I urge all the members signing audit reports to ensure
compliance with the Standards.
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MoU for Women Chartered Accountants
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We have recently entered into an MoU with the
“Avinashilingam Institute for Home Science and Higher Education for
Women”, Coimbatore, i.e., a deemed university for women, to facilitate
our women chartered accountants having three-year experience to pursue
PhD programme as both full-time and part-time candidates.
Vice-Chancellor of the Institute Dr. Sheela Ramachandran was at ICAI in
New Delhi to sign the MoU. Our past-President CA. T. S. Vishwanath was
also present. This brings the tally of the institutes to 100 (93
Universities, 6 IIMs and IIT Madras), which have recognised chartered
accountants as eligible for pursuing the PhD programme. The CA
qualification has been treated as equivalent to postgraduate degree in
commerce or allied disciplines.
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Contributions to CABF
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From the office of accountancy profession, it is
quite satisfying to acknowledge before our stakeholders that, during
February- May 2013, we have received  60,11,996 as contribution in the Chartered Accountants Benevolent Fund (CABF), out of which 11,56,996 was received as voluntary contribution. We have already extended a sum of
50,76,500 as financial assistance to the families of deceased members
of the Institute during this period. It is essential that our CABF
continues to receive funds in order to extend help and assistance to our
members in crisis. I would request all our members to make generous
contributions and also encourage other members to donate to the fund. |
Inappropriate Response to Tenders
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It has been observed that some members quote
abnormally low fee while responding to tenders, which gives birth to a
suspicion over the seriousness and quality of their delivery. We had
decided in 2010 that if there is a huge (abnormal) difference between
the lowest quote received against a tender (on which the tender is
ultimately allotted) and the next lowest quote, then peer review of the
said assignment and/ or concerned chartered accountants/CA firm thereof
can be ordered. The Council later had decided in December 2010 that a
cost-sheet be maintained by members of the Institute responding to
tenders and accepting professional work, incorporating the details of
cost, personnel, hours, etc., which the Institute may call for and refer
to for various purposes. I will urge our members to keep these
decisions in mind while responding to a tender.
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Rising Membership and Student Strength
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I am glad to inform you that the total membership
strength has gone up to 2,18,233 as on May 22, 2013, from 1,92,513 as on
April 1, 2012. There is an addition of 25,720 new members showing a
phenomenal growth in membership strength by 13.36%. Further, it is again
a credit to our profession that an incredibly large number of students,
i.e., 11,11,267, have registered with us, out of which we have about
6,09,150 under CPT, about 3,08,400 under IPCC, about 24,130 under
Intermediate (IPC) Direct Entry Scheme, and about 1,69, 600 in final.
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Five New Branches in CIRC, NIRC and WIRC
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I am happy to acknowledge before our stakeholders
that we have notified the setting up of Sikar Branch of CIRC in Sikar
District of Rajasthan (with jurisdiction as Sikar, Khandela, Losal,
Palsana and Ringas), Sirsa Branch of the NIRC in Sirsa District (with
jurisdictions as Sirsa, Ellenabad and Kalanwali), Rewari Branch of NIRC
in Rewari District of Haryana, Nanded Branch of WIRC in Nanded District
of Maharashtra, and Dhule Branch of WIRC in Dhule District of
Maharashtra (with jurisdictions as Dhule and Dondaicha). With the
increased reach, members of these places would find increased reach
beneficial to them. With this addition the total number of branches is
now 138.
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e-Sahaayataa
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As all our stakeholders know, we had introduced an online grievance management system of the Institute, e-Sahaayataa,
to address the queries, complaints and grievances of our stakeholders
pertaining to the day to day working of the Institute. Grievances are
being expeditiously catered to and are being resolved. I am really happy
to see the overwhelming response and appreciation of this system by one
and all. We receive queries, complaints and grievances, and resolve
them within the stipulated time-frame. However, credit for the success
of this system goes to the cooperation of our stakeholders. The system
has become all the more refined and evolved over the time. We look
forward to your continued support and to serve you better. I call upon
all the members to use e-Sahaayataa for their queries.
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Industrial Training for Articled Assistants
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Articled assistants who pass Intermediate (Integrated
Professional Competence) Examination/Intermediate (Professional
Competence) Examination/Professional Education
(Examination-II)/Intermediate Examination may serve as an industrial
trainee in any of the financial, commercial or industrial undertakings,
as approved by the Institute, under an eligible member of the ICAI
working in that organisation. I would request all members to encourage
their final-year articled assistants, who have passed Intermediate (IPC)
Examination in entirety, to pursue industrial training for 9-12 months.
Other details including application form and the list of organisations
permitted to impart industrial training are available on the Institute’s
website. Concerned regional offices of the Institute may also be
contacted in this regard.
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More Branches to Hold GMCS/ Orientation Programmes
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We have extended permission and approval to 11 new
branches against their request to organise Orientation Programmes and/
or GMCS Course. We have approved Alleppey, Hubli, Sivakasi and
Pondicherry Branches for GMCS from Southern Region; Aligarh, Meerut and
Ratlam for GMCS, and Bhavnagar for Orientation Programme and GMCS from
Central Region; and Karnal, Sangrur and Panipat for GMCS from the
Northern Region. Members should inform the articled trainees/students
about the new centres and encourage them to undergo the respective
courses at the earliest.
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Examinations
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May 2013 examinations have been fairly conducted
across all centres except for an untoward event where we have initiated
the disciplinary process against the persons responsible. Fair
examinations strengthen the essence that accountancy profession
communicates to our society and nation at large. We represent our alma
mater in everything we do as members of ICAI. It becomes mandatory for
us to act sincerely and responsibly while carrying out all our
professional work.
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We all like early monsoon which brings relief to the
earth from the heat of summer. But this time, it has brought along a
serious crisis to the people in some regions of our nation. As a result
of torrential rains and a series of flash floods, landslides and
cloudbursts, thousands of people, including locals and tourists, are
stranded, thousands are missing, and several villages have been washed
away. The extent of human loss is beyond estimate. It is a trying time
for all of us. At the least, I request my professional colleagues to
contribute generously for this cause. Either individually or in group,
we will find out a way to help those affected by the natural calamity.
Celebrated coach Celestine Chua quite responsibly remarks: The
degree of responsibility you take for your life determines how much
change you can create in it. He goes on to say: The more you take
responsibility for your past and present, the more you are able to
create the future you seek. Besides what the nature has done, if we
contemplate on the reasons, we will find that this is also because of
ecological instability that we have caused through severe forest
depletion and unplanned housing projects. The C&AG had warned of the
ecological hazard in these sensitive regions. Growth at the cost of the
existing resources is never advisable.
There are things of our
concerns and there are not. But being members of the same nation, we
have to own up certain responsibilities that are beyond our purview at
times. Martin Luther King rightly advises: You are not only responsible for what you say, but also for what you do not say.
While
we have professional responsibilities of our own, we will have to share
the national responsibilities. Let us be responsible to our time and
our society.
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Best wishes
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CA. Subodh Kumar Agrawal
President, ICAI
New Delhi, June 24, 2013 |