Dear Friends,

‘Continuity gives us roots, change gives us branches, letting us stretch and grow and reach new heights,’ rightly goes the saying. While the triumphant tradition of our democracy has continued, a change has happened in Indian polity too. I, as the leader of Indian accountancy profession, welcome this change led by our dynamic new Prime Minister Shri Narendra Modi, a leader who leads by example.

Riding the wave of new aspirations of Indian masses, Shri Narendra Modi has taken over as the harbinger of change, growth and development as spelt out in his agenda. Given his proven track record in vibrant Gujarat, I am sure we will have a resurgent India under his stewardship. Indian Accountancy profession commits itself to the growth agenda of the new Government and will continue to contribute to a vibrant Indian economy.

Today we have a Prime Minister who is considered the most techno-savvy political leader in India. He understands the value of connecting with the lives of people by making use of technology. We appreciate him as a dedicated and determined man of good governance, who is guided by the principle of Sabka Saath, Sabka Vikas (Collective efforts, inclusive growth). We stand by his mantra for functioning that is ‘Minimum Government, Maximum Governance’. A firm believer in the philosophy of Antyodaya or reaching the very last person in the queue, Shri Modi is known for proven ability to deliver results.

Partnering with the New Government

The new Government has expressed its commitment to bring about sustainable and inclusive growth. To build a strong India, it aims to usher the economy to a higher pedestal, rein in inflation, reduce current account deficit, reignite the investment cycle and restore the confidence of domestic and international communities in the national economy. A series of measures and reforms to help Indian economy achieve its potential of high growth are on the cards.

We at ICAI are committed to this growth agenda, particularly with respect to ensuring good governance, reforms, ease of doing business, financial discipline and economic growth. We are also committed to the new Government’s vision to rationalise and simplify the tax regime in India and make it non-adversarial and conducive to investment, enterprise and growth. In furthering our partnership with the new government, we plan to work with various ministries and government departments to help them achieve their new agenda.

We propose to submit our views on ushering reforms in the financial, banking and insurance sectors and also adoption of accrual accounting in all government departments. We will continue to give our recommendations on Direct Taxes, Indirect Taxes, the New Companies Act, Bank Audit, IFRS Convergence, Implementation of GST, and so on, to the Ministries concerned.

Reaching out to Finance Minister

We are extremely delighted to welcome Shri Arun Jaitley as our Union Minister for Finance, Defence and Corporate Affairs. A person of high degree of knowledge, he has been associated with the Institute for many years. I recently had the opportunity of personally calling upon him and congratulating him on behalf of the accountancy profession. It was heartening to note that he holds ICAI and the accountancy profession in high esteem and has big expectations from us in helping the government to steer the economy back on the high growth curve. I assured him that the ICAI will be forthcoming to implement all his initiatives for the good of our country.

Building Rapport with Railway Ministry

The Railway Ministry is proactively looking for reforms and is keen on strengthening its finances and financial system. In this scenario we see a vast scope for our involvement in improving their financial reporting system. In this regard, I recently met Railway Minister Shri D.V. Sadananda Gowda at his office in New Delhi. In a fruitful meeting, he was very receptive to our proposal to transform the Indian Railways by converting from cash based to accrual-based accounting system. I hope for a positive outcome of this meeting soon.

Meeting the Minister of State for Corporate Affairs

I congratulate Smt. Nirmala Sitharaman for taking over as Minister of State (Independent Charge) for Corporate Affairs, Commerce and Industry, and Finance, and pledge our support to the Ministry’s objectives. In our meeting, we volunteered to support the effective implementation of the Companies Act 2013 and requested her to look into the issues concerning the profession. I once again commit ourselves to the agenda of the Ministry and look forward to their continued guidance and support to us.

Congratulations to CA. Piyush Goyal

I also congratulate CA. Piyush Goyal on assuming office as the Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy. One among us, he has been our friend, philosopher and guide in addressing various issues concerning the profession in the past. We take pride in his inclusion in the Union Council of Ministers and look forward to his constant support and guidance to the profession. I wish him all the best.

Strengthening Ties with RBI

Reserve Bank of India (RBI) has been playing a pivotal role in strengthening the Indian financial system, and our profession continues to play an important role in developing a healthy banking sector. With a view to strengthen our ties with Reserve Bank of India, I recently met its Governor Shri Raghuram Rajan in Mumbai to discuss various issues concerning banking sector besides our concerns on Bank Branch Audit.

We also volunteered to help the RBI in its all important agenda of financial inclusion in India. I conveyed him that ICAI, as a partner in nation building, is keen on safeguarding the government and public interest in public sector banks. I assured him of our whole-hearted support in various initiatives of the RBI.

Celebrating 65 Years of Professional Excellence

It was with great futuristic vision that founding fathers of our nation established ICAI on 1st July 1949. Today, I am proud to say that we have exemplarily lived up to their expectations through our dedicated service to the country as a true partner in nation building. This glorious journey of our professional excellence continues unabated even today and this calls for a befitting celebration of the Chartered Accountants Day on 1st July 2014.

On this day ICAI will complete 65 years of strong national and international professional standing. With about than 2.25 lakh members and more than 8.5 lakh students today, we are the second largest accounting body in the world. To celebrate this outstanding success with the society, we have lined up a series of programmes and events across the country, like Tree Plantations, Distribution of Literacy Kits, Blood Donations, etc. A special ‘Google Hangout’ session with IFAC president Mr. Allen Warren has also been planned. Let’s join hands and make the CA Day an occasion to remember.

Cloud Campus- A Big Bang Initiative

To celebrate the CA Day, we are also launching a Cloud Campus for the students- a big bang initiative to enable the entire CA student community to connect together. The Cloud Campus will be a virtual campus for students where e-learning courses, audio lectures, video lectures, webcasts, online mentoring, articleship training resources, etc. would be provided to the students free of cost. As another first in the history of ICAI, this would herald a knowledge revolution by providing online resources to the students to prepare for the CA course.

Roadmap for Implementation of Ind AS- An Update

The ICAI has submitted a revised roadmap to the Ministry of Corporate Affairs for implementation of Indian Accounting Standards (Ind AS) converged with IFRS. We are proactively discussing the new roadmap with RBI, SEBI and other stakeholders to support the implementation of the IFRS-converged Indian Accounting Standards. We recently had two separate meetings with officials of RBI and SEBI to discuss various issues and concerns on moving to IFRS-converged standards (Ind AS) for banks and listed entities.

Putting forward our Perspective through CAPA

It has been my earnest endeavour to highlight the role of the Indian accountancy profession in various global forums. With that spirit, I recently participated in the Board meeting of Confederation of Asia and Pacific Accountants (CAPA) in Colombo. I also highlighted our potential at CAPA’s Financial Reporting for Economic Development Forum in Colombo, on the theme of The Financial Reporting Supply Chain. I also moderated the panel discussion on Education and the development of needed skills at the CAPA Financial Reporting for Economic Development Forum (FRED) in Colombo and put forward our experiences.

Building Bridges with Saudi Professionals

You would appreciate that ICAI has taken upon itself being a mentor and collaborative partner to transition economies. I recently took this vision forward by signing a Memorandum of Understanding (MoU) with the Saudi Organization for Certified Public Accountants (SOCPA) in New Delhi to help develop accountancy profession in Saudi Arabia. Assistant Secretary General for Membership and Professional Development of SOCPA signed the MoU from SOCPA.

The MoU inter alia provides that both ICAI and SOCPA would be working together in establishing possible co-operation in respect of Corporate Governance, technical research and advice, quality assurance, forensic accounting, issues for SMPs, etc. I am sure this MoU would be a big step forward to strengthen bilateral relations between India and Saudi Arabia and establish closer working linkages between ICAI and SOCPA.

Global e-Kit Launched in Muscat

To promote brand Indian CA in Muscat, we recently launched a Global Career e-Kit in Muscat. The e-Kit contains exhaustive information on job opportunities in Muscat where we see a good opportunity for our young professionals who want to pursue global career. I also participated in the 6th Annual International Conference on Moving to a New World Order— Role for Finance Professionals of the Muscat chapter of ICAI besides interacting with Indian ambassador to Oman Shri J.S Mukul. I am sure that this initiative will go a long way in firmly putting Indian CA on the global map.

EEG Meeting in Moscow—Adoption of IFRS

Issues in adoption of universal financial reporting framework are being raised everywhere now. Gobalisation of business and blurring of the international border due to virtual and online business are applying further pressure to this adoption process. Emerging Economies Group (EEG) helps in addressing the issues in financial reporting in the emerging economies. Russia, our strategic partner, is an important stakeholder in this regard.

I had the opportunity of participating in the EEG meeting held in Moscow, Russia recently. The meeting provided insights on IASB projects and development in International Accounting Standards, which we will use in the adoption of IFRS in our nation. Russia has already made IFRS mandatory, with two exceptions, for use in Consolidated Financial Statements of all legal entities, in 2012.

Clarifying Certain Auditors’ Concerns under Companies Act, 2013

The Council recently considered the issue of date of applicability of section 143(3)(i) of the Companies Act 2013, requiring the Statutory Auditor to report on adequacy and operating effectiveness of internal financial controls in the Statutory Auditor’s report. It also considered section 143(12) of the said Act, envisaging the Statutory Auditor to report Frauds committed or being committed against the Company to the Central Government.

The Council was of the view that as both these sections and related Rules have come into force in respect of financial years beginning on or after 1st April 2014, these apply to Statutory Auditors appointed under the Companies Act 2013. Accordingly, the Council has taken a view that provisions of these sections and related rules would apply to the years beginning on or after 1stApril 2014 and not to audits for periods beginning on or before 31st March 2014 even if the audits thereof are carried out and Auditor’s Report thereon are issued after 1st April 2014.

The Council is of the view that section 143(3)(i) and Rules there under would apply to the financial years beginning on or after 1st April 2014. In respect of the applicability of section 143(12) and related Rules, while the Council has taken a prima facie view that these too would apply only to financial year (and not to audits of interim periods such as quarter/ half year as these are per se not carried out under the Companies Act 2013) beginning on or after 1st April 2014, we are also coordinating with the Ministry of Corporate Affairs in this regard.

For the benefit of the members, we have issued three separate Announcements, covering these aspects. The full text of these Announcements is available on our website.

Playing our Role in Union Budget 2014-15

The stage is set for the Union Budget 2014-15. We at ICAI have played a significant role in this important national exercise, by presenting a Pre-Budget Memorandum, 2014 to the Ministry of Finance recently. An ICAI delegation also participated in a pre-Budget meeting of the Ministry of Finance and presented the gist of recommendations made in our Pre-Budget Memorandum.

Our Memorandum contains suggestions to improve tax collection, reduce and minimise litigations, rationalise provisions of taxation laws and remove administrative and procedural difficulties, etc. Accountancy profession looks forward to a progressive Union Budget that will propel Indian economy to high growth trajectory.

Innovation and change will always let us develop and upgrade our lives—be it our profession or personal life. Change is only constant thing in life, it is said. Innovate and the change gets better.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less travelled by,
And that has made all the difference.

Robert Frost in his above poetry hints at out-of-box thinking that creates relevance. The people of India have great expectations from the new Government and I am sure we could look forward to good governance that would lead to a buoyant Indian economy. Even the new Government will have to think out-of-box and work harder to meet the increased expectations of the people. This applies to us too. Let’s gear up and get ready to deliver to our stakeholders. Recall what Mahatma Gandhi has said: ‘You must be the change you wish to see in the world,’ and let’s make a new beginning to this effect on the CA Day.

Happy CA Day to all my readers!

Best Wishes,

CA. K. Raghu
President, ICAI

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Category : CA, CS, CMA (3660)
Type : News (13439)
Tags : Companies Act (2175) Companies Act 2013 (1948) ICAI (2540)

0 responses to “ICAI President's Message July 2014”

  1. MANDEEP SINGH says:

    tax guru ji,
                        we are facing problems due to new look of website. how we can reach on previous article for this we are unable to find page numbers. Please guide me. thanks

    • CA Sandeep Kanoi says:

      Dear Mandeepji,

      Thanks to bringing the same to our attention. This issue been resolved now.

  2. MANDEEP SINGH says:

    Rajesh ji,
                    I have no jealous with ICAI members & never tried to pass ICAI examination. But being a citizen of india, we always against trespass in others practice area. Do you thing members of ICAI are confined to their own practice area. Do you not thing they have entered in legal practice by making misrepresentation to government. IF CA’s DO THEIR OWN WORK THEN NOBODY HAVE PROBLEM WITH THEM.

    If they are confined to own area then why they are wearing black courts to represent assessees before tribunals.Which is a dress for Advocate to appear in court. why they are giving core intention on practice of law. By Leaving behind their own work, to write books of the assessees. Now practice area of CA’s are acquired by other persons for whom no qualification declared by government or CBDT. It is my request please do their work. Nobody here jealous with you.      

  3. Rajesh says:

    I don’t know why people are always expressing wrong opinion against  icai and its members.. I can catagorize those people into two categories 1. That might have tried to pursue CA and because of continued failures dropped it and sadding ICAI for their iinabilities
    2. People are jealous of looking atCAs growth 

  4. K.,MUKAMBIKA says:

    ICAI (FINANCIALS) defines excellence, independence & integrity. Where is the independence in audit of ICAI(Financial) accounts done by its own members & audit U/s 44AB of Income-Tax Act for revenue on seeking appointment from assesseee.

  5. B S K RAO says:

    MANDEEP JI,

    MANY INSTANCE OF CMA DATA ARE SIGNED BY ICAI (FINANCIALS) MEMBERS. I SUGGEST ICAI (COST & MANAGEMENT) SHOULD TAKE ACTION ON SUCH PROFESSIONAL MISCONDUCT OF ICAI (FINANCIALS) MEMBERS. BCI SHOULD ALSO TAKE ACTION U/S 45 OF ADVOCATES ACT, 1961 ABOUT PRACTICE OF INDIAN TAX LAWS BY NON-ADVOCATES.

  6. B S K RAO says:

    Due to T.D.Venkat Rao (SC) case only Chartered Accountant will conduct Tax Audit in Income-Tax Act. In view latest verdict in the case of Bar Council of India Vs A.K.Balaji (SC) Section 288(2) of Income-Tax Act require deletion. In the result only CAs will conduct Tax Audit & only Advocate will practice, plead & act before the Income-Tax Authorities. Can any one imagine the ill effect of this situation to Govt. revenue & troubling assessees to approach more than one Tax Professional to give compliance in Income-Tax Act.

  7. B S K RAO says:

    (1) Appearance of Chartered Accountant in scrutiny proceedings U/s.288(2), other than CPC/Evidence Act against summons issued U/s 131, is also bad in law for the reason that CA conducting Tax Audit U/s 44AB for revenue can not appear for same assessee in scrutiny proceedings by the strength of power of attorney U/s 288(2) of Income-Tax Act. This position is comparable to same Advocate appearing both for Petitioner and Defendant. This practical situation prevailing on date, requires kind attention of Policy Division of Central Board of Direct Taxes.

    (2) In Opinion No.23 of Committee on the Unauthorised Practice of Law appointed by New Jersey Supreme Court states as under:-

    “…we find that the dual practices of law and accounting…by lawyers would not violate the Cannons of Professional Ethics. Nor does it appear to us that any other rules of our Supreme Court would be violated by such dual practices…”

  8. MANDEEP SINGH says:

    Mr. Rajesh ji.
    Please tell me for following works of Chartered Accountants are authorised to do:-

    1) Practice of Law :
    Please tell me “practice of law” is Chartered Accountants
    Practice area. Do you not thing it is a trespass in
    Advocate Profession?

    2) Certify Project Reports & Balance Sheets:
    When no one authority is authorised to certify future of any person. How can CA certified such kinds project Reports & Balance sheets. If in future not achieved such projected target, what will be liability of CA. Project Report not based on only financial data & other facts need to recorded.

    3) Please tell CA’s are authourised to certify Balance sheets. Where books
    of account not maintained by assessee. What will be liability of CA’s
    for it.

    4) When CA’s are performing statutory duty for Government in a case. In which capacity he represented to assessee in same case. CAN YOU TELL ME AN ADVOCATE REPRESENT BOTH PARTIES Plaintiff & Defendant in a court.

    Sir,
    I mean to say nobody here to defame anybody. But it is common to all, When anybody enters forcibly in others home then definitely members of that house will protest for such action.

    SIR WE NEED TO CALMLY PROTEST & DEFEND WITH LOGICAL WAY . TO THREAT ANYBODY NOT A SOLUTION FOR IT. IF YOU THING CA’s should be authorised please reply with logic.

  9. S PRAKASH says:

    Dear Mr Rajesh,

    I wonder how a professional like you (I think) use such words. India a number ONE democratic country in the world and every citizen has right to express his opinion.If you have any opinion against Mr. BSK Rao’s kindly write so that you can enlighten us and also the entire professionals.

  10. B S K RAO says:

    Rajesh Sir, India is democratic sovereign, secular & socialistic country. Right of speech against the wrongful action is provided under Indian Constitution. No one can curtail such rights. Kindly read out Indian Constitution to know more about it

  11. B.S.K.RAO says:

    RAJESH SIR, WHY YOU FEEL ANGRY ABOUT THE REALITY OF THE ISSUE. IN WHAT WAY YOU ARE CONNECTED TO ICAI (FINANCIALS). LET THE PERSON CONCERNED IN ICAI (FINANCIALS) SPEAK TO ME. WHY YOU EXPRESS ANGUISH, HIDING YOUR IDENTITY. KINDLY DISCLOSE YOUR IDENTITY & ALSO PROVIDE ME YOUR E-MAIL ID TO ENABLE ME TO CHAT WITH YOU WITH RELEVANT ARGUMENTS ABOUT THE ISSUE IN QUESTION.

  12. MANDEEP SINGH says:

    Mr,
    rajesh ji not use such kinds language to any person. Sir it is wrong to use such words for any person or persons. It is not good manners.
    I am regularly reads comments & Article of SH. BSK RAO JI. I think all words used by Sh. Rao with a intention to widen genuine tax base, to save dignity of other professions as like CMA, CS, Advocate & assessees. I think u wrongly interpretation of words Sh. BSK RAO. I think Sh. Bsk Rao not used words with a intention to defame anybody.

  13. rajesh says:

    Mr. BSK Rao its seems you are an illogical person.. how dare you speak about icai… Mr.Idiot keep your mouth shut else you will be put on to trouble….

  14. B S K RAO says:

    Celebrating 65 Years of Professional Excellence

    WHEN CBDT IS UNABLE TO PROVIDE TOTAL OF SECTION WISE WRONG CLAIMS REQUIRED TO BE REPORTED IN TAX AUDIT REPORT FURNISHED BY CAS FOR THE ASSET. YEAR 2013-14 AND UPLOADED TO E-FILING PORTAL OF INCOME-TAX DEPTT. AGAINST THE RTI APPLICATION OF TAX ADVOCATES, HOW COME ICAI (FINANCIALS) USE THE WORDS PROFESSIONAL EXCELLENCE ?

  15. B S K RAO says:

    FIRSTLY ICAI (FINANCIALS) SHOULD WORK UNDER TRANSPARENCY THEN PUBLISH ABOVE MESSAGE

  16. B S K RAO says:

    IF CBDT CONSIDER SUGGESTION OF ICAI (FINANCIALS), IT LEADS TO NOTHING OTHER THAN COMPLICATING THE LAW & FURTHER IT WILL SIT IN DARK ROOM. BEFORE CONSIDERING SUCH SUGGESTION, IT HAS TO UNDERSTAND HIDDEN INTEREST IN IT & DECIDE ABOUT NEXT COURSE OF ACTION. IT IS COMPARABLE TO AN ACT OF ANALYZING INTENTION OF LEGISLATURE IN THE PROCESS OF INTERPRETATION OF LAW

  17. B S K RAO says:

    LET THE ICAI (FINANCIALS) SHOW ONE SINGLE INSTANCE OF ITS ACTION AS PROOF FOR MEETING SOCIAL RESPONSIBILITY

  18. B S K RAO says:

    MANDEEP JI, I AM OF THE STRONG VIEW, AS LONG AS ICAI (FINANCIALS) IS ALIVE, INDIAN ASSESSEES & PUBLIC AT LARGE CAN NOT ESCAPE FROM THE CLUTCHES OF THESE MANDATORY CA CERTIFICATES CAUSING STRICT HURDLE FOR EACH AND EVERY ACTIVITY IN INDIA

  19. MANDEEP SINGH says:

    Sir,
    To simplify Income tax & widen genuine tax base, following points should be considered for this.

    1) Unnecessary Reports from Chartered Accountants need to eliminate from
    income tax act 1961 to widen genuine tax base.
    2) Simplify accounting system, for this no certificates required.
    3) FOR NON FILLING ITR penalty is 5000 only then why illogical penalty of
    Rs.150000 for non filling AUDIT REPORTS.
    4) MORE TAX PRACTITIONERS IN LINE MORE REVENUE. AS PER RTI CHARTERED
    ACCOUNTANTS STRENGTH ONLY 65000 WHO SIGNED TAX AUDIT REPORTS. Same as
    required for political party more worker more votes.
    5) MINIMUM REPORTS & MAXIMUM TAX is a part of our BJP GOVT. Slogan MINIMUM
    GOVERNMENT & MAXIMUM GOVERNANCE.

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