Dear Professional Colleagues,
I am happy to pen down some of the important developments concerning profession that have taken place in recent past. It is my duty to communicate with the fraternity and keep them informed about the changes happening in the profession.
Companies Law Committee
The Ministry of Corporate Affairs has recently constituted a Companies Law Committee to make recommendations to the Government on issues arising from the implementation of the Companies Act, 2013 and to examine the recommendations received from the Bankruptcy Law Reforms Committee, the High Level Committee on CSR, the Law Commission and other agencies, while recommending the suggestions.
I am happy that as President of ICAI I have been nominated as a member of this Committee. This reflects the confidence the ministry has in our profession. The first meeting of the Committee was held recently. To have wider opinion I request you to share your views and give suggestions on the Companies Act, 2013.
Relaxation in number of Audit
You would be glad to know that that the long awaited Notification to exempt private companies under section 462 of the Companies Act 2013 has been recently issued by the Ministry of Corporate Affairs. ICAI has highlighted need for a clarification in this regard on various occasions. There was no apparent need to put a cap on the number of audit of small and medium companies.
High Level Committee on Tax Laws
Recently, ICAI was invited for a meeting with the High Level Committee on Tax Laws formed by the Department of Revenue, Ministry of Finance, wherein, the issues relating to MAT on FIIs and also required changes in MAT provisions by virtue of applicability of IND AS were discussed at length. The High level Committee has agreed for a series of meetings for discussing the same in minute details. The Committee has also requested ICAI to flag other important issues in direct, indirect or international tax laws which require immediate action at the end of the Government.
Apart from the same, suggestions of ICAI were sought by the government on the draft ALP rules and accordingly submissions were made.
National Conference on GST & Indirect Taxes by ICAI on 5th & 6th June 2015
A Two days’ “National Conference on GST & Indirect Taxes” was organized recently in New Delhi. The conference was inaugurated by Sh. K M Mani, Chairman, Empowered Committee of State Finance Ministers on GST. In his address Shri Mani while lauding the efforts undertaken by ICAI for creating awareness regarding GST elaborated that GST will enable voluntary tax compliance, facilitate simple and transparent tax administration, reduce scope for ethical hazard as well as tax load on the ultimate customer. During the conference, a GST wheel, an innovative initiative of ICAI was launched. The conference apart from providing the members an opportunity to upgrade their professional knowledge gave them an insight into the contemporary issues on Indirect Taxes.
XBRL data used by Government
XBRL India has been spearheading the XBRL initiative since many years. It may be informed that the XBRL data so collected have been used by Ministry of Corporate Affairs of Government of India to arrive at the GDP which in itself is a big achievement.
It is really heartening that the growth of the profession is continuing unabated. To serve the about 240,000 members and 850,000 students we need huge infrastructure. The Infrastructure Development Committee is looking after the Building proposals that are received from Branches/regional Councils. Grants for developing the Infrastructure has been decided after considering long term Infrastructure requirements and cost generally involved for developing the same. To provide world class facilities to our Members and Students, Infrastructure Development Committee has approved land purchase proposals in Kannur, Pali, Jalandhar, Gorakhpur, Agra, Goa, Moradabad and Gurgaon Branches.
The ICAI is organizing its International Conference from August 7-9, 2015 at the Brilliant Convention Centre Indore on “Accountancy Profession: Spearheading Excellence” to dwell deeper into emerging paradigm of accountancy profession and deliberate on issues of emerging significance and in particular on Governance, Financial Engineering, Regulatory Compliance, Creation of Stakeholder Value, Corporate Social Responsibility and alike and provide an apt opportunity to delegates to empathise the challenges and opportunities available while dealing with areas of topical and emerging interest in global economy.
Meetings of International Forums help to keep abreast of the latest developments and International Best Practices happening around the globe. Participating in meetings like these, allows ICAI to obtain a better understanding of the different accounting organization’s views on regional challenges and in turn help ICAI to combat these challenges.
I attended Confederation of Asian and Pacific Accountants (CAPA) Meetings along with CA. Devaraja Reddy, Vice President, ICAI, ICAI. We attended the CAPA Public Sector FM Committee Meeting, CAPA Board Meeting & CAPA Annual General Meeting. We also had an opportunity to interact with the representatives of Accounting Standards Board of Japan; The Japanese Institute of Certified Public Accountants and XBRL Inc. to discuss the possibilities of mutual co-operation and collaboration for the betterment of membership at both the ends.
IFAC Board Meeting
I had priviledge to attend recently concluded International Federation of Accountants meeting with ICAI Board nominee CA. K Raghu. The meeting primarily focused on IFAC’s engagement with Independent Standards Setting Boards on Audit & Assurance, Education and Ethics to clarify and reinforce the independence of these Boards. These Boards inter alia presented priority areas for Work-Plan 2015-16. The forum broadly discussed IFAC’s continual drive for risk identification, assessment, mitigation and risk management for keeping a tab on global risk and control environmental issues confronting accounting profession for restoring its credibility.
Corporate Social Responsibility (CSR) is very vital in the present context of businesses. It is viewed as one of the most essential drivers while laying down the business plans and most of the corporates are aligning their CSR activities with their mainstream agenda. However, responsibility towards the society is way beyond the balance sheets.
We as socially conscious professionals have to understand the societal needs and have to find out innovative ways of contributing to the society and nation in tune with such needs and therefore facilitate the social responsibility in its true essence. CSR activities are very dynamic in nature. They are driven by the diverse factors including the industry and societal environment in which they operate.
In view of above, suggestions are requested from the members at large on the CSR activities that can be undertaken by the members/CA Firms. You may also provide information on the CSR activities that are presently being undertaken by you/your firm.
A Chartered Accountant is an industry ready professional who is exposed to extensive business ambience. In view of fact that Chartered Accountants can contribute in several areas such as Taxation, Company Laws, Foreign Exchange, Financial Management, etc. there is no dearth of opportunities for them in the country or abroad. There are lucrative opportunities for chartered Accountants internationally in various countries such as Australia, Singapore etc which again accentuates their global demand. Opportunities for around 100 CAs is also expected in Ireland. The Committee for Members in Industry is exploring the opportunities in the Audit Departments of large practices in Ireland. Typically in Ireland, the large firms will appoint a recruitment consultant to source suitably qualified accountants on their behalf. In recent months some of the large firms in Ireland have been challenged to find audit managers in the local market and have recruited overseas candidates.
With Best Wishes,
CA Manoj Fadnis
June 22, 2015- New Delhi (Source- ICAI)