My dear Esteemed Professional Colleagues, |
With the Government’s commitment to fiscal consolidation and sustained growth, continuous initiatives and reformative steps in that direction, India’s macroeconomic story is gradually improving. Recent economic reforms that aim to advance the government’s agenda of improving the nation’s business climate, enhancing its productivity and stimulating its foreign and domestic investment, is eventually fostering growth which is evident from the fact that according to World Bank’s report, India’s economy is expected to grow at 7.2 per cent this financial year (i.e. FY18), up from 6.8 per cent in 2016, which may further grow at 7.5 per cent the year after. |
Recently, international credit rating agency, Moody’s Investors Services, has raised India’s sovereign rating for the first time in 13 years due to India’s high growth potential in the coming years and in view of the ongoing economic and institutional reforms, which will enhance India’s large and stable financing base for the Government debt, and contribute to the gradual decline in general Government debt burden. This rating upgrade, coupled with India’s improved ranking in the recently declared World Bank’s ease of doing business index are strong indicators of inherent economic strength of Indian economy and positive directions of reforms. |
23rd GST Council Meeting and Other Developments |
Having supported the GST regime since inception, ICAI has been undertaking various measures to facilitate its smooth implementation extending its support to all its stakeholders. Recently, before the 23rd GST Council meeting, ICAI has again submitted many suggestions relating to GST implementation faced by assessees and our members, as well as on regulatory and procedurals issues. From the decisions taken by the GST Council, it appears that some of these suggestions were positively considered. Key decisions taken include an increase in the limit of aggregate turnover for composition scheme from 1 to 2 crore, exemption from compulsory registration to service providers for extending services through e-commerce platforms, filing of quarterly instead of monthly returns by taxpayers who have annual aggregate turnover up to 1.5 crore, reduction in GST rate on a large number of goods, exemption from tax on advances in case of goods, reduction in late fee of return filing and so on. GST Council has also set up a committee to look into making GSTR-2 and GSTR-3 business friendly. |
Meetings with Dignitaries |
Recently I had an a meeting with Union Commerce and Industry Minister CA. Suresh P. Prabhu, Union Railways and Coal Minister CA. Piyush Goyal and Union Minister of State for Corporate Affairs Shri P. P. Chaudhary, where I requested them to grace the forthcoming International Conference of ICAI, besides discussing the matter of professional interests with them. ICAI Secretary Shri V. Sagar had accompanied me in my meetings with Union Commerce and Industry Minister as well as Union Minister of State for Corporate Affairs. |
Visits of International Delegations to ICAI |
IESBA Delegation: IESBA (International Ethics Standards Board) Chair Dr. Stavros Thomadakis and Technical Director Mr. Ken Siong visited ICAI recently on 2nd-3rd November 2017, where they also addressed the Council. On 3rd November 2017, the IESBA delegation also addressed the ICAI members at a live webcast on Proposed Revision in the IESBA Code of Ethics. IESBA Chair Dr. Thomadakis later gave an interview to the ICAI (to be published shortly in the Journal) and responded to the questions concerning ethics and ethical standards, put before him by Ethical Standards Board and Editorial Board of the Institute. |
Edinburgh Group, IFAC and CAW Meetings in Brussels |
I along with ICAI past-President and outgoing IFAC Board member CA. K. Raghu and ICAI Vice-President CA. Naveen N. D. Gupta attended the Edinburgh Group Meeting on 14th November 2017 in Brussels, Belgium. We also attended the IFAC Council meeting on 15th- 16th November 2017. Then, I and ICAI Vice-President CA. Naveen N. D. Gupta attended the IFAC Board meeting and the Chartered Accountants Worldwide (CAW) CEO meeting on 17th and 18th November 2017 respectively. |
IFAC SMP Committee and Other Meetings in New York |
Recently, ICAI Vice-President CA. Naveen N. D. Gupta along with ICAI past-President and IFAC SMP Committee member CA. Manoj Fadnis attended the IFAC SMP Committee meeting on 22nd-24th October 2017 in New York, wherein they raised the concerns that ISQC (International Standard on Quality Control) should not be made applicable to SMPs due to the difficulties being faced by them. |
SAFA Events in Colombo |
Recently, 49th SAFA Board meeting and Committee meeting were held in Colombo, Sri Lanka on 30th October 2017–1st November 2017 wherein my Council colleagues CA. Atul Gupta, CA. Tarun Ghia, CA. Mukesh Singh Kushwah, CA. Mangesh Kinare, CA. Prafulla Chhajed, CA. Ranjeet Agarwal, CA. Rajesh Sharma, CA. Dhiraj Khandelwal and CA. Debashis Mitra participated. Coinciding with the meetings, SAFA International Technical Workshop was organised on the theme Non-Compliance with Laws and Regulations (NOCLAR) and IFRS 15, which witnessed a participation of more than 200 delegates from South Asian nations. |
Consultation Paper on Proposed Changes in Standard-Setting Boards for Audit and Ethics |
Monitoring Group (MG), a group of international financial institutions and regulatory bodies committed to advancing the public interest in areas related to international audit standard setting and audit quality, has issued a consultation paper titled Strengthening the Governance and Oversight of the International Audit-Related Standard-Setting Boards in the Public Interest (available at https://www.iosco.org/library/ pubdocs/pdf/IOSCOPD586.pdf) setting out various options to enhance the governance, accountability and oversight of the international audit standardsetting process. MG’s consultation paper aims to elicit the stakeholders’ opinion on how best to safeguard the independence of standard-setting process and its responsiveness to public interest. I request my member colleagues to send their comments to the Institute at ia@icai.in. We are also considering the above Paper in the ICAI Council and comments received from its members, which will help us to submit our response suitably. |
Representations/Suggestions Submitted |
In furtherance to our earlier representations and time-to-time discussions with CBDT, ICAI has submitted a representation with regard to the Guidelines on POEM. Various meetings were held with the CBDT officials to elucidate the genuine hardship being faced and our submissions have been duly considered. CBDT has issued a relevant Circular to address our concerns. We had also submitted requests to CBDT for the issuance of refund to foreign companies that did not have bank account in India, for years prior to the assessment year 2017-18. In a meeting, CBDT has informed that our request is being considered. Suggestions have also been submitted to CBDT on the draft notification laying down the Guidelines for Maintaining and Furnishing of Transfer Pricing Documentation in the Master File and countryby- country report. |
Revision in Audit fee of Regional Rural Banks |
I am happy to inform that as informed by National Bank for Agriculture and Rural Development (NABARD), the Government of India has approved the increase in the audit fee being paid to auditors of head/branch offices of regional rural banks (RRBs) for their various business levels by 25% to 40% and some new slabs have been introduced for the annual audit of RRBs for the financial year ending 31st March 2018. |
Some Important Decisions of ICAI Council |
At its 370th meeting held on 2nd-5th November 2017, the ICAI Council took some important decisions:
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11th ICAI Awards 2017 in Mumbai |
As you may be aware, the 11th ICAI Awards 2017 will be held on 19th January 2018 in Mumbai. Five more categories, viz. CA. Corporate Contributor, CA. Entrepreneur, CA. Lifetime Achievement, CA. Exemplary Contributor to Society and CA. Distinguished Contributor in Civil Services, have been added to widen the area of awards in the emerging sectors. Further details are available on https://awards.icai.org/. Members in Industry are requested to send nominations for the above. |
ICAI International Conference on 8th-9th December in Mumbai |
As informed earlier, ICAI 2017 International Conference will be held on 8th-9th December 2017 in Mumbai, on the theme Accountancy Profession: Convergence and Sustainability in Digital Era. As many as 1,500 participants are expected to attend the Conference. SAFA Board and Committee meetings will also be held on the sidelines of this mega event on 6th-7th December 2017. As registrations are fast filling in, I request those interested to register soon for the Conference and make it grand success. |
ICAI Chapters Organised International Events |
29th Annual International Seminar at Abu Dhabi Chapter of ICAI was held on 9th November 2017 on the theme Success through Synergy, bringing together a galaxy of professional leaders. 2-day 4th International Conference 2017 was organised by Doha Chapter of ICAI on the theme of Engage Innovate and Transform on 23rd-24th November 2017, bringing the leading financial-sector experts and their insight on board. 11th Anniversary Gala of Toronto Chapter of ICAI was organised on the theme of Building Leaders with Purpose and Passion on 18th November 2017, which among others served the members with an opportunity to connect with each other. Then, the 3rd Anniversary Annual Gala of British Columbia (Vancouver) Chapter of ICAI was held on 19th November 2017, promoting further the cause of members’ networking and other professional opportunities. |
Disciplinary Actions |
13 meetings of Board of Discipline and Disciplinary Committee (Bench I and II) have been held across the country in August–October 2017, where 187 PFOs (prima-facie opinions) were considered. Accordingly, hearing in respect of 38 cases (including 6 cases of public interest matters) was concluded and punishment was awarded in 10 cases. 20 cases were part-heard and adjourned. |
Suggestions Invited for Pre-Budget Memorandum 2018 |
Like every year, this year too, ICAI would submit its Pre-Budget Memoranda to the Ministry of Finance. For the purpose, ICAI has invited suggestions from its members at large through an online format. Suggestions have also been sought from all Branches and Regional Councils. I request my member colleagues to submit their suggestions for consideration and inclusion in the Pre-Budget Memoranda at https://appforms.icai.org/preBudgetSuggestion/index.html. |
MoU with Jet Airways |
Recently, we have signed an MoU with Jet Airways with regard to the concessional fare for our members and students. My Central Council colleagues CA. Mukesh Singh Kushwah, Chairman of Committee for Capacity Building of Members in Practice, who took the initiative, CA. Tarun Jamnadas Ghia and CA Anil Bhandari were also present on the occasion. Details of the offer are being published in the ICAI News section of this issue. |
Training for Officials of ULBs/Local Fund Auditors |
Promotion and adoption of accrual accounting in the government sector and creating awareness is always a priority area of ICAI. In this direction, recently Training programmes on the Implementation of Double Entry Accrual System (DEAS) of Accounting and Financial Management Reforms in Urban Local Bodies (ULBs) has been successfully organised for the officials of ULBs/local fund auditors of Delhi (jointly with Urban Development Department of Delhi), Chhattisgarh (jointly with Directorate of Local Fund Audit of Chhattisgarh) and West Bengal (jointly with State Mission Directorate, AMRUT, of West Bengal). These programmes were well received and appreciated by the respective Directorate/Department and participants. |
CA Benevolent Fund in Service of ICAI Members |
Contribution of 94,12,059/- has been received so far by Chartered Accountants Benevolent Fund (CABF) and a sum of 48,00,500/- has been granted as medical and financial assistance to the members in distress and to the families of deceased members of the Institute through CABF during 1st April 2017 to 30th September 2017. I urge all my member colleagues to make generous contribution to the Fund so that members and members’ families in need could be assisted. |
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The month of December brings back with it a panorama of life that we have had through the year- good and bad, success and failures, joy and despair- we get new perspectives to explore our one-year past. December is profound since it makes us think and transforms us into an accountant, an auditor to be precise. It is about the audit of our life-we need to sit back and recall. We need to introspect. |
Best wishes, |
CA. Nilesh S. Vikamsey President, ICAI Mumbai, 25th November 2017 |
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