My Dear Professional Colleagues, |
Elections usher in virtues of democracy in the system; democracy being reflective of freedom of expression, choice and related redeeming virtues in a civil society, results in the improvement in the quality of our day-to-day life. Strong and credible institutions echo the democracy within and when these are also the epitome of the rule of law, they denote the mandate for public welfare. The tenets and virtues of democracy are deeply ingrained in the psyche and actions of the Indian accountancy profession ever since the profession was granted autonomy through the Chartered Accountants Act in 1949. Having preserved and tirelessly upheld the tradition of internal democracy for about 70 years, the accountancy profession of India is now geared up to celebrate its democracy and independence through its triennial elections for the term 2019-22 to the 24th Central Council and 23rd Regional Councils of ICAI. As you know, the elections will be held on 7th-8th December 2018 at the places having more than 2500 voters, and only on 8th December 2018 at all other places. Abraham Lincoln had said: Elections belong to the people. It’s their decision. Therefore, I would urge my professional colleagues to exercise their right to vote with the discerning sense of responsibility towards profession for electing your worthy leaders who are your voice and ambassadors for guiding the policy initiatives at ICAI. |
Success of elections first depends on our turnout to vote, and then on our objective conduct. It is equally crucial to keep our profession’s interests on priority over our personal preferences. The outlook needs to be responsive, since the results of elections will impact and determine the course of our development for the coming years. So, make your choices with a view to secure the vibrancy of the dynamism of our profession. Our actions today will also be in the best interests of our nation, as our profession is intricately connected to its economic welfare. Since inception, ICAI has been an integral partner-in-nation-building. ICAI is all set to conduct this mammoth nation-wide exercise and extending to overseas members in a transparent, efficient and just manner by following the due process. We will do our best and ensure that elections are held with complete fairness and transparency. |
India at 77th Rank in Ease-of-Doing-Business |
In a big boost to its international outlook, India has recently climbed another 23 points in the World Bank’s ease of doing business index, i.e. reaching 77th place, and becoming the top-ranked country in South Asia for the first time. It is a welcome development that in the last two years, India has climbed 53 steps. In the current rankings, the biggest gain was in construction permit where India climbed 129 ranks to 52nd place on the back of targeted government effort to remove the bottlenecks and ease out through reforms. |
Successful Indian Representation at 20th WCOA in Sydney |
World’s leading accounting and finance experts got together in Sydney on 5th-8th November 2018 to participate in the 20th World Congress of Accountants (WCOA) on the theme Global Challenges, Global Leaders. Being a momentous event for the accountancy profession globally, the Congress provided its participants an opportunity to engage with leaders and representatives of various accountancy institutions of national and international repute. Representing the Indian accountancy profession, I presented the Indian perspective at the IFAC Council congress that attracted the leadership of over 150 countries. |
ICAI Signs MoU with CPA Canada |
I am happy to inform that ICAI has signed the MoU with the Chartered Professional Accountants of Canada (CPA Canada) on 17th November 2018, to facilitate mutual recognition of each other’s qualification and prescribing a bridging mechanism between the two institutions. CPA Canada President and CEO Ms Joy Thomas and I signed the MoU representing the two institutions. Members of the managing committee of Toronto and Vancouver Chapters were also present on the occasion. With Canada being one of the most favoured destinations for Indian professionals, this MoU will provide greater mobility to accountancy professionals at either end. Fostering strong working relations between ICAI and CPA Canada, the MoU will benefit more than 1000 Indian Chartered Accountants who are in Canada, besides other members in India who wish to seek international qualification and avail themselves of global opportunities. |
MBA from Coventry University, UK |
I am happy to inform that ICAI has recently finalised an arrangement with Coventry University, UK, to launch a range of progression routes for the members; to allow them to complete the MBA (Global Financial Services) Degree course from Coventry University. |
EEG Meeting in Seoul |
Recently, my Central Council colleague and AOSSG Vice-Chair CA. S. B. Zaware along with the ICAI’s Technical Directorate Head CA. Vidhyadhar Kulkarni attended the meeting of 16th Emerging Economies Group (EEG) on 29th-31st October 2018 in Seoul. ICAI raised its concerns and communicated about the activities of its related study groups and its forthcoming outreach activities at the meeting. |
No International Conference at ICAI |
I would like to inform you that in a new start of another practice of good governance and to strengthen our culture of independence and probity vis-à-vis our dynamics with the stakeholders, this year we have decided not to hold our International Conference using sponsorship amount. As you are aware, the organisation of the Conference involves taking sponsorship from stakeholders, who also have been the clients of profession, which might create a clash of interests. We want to discourage such a practice to further improve the image of ICAI and the profession. |
GST Revenue Crosses 1 Lakh Crore in October |
It is a pleasure to note that the Goods and Services Tax (GST) collections crossed the psychological barrier of 1 lakh-crore in October, coming in at 1,00,710 crore, making the October 2018 collections 20.8% higher than that, i.e. 83,346 crore, in October 2017. Of this mega collection in October 2018, CGST is 16,465 crore, SGST is 22,826 crore, IGST is 53,419 crore (including 26,908 crore collected on imports) and cess is 8,000 crore (including 955 crore collected on imports). Now that the GST compliance processes are stabilising and the Government’s anti-evasion measures have become effective, this collection definitely hints at a shift of perspective of our citizens, which is quite welcome. Let us continue to be tax-compliant citizens of our nation. |
GST Training and Development |
As you know, after the resolution of initial problems relating to GST compliance, it’s time to examine the previously-submitted records, returns and other documents. Section 35(5) of the GST Act mandates every registered person with a turnover exceeding 2 crore during a financial year to get her/ his accounts audited and accordingly submit a copy of the audited annual accounts, the reconciliation statement under the Section 44 (2) till 31st December 2018. |
Measuring State of Internal Audit Profession in India |
To measure the pulse and the existing state of internal audit profession in India, ICAI has reached out to all professionals serving in industry as well as in practice, which will also help it understand the future perspectives. I request all of you to participate in our survey in this regard hosted at https://goo.gl/forms/3IH6loSB0LFpGXxt2. A detailed analysis of the outcome of this survey will soon be made available. This will also help ICAI in developing its consequent vision and smart action plan in this regard. |
E-Hearings - A New Initiative |
To augment the existing disciplinary mechanism and to make it cost-effective, ICAI has introduced the conduct of disciplinary hearings through e-hearing mode (i.e. video-conferencing). Amendments to Chartered Accountants Rules, 2007 providing for e-hearings have been approved recently by the Ministry of Corporate Affairs vide notification dated 29th October 2018. Initially, such e-hearings would be conducted at the regional offices of ICAI. Modalities for e-hearings have been formulated and arrangements are being made to conduct the first e-hearing of disciplinary proceedings shortly. |
Proactive Interventions |
Amrapali Fiasco: Based on the media reports about the huge diversion of funds of homebuyers investing in the housing projects of Amprapali Group and alleged irregularity in the conduct of their statutory auditors, as informed by the Supreme-Court-appointed forensic auditors, ICAI suo moto issued notices to those statutory auditors, i.e. for the period 2008- 2015 and also for the latter period, in terms of the provisions of the disciplinary mechanism as provided in the Chartered Accountants Act, 1949 and the Rules framed there under. ICAI will vigorously investigate and take all necessary steps to ensure that misconduct by errant auditors, if any, are probed in a fast-track mode as per the terms of the procedure prescribed. |
Leadership Programme at IIM Ahmedabad |
To provide opportunity to Chartered Accountants to reflect upon new perspectives, dimensions and strategies to steer their organisations forward, ICAI will organise a 5-day residential programme, Advanced Leadership Programme for Chartered Accountants, at the Indian Institute of Management, Ahmedabad, on 24th-28th December 2018. This programme aims to equip Chartered Accountants with the tools and processes required to meet their professional challenges. |
Change in Qualification to Become a Registered Valuer |
As per the Companies (Registered Valuers and Valuation) Rules, 2017 issued by the Ministry of Corporate Affairs in October 2017, a Chartered Accountant with three years of post-qualification experience could become a Registered Valuer if she/ he is a graduate. Since the scheme of Chartered Accountancy course has been approved by the Ministry of Corporate Affairs wherein a Chartered Accountant may or may not be a graduate, ICAI represented the Government with its request to remove the criteria of graduation for becoming a Registered Valuer. I am happy to inform that the Ministry has amended the said Rules on our request and revised the concerned prerequisites. Now, any Chartered Accountant with three years of post-qualification experience as Chartered Accountant can become a Registered Valuer, even if she/he is not a graduate. |
Technical Guide on the Functioning of Audit Committee and Its Review Checklist |
As you are aware, the Audit Committee is inter alia responsible for liaison with the management; internal and statutory auditors, reviewing the adequacy of internal controls and compliance with the significant policies, procedures and reporting to the Board on key issues. The idea of having independent directors on the Audit Committee originates from the concept of effective Corporate Governance. The Independent Directors bring objectivity to Board decisions, protect common interest of the company and its stakeholders. |
12th ICAI’s Leaders & Business Excellence Awards, 2018 |
Next round of ICAI’s Leaders & Business Excellence Awards, 2018 are scheduled to be given away on 19th January 2019 in Mumbai. This is to felicitate our members for their exceptional contribution in industry. As you know, these awards had been instituted in 2007. These also aim to recognize the outstanding performance and contribution of Chartered Accountants in fulfilling the ultimate objective of nation building. Members of the institute holding top management positions, viz. Chairmen, Directors, CFOs and CEOs, have been the recipients of these prestigious awards in the past. This year, ICAI’s Leaders Awards have been created to honour our members-in-industry, and Business Excellence Awards to honour our members who have stepped out of the comfort zone and made exemplary achievements. There are 2 categories (i.e. CA Member of the Year and CA Innovator) under the Awards for Start-Ups and 4 (i.e. CA Achiever, CA CFO, CA Business Leader and CA Lifetime Achievement) under ICAI Leader Awards. Members may check https://awards.icai.org/wp-content/uploads/2018/09/12thicaiawards-2018.pdf for more details. |
SME Leader Awards- A First in History of ICAI |
As you will appreciate, SMEs have emerged as a vital sector for economic growth of India, providing employment in large numbers. To promote an entrepreneurial culture in the country and recognise the exceptional performance of CAs serving in the SMEs, ICAI for the first time instituted and gave away “SME LEADER AWARDS” in a function held in Mumbai on 26th October 2018. It was quite timely to honour the best talents grooming in SMEs for their imagination, commitment and success and valuable contributions to the SME growth. The awards were given away under four main categories of ‘Innovator,’ ‘Emerging Professional,’ ‘Wealth Creator,’ and ‘Business Transformer,’ and 16 sub-categories. The Chief Guest on the occasion was Maharashtra’s Director-General of Audit (Central) Shri Guljari Lal. Under the chairmanship of NPCC Ltd. (National Projects Construction Corporation Limited) CMD Shri Manohar Kumar, the Jury had selected 11 awardees. |
International Leader Awards |
First time in the history of ICAI, International Leader Awards were also given away on 15th November 2018 in Abu Dhabi, to recognize the professional achievements of our members who are based outside India. Such a recognition, I am sure, will motivate our members to excel in profession and contribute to the economy of the respective countries where they serve. Jury under the chairmanship of IRDAI Chairman Dr. Subhash Chandra Khuntia selected 7 awardees to honour for their exemplary contribution. |
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In a very simple but profound way, Katie Thurmes informs: You can’t do a good job if your job is all you do. So, there is a unique perspective of worklife balance; we need to balance our passions and not our time. Striving for excellence is motivating but that for perfection is often demotivating, since there can always be a better alternative to the best. |
CA. Naveen N. D. Gupta President, ICAI New Delhi, 26th November 2018 |
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