Dear Friends,
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Nothing can bring
you peace but yourself. Nothing can bring you peace but the triumph of
principles, writes Ralph W.
Emerson. I too believe in the power of self andprinciples, which we respect and stand for in our
life. For me, this is all the more important as I have been entrusted with
the responsibility of a leader. I consider it an absolute honour to serve
my profession while joining the strong lineage of its leadership. Albert
Einstein quite beautifully links human endeavours and excellence: We have to do the
best we can. This is our sacred human responsibility. And I promise to do justice to my
responsibilities in that sense too.
It is indeed a privilege to communicate as
63rd President of The Institute of Chartered Accountants of India and
welcome and express my gratitude to all its stakeholders. I wish to record
my gratitude to all my Council colleagues for demonstrating trust in my
leadership-for my election as Vice-President in 2014 and now as President
in 2015. I wish to thank my fraternity for extending their help and support
on all coveted instances.
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I also wish to thank my
predecessor-in-office CA. K. Raghu, who has guided and supported me during
my tenure as Vice-President of the Institute. The Institute has certainly
benefitted from his penchant for IT aspects of the profession. Associating
with him has added to my professional understanding. I am fortunate to
receive his continued support in our quest for holistic professional
growth.
I congratulate my Central Council
colleague CA. M. Devaraja Reddy on his election as the new Vice-President
of the Institute. I am sure, his rich professional experience including his
recent stint as Chairman of the Board of Studies of the Institute, especially
in conceptualising a new futuristic CA Curriculum, will help us. His
contribution will certainly benefit the profession at large and also help
me in executing my agenda of growth.
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Increased Share in
Government’s Agenda
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It is satisfying that our nation has taken
a serious note of our contribution and duly appreciated the same. Even the
representatives from the Government have recognised that we are in sync
with our times. I accept with pride that we constantly endeavour to become
contemporary with training and technology. In fact, we work hard to
constantly update both our curriculum and publications. We have been
helping the Government to shift to that accrual system of accounting.
Supporting the green initiatives, we have already started our journey
towards a paperless system. With our financial expertise, we are helping
the Government in performing its job better and thereby partnering in the
nation-building process. This year, we plan to increase our engagement with
standing committees of the Parliament by submitting more representations.
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Lok Sabha Speaker
Appreciates ICAI
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Recently I had an opportunity to meet the
Hon’ble Lok Sabha Speaker Smt. Sumitra Mahajan in Indore, the unanimously
elected Speaker, who serves the Lok Sabha for the eighth term. Having
interests in women’s welfare and social reforms, she was really happy to
know that ICAI too has these welfare issues on its agenda. On behalf of the
profession, I have assured her of our continued support.
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Expectations from
Union Budget 2015-16
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By the time my message reaches you, the
Union Budget and the Rail Budget for 2015-16 would have been presented.
Having high expectations from this Government’s first full Budget in the
backdrop of our recovering economy, growing investor confidence and
bringing inflation in control, I hope that both the Budgets will be rich on
policy measures especially towards bettering the business environment and
fiscal consolidation. A reform-oriented budget can really deliver the promised
good days to our country. Implementation of Goods and Services Tax (GST) is
recognised as the single biggest tax reform in the country.
I feel proud that for the first time a
member of our profession CA. Suresh Prabhu will present the highlyawaited
Rail Budget. He has announced to leverage the IT measures in the railways.
I am sure both these budgets will herald a
new era in the Indian economy.
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International
Conference Brings in Global Recognition
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It gives me immense pleasure to inform
that the Institute recently organised a very successful three-day
International Conference on Accountancy Profession: Building Global
Competitiveness; Accelerating Growth in Bengaluru. This was inaugurated by the Union
Railway Minister CA. Suresh Prabhu as Chief Guest along with the Guest of Honour Rajya Sabha MP CA. K. Rahman Khan.
Eminent speakers on the occasion included Member of Parliament Dr. Kirit
Somaiya, NACAS Chairman CA. Amarjit Chopra, SAFA President Mr. Arjuna
Herath from Sri Lanka, ICA Australia CEO Mr. Lee White and CPA Ireland CEO
Mr. Eamonn Siggins, among others. Around 2,300 national and international
delegates participated in this Conference. On the sidelines, SAFA Board and
Committees meetings were held along with the launch of SAFA
House-SAFA's Knowledge and Training Centre. (A detailed report has been
published in this Journal.)
International accounting bodies have
acclaimed our global presence and expressed their gratitude for our
contribution at various international professional platforms.
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65th Annual
Function Held in New Delhi
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Recently, the 65th Annual Function of the
Institute was organised in New Delhi which was inaugurated by the Chief
Guest Union Minister of State (Independent Charge) for Power, Coal and New
& Renewable Energy CA. Piyush Goyal. The Union Minister praised the
Council for giving a dynamic shape to the profession, which has earned high
regards for integrity and transparency. (A detailed report has been
published in this Journal.)
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ICAI to Support
Sanitation Audit
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In taking the mission Swachh Bharat
Abhiyaan forward,
public-sector undertakings governed by the Ministries of Power, Coal and
New & Renewable Energy have decided to spend their corporate social
responsibility (CSR) funds in constructing toilet complexes in schools
which either have insufficient or no such facility at all. Union Minister
CA. Piyush Goyal had requested the profession to take up the verification
and audit of the amount spent as part of our own CSR on pro bono basis. Acting swiftly on his
request, we have published an appeal/ notification for all practicing
members asking them to communicate their interest for this audit by 28th
February 2015. I personally urge upon my fraternity to participate
wholeheartedly in this unique and responsible Abhiyaan. Let us commit ourselves to fulfilling
our social responsibility.
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All Ind AS
Converged with IFRS Notified-ICAI Plays a Key Role
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I am glad that the Ministry of Corporate
Affairs of the Government of India has notified, dated 16th February 2015,
all the Indian Accounting Standards (Ind AS) converged with IFRS by placing
them on its website after formulation thereof by the ICAI and their review
by the National Advisory Committee on Accounting Standards (NACAS). This
marks an important milestone in the evolution of accounting standards in
India by placing them almost at par with the globallyaccepted IFRS.
Presently, there are only four compulsory
carveouts from IFRS and going forward we hope that even these will be addressed,
as we are in touch with the International Accounting Standards Board (IASB)
in this regard. I am pleased to mention that in the past also, the ICAI
along with a few other countries has been able to convince the IASB to
change the IFRS. For instance, Ind AS 41, Agriculture, was not notified in 2011 since it was
felt that the requirement to measure biological assets at fair value would
not be appropriate particularly for those assets having life of more than
one year and are maintained for its produce, such as, tea bushes. The ICAI,
along with some other countries (e.g. Malaysia) took up this issue with the IASB and
suggested that such biological assets termed as ‘bearer plants’ are more of
the nature of plant and machinery and, therefore, should be accounted for
in the same way. I am pleased to inform that the IASB, in 2014, amended IAS
41, Agriculture, to scope out the bearer plants from the standard and scope
the same in IAS 16, Property, Plant and Equipment. Following these amendments in IAS 41
and IAS 16, the Ind ASs now notified include Ind AS 41, Agriculture. Another example is that, in 2011, IFRIC
15, Agreements for the Construction of Real Estate, was not considered for the purpose
of notification and such agreements were scoped in Ind AS 11, Construction
Contracts, so that the real
estate industry may follow percentage of completion method. This issue was
also taken up with the IASB along with various other countries. In this
regard, the IASB also held an outreach meeting with the representatives of
real-estate industry in India in 2012. Pursuant to such discussions, the
IASB in its recently-issued IFRS 15, Revenue from
Contracts with Customers, has addressed this issue. Accordingly, the Ind ASs now
notified contain Ind AS 115 corresponding to IFRS 15 which addresses the
concerns that were raised by the real estate industry with regard to IFRIC
15.
I am confident that ICAI will continue to
play an important role not only in formulating high-quality national
Accounting Standards but would also play an equally significant role in the
formulation of IFRS by sending inputs to IASB from time to time.
I am happy to state that the Institute has
completed the process of formulating the Indian Accounting Standards
converged with IFRS in a time-bond manner. On 10th July 2014, the Union
Minister of Finance in his maiden budget speech had mentioned that the
Indian corporates will move towards the International Accounting Standards,
on a voluntary basis, with effect from 1st April 2015 and on a mandatory basis
from the year 2016 in a phased manner.
I am happy to report that the Accounting
Standard Board (ASB) of The Institute of Chartered Accountants of
India undertook
the herculean task of updating all the Ind ASs as notified in 2011 and also
formulating the converged Indian Accounting Standards up to IFRS 15. The
due process was rigorously followed and after extensive discussion and
deliberations in the ASB and in the meetings of the Central Council,
these Standards were finalised. Thereafter, they were given to the
NACAS which generally accepted the recommendations of the Council of the
Institute. With the hosting of all these standards on the website of the
Ministry of Corporate Affairs, the entire process has been completed in
record time of less than six months. This technical contribution of the
Institute is a testimony of what the profession can collectively contribute
towards the growth and progress of our country.
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Review of CA
Education and Training
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Strengthening the CA education and
training is numero uno on the Council agenda. I am happy to acknowledge that
the Council has finalised the draft for New Scheme of
Education and Training for Chartered Accountants as three-tier Scheme, i.e. Foundation, Intermediate and Final.
This was launched formally for public comments at the 65th Annual Function
through the hands of Union Minister CA. Piyush Goyal. In order to have
structured inputs and wider participation, the draft Scheme has been hosted for public comments.
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One among Us
Honoured with Padma Shri
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One of our highly respected members, CA.
T. V. Mohandas Pai, who has an illustrious professional career, has been
awarded Padma Shri this year. He is also one of the most generous members
of the Institute, having contributed a sum of 50 lakh to the CA Benevolent
Fund. I appreciate this fact and congratulate him from the core of my heart
for making the profession proud.
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Scheme for
Retrospective Restoration of Membership Welcomed
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In order to mitigate the hardships of our
members whose names stand removed due to non-payment of membership fee, the
Council has decided to give them an opportunity by way of the General Amnesty
Scheme. This is a
one-time dispensation for retrospective restoration of their membership. I
sincerely request them not to lose this excellent opportunity to reconnect.
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Three New
Committees Formed
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I am happy to inform you that we have
formed three new committees in the Institute, i.e. Corporate Social
Responsibility Committee, Management Committee and Career Counselling
Committee, to advance the responsibility agenda from the perspectives of
our society, members/students and employees of the Institute.
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ICAI Corporate
Forum Awards in Mumbai
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In order to provide our members a platform
to interact with Indian corporates, we recently organised the ICAI
Corporate Forum in Mumbai comprising ICAI Awards and
Corporate Conclave. At ICAI Awards, the Institute honoured the members for
their contribution across Indian business sectors, corporate houses and
MNCs. The Jury for the awards was headed by the Hero Group Executive
Vice-Chairman & MD Shri Kamal Kant Munjal. Chief Guest for this Award function
was Zee Entertainment Enterprises Ltd. Chairman Dr. Subhash Chandra. Corporate
Conclave-In Pursuit of Excellence provided its 250-odd participants an opportunity to
listen to eminent speakers and experts.
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ICAI CSR Awards in
Mumbai
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I am happy to inform that ICAI CSR Awards
2014 were recently held in Mumbai to recognise corporate enterprises,
not-for-profit organisations, individuals, etc., for their outstanding CSR
contribution in the country. Awards were given in the fields of health,
education, women empowerment, rural development, renewable energy and
alleviation of poverty, to name a few. The Jury headed by CA. Keki Minoo
Mistry, Vice-Chairman & CEO, HDFC Ltd., consisted of 11 responsible
citizens of the country, including Shri Prakash Jha (film director) and our
past-President CA. Uttam Prakash Agarwal. Most notably, the Jury
decided suo moto to give the Best CSR Citizen Award to Mr. Azim Premji.
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ICAI Awards for
Excellence in Financial Reporting
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ICAI Awards for Excellence in Financial
Reporting were given away recently in Chennai. Rajya Sabha MP CA. K. Rahman
Khan was the Chief Guest on the occasion. The award function was preceded
by a technical workshop on Towards Excellence in Financial Reporting. The awardees of the competition were
decided by a jury chaired by CA. K. Rahman Khan. The members of the Jury
included IICA DG & CEO Dr. Bhaskar Chatterjee, NACAS Chairman CA.
Amarjit Chopra, former CMD of Indian Overseas Bank Shri M. Narendra and
former Deputy C&AG Shri A. K. Awasthi, among others.
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Articled
Assistants’ Stipend Doubled
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I take pride that studying for CA
qualification is very much affordable for all strata of our society.
Students irrespective of their financial background become members of the
Institute through their hard work and dedication. Students being the future
of our profession have always been high on the Institute’s agenda. In a
move to support them economically during their articleship, the Council has
decided with immediate effect (i.e. 23rd January 2015) to double their
stipend for all three years of articleship payable to articled assistants.
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Action
Plan-Spearheading Professional Excellence
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