ICAI - Eastern India Regional Council Convocation 2015

The Institute of Chartered Accountants of India (ICAI) organized ICAI-EIRC Convocation 2015. Chief Guest CA Yogesh Gupta IPS- Special Director- Enforcement Directorate awarded membership certificated of the Institute to the new members CA Manoj Fadnis- President ICAI, CA V Murali, CA Sumantra Guha, CA Abhijit Bandyopadhyay, Central council members, CA. Pramod Dayal Rungta Chairman EIRC and other members of Institute present at the convocation.

As one of the prominent accounting bodies worldwide, The Institute of Chartered Accountants of India (ICAI) has achieved recognition for its contribution in the fields of education, professional development, maintenance of high accounting, auditing and ethical standards.

Starting with a handful of about 1700 members, today, the strength of Chartered Accountant fraternity has grown to over 2.37 lakh members. On the education front, the ICAI began with mere 259 students and today more than 8.50 lakh active students are a part of ICAI. The ICAI has 5 Regional offices and 150 branches all across the country.The ICAI overseas Chapters continue to spearhead ICAI work program in 26 important jurisdictions globally.

66^th Chartered Accountants Day celebrations at New Delhi

The 66^th Chartered Accountants Day was celebrated all across the country by 150 branches & 5 Regional Councils of ICAI. To commemorate the occasion, a function was organized at New Delhi on July 1, 2015. CA.Piyush Goyal, Hon’ble Minister of State (I/C) of Power, Coal and New & Renewable Energy was the Chief Guest at the occasion. The Minister complimented ICAI for having accepted his request to help in the audit of sanitation programme that the Government of India has embarked upon. He urged the members to register for this project on pro bono basis.

The Minister also spoke about the 3 mega social security initiatives - one pension and two insurance schemes i.e. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) launched by Hon’ble Prime Minister. The Minister urged the CA fraternity and the students to ensure that the benefits of these schemes reach out to every individual in their environment. The strength of over 2.37 lakh members & more than 8.50 lakh students can have a large impact on the society & take forward this initiative by leaps and bounds.

International Conference in Indore

ICAI is organising three-day mega International Conference titled Accountancy Profession: Spearheading Excellence from August 7-9, 2015 in Indore. The Conference is spread over in 11 technical sessions and panel discussions and shall witness a mammoth gathering of more than 2,500 national and international delegates. The conference will offer 14 hours of CPE credit. The Conference aims to bring together stake holders such as thinkers, policy makers, industry and financial institutions to ponder and conceptualize broad contours of strategic framework for Building Global Competitiveness for nation’s economic development, predicating positively for the future growth of our economy. The International Conference would be a ‘Window to Future’ to understand and acclimatize to the unseen forces in the global business and regulatory landscape. The exchange of ideas and deliberations through the leaders would provide an indicative roadmap for development of professional accountants.   

Panel set up by the Govt. to review Companies Act

CA.Manoj Fadnis, President, ICAI is a member of the Committee which has been constituted to review and suggest recommendations to the Government on further issues arising from the implementation of the Companies Act, 2013. With this move, recommendations may be made to the Government that would bring out further modifications in the Companies Act 2013 wherever the provisions are required to be changed in order to achieve the main objective of “Ease of Doing Business in India”.

ICAI receives Invitation from CA Worldwide 

ICAI has received a request from the Chairman of Chartered Accountants Worldwide to join the organisation as an Associate Member. Chartered Accountants Worldwide, established in February 2013, is an initiative of leading world institutions of chartered accountancy to develop and promote the vital role that chartered accountants play in global economy. Its membership shall expose ICAI members to job opportunities from all parts of the world and help them in mobility to develop professionally and globally. 

 

Completion of formulation of Indian Accounting Standards converged with IFRS

Ever since the notification by the Ministry of Corporate Affairs (MCA) in February 2011 regarding Indian Accounting Standards converged with IFRS, the ICAI has been in the process of updating, revising and issuing new Ind AS converged with IFRS issued by the IASB after 2011 so that when the country moves towards implementation of the Ind AS, the same should be at par with the IFRS currently in force internationally.  As a consequence to this preparedness, subsequent to the Budget statement of the Hon’ble Finance Minister to implement the Indian Accounting Standards converged with International Financial Reporting Standards on voluntary basis from 1^st April, 2015 and on mandatory basis from 1^st April, 2016 in a phased manner, the ICAI was able to revise all the Ind AS and issued the new Ind AS converged with IFRS and submitted them on time to the National Advisory Committee on Accounting Standards(NACAS) constituted by the MCA.  The NACAS had also completed the exercise and recommended all the Ind AS to the MCA.

The Government had earlier also virtually accepted ICAI recommendations with regard to the roadmap for implementation of Indian Accounting Standards (Ind AS) for companies other than banking companies, insurance companies and NBFCs.  The ICAI had recommended this roadmap to the MCA in August 2014.

ICAI has completed the process of formulating the Indian Accounting Standards converged with IFRS on time bound manner. ICAI had undertaken the herculean task of updating all the Ind AS 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, these standards were finalized.  With the hosting of all these standards on the website of the MCA, the entire process has been completed in record time of less than 6 months.  This technical contribution of ICAI is a testimony of what the profession can collectively contribute towards the growth and progress of the country.

As per the roadmap, at the initial phase of Ind AS becoming mandatory from 1^st April, 2016 about 550 listed companies are expected to implement the Ind AS (the number would be higher if unlisted companies having net worth of more than Rs. 500 crore are also covered).  This number is likely to increase next year as all the listed companies and unlisted companies having networth of more than Rs. 250 crores will get covered in the next year.  Further, banks, NBFCs and Insurance Companies are expected to move to Ind AS 2-3 years thereafter.  Accordingly, over the next few years more and more entities will apply Ind AS on mandatory basis while a few do so on voluntary basis with a view to bring their financial statements at the international level. 

To be effective, the Ind AS have to be implemented in the same way as they are implemented internationally.  Since the Ind AS require generation of new type of financial information which is to be reported in the Ind AS-compliant financial statements, the systems of the companies need to be upgraded to generate such information.  Further, not only the professionals involved in the preparation of financial statements as per Ind AS need to have the necessary skill-sets to implement the Ind AS as these require judgment and estimates to be made which were hitherto not required, but auditors also need to upgrade their skills in this regard. 

The ICAI, through its IFRS certification course, has already trained approximately 6000 number of professionals.  Going forward, the ICAI plans to gear up its capacity building endeavours in a focused manner.  In this direction, the ICAI is planning to hold chain seminars throughout the country with a view to develop the necessary skills and knowledge for smooth and effective implementation of the Ind AS.  ICAI also plans to bring out educational materials to all the Ind AS (it may be noted that the education materials for 7 Ind AS have already released).  The ICAI also plans to launch the Ind AS in the electronic form so that the professionals and others concerned may use the contents of the Ind AS in a more effective manner.

The ICAI has accordingly geared itself on long-term basis to meet the challenges in the implementation of IFRS.

 

Swachh Bharat Abhiyaan

Hon'ble Prime Minister had nominated ICAI for the Swachh Bharat Abhiyaan in addition to other personalities and organisations. While announcing the Swachh Bharat Abhiyaan, Hon’ble Prime Minister had nominated few eminent personalities to take forward this campaign. It is an honour that while reviewing the progress of Swachh Bharat Abhiyan in Varanasi, Hon’ble Prime Minister has nominated ICAI among others. More than 2.35 lakh members & over 8.50 lakh students of ICAI are spread across the country and will play a vital role in taking this initiative of the Prime Minister forward and make a success of Swachh Bharat Abhiyaan.

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 ICAI to urge the professionals to take up the verification and audit of the amount spent as part of CSR on pro bono basis. Acting swiftly on the request, ICAI has published an appeal/ notification for all practicing members asking them to communicate their interest for this audit.  

Post Budget Memoranda 2015

ICAI has submitted the Post Budget Memoranda 2015 to the Government wherein certain amendments have been suggested to the proposals contained in the Finance Bill, 2015. The suggestions made would help the Government to achieve the desired objectives.

 

Strengthening Regulatory Mechanisms

As part of ICAI’s continuous drive to uphold the credibility, integrity and image of the accountancy profession in India, the regulatory mechanism of ICAI is working assiduously. Disciplinary Directorate of ICAI has been taking disciplinary action against its errant members as per the provisions of the Chartered Accountants (Amendment) Act, 2006 and Rules framed there under.

ICAI has a strong disciplinary mechanism wherein proceedings are initiated and taken to their logical end through a well-defined procedure which maintains the interests of natural justice while ensuring that the guilty are never spared. 

While law takes its own course, ICAI is committed to ensure justice in all disciplinary cases and thereby upholding the values of Excellence, Independence and Integrity which form the benchmarks of the profession.

Three New Branches 

3 more branches of the ICAI have been recently set up. In CIRC, 2 Branches are set up at Haridwar and Haldwani in Uttarakhand and 1 branch of SIRC is set up at Kalaburgi (Gulbarga) in Karnataka. Thus, the total numbers of ICAI Branches have reached the figure of 150.

Current Issues impacting the Profession

• Based on the representation of ICAI, Ministry of Corporate Affairs (MCA) issued a circular dated 30.03.2015 and clarified that the amounts received by private companies from their members, directors or their relatives prior to 01.04.2014 shall not be treated as deposits under the Companies Act 2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after 1^st April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement.​

·       Companies Amendment Bill 2014: Rajya Sabha recently passed the Companies (Amendment) Bill, 2014 which will go a long way towards ease of doing business. It includes amendments in 22 Sections of the Act. ICAI from time to time had submitted suggestions on various challenges in the Companies Act, 2013 so as to create conducive environment for functioning and growth of business.

The Companies (Amendment) Bill, 2014 includes a major amendment for the auditors which the ICAI was persuading i.e., an amendment in Section 143 (12) of the Act which prescribes that the auditor is required to report to the Central Government any fraud which is above the threshold. Any fraud below the threshold limit would have to be reported to the Audit Committee/ Board. Further, the amendment also provides for the companies whose auditors have reported frauds under this sub-section to the audit committee or the Board but not reported to the Central Government, shall disclose the details about such frauds in the Board's report.

For ease of doing business, some amendments have also been made in Section 185- Intercompany Loans and Section 188- Related Party Transactions which is the major area of concern.

·       Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities: ICAI recently issued this Guidance Note to provide guidance on recognition, measurement, presentation and disclosure of expenditure on activities relating to corporate social responsibility. This Guidance Note does not deal with identification of activities that constitute CSR activities, since these are matter of legal interpretation.  

·       Guidance Note on Reporting on Internal Financial Controls: The said Guidance Note had been approved by ICAI.  The Guidance Note will serve as a guidepost for the members to report on adequacy and effectiveness of internal financial controls under section 143(3) (i) of the Companies Act, 2013.
With regard to the fact that reporting on internal financial controls is a very onerous responsibility cast on the auditors by the Companies Act 2013, in addition to issuing the Guidance Note, ICAI will be training the members on how to appropriately implement the requirements of this Guidance Note.  The Guidance Note is currently under revisions and the revised version of the Guidance Note will be issued soon.

 

·       Guidance Note on Reporting on Fraud:  ICAI recently issued the Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 for the benefit of the members. The Companies Act, 2013 has introduced many new reporting requirements for the statutory auditors of companies. One of these requirements is given under the Section 143(12) of the Companies Act, 2013 which requires the statutory auditors to report to the Central Government about the fraud/suspected fraud committed against the company by the officers or employees of the company. A need was felt for providing appropriate guidance on this section so that the requirements and expectations of the section can be fulfilled in letter and spirit by the auditors.

 

ICAI will be organising training programmes to train the members on reporting on fraud under section 143(12) of the Companies Act, 2013.

Multi-Disciplinary Partnerships: ICAI has formulated draft Guidelines on MDPs so that ICAI can start registering MDPs in terms of the regulatory provisions as given in Regulation 53 B of Chartered Accountants Act, which are still under consultative process and also before the council of ICAI for adoption. ICAI has also suggested that MDP to start with, may be registered having partners with the members of ICAI, ICSI and ICWAI which may later be extended to the members of Bar Council, Indian Institute of Architects and Institute of Actuaries of India.

• Women Empowerment Initiatives: To provide the women members a medium through which they can explore suitable opportunities which provide part time jobs, jobs with flexi hours or jobs with work from home option, ICAI had launched a ‘Flexi Working Portal for Women Members’. Besides providing job opportunities, it also has important announcements of ICAI, details of events, success stories and articles by women professionals, and feature a section on health tips. This portal aims at serving the interest of women members and also enable CA Firms and industry to tap talent pool which might not be accessible otherwise in normal course. To make effective use of this initiative the members are required to post job requirement(s) having option to work part time or flexi hours on this portal (http://womenportal.icai.org/).

 

Campus Placement Programme: Campus Placement Programme provides an opportunity to the employers to interact with newly qualified Chartered Accountants peruse their particulars and recruit the suitable candidate in their organizations. The Placement programme is organized twice in a year in the months of Feb – March & August – September.

Campus Placement Programme, February- March, 2015 was organized at 20 centers.

 

§  The Highest salary offered for Domestic posting was Rs. 21.50 lacs Per Annum

§  The Highest salary offered for International posting was Rs. 30 Lacs per annum

§  The average CTC offered was approx Rs 7.25 Lacs Per Annum.     

§  Organizations like ITC, Jindal Steel & Power Limited, Tata Consultancy, Kalpataru Power Transmission Ltd, Reliance Ind Limited, Kirloskar Oil Engines Limited, Evolutionary Systems Private Ltd., Credit Suisse Services India Pvt. Ltd. etc. and many more participated in the Campus Placement Program.

 Campus Placement Programme-August, September & October, 2014 was organized at 19 centers

§  The Highest salary offered for Domestic posting was Rs. 17 lacs Per Annum

§  The Highest salary offered for International posting was Rs. 24 Lacs per annum

§  The average CTC offered was approx Rs 7.28 Lacs Per Annum.     

§  Organizations like Tata Consultancy Services Ltd., The Federal Bank Limited, ITC Limited, Barclays Shared Service Pvt. Ltd., ICICI Prudential Life Insurance Co. Ltd., Cairn India Ltd., Coca Cola India Inc., L&T, Marriot Hotel, Jindal Steel and Power Ltd. & Alghanim Ltd., Wipro Limited, Bharat Petroleum Corporation Limited, Genpact AIG, Bosch Limited, Reliance Industries Ltd., Engineers India Ltd., GAIL India Ltd., Indraprastha Gas Ltd. etc. and many more participated in the Campus Placement Program.

Campus Placement Programme, February- March, 2014 was organized at 15 centers. 

§  The Highest salary offered for Domestic posting was Rs. 21 lacs Per Annum

§  The Highest salary offered for International posting was Rs. 20.25 Lacs per annum

§  The average CTC offered was approx Rs 7.37 Lacs Per Annum.     

§  Organizations like Axis Bank Ltd., Blue Dart Express Ltd, CIPLA Ltd, Cognizant Technologies Services Pvt Ltd, CRISIL Ltd , Deutsche CIB Centre Private Limited, JET Airways ,TATA Capital Limited, TRIDENT Limited and many more participated in the Campus Placement Program. 

Students Initiatives

The ICAI has always been pro-active in designing education and training schemes so as to produce competent professional Chartered Accountants.  The ICAI is aware of the demands of  modern dynamic society and therefore the CA course is regularly updated and revised so that the  students should acquaint themselves with the latest in the fields of accounting, auditing, finance, IT and should remain ahead of times.   

·         Recognition by Renowned University and Institutes: The Gautam Buddha University, Uttar Pradesh has recognized Chartered Accountancy qualification for pursuing Doctorate of Philosophy (Ph.D.). Now, 106 institutions (99 Universities, 6 IIMs and IIT Madras) have so far recognized Chartered Accountancy qualification for pursuing Ph.D programme.

·         Stipend Doubled: In the latest move to serve the cause of students, ICAI has doubled the stipend. This initiative will provide a much-needed help to students especially from economic weaker section of society.

·         Committee for Review of Education and Training (CRET)- Accountancy profession has been keeping pace with changing times and advancements made globally in the fields of academics, technology and economics.  ICAI has been making a periodic review of the CA education and training schemes and examines its adequacy in the context of existing requirements and anticipated changes in the environment. CRET (Committee on Review of Education and Training) was constituted to make a comprehensive review of the entire structure of Education and Training Scheme for the Chartered Accountancy course. The CRET broadly focuses on five main areas, namely, Entry Requirement, Practical Training, Course Curriculum, Examination System and Accounting Technician Course. This initiative will go a long way in benchmarking CA education with the best in the world.

Following a multi-pronged methodology consisting of, holding meetings with academicians/ representatives of industries/ regulators, conducting survey of members, students, users of CA services  and academicians by means of questionnaires , undertaking detailed study of the system of education and training being followed by the leading Accountancy bodies and soliciting views and suggestions from stakeholders, the Institute drafted a Proposed Scheme of Education and Training for Chartered Accountants. The Revised Scheme was launched on July 1, 2015 during 66^th CA Day function at New Delhi.

• New Syllabus likely from 2016: With a vision that accountancy profession and accountancy education should constantly go hand in hand with global academic, technological and economic advancements, new scheme for CA Education and Training is ready for final consideration of the Council of ICAI. The new CA Course is likely to be announced from the year 2016. The whole syllabus for CA proficiency test to CA final has been minutely scrutinized and changes have been proposed to make the course more practical in approach to meet the requirements of today’s competitive market.

·         Reading Rooms: With a view to provide a conducive atmosphere to the students, who are coming from different sections of the society, the ICAI is encouraging branches to open more and more additional reading rooms and for this initiative the Institute will be giving them capital grant.  As on date, 125 Reading Rooms/Libraries are in operation across the country.

·         Online Answer Books: As a green initiative, students are now provided certified copies of their answer books in soft copies. Through a secure login identity and password intimated to them, they can visit the particular site and view their answer books at their convenience.

·         Online Correction Post-Submission: Even after submission of examination forms, students have another opportunity to correct the particulars online, i.e. at http://icaiexam.icai.org, including change of examination centre, group and medium, etc. This link called Correction Window will enable them to communicate online with our Examination Department for making corrections in the examination forms.  

·         Help to Differently-abled Students: ICAI has empanelled writers / scribes for differently-abled students in major cities approx 15 cities to begin with, effective with May 2014 examinations. A city-wise panel of 38 eligible writers/scribes is already there on ICAI website. Effective from November 2014, ICAI will soon extend the facility of providing computers to differently-abled students for writing their answers with suitable safeguards so as to avoid any possibility of its misuse.