Dear
Esteemed Colleagues,
Change is the only thing that is constant. It is
this continuity of change change with the times
that has kept our profession in a leading position in
And as I write this, the nation and our profession are
grappling with
Friends, there is a wrong impression in certain
quarters that the Institute is slow in taking deterrent action against
defaulting members. On the contrary, the Institute has been most prompt in
taking punitive action against its errant members. In fact we have been most
stern in punishing members for any violation of the code of conduct. An idea of
how severe the Institute can be had from the fact that in the last three years
itself, it has awarded punishment to more than 100 members. The Institute has
painstakingly tried to ensure adherence to a code of conduct by all its
members.
Let me reassure you that I and my colleagues in the Council are committed to
keep that track record unblemished by giving exemplary punishment to all those
who may be found guilty in the Satyam episode after expeditious investigations.
We have initiated a range of steps and have embarked on extensive and timebound investigations, in sync with a concerted drive by
various Government agencies and regulators to bring the guilty to book. Our
first and foremost task, I need hardly say, is to restore and sustain
confidence of the society in our profession.
Our credibility is at stake. Its time for all
our members to be extra-vigilant while delivering our services and performing
our duties, particularly in the backdrop of Satyam fiasco, which might change
the relationship between the auditors and the managements in the years to come.
We need to re-prove our worth as the backbone of Indian financial system and
justify the epithet of being the conscience keeper of Indian economy.
The Satyam fraud is a wake-up call to all
members to meet the biggest challenge posed to the profession. The society
expects that the financial statements once certified by the auditors are true
and can be taken at their face value and we must all endeavour
to restore that faith in the profession.
Training to Articled Assistants
The present troubled times also bring into focus
the strong need for quality article training, which is the key to a strong
accountancy profession. In these times of high expectations, globalization and
the fast-increasing number of articled assistants, the practical training of
articled assistants has to be taken far more seriously than ever before in
order to maintain high standards of probity and excellence. Its
high time that members/principals rose to the occasion and gave extra attention
to groom the CA students who work with them into complete professionals of
integrity and ethics. Members need to act like mentors, as friend, philosopher
and guide to the CA students and give them the best training they can. The
practical training needs to be meticulously planned and implemented in such a
manner that the trainees get exposed to a variety of professional activities,
circumstances and business environments.
Let me now share with you some of the other
major developments pertaining to our profession over the last one month.
MoU with CPA Australia Recognizing Each
Others Qualifications
All through my tenure my earnest endeavour has been to ensure that the international
presence of ICAI and Indian Chartered Accountant is more widespread and strong.
You would recall that in the month of November, 2008, we had signed a historic MoU with ICAEW recognizing each others qualifications. Now
an MRA with CPA Australia has also been finalized and by the time this issue of
the Journal reaches you, the same would have been signed.
As per the Memorandum of Understanding reached,
members of ICAI who are graduates will be eligible for CPA Australia membership
on passing one paper on Business Strategy & Leadership. On the other hand,
members of CPA Australia will be eligible for ICAI membership subject to
passing two papers on Corporate and Allied Laws and Taxation and two more
papers on Advanced Auditing and Professional Ethics and Financial Reporting, if
they have not already passed them as part of the CPA Australia programme.
This MRA will open professional opportunities to
our members in
As part of our effort to popularize Indian CA
qualification in countries of interest to Indian accounting profession, ICAIs proposals for the institutionalization of the
accountancy profession have been well received by
In yet another major capacity and credibility
enhancing initiative for members associated with Information Systems Audit, we
have formally signed an agreement with Information Systems Audit and Control
Association (ISACA). Now our members can freely access and make use of internationally
accepted standards, guidelines and procedures of ISACA. It will not only bring
increased global credibility, goodwill and acceptability of our DISA
qualification in carrying out IS Audits but also facilitate active
participation of our members in further research that is being conducted by
ISACA for development of IS Audit standards.
However, some other important tasks on my
international agenda have remained unfinished. These include formation of
Chapters of the Institute at
The Institutes Gift of a Free
Accounting Software
Friends, ours is an accounting Institute and I
have always wondered what is the best gift that an accounting Institute like
ours could give to the world. Accordingly, I conceived the idea of giving
accounting Software to the world that can be downloaded by anyone anywhere
absolutely free of cost. Being an accounting Institute, it is our
responsibility to make available all tools that are required in accounting and
auditing. I am glad that we have been able to develop the first version of such
accounting software. It has been officially launched and is now freely
downloadable from the ICAI website by any user. The software is the first of
its kind. It is a web based, easy to use, with the help of which the end users
will be able to maintain their accounts online. It can operate as a single user
license on a desktop computer for a small timer. If deployed on a web server,
it can meet the financial accounting requirements of the corporate sector as
well.
The initial version of the software will contain
core modules. This software will also serve households that use accounts
payable type accounting transactions, managing budgets and simple account
reconciliation. Our accounting software would be different from other
accounting softwares, as it will be web-based, that
will offer the facility of viewing of accounts online from anywhere/ anytime
and having accounts in any currency of the world.
The Institute will be releasing advanced
versions of the software from time to time and in due course it will ultimately
meet even the most complex and expensive business accounting software
requirements which are normally a part of an extensive suite of software often
known as Enterprise Resource Planning or ERP software.
I may add that work on developing free downloadable
auditing software for small and medium practitioners is also on and we should
be in a position to launch it soon.
You would recall that I had envisaged an
accountancy museum with a rare collection of objects of historic and heritage
value from the point of view of the accountancy profession in
The museum presents rare and historic images
(evidence of the oldest balance sheet in human civilization), and documentary
evidence of the evolution of accountancy in
Digital Library
I am happy to inform that all the five Regional Council
Libraries and the Central Council Library of the Institute have been brought on
an Enterprise Library Software, facilitating access to all libraries
simultaneously. This facility will also provide links to online journals,
e-books, articles from The Chartered Accountant journal, library security
deposit rules, library services for members & students, photographs
available in the library, recent additions and SAFA books & publications
available in the library and much more. Log-in facility for members and
students will provide search and access to user account with the additional
facilities like alerts etc. It will also facilitate easy and speedy
correspondence with the library on a regular basis. This e-Library is
accessible from e-Library link hosted on www.icai.org.
Portal for Members
With a view to facilitate better networking
among practicing members and to ensure optimum utilization of their services
and expertise, an exclusive portal has been launched for them wherein the
practicing members can offer one area of their service that may be availed of
by other practicing members. The portal will cater to both the overburdened
members who are looking for specialized helping hands among our fraternity as
well as those who are looking for professional opportunities. This portal
offers an easily accessible and mutually beneficial contact point for the
entire CA community. I foresee a great boost in networking and professional
opportunities for members in practice through this portal. Lets remember that
coming together is a beginning, staying together is progress, and working
together is success.
Centres of Excellence
In my first communication to you in the March,
2008 issue, I had shared with you my dream of having Centres
of Excellence throughout the country to make the CA a world class, matchless
professional. I am happy to say that as part of that drive, a Centre of
Excellence in
You will be happy to know that work on Centre of
Excellence in Jaipur is continuing apace. Further, we
have also acquired land for a Centre of Excellence in
Convergence with International
Ethical Standards
As part of our drive to continue to benchmark
ourselves against the best available global practices and explore the
tremendous opportunities on the horizon, we have adopted a new Code of Ethics
which is in line with the IFAC Code of Ethics. I am sure this move will go a
long way in boosting the stature and brand of Indian CAs
and help in his/her transformation into a Global Chartered Accountant. Across
the world, it will also help showcase Indian accountancy profession at a higher
pedestal of professional excellence. In a related move, our Committee on
Ethical Standards has been reoriented and re-organized as Ethical Standards
Board to facilitate greater transparency and participation of other
stakeholders ministries, regulators etc, in the relevant standard-setting
process.
Examination Results Set Welcome
Trends
The results of Common Proficiency Test (Dec.
2008) and Chartered Accountancy Final Examination (Nov. 2008) have been
excellent and have set some welcome new trends.
A total of 34,251 students (38.37%), including
11,588 girls cleared the CPT out of a total of 89,253 who appeared for it. The
analysis of CPT results over the years shows that since 14th September, 2006
when the new scheme of CPT was introduced, within a period of about 27 months,
about 3.8 lakh students have opted for CA Course out
of which more than 1.55 lakh students have passed the
CPT examination. Thus, there has been a substantial increase in number of
students as compared to years 2001-2005 when an average of 35,000 students used
to get enrolled for articleship. There is also an
increase in the number of girl students opting for CA course
30.96% (27,637) of total 89,253 students who took the latest CPT
were girls. Moreover, the performance of girls has also been better than that
of boys with an impressive pass percentage of 42% as against 37% of their male
counterparts.
In the CA Final examination, 20.27% (2961) of
14,606 students who appeared for both groups have passed while 18.76% of a
total of 6588 students cleared Group I and 21.13% of a total 9235 have passed
Group II. A welcome trend is that there has been an increase of more than 25%
in the number of students appearing for the Final examination as compared to
November, 2007. The percentage of female students too has continued to rise
over a period of time. Out of total 30,399 students that appeared for Group-1,
Group-II & Both Groups in November, 2008, the number of female students was
7189, i.e., 23.64% of the total students as compared to 23.04% in May, 2008.
Not only that, female students also continue to excel in their performance in
CA examination and they have bagged two out of the first five positions.
I congratulate all those who have passed the
examination. My special compliments to the rank holders.
Initiatives for Students
You would appreciate that all through my tenure,
I have tried to ensure that CA students and their welfare get special attention
in ICAIs overall scheme of things and they are
provided with an enabling environment that helps them not only in their
academic pursuits but in the development of their overall personality as well.
As part of that mission, it has been decided to develop sports/gymnasium and
health check-up facilities for students at every branch of ICAI. This, I am
sure, will prove to be very beneficial to them. The facilities so developed can
also be made available to members as is being done for computer labs.
Further, with a view to giving a distinct
identity to CA students and to inculcate a sense of belonging among them, it
has been decided to give a facelift to the dress prescribed for them. Now, CA
students will be encouraged to wear a blazer of a colour
slightly different from the blue recommended for members with a prescribed
lapel pin sported thereon. The lapel pins, whose photographs were published in
January, 2009 issue of the journal, have been made available at all the
decentralized offices of ICAI and are meant to be given free to the students at
the time of their registration itself.
I Bid Adieu…
Friends, as I prepare to pass the baton of ICAI
leadership on to my successor, I can modestly say that many of my initiatives
have borne fruit. You will, I hope, agree that ICAI is today a more robust,
developed, energetic and futuristic organization. I am happy to recall that
during the year when I had the privilege of leading the onward march of ICAI,
it has not only grown bigger and better but has also paved the way for a
brighter tomorrow for the profession. Barring the unfortunate Satyam episode,
there has been a phenomenal rise in the status, prestige and image of ICAI in
the public eye.
When I took over the reins of the ICAI, I had a
mission within the ultimate vision of excellence and I am proud to say that we
have accomplished most of that mission. ICAI has hit several milestones and
overcome several challenges with the spirit of a true partner in nation
building. Friends, I have tried to go faster, and have tried to speed things
up.
When I look at the infrastructure, the Centres of Excellence at
The branches are the extended arms of the
Institute and in order to strengthen these branches a number of steps have been
taken to ensure better infrastructure. Out of total 118 branches, 63 branches
have their own buildings; construction is on at 14 branches; and the process of
acquiring land is on in at least 18 branches. Further, each of the branches is
being provided with a generator set. Seventy-three of them have their own
websites. Six overseas chapters also have their own websites. The e-mail
facility that was started during this year has been made use of by more than
58,000 members and students.
Chapters have got their own computer labs
besides 16 computer labs at regional headquarters for imparting top rate
information technology training to students as well as members. At the same
time, the process of setting up more computer labs and expanding the capacity
of the existing labs and starting the advanced information technology training
for final course students is on. These labs, besides imparting training to the
students and to members who are not computer savvy, have also helped in
conducting the on-line examination for CPT. Now the plan is to hold CPT
examination on-line every month starting from the month of March, 2009.
The three-month residential programmes
for students have been started at
The Board of Studies has been expanded and subjectwise departments have started working. My desire was
to bring it to completion during my tenure, but because of the delay in the
construction of the Noida building, it is likely to
take another six months. I am hopeful that this process will be completed next
year and we will be in a position to have a full-fledged Board of Studies
having specialized wings for each of the subjects.
The launch of Accounting Technician Course and
granting Accounting Technician certificates to students who could not pass the
CA final examination, conducting examination on alternate days to make
examination schedules less stressful for students, and holding convocations to
help forge a bond of camaraderie among new members were some of the new
initiatives which we were able to accomplish during this year.
In tune with the emerging requirements of
globalized economy and the need for specialized professionals and also as a
futuristic move, we have been able to start 10
certificate courses in various spheres this year. The response of the members
to each of these courses has been very encouraging. I am quite confident, that
over a period, the Institute will be in a position not only to run all these
courses in all major cities, but also come out with many more certificate
courses.
To ensure that the students that we produce have
an all-round development, various initiatives were taken during the year by
organizing extra curricular activities. These include the National Debate
competition, National Sports competition, National Cultural competition and
creating health awareness. Many more of such activities need to be started for
the all-round development of the students.
Similar activities for members have helped in
creating a bond not only among them, but among their families as well. This
year 2008-09 which is being celebrated as the Diamond Jubilee Year, a special
focus was put on reaching out to the society and many initiatives were taken
including a host of programmes. As part of this
effort, the Institute was able to invite the top leadership of the country like
the Honble Prime Minister, Honble
Corporate Affairs Minister, Honble Finance Minister, Honble Deputy Chairman, Rajya Sabha and a host of Governors, Union Ministers, Chief
Ministers and other dignitaries. Besides, we launched ICAI National Service
Scheme to contribute our mite to socially relevant areas and to bring the
profession much closer to the society.
Besides, as part of our social responsibility, we made significant progress in
giving our support to the Government, both Central and State, in public finance
and Government accounting. I am confident that in the years to come, our core
competence in these areas will go a long way in ensuring better management of
public finances and improving transparency in Government accounting.
An area which is very close to my heart is the
creation of professional avenues and opportunities for members who have
qualified the ISA course. I must admit that despite my best efforts, much
progress could not be made except the signing of MoU
with ISACA. This, I believe, will help complete this process. But we need to do
a lot more here, which include providing hands-on experience in a live
environment with the service users. There is also a need to bring close
proximity between such qualified members and users of ISA service.
As the premier accounting Institute, it is our
responsibility to carry out research on accounting and related subjects. Though
some initiatives were taken in this direction during the year, I must admit
that the progress has not been as much as I wanted it to be. There is an urgent
need to identify research scholars and encourage them to work in the area. ICAI
needs to come out with research documentation one after the other so that it
becomes one of the leading institutions in fundamental research. We also need
to do research in teaching accountancy and related subjects through distance
education.
On the front of creating a sense of belonging
and making the CA fraternity a close knit family, various steps were taken
during the year. These include increased communication by providing e-mail
facility, improved website, updated information and improved online payment
system. These efforts have certainly helped in bringing back many of those
members who have not renewed their membership but there are still a large
number of persons, who were members at one time, but have not renewed
membership. We need to do a lot more on this account so that we can say with
pride that each person who has qualified as a Chartered Accountant from this
Institute is a member of the Institute. Besides, there is still a lot of scope
in improving the behavioural response in the service
to be provided by the Institute to its members and the students.
I believe that with every rising sun, you rejoice at a journey that has begun.
And with every setting sun, you rejoice at the victories that you have achieved
and the paths that you paved for victories the next day. We have indeed come a
long way, but I must admit that I have not been able to accomplish as much as I
wanted to. There are still miles to go, still many more promises to keep. As
such, these accomplishments cannot be final. The pursuit of ultimate excellence
is an ever-going journey for the Institute and the profession. I am sure my
successors will not only finish the unfinished agenda but also take up new
ones, set new goals, make fresh starts in newer areas and achieve newer
milestones in times to come.
Friends, all this would not have been possible
without the active support of my colleagues in the Central Council, Regional
Councils , branches and officers and staff of ICAI, who, more often than not,
have burnt mid night oil with me, some time working as late as 3 AM. I humbly
and sincerely thank all of them. I also express my gratitude towards past
presidents and other well wishers for their encouragement and support.
As I sign off as President of ICAI, I feel
overwhelmed by the affection showered on me and the confidence reposed by all
of you in me. This has been the source of my strength and has energized me to
work aggressively for the cause of the profession. And it has earned for me a
unique relationship with all of you and with all our students, something that I
will cherish for the rest of my life.
Adieu!
CA. Ved Jain
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