My Dear Professional Colleagues,
The herald of the Festive season, Navarathri and Durga Pooja brings in lot of mirth and happiness. My good wishes to all of you and your families for health, joy and happiness..
September 11, 2009 was indeed a path breaking and significant date, when for the first time in the history of our Institute, even for that matter in the annals of the history, the Hon’ble Minister for Corporate Affairs, Mr. Salman Khurshid addressed our Council at New Delhi and more than that, spent considerable amount of time clarifying and assuring that Government was seized with the several issues facing the profession, particularly the name change of the Institute which he clarified to the press, has lot of support from Government. This has given a new life and will bring cheers to the members, as this has been pending for quiet some time due to several reasons.
The Companies Bill 2009 which has some anomalies to the provisions on Cost Audit has been refereed to a Parliamentary Committee for a reference. The Council is taking all steps to safeguard the interest of the profession.
It is planned to have discussion groups to elicit opinions and present the same before the Parliamentary Committee. I personally urge upon the members to devote time and thoughts to offer suggestions to the Institute to strengthen our efforts.
The Profession is eagerly awaiting the implementation of the recommendations of the Expert Group on Cost Audit. The Institute will organize seminars at different centers and invite leading policy makers to percolate the issues contained in the Expert Group Report and get endorsements to facilitate acceptability of the report for Implementation.
Wherever I went and met the members, there is a new enthusiasm and assurance that the profession is moving to get the best out of the opportunities borne out of the slowing down of the economy. Already India has responded well with growth in the manufacturing sector triggering all round revival. The Infrastructure Industry is well poised to meet the massive demands arising out of holding the Commonwealth Games in New Delhi. Massive investments and new facilities are in the offing and this will be the biggest event taking place after the Asian Games in the 1980’s. This event gives a big growth to Indian tourism and hospitality sector which will contribute further growth.
Well economic growth is all ways related to global events and focus on demands. I would consider 6th Commonwealth Games 2010 as a blessing in disguise to lay the road to recovery.
The Institute’s core competence lies in its ability to upgrade the knowledge of the members to scale newer heights in our specialized area of Management Accountancy. This can be achieved by setting new standards and meeting the requirements to set higher levels of Competence. The Cost Accounting Standards Board has finalized for release two of the CAS which were in the pipeline, the one on ‘Employee Cost’ and other on ‘Cost of Utilities’. Two more are being finalized shortly. In addition, two Exposure Drafts have been released and I am sure members will respond well to these releases. With this I am confident shortly ICWAI would have completed 12 Cost Accounting Standards which will strengthen Cost and Management Accountancy.
The Quality Review Board of ICWAI (QRB) is taking several measures to improve the Quality of services rendered by Practitioners, and towards this the Institute will be addressing a response sheet, to all the members in practice, soliciting certain basic information, which will pave the way for a plan of action in the future. Members in practice are requested to provide the information when called for, and ensure we build up a strong profession to face the challenges in the future.
I am glad to inform you that recently the Karnataka Government has recognized the Cost Accountants also in corporate VAT Audit by amending Karnataka Value Added Tax. The Government is releasing the amendment of Rule 34 (Third Amendment Rules, 2009). We are extremely grateful to the Hon’ble Chief Minister of Karnataka, Shri B.S. Yeddyurappa for recognizing Cost Accountants to shoulder this responsibility.
A happy news to our practitioners about new area which is being opened for Cost Accountants in setting up of certified filing system under ACES by Director General (Systems) and Audit, New Delhi. I am sure, with the recognition of Cost Accountant to set up this filing center about one lakh Central Excise and fifteen lakh Service Tax assesses, registered with the department will be served in filing their various statutory returns on monthly, quarterly, half-yearly, yearly etc with the Central Excise and Service Tax departments. You will have more information about this shortly.
We had an occasion to meet CVC and represented that our profession will be in a position to help banks and financial institutions to get the valuation of inventory as well as related party transactions, certified by our members, before lending any money to the borrowers. We will be pursuing with some more information so that our profession would be recognized to render this important service to the nation in safeguarding several crores of losses to the banks.
The Indian Institute of Corporate Affairs (IICA), an institution wholly owned by the Ministry of Corporate Affairs, Government of India had invited me recently for a discussion among the heads of professional bodies and experts from CII, FICCI, ASSOCHAM, ICWAI, ICAI, SEBI and various big firms to discuss on Due Diligence by Auditors during company audit. The points of ICWAI were well received in the forum and we have lot of opportunities to contribute to IICA.
Once again wishing you all the best for the coming happy Pooja Days.
Regards
(GN Venkataraman )
President
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