REFERENCE : MEMORANDUM ON ISSUES CHALLENGING THE PROBLEMS WITH SOLUTIONS THERE OF, SENT TO PRESIDENT ICAI ON 17TH JUNE, 2013
https://www.casansaar.com/news-detail/Memorandum-to-the-President-of-ICAI-on-some-of-the-issues-challenging-the-Profession/4319.html
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REVIEW OF THE OUTCOME OF THE VISIT OF PRESIDENT AND VICE PRESIDENT AT FARIDABAD BRANCH ON 19TH JUNE, 2013.
As informed earlier to the members; a Felicitation function was organized by the Faridabad Branch on 19-6-2013 with “2 free CPE hours” with “free dinner.”
Despite these free offers, Branch could not attract members to “enjoy” free food with free CPE hours. A conference hall with a capacity of 150, could hardly “retain” 40 members (apart from Branch/NIRC office bearers) till the conclusion of speech of our leaders ,whereas the total strength of members is more than 1600 and students are 10000 plus at Faridabad. This “poor presence” is alarming to the occupants of higher position of power to rethink before they go to other branches. In clear words; members are no more interested ,rather ready to bear such “chaplusi”, flattering/buttering type of programs where the Branch/Regional Council office bearers and the people sitting on the top of the power, praises each other, the actual result of which is, NIL, towards service to the profession. Some one has rightly said ”Self praise is no recommendation”.
It also shows the “home work” of the branch office bearers and their “vision” while conducting such programs. A clear message is: A qualified member is not interested in such functions until professional issues are resolved.
During that visit of the President and VP; members and students wanted an open discussion on various issues with them, but we are sorry to say, both our President, VP, NIRC Chairman, three CC members, and 5 NIRC members, remained silent, when despite admission of the Branch, to give us a chance of interaction with the President and to submit the memorandum, Branch did not call us. Perhaps the occupants at higher position of power,do not have courage or do not want to face the members and the students. Then the simplest question is: For whose sake they organize such programs?
If our President and VP have to make one way communication; then where is the need to call them at branches/Regional Councils Their monthly message in the ICAI journal is more than sufficient.
Our group request our worthy President and VP to think with vision: What is important for them……. few garlands, bouquets, few “forced” claps of organizers or to know the ground realities of the profession for which they are committed to the Institute and its members.
We hereby wish to convey them that many members are ready to support them if they are “really interested” in giving “due credit” to their contribution not only in words but in writing as well. This will bring enthusiasm in the members to do good things for the profession. Whenever any suggestions have been sent by common member so far in the history of more than 60 years; it has not been “duly” acknowledged by the Council and whenever fruits have reaped due to actions based on such suggestions; full credit has been taken by them. The names of committee members are printed beautifully every time even if their “actual” contribution is not remarkable. If they simply visit some branches; wonderful photographs are printed in the newsletter without publishing the details what so wonderful “happened” during their visit. Despite all these facts, our group is not so “interested” in fake name and fame. Instead our group members are interested in get work done based on members suggestion even if credit be taken by the top members.
One interesting thing was noticed:
It was a great surprise for us, when without any introduction, our President and VP; recognized us by name; may be due to efforts of our group. They may also be aware of names of other group members. After having an interaction, we realized that indeed both our President and VP are thorough gentlemen and down to earth persons.
VICE-PRESIDENT ADDRESS:
Our Vice President CA K Raghu is a technocrat. Accordingly in his address;, he shared many IT initiatives undertaken by ICAI, which includes e-learning, web-cast of CPE programs, connecting all the branches through CC TV cameras to have control on the branches and many more. He also shared statistics of number of members, number of students, status of ICAI as second largest accounting body and pointed out that out of 2.30 lacs CA’s, half are in the age group of 35 years. No doubt this statistics give us the reason to feel proud. We congratulate our VP for such initiatives.
On the front of professional opportunities he stressed on specialization and networking of the firms. He also made members aware of 13 Post Graduation CA courses in different stream. He also said there is no shortage of job in India but members prefer overseas job only.
(We do not agree with this statement of VP. Further he could not “convince” how post graduation CA courses will help in creating professional opportunities).
Introduction of technology is a welcome step in the current scenario and it is the need of the hour. We congratulate our VP for such initiatives with a rider, please arrange seminars in the branches to make the members aware about these facilities, some of the members may be aware about these but do not know how to utilize the same. Even we tried to view a CPE program on service tax on construction industry on 20-06-2013, but could not see the same, due to technical reasons.
Being VP, this is the year for him, to familiarize himself with the major challenges before the profession: 1. Increasing unemployment and 2. Lack of professional opportunities for common members. ICAI has to pursue the policy framers/regulators - why for a particular work there is a need of a Chartered Accountant.
It seems, he has not gone through the contents of the memorandum sent by us, may be due to paucity of time. We request our VP to kindly have a look at the memorandum. However; he appreciated the “exercise” of the group: CAUSE OF CA. Our group extend heartily thanks to our VP for acknowledging the efforts of our group. We assure our worthy VP, if at any point of time, our suggestions are required, we are ready for the same.
PRESIDENT ADDRESS:
Our worthy President started his speech addressing members of the branch and soon after that; acknowledged our group’s efforts in preparing the Memorandum. This acknowledgment by our worthy President is a slap on the face, of those, who says our group is spreading negativity.
Then he quoted a famous Danish proverb:
“The gem cannot be polished without friction nor man be perfect without trials.”
For the next one hour or so, our worthy President discussed many issues raised in the memorandum. We are thankful to our worthy President, to come with full preparation.
Here we would like to mention that we got a lot of help and guidance in drafting this memorandum from another group member CA. Surendra Rakhecha from Surat. We would also like to acknowledge efforts of all other group members, across the country for giving valuable inputs and suggestions, for this memorandum.
Our President acknowledged there are some problems on employment front for which falling GDP and increasing fiscal deficit are the main reasons. We agree with our President to a certain extent. But he was having no answer on the ICAI initiatives “how to maintain the demand and supply gap to tackle this situation”. Several suggestions were given in the memorandum including, (a) making entry tough to CPT, like IIT and CAT (b) suspension of giving grace marks till the economy improves (iii) reforms in examination system etc.
As per current scenario of falling GDP and increasing fiscal deficit; cost reduction is required at every front to give more value to the stakeholders and face competition. Looking to the importance of cost control and cost reduction; recently the Government has given “more powers” to the Cost Accountants. The ICAI office bearers may keep this in mind to convert the threats into opportunities. Chartered Accountants are well known to do so.
On education and training front, like any true sales man, our President advocated our product is the best; manufactured with best quality controls. We again request our President to kindly have a re-look on this issue. There is a lot of scope for improvement in curriculum, practical training, examination system and post qualification courses. He also disappointed us on ICAI initiatives for conducting quality coaching classes including exploring possibility of virtual classes.
He stressed and advised all the CA students to have full exposure during articleship of the various subjects from Audit to Taxation. On this aspect to lot of suggestions were made towards changing of eligibility criteria of a member to train the articled clerks from number of year’s practice, to other factors like other staff strength, receipts of the member. If this criteria is changed, we are sure students will get quality training, and dummy articleship issue will be solved to greater extent.
He agreed there are some problems on bank audit front, due to various stakeholders’ interest but he assured of full efforts to get back the limit to Rs.6.00 crores. Our President discussed increase in concurrent audit fee on the front of professional opportunities, but was not having any answer why concurrent audits are not allotted through empanelment, as in the case of statutory audits. Why one firm one concurrent audit principle is not followed? Everyone will be shocked to learn many regional council members are having 30-40 concurrent audits with their associates. Our group would like to welcome, that if like our MP’s, our Council and RC member, also declare their bank audits, government sector audits, Corporation Audits, (other than the CAG audits), every year, during their tenure as CC/RC member.
We did not hear a single word on CPE reforms from our President. It seems some “internal political compulsion” is there in introducing CPE reforms, for which we suggested, conducting more and more workshops, strict compliance of CPE guidelines by Branches and POU’s, giving free CPE seminars to all our youngsters for some initial years of their practice.
On tendering issue, our President apprised us that with liberalization the tendering process cannot be stopped. However he assured to take action against members who quote too low fees. We welcome this step on the part of the ICAI.
We were eager to hear achievement of action plan of 2012-13, stage of progress of that plan, but we were disappointed on that front also.
Our worthy President’s did remarkable job by disposing off the Disciplinary cases, some of which were pending since more than 25 years,. He stressed on the need of self regulation. However; he did not touch upon ICAI action to enforce guidelines of ICAI in respect of ceiling on number of audits, in respect of dummy COP and action on members violating this. Self regulation is good, but at the same time we should not forget if no action, rather timely action is taken against the members, committing the professional misconduct, NFRA like situation takes place.
We requested our worthy President, to cover the communication gap, between the members and the CC, and to have transparency, council decisions be conveyed to members, though suitable mechanism. Our President assured us to look into this aspect.
At the end; of his speech, our President stressed on more and more suggestions from members and students through e-mails. He acknowledged that 32 council members, requires active support of 2.20 lac family members of CA Pariwar. He also acknowledged that it is member’s participation, with makes a program successful and Branch or Regional Councils are nothing with out active participation of members. He designated himself as custodian of funds of ICAI, which belongs to members and students. For Faridabad Branch he promised release of funds for completion of the branch building. We are sure, no special favour will be given to our Branch and our branch eligibility for funds shall be treated with the eligibility of any other branch, as per the rules/regulations of the ICAI.
We want to assure our worthy President/VP that our group has full faith in their able leadership and always ready to give suggestions provided these suggestions are taken in good and positive spirit. You will find many members, with so many practical solutions, if you have more and more open house and interaction with the members, during your felicitation programs, rather these “chaaploosi” type programs.
In the end we would like to share famous quote of - Martin Luther King Jr.
The true measure of a man is not how he behaves in moments of comfort and convenience but how he stands at times of controversy and challenges.
Best Regards
CA. Deep Jain
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