Dear Professional Colleagues,
As we celebrate 75 years of Independence, it is a matter of pride that globally India has grown to become the 6th largest economy as per data released by World Bank. In fact, amidst the global economic turbulence caused due to pandemic, Indian economy relatively remained resilient and will be amongst the fastest growing economy globally in the years to come. Over the period it was impressive to note country's economic progress and our GDP has grown about 10 times in last 20 years. This is an indication that all our efforts are in right direction and inspires us to work with more enthusiasm towards meeting the aspirations of all citizens.
Our nation has slowly and steadily pushed ahead its reform-driven developmental agenda. The introduction of GST was one of the most important tax reforms undertaken post-independence powered by technology to make India into One Nation, One Market, One Tax removing layers of indirect taxes to provide a cleaner and refined indirect tax structure. The GST reform has not only increased revenue but also ushered in formalization of economy which will be immensely beneficial for the economy in the long run. With the experience gained changes are being incorporated on regular basis. The institute through its GST & Indirect Taxes Committee has worked in tandem with the Government and its constituents for its smooth rollout across the country by building a knowledge dissemination ecosystem to create awareness and capability. The Institute has worked with Government as enabling partner to improve the GST system through policy inputs and feedback from the stakeholders.
Accountancy profession has a significant role to play in the transition of economy from developing to developed nation. Chartered Accountants must lead the change beyond the traditional functions for professional growth especially the emerging opportunities arising in this transition. The government and its constituents should consider engaging the Chartered Accountants in various capacities for their knowledge, acumen and multifarious skillsets.
Let me present some of the significant professional developments that have taken place since my last communication:
Revised Guidance Note on Tax Audit under section 44AB
It is a pleasure to inform you all that the Direct Taxes Committee of ICAI has released the much awaited and thoroughly revised edition of its flagship publication 'Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961 - AY 2022-23'. The tax audit season is in full swing and I am sure the publication would guide our members in making the compliances under the Income-tax Act, 1961 effectively. This publication has been specifically revised keeping in view the amendments made upto Finance Act, 2022 and tax audit forms applicable as on date for Assessment Year 2022-23. The due date to furnish tax audit forms/reports for AY 2022-23 is 30th September, 2022 and I am sure our members would sincerely work towards meeting this deadline as they have always done in the past.
World Congress of Accountants (WCOA) 2022
The preparations for the upcoming World Congress of Accountants – 2022 are in full swing. We are getting phenomenal response and support from the International fraternity. Till date, delegates from over 75 countries have registered for this "Olympics of Accountants". Around 10 International bodies are supporting this mega event. The WCOA 2022 is an opportune platform to showcase the strength of Indian accountancy profession at global level. The Council had recently allowed participation of Indian CA Firms at WCOA 2022 to showcase the strength of Indian accountancy profession at global level. I would urge all members to take advantage of this opportunity to engage, collaborate, connect and network with world's largest conglomeration of accounting and finance professionals from about 130 countries.
I am sure that with collective efforts of all, we shall be able organize the event in a grand manner as well as enhance brand equity of India and Indian Chartered Accountants globally.
Driving Sustainability Agenda - ESG Roundtable
With the gaining momentum of sustainability across the globe, the ICAI through its Sustainability Reporting Standards Board is organising a series of ESG Roundtables for the Independent Directors (IDs) and the CFOs across India. You may recall that top 1000 listed companies are covered under BRSR framework. In this direction, First Roundtable was held on 2nd August, 2022, at Kolkata wherein Mr. D Badhopadhyay, Regional Director East, MCA and Mr. G Ram Mohan Rao, Regional Director, Eastern Regional Office, SEBI, delivered the keynote address. The second ESG Roundtable was organised on 23rd August, 2022, at Mumbai wherein Mr. Amarjeet Singh, Executive Director, SEBI, was the Chief Guest and the inaugural address was made by CA. (Dr.) Niranjan Hiranandani, Past President - ASSOCHAM, CMD, Hiranandani Group of Companies, and Mr. Hemant Gupta, Managing Director, BIL Ryerson Start-up Incubator Foundation. Both the roundtables were a resounding success and around 150 CFOs/ IDs attended and participated in the deliberations.
Social Audit Standards
ICAI has been working on drafting the framework for Social Audit and the Social Audit Standards on eligible activities for conducting social impact assessments. All the 16 thematic focus areas shall be covered under the social audit framework.
The social audit framework being developed by the ICAI broadly covers the basic principles and elements of the audit of impact reports of projects, programs and activities to be undertaken by a social enterprise listed on the Social Stock Exchange and shall act as a reference document to all the social audit standards.
The Institute has also initiated the steps for establishing a self-regulatory organization for registration of social auditors as envisaged in the SEBI's latest notification. ICAI considers it a privilege to be associated with the project and is making sincere efforts in timely roll out of social audit standards and other related matters.
ICAI International Research Awards 2022
This year, 'ICAI International Research Awards 2022' is being held on 15th October, 2022 organized by the Research Committee to recognize and honour the research scholars from across the world in the field of Accounting, Auditing, Economics, Finance and Taxation. The International Research Awards aims to recognize the research community across the globe and their contribution in fostering innovation and value creation. It aspires to build global research community by promoting research-based ecosystem, sharing learning and solving problems & stimulating debates and dialogues.
I am also delighted to inform that the ICAI International Research Awards this year has received the highest number of 148 nominations from 18 countries across the globe including Italy, Australia, New Zealand, UAE, France, South Africa, Sri Lanka, Nigeria, Oman etc.
Meeting the Stakeholders
I along with the Vice President ICAI CA. Aniket Sunil Talati had the privilege to witness the Country's move towards becoming a global financial services hub with the launch of International Financial Services Centers Authority (IFSCA) headquarters, India International Bullion Exchange (IIBX) and NSE IFSC-SGX Connect by the Hon'ble Prime Minister, Shri Narendra Modi in the GIFT City, Ahmedabad on 29th July, 2022. All these initiatives will empower India to gain its rightful place in the global financial markets. These developments augur well for the profession's future too. On the sidelines we got the opportunity to meet Dr. Bhagwat Kishanrao Karad, Union Minister of State for Finance, Shri Tarun Bajaj, Revenue Secretary, Shri Injeti Srinivas, Chairman, IFSCA, Ms. Madhabi Puri Buch, Chairperson, SEBI and Mr. Ashish Kumar Chauhan, MD & CEO, NSE wherein deliberations and discussions were held to work towards developing India into a global financial services powerhouse and matters related to development of the profession.
We also had a meeting with Ms. Anna Shotbolt, Deputy Trade Commissioner for South Asia, British High Commission who visited ICAI on 5th August, 2022 to discuss way forward on working together and exploring the opportunities to collaborate under the India – UK Free Trade Agreement.
I along with CCM CA. Ranjeet Kumar Agarwal met the Hon'ble Governor of West Bengal & Manipur Shri La. Ganesan on 24th August, 2022. He has kindly consented to be the Chief Guest for the Bhoomi Pujan Ceremony of Centre of Excellence, Kolkata on 4th September, 2022.
ICAI MSME Yatra
The MSME Yatra, an initiative of the ICAI's Committee on MSME and Start-up was flagged of on 18th August, 2022 by Shri Narayan Rane, Hon'ble Minister of MSME in Mumbai as swift responder to MSME needs. The programme aims to coordinate, synergize and leverage the various elements of excellence driving innovation and entrepreneurship & wishes to facilitate the creation of ideas and inventions that benefit MSMEs. The MSME Yatra is a 75 day programme which will conclude on 18th November, 2022 and will cover more than 14000 kms covering cities across India to showcase the MSME ecosystem. Further programmes will be held for knowledge enhancement of the MSMEs on the designated days.
MoUs for Capacity Building and Developing Co-operation
The Institute through the Committee on MSME & Start-up has signed an MoU with the 'Facilitating MSMEs Tamil Nadu', Government of Tamil Nadu at Tirupur on 25th August, 2022 for the capacity building of MSMEs in the State of Tamil Nadu. The MoU was signed in presence of Hon'ble Chief Minister of the State of Tamil Nadu Shri M.K. Stalin during the Regional MSMEs Meet.
Another MoU has been signed by the ICAI through the Career Counselling Committee with the School Education Department, Mizoram, Government of Mizoram for a tenure of 5 years for promoting commerce education and providing career guidance alongwith promoting CA Course amongst Government and Government aided Secondary and Higher/Senior Secondary school students in Mizoram. School Education Department, Mizoram welcomed the initiatives taken by the ICAI for the students of Mizoram and assured full support to ICAI for fulfilling the objective of MoU. The Chief Guest of the programme was Dr. Lalzirmawia Chhangte, IAS, Secretary, School Education, Mizoram. The ICAI has always been very receptive towards the requirements of the students of the North-Eastern States. A concession of 75% in registration course fee for all levels of CA Courses for the candidates/ students from North- Eastern States is already permissible. This MoU with Mizoram State Education Department at the initiative of the Committee on Career Counselling of the ICAI is a step forward in the direction of ensuring that true potential of students belonging to Mizoram is duly recognised.
CABF - Empowering the Helping Hand
The Chartered Accountants Benevolent Fund (CABF) scheme since December, 1962 has been extending economic help and support to the ICAI members and their dependents at the time of crises. The fund enables us to help our members through collective support from each other. During the COVID pandemic the CA Benevolent Fund has been very helpful to provide requisite support to our members. Since September 2020, about Rs. 17 Crores have been released as Financial Assistance for treatment of CORONA and also through one-time Ex-gratia/ Monthly/Medical financial assistance to members or their dependents.
However, the present corpus needs to be substantiated, so that continuous assistance could be provided to the families of needy members. It is an appeal to all the members to contribute generously for this noble cause. A dedicated portal https://cabf.icai.org/ is available to provide all information and support at a single window.
Let us all come together to build a huge CABF corpus, so that help and necessary support could be provided to our members in times of despair.
Bye-Election, 2022
The bye-elections to the 25th Council from Western India Regional Constituency are scheduled to be held on 16th and 17th September, 2022. In order to conduct the election 196 polling booths have been set up in 105 cities. I would request to all my eligible professional colleagues in the Western India region to exercise their right to vote.
In Conclusion
Over the years our profession has carved indelible impression amongst the stakeholders. Today our profession commands respect and trust which is gained with continuous learning & performance. In building our brand and legacy of trust, the role of teachers has been phenomenal. We must take opportunity to thank our teachers on this Teacher's Day i.e., our parents, teachers, principals and mentors who have with their guidance shaped our character and nurtured us to excel in all our pursuits in life. The Father of the Nation Mahatma Gandhi had said "I have always felt that the true text-book for the pupil is his teacher."
Our Hon'ble Prime Minister in his Independence Day speech stated that to make India into a developed nation by 2047, we must follow the "Panch Pran" or the five pledges. The Institute would support these initiatives in the interest of national development. Our profession has evolved itself into a position of strategic leadership growing beyond its traditional domain to create value across the economic value chain by continuously innovating itself with the times to build a legacy of trust, excellence, independence & integrity.
I conclude with the words of Dr. A.P.J. Abdul Kalam: "India has to be transformed into a developed nation, a prosperous nation and a healthy nation, with a value system."
Let us all work together towards achieving our dream of transforming India into a nation of our dreams.
CA (Dr.) Debashis Mitra
President, ICAI
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