DELHI, FEBRUARY 17 :
THE availability of essential financial information
about a company to its shareholders and other stakeholders in accordance with
internationally accepted financial norms is considered as an integral and important
part of good corporate governance.
ensure this and to implement the G-20 commitment to achieve a single set of high
quality global accounting standards, the Government has taken a decision to achieve
convergence of Indian Accounting Standards with IFRS in a phased manner beginning
with April, 2011 in accordance with the roadmap suggested by Core Group and Technical
Groups set up by the Government.
commitment to the policy of 'convergence' of Indian Accounting Standards with
IFRS would allow it to consider local economic conditions and environment while
preparing converged accounting standards, thus duly and adequately safeguarding
the interests of Indian companies/enterprises.
The convergence with IFRS would provide reliable and comparable financial information
to investors globally. Such converged accounting standards also aim at bringing
more transparency in financial matters, thus seek to protect the interests of
investors and improve standards of good corporate governance. They would also
enhance the global competitiveness of Indian Industry.
ICAI has been taking a number of measures for capacity building through various
training programmes and workshops etc. The Industry Associations have also been
conducting various seminars and conferences to get acquainted with various practical
issues involved in the convergence process.
Industry has always expressed a feeling of readiness on the matter. The concerns
expressed by them at various stages have been redressed through issue of suitable
clarifications. Press Releases were also issued from time to time for awareness
of all stakeholders.
proposed converged accounting standards have been prepared after following a detailed
consultative exercise through issue of exposure drafts by Accounting Standards
Board (ASB) of Institute of Chartered Accountants of India (ICAI), examination
of comments received thereon and thereafter consideration of such standards by
ICAI, National Advisory Committee on Accounting Standards (NACAS) and thereafter
by Central Government (MCA) in consultation with M/o Law and Justice.
revised Schedule VI (Format of Financial Statements), Schedule XIV (Depreciation
Rate) and proposed converged accounting standards are ready and are proposed to
be notified shortly.
DELHI, JANUARY 22 :
TO avoid possible turbulence and maintain the deadline
of 2011 for introduction of International Financial Reporting Standards (IFRS),
ASSOCHAM has suggested its implementation on the lines it was done in the European
Chamber in a Statement said, in the European countries, standalone accounts of
individual holding companies and subsidiaries were continued for Regulatory and
Tax purposes and only Consolidated Financial Statements were prepared
in accordance with IFRS. This option followed by European Union was accepted
as adequate for claiming that European Union has converged with IFRS.
Chamber further said, the official version of Indian Standards converged to IFRS
has already been delayed and, therefore, Mindset to appreciate Fair Value accounting
has not been developed in Industry and Investors in view of illiquid markets,
volatility of Fair Value, inadeqate skillset on ascertaining Fair Value and doubts
regarding unbiased valuation and also there is no clarity on taxation of IFRS
the chamber has maintained that the issues which must be addressed before transitioning
to IFRS includes clarity on direct and indirect taxes, clarity on Companies Act
and impact on other laws and regulations which needs proper examination.
resolve the above matters, imposing the requirement of dual financial statements,
one as per IFRS converged standards and another as per the old Indian GAAP will
only cause undue hardship to Indian Companies with more harm than benefits as
the investors specially in the Indian Capital markets will only be confused to
DELHI, JANUARY 06 :
THE three-day 'International Conference on Accountancy
Profession: Catalyst to Sustained Economic Growth' concluded here today with the
signing of a Joint Declaration between the Institute of Chartered Accountants
of India (ICAI) and the Association of International Accountants, UK (AIA). It
was signed by Mr Amarjit Chopra, president, ICAI and Mr M. S. Khare on behalf
of AIA. The joint declaration is prepared to benefit both, the Chartered Accountants
and the students who pursue CA course. An Honorary membership of the AIA was also
conferred upon the President of the ICAI on the occasion.
number of Sessions were organized by the ICAI during the three-day 'International
Conference on Accountancy Profession: Catalyst to Sustained Economic Growth',
which began on January 4. The highlight of the Session on Economic Resilience
through Good Governance was the views expressed by MrVinod Rai, Comptroller and
Auditor General of India, who stressed the importance of good governance in any
structure, be it government or corporate sector.
emphasized that good governance is dependent upon solid foundation of systems,
procedures and processes that need to be in place and should not in any way be
tinkered with. Stating that India could withstand financial shocks, he added that
it is time for introspection and understanding whether the economic growth will
take place under stress or on sustainable basis.
the Session on the 21st Century Accountant, Mr Prabhakar Kalavacherla, Board Member,
International accounting Standard Board (IASB), talked about steps that have been
taken for harmonization by the IASB which has gained momentum in the last 6 years.
He said that 120 countries are basing their standards on IFRS.
further stated that USA and IASB have jointly signed MoU to work on several accounting
standards and this MOU will end in 2011. Mr Kalavacherla said that capital market
have become global, economies are interconnected, accountants and auditors need
high quality standards therefore conferences like the one organized by ICAI are
the Session on Emerging Avenues for Profession, Mr Arun Maira, Member, Planning
Commission, stated that Accounting profession plays a vital role in good governance
said that governance keeps together everybody in harmony and many diverse forces
together and for achieving good governance, guidance is a key factor.
the Session on 'Convergence with IFRS: Issues & Challenges', held on the concluding
day today, Mr Y. H. Malegam, Chairman, National Advisory Committee on Accounting
Standards, brought out various issues and challenges in convergence. He brought
out the rationale for convergence rather than adoption in the country.
mentioned that there are a few carve outs which are taken up with IASB. Subject
to these few carve outs, the standards are almost fully convergent, Mr Malegam
the Session 'Bridging expectation gap - Post Satyam fiasco' Mr Amarjit Chopra,
President, ICAI, said that Satyam is not a failure on the part of auditors but
is a result of total failure of corporate governance.
focused on the role of Independent Directors, Chairman of audit committee, existing
procedures of external confirmations, auditing and assurance norms. He emphasized
that all these should be thoroughly reviewed.
DELHI, JANUARY 05 :
SEVENTEEN companies/entities have been awarded the
ICAI Awards for Excellence in Financial Reporting for the year 2009-10. The Awards
were presented here yesterday by Mr Salman Khurshid, Minister of Corporate Affairs,
on the inaugural day of the three-day International Conference on Accountancy
Profession: Catalyst to Sustained Economic Growth, organized by the Institute
of Chartered Accountants of India (ICAI).
the category of Banking Sector, HDFC Bank has been awarded the Gold Shield; ICICI
Bank Limited has bagged the Silver Shield; whereas Kotak Mahindra Bank Limited
has been awarded the Plaque for Commended Annual Report for the year ended March
the category of Insurance Sector, SBI Life Insurance has been awarded the Gold
Shield and the Silver Shield given to Birla Sun Life Insurance.
the category of Manufacturing Sector (turnover equal to or more than Rs. 500 crore),
Dr. Reddys Laboratories has been awarded the Gold Shield and the Silver
Shield has been won by Tata Chemicals .
the category of Manufacturing Sector (turnover less than Rs 500 crore), Ganesh
Polytex has been awarded the Silver Shield.
the category of Service Sector (other than banking and insurance) (turnover equal
to or more than Rs 500 crore), Tata Consultancy Services has been awarded the
Gold Shield and the Silver Shield awarded to Persistent Systems and Infrastructure
Development Finance Company .
the category of Service Sector (other than banking and insurance) (turnover less
than Rs 500 crore), Nucleus Software Exports has been awarded the Gold Shield
and the Silver Shield has been bagged by Info Edge (India).
the category of Not-for- Profit Sector, The Akshaya Patra Foundation has been
awarded the Gold Shield; Silver Shield has been given to Vidya Dairy; whereas
Helpage India has been awarded the Plaque for Commended Annual Report for the
year ended March 31, 2010.
the category of Local Bodies, Surat Municipal Corporation has been awarded the
Plaque for Commended Annual Report for the year ended March 31, 2010.
HOLDS MEET ON ACCONTANCY PROFESSION
DELHI, JANUARY 04 :
THE Institute of Chartered Accountants of India (ICAI),
is organizing a 3-day international conference on Accountancy Profession: Catalyst
to Sustained Economic Growth, here from January 4-6, 2011, at Vigyan Bhawan.
aim of the conference is to dwell deeper into an emerging paradigm of accountancy
profession and bring the Indian and global perspectives together on the broader
issues of contemporary relevance. It will provide an opportunity to accounting
and related professionals to upgrade themselves professionally.
The international conference was inaugurated by the Finance Minister, Mr Pranab
Mukherjee. Minister of Corporate Affairs, Mr Salman Khurshid and Deputy Speaker,
Rajya Sabha, Mr K. Rahman Khan will be the guests of honour.
a special session in the evening today an MoU will be signed between Higher Colleges
of Technology, Ministry of Higher Education and Scientific Research, UAE, and
the ICAI. ICAI Awards for Excellence in Financial Reporting will also be distributed
at the Conference.
On the second and third day of the conference, renowned experts from across the
world would share their views on the issues of contemporary and emerging interest
to accountancy profession on the following broad thematic issues:
Resilience through Good Governance
of Global Standards on Accounting and Auditing
Panorama to include emerging paradigms of professional themes.
of the eminent speakers addressing various sessions will be:
Mr. Vinod Rai, Comptroller & Auditor General of India (C&AG)
Mr. Ian Ball, CEO, International Federation of Accountants (IFAC)
Mr. T. V. Mohandas Pai, ED, Infosys Technologies
Mr. Noriaki Shimazaki, Trustee, IFRS Foundation
Mr. Mark Spofforth, Vice-President, Institute of Chartered Accountants of England
CA. Y. H. Malegam,
Chairman, National Advisory Committee on Accounting Standards
Mr. C. R. Sundaramurti, Controller General of Accounts of India, Ministry of Finance
Arun Maira, Member, Planning Commission.
D Dhandapani, Group General Manager Chief Corporate Finance and Mr S.K.Rajput,
General Manager(Finance) Head Corporate Accounts receiving the Best Presented
Accounts Award for the year 2009 on behalf of ONGC from Mr Surendra Pandey, the
, Finance Minister of Nepal at a function at Kathmandu, Nepal. |
DELHI, DECEMBER 21 :
ONGC has been conferred the first runner up position
under the Best Presented Accounts Award for the year 2009 in public sector entities
category by South Asia Federation of Accountants (SAFA).
as a forum of professional accounting bodies comprising of over 1,80,000 professional
accountants, is committed to positioning, maintaining and developing the accounting
profession in SAARC Region.
accounting professional Institutes of Bangladesh, India, Nepal, Pakistan and Sri
Lanka are members of this apex body. The Institute of Chartered Accountants of
India (ICAI) forwarded ONGCs entry to SAFA for consideration of this award.
Awards under different categories are conferred on the basis of evaluation administered
by SAFAs committee for Improvement in Transparency, Accountability and Governance
of the published annual reports of entries from South Asian Countries. The top
honour went jointly to Bank of Ceylon and Peoples Bank, Sri Lanka.
award was presented by Mr Surendra Pandey, the , Finance Minister of Nepal at
a function at Kathmandu, Nepal. The award was received by Mr D. Dhandapani, Group
General Manager Chief Corporate Finance and Mr S.K.Rajput, General Manager(Finance)
Head Corporate Accounts on behalf of ONGC.
on this award, Mr. R.S. Sharma, CMD, ONGC acknowledged that this award is recognition
to ONGCs quality of Accounts and their effective presentation, greater transparency
and data sharing with stakeholders and sound governance practices.
also has the distinction of getting Nil comments from Statutory Auditors as well
as Comptroller and Auditor General of India (CAG) continuously during each of
last four years.
DELHI, DECEMBER 20 :
THE 301st Council meet of The Institute of Chartered
Accountants of India (ICAI), which functions under the aegis of the Ministry of
Corporate Affairs, started today at Puri, Orissa. The meeting was inaugurated
by the Governor of Orissa, Mr Murlidhar C. Bhandare. The Central Council Members
of the Institute, including president, ICAI, Mr Amarjit Chopra, Vice President,
Mr G.Ramaswamy and Secretary, Mr T.Karthikeyan, were present at the meeting.
Central Council is the highest policy making body of the CA profession in India
and manages the affairs of the Institute. Besides 32 elected members, there are
8 Government nominees from different Ministries and bodies on the Council of the
Amarjit Chopra, President, ICAI while addressing the meet gave an account of the
glorious history and the services rendered by the Institute. He said, The
ICAI has been in constant dialogue with various ministries in Central and State
Governments, providing policy inputs and suggesting innovative ways to strengthen
public expenditure management. He said his Institute would also like to
extend its services to the Government of Orissa.
the inaugural address, the Governor of Orissa, while appreciating the significant
contribution made by the CA profession to the growth of Indian economy in the
area of liberalization and globalization added that the Institute can help the
Government in designing a suitable mechanism for monitoring the use of the funds
made available for public expenditure.
added, The role of the accounting profession is critical in lending credibility
to financial markets by providing quality information which facilitates market
discipline and fosters confidence of various stakeholders.
DELHI, DECEMBER 08 :
THE Institute of Chartered Accountants of India(ICAI),
functioning under the aegis of the Ministry of Corporate Affairs, organized here
today a seminar on Social Audit. A plethora of new ideas in this emerging field
were discussed by the Chartered Accountant fraternity.
the Seminar Mr Amarjit Chopra, president, ICAI, said that social audit is need
of the hour and government is looking up to Chartered Accountants to play a vital
role in this area. In periods to come, social audit would act as a whistle blower,
a role that would be played by the chartered accountants, he said.
Audit is an overall value- based exercise, which can be conducted right from the
grass root level to the level of the Board. A presentation on Genesis and Evolution
of Social Audit and a brief on Process and Methodology of Social Audit was also
presented during the seminar.
session on Corporate Social Responsibility and Social Audit was taken by experts
in this area. Emphasizing on triple bottom line reporting, the experts came up
with the idea that corporates should prepare social accounts and use excerpts
in the corporate social accountability report.
Mrs Pratibha Devisingh Patil, the Prime Minister, Dr Manmohan Singh, the Union
Finance Minister, Mr Pranab Mukherjee, the Minister of State for Communications
and Information Technology, Mr Gurdas Kamat and others at the inauguration of
the 150 years celebrations of the Comptroller and Auditor General of India, in
New Delhi on Tuesday.|
DELHI, NOVEMBER 16 :
THESE are times of rapid change. In our country,
a sustained period of high growth has brought about transformations as never before.
It has also resulted in rising aspirations of our people. The additional resources
that have become available because of higher growth have enabled our government
to fund massive programmes in the social sectors in pursuit of our goal of inclusive
growth. In Education, in Health, in Rural Development, outlays have been increased
enormously in the last five years. All these factors place tremendous demands
on our systems of governance and service delivery, which must need to change quickly
to meet the new requirements of the situation , said Prime Minister Dr Manmohan
Singh, in his address at a function of 150 Years Celebrations of the Institution
of CAG of India.
time tested ways of doing things which lend credibility to an institution in the
public eye, may prove inadequate in the face of rising aspirations and mounting
pressure for quick and efficient delivery of public services. While those in government
grapple with different and better ways of doing things, audit, with its vast experience
and deep insight, can contribute significantly to revamping systems and procedures
in government to meet the challenges of this 21st century. We look forward to
the institution of the Comptroller and Auditor General for such advice and guidance
in the years that lie ahead , he added.
importance of credible and effective accountability and oversight institutions
cannot be over-emphasized. The global economic crisis that erupted in 2008 has
served as a reminder to all of us of the need for such institutions.
govt is committed to to strengthen the institution of Comptroller & Auditor
General of India as part of our broader efforts to improve transparency and accountability
in the work of our Government. There arwe growing concerns regarding the inadequate
and delayed response to the reports of the Comptroller & Auditor General.
The Ministry of Finance has taken a number of initiatives which will lead to an
improvement in this area , he pointed out.
the last few years the government has allocated huge resources to bring about
improvements in the delivery of basic services to our citizens, particularly those
who are disadvantaged and underprivileged. But, merely expanding the outreach
of programmes for employment generation, for education and for health is not enough.
We must do better than in the past in implementing our schemes if we are to make
a real dent in the problems of persistent poverty, ignorance and disease that
still afflict millions of our countrymen, Dr Singh added.
be effective, the new or expanded schemes that are being implemented need to be
carefully designed, monitored and evaluated. We therefore need a shift away from
the emphasis on allocation and utilization of financial resources, which our processes
of budgeting and accounting have come to reflect over the years, the Prime Minister
the last few years we have made efforts to measure outcomes to judge the effectiveness
of our development schemes. But we need to do much more in this area. The emphasis
on outcomes need to become pervasive in our system. This would be receiving adequate
attention in the institution of Comptroller & Auditor General.
the years, there has also been a feeling that we might benefit more if the focus
of audit is not so much on minute, individual transactions but on big ticket items
on which large sums of public money are expended. While the benefits of detailed,
propriety audit cannot be under-estimated, perhaps, there is a case for allocating
limited time and resources in a manner that big and systemic issues get due attention
and we get much greater value for money spent.
might also be time to re-orient our approach so that auditors do not rest with
pointing out deficiencies. Suggesting methods of doing things better and differently
should be an integral part of the evolving process of audit. Audit being a continuous
process, such suggestions would become, over the time, an important and continuous
source of effecting improvements.
developments have altered the patterns of spending public money phenomena. The
first is the progressive devolution of powers and resources to the Panchayati
Raj Institutions. Though progress in this area can not be said to be satisfactory,
we hope that in the years ahead the Panchayati Raj Institutions will be empowered
much more with finances, functions and functionaries.
institutions of accountability therefore will have to realign their processes
to reflect this new emerging reality. The other development is the increasing
number of public private partnership(PPP) projects both in the Centre and in the
States. The Central as well as many State governments have used this route successfully
for impressive investments in the infrastructure projects. With time, public private
partnership (PPP) will be increasingly used in diverse areas. There is, therefore,
a need to improve the structure of public private partnership (PPP) arrangements
to ensure that they are transparent, ensure adequate competitiveness and adequately
safeguard the public interest. The the Comptroller & Auditor General will
play a leading role in ensuring that these new initiatives deliver as intended.
Comptroller & Auditor General is an active member of the international community
of public auditors and also the auditor of several United Nations agencies. These
roles give the institution access to global best practices in governance, delivery
of public services and accountability. Since the jurisdiction of the Comptroller
& Auditor General extends to all the States of our Union, the institution
also has an opportunity to get an insight into the reasons which make a programme
more successful in some States than in others. Therefore, the organization is
well positioned to act as an exchange house of solid good practices, he opined.
urged that a system be developed so that this wealth of information and experience
is shared on an institutionalized basis.
reports of the Comptroller & Auditor General are taken very seriously by the
media, by the public, by the government and by our Parliament. This casts a huge
responsibility on the institution to ensure that its reports are accurate, balanced
and fair. Very often, there is a very thin line between fair criticism and fault
finding, between hazarding a guess and making a reasonable estimate, between a
bonafide genuine error and a deliberate mistake, the Prime Minister said.
an important watchdog in our democracy, it falls upon this institution to sift
the wheat from the chaff, to distinguish between wrong-doing and genuine errors,
to appreciate the context and circumstances of decision making processes. This
requires a very high degree of professional skill and competence , he said.
institution of Comptroller & Auditor General has acquitted itself very credibly
in the past 150 years. However, times are changing and so are our needs. The institution
will have therefore to further enhance its capabilities and its skills and re-orient
itself to deliver results that our nation expects of it in the years that lie
ahead, he added.
conclusion, he said that the the institution of Comptroller & Auditor General
and the Indian Audit & Accounts Service have made immense contribution in
ensuring accountability in the processes of government. This institution is expected
to play its rightful role in the government's efforts towards a prosperous and
equitable future for people.
NEW DELHI, NOVEMBER 16 :
INDIA is a vibrant democracy. With the
reforms introduced in the economy and government, our institution also has kept
pace in its approach to audit and the methodology of audit. We no longer submit
to Parliament Reports which are dated and of limited relevance to the present
day administration. We have shed our age old fixation of postmortem to merely
extract petty faults in government functioning. Today, we bring to bear a holistic
approach focusing on the macro picture. Our attempt is to present the audit report
at the earliest so that mid course corrections can be undertaken, said Mr Vinod
Rai, Comptroller & Auditor General at an inaugural function of 150th anniversary.
mindset is positive so as to make recommendations for improvement. We undertake
performance audits to provide government an objective and clinical analysis of
the efficiency and outcomes of budgetary plan expenditures. We no longer focus
merely on audit of government expenditure. Our audit focus is on the outcome of
such expenditures, he added.
about 60 years of its existence post independence the instituion has withstood
the test of its independence and objectivity. We have an excellent pool of professionals.
We continuously upgrade their skills to keep them abreast of international best
practices, he said.
training institutions are highly acknowledged by other supreme audit institutions.
We train about 200 foreign audit officers every year on different aspects of audit.
The institution of the Comptroller and Auditor General of India has, by its professional
excellence and pool of knowledgeable experts attained a pride of place in the
international audit community, he said.
is in recognition of our skill sets that we have been chosen to audit large international
agencies like the Food & Agriculture Organization, World Health Organization,
World Food Programe and the United Nations among others , he further said.
the country, we have been aspiring to partner the Government to improve governance
at the Centre and the States. The Government, through every Five Year Plan has
improved on the delivery process of its flagship programmes. With the introduction
of newer models of implementation such as Public Private Partnership (PPP), using
Panchayati Raj institutions for delivering social sector schemes and setting up
specialized non-governmental institutions for better public participation, there
is a need for us to revisit our legal mandate which did not envisage any such
models earlier. It has to be recognized that more than 50 percent of Central plan
funds are now being routed through these channels. The Parliament and the Government,
have to take a view on whether parliamentary oversight has to be maintained over
was in this context, and after full discussion with the Government, that we submitted
in November last year a revised statute to ensure automatic legal mandate to the
CAG on such spending. We await the introduction of the proposed statute in Parliament
, he said.
department is of the firm view that policy formulation is the prerogative of the
Government. We merely seek to objectively analyse the implementation of those
policies and assess the outcomes. We are engaged in this process to build capacity
in the Centre and States for transition to accrual accounting. We have associated
ourselves with the Government to help in devising efficient delivery programmes.
We address systems and processes to ensure optimal utilization of resources. We
seek out best practices and disseminate them across departments to partner in
conclusion, he said ," Our department stands committed to support excellence,
probity, transparency and accountability.