ICAI PRESIDENT IN AN EXCLUSIVE INTERVIEW WITH TAXMANNS CORPORATE PROFESSIONALS TODAY PRESIDENT CA UTTAM PRAKSH AGARWAL BY CA SUDHIR HALAKHANDI BY CA SUDHIR.

ICAI PRESIDENT IN AN ICAI PRESIDENT IN AN EXCLUSIVE INTERVIEW EXCLUSIVE INTERVIEW

WITH TAXMANN’S WITH TAXMANN’S “CORPORATE “CORPORATE

PROFESSIONALS TODAY”PROFESSIONALS TODAY” PRESIDENT CA UTTAM PRESIDENT CA UTTAM

PRAKSH AGARWAL PRAKSH AGARWAL

ICAI PRESIDENT IN AN ICAI PRESIDENT IN AN EXCLUSIVE INTERVIEW EXCLUSIVE INTERVIEW

WITH TAXMANN’S WITH TAXMANN’S “CORPORATE “CORPORATE

PROFESSIONALS TODAY”PROFESSIONALS TODAY” PRESIDENT CA UTTAM PRESIDENT CA UTTAM

PRAKSH AGARWAL PRAKSH AGARWAL

BY CA SUDHIR HALAKHANDIBY CA SUDHIR HALAKHANDI

CA UTTAM PRAKASH AGARWALThe President of ICAI, Born in

Sumerpur, Disst. Pali (Rajasthan) has recently taken the reins of one of the Largest Accounting Body of the World – “The Institute of Chartered Accountants of India”. The ICAI is very much in News since his taking over the presidentship. The Youthful and energetic image is turning him into the “Brand Ambassador” of the ICAI.

CA SUDHIR HALAKHANDI500 TAX ARTICLES IN TOP TAX JOURNALS TO HIS

CREDIT

The versatile writer, Tax expert, natural orator and born Left hander, one of rarest talent having command on both direct and Indirect Taxes- Service Tax, Income Tax and VAT and one of the regular writer for Taxmann’s publications, also from the same State Rajasthan as his place of birth and place of work is “BEAWAR” a town in Disst. Ajmer (Rajasthan).

TOPICS OF TALK The President of ICAI CA UTTAM PRAKASH AGARWAL in a exclusive talk for Taxmann’s Corporate professionals Today with CA SUDHIR HALAKHANDI has discussed about the profession, the recession, the CA Journal, his action plan, the CA Education, SAFA, CPE programs so on and so forth. Every field of the profession has been touched in the talk of these “two experts”.

CONGRATULATION MR. PRESIDENT SIR• CA SUDHIR HALAKHANDI

Good Morning and Congratulations Mr. President for taking over the reins of biggest accounting regulatory Body of the world and the events in last few days has shown that you are working very fast to give the ICAI a youthful, energetic and bold image. Further you are turning into the Brand Image of ICAI. I am here to ask some of the important questions from you. Are you ready Mr. President Sir?

• PRESIDENT ICAI CA UTTAM PRAKASH AGARWAL

• Good Morning and Thanks Mr. Sudhir! Please ask the questions and I am ready to reply!!

WHAT ABOUT RECESSION

CA SUDHIR HALAKHANDI

•How do you visualize the role of CAs in this era of recession?

VITAL ROLE FOR CAs IN RECESSION

•

• CA UTTAM PRAKASH AGARWAL• Chartered Accountants are expected by the

society to be the watch dogs of the entire finances of the corporate sector and business in general . Their role as controllers of finance is much more significant in times of recession. This is because during recession minute attention has to be paid to all aspects of costing and cost cutting measures have to be seriously implemented. Particularly during recession correct financial information is vital for the management because they have to manage the company in the midst of lower sales lower production lower exports etc.

EFFECTIVE AND SIGNIFICANT ROLE OF CA IN RECESSION

• CA UTTAM PRAKASH AGARWAL• Thus, chartered accountants can play a

significant role in keeping this business sector afloat duringtimes of recession. This is particularly true in the banking sector because there may not be off take of credit by the industrial sector and the banks may be loaded with lot of idle cash which has to be efficiently managed.  Chartered Accountants who are working in banks and who are undertaking the audit of banks can give effective advice towards this purpose.

Package to CAs CA SUDHIR HALAKHANDI

• In the last one or two years the packages of the chartered accountants in the Industry have gone satisfactorily high. Even the New entrants are getting attractive salary. Do you think this trend will continue or it will take a slight break?

GOOD PACKAGE WILL CONTINUE

• CA UTTAM PRAKASH AGARWAL

•We are confident that the trend (of satisfactorily high salary packages for CAs including new entrants) would continue in this year as well.

GST -2010•CA SUDHIR HALAKHANDI•The Goods and service Tax

is in offing in 2010. How do you see the role of ICAI in its introduction and preparation?

YES, ICAI IS WORKING ON GST

• CA UTTAM PRAKASH AGARWAL • Since the Govt. of India intends to

introduce GST from 2010 and the Group constituted by the Empowered Committee of State Finance Ministers to study this aspect and suggest a model of GST for the country have submitted their report and also dealt with other issues that need to be addressed. ICAI had also issued a concept paper on GST and also doing research work to Prepare Model GST Act, to make the members aware organizing seminar on GST.

MEETING THE DEADLINE FOR IFRS

• CA SUDHIR HALAKHANDI

• And some thing about your readiness to introduce IFRS in scheduled time?

YES, ICAI IS READY !!!• CA UTTAM PRAKASH AGARWAL

• The Council of the Institute of Chartered Accountants of India has, while appreciating the emerging diversities, complexities and need in relation to the convergence of Accounting Standards with IFRS, decided to launch Certificate Course on International Financial Reporting Standards for its members. The IFRS issued by International Accounting Standards Board (IASB) are gaining recognition as Global Reporting Standards.

IFRS COURSE DETAILS• CA UTTAM PRAKASH AGARWAL

• The objective of this Course is to enhance the knowledge as well as to provide benefit to the members in the global service market.

• The Course aims at providing: • Introduction of the concepts of IFRS • Dissemination of knowledge on IFRS; • Comparison of IFRS with existing

Indian Accounting Standards; • Issues in relation to IFRS; • Conversion of Financial Statements

prepared on the basis of Indian GAAP to IFRS based financial statements.

CA JOURNAL WHY NOT FORTNIGHTLY???

• CA SUDHIR HALAKHANDI • In a year or two the CA Journal has

got a new Look sir , but there is a need to make it more frequent because now the changes are so fast hence Monthly Journal is not sufficient. Do you think about the possibility of making it forthnightly?

THANKS FOR YOUR CONCENRN BUT MONTHLY

JOURNAL IS OK• CA UTTAM PRAKASH AGARWAL

• "A monthly and a fortnightly or a weekly magazine would have their own logic of existence. You are right in saying that changes are taking place fast in our times. But changes always take place fast. We take care of the changes that take place in the past one month. We would not like to change our monthly format, as we cover not only national and international happenings in the past one month but write-ups including articles on contemporary issues too that do not change their relevance so frequently, i.e. in a month. I would thank you anyway for your concern – we may meditate a parallel publication on fortnightly basis especially on the issues that change actually fast. But it would require a careful consideration."

PRE- RECORDED CDs OF TELE-CONFERENCES

CA SUDHIR HALAKHANDI• Now about the Teleconference

programmes. One of the suggestions is that prerecorded CDs of the program after its telecast should be sent to the branches so the members can get the better understanding by seeing the replays also? Further the students are also demanding the CDs of the lectures on Gyan Darshan. I think ICAI has introduced it to some extent but not fully. Mr. President sir, it will be very useful and it is also not very costly affair.

YES, MR. SUDHIR, WE ARE PROVIDING CDs

• CA UTTAM PRAKASH AGARWAL The first teleconference during this council year

was held on 23rd of February, 2009 on the topic "Wealth Management & Investment Strategies" and the Chairman, CPEC was also of the same view that a copy of the CDs be given to the Branches after the event. Accordingly, 250 CDs are being developed for sending to various Branches. That practice will also follow for subsequent teleconferences. Regarding the CDs of lectures on Gyan Darshan, the work is under progress.

MR. PRESIDNET SIR, ONE YEAR TENURE IS

SUFFICIENT?• CA SUDHIR HALAKHANDI

•Mr. Agarwal do you think the tenure of one year is sufficient for president of ICAI to implement his thoughts in realities?

TOO SHORT BUT NOT A HURDEL

• CA UTTAM PRAKASH AGARWAL

• Certainly one year is a too short period as I believe that the vision of any member includes a long list of initiatives for the betterment of the system that he wants to implement during his tenure. However in our Institute the process of electing a President is very robust where every prospective candidate holds a good experience as a Central Council Member of ICAI & one year as a Vice President before being elected for this post. Thus the continuity never breaks with the new President since the decision of the President is of the Council that he represents.

SATYAM FIASCO!!!!• CA SUDHIR HALAKHANDI

• Mr. Agarwal you have taken the reins of ICAI in your hand at a very crucial juncture. See here lot of fingers is raised towards ICAI during the Satyam Fiasco?

• Now how do you visualize the regulatory role of ICAI in such a situation?

WE ARE WORKING ON IT• CA UTTAM PRAKASH AGARWAL

• The ICAI plays its regulatory role as per the provisions of Chartered Accountants Act, 1949.  The members of the Institute are governed by the disciplinary mechanism as enshrined in the said Act.  The said Act has recently been amended in the year 2006 to pave way for more effective action and speedy disposal of disciplinary cases.  The auditors of Satyam are being tried under the amended Act.

The Institute, on its own, had set up a Financial Reporting Review Board in the year 2002 to improve the financial reporting practices prevailing in the country.  This Board reviews the general purpose financial statements of enterprises and auditor's reports thereon with a view to determine the compliances with accounting principles, disclosure requirements and reporting obligations of auditors.  This Board, though lacks statutory support, yet has been doing its work effectively.  It has taken up the matter of reviewing of financial statements of Satyam for the last five years starting from financial years 2003-04 onwards till date. 

YES WE ARE TRYING FOR MORE

• CA UTTAM PRAKASH AGARWAL• The Institute has also a peer review

mechanism in place whereby members of the Institute review the work done by their peers so that the quality of attestation functions carried out by the auditors can be maintained and improved.  As per statute, a Quality Review Board has also been set up, pursuant to the amended CA Act.

 The Institute has also set up a Group recently, under the convenorship of its Vice President, CA. Amarjit Chopra with past President and past Council Members as its members, to suggest improvements in financial reporting.  The Group is expected to submit its report very shortly which will be sent to the Government.

More Powers of FRRB• CA UTTAM PRAKASH

AGARWAL• The Institute will be keen to have

more powers for its FRRB to conduct `hot reviews' and also to inspect and question the auditors.

RECESSION – WHEN IT WILL END MR. PRESIDENT SIR ?

• CA SUDHIR HALAKHANDI • Not only as the President of ICAI

but also as a Financial Expert what is your estimate about the time in which world and especially Indian will come out of this era of recession? Have you seen any sign of revival in economy in recent days?

SITUATION IS IMPROVING

• CA UTTAM PRAKASH AGARWAL• Around the world, emerging markets are still growing,

but at lower rates. For India, there is still optimism, though at present it is sluggish. The Government projects full-year growth at 7%, but expects to fall short of fiscal and revenue deficit targets this year mainly because of stimulus measures that could total up to 2% of the nation's $1.2 trillion GDP. The fiscal deficit may jump to 5% of GDP compared to the targeted 3%. The economy should not be hard hit because services and agriculture account for 55% and 18.5% of GDP respectively, and these sectors are less affected by cyclical downturns.

INFLATION- WE ARE COMFORTABLE NOW

• CA UTTAM PRAKASH AGARWAL

• The bright spot in the Indian economy is inflation, which dropped to nine-month lows of about 6.6% in December, 2008 and now 2.3% in March 2009 and economist predict that the country could face deflation.

EXPORTS WILL BE ON TIGHT SPOT

• CA UTTAM PRAKASH AGARWAL• Exports -- where much damage has already

taken place - will continue to suffer. Things may not be much rosy before 2010-11 because the whole global situation is going to remain depressed all through 2009.-10. The export sector is not in good shape because of the volatility in the exchange rate. The rupee depreciation is a respite, but greater volatility is a matter of concern.

RUPEE WILL BE AROUND 40-42

• CA UTTAM PRAKASH AGARWAL• The rupee depreciation is unlikely to be India's

saving grace much longer; experts expect its value to return to around 40 to the dollar, down from more than 50 in recent months. The rupee will be around 40 or 42 to the dollar in 2009. The dollar has appreciated against almost every currency in the world as worried investors seek safety in U.S. Treasury bonds. Once people think that the crisis is over, there will be a reversal. This may bring down the dollar a little bit and the rupee may appreciate to around 45 or so.

SENSEX????• CA UTTAM PRAKASH AGARWAL

• The Sensex may increase slightly in the coming year. The market is expected to be flat, between 9,000 and 10,000, and could even come down below the 8,000 mark before the general elections due in the next few months. The market will move sideways. While the Sensex may go up slightly, I don't see any sustained rise. If we manage to reach 11000 by December 2009, it means we are doing wonderfully well.

CA EDUCATION- WHY SO MANY CHANGES??• CA SUDHIR HALAKHANDI

• In recent years the system of education and training has been changed so many times and first we have foundation, then go for P-1 and then PCC and see here when only first batch of CPT get his PCC clearance, a new IPCC course has been introduced? Sir, really still we are in search of excellence by these changes? What is your reaction?

CHANGES ARE NEED OF THE HOUR

• CA UTTAM PRAKASH AGARWAL• The profession of chartered accountancy is a

dynamic profession. The subjects included in the CA curriculum are highly professional subjects. They also undergo changes due to the constant changing business scene. Taxation laws also undergo constant changes. Subjectslike accounting and auditing or International in character and they have to change in response to the changes in the International scene.

SYLLABUS AT PAR WITH INTERNATIONAL LEVEL

•CA UTTAM PRAKASH AGARWAL

• The ICAI is a member body of the leading professional accounting association all over the world. It is imperative for the ICAI to keep its syllabus on par with the International level.

INFORMATION TECHNOLOGY• CA UTTAM PRAKASH AGARWAL

• Further, Information Technology has become an integral part of the Chartered Accountancy profession and everybody knows that IT sector is undergoing dynamic changes. Due to all these reasons it is necessary for the ICAI to constantly update and introduce new courses to cope up with the changes in the business sector. Further sometime the ICAI being a statutory body set up under an Act of Parliament has to abide by regulation of the Government. While the Institute is fully aware thattoo many changes will complicate the curriculum. It is also necessary to keep the developmental aspects in mind while revising and updating the course curriculum.

SAFA- PLEASE PRESIDENT SIR GIVE SOME DETAILS

• CA SUDHIR HALAKHANDI• Sir, Most of the members do not

know that we have a federation of South Asian Accountants “SAFA” please tell something about it, the member nations, it’s Head quarters, the objects and the role of ICAI in it. I think from India ICAI and ICWA are the members of SAFA?

SOUTH ASIAN FEDERATION OF ACCOUNTANTS

• CA UTTAM PRAKASH AGARWAL

• South Asian Federation of Accountants (SAFA) was formed in the year 1984 to serve the accountancy profession in the South Asian Region and uphold its eminence in the world of accountancy.  SAFA is an Apex Body of the South Asian Association for Regional Co-operation (SAARC) and a Regional Grouping of International Federation of Accountants (IFAC). SAFA represents over 180000 accountants having membership of the national chartered accountancy and cost and management accountancy institutions in the South Asian countries namely Bangladesh, India, Nepal, Pakistan and Sri Lanka. Afghanistan, Bhutan and Maldives, which do not have accounting bodies, have been given the status of Observers. Being observer of SAARC, China, Japan and Korea has also been given the status of Observer at SAFA.

MEMBERS OF SAFA• CA UTTAM PRAKASH AGARWAL

• SAFA came into existence at the initiative of the accounting professional bodies in professional environment. The current membership of SAFA comprises of following the South Asian Region, which has a bond of culture and homogeneity of accounting bodies:

• (i)  The Institute of Chartered Accountants of Bangladesh• (ii) The Institute of Cost and Management Accountants of

Bangladesh• (iii) The Institute of Chartered Accountants of India• (iv) The Institute of Cost and Works Accountants of India• (v)  The Institute of Chartered Accountants of Nepal• (vi) The Institute of Chartered Accountants of Pakistan• (vii) The Institute of Cost and Management Accountants of

Pakistan• (viii) The Institute of Chartered Accountants of Sri Lanka

BIRTH OF SAFA• CA UTTAMPRAKASH AGARWAL

• The idea to form an alliance of accountancy bodies in South Asian Region was conceived by Late.Mr Ashok Kumbhat, the then President of ICAI, at the third National Conference of Chartered Accountants of Sri Lanka held in December 1982. At the meeting of the heads of accountancy bodies from Bangladesh, India, Pakistan and Sri Lanka held in August 1984 at New Delhi, the Constitution of the Body was signed. The meeting was attended by the heads of accounting bodies in South Asian Region.

MISSION OF SAFA• CA UTTAM PRAKASH AGARWAL

• ‘SAFA as a forum of professional accountancy bodies is committed to positioning, maintaining and developing the accountancy profession in South Asian Association for Regional Co-operation (SAARC) Region and ensuring its continued eminence in the world of accountancy; in the public interest and towards broad economic development of the region.’

OBJECTIVES OF SAFA• CA UTTAM PRAKASH AGARWAL

• 1. to understand the profession in the regional context and continuously work towards its development in keeping with global trends;

• 2. to participate and play the leadership role on the International forums;

• 3. to promote harmonize accountancy profession in SAARC Region and in keeping with global development;

• 4. to play promotional role for the countries within its jurisdiction, where the accountancy profession does not exist or is not sufficiently developed;

• 5. to promote and set professional standards;• 6. to act as interface between international bodies and member-

bodies;• 7. to promote and develop state-of-the-art research compact; and• 8. to carry out such other activities as are considered incidental or

ancillary to the above or considered expedient in furtherance of the development of Accountancy profession in the SAARC Region.

Committee of SAFA• CA UTTAM PRAKASH AGARWAL

• Profession of accountancy in the region has a long history and different countries under different stages of development have developed certain strengths and at the same time might require support for building up capabilities in other areas. It is in that direction that SAFA decided to constitute Committees in some of the core areas concerning the institutionalization of the profession. The Committees have been playing pioneer role in their respective areas. Following are the Committees of SAFA:

• 1. Committee on Education, Training and CPD, • 2. Committee on Professional Ethics and Independence,• 3. Committee on Quality Control• 4. Committee on Accounting and Auditing Standards• 5. Committee on Professional Accountants in Business

(PAIB)• 6. Committee for Improvement in Transparency,

Accountability and Governance (ITAG)• 7.  Small & Medium Practices (SMPs) Committee• 8.  Task Force on Harmonization of Fiscal & Tariff Regimes• 9.  Standing Committee on Finance

ROLE OF ICAI IN SAFA• CA UTTAM PRAKASH AGARWAL

• The Institute of Chartered Accountants of India (ICAI) is one of the Founder members of SAFA.

• The ICAI hosts the Permanent Secretariat at India and has been playing a lead role in the functioning and furtherance of the objectives of SAFA. 

• The ICAI also chairs the Committee on Education, Training and CPD and Small & Medium Practices (SMPs) Committee of SAFA.

• ICAI’s representatives have served SAFA as President during the years 1984, 1985, 1992, 1999, 2003 and 2006  

GLOBAL MEMORANDUM OF UNDERSTANDING

• CA UTTAM PRAKASH AGARWAL• Further The ICAI has entered into Memorandum of

Understanding with various foreign countries whereby the foreign countries have agreed to give mutual recognition to the Indian qualification. In fact, there terms of such memorandum of understanding are loaded in favor of Indian because of the fact that the training and examination system of the Institute of Chartered Accountants of India are of a very highorder.

GLOBAL IMAGE OF INDIAN CA???

• CA SUDHIR HALAKHANDI • Mr. President sir, during the Vice

presidentship you traveled a lot so please tell us something about the image of Indian CA in foreign countries specially the developed countries. Also say something about the image and role of ICAI amongst the world accounting bodies.

EXCELLENT IMAGE OF INDIAN CA

• CA UTTAM PRAKASH AGARWAL• The image of the Indian accounting

profession is excellent all over the world. All the developed countries have recognized the efficiency and quality of the Indian chartered accountants. For example, Indian is one of the few countries where knowledge outsourcing has been implemented in a very big scale by the developed countries. Indian chartered accountants are delivering goods in the financial sector by giving complete satisfaction to the foreign corporate who areoutsourcing accounting related work to Indian chartered accountants.

FOREIGN INVESTMENT• CA UTTAM RAKASH AGARWAL

• Due to globalization the cross border flow of investment have become extremely significant. Several foreign mutual funds have set up business in India.  Many multinational companies have opened theiroperation in India. In all these organization Indian chartered accountants are being employed. By their excellent performance they have established inter relationship with their counter parts in foreign countries also. Thus, globalization has also helped to protectthe excellence of the Indian accounting profession throughout the world.

INTERNATIONAL ROLE OF ICAI

• CA UTTAM PRAKASH AGARWAL• The ICAI and the eminent members

of the Indian accounting profession are playing significant role in the formulation of International accounting and auditing standards. The ICAI is a member body in almost of all the leading International Accounting Associations. Thus, theimage of the Indian accounting professional is increasingly beingrecognized all over the world.

MR. PRESIDENT SIR , YOUR ACTION PLAN FOR

2009.• CA SUDHIR HALAKHANDI

• Mr. Agarwal now something about your plans in 2009. New courses, new programs etc. which you have planned before taking over the charge because now this is the time for you to see them in reality.

FIVE YEAR ACTION PLAN

CA UTTAM PRAKASH AGARWAL• I have chartered out a Five year

Action Plan, keeping in mind the needs of members and students of the Institute hosted on Institute’s website.

NOW MR. PRESIDENT , SOMETHING PERSONAL ABOUT

YOU SIR?

• CA SUDHIR HALAKHANDI • Now something Personal Mr.

Agarwal! About your native place, your initial education and something about your Hobbies? And last but not the least how you visualize the Life after presidentship?

PLEDGE OF WHOLE LIFE TO ICAI

• CA UTTAM PRAKASH AGARWAL• Born in Pali District of Rajasthan, completed

my graduation from Rajasthan University, Abu Road & completed Chartered Accountancy Course from ICAI. I love reading & watching cricket in my free time.

• I shall provide my services to the Institute and the profession till my last breath.

GOOD BYE MR. PRESIDENT!!!!!

THANKS MR. SUDHIR!!!!• CA SUDHIR HALAKHANDI

• Thanks Mr. Agarwal! It is nice Meeting with You!! Thanks once again !!! Have a nice day President Sir!!!

• CA UTTAM PRAKASH AGARWAL • Thank You Mr. Sudhir! Nice

talking with you.