NFRA- Shock to Chartered Accountants

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Headed by the Prime Minister, Union Cabinet has cleared the proposal for setting up of National Financial Reporting Authority (NFRA). It has delivered shocking signal for the professionals & members of ICAI. With ICAI having its own disciplinary mechanism & have branded the CA as a respectable profession, need for NFRA is questioned by all the professionals.

 

Why & why not NFRA:

  1. Hon’ble Prime Minister comments over CA during the demonetization period, CA Piyush Goyal remarks in the recent function have probably given enough signal for the professionals. PM in his statement at annual function has placed abrupt question mark over the functioning of the members. Probably, reasonable reply was not conveyed to the Government. Result: NFRA.
  2. Records shows says that penalty for a period of one year or more have been imposed in 14 cases only and in vast majority of the cases, the members have been not found guilty. In some cases, though members have been found guilty they have been condoned by just a caution or with few words of wisdom. Probably, the fact is ignored that majority of the members are compliant.
  3. NITI Ayog & other Government agencies has criticized self-regulatory structure of the professional bodies. Probably, they are not aware of the hard work & dedication of the majority of the CA’s. The contribution of the members in smooth functioning of various initiatives of the Government is totally ignored by the so called Government Agencies.
  4. NFRA need is further augmented by the comment by one international consultant engaged by SEBI said “the ICAI’s oversight is passive in nature and with limited focus on active investigations”. What can be said by the International consultant?
  5. Government believes that watchdog over CA would ensure better control in the system. Whether Government machinery can ensure better control? They have enough safeguard and proved credentials of their own? PNB Fraud & Karti Chidambaram arrests- what does it convey?
  6. The proposal of ICAI having its own disciplinary mechanism is also rejected by the Government by setting up NFRA. Important question at this point of time is, why CA’s profession is respected so much by the society?

 

CA: Alphabets of Trust?

Toughest exams, World class education, Rigorous Training, Untiring effort is what enables person to prefix alphabets “CA” before their name.  World over, Indian Chartered Accounts are considered as the best brain in the Accountancy profession.

However, the recent remarks & comments have made everything look doubtful & questionable.

Be it BJP or Congress, CA’s are treated alike. Always ignored & least appreciated. Present statement, comments & remarks over CA are not sudden but could have been visualized well in advance by the remarks of the politicians & bureaucrats over the professionals.

 

On each & every occasion when the CA’s have approached the Government for date extension or with other suggestions, it finds least favor. Dustbin is the best place to find the suggestion given by the members to the Government.
All the more questionable: Presence of two best performing Chartered Accountants in the present Government as union minister. Are they present? Some says that one of the CA union cabinet minister is after CA in his desire to become FM! CA’s love with the Government appears to be one sided love.

 

Why so much question mark?

Whether the CA profession deserves such comments and remarks from the politicians & Bureaucrats?

 

It is worthwhile here just to review the working of so called politicians who are even not able to visualize & ensure proper administration of GST in the country, to say the least.

 

CA’s are an easy target to blame for anything & everything.

 

CA is a profession of dignity and respect. All over, they have delivered their best for the betterment of the county.  The professionals believe themselves as a “Partner in Nation Building”.  However, it appears that Government doesn’t think so.

No one doubts intention & the credentials of the PM Shri Narendra Modi but blaming the professionals for all the wrong doing is not appropriate. Like any other profession, businessmen or bureaucrats, there may be some professionals involved in malpractices but the number could be counted on the fingers. Chartered Accountants have gained the respect all this year because of its contribution to the society and the Nation. 24/7 efforts of the CA in proper implementation of the GST or e-drive of Income Tax Department cannot be overlooked by anybody.

 

Though already late, this is a time for ICAI to be harder in conveying to Government that such adverse remarks cannot be accepted. Nor in present circumstances nor in future. Let us maintain the arm’s length distance while addressing the issue.

 

CA’s are committed to the Nation and let the loose talk should not deteriorate the image of the profession.

 

Often, it is said that the Government would hike the limit of Tax Audit or would add other professionals for statutory compliances if ICAI critics the Government? Let us not be fool. If it happens, CA’s are capable of fining out new & better area to practice. CA’s are capable of exploring newer horizon for the profession.

 

CA is a dignified qualification:

“CA’s” are living for dignity and respect. It’s better to live the life of admiration & pride rather than surrendering for the mercy of the Government.

Given the choice between Money (read audit) & respect, CA would love to die for respect than living for money.

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