President Message March, 2011
“The difference between the impossible and the possible lies in a person's determination.” - Tommy Lasorda
Dear Professional Colleagues,
have witnessed the speech of Finance Minister while presenting the Budget for the year 2011-12 on 28th February, 2011. With this, India has completed 20 years in the pursuit of Liberalisation, Privatisation and Globalisation, known as LPG policy being in force since 1991. The path shown by the original architect of Indian reform process, who is the present Prime Minister of India, has gathered momentum and being acknowledged by all the economic superpowers in the World. The optimism in the economy has enabled the present Finance Minister to take certain bold measures while at the same time making certain submissions. However, the direction of growth he has envisioned may definitely lead the Indian Economy for a better performance this year. The highlights of this year’s budget include subsidies through cash transfers for Kerosene, Fertilisers and Cooking Gas; process of reforms boosted by FDI limit in insurance being raised to 49% through one of the bill towards revival of seven bills from financial sector, clear road map of issuing 10 lakh ADHARs per day through UIDAI from October, 2011 onwards, continuation of food subsidy at around same figures as that of last year, etc. India is among the few countries having good Debt to GDP ratio beating even the estimates of 13th Finance Commission of India. Permitting Foreign Retail Investors to invest in Indian Mutual Funds gives a strong message about the health of the Indian Economy. The clarity in the introduction of Direct Tax Code and countrywide Goods and Service Tax is a pointer in the right direction. Allowing PSUs to raise a mammoth amount of Rs.30,000 Crore by tax free infrastructure bonds is also a welcome step. However, Green Initiatives are yet to be properly accounted for as they have the potential to make the planet more habitable.
On the popular side, raising the limit of Tax Free income to Rs.1.80 lakh may leave much to be desired, but lowering the age of Senior Citizens from 65 to 60 and special treatment to those above 80 years deserves to be applauded. The widening of scope of indirect taxes may appear to be a dampener. However, on the whole we can say Finance Minister has tried his best to hit most of the right buttons through his budget for the year 2011-12.
Prior to that, Economic Survey for the year 2010 was released and Railway budget was presented. Both of these events have indicated Indian economy to be in a position to meet the requirements of various stakeholders.
We are hopeful during the budget session of the Parliament, the august house would pass the Companies Bill, 2009, thus paving the way for meeting the longstanding wishes of Cost and Management Accountants on various professional opportunities. We further expect name change of the Institute is considered favourably with appropriate amendment in the act governing the Institute.
We called on the new team of Officers in the Ministry of Corporate Affairs, Government of India. We met Shri D K Mittal, IAS, Secretary to the Government of India, Ministry of Corporate Affairs and shared his vision for Ministry. Mr. M Gopalakrishnan, Vice President; Mr. Chandra Wadhwa, Past President and Mr. Kunal Banerjee, Past President and I were the members of the delegation.
I alongwith Mr. M Gopalakrishnan, Vice President also met Mr. Sudhir Mittal, IAS, Additional Secretary to the Government of India, Ministry of Corporate Affairs and greeted him on behalf of the ICWAI on his assumption of new office.
I visited Surat South Gujarat Chapter of Cost Accountants on 23rd January, 2011 to attend the programme on Investor Awareness and Prize Distribution for meritorious students of the Chapter.
I attended a Student Conference organised by WIRC on 24th January, 2011 through Baroda Chapter of ICWAI.
I attended an excellent programme having a large number of participants on 'Interaction of the Members and Students with the President and other officials of ICWAI' organised by Vijaywada Chapter of ICWAI on 25th January, 2011. I congratulate the team of Vijaywada Chapter headed by its Chairman for quality arrangements for this programme.
The Vaastu Puja of Hyderabad Centre for Excellence was performed on 19th February, 2011 and I had the opportunity to be present along with our Vice President and Immediate Past President. The building is coming up very well and will be a State of Art Facility for conducting training programs and also mini conferences. The first step taken by the Centre is to form Special Interest Groups which would be bringing out publications related to Risk Management Framework, Business Performance Management, Revenue Management in the Pharmaceuticals and Infrastructure sectors. Hyderabad Chapter is putting in good efforts to encourage young members into this group where in they will be exposed to detailed research in bringing out the publications under the guidance of accomplished senior executives from the industry. I congratulate the team of Hyderabad Chapter for the good efforts.
I was part of a National Seminar on 'Globalised Business Environment-Emerging Issues & Challenges’ organized by KBP College, Navi Mumbai on February 25th & 26th, 2011.
I inaugurated a Seminar on 'Forex Market Overview & Technical Analysis' organised by Navi Mumbai Chapter of ICWAI on 26th February, 2011.
Initiatives during the month of February, 2011
Professional Development Directorate
Shri M. Gopalakrishnan, Vice President, ICWAI, Shri A.N. Raman, CCM, ICWAI & President, SAFA and Senior officers of ICWAI had a meeting on 14th February, 2011 with Mr. B.B. Pandit, Director General (Audit) and Shri Amitabh Mukhopadhyay, Director General (Training & Communication), Office of the Comptroller & Auditor General of India regarding Environmental matters relating to Business Sustainability, Financial Reporting and Auditing. The recent publication of two Management Accounting Guidelines (MAGs) with the technical support from the CMA Canada in 2009 on:
1. Implementing Corporate Environment Strategies and
2. Tools and Techniques for Environmental Accounting were appreciated by them.
ICWAI offered to associate and work with CAG office on the following matters:
1. In developing and conducting Training Modules on Environmental Cost Management.
2. In conducting Training Modules on Cost & Management Accounting.
3. Reviewing Key Audit Frame work/ Tool Kit and to provide necessary inputs relating to cost and management dimensions; and
4. To facilitate tweaking of directions under Section 619(3) of the Companies Act, 1956 by CAG to incorporate best practices of Cost Accounting & Environment Management Accounting.
The Institute is hopeful of positive outcome from CAG Office on the above matters.
1. Activities relating to elections for Council and Regional Councils to be held on 3rd June, 2011 are going on in full swing. Members are requested to go through the details published in this issue of journal as well as website of the Institute www.icwai.org.
2. A book containing updated compilation of the Cost and Works Accountants Act, Rules and Regulations are available for sale from the Headquarters of the Institute. Persons interested to procure the same may contact the Institute’s offices.
The CEP Department organized the first batch of IFRS Certificate Course at New Delhi during 16-20 February, 2011 and 2nd batch at Kolkata during 23-27 February, 2011. The 3rd, 4th and 5th batches are being held and Hyderabad during 2-6 march, 2011 , Chennai during 9-13 March, 2011 and Mumbai during 4-8 May, 2011 respectively. The Certificate courses are being well attended by Senior officers from public and private sector, banks, multi-nationals including young members and students of the Institute. The Course has been very much appreciated by all the participants and also by the organizations who sponsored participants for the course.
Results of the December, 2010 term of the examinations of the Institute have been announced. I congratulate all the students who passed their examinations and urge the others who could not clear the examinations to work hard to do better in next term.
Training & Placement Directorate
You may recall ICWAI has been organising Campus placements for its qualified candidates. As a part of this process, nearly 800 students of June 2010 batch have been placed in about 48 Companies. The average pay package offered to them was Rs. 6.00 Lakhs p. a. With highest package offered being Rs. 12.00 lakhs p. a. I am happy to inform that arrangements have been made for Campus Placements for December, 2010 pass outs also and more and more Companies have expressed their willingness to absorb our students. I am sure this will benefit our students in a big way.
Recruitment in the Institute
Recently Institute has undertaken a massive exercise to recruit professionals at various levels in the different Directorates at its offices in Kolkata and New Delhi. I hope this would result in better resolution of issues faced by our students and members, once all the officers join the Institute.
I wish all the members on the occasion of Maha Shivaratri and Holi (Dol Jatra),