ICAI embarks on 'Mission 2006'

Kolkata, April 1: The Institute of Chartered Accountants of India (ICAI) has embarked on ''Mission 2006'' to anchor the economic growth of the nation and facilitate social empowerment.

As part of its endeavor to play a proactive role in policy formulation for economic growth of the country, ICAI has taken up the task of propogating 'MCA-21' e-governance initiative undertaken by the Ministry of Company Affairs.

''The MCA-21 initiative will make compliance of companies easier through online mechanism and we are propogating the initiative through our five regional centres and 106 branches spread throughout the country,'' ICAI president T. N. Manoharan, on a visit to the Eastern Regional Centre, said.

ICAI has also been assigned by the Ministry of Human Resource Development to prepare a performance audit plan of ''Sarvashiksha Aviyan'' initiative to ensure effective utlisation of funds.

''Around Rs 11,000 crore will be raised for the Sarva Shiksha Aviyan through the education cess in 2005-06. The state government will be giving a matching grant thereby making the total amount for the initiative in the fiscal to Rs 22,000 crore.

''The ICAI will prepare a model of performance audit to ensure proper utilisation of the fund,'' Manoharan said.

The ICAI is also preparing accounting standards on financial instuments and derivatives in consultation with the Reserve Bank of India (RBI).

''The draft will be ready by June/July and it will be given nod by October this year,'' the ICAI President said.

ICAI has also constituted an independent committee on Accounting Standards for local bodies to harmonise and improve accounting and financial reporting among local bodies. ''The Chatered Accountants (Amendment) Act, which was given Presidential assent on March 23, 2006, has also allowed multi-disciplinary partnership firms. This will enable Chartered Accountants to enter into partnership with other professionals,'' the ICAI president said.

''A study group has also been formed for legalising the Limited Liability Partnerships with more than 20 members which was previously barred by the section 11 of the Companies Act. This will provide more teeth to the chartered accountants in professional practice,'' he said.

In tune with the changing times, ICAI is also changing its curricula by bringing down the duration to four years from five years now.

''More emphasis is being laid on practical training of three and half years after passing of common proficiency tests,'' he said.

He mentioned that about 7,500 chartered accountants passed out last year and in the campus interviews held on March 2006, 1138 candidates were absorbed by 98 companies. The highest salary offered was Rs 12 lakhs per annum.

Manoharan said the ICAI will be spending around Rs two crore for brand building exercise and advertisement films in the television.

''We will also also try to reach out to school students to shape their acumen towards the profession,'' he said.

ICAI has also engaged the National Institute of Design, Ahmedabad for preparing a logo which can be used by the chartered accountants in their business cards and letters.

The ICAI council has already allowed its members to use prefix 'CA' in their name.

UNI