'CAs to prepare for challenges of WTO regime'

New Delhi, July 1: Company Affairs Minister Prem Chand Gupta today called on the Institute of Chartered Accountants of India (ICAI) to prepare itself to successfully meet the challenges emerging in the services sector under WTO regime.

Highlighting the need to strengthen the regulatory framework within which businesses in India operate, the Minister said CAs should ensure that misconduct by individuals in firms do not go unpunished. He said the credibility of financial disclosures made by corporates was important for stakeholders and investors' confidence.

Addressing a function organised by the Institute of Chartered Accountants of India (ICAI) on the occasion of the 58th Chartered Accountants' Day celebrations here, he said credibility of the profession will depend on the manner in which CAs respond to the needs of society and remain accountable to the nation.

In this context, he welcomed the move to equip members to deliver professional services of the best standards with greater credibility, reliability and accountability, Mr Gupta complimented the Institute for its initiative to launch a new scheme of Education and Training, drawn on the basis of Standards set by the International Federation of Accountants to attract the best talent for entry into the profession.

During the past two years, the Ministry of Company Affairs had initiated a number of steps including introduction of the proposed limited liability partnership laws and ushering in paperless filing of papers known as MCA 21, in the jurisdiction of Registrar of Companies of 12 out of 20 centres so far.

It was on July 1, 1949 that the ICAI came into being with the enactment of the Chartered Accountants Act, 1949.

Representatives from Pakistan, Hong Kong, Nepal and Japan attended the function to commemorate the founding day of ICAI.

Speaking on the occasion, ICAI President T V Manoharan noted that the Insititute had grown in strength and at present had about 30,000 members and 3,000 students with 15 chapters abroad.

CAs were involved with various Central ministries to give policy inputs and in framing legislation, he said.

Mr Anwarul Hoda, member Planning Commission and former deputy Director General of WTO, Geneva, said in the future, architects, accountants and engineers would move freely crossing international borders while low skilled or qualified services would not be in demand.

Syed Mohammed Shabbar Zaidi, President, Institute of Chartered Accountants of Pakistan, noted that similar concerns facing the accounting profession in India also prevailed in Pakistan.

Stating that the perspective of the whole profession was changing, Mr Zaidi said unlike in the West, small, family and medium enterprises were predominant in the Indian subcontinent. The accounting profession in this case had to bridge the communication gap between the Government and small businesses which were facing acute competition from neighbouring China.

UNI