A Presentation by CA NileshS. Vikamsey

Risks and Rewards of Practice: A Guide for new and Young CAs in Practice

A Presentation by CA Nilesh S VikamseyA Presentation by CA. Nilesh S. Vikamsey

Risks and Rewards of Practice

AgendagSetting the context

S i iStatistics

Practice V/s Industry

Emerging areas

Major challenges in practiceMajor challenges in practice

Strategies and thought process for practice

Growth Strategies

2Risks and Rewards of PracticeCA. CA. NileshNilesh S. S. VikamseyVikamsey

Setting the Context

3CA. CA. NileshNilesh S. S. VikamseyVikamsey Risks and Rewards of Practice

Some Facts and Statistics…


Composition of CA MemberspPractice Vs Industry

Category Total Members Members in practice

Members in Industry

Members in practice (%)

Members in Industry (%)

31 D 12 2 04 837 90 590 1 14 236 44% 56%31-Dec-12 2,04,837 90,590 1,14,236 44% 56%31-Mar-12 1,92,513 83,244 1,09,269 43% 57%31-Mar-11 1,70,610 76,453 94,157 45% 55%31 M 10 1 61 516 73 462 88 054 45% 55%31-Mar-10 1,61,516 73,462 88,054 45% 55%31-Mar-09 1,53,600 70,362 83,238 46% 54%31-Mar-08 1,45,481 68,979 76,502 47% 53%31 M 07 1 39 841 68 944 70 897 49% 51%

Source: ICAI Annual report

31-Mar-07 1,39,841 68,944 70,897 49% 51%31-Mar-06 1,30,946 68,026 62,920 52% 48%

5

Source: ICAI Annual report

CA. CA. NileshNilesh S. S. VikamseyVikamsey Risks and Rewards of Practice

Composition of SMPpParticulars Numbers %Proprietary 34,462 71%p y ,PartnershipPartnership up to 5 12,866 26%P t hi t 5 10 t 1 143 2%Partnership up to 5-10 partners 1,143 2%Partnership up to 11-15 partners 151 1%Partnership up to 15-20 partners 49 0%p p p

Total Partnership 14,209 29%Total Firms 48,671 100%

Source: ICAI Statistics data CCBCAF & SMP Committee of ICAI – www.icai.org.in

Source: ICAI Statistics of 2012CCBCAF & SMP Committee of ICAI – www.icai.org.in

Source: ICAI Statistics of 2012


Composition of SMP (In Mumbai)

20 7 140 19 5 95

No of partnersNo. of Partners No of firms

p ( )

18 2 36 17 1 17 16 1 16 15 4 60

14 - - 14 13 5 65 12 14 168 11 15 165 10 7 70

9 9 81 9 9 81 8 20 160 7 23 161 6 39 234 5 73 365

4 148 92


4 148 592 3 362 1,086

TOTAL 735 3,511


Demographics of SMPsg p

TotalNo of

Availability of SMPs

Sr. no PlacesPartnership Firms

No. of partners

Numbers % Numbers % Numbers Numbers

No of members in Pratice

Sr. no PlacesProprietary Firms No. of Firms

1 Metro cities i.e. Delhi, Mumbai, Chennai, Kolkata.

11,355 33% 5,380 38% 17,940 29,295

2 State Capitals (other than metro cities) 3,611 10% 2,185 15% 7,316 10,927 3 District Head Quarter (other than 1 & 2 above) 15,409 45% 5,662 40% 16,517 31,926


Q ( ) , , , ,4 Other rural areas (other than all above) 4,087 12% 982 7% 2,688 6,775

Total 34,462 100% 14,209 100% 44,461 78,923


Growth of Practicing Units in India

48,357

48,000

49,000

46,372

45,703 45,79246 000

47,000 Growth of Practicing Units in India

,45,604

45,210 45,05045,000

46,000

43,000

44,000

2005 2006 2007 2008 2009 2010 2011

(2011 data is till October 2011)


Growth of Proprietary Firms

34,216

34 000

34,500

32,69733,000

33,500

34,000

Growth of Proprietary Firms

3 ,697

31,95032,165

32,001 31,87132,198

32,000

32,500

30,500

31,000

31,500

2005 2006 2007 2008 2009 2010 2011



Growth of Partnership Firms

14,14114 200

14,400

13,675

13,753

13 94

13,800

14,000

14,200

Growth of Partnership Firms

13,439

13,209 13,179

13,594

13 200

13,400

13,600

12,800

13,000

13,200

12,6002005 2006 2007 2008 2009 2010 2011



Campus Placement Scenariop

Particulars 2012 2011 2010 2009Particulars 2012 2011 2010 2009

Number of Candidates Registered 19,365 15,692 6,042 7,504

No of interview panels 215 400 355 229

No of organizations 129 186 182 126

Number of Jobs Offered 1,451 3,139 2,359 1,282

% Of jobs offered vis a vis noof candidates registered 7% 20% 39% 17%

Source: ICAI Statistics data

of candidates registered 7% 20% 39% 17%

12

Source: ICAI Statistics data


Practice Vs IndustryRelative advantages

Leadership and independence

Multifaceted knowledge of subjects

Relative disadvantages

Independence is subject to ones position in the industry

Departmentalization limits ones exposure to various

Continuous knowledge gain

Wider interaction leads to networking and personality development

Fl ibilit

areas

Knowledge is limited to the areas which one is responsible for

Interaction is with the same set of people in the officeFlexibility Interaction is with the same set of people in the office

Lesser flexibility

Initially industry is better off, but there are possibilities of stagnation. Where as in a well t bli h d ti th d l t d l d t i d t

Relative disadvantages

Future growth in practice is uncertain and

Relative advantages

Future growth is relatively certain

established practice, the rewards are long term and larger compared to industry.

dependent on potential, opportunity and knowledge

Irregular income in initial stages

Initial capital outflow

Regular income

No capital investment

Promotions are based on yearly reviews


Initial capital outflow

Long gestation and transition period

Traditional Areas1. Audit

Company audit

3. Indirect Tax

Compliance Company audit Tax audit Co-operatives societies Internal audit

Compliance Advisory Appellate

Specialized audit

4 Oth2 T ti 4. Other areas

ROC compliance XBRL

2. Taxation Compliance Appellate TDS XBRL

Annual Returns TDS International Tax Transfer pricing Remittance – 15 CB

14

Remittance 15 CB


Emerging Areasg g1. Opportunities in Indirect Taxation with the new

negative list in Service Tax and upcoming GST rules

2. Companies Bill,2012p ,

3. Direct Tax Code

4 IFRS4. IFRS

5. International Taxation

6 V l ti6. Valuation

7. Forensic Accounting and Auditing

8. Systems Consultation

9. Structuring Entry Strategies for Overseas Companies

15

10. NRI services


Emerging Areas11. Intellectual Property Valuation

12. Risk Assessment and Management

g g

13. Performance Measurement

14. Investment Advisor

15. Planning and Structuring Revenue Models

16. Business Support Services

17. Corporate Governance

18. International Accounting Practices

19. Government Schemes for industry.. Subsidies available to SEZ

20. Research and Knowledge management

16

g g

Refer Annexure I :CA. CA. NileshNilesh S. S. VikamseyVikamsey Risks and Rewards of Practice

Microsoft Word 7 - 2003 Documen

http://www.bcasonline.org/webadmin/res_material/resfiles/Practice Growth_Future Thrust Areas_Annx I.doc

Emerging Areas ‐ Untapped opportunities!

Mi S ll d M di E i (MSME )Micro, Small and Medium Enterprises (MSMEs)

No of MSMEs in India - 2009-10 298 Lakhs

Employing over about 600 Lakhs people

Manufacturing about 6000 productsManufacturing about 6000 products

Contribute about/more than 6% to GDP

Source: ICAI Publication of January 2012


Recent Changesg Companies Bill, 2012: The number of Companies audited by a chartered accountant is now limited to

20 including private companies. g p p The bill also restricts auditor from providing certain services specified in it,

directly or indirectly to the Company or its Holding Company or Subsidiary Company or Associate Company.

This will create opportunities for the SMPs as the big firms will now have to This will create opportunities for the SMPs as the big firms will now have to give up some of their assignments.

The new negative list introduced in Service tax and the upcoming GST is another opportunity for Chartered accountantsanother opportunity for Chartered accountants.

Considering the fact that the Ministry has set a target of Rs.1.24 lakh crore for service tax collection during 2012-13, one can imagine the number of people requiring the services of a Chartered Accountant.


Major Challenges in Practice

Economic Challenges

Regulatory Challenges

Technological Challenges

Human Resource Challenges

Personal Challenges


Economic Challenges Rapidly increasing costs Inadequate projection of services Rendered (Value of assuring no materialq p j ( g

misstatement or of no major non-compliance in Taxation is not adequatelyprojected and made known to clients which results in accepting lower fees)

Competitive environment Client loyalties are no longer as stable as earlier (more of professional

relationship) Retaining clients who are growing big is a challenge (if PU does not grow) Traditional Areas of Practice like Audit, Tax etc ‘appear’ over-crowded Increasing cost of executing Assurance Functions (more time taken in compliance

of Auditing & Accounting Standards, Regulatory matters, increasing costs ofg g g y gManpower etc) without corresponding increase in fees

Lack of Billing Skills throws the smaller firms into the ‘Vicious circle of LowFees’


The vicious circle can be depicted as under Low Fees

Lower remuneration to StaffInadequate Staff and

Infrastructural Facilities in Office Low Income for Self

Necessity to increase Gross Fees/ Gross Billing

Take on more volume of low paid work to compensate Low Fees

No time for enrichment of knowledge, technological up gradation, housekeeping, etc.

Inadequate time for family, specially children our main wealth/ asset hence troubled family life

Low Quality of Services Rendered

Low Fees

21

Low Fees


Regulatory Challenges

In Income Tax Reduced no. of Deductions / Exemptions, Simplification & lesser no of scrutiny cases

Professionals are prone to regulatory actions(Peer reviews / QRB / FRRB / Disciplinary Proceedings & other regulatory issues)

Frequent changes in applicable standards and guidelines Too many changes at alarmingly rapid speed Plethora of internal compliances Plethora of internal compliances Cumbersome procedures


Technological Challenges

Database management for ready availability of information

Understanding complex IT environments in which clients are functioning (SAP, Oracle etc)

Understanding how the network environment affects the internal control systems which generate accounting and financial data

Increasing use of technology is making the clients more independent and self reliant

Constant updation on technological front (unlearning – a big challenge)


Human Resource Challengesg

Staff Loyalty and High Turnover

Retaining Talent

Inadequate Training and Practical experience Inadequate Training and Practical experience

Stressed Relationships

Preference to mechanical work

Higher expectations of salary g p y


Personal Challengesg Inadequate communication skills

Inadequate/Improper Society’s/User’s Perception - Necessary Evil? q p p y p y

Lack of good Time Management (Peak or Non-peak periods)

Imbalance between knowledge and execution skills Imbalance between knowledge and execution skills

Docile/Passive Nature/Character of C. A.’s (accept lower fees & delays in

pa ment)payment)

Greed to increase volume of work at any cost

Expectation Gaps

Inadequate funds and improper financial management

25

Keeping updated on technical aspects



Strategies and Thought Process for practice


Practice ‐Way Forwardy

Self Evaluation

Proper Billing

Requisites for a successful practice


Self Evaluation Am I technically sound and have the requisite practical experience?

What is my nature?

What are my interests?

What is my financial position and my financial objectives?

Do I have a clarity where I want to be ultimately in the profession? Do I have a clarity where I want to be ultimately in the profession?

Do I have work-life balance?

Do I have employee comforts?


Self Evaluation

How do I get clients?

Getting new clients can be a very difficult job especially in the current competitive scenario. ICAI does not allow firms to advertise ICAI does not allow firms to advertise However, one can get work through:

1. Relatives2. Empanelment with CAG, RBI, NHAI, etc.3. Networks created during Articleship (with Companies, Executives, Fellow

Articles)4. Word of mouth (By providing good services to fewer clients)5. Study Circles (Network with Professionals)6. Business Development Initiatives


Self Evaluation

Should I work as an employee in a firm and then set-up my practice after gaining experience?g g p

Should I be a retainer with a CA firm/Industry as well as have my own small practice? This will ensure regular income, good experience, better networking opportunities etc

Should I join an existing firm and grow into the partnership role in the fi ?same firm?

Do I want to specialize in an area?


Specialization….What you want to be!

Specialized Stores Retail Stores

Polyclinic


Specialization….What you want to be! Initially, one may have to provide all services for getting new clients…

However specialization is the need of the hour!!!

In the era of super specialization, where everybody wants the best from the best, there is no scope for providing mediocre services

Therefore it is better to select your area of expertise and provide specialized services pertaining to that area

There are a number of small firms in the market providing core business services to a large number a bigger firms

Such firms have gained great respect and recognition from the professional and the business communityGrowth does not necessarily mean expansion in size…..It also

33

Growth does not necessarily mean expansion in size…..It also means excelling in what you do!!!


Positioning…Where you want to be In marketing, positioning is the process by which marketers try to create an

image or identity in the minds of their target market for its product, brand or

g y

organization

Similarly, SMPs need to position themselves in the market to ensure that they h i h ki d f k d h i h ki d f liget the right kind of work and the right kind of clients

Since the bigger segment is virtually out of reach of a start-up business, identify whether you want to be in the small service provider segment or in the middlewhether you want to be in the small service provider segment or in the middle service provider segment.

You can gradually and eventually grow from small to medium and then big!!! You can gradually and eventually grow from small to medium and then big!!!


Rightsizing Rightsizing means ensuring that your firm has the right kind and amount of

resources to deliver the output expected by clients

This growth strategy is a corollary of ‘Specialization and Positioning’

h d id d h b d h b i i Once you have decided how you want to be and where you want to be, it is important to ‘RIGHTSIZE YOURSELF!’

Rightsizing involves having enough man power to deal with all kinds client Rightsizing involves having enough man-power to deal with all kinds client aspirations

Rightsizing ensures that resources are not scarce or wasted but are just in the Rightsizing ensures that resources are not scarce or wasted but are just in the ‘RIGHT’ amount to help you achieve your objectives.


Comments of Many Practicing CAsy g

Clients are threatening to shift work to some other CA since he is charging lower fees

There is a lot of competition amongst us

Clients often pay fees only when I start next year’s work

Apart from CAs other professionals like STPs and ITPs also add to competitive

pressures

Increase in fees over the years becomes difficult as clients make roving inquiries with

others

Far too many changes at alarmingly rapid speed


The Problem of remuneration / feesMan-Hour Rates CAs earnings at the minimum is dependent on time Hence apart from generating good fees out of Advisory role, p g g g y

maximize earnings out of time Time sheets are a must for each assignment / person in the firm

Refer Annexure II :

“Time is the key factor for a CA”

T i t th h t h ld id f t lik

Microsoft Word 7 - 2003 Documen

To arrive at the man hour rate, one should consider factors like: Normal working days in a year (240 to 260) Normal working hours devoted to clients (i.e. excluding time spent for Administration,

Continuing Education, Research, Updating, Reading, etc.)Co u g duca o , esea c , Upda g, ead g, e c.) Office Overheads Comparative House hold expenses Opportunity Cost, etc


http://www.bcasonline.org/webadmin/res_material/resfiles/Time Value Statement - Annx II.doc

How to Overcome the Problem of remuneration / fees/

The man hour rates for each CA would depend on :

S i li d Skill f h CA Specialized Skills of the CA

Nature and Type of Job / Clients

S i i i h P f i Seniority in the Profession

Overheads of CAs

E d R i Expected Remuneration

Quality & Service Levels

P k / k Peak season / non peak season


Calculation of Man Hour RatesCalculation of No. of Working days in a month

No. of Working days in an Year 365Less: i. Holidays for Sundays 52

ii. No. of Days for further continuingeducation

16

iii. National Holidays, Bank Holidays and unscheduled Holidays on account of social reasons,Bandh, etc. 15

83282

L A l L i l di Si k l t 30Less: Annual Leave including Sick leave, etc. 30 No. of Working days in an year 252Therefore No. of Working days in a month 21g y


Calculation of Hourly/ Daily Rates of Fees Rs

Minimum Expected Net Monthly Remuneration for a C.A. 50,000 100,000 200,000 500,000 10,00,000

Minimum Expected Net YearlyRemuneration

600,000

1 000 000

1,200,000

1 000 000

2,400,000

1 000 000

6,000,000

1 000 000

1,20,00,000

10 00 000Add: Overhead Expenses

(see next slide)

1,000,000 1,000,000 1,000,000 1,000,000 10,00,000

1,600,000 2,200,000 3,400,000 7,000,000 1,30,00,000

Therefore Rate per Day

Therefore hourly rate

6,667 9,167 14,167 29,167 51,587

1,667 2,292 2,542 7,291 12,897Therefore hourly rate(assuming 4 hours chargeable) *(assuming 6 hours chargeable) *

,6671,111

, 91,528

,52,361

7, 94,861

,8978,598

* Substantial time of a day goes into Administration, training, etc. i.e. non billable time 40CA. CA. NileshNilesh S. S. VikamseyVikamsey Risks and Rewards of Practice

Details of Overhead Expenses p Salaries & Stipend of Office Staff and for idle time of chargeable staff Electricity Printing & Stationery(including Photo Copy & Computer Stationery) Interest Motor Car Expenses Subscriptions, Books & Periodicals Insurance (including Professional Indemnity Insurance) Insurance (including Professional Indemnity Insurance) Repairs Seminar Expenses Computer Expenses Sundry Expenses Telephone Expenses Depreciation Rent : Consider current market rates notwithstanding the Rent : Consider current market rates notwithstanding the

nominal rates paid for old tenancies Interest : Consider Interest on own capital (opportunity cost) Depreciation : Depreciation should be also considered at replacement rates

Minimum Recommended Scale of fees by ICAI: 41CA. CA. NileshNilesh S. S. VikamseyVikamsey Risks and Rewards of Practice

Adobe Acrobat Document

http://www.bcasonline.org/webadmin/res_material/resfiles/ICAI- Minimum recommended fees.pdf

Identify your clientsy y

While initially, a firm would like to grab as many

assignments as possible, as a firm grows it becomes

important to identify those clients which have the

potential to add value to the firm…..


Grade your clientsy

Follow the Pareto Principle

80% of the events / activities in life contribute to 20% of the

Follow the Pareto Principle…..

results and 20% of the events/ activities contribute to 80% of

the results. Hence, successful people concentrate on “important

few” and pay less attention to “trivia many”

Focus on 20% clients giving 80% revenueg g


Clients’ Rating / Profilingg / gOne can also do an ABC analysis/ rating of clients based on differentparameters like:

i. Fees per Client- Good / Moderate/ Poor

ii. Quality of Client- Progressive/ Good Housekeeping

iii Potential of Growth of Clientiii. Potential of Growth of Client

iv. Profile Value: Clients adding profile to the firm


Clients’ Rating / ProfilingClients can be further classified under Three Categories: Quality lover and fair Moderate and Practical

g / g

Moderate and Practical Miser(a) Appreciates grudgingly but has inertia to pay (Generally always complaining)(b) Considers CAs as glorified clerks and with no concept of value for CA( ) g p(even first time offender clients should be eyed with suspicion)

Can recover fees only from the first two type of clients.

We do not have the luxury or resources to chase sticky debts regularly

The third type of clients can described by the definition of Cynic given by Oscar Wilde –“What is Cynic?” a man who knows the price of everything and the value of nothing“What is Cynic?” – a man who knows the price of everything and the value of nothing

After few years, dispense with third category of clients since they take precious time withoutcommensurate revenue


Requisites for a successful practice

Put Service - First Attitude

People with a money-first attitude become so money-conscious that they forgetmoney cannot be harvested unless they plant the seeds that grow the money. Andthe seed of money is service. That is why “put-service-first” is an attitude whichy y pcreates wealth. Put service first and money takes care of itself.

You don’t get an increase in fees on the promise of better performance: you get itonly by demonstrating better performance You can’t harvest money unless youonly by demonstrating better performance. You can’t harvest money unless youplant the seeds that grow money.

There never is a demand for anything second-class, especially when it is given ay g , p y gfirst-class price tag.


Requisites for a successful practice q p Networking with like minded professionals for rendering different types of services to prospective clients.

Discuss serious issues with peers and seniors to get different angles of the same problem

Value addition to client even in compliance work.

Remove the perception of being a “Necessary evil” in audit and taxation in the minds of the client. One needs

to add value to clients on an ongoing basis and document value added to client.g g

Be patient as there may be a long gestation period of at least 3 years or more

Increase delegation of work as practice starts growing

Plug Revenue Leakages (Certification, Oral advisory on phone / meeting etc.,)

Do Proper Client Appraisal- whether he has the ability & willingness to pay proper/ reasonable fees

Job assignment should be clear to the CA and the client by documenting it in the quotation / engagement letter Job assignment should be clear to the CA and the client by documenting it in the quotation / engagement letter

to avoid unpleasant expectation gaps

Quote fees for work only after proper analysis of work, time & man power required

In case of new work/ large work, take advance payment/ installment of fees as the work progresses


Requisites for a successful practice Improve office area – better large area, good furnishing, good work ambience

People – Train people including Articles (clients are observant)

Technolog se technolog effecti el for impro ing q alit prod cti it management kno ledge

q p

Technology – use technology effectively for improving quality, productivity, management, knowledge,

research, tracking work,etc

Rendering Personalized Service with a more broader exposure covering Audit, Income Tax , Service Tax ,

VAT etc)

Provide multi Disciplinary services

Need to network / collaborate / merge

Office timing, system of appointment, time at department, time for introspection, time for physical fitness,

time for familytime for family.

Empanel with various authorities

Regular updation of knowledge through reading various professional publications and keeping in touch with

recent updates.


Requisites for a successful practice Requisites of a C.A.

You get what you deserve. We should resolve to raise our standard of knowledge and

q p

competency and give satisfactory service to our clients.

Make Products of Services (Preparation of Manuals, Company Formation, Compliance

di )audits, etc.)

Systemize work procedures in writing

Billing and Receipts of Fees Charge as soon as the work get over. “Strike when the Iron is Hot” Payment should be received immediately. Inculcate the habit in clientsy y Reminders by email should be sent regularly If fees are delayed for unduly long period, do not do further work of the clients

Do not do further work till earlier fees is paidp


Requisites for a successful practice Acquire new knowledge and skills in a continuously and rapidly

changing environment for e.g. new laws like IFRS, GST, DTC, XBRL,Revised Schedule VI Personality Development Public Speaking etc and

q p

Revised Schedule VI, Personality Development, Public Speaking etc. andfor improving technical skills for audit, taxation, etc which will help inupward movement of practice.

Make room for accepting new good clients/ work

i i i i Create & Devote time on Challenging Assignments requiring more time.E.g. Business Advisory Services, Investigations, Corporate Restructuring,FEMA, Information System audit, Valuation, Business ProcessOutsourcing (BPO) etcOutsourcing (BPO), etc.


Requisites for a successful practice Increase fees every year by minimum 10 to 20%. Increase more when the

clients/ economy is growing / doing well

q p

Do not fall in the Trap of Lump sum fees for various services

Send detailed billing of work done

R t f k t lik i ti & t ti Recover out of pocket expenses like conveyance, printing & stationery,traveling, etc.

Refer Annexure III:Microsoft Word 7 - 2003 Documen


http://www.bcasonline.org/webadmin/res_material/resfiles/Detailed Billing of Work - Annx III.doc

After few years of practiceConsider merging small firms which leads to specialization

y p

Each partner can look after a specific area.

Increasing networks and client base.

It also increases the capacity of the partners to absorb huge costs eg. Personnel, IT Costs, overheads etc.

Considering competition from the bigger firms with multinational presence, prospective clients’ need, demographics and market trends, ICAI has taken initiatives in the form of capacity building measures to develop Indian Chartered Accountant p y g pfirms.

The concept of capacity building measures basically includes Networking, Merger

52

& Demerger and Practice in Corporate Form.


As Henry Ford saidy

Leadership is the thing. Whatever you do as a leader, if you can show that you value

h deach and every person on your team, you will attract talent.

Be ready to revise any system, scrap any method, abandon any theory, if the success of y y, f fthe job requires it…


Growth Strategiesg

I. Networking

II. Merger and Demerger

III Practice in a corporate formIII. Practice in a corporate form


NetworkingA network amongst two or more firms registered with ICAI. The object of network is to use the collective resources of the affiliates for execution of professional services of one or more types at one and/or at multi-locational points.

g

The resources would include financial, technical and other logistic support required to execute the professional assignments.

Stepping stone for the mergers and acquisitions of the firms.

Once one is comfortable with this kind networking one can go for bigger partnership firms get the advantage of the big work to follow This will help the firms to build competitiveget the advantage of the big work to follow. This will help the firms to build competitive advantage over others. The firms will also be able to build up their brands.

The survival of small chartered accountants firms depends on their ability to re-engineer themselves. This type of networking will be one of the ways of re-engineering of the firms.

Let us make the best out of the facility provided by the Institute!!!


Merger & DemergerMerger is the fusion of two or more existing firms.

In order to have an orderly and sustainable growth of the CA firms, it is desirable that the coming together of the firms begins with networking and then matures to mergers.

h h ld b ff d d l i d d The mergers should be effected to develop core competencies and to render professional services of a larger range spread over bigger geographical area. A merged big entity will always be superior to a network arrangement.

The merger has to precede the demerger and demerger can be demanded within a period of 5 years from the date of merger.

The Demerged Firm is entitled to practice in its old trade name, which existed at the time of merger.


Practice in corporate formpTo empower the members to face the emerging challenges in the service sector as well as to equip them for the opportunities in the non-audit service area, the C il d id d ll b i i h ld h ffi f M iCouncil decided to allow members in practice to hold the office of Managing Director, Whole-time Director or Manager of a body corporate.

The body corporate should be engaged exclusively in rendering Management The body corporate should be engaged exclusively in rendering Management Consultancy and Other Services permitted by the Council



Remember to protect your intangiblesp y g Human Capital Existing Clients Existing Clients Client’s Satisfaction Own Investment & Fund Management abilitiesg Knowledge & Skills Professional Networks Health and Happiness


Brand your servicesy

Compliance To ConsultingCompliance To Consulting

Value ValueValue Protection To Value

Creation

Service Provider To Solution

Provider

Size To Positioning


"A wise man ill kwill make

more opportunities than he finds "than he finds.Francois Bacon


I acknowledge Bhavesh Vora, Tushar “Doctor” & other colleagues’ valuable “prescriptions” which have helped to “cure” this papervaluable prescriptions which have helped to cure this paper.

Our sentiments can be echoed with a poem written by Shri A R K i h th ti b f Ch b St d Ci lKrishnan, the poetic member of Chembur Study Circle:

If Practicing CAs are not adequately paidGood number of them will fade

The aura of CA profession will jadeAnd very few Practicing CAs will be madeAnd very few Practicing CAs will be made.


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A Presentation by CA NileshS. Vikamsey