THE CHARTERED ACCOUNTANT 81 JULY 2004

"Over the years I find a remarkable improvement

in the professionof Chartered Accountancy.

"...I myself am a professional and I strongly

believe that there should be a self-regulation of discipline and

ethics in all institutions where professionals work. And it is

they who can strengthen the system. No outsiders can do it.

“Unless we simplify procedure, the time overruns

and delays will continue. I do believe (that) it should be suffi-

cient, like in all civilized countries, (that) once Chartered

Accountant certifies that he has examined the papers and the

return is in order, there is no room for assessment of that return.

If there is a fallacy, it is his duty to point out to his client... Once

the professional certifies, it should be accepted and if there is

an error later on, it should be referred to the Peers Committee.

"…(If) you want to reduce Government expendi-

ture, it is the best way -- eliminate (the posts of) Income Tax

officers… In America they don't scrutinize all returns. You

file a return, it is accepted but if you are found wrong you

pay very heavy penalty. We can

also accept the same (system).

"We are talking of glob-

alisation, liberalisation, you see

the world is becoming very close

faster than you expected. And

there is pressure on professionals… The warning is … that

you will be superceded by outsiders if you don't improve

your standards. Nobody is going to listen to this argument

that we will not allow foreign CAs to practise in India.

"Our own firms should compete with the best in

the world... We should strengthen our (CA) firms in such

a way that it's no longer monopoly of the West, of the

American firms to come and do business, we should also

go and do business there.

"The Institute (ICAI) should be one of finest, at

least in Asian region… And then we should have a contin-

ued Orientation Programme...

"We have amended (The Company Law) two

times earlier. Nothing came out of that. We need a commit-

tee of experts. And particularly Chartered Accountants,

Company Secretaries and other experts who can really do

some research work...

"You must also study the Competition

Commission because that would be vital for every Chartered

Accountant. You will have to advise your clients that in next

10 years or another 15 years it will be difficult to sustain

against the onslaught of these multinationals.

"I also want you to apply your mind in Dispute

Resolution. It is one of most difficult areas and your role can

be very great in this. I have now set up an Institute (for

this)… where we can settle disputes between the business

houses without intervention of the courts. I think it will be

inaugurated in next two-three months in very modern build-

ing in Vasant Kunj (New Delhi).

“I am not very much attracted to this word 'new cor-

porate governance', That is yet to come to India. Frauds after

frauds do occur. It does not

inspire confidence... We don't

have good corporate gover-

nance. Earlier business houses,

… Tatas, Birlas... people had

confidence in them. All those

established houses have suffered. And a new generation of

companies sprang up suddenly and vanished. This is where

Chartered Accountant should warn.

"I did not agree to provide a criminal offence (pro-

vision) in the Company's Law. There was a suggestion that

prosecute the defaulter, send him to jail, make it non-bail-

able. I said this is not good governance. These are not the

words, which should find mention in the Company Law. We

have to see that self regulation, peers committee, self disci-

pline.. should be the ethos.

"…Peole are dependent on you (CAs). You have a

role in nation-building... The Law Ministry will be forth-

coming to help you in the service of this great institution".

CCHHAARRTTEERREEDD AACCCCOOUUNNTTAANNTTSS DDAAYY

Union Minister HR Bhardwaj Addresses CAs

Excerpts from the speech of Union Minister of Law & Justice Shri H.R. Bhardwaj as the Chief Guestat a function organised by ICAI in New Delhi to mark the Chartered Accountants Day on July 1, 2004

‘CAs have big role innation-building’

Shri HR Bhardwaj

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