CHARTERED ACCOUNTANTS

Union Minister HR Bhardwaj Addresses CAs

DAY

CAs have big role in nation-building

Shri HR Bhardwaj

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

"O

ver the years I find a remarkable improvement times earlier. Nothing came out of that. We need a commitin the professionof Chartered Accountancy. tee of experts. And particularly Chartered Accountants, "...I myself am a professional and I strongly Company Secretaries and other experts who can really do believe that there should be a self-regulation of discipline and some research work... ethics in all institutions where professionals work. And it is "You must also study the Competition they who can strengthen the system. No outsiders can do it. Commission because that would be vital for every Chartered Unless we simplify procedure, the time overruns Accountant. You will have to advise your clients that in next and delays will continue. I do believe (that) it should be suffi10 years or another 15 years it will be difficult to sustain cient, like in all civilized countries, (that) once Chartered against the onslaught of these multinationals. Accountant certifies that he has examined the papers and the "I also want you to apply your mind in Dispute return is in order, there is no room for assessment of that return. Resolution. It is one of most difficult areas and your role can If there is a fallacy, it is his duty to point out to his client... Once be very great in this. I have now set up an Institute (for the professional certifies, it should be accepted and if there is this) where we can settle disputes between the business an error later on, it should be referred to the Peers Committee. houses without intervention of the courts. I think it will be "(If) you want to reduce Government expendiinaugurated in next two-three months in very modern buildture, it is the best way -- eliminate (the posts of) Income Tax ing in Vasant Kunj (New Delhi). officers In America they don't scrutinize all returns. You I am not very much attracted to this word 'new corfile a return, it is accepted but if you are found wrong you porate governance', That is yet to come to India. Frauds after pay very heavy penalty. We can frauds do occur. It does not Why only argue, you can be judge, you can inspire confidence... We don't also accept the same (system). "We are talking of glob- be arbitrator, you can be interlocutor, you can have good corporate goveralisation, liberalisation, you see be a mediaor, you can be a negotiator... because nance. Earlier business houses, you know the art of figures the world is becoming very close Tatas, Birlas... people had faster than you expected. And confidence in them. All those there is pressure on professionals The warning is that established houses have suffered. And a new generation of you will be superceded by outsiders if you don't improve companies sprang up suddenly and vanished. This is where your standards. Nobody is going to listen to this argument Chartered Accountant should warn. that we will not allow foreign CAs to practise in India. "I did not agree to provide a criminal offence (pro"Our own firms should compete with the best in vision) in the Company's Law. There was a suggestion that the world... We should strengthen our (CA) firms in such prosecute the defaulter, send him to jail, make it non-baila way that it's no longer monopoly of the West, of the able. I said this is not good governance. These are not the American firms to come and do business, we should also words, which should find mention in the Company Law. We go and do business there. have to see that self regulation, peers committee, self disci"The Institute (ICAI) should be one of finest, at pline.. should be the ethos. least in Asian region And then we should have a contin"Peole are dependent on you (CAs). You have a ued Orientation Programme... role in nation-building... The Law Ministry will be forth"We have amended (The Company Law) two coming to help you in the service of this great institution".

THE CHARTERED ACCOUNTANT

81

JULY 2004