I am communicating with you when the Finance Ministry will be giving final touches to the Union Budget, 2022, which shall be presented on 1st February, 2022. As always, there is euphoria all around for a progressive budget. Expectations are that the impact of COVID will gradually recede, and with it, the pressure for allocation of funds to mitigate the impact of the pandemic will recede. It is expected that funds allocation will move to sectors that would enable the creation of employment, easing of logistics issues, creation of world class eco system for smooth functioning of manufacturing sector, digitized businesses as well as state of the art banking and financial set up. There is clamor for allocation of substantial funds towards agriculture to improve rural spending. This will in turn have a spiral effect on spending and demand creation. On the taxation front, there are expectations for tax breaks for salaried class, rationalization of tax rates to bring parity amongst all taxpayers, and ease of compliances.
We all are waiting with bated breath to know how far expectations are met when the Finance Bill, 2022 is tabled by the Hon. Finance Minister Ms. Nirmala Sitharaman. However, being an optimist, I am confident that we shall not be disappointed.
We all have passed through sufferings during the past two years, and there were adversities that had to be faced. However, we are coming out with resilience, and due to facing such adversities, we know what happiness means. Here I would share a thought-provoking quote:
Adversity is another side of the same coin of happiness,
And our life is an interplay of both in order to have meaning in life.
In our professional career too we have passed through such adversities which may have been faced due to natural calamities like the one we encountered in the past two years as well as due to fast changing professional landscape. During such times to win over adversity, we should follow an ABCD process. Initially, accept that adversity is part and parcel of our professional life, and we shall not be able to attain success without experiencing it. After accepting this fact, one should behold (embrace) adversity. Then let us challenge the adversity. This will enable one to face the situation and follow the path to success. This is achieved through devotion and perseverance towards the goal, and one will be detached from adversity.
Now I turn my discussion to the two current trending topics in the financial and capital markets. First is the cryptocurrencies. The world’s largest cryptocurrency, Bitcoin has seen its value eroding to the extent of 20% since the start of 2022 and has almost halved from its all-time high in November of USD 69,000. There may be great potential in cryptocurrencies as a digital asset, but currently, there are many grey areas that have to be addressed, and investors should be aware of the pitfalls while dealing with cryptos. Worldwide, central bankers are also evaluating issuing central bank digital currency (CBDC). Reserve Bank of India is contemplating ways to implement a CBDC in phases. In its recent report ‘Trend and Progress of Banking in India 2020-21’, it has elaborated on its thought process on a CBDC. Its initial recommendation is to “adopt basic models initially, and test comprehensively so that they have minimal impact on monetary policy and the banking system”. We have to comprehend its implications and be ready for the dynamic changes which will take place in the way business transactions are settled going forward.
Second is the thrust towards the growing relevance of sustainability, measured through the Environmental, Social and Governance (ESG) parameters.Its significance in the financial markets cannot be overlooked. ESG investing has become one of the most rapidly expanding sustainable investing methods. International investors with global investment portfolios are increasingly calling for high quality, transparent, reliable and comparable reporting by companies on ESG matters. As professionals, we have to be conversant with the trends that will open up newer vistas of professional offerings.
BCAS constantly evaluates the opportunities which can be brought to the professionals to make them aware and curious to explore further. Regarding cryptocurrencies, BCAS made a compilation of articles published in the BCA Journal, distributed them to its members, and made them available on Social Media platforms to disseminate knowledge to the public. These articles covered legal and accounting aspects.
BCAS organised a lecture meeting to provide insights into the developments on ESG Reporting at global and local levels. A young Chartered Accountant, CA Spandan Shah, addressed the meeting from London.
During January, a case studies based two days’ Workshop on Valuations, addressed by five valuation experts, was also conducted successfully. The workshop dealt with valuations during mergers, demergers, slump sales, cross border transactions, issue of ESOPs/Convertible instruments, as well as for intangibles and startups.
A new area of professional opportunities which is in demand was also deliberated on the BCAS platform through an Expert Chat on ‘How to develop Forensic Accounting and Investigation Practice’. This was attended in large numbers, and great insights were provided by veterans of forensic practice CA Chetan Dalal and Mr. Kanwal Mookhey.
Further, one more practice area opening up for CAs is risk consulting practice. An awareness session ‘Build your own risk consulting practice’, jointly with the Institute of Risk Management (IRM) India Affiliate, is scheduled on 11th February to be addressed by two eminent risk consulting professionals, Mr. Rama Warrier and CA Hersh Shah. I urge you all to take advantage to understand the opportunities in the risk consulting space.
As I commenced my message by discussing Budget 2022, I am happy to inform you that BCAS had an opportunity to convey its viewpoints on expectations on taxation proposals through a budget special interaction for ETNow Swadesh channel. By the time this message reaches you all, the session will have been aired on 31st January, 2022. I hope our views would have been addressed in the upcoming Budget. You all may view the same on their YouTube channel.
The annual Public Lecture Meeting on ‘Direct Tax Law Provisions of the Finance Bill, 2022’ is scheduled on 5th February at 5.30 PM on Virtual Platform. It will be addressed by CA Shri Pinakin Desai. I am sure you all will take benefit of expert analysis by the speaker.
I am happy to share that TAXCON, an annual taxation event that was jointly organized by Mumbai based professional associations, has been revived after more than a decade. TAXCON-2022 – Triveni Sangam – Tax, Tech & Accounting is organized in Hybrid Mode on 18th and 19th February by six professional associations. The topics selected and the speakers to address them will enrich your knowledge base. I appeal to all to register for this event at the earliest.
Today, I have discussed the changes which are taking place at a breakneck speed and the professional opportunities that are unfolding before us in new areas where we have to deep dive and prosper. To sum up the pace of change, I leave you all with a thought narrated by my GURU Mahatria Ra.
The world is growing so fast…..
Even before you say “It is not possible”,
You are interrupted by someone who is already doing it.
Best Regards,
Abhay Mehta
President
