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October 2011

FROM THE PRESIDENT

By Pradip K. Thanawala
Chartered Accountants
Reading Time 6 mins
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Dear readers,

Glass half empty or half full?

If one were to believe all the reports coming in over the last one month it would be easy to conclude that India was in the midst of a national crisis. Everything that could go wrong was going wrong. Over the last year or so scams were breaking out with a regularity that would put a railway timetable to shame. A nation that was celebrating a World Cup victory in its ‘national’ pastime, cricket had failed to win a single match against England on a miserable tour. The economy which had recovered from the 2008 crisis seemed to be floundering. Inflation was worsening and there seems to be no respite on the horizon.

A discussion in a group of friends set me thinking. Just six months ago I had persuaded the only son of a friend of mine to return to India after having completed his education explaining to him that this was the country of his dreams and not the west. In a recent conversation the young lad asked me whether I still believed what I had told him six months ago.

I think it is really a question of perception as to whether the glass is half empty or half full. The media seems to report only those stories which garner the highest TRP ratings. Corruption has been the buzz word for the last few months. It is undoubtedly true that it is a malaise that has been eating into our national fabric for over six decades and has now reached alarming proportions. However, that does not mean that there are no honest citizens left. Every day one hears stories of individuals who have shown exemplary honesty and courage. These events do not even get a mention, let alone be reported in the media. Every time there is ‘breaking news’ on television it is of an accident, a scam, a robbery or a murder. Has everything good stopped happening in this country? I think the media needs to show far more restraint and balance than it has been showing at present. There are many positive things happening, they need to be not only reported, they need to be highlighted.

While corruption needs to be exposed we also need to tell the world that we have a judicial system where even the high and mighty land up in jail. The system undoubtedly has substantial lacuna, and is painfully slow, but in retrospect it may still be a better system than the instant justice that is being handed out in other parts of the world. Ours is a judicial system where the accused has the fullest opportunity to present his case and not a system where the administrators decide as to who the criminal is and dispense justice.

Undoubtedly the economic growth has slowed down substantially and is a cause for concern, but it is heartening to note that we have an RBI Governor who while listening to what the Government says does not bow to its demands. One may disagree with the actions of the regulator, but the fact that he is independent is indeed satisfying. We may have fallen from grace in our national pastime, that is cricket, but we are possibly on our way to regaining our strength in hockey.

I think in these hard times there needs to be a change in attitude. Society must bring all problems to the fore and focus on solving them, but as it tackles the ills it must also focus on the positive things that happen. I am in entire agreement with what the spokesman of a prominent national party said in a panel discussion on television. When asked as to why representatives insist on disrupting the Parliament rather than focussing on the problems and debating them, he candidly admitted that people who rush into the well of the Lok Sabha get far more publicity than those who make well-researched speeches. If the media is going to reward and report triviality, then that is what we are going to get.

What is true of the attitude of society is equally true of laws and regulations. The law must undoubtedly punish the wrongdoer, mete out severe punishment if the offence so warrants, but must also have provisions to reward compliance. We see newspapers filled with the advertisements of the Income-tax Department calling upon citizens to do their duty and pay tax. While all law-abiding citizens would undoubtedly comply with the law, such compliance must be commended not by way of a ‘sanman’ letter but by way of some action which actually shows that the State cares. While a person is penalised for deducting tax late or not depositing it within time, there is no credit of tax in the deductor’s own case for having deducted tax properly and in time. Collection of revenue is the duty of the State. When it transfers this obligation to its citizen, I believe it is in the fitness of things that if the citizen does a good job he deserves a reward. I am conscious that many of my professional colleagues and even seniors may not agree with this concept, but I believe that this is something that is worth trying.

I am an eternal optimist and I am of the view that we are on the threshold of change. While we must recognise the evils that face us and do our best to eradicate them, it is essential that we encourage those who have achieved something of note. We need to believe that the glass is half full and will get filled up soon, rather than say that it is half empty and it will get drained in future.

I deliberately gave vent to my feeling in my communication for this month, because I felt that in the month of October most of you would have more time on your hands to ponder over what I had said. All of you have been through the grind for the last entire month trying to fulfil your duty towards your clients, the lawmakers and the regulators. It is time to take a break and unwind a little. There can be no better way to unwind than a dance in the approaching Navaratri festival, meeting friends and relatives and enjoying the festival of lights.

I take this opportunity to wish all readers a joyful Navaratri, a happy Dassera, Diwali and a prosperous New Year!

With warm regards,

Pradip K. Thanawala

C A

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