Bombay Chartered Accountants’ Society is entering 60th year.
The recognition it received from various quarters viz. professionals, taxpayers,
and the Government is the testimony of the Society’s successful journey of 59
glorious years. This achievement is the result of efforts of several dedicated
professionals who served the profession before serving self.
However, the Society cannot be complacent. The solid
foundation it has laid over the years is only a part of continuous journey
towards accomplishing its mission. Let us all re-dedicate ourselves to the
progress of our Society which in turn will only benefit each one of us.
Paradoxically, India has gone through a contradictory
trajectory in its global relevance since the visionary Nehru years. Five decades
ago, when India’s economic and military strengths were less dominant, India
brought many distinctive and normative ideas to the global table — be it
disarmament, or non-alignment. Today, in the early 21st century, when India is
recognised as an economic and military power and the Indian
entrepreneur/professional is acknowledged globally, India appears to be devoid
of innovative ideas and thoughts backed by assertive political conviction.
Thoughtful leadership of our profession should actively
involve in formulating International Accounting Standards suited to developing
and developed countries both. The profession can also play an effective role in
formulating consensus views on sharing tax revenues between two countries in the
international trade. The present method of sharing of revenue leaning in favour
of developed countries needs to be neutralised by putting across the various
issues in the right perspective. The profession can play an active role in
evolving equitable transfer pricing regime across the globe.
Today, the profession faces the danger of widening the gap
between what investors and other stakeholders expect from the auditors and what
the auditors do or can actually do. While it is imperative to educate the public
about the auditor’s role and bridge the expectation gap, the profession at the
same time needs to do some introspection, put its own house in order and avoid
situations giving rise to conflict of interests. Even one failed audit causes
great damage to the reputation of the profession. The profession will have to
meet the challenge with impeccable integrity and high ethical standards.
Corruption is one more area of concern. Its global presence
cannot make it acceptable. It has devastating effects — it hinders economic
growth, sustainable development and generates apathy and cynicism. The country’s
moral fabric is its first casualty. Transparency particularly in administration
and decision-making process of the government acts as a great deterrent to
corruption. Though, the RTI and e-governance have started showing positive
results at a slow pace, a lot needs to be done. The profession will have to put
collective efforts to raise the issue of accountability, transparency and equity
at various levels of social and economic systems.
Technological revolution in the present decade has
far-reaching ramification on the profession. The rapid pace of technological
innovation is making the future of global business impossible to predict and it
is rapidly changing the business world. The profession will have to prepare
itself and stand out in this time of technological revolution. The profession
will have to be ready to react, to adapt, to improvise, to innovate at a faster
pace than ever before.
Global inflation rates are climbing to historic levels after
five years of solid growth in the world economy. Inflation has soared to its
highest level in 16 years across the EU, to a 14-year high in Switzerland, a
25-year high in Singapore, an 11-year high in China and a 13-year high in India.
Rising crude oil prices and the food crisis are supposed to be the causes for
this inflationary trend.
The world will have to address this issue collectively.
Economic development the world over has led to large-scale migration of
employment away from agriculture, because industry and services are able to
sustain higher growth and incomes. In India too, growth rates in agriculture
have dipped and its share in national income has halved from about 36% in 1980
to 18% in 2007. India will have to think of various avenues to enhance
agricultural productivity and also explore ways to allow corporate farming and
co-operative farming to ultimately raise productivity. It seems we have
tremendous potential that can be unlocked through new opportunities thrown up by
the current global food crisis.
As I lay down the office of the President of this august
institution, I must say I owe a lot to all of you for giving me this honour. I
have enjoyed communicating to you through this page for the last one year. I
have learnt a lot. The interaction with all of you at various forums has
enhanced my knowledge and experience too. I thank each one of you for your
whole-hearted support in discharging my duties. I would certainly cherish the
memory for ever. Adieu.
