Returning back from 68 years of CA these thoughts crossed my mind when PM Narendra Modi said "CA manages economic health of our country"
When in School my mentor my Accounts teacher guided me to my goals. My desire was to appear for civil services and be an IAS officer. I discussed the same with him. Being an honest CA he advised me otherwise. I still remember his words " Renuka if you want to compromise on your honesty or willing to stay happy without cheating even if you earn less then take up this profession "
I asked myself " will I be able to compromise on honesty" The answer came no
I decided to pursue CA as my profession as I always scored 100% marks in accounts. Then came the real world. When I joined first audit firm I started audit of vouchers. Checking each expense with relevant documents. Sometimes I used to find huge discrepancies . My principal in audit firm used to praise me for my hard work. Financial statements signed without a mention of discrepancies. Disappointed I used to look up to my seniors . Their reply" All has been set up. Our queues made them negotiate higher audit fees" Was shocking for me.
When I started on my own I was now on decision making. But I realised soon enough why would someone give me work if I disclose their profits honestly? Why will they pay me if I do not give them option to work out ways to save tax with fraudulent methods? And if I don't do it they have thousands more who will sign for half the fees they pay to me
Frustrated I started with treasury operations. Portfolio management & stock markets with insurance became my key areas. Slowly I started to do well & earned some name for myself. But honestly today also I feel I could have been more richer with big name had I resorted to mis selling financial products. I read a lot. Follow Economy & politics keenly. But still many fail to look into honesty when I say expect 10 to 12% returns over 10 years coz someone else will come to them with fancy coloured graphs of plans promising them double their money in one year.
Yet I am happy. For who ever became investors never left me and trusted me with even giving blank cheques
Anyways I wrote this blog coz our Prime Minister said today that signature of a Chartered Accountant is very valuable. But it isn't that easy as it looks.
Look at it from CA point of view ? If he does not agree to client demand of manipulating balance sheet there would be thousands more to take it up . And take a scenario where all is done honestly there stands Assessing officer to grill both with unlimited questions. So many documents asked for that end of day a business guy who wants to concentrate on his work pays bribe.
From a middle class business man point of view. He also feels he ends up paying such high taxes & expenses but what does he gets back in return ? Any social security or quality of life? He has to collect money for admission of his children to good universities where reservations are waiting. So study abroad? Not possible unless he saves portion of taxes to government which anyways is going toward nowhere. So he will resort to evade taxes
Of course I am not including likes of King Fisher. But many small enterprises & small CA firms who are left with no option but to resort to tax evasion. More so when fluctuations in government policies or Supreme Court can bring them on roads in one day ( liquor ban)
I understand that I am sounding too negative. But isn't that the reality? We abuse CA to be corrupt but isn't the system to an extent responsible for this? I ask FM why Assessing officers taking money openly not punished? Why only few bank managers punished when it is a Mafia? Where Gold & cars are distributed to them every Diwali to clear loans?
I am not justifying dishonesty of a CA or business guy. But isn't it time for government to introspect why they have to resort to same? Why no assurance that AO dare not harass you ? That there will be no retrospective changes? That we are with start ups & come to us if bank refuses
I also ask CA institute why not the institute decide to take criminal action against members resorting to cheating?
The name of this profession is not as golden as it was long back ? But governments together with Institute can bring back faith & light to it.
When in School my mentor my Accounts teacher guided me to my goals. My desire was to appear for civil services and be an IAS officer. I discussed the same with him. Being an honest CA he advised me otherwise. I still remember his words " Renuka if you want to compromise on your honesty or willing to stay happy without cheating even if you earn less then take up this profession "
I asked myself " will I be able to compromise on honesty" The answer came no
I decided to pursue CA as my profession as I always scored 100% marks in accounts. Then came the real world. When I joined first audit firm I started audit of vouchers. Checking each expense with relevant documents. Sometimes I used to find huge discrepancies . My principal in audit firm used to praise me for my hard work. Financial statements signed without a mention of discrepancies. Disappointed I used to look up to my seniors . Their reply" All has been set up. Our queues made them negotiate higher audit fees" Was shocking for me.
When I started on my own I was now on decision making. But I realised soon enough why would someone give me work if I disclose their profits honestly? Why will they pay me if I do not give them option to work out ways to save tax with fraudulent methods? And if I don't do it they have thousands more who will sign for half the fees they pay to me
Frustrated I started with treasury operations. Portfolio management & stock markets with insurance became my key areas. Slowly I started to do well & earned some name for myself. But honestly today also I feel I could have been more richer with big name had I resorted to mis selling financial products. I read a lot. Follow Economy & politics keenly. But still many fail to look into honesty when I say expect 10 to 12% returns over 10 years coz someone else will come to them with fancy coloured graphs of plans promising them double their money in one year.
Yet I am happy. For who ever became investors never left me and trusted me with even giving blank cheques
Anyways I wrote this blog coz our Prime Minister said today that signature of a Chartered Accountant is very valuable. But it isn't that easy as it looks.
Look at it from CA point of view ? If he does not agree to client demand of manipulating balance sheet there would be thousands more to take it up . And take a scenario where all is done honestly there stands Assessing officer to grill both with unlimited questions. So many documents asked for that end of day a business guy who wants to concentrate on his work pays bribe.
From a middle class business man point of view. He also feels he ends up paying such high taxes & expenses but what does he gets back in return ? Any social security or quality of life? He has to collect money for admission of his children to good universities where reservations are waiting. So study abroad? Not possible unless he saves portion of taxes to government which anyways is going toward nowhere. So he will resort to evade taxes
Of course I am not including likes of King Fisher. But many small enterprises & small CA firms who are left with no option but to resort to tax evasion. More so when fluctuations in government policies or Supreme Court can bring them on roads in one day ( liquor ban)
I understand that I am sounding too negative. But isn't that the reality? We abuse CA to be corrupt but isn't the system to an extent responsible for this? I ask FM why Assessing officers taking money openly not punished? Why only few bank managers punished when it is a Mafia? Where Gold & cars are distributed to them every Diwali to clear loans?
I am not justifying dishonesty of a CA or business guy. But isn't it time for government to introspect why they have to resort to same? Why no assurance that AO dare not harass you ? That there will be no retrospective changes? That we are with start ups & come to us if bank refuses
I also ask CA institute why not the institute decide to take criminal action against members resorting to cheating?
The name of this profession is not as golden as it was long back ? But governments together with Institute can bring back faith & light to it.
very well said, i would say in last 20 years only the CA profession has lost its dignity. Thats why in last ICAI central council election most of the old council members were not been re elected. Instead of asking Govt or IT officers, CA's themselves should come forward and should not compromise just for money or fees.
ReplyDeleteIt takes a lot of guts and will power and patience to swim through the opposite stream. There will be many to pull your legs but charity begins at home and if CAs decide not to be greedy and do their job honestly and properly then no business men would try to manipulate them. They (CA) have overpower their biggest enemy i.e., greed.
DeleteI listened Our PM's speech on DD. Quite inspiration to say the least. Facts stated by him are quite disturbing including a hint of dubious role of CAs in Demonetization drive and tax collection. 1,400 cases pending for action at ICAI, action taken only against 25 CAs. Institute Must do something to redeem its image.
ReplyDelete