My Dear Members,
Milestone 2.0 – Building a ‘CA’reer. This was the theme for the virtual event held on 23rd April to felicitate new graduates. Over 220 ‘fresh CAs’ logged in to hear a special interaction with three eminent panellists, Mrs. Bhavna Doshi, Robin Banerjee and Anand Bathiya, and Kushal Lodha acting as moderator. The rank-holders were offered free BCAS annual membership under our ‘Gift a Membership’ scheme and we look forward to these youngsters joining us and performing their Professional Social Responsibility (PSR), as also taking care of their careers and personal lives.
On 30th April there was an overwhelming response, with over 770 virtual participants, for the lecture on ‘Important amendments relevant for audits of F.Y. 2020-21’. The veteran Himanshu Kishnadwala gave an outstanding talk, covering all important audit provisions in the Companies Act, 2013, Accounting and Auditing Standards. He guided the members on the new CARO reporting which is applicable w.e.f. 1st April. His presentation was appreciated for being very helpful for small and medium-sized practitioners to carry out an assurance function with a lot of clarity and confidence. Incidentally, SEBI has extended the time of submission of financial results to 30th June in view of the continuing pandemic.
In an important regulatory development, the Reserve Bank of India has issued instructions to banks, including private banks, small finance banks, etc., that the post of the MD & CEO or Whole-Time Director (WTD) cannot be held by the same incumbent continuously for more than 15 years. The instruction also includes other guidelines such as a three- year cooling period for a subsequent appointment, transition arrangements, and continuous appointment for not more than eight years with the exception that the existing MDs & CEOs who have already completed 15 years to complete their current terms as per the permission already issued. This is an important regulatory measure, bringing in certainty and clarity for operation, succession and strict compliance with corporate governance in banks.
RBI has also issued guidelines for the appointment of Statutory Central Auditors (SCAs) / Statutory Auditors (SAs) of banks and non-banking finance companies (NBFCs), including housing finance companies, for F.Y. 2021-22 and onwards. The guidelines provide necessary instructions for the appointments, the number of auditors, their eligibility criteria, tenure and rotation, etc., while also ensuring their independence. The guidelines are a clear recognition of the role of the audit function in the management of banks and finance and, obviously, could not have come any later.
Both guidelines are a solid recognition of the need of the hour, particularly in the context of banks to face severe strain on their business operations both on deposits and advances due to the severe adverse pandemic impact, compounded by the Supreme Court decision of waiving off the interest on interest during the moratorium period.
May is historically a lean month for events and programmes, considering it is the time for vacations. Last year, and it looks like this year, too, the pandemic has changed the course of history with travel restrictions and social distancing norms. But these are some of the programmes planned for May.
- On Wednesday, 19th May, BCAS and IIA to jointly host a talk on ‘Internal Audit Lessons from Cricket,’ by Satish Shenoy.
- Second Direct Tax Home Refresher Course (DTHRC-2) from 20th May to 1st June, with 13 sessions, by the BCAS Taxation Committee.
- Analytics Boot Camp for Youth on 27th, 28th and 29th May by the BCAS Internal Audit Committee, jointly with Sama Audit.
Please log in to www.bcasonline.org for more updates and registration.
The times are tough for everyone, including the CA fraternity. It was painful to lose a few of our professional brothers in the last few days. We pray for the departed souls and for their family members. Positive attitude, building own body immunity with the right course of home fitness and diet and strong belief in saying ‘this too shall pass……..’ is the way forward.
With Best Regards,
CA. Suhas Paranjpe