need for change in perspective for professional practices
DESCRIPTION
Need for Change in Perspective for Professional Practices. CPE Seminar Organize by Committee for Capacity Building of CA Firms and Small & Medium Practitioners Saturday, 11 th August, 2012. Kshitij Patel Partner Manubhai & Company. Present Scenario Statistics. - PowerPoint PPT PresentationTRANSCRIPT
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
CPE SEMINARORGANIZE BY COMMITTEE FOR CAPACITY BUILDING OF CA FIRMS AND SMALL & MEDIUM PRACTITIONERS SATURDAY, 11TH AUGUST, 2012
NEED FOR CHANGE IN PERSPECTIVE FOR PROFESSIONAL PRACTICES
Kshitij PatelPartnerManubhai & Company
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present ScenarioStatistics
CA in India : 1,70,000 approx.
CA in industry : About 92,000
CA in practice : About 78,000
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present ScenarioStatistics
Out of CA in practice : About 78,000
35,000 Sole Practitioners
43,000 14,532 firms
Average : 2.96 partners per firm
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present Scenario Statistics Firms All India
Sr. No Particulars No of firms %
1. Proprietary firms 34,996 70.66
2. Partnership firms having 2 to 5 members
13,145 26.54
TOTAL 48,141 97.20
3. Partnership firms having 6 to 10 members
1,188 02.40
4. Partnership firms having more than 10 members
199 00.40
GRAND TOTAL 49,528 100.00
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present Scenario Statistics Firms Western India
Sr. No Particulars No of firms %
1. Proprietary firms 14,408 77.45
2. Partnership firms having 2 to 5 members
3,885 20.88
TOTAL 18,293 98.33
3. Partnership firms having 6 to 10 members
240 01.29
4. Partnership firms having more than 10 members
69 00.38
GRAND TOTAL 18,602 100.00
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present Scenario Dependent on Statues for work
• The Companies Act 1956• Statutory Audit
• The Income Tax Act, 1961• Tax Audit• Certifications / Reports - 195/80IA/80IB/10A/10B/115JB
etc• Transfer Pricing
• The VAT Act• Audit
• NBFC / RBI• Certifications / Reports
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Present Scenario Other work
• Representation on Direct and Indirect Taxes
• Project Finance and other financial matters
• Valuations
• Mergers/Acquisition
• Concurrent Audits
• Accounting services
• Back office operations
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Warning – RBI
RBI announcement in March 2012 which was subsequent revised
• Branches with advances above Rs. 20 crores will be subject to statutory branch audit
Logic behind this thinking was the cost involvedFor instance SBI has around 3625 branch auditors. Punjab National Bank has 1300 branch auditors. All this compared to private sector banks which have only one statutory central auditor.
Also when you compare the auditor fees public sector banks- SBI for instance pay as much as Rs 124 crore as auditor fees compared to Rs 2 crore which ICICI pays to it's auditors.
Due to the efforts of our Council Members this circular was changed subsequently . However we must take this as a warning to change our strategies.
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Need of the Day
CHANGE OR PERISH
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Why Change
• Expectation Gap – Society and Professionals
• Expecting Value Addition
• Expectation of Foreign Investors’
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Change
WHO MOVED MY CHEESE - By Spencer Johnson
CHANGE HAPPENS : They keep moving the cheese
ANTICIPATE CHANGE : Get Ready for the cheese to move
MONITOR CHANGE : Smell the cheese often so you know when it is getting old
ADAPT TO CHANGE QUICKLY : The Quicker you let go of old cheese the sooner you can enjoy the new cheese.
CHANGE : Move with the cheese
ENJOY CHANGE : Savour the adventure and enjoy the taste of new cheese
BE READY TO CHANGE : They keep moving the cheeseQUICKLY AND ENJOY IT AGAIN
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Flat world
THE WORLD IS FLATIt was Nostradamus, who was the first to visualize a global economy
Technology, Innovation and Adoptability has attracted all business establishments to expand their horizons beyond national borders. This has helped professionals to have a level playing field in providing services to clients across the globe.
With this evolution the WORLD has become FLAT in its true sense,
GEOGRAPHY has virtually become HISTORY
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Road Ahead• Adopt to the change
• Out of the Box thinking
• Change in Attitude and perspective
• Adapt to new technologies
• Capacity building and networking to provide one shop stop services
• Education and Training
• Creating Resources
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Road Ahead
• Move from Statutory Dependent Role to Business Advisory Role
• Move towards new areas of practice like Management Consultant, Internal Audit, Risk Assessment and Mitigation, Due Diligence, Corporate Governance, Arbitration, Insurance Advisory, ERP implementation etc which provides value addition to clients.
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Road Ahead - Summary
To apply best business practices, quickly implement innovations, put insight into action, provide perspectives on value creation, create and develop a truly congenial human resource environment and encourage to change before change is thrust upon, are the basic philosophies which needs to be applied.
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Quote
Whoever desires constant success, must change his conduct with the times.
- Nicolo Machiavelli
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.
Contact
Kshitij PatelPartner
Manubhai & Company
Email : [email protected]
Thank You
Need for change in Perspective - Kshitij Patel Partner Manubhai & Co.