India’s Development in 25 years

1. Globalisation Liberalisation Privatisation Urbanisation Commercialisation Digitalisation And……….Demonetisation…… India’s Development in 25 years Rajkot Branch of WIRC of ICAI

2. 2005- 2% of total Transaction in Books 2015- 7% of total Transaction in Books 2020- 70% of total Transaction in Books ~ Boston Consulting Group Report Economy/GST/Demonetisation Rajkot Branch of WIRC of ICAI

3. Year COP Total CAs % 1-4-200868,979 1,45,481 47.4 1-4-200970,362 1,53,600 45.8 1-4-201073,462 1,61,516 45.4 1-4-201176,453 1,70,610 44.8 1-4-201283,244 1,92,513 43.2 1-4-201396,832 2,17,106 44.6 1-4-20141,03,798 2,29,679 45.2 1-4-20151,07,200 2,39,974 44.6 1-4-20161,12,359 2,53,337 44.3 1-4-20171,20,839 2,70,307 44.7 1-4-2018 1,25,000 2,90,000 43.1 No of Practising CAs in India Rajkot Branch of WIRC of ICAI

4. 19912017 GDP of INDIA 266.5 B/$ 2.26 T/$ GDP of USA 18.57 T/$ GDP of China 11.20 T/$ ICAI Membership 59,000 2,90,000 80% Profession has grown in last 25 years. 40,000 CAs are working outside India P/O…. Rajkot Branch of WIRC of ICAI

5. Firms position as on 01/01/2017 Rajkot Branch of WIRC of ICAI

6. Statutory Audit as per various statue Tax Audit as per Income Tax Act Professional Opportunities Rajkot Branch of WIRC of ICAI

7. Bank Central Statutory Audit Bank Branch Audit Bank Concurrent Audit Bank Stock Audit Bank Revenue Audit Bank Special Audit Credit Audit/Certification u/s10A/B Loan Syndication/Project Finance P/O….. Banking Rajkot Branch of WIRC of ICAI

8. Public Sector Statutory Audit Private Sector Statutory Audit Insurance Co. Concurrent Audit ICAI G/N on Internal/Concurrent Audit of Insurance Companies ICAI G/N on Review/Certification of Risk Management System of Ins Companies ……. P/O….. Insurance irda.gov.in Rajkot Branch of WIRC of ICAI

9. Surveyor and Loss Assessor DIRM 19 Major Insurance Companies 30 Lakh Crore Investment All Regulated by ICAI P/O…. Insurance Rajkot Branch of WIRC of ICAI

10. Annual Audit of Stock Brokers: (SMD/SED/0072/92 dated December 31,1992 ) Half Yearly Audit of Stock Broker:(Circular No.: MRD/DMS/Cir-29/2008) Various Special Audit P/O…. SEBI sebi.gov.in Rajkot Branch of WIRC of ICAI

11. Iba.org.in SFIO/MCA/RBI/IT Certificate course of ICAI DISA Advance Excel Artificial Intelliegence- IBM (Watson) Data Mining/Robotics Forensic Audit Rajkot Branch of WIRC of ICAI

12. 10 years post Qualification CA/CS/Cost/Advocate/Graduate To pass online exam by NISM IP (ICAI)-700; (ICSI)-400 & (ICMA)-100 8.30 Lakh Crore NPA (June,2017) Corporate Insolvency (1 lakh/above) Individual Insolvency (1 thousand/above) P/o- Insolvency and Bankruptcy Rajkot Branch of WIRC of ICAI

13. April,2016 -500 cr/above N/W Co. April,2017 -250 cr/above N/W Co and all listed Companies April,2018 -Banking Companies April,2019- NBFC Companies Fair Value Concept IND A/S Rajkot Branch of WIRC of ICAI

14. CBDT notified ICDS (1 to X) Applicable from AY:2017-18 Ind/Huf not having Tax Audit excluded ICAI technical guide-1st Ed-July,17 CBDT 25 FAQs Tax Return work cannot be done anybody else except CAs ICDS Rajkot Branch of WIRC of ICAI

15. The MCA notified on October 18, 2017 “Companies (Registered Valuers and Valuation) Rules, 2017“. MCA delegated this to IBBI on 23rd Oct for Registration, Recognition and others CA/CS/ICMA/Post Graduate- 3 Years ICAI Valuation Standard Board Fair Value/IBC/Rule 11UA as per IT Act Registered Valuers & Valuation Rajkot Branch of WIRC of ICAI

16. Exam Observer/Paper Setter/Examiner Resource as GMCS/ITT/OT Faculty Resource Person in Certificate Course Resource Person in Committee Events Contribution in Guidance Note/Exposure Draft/Research Material Peer Reviewer FRRB-Technical Reviewer QRB-Technical Reviewer Resource Person as IAP (Rs 5K-15.5L) P/O.. ICAI-Alma Mater Rajkot Branch of WIRC of ICAI

17. ICAI Code of Conduct and Ethics NOC Advertisement Guidelines Tender Guidelines,August,2016 AS/Ind AS/SA Continuous Assurance Services Investor and managers demand a more timely base information than just audited financial statements. P/O.. ICAI-Alma Mater Rajkot Branch of WIRC of ICAI

18. Every year 1.8 crore Indians search for CA services online. Reach these customers with your online profile that’s visible on Google. The online profile follows ICAI guidelines and does not involve push based marketing. P/O… Google Profile Rajkot Branch of WIRC of ICAI

19. Attracting new clients & Retaining Existing Clients Keeping up with the new standards and regulations Experiencing pressure to lower fees Managing Cash Flow and late payments Rising Costs Succession Planning Enabling Employee Work-Life balance Attracting New and Retaining Existing Staff Differentiation from Competition Keeping up with the new Technology Serving Clients operating Internationally Challenges of SMPs Rajkot Branch of WIRC of ICAI

20. PSU Audit Fees is upto Rs.1.5 Lakh Experience of the firm 0.5 point for every calendar year -Maximum 15. FCA Partners 1st5 partners 5.0 Point each 6thPartner onwards 2.5 point each   ACA Partners 1st5 partners 3 Point each 6thPartner onwards 1.5 Point CAG AUDIT CRITERIA Rajkot Branch of WIRC of ICAI

21. Long Association with Same Firm 5 points for each partner above 25 years. 4 points for each partner above 20 years. 3 points for each partner above 15 years. 2 points for each partner above 10 years. 1 point for each partner below 10 Years but above 5 Years. Full Time CA Employees 1 point each for first 20 C.A Employees-Maximum 20 points CISA/ISA Qualified Partners 2 points each for three partners. -maximum 6 points CAG AUDIT CRITERIA (Contd..) Rajkot Branch of WIRC of ICAI

22. PSU Audit Fees is above Rs.1.5 Lakh (i) The firm should have at least 6 CAs (out of which 5 should be full time partners and one could be a full time paid CA employee), which is indicative of capacity to handle big audits . (ii) At least one partner should have an association of 10 years or more with the firm and at least 3 partners of the firm should have an association of 5 years or more with the firm and the remaining two should have an association of one year or more with the firm, to demonstrate stability over time. (iii) The firm itself should have been in existence for 10 years or more, to prove that it is a well established firm. http://cagofindia.delhi.nic.in/caapplication/policy2011.htm 1 Full time partner does not include A person who is (a) a partner in other firms (b) Employed full time/part time elsewhere, (c) i) Partners whose total compensation@ from the firm is below the following limit: Head office of the firms located in Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad: ACA partner Rs. 1.80 lakh in a year (Rs. 15000/- per month) FCA partner Rs. 3.00 lakh in a year (Rs. 25000/- per month) CAG AUDIT CRITERIA (Contd..) Rajkot Branch of WIRC of ICAI

23. Head office of the firms located other Places:   ACA partner Rs. 1.20 lakh in a year (Rs. 10000/- per month) FCA partner Rs. 1.80 lakh in a year (Rs. 15000/- per month) (c) ii) A partner whose total compensation@ from the firm is less than:   Firms having more than 14 partners 1% Firms having 10 to 14 partners 3% Firms having 5 to 9 partners 5% Firms having less than 5 partners 8% @Total compensation = Sum total of share of profit, remuneration and interest on capital. 2 All members (sole proprietors/partners/ CA employees) will get points if they were exclusively associated with the firm throughout the calendar year immediately preceding the year of empanelment CAG AUDIT CRITERIA (Contd..) Rajkot Branch of WIRC of ICAI

24. A Practising Chartered Accountants can; • Hold the office of MD, WTD or Manager of a Company within the meaning of the Companies Act, 2013 or Partner as per LLP Act. • Company is engaged exclusively in rendering Management Consultancy and Other Services permitted by the Council in pursuant to Section 2(2)(iv) of the Chartered Accountants Act, 1949 • No restriction on the quantum of equity holding either individually and/or along with the relatives, in such Company. • Do attest function either in individual capacity or in Proprietorship/Partnership firm as a Practising Firm • Also entitled to train articled/audit assistants. Corporate Form of Practice Rajkot Branch of WIRC of ICAI

25. Networking Network - A larger structure Co-operation and sharing Profit or Cost Sharing Shares Common ownership, control or management, Common quality control policies and procedures, Common business strategy, Use of a common brand name, Sharing of significant part of professional resources Corporate Form of Practice (Contd…) Rajkot Branch of WIRC of ICAI

26. Illustrative examples of names of Network: - • If the Network is a Mutual Entity or Partnership Firm: AB & Affiliates • If the Network is a LLP: AB Affiliates LLP • If the Network is a Limited Company: AB Affiliates P. Ltd/Limited • Provisions of Regulation 190 of the Chartered Accountants Regulations, 1988 shall be applicable to the name of Network. Corporate Form of Practice (Contd…) Rajkot Branch of WIRC of ICAI

27. UDIN 24 Hours FRN Concurrent Audit in SBI Mutual Fund Audit by SEBI through MEF and Fees paid by SEBI and not by Auditee Bank Branch Audit through Software All Other Audit through Software- Proposed PDC Initiatives Rajkot Branch of WIRC of ICAI

28. THANK YOU ~CA RANJEET KUMAR AGARWAL CCM,ICAI 9830140211/rka.icai@gmail.com Rajkot Branch of WIRC of ICAI