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ICAI Achievements 2016-17

www.icai.orgTHE CHARTERED ACCOUNTANT FEBRUARY 201768

Significant Achievements in Council Year 2016-17: Raising the Bar of Excellence to a New Level

initiatives, vibrant and value-added services to members and students, rolling out of revised scheme of CA education and training and further strengthening of the CA brand, etc. Various functionaries of the Institute worked seamlessly in this regard. Some concrete steps taken were:n Three new Committees were introduced— Legal

Coordination Committee, Economic Affairs Committee and Digital Transformation and Process Reengineering Committee.

n 10th ICAI-CPABI Corporate Forum on the theme of Provenance to Professional Transformation organised in Chennai in January 2017, comprising three concurrent events, viz., Corporate Conclave, Financial Services Expo and ICAI Awards 2016.

n 10th ICAI Awards 2016 held in January 2017, to present awards under 3 main categories, i.e. CA

The profession of chartered accountancy in India has had an illustrious journey so far. Having ensured financial discipline in India for decades, the profession today has emerged as one of the most vibrant forces of socio-economic growth. To enable the profession to grow further and reach newer heights, ICAI undertook a series of measures in the Council Year 2016-17 with an aim to not only spread the contours of ICAI internationally and nationally but also crafting the profession as a facilitating arm of the Government’s initiatives. This year, ICAI not only consolidated the successes of past years but also reached new frontiers of professional excellence and service to the nation. In view of the space constraint, this special report highlights only some significant of the voluminous achievements of the ICAI’s year-long persistent pursuit for global excellence and new professional paradigms.

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VISION 2016-17

This year’s vision and mission was to build bridges keeping the future in mind, with an objective to go hand-in-hand with the Government in nation-building, enhancing profession’s technical and research activities, infrastructure and HRD

ICAI SIGNIFICANT

ACHIEVEMENTS


www.icai.org 69THE CHARTERED ACCOUNTANT FEBRUARY 2017

Business Leader, CA CFO and CA Professional Achiever and 63 sub-categories, to honour members-in-industry for their exemplary contribution in the growth of national economy.

n Prestigious ICAI Awards for Excellence in Financial Reporting given away on 24th January 2017 in New Delhi under 14 categories as decided by a jury headed by IFRS Foundation Trustee and former SEBI Chairman Shri Chandrashekhar Bhaskar Bhave. The Chief Guest was Shri. Vinod Rai, Chairman, Banks Board Bureau & Former C&AG.

n ICAI Past-Presidents Meet organised to have perspectives and discuss the professional measures/initiatives to be/being taken up by ICAI corresponding to its vision and mission.

n Residential Summit of ICAI Members in Public Service organised on Accountancy Profession for Economic Development in Kochi to get their viewpoints to be followed up by the ICAI.

n Special attention was paid to Women Members professional growth and development through Women Members Empowerment Committee.

NEW TRADITIONS/PRACTICES ESTABLISHED

Being dynamic in approach and responding to the changing times is the cornerstone of Indian accountancy profession. Keeping this in mind, ICAI this year started some new traditions/ practices. Some key new practices started by ICAI this year are as under: n A unique tradition was started wherein the

ICAI leadership took an oath of allegiance to the Chartered Accountants Act, 1949 and regulations/rules framed thereunder.

n Advisory Code of Conduct issued to assist, regulate and guide the elected, nominated and co-opted representatives of ICAI in discharging their obligations and responsibilities, and to

maintain a culture of honesty, integrity and accountability.

n Mandatory Know Your Client (KYC) norms formulated and made effective from 1st January 2017 applicable to members in practice in all their assignments pertaining to attest functions where clients may be an individual/proprietor, or a corporate/non-corporate entity.

n Teachers’ Day was celebrated across the country at Regional Councils, Branches, and CA Firms on the theme “My Principal- My Teacher”

PARTNER IN NATION BUILDING

Harnessing the capabilities of its huge member base of over 2.5 lakh, ICAI constantly engaged with the national leadership and Government to serve the nation by supporting its various policies, initiatives and flagship programmes. It made crucial contributions to various dynamic laws and regulations including the Companies Act, 2013, Income Declaration Scheme, 2016, upcoming GST regime, Black Money (Undisclosed Foreign Income And Assets) and Imposition of Tax Act, 2015, Insolvency and Bankruptcy Code, 2016. Some key highlights are:Meeting with National Leadership/ Dignitaries & Establishing RapportICAI has been at the forefront in holding strategic meetings with the dignitaries of national importance regarding various issues of professional and national interest. Following are some of the major meetings that have taken place:n With Union Finance and Corporate Affairs

Minister Shri Arun Jaitley, Union Railway Minister CA. Suresh Prabhu and Union Minister of Urban Development and Information & Broadcasting Shri M. Venkaiah Naidu on profession’s role as partner in nation building.

n With Union Ministers of States for Finance Shri Arjun Ram Meghwal and Shri Santosh Kumar Gangwar, MP (Lok Sabha) CA. (Dr.) Kirit

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Somaiya and Ms. Kirron Kher, and MP (Rajya Sabha) CA. K. Rahman Khan.

n With Haryana Chief Minister Shri Manohar Lal Khattar, C&AG Shri Shashi Kant Sharma, Punjab & Haryana Governor-cum-Chandigarh Administrator Shri Kaptan Singh Solanki, CBEC Chairman Shri Najeeb Shah and RBI Deputy Governor Shri N. S. Vishwanathan among others.

n With Tripura State Governor Shri Tathagata Roy, and Tripura’s Finance, Food, Civil Supplies & Consumer Affairs, and Information & Cultural Affairs Minister Shri Bhanu Lal Saha.

n With PFRDA (Pension Fund Regulatory and Development Authority) Chairman and Financial Intelligence Unit (FIU-IND) Director to discuss utilisation of services of CAs.

n With Economic Advisor Shri Anand Singh Bhal, Deputy C&AG Dr. P. Mukherjee, Ministry of Heavy Industries & Public Enterprises’ DPE Secretary Shri Ameising Luikham, Director NIPFP Shri Rathim Roy, Ministry of Minority Affairs Secretary Shri R. Garg and Ministry of Micro, Small & Medium Enterprises Secretary Dr. K. K. Jalan among other bureaucrats.

n With Insolvency and Bankruptcy Board of India Chairman M. S. Sahoo and with Head of 5th Delhi Finance Commission wherein ICAI was requested to undertake study for Double Entry Accrual Based Accounting System with special focus on Local Bodies.

n ICAI representative addressed at 8th Banking & Finance Conference organised by Indian Merchants’ Chamber in Mumbai.

n ICAI was “Knowledge Partner” for “Indian Banking Reforms Conclave 2016” organised by the Governance Now (SAB TV Group) in Mumbai and 7th edition of ‘The India Finance Forum’ organised by the Confederation of Indian Industry (Southern Region) in Chennai.

n Organised Meeting of the State Level Task Force at New Delhi to discuss the matters pertaining to the banking sector.

National Leaderships’ Visit to ICAI n Finance Minister Shri Arun Jaitley addressed

a webcast and also graced many programmes organised by ICAI on IDS 2016.

n Union Defence Minister Shri Manohar Parrikar as Chief Guest at the main CA Function in New Delhi on 1st July 2016.

n Shri Piyush Goyal, MoS (IC) for Power, Coal and New & Renewable Energy addressed ICAI webcast on Demonetisation.

n Union Minister for Water Resources, River Development & Ganga Rejuvenation Sushri Uma Bharti inaugurated a programme for women members in Ghaziabad on 23rd July, 2016.

n MP (Lok Sabha) CA. (Dr.) Kirit Somaiya addressed ICAI Council on role of accountancy profession in progress of national economy.

n Finance Commissioner (Indian Railways) Shri K. B. Nanda addressed ICAI Council on contribution of ICAI and Indian accounting profession to Indian Railways.

n Union Minister of Urban Development and Information & Broadcasting Minister Shri M. Venkaiah Naidu and Union Minister of State for Finance and Corporate Affairs Shri Arjun Meghwal graced ICAI Hyderabad International Conference.

n Union Textile Minister Smt. Smriti Zubin Irani inaugurated 31st Regional Conference of WIRC.

n Railway Minister CA. Suresh Prabhu and Minister of State for Water Resources, River Development and Ganga Rejuvenation Dr. Sanjeev Kumar Balyan graced ICAI Investor Awareness Programme at Ernakulam on 16th June 2016.

n Minister of State for Finance Shri Arjun Ram Meghwal graced a Conference at Jaipur on 27th August 2016.

n Union Minister of State for Finance Shri Santosh Kumar Gangwar graced National Conference in Agra on 20th Nov 2016.

n Assam Chief Minister Shri Sarbananda Sonowal hailed Indian accountancy profession at an ICAI national Conference in Guwahati.

n The then Gujarat Chief Minister Smt. Anandiben Patel, the then CBDT Chairman Shri Atulesh Jindal and current CBDT Chairperson Ms Rani Singh Nair graced the programmes organised jointly by ICAI, Ministry of Commerce & Industry and Ministry of Finance.

Helping Govt’s Drive against Black Moneyn In line with its tradition, the ICAI proactively

pushed forward the Government's drive against black money throughout this year, particularly in the wake of the Income Declaration Scheme (IDS) 2016 and demonetisation.

n Teaming up with Ministry of Finance, ICAI and its members played a crucial role in making IDS 2016 a great success, leading to biggest-ever disclosure of hidden wealth.

n ICAI was chosen as preferred institution to partner with the Government to create awareness



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about IDS, 2016. As such, a big range of related programmes and webcasts were organised across India, some of which were attended by the Finance Minister himself, including at Bengaluru and Ahmedabad.

n Relevant concerns raised before Union Finance and Corporate Affairs Minister Shri Arun Jaitley in a meeting regarding Income Computation and Disclosure Standards vis-à-vis the Scheme.

n CBDT Chairperson Ms. Rani Singh Nair attended a talk on Income Declaration Scheme, 2016 and Gold Monetisation Scheme, organised jointly by ICAI and FICCI.

n Union Finance and Corporate Affairs Minister Shri Arun Jaitley addressed the nation through an ICAI webcast on Income Declaration Scheme, 2016.

n Representation made to Union Minister of State (Independent Charge) for Ministry of Commerce & Industry Smt. Nirmala Sitharaman, in response to the call of Ministry of Commerce and Industry seeking ICAI’s support in creating awareness about the Scheme.

n In a tweet, Union Finance and Corporate Affairs Minister Shri Arun Jaitley acknowledged and appreciated the endeavours of ICAI and its members for the success of IDS, 2016: "My gratitude to ICAI for the role that the Institute and their Members played in the success of IDS 2016".

n Hon’ble Prime Minister Shri Narendra Modi also tweeted to compliment Finance Minister and TEAM for the "hard work" resulting in successful outcome of IDS, 2016.

Incorporation of Indian Institute of Insolvency Professionals of ICAIn Indian Institute of Insolvency professionals

of ICAI (IIIPI), a Section 8 Company formed by ICAI, to enrol and regulate insolvency professionals in accordance with the Insolvency and Bankruptcy code 2016 read with regulations.

n IIIP of ICAI awarded Certificate of Registration by Union Finance and Corporate Affairs Minister Shri Arun Jaitly as first Insolvency Professional Agency in India.

n In an encouraging response, around 700 chartered accountants as first set of insolvency professionals (enrolled with IIIP of ICAI) awarded Certificates of Registration as Insolvency Professionals by Secretary of Ministry of Corporate Affairs.

n ICAEW (Institute of Chartered Accountants of England and Wales) agreed to become the Knowledge Partner for the ICAI Insolvency Professional Agency.

Helping in Insolvency and Bankruptcy Code 2016n ICAI effectively helped in formulation and

implementation of Insolvency and Bankruptcy Code 2016 through proactive representations in the related Working Groups formed by the Ministry of Corporate Affairs and submitted orally, views on the Code, before the Joint Committee.

Lending Crucial Support to firm up Company Lawn ICAI was represented in Companies Law

Committee of Ministry of Corporate Affairs (MCA) to study and recommend solutions to the complex matters arising out of Companies Act, 2013.

n Many ICAI submissions to Companies Law Committee of MCA, particularly pertaining to profession, were incorporated in the Companies (Amendment) Bill, 2016.

n ICAI represented on 7th Report of the Law Commission of India on proposed amendments to Indian Partnership Act, 1932, Secretarial Standards and Draft Rules on certain chapters under the Companies Act, 2013.

n On a representation by ICAI, a Removal of Difficulty Order was issued by MCA about applicability of Provisions of Rotation of Auditors as per Section 139 (2) of the Companies Act, 2013 not later than the Annual General Meeting of the year 2017.

n Opportunities granted twice to ICAI to represent orally at Parliamentary Standing Committee on Finance on the examination of Companies (Amendment) Bill, 2016.

n Illustrative templates of letters under Section 139(1) of Companies Act, 2013 uploaded on website for the benefit of members.

Enriching the Agenda of Union BudgetMany Proposals in the form of Pre-Budget Memoranda submitted to Ministry of Finance pertaining to direct and indirect taxes incorporated in the Finance Bill, 2016. These included

o Inclusion of LLP within the definition of eligible start-up for availing the benefit of deduction under the new Section 80-IAC;



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o Section 115BBDA amended to clarify the real intent of law, i.e. to bring to tax in the hands of the recipient the aggregate dividend received in excess of R10 lakh;

o Section 115BBF amended to relax the requirement of incurring the entire expenditure in India for availing the benefit of concessional rate of tax on royalty income in respect of patent developed and registered in India;

o Manner of computation of tax payable in respect of under reporting of income has been modified;

o Availability of credit for a period of 3 years for the tax paid on right to use any natural resource by the Government, local authority or any other person as against earlier spread of credit over the period for which the right to use was assigned;

o List of Services provided by the Government or a local authority which would be exempt from service tax vide Mega Exemption Notification; and

o Clarification on anomaly regarding Rule 6(3) of CENVAT Credit Rules, 2004 wherein there is an option to pay an amount equal to 6 or 7 per cent of the value of exempted goods or services respectively subject to a maximum of the total credit taken and not total credit available.

n Participated as exclusive knowledge partner at ET Budget Summit Analysis-2016 organised by The Economic Times in Mumbai in all sessions as Speaker/Moderator/Panelist.

n Presentation made before the Ministry of Finance covering major issues regarding direct and indirect taxes for Union Budget, 2017-18. Pre-Budget Memoranda also submitted.

Paving the Way to Goods and Services Tax Regimen One of the foremost proponents of GST, ICAI

this year played a big role in paving the path to the upcoming GST regime—the biggest tax reform since Independence, particularly after the Constitution Amendment (GST) Bill got Presidential assent in September 2016.

n 20 National conferences/seminars, over 25 live webcasts, 25 video lectures and 73 programme/workshops organised by IDTC to spread knowledge about GST. In addition, a range of

similar programmes also organised by Regional Councils and their branches.

n Two series of Faculty Identification programme and train the trainer programme across all major cities were organised wherein approx 364 new speakers in Model GST Law were identified and trained making the expert pool of over 500 faculties.

n As requested by CBEC, ICAI presented its suggestions on policy issues relating to GST besides presenting its suggestions on transitional issues and integrated Goods & Services Tax (IGST) to Empowered Committee of State Finance Ministers. The ICAI suggestions were favourably considered particularly in the Revised Model GST Law.

n To help the Government in resolving administrative issues over GST, ICAI suggested PAN-based mechanism for administration of GST by the Centre and State Governments. A representation was also made suggesting that Audit of Financial record under GST Law be allowed to be carried out exclusively by CAs.

n ICAI has been approached by some State Governments asking for report on impact of GST on their State and helping in drafting State GST. 18 State Level Study Groups have been formed to help States implement GST.

ICAI-ARF excels in Double-Entry Accrual Accounting Driven ICAI-ARF undertook and completed the

following projects:n Indian Railways: In a very significant success

in accrual accounting project undertaken by ICAI for Indian Railways, Union Finance and Corporate Affairs Minister released the first ever Accrual Based Financial Statement for the year ended 31st March, 2015 for North Western Zonal Railway in the presence of Union Minister of Railway and high dignitaries from ICAI, CAG, CGA, Niti Aayog, and Department of Posts & Telegraph on 20th December 2016 in New Delhi.

n Indian Railways: Taking our partnership with Indian Railways to next level, ICAI-ARF has received acceptance from Northern Railway for Roll out of Accrual Accounting in all Zonal Railways and Production Units over Indian Railways.



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n Power Finance Corporation (PFC) and Its Subsidiaries: Project to study the existing compliance environment of PFC’s Financial Reporting, to identify the improvement areas and propose a roadmap to establish a Compliance Framework.

n Coal India Limited, Kolkata (Ministry of Power): Review of the Capital Expenditure Procurement Process and Policy Compliances Framework.

Facilitating a New Era of Accounting Reformsn This year ICAI, in coordination with the Ministry

of Corporate Affairs (MCA), went into an overdrive to help unleash a new era of accounting reforms in India by facilitating smooth adoption of Ind AS (Indian Accounting Standards) converged with IFRS as per the roadmap notified by the MCA. According to the roadmap, the first phase required companies with a net worth of INR 500 crore or more to mandatorily adopt the Ind AS from or after 1st April 2016.

n A series of steps were taken to train the members, creating further awareness and providing guidance. Ind AS Transition Facilitation Group (ITFG) was put in place to address complex interpretational issues relating to Ind AS and give clarification to companies; so far, 6 clarification bulletins, available on ICAI website, have been issued. A Support-desk for Implementation of Ind AS was also set up.

n Amendment to Ind AS 102, Share Based Payments and Amendments to Ind AS 7, Statement of Cash Flows—approved by National Advisory Committee on Accounting Standards (NACAS) and submitted to Ministry of Corporate Affairs for notification.

n Upgraded AS 7, Statements of Cash Flows and Upgraded AS 8, Accounting Policies, Changes in Accounting Estimates and Errors—approved by NACAS.

n Comments Submitted on Exposure Drafts issued by IASB—On Definition of a Business and Accounting for Previously Held Interests (Amendments to IFRS 3 and IFRS 11).

n Educational materials issued on Ind AS containing summary of the respective Ind AS and FAQs covering various issues. First-time Adoption of Indian Accounting Standards, and preparation of Consolidated Financial Statements, were issued.

n Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS) issued.

n Guidance Note on Combined and Carve–Out Financial Statements and Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS are applicable) issued.

n Announcements published regarding amendments to AS 2, 4, 6, 10, 13, 14, 21 and 29 made applicable to Non-corporate entities pursuant to issuance of amendments to Accounting Standards by the MCA.

n Announcements published regarding withdrawal of Accounting Standard 30, Financial Instruments: Recognition and Measurement, Accounting Standard 31, Financial Instruments: Presentation, and Accounting Standard 32, Financial Instruments: Disclosures.

n Companies (Accounting Standards) Amendments Rules, 2016, Companies (Indian Accounting Standards) Amendments Rules, 2016, Ind AS-compliant Schedule III to the Companies Act, 2013, and Amendment in Schedule II to the Companies Act, 2013, notified by MCA.

Representations/Technical Inputs to Govt, Others n Submitted more than 50 representations

on various issues of professional interest to Ministry of Corporate Affairs, Parliamentary Standing Committee on Finance, Department of Financial Services (Ministry of Finance), Lok Sabha Secretariat, Select Committee of Rajya Sabha, RBI, Central Board of Direct Taxes and its Expert Review Committee, Insurance Regulatory and Development Authority of India, Controller General of Patents, Designs & Trade Marks, Directorate of Income tax (Systems), Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, Joint Commissioner, Cooperatives, Madhya Pradesh, and Cooperation, Marketing and Textiles Minister of Maharashtra among other important Government offices and departments.

n Issued 5 replies/opinions on letters/queries received from various Government and Regulatory bodies, such as MCA, SEBI, Director General of Audit, etc.

n Submitted a range of technical inputs to Government/its Departments and other Bodies including GASAB, Ministry of Finance, Fifth Delhi Finance Commission etc.



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Empowering Govt. Departments/Officers n Held training programmes on implementation

of Double Entry, Accrual System of Accounting for Government officials of Rajasthan in Jaipur and Officials of Jodhpur Municipal Corporation in Jodhpur.

n Organised training programmes on ‘Implementation of Double Entry Accrual System of Accounting and Financial Management Reforms in Urban Local Bodies (ULBs)’ for officials of ULBs of Punjab in Chandigarh, North Delhi Municipal Corporation in New Delhi, Himachal Pradesh in Shimla and Jharkhand in Ranchi, etc.

n Financial Management workshops for “Top Level Finance Executives of SLPEs (State Level Public Enterprises) in Chennai.

n Training Programme on “Role in Audit-Internals/Statutory/C&AG and Audit Committee” for Assistant Audit/Accounts Officers and Auditors of Tripura’s Finance Department in Agartala.

n Training Programme on “Budgeting and taking Financial Decisions” for the Dy. Commissioner/Chief Executive Officer/Executive Officer of Urban Local Bodies, Managing Director/Accounts Officers of different State PSUs, Government of Tripura at Agartala.

n Workshops on “Recent Changes in Companies Act 2013–IFRS” for the executives of CPSEs and SLPEs of Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, at Bengaluru and Hyderabad.

n 3-day Residential Training Programme on “Finance for Non Finance Professional” jointly with Department of Public Enterprises at Hyderabad.

n Training Programme on “Internal Financial Control and its Benefits” for the senior management personnel, including CEOs/CFOs/Functional as well as Independent Directors from the member CPSEs jointly with Standing Conference of Public Enterprises at Delhi.

n Two In-House Executive Development Programmes (IHEDPs) organised by CPEC for the Executives of ONGC and IOCL.

INTERNATIONAL ACHIEVEMENTSIn today’s world, where national boundaries are getting blurred, having international presence is a necessity. With this perspective, ICAI strived to further enhance its already strong global presence through establishment of new foreign chapters, participation in IFAC, CAPA, SAFA Board meetings, inviting international delegations

to deliberate on crucial issues affecting the profession, signing of MOUs, etc. Some such key initiatives were:New Foreign Chapters of ICAI n 27th Chapter of ICAI inaugurated in Auckland

(New Zealand), in the presence of New Zealand Member of Parliament Shri Kanwaljit Singh Bakshi and Indian High Commissioner to New Zealand Chargé d’ Affaires Shri Sandeep Sood, among others.

n 28th Chapter of ICAI inaugurated in May 2016 in Ras Al Khaimah, UAE, in the presence of Crown Prince of Ras Al Khaimah, UAE, H. E. Sheikh Mohammed Bin Saud Al Qasimi among others.

n The Council has recently approved formation of 29th Chapter of ICAI at San Francisco, USA.

2016 International Conference of ICAI ICAI’s International Conference on the theme, Jnāna Yajna–The Quest for Excellence, was held on 22nd-23rd October 2016 in Hyderabad with a participation of about 3000 delegates. A range of dignitaries included Chief Guest Union Minister of Urban Development, Housing and Urban Poverty Alleviation and Information & Broadcasting Minister Shri M. Venkaiah Naidu, Union Minister of State for Finance and Corporate Affairs Shri Arjun Ram Meghwal, CBDT Chairperson Ms. Rani Singh Nair, CAPA President Ms. Jackie Poirier, NACAS President CA. Amarjit Chopra, IFAC Board members Mr. Robert Harris and Mr. Takatsugu Ochi, CAPA CEO Mr. Brian Blood, SAFA President Mr. Naeem Akhtar Sheikh, CA Sri Lanka President Mr. Lasantha Wickremasinghe, CA Worldwide Chairman and CA Ireland Chief Executive Mr. Pat Costello, Central Excise Chief Commissioner Shri Sandeep Mohan Bhatnagar.

Other Key Developmentsn The ICAI has renewed the MoUs with College

of Banking and Financial Studies (CBFS), Oman which was recently cleared by the Government of India.

n ICAI had a technical cooperation agreement with AASB of Bhutan and was awarded a World



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Bank project for developing curriculum, study material, draft regulations for the AASB and draft regulations for the proposed Bhutan Institute of Chartered Accountants. The said project has been completed successfully in terms of contract deliverables.

n ICAI took the Associate Membership of Chartered Accountants Worldwide, which brings together leading global institutions of Chartered Accountants to support, develop and promote the vital role that Chartered Accountants may play in the economy.

n ICAI hosted CAPA Board and other Meetings in Hyderabad in October 2016 interacting with Global and Local Accounting fraternity.

n ICAI organised IFRS Foundation Trustees Meeting in New Delhi in collaboration with Trustees of IFRS Foundation.

n ICAI organised an exclusive Africa-India Partnership Conclave in New Delhi, which was attended by Ambassadors, High Commissioners, Trade Consulates from 17 African countries, and representatives from industry associations like ASSOCHAM, CII and FICCI.

n ICAI became an Institutional member of International Valuation Standards Council (IVSC) which will facilitate issuance of Indian Valuation Standards as formulated by ICAI on the basis of International Valuation Standards issued by IVSC.

n ICAI hosted the International Financial Reporting Standards Foundation (IFRSF) Stakeholder’s Event in New Delhi jointly with IFRSF.

n A delegation of IASB of International Financial Reporting Standards (IFRS), including IASB Vice-Chair Mr. Ian Mackintosh, IFRS Foundation Trustees Chair Mr. Michel Prada and IASB Technical Director Mr. Kumar Dasgupta, came to ICAI to discuss matter of mutual interest.

n ICAI represented in various global meetings including of International Forum of Accounting Standard Setters (IFASS) in Toronto and London, Emerging Economies Group in Johannesburg, World Standard-Setters Conference in London.

n IFAC delegation including the then IFAC President Ms. Olivia Kirtley and present IFAC Chief Financial Officer Mr. Russell Guthrie, came to ICAI and also met SEBI, RBI, Controller and Auditor General of India, Comptroller General of Accounts in India and MCA to fortify ties.

n SAFA Board and Committee meetings along

with SAFA-IFAC Regional PAIB (professional accountants in business) Forum were hosted by ICAI in Mumbai.

n ICAI extended help to Institute of Certified Public Accountants of Uganda (ICPAU) and offered its revised study material.

n ICAI participated in the live show at Uganda Broadcasting Corporation TV on cooperation between ICAI and ICPAU. A Uganda-specific Global Career e-Kit was also released.

n ICAI represented at 2016 Chief Executive’s Forum, Edinburgh Group and IFAC Board meetings, deliberating with the leadership of Pan Africa Federation of Accountants, Institute of Chartered Accountants of England & Wales, Chartered Accountants-Australia and New Zealand, European Federation of Accountants and Auditors, Chartered Institute of Public Finance and Accountancy, Chartered Institute of Management Accountants, Institute of Chartered Accountants of Scotland, CPA Ireland, Malaysian Institute of Certified Public Accountants, Institute of Singapore Chartered Accountants, and International Integrated Reporting Council.

n ICAI also represented at the meetings of IFAC Council and Board hosted by one of the Brasilia Accountancy Body, Conselho Federal de Contabilidate (CFC) in Brazil and also met Indian Ambassador to Brasilia Shri Sunil Lal to seek support for its initiatives.

n ICAI represented at CAPA events organised in Kuala Lumpur such as CAPA Board, Professional Accountancy Organisation Development Committee, Annual General Meetings, Financial Reform for Economic Development Forum, etc.

n ICAI represented at the CEOs Meeting organised by Chartered Accountants Worldwide (CAW) in London.

n ICAI President addressed the students of Simon Fraser University and interacted with senior functionaries of Langara College, Vancouver.

n ICAI represented at Chartered Accountants Worldwide Board and Associate meetings in Johannesburg.

n ICAI represented at the meeting of International Auditing and Assurance Standards Board with National Standards Setters (IAASB-NSS Meeting) held in New York.

n ICAI represented at the meetings of the International Auditing and Assurance Standards Board held in Hong Kong and New York respectively.



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n Webcast on “Identifying Common FEMA Contraventions” with 740 live viewers across the globe including participation of members from countries like Japan, USA, UAE, Ireland, Germany, France, etc.

n 10 CPE International Study Tours/Seminars organised at Bangkok, Pataya, Tashkent, Singapore, Malaysia, Bhutan, Russia, Uzbekistan, Indonesia (Bali).

n An “International Residential Refresher Course” for women members was organised from 13th–17th August, 2016 in Singapore.

n A joint ICAI-Public Interest Oversight Board Stakeholders Conclave being organised on 9th

February 2017 at New Delhi.

International Conferences at Foreign Chapters n 34th Annual International Conference organised

by Dubai Chapter of ICAI, inaugurated by UAE Cabinet Member and Minister of Culture & Knowledge Development H. H. Sheikh Nahyan Bin Mubarak Al Nahyan.

n 28th Annual International Seminar on Prisms of Opportunities, was organised by Abu Dhabi Chapter of ICAI in Abu Dhabi.

n 8th Annual International Conference on “Challenges Create Opportunities” was organised by the Bahrain Chapter of ICAI.

n 3rd International Conference on “Sailing through Turbulence” was organised by Qatar (Doha) Chapter of ICAI.

ICAI GREEN, CLEAN & CSR DRIVE

Being an environmentally conscious organisation, the Green and Clean Drive at ICAI received a new momentum this year with a number of far-reaching decisions taken such as electronic circulation of agenda and other related documents at meetings, publication of newsletters at Regional and Branch levels of ICAI in digital mode, giving option to green-thinking members to opt for the electronic version of The Chartered Accountant monthly journal while discontinuing the hard copy, to save

vegetation. Some highlights are as under:- n Supporting its Go-Green agenda, ICAI

implemented paperless meeting management so as to circulate agenda and other related documents electronically at all its meetings, instead of printing/publishing the same.

n ICAI decided to stop the publication of newsletters of all its Regional Councils and Branches, in a phased manner.

n I Go Green with ICAI initiative launched to encourage members to discontinue receiving hard copy of The Chartered Accountant journal and instead make use of its digital versions available online.

n Members were urged to support the global initiative of signing of the historic Paris Agreement on Climate Change.

n Ever since being nominated Brand Ambassador for the Swachh Bharat Abhiyan by the Prime Minister, various steps were undertaken within ICAI to meet the objectives of the Abhiyan.

n Contribution made through Swachh Vidyalaya Abhiyan—launched to provide separate toilets for boys and girls in government schools throughout the country—More than 804 CAs expressed interest to take part in the related sanitation audit and verification. More than 2,826 toilet blocks assigned to the ICAI members in this regard.

n Printing of the Prospectus of Diploma Course in International Taxation was stopped, which is available at ICAI website and the same could be downloaded free of cost.

n International Yoga Day: Organised a Curtain Raiser Programme for International Yoga Day under the aegis of Ministry of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) on 3rd June, 2016 at Mumbai.

n 12 Programmes on Corporate Social Responsibility (CSR) organised by CPE POUs across India.



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TOWARDS ROBUST REGULATORY, DISCIPLINARY MECHANISMS

ICAI endeavoured to strengthen its regulatory mechanism. Having a robust disciplinary mechanism acts as a deterrent for the erring members by keeping them in check and helps to maintain the credibility, integrity and image of the accountancy profession. Some highlights in this regards are:n During the present year as on 31st December,

2016, hearings were concluded in 22 cases by the Board of Discipline wherein the punishment was awarded in 8 cases apart from having considered prima facie opinions in 90 cases.

n The Disciplinary Committees under Section 21-B has heard and concluded 38 cases as on 31st December, 2016 and punishment was awarded in 15 cases apart from considering 28 prima facie opinions formed by Director (Discipline).

n The Disciplinary Committee under Section 21-D has concluded hearing in 1 case and is expediting the residual 3 cases pending for enquiry.

n In-principle approval given for introduction of e-hearings and amendment in Rules is under process for conducting hearings on fast track mode resulting in disposal of disciplinary cases across the country in expeditious manner and reducing the overall costs and time.

n Group constituted to look into intricacies involved in areas wherein changes are required and thereafter propose amendments to the Chartered Accountants Act, 1949 and its Rules pertaining to the disciplinary mechanism to ensure minimal procedural delays resulting in faster disposal of the cases.

MEMBERS EDUCATION AND CAPACITY BUILDINGEmpowerment of members through knowledge dissemination and capacity building remained

one of the prime objectives of ICAI this year. A number of initiatives were taken at different levels of ICAI to keep the members updated on emerging areas of profession. Some key highlights were: n A new CPE Portal (www.cpeicai.org) developed

to facilitate members with robust, user friendly and mobile compatible functionalities regarding CPE activities.

n CPE activities linked with the ICAI Mobile App with an introduction of a CPE Programs tab for the convenience of members.

n The CPE Statement revised to make it contemporary with Global requirements & Practices, is applicable from the next Block of 3 Years (1-1-2017 to 31-12-2019).

n CPE credit hours requirements revised for various categories of members. On-Line submission of self-declaration forms for Unstructured CPE credit introduced.

n Council revised Norms/Guidelines/Directions for CPE Programme Organising Units, which is hosted at the CPE Portal.

n 31 new CPE Chapters/Study Circles opened to help members in mofussil/remote areas to undertake CPE activities.

n Central Council Library subscribed/installed many new E-Newspapers Software, E-Books package, E-journals, Online databases as part of Digital Library Initiative. These included Pressreader.com, Tata McGraw Hill e-book package of Finance & Investment cluster.

n Specially installed in Central Council library the following online databases:- Tax India Online: First of its kind, it covers

topics on Central Excise, Customs, Service Tax, VAT and Foreign Trade Policy.

- Capitaline Plus: Database of 35,000 listed and unlisted companies.

- Prowess Database: India's largest database



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of financial performance of over 27,000 companies.

- E-IFRS comprehensive subscription: To keep readers completely up-to-date with IFRS.

- Westlaw: Online legal information resource combining Indian and international laws.

- Indiastat.Com: Provides socio-economic statistical information about India

- Taxmann Corporate Law Module: Largest Research Platform for Corporate laws.

- Delnet: Resource sharing among the libraries of various universities, institutions across India.

n Added 918 books for ICAI’s HQ Library and 205 books for Noida Library

n An arrangement with C-MTOS Technologies Pvt. Ltd. in respect of Capital Line Corporate database for members at a special discounted rate.

Guidance Notes/Technical Guides, etc., Releasedn Revised Guidance Note on Reporting on Fraud

under Section 143(12) of the Companies Act, Implementation Guide to SA 300, Planning an Audit of Financial Statements

n Guidance Note on the Companies (Auditor’s Report) Order, 2016

n Revised Technical Guide on Audit of Non-Banking Financial Companies (2016)

n Guidance Note on Audit of Banks 2016 edition

n Implementation Guide on Audit of Internal Financial Controls over Financial Reporting with Specific Reference to Smaller, Less Complex Companies

n Implementation Guide on Auditor’s Reports under Indian Accounting Standards for Transition Phase

n Revised Guidance Note on Reports or Certificates for Special Purposes

n Revised Guidance Note on Audit of Consolidated Financial Statements

n Revised Guidance Note on Reports in Company Prospectuses

n Revised Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013,

n Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to Companies Act, 2013,

n Revised Guidance Note on Reports in Company Prospectuses,

n Revised Guidance Note on Audit Reports and Certificates for Special Purposes,

n Revised Guidance Note on Audit of Consolidated Financial Statements,

n Revised Guidance Note on Report under Section 92E of Income-tax Act, 1961,

n Revised Guidance Note on Report under Section 92E of the Income-tax Act, 1961 (Transfer Pricing)

n Technical Guide on Internal Audit of Hotel Industry

n Guidance Note on Schedule III to the Companies Act, 2013

n Revised “Technical Guide to CENVAT Credit” with changes made by Finance Act 2016 incorporating new illustrations, case studies and recent judicial pronouncements to facilitate easy understanding of the provisions of CENVAT Credit Rules.

Standards on Auditing Issuedn Revised SA 700, Forming an Opinion and

Reporting on Financial Statements.n New SA 701, Communicating Key Audit Matters

in the Independent Auditor’s Report.n Revised SA 705, Modifications to the Opinion in

the Independent Auditor’s Report.n Revised SA 706, Emphasis of Matter Paragraphs

and Other Matter Paragraphs in the Independent Auditor’s Report.

n Revised SA 260, Communication with Those Charged with Governance.

n Revised SA 570, Going Concern.

Conferences/Workshops/Training Programmesn 48th Regional Conference of SIRC organised

in Tirupati, 31st Regional Conference of WIRC (inaugurated by Union Textile Minister Smt. Smriti Zubin Irani), 41st Regional Conference of EIRC were organised in Tirupati, Mumbai and Kolkata respectively.

n Organised more than 225 National conferences/seminars/workshops/training programmes on a range of contemporary topics of professional interests were organised throughout the country besides a wide range of other programmes.

n Further, 37 CPE Programmes were organised under the aegis of CPE Committee. Over 7500 programmes were organised by CPE Programme Organising Units.

n In addition, more than 25 programmes were organised exclusively for women members, including the one on 23rd July, 2016 in Ghaziabad



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which was inaugurated by Union Minister for Water Resources, River Development & Ganga Rejuvenation Sushri Uma Bharti.

Background Material n More than 25 background material on various

topics of professional interest were issued.

Webcasts Organisedn Harnessing technology for knowledge

dissemination, more than 75 webcasts were organised, including the one on Demonetisation which was addressed by Shri Piyush Goyal, MoS (IC) for Power, Coal and New & Renewable Energy.

Post-Qualification/Certificate Courses n Launched a Certificate Course on Anti Money

Laundering Laws (Anti-Money Laundering Specialist).

n Launched Certificate Course on Service Tax.n Organised convocation ceremonies, residential

programmes and examinations for participants of various batches of Master in Business Finance Certificate Course.

n Introduced concessional fee structure for Post Qualification/Certificate Courses being organised by various committees of ICAI for Young Members.

n Conducted Certificate Course on Wealth Management and Financial Planning at Ahmedabad and Mumbai.

n 66 batches of the Certificate Course on Valuation conducted and 3,300 members registered for the Course till date.

Other Publications/e-Publicationsn E-newsletter containing details of Activities/

Programme/Workshop and details of forthcoming activities for young members.

n E-booklet containing compilation of useful professional information for Young Chartered Accountants.

n Revised Young Members Kit-Carve a Career Limited only by Your Dreams-The Essential Roadmap for young members’ including a Booklet in hard copy and CD of E-booklet.

n Recorded video of two young Chartered Accountants who succeeded in UPSC-2015 examinations and got selected as IRS to motivate Young Chartered Accountants for cracking UPSC exams and enter into Civil Services.

n Quarterly e-Communique Prudence released to give an insight on recent regulations and changes in the field of Public Finance and Government Accounting.

n Circulated summary of significant notifications, circulars and other important development in the area of Indirect Taxes among the IDT NET members to update the members.

n Uploaded all its publications on its website which can be downloaded by members free of cost.

MEMBER SERVICES

This year ICAI constantly served its members through various initiatives including striving for increasing their professional avenues and capacities, representing to the government and resolving their professional concerns, organising campus placements programmes, etc. Following are the highlights:n Members and students at Regional Councils,

Branches and Overseas Chapters joined hands and celebrated CA Day on 1st July by participating in a series of programmes/events like cleanliness drive, tree plantation, distribution of literacy kits, blood donation camps, etc.

n ICAI represented to CBDT and Union Finance Minister for deferment of Income Computation & Disclosure Standards (ICDS) and followed it up with meetings with senior CBDT officials.

n ICAI’s suggestions favourably responded by Government and applicability of ICDS deferred by one year.

n Requested various Banks/ Insurance Companies/Airlines for providing specialised loan/ Insurance schemes/Air Fare Schemes to young members.

n Guidelines issued pertaining to responding to tenders calling for rendering professional services in areas exclusively reserved for members



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of the Institute under clause (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949.

n Actively took up and resolved the issue of blocking of e-filing accounts of many members by Income-tax authorities on account of mismatch in their and ICAI records.

n Campus Placement Programmes were organised across various big and small centres in India.

n Unique initiative called Career Ascent introduced to offer placement prospects to experienced professional members.

n Convocations 2016 organised in 10 cities across India for newly-qualified chartered accountants who enrolled during October 2015 and March 2016.

n Another round of Convocations organised on 31st January 2017, for members who enrolled themselves between April to September 2016, in 10 big cities.

n Group formed to study and suggest changes in the Guidelines relating to Networking of CA Firms.

n Recent opinions issued by Expert Advisory Committee and CD of Compendium of Opinions–Volume XXXIV hosted on ICAI website for general information of members.

n An online Bank Audit Expert Panel constituted to address the queries of the members related to bank branch audits for the Financial Year 2015-16.

n Issued clarification on the transitional time gap in the requirements relating to the engagement partner’s rotation under SQC 1 and the auditor’s rotation under the Companies Act, 2013.

n A separate redressal forum ([email protected]) for Women Chartered Accountants was formed wherein they can write their concerns, queries and suggestions related to the profession.

n A separate portal (www.womenportal.icai.org) launched with an objective to provide flexi working/part time working opportunities to women members.

n Regular redressal of queries raised by members through e-Sahaayataa portal.

n Arranged tools/software for Audit and Office Management. Currently eight different Audit tools and Total Antivirus Protection Software arranged.

n Executed ‘MoU’ for Motor Vehicle Insurance with New India Assurance Co. Ltd. at discounted price

of approx. 65% of MRP for members and staff.n Issues raised by members based on new

technology and contemporary developments considered by the Ethical Standards Board which would help the members in the day to day resolution of their professional dilemmas related to technology.

IT INITIATIVES

In this hi-tech era, where technology has crept into each and every sphere of life, it is imperative for the profession also to evolve technologically to excel further. This year ICAI took a number of steps to harness new and improved technology to better serve the members, students and other stakeholders. Following are the highlights:n ICAI Leadership used Google Hangout, to

address 2nd round of Convocations for newly-enrolled members, broadcast simultaneously live at 10 different locations.

n Launched new and improved version of mobile app ICAI Now, which has an average rating of 4.2 and has been downloaded by more than 330,000 users.

n Introduced Senior Citizen Portal/Self Service Portal for Members in Practice.

n XBRL taxonomy, based on Ind AS and Ind AS compliant Schedule III requirements developed for companies.

n Enabled Paytm Payment gateway services on ICAI Website for Members and Students where all online transactions are free of cost for one year for Net banking and Paytm wallet.

n Developed online mode of Regulatory forms. Currently, Form-9, Form-6, Form-101, Form 117, Form 103, Form 103 (Re-registration) and Form 109 are available in E-Services section of ICAI website.

n A Self Service Portal for Students, Members and Firms being developed.

n ICAI Social Media accounts configured on Facebook, Twitter, LinkedIn, Google Plus and YouTube.



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n ICAI Social Media Networking presence increasing continuously with total number of Followers having crossed 2,80,000+ users.

INFRASTRUCTURE DEVELOPMENT

Infrastructure is the foundation that can facilitate higher and higher growth of the profession. Keeping this in mind, ICAI further enhanced its network across the country by taking steps towards establishment of new branches in all the corners of the country among other steps.n ICAI notified 10 new branches after February

2016—Kalyan Dombivali, Kanchipuram District, Ratnagiri, Ichalkaranji, Kaithal, Kurukshetra, Bhiwani, Brahmapur, Jharsuguda and Bahadurgarh Branch in Jhajjar District. Overall, the tally of notified Branches of ICAI is 162.

n As part of infrastructure expansion exercise, the buildings of Ajmer Branch of CIRC and Rohtak Branch of NIRC were inaugurated along with the auditorium of Pondicherry Branch of SIRC.

n Purchased 10 new infrastructure, i.e. land, premises, etc., for the Branches of SIRC (Kannur Branch), NIRC (Jalandhar and Gurgaon Branches), CIRC (Gorakhpur, Jabalpur, Moradabad, Pali and Agra Branches), and WIRC (Goa Branch) and 15 cottah land for EIRC Kolkata.

n Construction proposals were approved for Ajmer Branch of CIRC, Surat Branch of WIRC and Hubli Branch, Kannur Branch, Rajamahendravaram Branches of SIRC, Bathinda Branch of NIRC and Bareilly Branch of CIRC. Construction underway for Centre of Excellence in Jaipur.

RESEARCH INITIATIVESICAI has been considering Research as the stepping stone to a brighter professional future full of improved capabilities and greater excellence. The drive continued unabated this year, particularly through ICAI-ARF and Research Committee.

n ICAI made crucial headways in its research initiatives through ICAI-Accounting Research Foundation (covered above under the head Partner in Nation Building)

n Undertook research projects on current and continuous basis to enhance the value of the services rendered by the profession.

n A research-based request was sent to Ministry of Corporate Affairs (MCA) for changes in the Schedule II to the Companies Act, 2013.

n Compendium of Guidance Notes on Accounting (As on April 1, 2016) issued.

n Workshop towards Excellence in Financial Reporting held in New Delhi to improve presentation and disclosures in published financial information by various entities.

n Provided technical support to SAFA ITAG Committee.

UPGRADING ICAI FUNCTIONING AND HR

This year ICAI paid special attention on upgrading internal functioning of ICAI by improving HR and delivery mechanisms to meet the expectation of the stakeholders. Conducting training programs for employees, and efforts for putting in place an effective Human Resources policy were among the highlights:n ICAI leadership had a meeting with Regional

Council Chairmen in Hyderabad to share key aspects of the ICAI vision for 2016-17 and facilitate focussed and cohesive functioning.



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n 2-day Orientation Programme for all Regional Councils and Managing Committee members of Branches in respective Regions in the first year of triennial term during March-April 2016.

n A long series of Training Programmes organised for the staff to enhance their role and skill sets. ICAI conducted mandatory 20 hours training and induction programme for its employees.

n Undertook the following initiatives: o Forming an eminent group to study and

revise the ICAI Purchase Policy;o Group to formulate effective Infrastructure

Policy for Centres of Excellence besides introducing several cost cutting measures;

o Strengthening office discipline to increase productivity and ensure efficient delivery of services; and

o HR Transformation Committee is proactively working to put in place an effective and dynamic Human Resources policy in the ICAI.

n Meetings of officers and employees to collect feedback and discuss improvements in systems.

INITIATIVES FOR STUDENTS

Students are the future of the CA profession. Thus, ICAI has been laying special emphasis on their growth and development to transform them into multifarious and matchless professionals. This year also it took a series of steps to achieve this objective, most important being the efforts towards a Revised Scheme of Education and Training for CA students. n Scheme of Education and Training: Revised

Scheme of Education and Training for CA

Course, which benchmarks CA education with the best global standards, is all set to be launched soon. The related Draft Regulations have been hosted on ICAI website.

n Organised an International Students Conference on 7th-8th January, 2017 at Hyderabad (attended by more than 2,300 students) and an All India Students Conference on 16th-17th December, 2016 at Ernakulam (attended by 1,500 students).

n Online article placement facility provided to students towards their selection by CA Firms through its Articles Placement Portal on pan-India basis.

n ICAI Commerce Wizard-2016 - a talent search test, organised by Career Counselling Committee across India to promote commerce education among school students.

n Executed MoU with New India Assurance Co. Ltd. for providing Motor Vehicle Insurance for the Students of ICAI at discounted price of 65% of MRP.

n Online payment gateway facility for students set to be started with three banks shortly. An agreement to this effect has been signed.

n Cloud Campus: BoS, ICAI actively leveraged technology to facilitate distance education for all the levels of CA Course through ICAI Cloud Campus (http://cloudcampus.icai.org). It is being used by over 1.70 lakh students who have crossed 57.29 lakh study hours.

n Organised more than 50 Conventions/Conferences for CA Students on pan India basis wherein around 40,000 students participated.

n Orientation Course (OC): Orientation Course has been revamped by merging the syllabus of General Management and Communication Skills I, thereby making it 15-day (90 hours) course, required to be completed by students before registering for articled training.

n Six Batches of Four Weeks Residential Programme on Professional Skills Development held at Centre of Excellence, Hyderabad during the year in which 312 students were trained.

n To facilitate the talented students to approach firms/industries and vice-versa, Campus placements for CA students for Articleship/Industrial Training on regional basis would be conducted in 1st & 2nd week of February 2017. n

The only place where success comes before work is in the dictionary. - Vidal Sassoon

significant achievements in council year 2016-17: raising the bar … · gst regime, black money...

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