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ICAI panel to guide, support cooperative sector
March, 28th 2011

The Institute of Chartered Accountants of India (ICAI) has formed a committee to guide and support the cooperative sector in streamlining their audit procedures and raise governance levels, President G Ramasamy said today.

The ICAI has suggested replicating the successful laws in the sector in Maharashtra and Gujarat, so that the cooperative sector can bring out financial statements in a uniform manner in compliance with appropriate accounting standards, Ramasamy told reporters here.

As there were no such laws to govern other states, it was high time the Centre acted to bring the sector under the uniform financial statement concept, he said.

The ICAI also wants uniform disclosure of finances for Non-Profit Organisations (or NGOs) as huge donations are received from within and outside India, which have to be deployed as per law and streamlining of tendering procedures, Ramasamy said.

Discussions with the the Ministry of Home Affairs were on in this regard, he said.

The ICAI recently suggested that the Department of Higher Education to create a committee to support private educational institutes in streamlining their audit and in bringing out financial statements in compliance with accounting standards, he said.

As part of international initiatives, ICAI would like to have strategic collaborations with more international accounting bodies to enable it provide members a global outlook, he said.

Asked about the demand-supply mismatch of CAs, Ramasamy -- who was recently elected as president -- said the ICAI was trying to produce more CAs, since there was huge demand not only from corporates, but also industries.

A reverse trend is being noticed where 80% of CAs, who in the past preferred individual practice, are now keen to join industries, which offer a good pay package, Ramasamy said.

 
 
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