Good afternoon!
I come from the legal profession and seem to be a little isolated here. Except for me and the Hon’ble Minister Praful Pansheriya Ji, all our Chartered Accountants, the sitting couldn't be more difficult for me. I know Chartered Accountants in and out. I have greatly benefited from them. My neighbour in Jaipur was Mr. Sunil Goyal, your past president. Whenever in difficulty, he was always available.
When I got into Parliament for the first time in 1989 in the Lok Sabha from Jhunjhunu, I had the good fortune to be a Minister and had an encounter with Mr. K. M. Memani. He hails from my state, and I hail from his State. A very talented man, very methodical, very meticulous in approach, and had no fault lines. I thought the journey would end and might connect with Chartered Accountants would last only with filing of returns and auditing of my accounts.
I became vice president of the country and, by virtue, Chairman Raja Sabha. I have an enormously talented chartered accountant as the leader of the House, Union Minister Shri Piyush Goyal. Let me tell you, friends, Chartered Accountants, no chartered accountant perhaps has ever risen in the parliamentary set up to this high office.
Parliament comprises of the Lok Sabha and Rajya Sabha, known as the Upper House, the House of elders. The Prime Minister is the leader of the Lok Sabha, and Mr. Piyush Goyal is the leader of Rajya Sabha. I can assure you, your loss of this very distinguished chartered accountant, merit holder, is a gain for the Indian parliament, but then it's not easy to deal with Chartered Accountants.
God has been very kind to me, and I had the benefit, and I still have the benefit of former CBDT Chairman Mr. P.C Modi, the 1982 batch Indian Revenue Service Officer. By virtue of his office as CBDT chairman, he knows how to deal with Chartered Accountants. This has greatly helped me in getting the best out of Mr. Piyush Goyal.
Shri Praful Pansheriya Ji, we are together; none of us is a chartered accountant. Ms. Asmaa Resmouki, welcome to this country. You're the President of the International Federation of Accounts. You've come to this country, home to 1/6 of humanity, in a year where parliament has passed legislation providing for 1/3 reservation, horizontal and vertical, for women in Lok Sabha and legislatures. Welcome to this country.
Ranjeet Kumar Agarwal, we both belong to a category where sometimes people sympathize with us. We are vice-presidents. Friends, I have kept the record because Chartered Accountants need a record. They don't act without records. One Chief Minister complimented me on becoming vice-president but addressed me as viced-president; another very dear friend of mine, I don't know by design or accident, put me in the category of wise President, and the third one congratulated me greatly but forgot to sign it. Why do I say so? Signature events in the world are great. They indicate branding. But your signature, friends, is a signature. This is an unrivalled brand because this brand contains an element of impregnability. Your signature insulates the vulnerable. That kind of protection, which normally is not available.
We have in Rajya Sabha a very distinguished chartered accountant, your past president Mr. N. D. Gupta, enormously talented, highly decorous will always open the chair and never disturb or disrupt the house. His son has also been President. But we have Aniket Talati, and I'll tell Mr. N. D. Gupta, Aniket has stolen a march; he has stolen a march on very good ground. He's a third-generation chartered accountant; his distinguished father is present in the audience, my greetings to him. His grandfather was part of the tax system, which started a chapter at Ahmedabad. He brings on the table a unique DNA that will help the organization for sure.
Debashish Ji, from West Bengal, Nomaskaar! I've been the Governor of West Bengal for three years, and I know the power of a gender, but hats off to him. He could pick up the courage and organize my functions, which means he knows how to take risks very safely.
Jai Kumar Behra Ji! This place, friends, you have very wisely chosen this place, Mahatma Mandir, full of sublimity, Gandhi Nagar and then the State of Gujarat, I salute the land of Gujarat for giving us this day in Amrit Kal. Father of the nation Mahatma Gandhi, through satyagraha and non-violence got us freedom. Sardar Patel, the Iron Man, a befitting statue of unity is a tribute to him. He could effect integration of states, princely states into what is now Bharat. And now, after three decades of coalition governance, a difficult scenario, I was witness to it. I was a Union Minister in 1990. Our gold in physical form had to be airlifted to be pledged to two banks in Switzerland to sustain our fiscal credibility. But this man of destiny has elevated India to that level that our foreign exchange today is over 600 billion.
India's Prime Minister is a man of vision execution and has a passion which he realizes by putting India on a fast trajectory of growth. As was indicated very rightly by your loss and our gain by Mr Piyush Goyal, in September 2002, we had a great distinction of becoming the fifth largest global economy over taking our erstwhile colonial rulers UK and France but what is more important and which this audience can appreciate, is just a decade ago India was counted among fragile five nations, burden to the global economy. And look at where we have come. We have traversed a distance. The words of the IMF president resonate in my ears. I have had the occasion to meet her on three occasions in longpan, Qatar and G20.
India according to the IMF is the hot favorite destination of investment and opportunities. Kahan Se Kahan aa gaye. What a soothing development. The World Bank president, the person of Indian Origin, who came to attend G20 and P20 both. He reflected digital penetration in India, digital accomplishment India is of a level achieved in 6 years which is not achievable, according to him, in 47 years. Why did he say that? In 2022, our digital transactions, knowone knows better than who audits, you audit!
In 2020, our digital transactions were four times more than the combined transactions of UK, US, France and Germany taken together. Further, per capita data consumption of the internet, our record is unrivalled, we are more than that of USA and China taken together.
The people in this room are not ordinary individuals. You are the Nerve Centre, Eicenter of big change. You can catalyse with movement. You will shape what Bharat will be in 2047. It is your efforts, your far sighted approach, your commitment that will take Bharat at 2047 when it celebrates the centenary of its independence and be the most developed nation on the planet and that is a reality. I may not be able to see, most of you may be able to see because you are the foot soldiers in the great rise, incremental growth trajectory of this nation, to see Bharat blossoming and regaining what we had ages ago.
Friends it has been an absolute privilege and honour to be amongst you all at the inauguration of Global Professional Accountant Convention. The thoughtful theme of this convention connecting the globe, creating value, and being very thoughtful is contemporaneously relevant to the dynamics of our economy.
Friends, your theme is in sync with G20 Motto that is ‘Vasudev Kutumbkam’ ‘One Earth, One Family, One Future’. We have not created this motto because we were hosting as president of G20. It is an essence and reflection of thousands of years of a civilization's ethos. We have worked for it. Let me remind you of a recent event that is COVID Pandemic, which affected the entire world in a non-discriminatory manner. High and mighty, rich and poor all suffered.
Even during that leaving up to our motto ‘One Earth, one Family, One Future’, our Bharat extended assistance to about 100 countries by supplying co-vaccine. What a great accomplishment! Institutions are vital for democratic governance, for nurturing of Democratic values but yours is a very special one. It is fortunately playing a stellar role in building standardisation and sustaining the financial accounting framework of the nation. This is vital. If this does not happen, other things will go down the drain. so your role is unique. Any dilution of that will have a cascading impact.
The Motto of ICAI या एष सुप्तेषु जागति- means "a person who is awake in those that sleep ''. And we have people moved by greed who are not in sleep, they feign sleep. And therefore you as chartered accountants have to leave up to this Motto because it encapsulates your role.
A Chartered Accountant is an important pillar, spinal one, in economic growth of the nation, and why? You are preventing Corruption, malfunctioning, unravelling window dressing, detecting frauds in companies.
Chartered accountants as the custodians of financial integrity need to exemplify by action to secure transparent and accountable financial systems. I say this with emphasis because you alone can do it and no one else can do it. This is your exclusive domain and powerful domain because if I chartered accountant stands, the resistance can be momentary. Ultimately he has to prevail. That is the power you have and that is why I say your signature is signature.
There can be, now that I am saying with full sense of conviction having gained experience and constitutional positions as Governor, Chairman, Rajya Sabha and Vice President apart from being a legal profession from four decades. There can be no legal transgressions or window dressing if Chartered Accountants are so determined.
I have no doubt to serve Bharat land, to be in service of the nation, to see its implemented trajectory going up, to see Bharat as a developed nation in 2047, your determination I can read in your eyes it will be there for the nation.
I need to invite your attention to the contemporaneous mechanism of the governance that can help Chartered Accountants to unleash energy, channelising your wisdom to serve Bharat and to secure public good. And what is the big change that has taken place in the last 10 years.
The man of destiny from Gujarat, the tallest leader of the world Prime Minister Narendra Modi has created an ecosystem where transparency and accountability are new norms. They are not exceptions, they are general. No one was better than the audience here. There was a time when power corridors were once infested with corrupt elements that extra legally leveraged commercial decision making. They are now sanitised. You will not see in power corridors these menacing elements.
They are gone for good ,they are gone forever, they have been consigned to history. This is one change that will be helping the chartered accountants. Otherwise corruption is the greatest handicap to a chartered accountant working because someone takes your job and has it accomplished through corrupt means but when there is zero accommodation for corruption chartered accountants blossom. They can play on the front foot with a straight bat.
The second big change “Be you ever so high, the law is always above you” is often created globally to indicates supremacy of law but this in our country is now a ground reality with none being beyond the reach of law.
You know it much better than I do. A category of people who carried a thought that they are above law, law cannot reach them, they have learnt their lessons in the hard way. This is the second big development.
The third, Banking inclusion has resulted in game changing explosion resulting in unprecedented growth to the benefit of weaker and vulnerable sections of society.
We had a Prime Minister, a sincere Prime Minister in the 1980's. He spoke the truth in the 80's that the amount sent from Delhi only 10% reaches to the targeted audience, the leakage was 90%. Now the mechanism is different. 100% direct transfer is taking place and this is on account of banking inclusion.
In the last 10 years over 400 million bank accounts have been opened of those who never thought of being in that position. The accounts were opened at the initiative of the Government and that has paid heavy dividends to us. It has stood us in good condition both in Covid and otherwise.
As a son of a farmer I take pride that in a country over 11 crore farmers are getting direct transfers, 3 times a year and the amount so far is over Rs. 260000 crores. What is important is not that the amount is being sent to them but what the supreme importance is that my brothers and sisters in the farming communities are enabled to receive that amount directly. That is a big achievement. It is on the account of technology penetration.
Friends, we had a tryst with destiny when we got independence at midnight on August 14, 1947 but the man from Gujarat, the man of the moment for one sixth of humanity, a global leader Prime Minister Narendra Modi did service, did something amazing on the night of 30 June and 1st July.
GST, the largest tax reforms since Independence affecting complete transformation of the indirect taxation landscape in the country was unfolded. This was a qualitative shift. It was our trust with modernity. A deep sense of gratitude to everyone before me for working hard, overcoming hiccups, changing mindsets of business, trade and industry and giving GST its due.
Your efforts fructify, your efforts made it a game changer and the GST was converted by you into a 'Good and Simple tax'. The nation is ripping bountiful gain out of it. I have indicated this factor only because there is now a congenial ecosystem for chartered accountants to play in the joints.
They no longer have to battle against a system which could bring their substitutes. You now have no substitutes. Your domain is exclusive. Your signature will carry impregnability and therefore you have a larger rule to play.
Adherence to a fair taxation and financial reporting system is much more than merely providing revenue to the government. Ethics is important in every walk of life. What if there is a dilution of ethics it has an impact for the violator. It has a ripple effect but when ethics is compromised in a profession like yours, it has a huge cascading effect. It is not less than an earthquake in the fiscal world. Ethics are non negotiable. They are not optional, they are the only way out.
Ethics are quintessential to your profession to ensure trust and integrity in financial reporting, auditing, taxation, and consulting services. Out of experience I can say that Chartered Accountants in Bharat have the highest ethics quotient. They make several efforts to see their clients adhere to the rule of law. They inspire them, motivate them but now the system has made mechanisms more weaponised for you. And you must therefore be not in a suggestion mode but in a driver's seat.
You, as an informed member of this important professional category, are fully aware of the situation that the world faces. It was in Mid-2002. A global auditing accounting firm of great repute, taken to be one of the big 5 or 6, it collapsed, it disappeared. This was triggered on account of its questionable accounting practices for an energy and telecommunications company. And what was the underlying premise in an unqualified manner, it caved in, gave a professional approach and ingratiated with the management.
We in this country have to remember what Gandhiji said 'There is everything available for ones needs, but not for greed'. We have to be on the watch out to see that the situations are contained. We have to work in a manner to contain this trend, a dangerous trend, a trend that has a potential to upset the physical ecosystem and impact it very seriously on weaker vulnerable, small tax paying people.
The good thing is that by and large our chartered accounting fraternity is not a part of it. You are above it but your job doesn't end there. Your global reputation has to be preserved by taking care of such elements.
I have no doubt without fear of contradiction I can assert if you are firm, you are determined, you believe in your conviction, you think it is in service of Bharat Mata, nothing can stop you from neutralizing such transgressions that breeds such menacing scenarios.
Friends, I am before an audience that has a huge potential to generate exponential growth of an economy because you know everything about it. You are beyond X-ray, you are beyond MRI, you are the finest form of MRI and I call upon you, I urge you to nurture the spirit of Economic Nationalism amongst the trade, business and industry.
It pains my heart like yours when in a country of this size our precious foreign exchange is drained out by the import of furniture, carpet, diyas, candles and what not. Economic nationalism cannot be compromised on the premises of fiscal gain. You alone more than the government or anyone else can do it by enlightening, sensitizing trade, business and industry that we must not get into our country, what we have here only because it is available slightly cheaper.
Let me give you the impacts immediately. When we import items that are available in this country from outside, we are injuring employment prospects of some, we are retarding entrepreneurial growth of some. The prime minister in his Man Ki Baat appealed to everyone to 'Vocal for Local'. I am so glad from the podium here that one of you, your current leader, has given this Clarion call. I call up on you to engage into this activity and inculcate in the business trading and industry community a deep community commitment to economic nationalism. Why I appeal to you, I like others because domain leveraging is done by Business, trade and industries and no one can have a more critical role to sensitize and enlighten, then yourself because you know from their balance sheets, you know from their audits the real situation.
Another aspect on which I see to draw your intelligence, foundations benefits, is export of raw material. In a country with such a kind of entrepreneurship scale, with such a kind of human genius, we go to exports. Iron ore being exported, raw material being exported, the writing on the wall is very clear. We are not capable of adding value to our raw material and we impact ours but some people think it is the easy money that lets send raw material to another country so they will use it. We will have to develop a culture that we engage in value addition. Our ports will carry materials which are value added to raw material and not the raw materials.
As informed professionals fully involved in evaluations of economic factors, your interventions, unlike other interventions, would go a long way in shaping the mindset of industry, trade and business and thereby ensuring blossoming of economic nationalism as also motivating trade, business and industry to engage in value addition to raw materials.
It has been indicated here and I’m so glad that it has been done, not many people know but you are informed. Time to work towards availing recent ground-breaking technological advancements like Artificial intelligence, Machine learning, Web 3.0 and the kind. India now is one of the few countries that are critically engaged in what we call a 'Disrupted Technology'. Quantum computing could you imagine, the number of countries in this world are not in double digits that are engaged in Quantum computing but we are. Our Quantum mission already has an allocation of over 6000 crores. Our Green Hydrogen Mission already had an allocation of more than 90000 crores. Now it is for you Chartered Accountants to tell your clients that by 2030 green hydrogen will invite investment of 8 lakh crores and generate employment for 6 lakh crores. You can be an epicenter to inspire your clients to engage into this activity well in time.
Like it or not, disruptive technology is our bedfellows, we will have to live with them and therefore we have to ensure we unleash positivity. In the digital era all efforts need to be made by Chartered Accountants so as to be at the front line of a lining with the digital ecosystem and I am happy to note that Chartered Accountants are doing significantly well in this direction.The emergence of the FinTech segment can be case in point.
Friends I greatly upload appreciate your endeavours to promote and secure financial inclusion, financial and tax literacy, social security and pension planning. These are resulting in empowering the common man. These efforts must gain momentum.
The greatest challenge these days is that an informed mind, a knowledgeable person will try to monetize ignorance of others to secure political equity. You can neutralize that. You are well equipped to do that and I am sure this is sure to happen.
It was in the late 80's when I had a professional encounter, as a young lawyer with a sitting Supreme Court judge, who had indicated in one of the judgements that tax planning, tax evasion and tax avoidance are nearly the same.
Go to a chartered accountant well in time and you will have good Tax Planning. If you happen to be a very powerful man, here before us former CBDT Chairman, very impactful tenure. It becomes avoidance when you are powerful but if you are not that powerful you are vulnerable. It is evasion. Now things have changed. Tax evasion and financial frauds endanger the financial stability and economic growth of the economy. As watchdogs your capacity is potent enough to contain these.
A CA acting spinally with highest ethical standards, no challenge can undo his endeavours, others will have to fall in line. A very small fraction if gets out of the line, cannot pick up courage to challenge because you are on a firm ground.
A tax system is only as good or as complicated as you all make it. You are the ultimate architect of it. Take a pledge to be a global leader in benchmarking best practices that enhance ease and transparency.
As Governor state of West Bengal, I was heading a group of 10 governors to give a report on Ease of governance in business. That was my first encounter with the difficulties that business people faced. I was a professional filing a return for me was not difficult, not that complicated and we came out with a good report getting able assistance from Niti Aayog.
Advising on tax planning is your domain. As there is a domain for legal professionals to advise client but this domain has a thin line. This should not extend to tax dodging and tax evasion. You are the custodians of the thin line between tax planning and evasion.
Now this thin line, you are the custodians of the thin line between Tax Planning and evasion. Always tells in favour of tax planning and condemn tax evasion.
I am confident that ICAI and its members will keep up efforts to move ethically towards building a nation defined by Ethical financial reporting and tax compliance. White collar crimes don’t leave behind a smoking gun; they leave behind broken families, hearts and a shaken confidence. You are a potent antidote to this pernicious mechanism.
As pillars of the financial ecosystem the Chartered Accountants should embark on a journey of further transformations in shaping the New and Resilient Profession which is driven by the ever-evolving technology.
Some people may find adoption of technology to be difficult. But you are the one who converted GST into Good and Simple tax. The nation will always be beholden to the chartered accountant fraternity for doing this humane service to 16th of humanity. You are capable of doing it.
Time for soul searching and reflections - its scratch beyond surface by incisive probe those concerned with auditing balance sheets.
By enlarge a large number is doing transparently effectively but there is a small segment, you have to pinpoint it, like the legal profession you have a strong professional mechanism to deal with such delinquencies, then tilt towards National interest and not individual welfare. You are being hard to individual but soft to the nation.
In the global theatre of outsourcing financial and accounting processes, India is emerging as a global hub on the premise of its outstanding human resource. The contribution of ICAI in this endeavour is truly commendable, result oriented. I was so happy to note silent efforts. They are making a lot of noise and positive sense. We can continue being proactive in that area
The congregation of more than 5000 professionals and you are unlike any other profession. You are unique, distinct, you are never in such a work, the work is searching you. So you have that kind of stability. So in such large numbers accountants from across the globe in this Convention is a valuable opportunity for all stakeholders to discuss, deliberate, interact to know each other's point of view and in the process evolve best practices that can make difference to any economy in a positive sense.
This Convention for sure will prove to be a true 'Window to the Future' in relation to the global accounting standards and practices as envisioned by the leadership of ICAI and its various partners from the financial and accounting sector across the world.
I am energetic, motivated and inspired . I carry from this place hope, optimism and confidence that ICAI will continue to make its mark on the global canvas for further enrichment and enhancement of the accounting and auditing standards and ethical integrity at national and global levels.
Wishing this convention a great success and best wishes to you all.
Jai Bharat!
