17 December 2012
Dear Sir/Madam,
Corruption is a global phenomenon. It plagues the developing and the developed economies alike. Corruption in the government is visible and public but the magnitude of corruption in private sector is far greater. Let's analyse... Corruption involves two parties; the giver and taker. In bureaucratic corruption, the receiver is someone in the government but the giver is invariably a private organisation. Add to this the inter-corporate corruption in the private sector and the magnitude of corruption there goes up manifold. There is corruption in all walks of life — education, charity, healthcare, insurance and even religion.
The genesis of corruption is greed, which is universal. However, while corruption is universal; it not uniformly spread. There are countries where corruption is less visible than many others. There are organisations which are known for their non-corrupt values. There are honest individuals even within the most corrupt environment. Values, right education, perceived justice in operations, fairly equitable distribution of wealth and progress, fear and shame, contentment and spirituality are important parameters that determine the degree of corruption — where these exist, corruption is generally low.
Developed economies have strict Anti-Bribery and Corruption (AB&C) laws & regulators that act as deterrents. Prominent amongst them are The UK Bribery Act 2010, US Department of Justice, Securities and Exchange Commission and Foreign Corrupt Practices Act. Multi-national companies especially run a very high risk as they operate in many countries. Corporates go to great lengths to ensure that remote offices do not default, which could have ramifications on the parent company back home. In many organisations even accepting and giving gifts is prohibited lest the judgment of the individual is affected, compromised or questioned.
The AB&C measures taken by companies include:
• Formation of AB&C policies and guidelines
• Communication to and education of all stakeholders including, executives, employees, vendors, consultants, etc.
• Setting up committees to monitor non-compliances and to provide guidance
• Zero tolerance to incidents of bribery or corruption
• Independent audits, MIS, reporting, declarations etc. from all stakeholders
• Stringent risk management
• Pulling out of corrupt economies, in extreme cases
The risks of bribery and corruption far outweigh their short –term gains. Loss of reputation is the single largest risk. Penalties, damages, litigations are close seconds. The organisational culture and pride also takes a beating, which in turn affects morale and productivity.
A lot needs to be done and can be done in the Indian environment. The ministers and bureaucrats have brought us enough shame. But in the private sector will we suo moto work towards eradication of corruption or will we wait for a Lokpal for private organizations?
Our HR committee is organising a program for CA students in February and this sparks some thoughts on issues concerning the CA students, which I will cover in the next issue.
Here's wishing everyone happiness and love.
Yours sincerely,
Naushad A. Panjwani
Vice President
We thank our members who have opted to receive the newsletter by e-mail instead of the printed copy. The full newsletter is available on the BCAS website at the following URL:
For ready reference, fast facts about our ensuing programs are given below. Should you require any further information, please feel free to call us up on 61377600 and speak to our General Manager CA. Cassem Rajabali.
| Sr. No. | Name of the Event | Date & Time | Venue | Event Details |
| 1 | Lecture meeting on Selected Tax Accounting standards | 20-12-2012 6.15 pm onwards | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 2 | Suburban Study Circle | 22-12-2012 4.00 p.m. to 6.00 p.m. | Direct-I-Plex, Old Nagardas Road, Opp. Wilson Pens, Near Andheri East Subway, Andheri (East), Mumbai - 400069 | |
| 3 | Sports Day | 30-12-2012 9.00 am to 6.00 pm | BMC Sports Complex, Azad Maidan, Fort | |
| 4 | Lecture meeting on Recovery and Stay Proceedings | 02-01-2013 6.15 p.m. | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 5 | Workshop on Partnership Firms | 18-01-2013 1.30 p.m. to 5.30 p.m. | BCAS Conference Room, 7 Jolly Bhavan No. 2, New Marine Lines, Mumbai – 400020 | |
| 6 | Seminar on Transfer Pricing | 19-01-2013 9.00 a.m. to 6.00 p.m. | 4th Floor, Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 7 | 2nd Advanced Computer Training Programme for Senior CAs | 22-01-2013 to 18-02-2013 5.30 pm to 8.30 pm | H. R. College of Commerce, Churchgate, Mumbai | |
| 8 | Lecture meeting on Risk and Rewards of Practice – A guide for new and young CAs in practice | 23-01-2013 6.15 p.m. | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 9 | Students' Education Crash Courses | 25-01-2013 to 31-03-2013 | Sydenham College, 'B' Road, Churchgate | |
| 10 | Seminar on 'Certification under the Income Tax Act, 1961' | 25-01-2013 9.00 a.m. to 5.30 p.m. | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 11 | Seminar on Real Estate | 01-02-2013 & 02-02-2013 | J W Marriott, Juhu, Mumbai | |
| 12 | Lecture meeting on Recent Developments in SEBI Regulations | 06-02-2013 6.15 p.m. | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
| 13 | 11th Leadership Training Camp | 08-02-2013 to 09-02-2013 | Rambhau Mhalgi Prabodhini, Uttan, EsselworldRoad, Bhayander(W) | |
| 14 | 3rd Intensive Study Course on Transfer Pricing | 09-02-2013 to 27-04-2013 9.00 a.m. to 6.00 p.m. | Indian Merchants' Chamber, Churchgate, Mumbai | |
| 15 | Workshop on 'Personal Victory' for CA Students | 10-02-2013 10.00 a.m. to 5.30 p.m. | Jolly Bhavan, 2, Ground Floor, New Marine Lines, Mumbai | |
| 16 | Lecture meeting subject to be confirmed | 11-02-2013 6.15 p.m. | Rama Watumall Auditorium, K. C. College, 124, Dinshaw Wachha Road, Churchgate, Mumbai – 400 020 | |
| 17 | Seminar on SAP Security, Audit & Control | 21-02-2013 to 22-02-2013 9.00 a.m. to 5.30 p.m. | Gulmohar Hall, Bombay Chartered Accountants' Society, Jolly Bhavan, New Marine Lines, Mumbai - 400020 | |
| 18 | Students' Annual Day | 23-02-2013 | Navinbhai Thakkar Auditorium, Vile Parle East, Mumbai | |
| 19 | Lecture meeting on Inquiry by ROC u/s 234 of Companies Act | 27-02-2013 6.15 p.m. | Walchand Hirachand Hall, Indian Merchants Chamber, Churchgate, Mumbai – 400020 | |
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