Wednesday, May 14, 2014

[aaykarbhavan] Awake OR Sleep Forever: 25 members views



Dear All,

 

I am in complete agreement to whatever CA. Aditya Jain has said below. It is indeed shameful to see our professional colleagues resorting to price skimming practices in a noble and respectable profession of Chartered Accountancy.

 

This is the reason that freelancer accountants dare to ask us how much do we charge for signing an audit ( “ its only signing and not auditing”). Such practices surely disrespect our profession and our skills.

 

There have to be some check on the same.

 

Best regards,

 

CA. Gaurav Goel

 

G Goyal & Associates
Dear All,

Really it is very shame-full to all of us. To avoid this situation, I think, there should be minimum fee to be quoted by tendering company.  

Institute has to make guidelines for the same. 

THANKS & REGARDS:
CA Prabhakar Gupta
9810093637
Dear Mr Nitish,
 I was going though your above mail and wish to add :-
1. The CA2013introduced on 27th March,2014 to be effective from 01-04-2014.
2. It may take 2-3 months minimum for the Professional faternity to understand the same and this will result in making violations of number of compliances thus resulting in professional negelgience and heavy penalities.
3. Further our bodies like ICAI/ICSI/ICWA are very much weak and in fact the representatives have their own interest above the professionals thus resulting no result in agitating.
4. What happened in 1997/98 when the Service tax was imposed on CAs etc. and not on Advocates and Doctors ?
5. It is my suggestion that instead  of  agitating we should adapt CHANKYA NITI:by creating a fear among our clients that they cannot do any business due to the main three restrictions
1. Not to  introduce any money as Share Capital without Compliances of Private Placement offer,  Special Resolutions, etc.
2. Not take any Loans or advances from any person.
3. To refund immediately all the money they have taken as loans from Shareholders, Directors(if from borrowed funds) , relatives any other person directly or indirectly ( trade Advances).
4To recover money if any paid to Directors, Shareholders, or firm, partners, Company etc,.etc. as Loans or outstanding as  SilentTrade Debtors.
 
AND also to terrifying them with the heavy penalities and imprisonment provisions of second 447 to 449 as were published in newspapers.
 
AND earlier we educate our Clients and create the fear of CO2013 the better will they come out on streets, agitate and pressurize the
govt to take some logical steps like giving immunity to existing situation and give some gestation period of 6 months-1 year

regards
 
CA RAJNISH JAGOTA
 
visit us at : www. jagota.co
 
R. JAGOTA & COMPANY
Chartered Accountants
301, Bharti Chambers,
G-2, Community Centre, Vikaspuri
NEW DELHI-110018
Tel 011-28542556 : Mob 9811084340; 9718178156

its not a first instances there are so many instances for such type of quotation. Its not only shameful to us but for also to our council members also who allow for such type of bids. Even three months back  ITPO called bids for its monthly concurrent audit with the condition that One CA, Two Semi qualified CA and two articles will sit there office for full time.  The lowest bid was Rs. 85,000/- PA.
Also in a case of RBI, Regional Office Dehradun the lowest bid was Rs. 9,000/- P. M. with the condition of Full time CA + 2 articles.
 
Think about it how it can be done.
 
Dear Nitesh Ji, I request you to put the matter with the council members of our Institute either to bar for bid or take control on it by making panel at their own and the Auditee will take the name of CA Firms according to their requirement from ICAI at the minimum fee as decided.
 

Thanxs 

CA P K SINGHAL
M. COM., LL. B., FCA, ACWA, DISA(ICAI), MBA(FIN), CS(INTER)
09313088386

Dear All,


I very much agree with the views and feel concerned about the news. In fact, we ourselves are downgrading our value and that is how others are taking advantage of us.

I think that the time is up when we should unite and do something in this direction.

With regards,

CA. P.K. Agrawal


You are right. That is why most of chartered accountants firms are not participating in tenders.

Govt. agency will find at the end that firm taking the audit is not doing it or using this appointment for taking other assignments.  

Thanks & Regards 

CA Sanjeev Agarwal 

Really action and introspection is required in the matter

 

Regards

CA MUKESH AGGARWAL

Chief Managing Partner

There should be an action. Total violation of code of conduct and minimum suggested fees.


Dear Aditya  

 

       It is really disgusting to know that such a low level of practices are being adopted by our fellow members.

On the one side the Institute is issuing minimum fees to be charged by professionals under capacity building programme and on the other side there are some members

Also who charge such a low level of fees. Actually Institute must take actions against this “Tender” process. We are professionals not contractors.

 

 

Regards

 

Anil Kumar Rai

This is not only case , there are many such type of lowest bids. It’s the real status of our profession.

 
Dear Brothers,


This is the maximum de-gradation of the Profession. Please compare your fees with any advocate,  software consultant or doctor, keeping in view the following facts :-

1. Type of  expertise required to complete the assignment
2. Type of infrastructure required 
3. Time to be consumed4
4. Responsibility taken
5  Estimated Office Expenses
6. Remuneration required for monthly job work
7. How much Audits and other professional work would you require to meet your office expenses and personal
    expenses.

    A tea vendor or vegetable or fruit  vendor would earn more. A 5-7 years experienced CA would require minimum monthly net income Rs.1 Lac. You add the monthly office expenses around Rs.50,000/- = Total is Rs.1,50,000/- . Now you have 24 working days and 8 hours office working and 25% times is wasted or unutilised = Total available time is = 144 Working Hours and total Fund requirement is Rs.1,50,000 = Then you Need Rs.1,042 per hour. Now, the question arises how much time would you pay to the assigned job. You can calculate the cost. Everything depends upon individual perception. Even, ICAI has prescribed the minimum charging rate for the fees.



CA M K Dublish



M K Dublish, Chartered Accountant
D-88, Sector-30, NOIDA Phones :
120-2456484, 2456823, 4318296 6485499

120-6486065 , 4318295 (Res), Mobile:9810232402

I completely agree.
The ICAI has laid down the mimimun recommended fees to be charged by members. The fees are pathetically low and degrading to the profession as a whole. 

I think its time the ICAI came out with MANDATORY Minimum Fees based on the amount of time and staff reqd to be assigned to the job, especially for the tenders.

These types of CHARTERED are the responsible for the distortion of our Profession image and they have fall much below the standards which our profession deserves. Instead of authorities we have to unite together and first of all we have to be correct our self and per scribe a standard for ourselves.

With Regards

CA Dinesh Arya, CA Sunil Garg, CA Puneet Bansal, CA Puneet Pruthi , CA Vikas Sharma ,


Madam / Sir
 
please refer the attached file and ask for any clarification.
 
 
With regards
 

GOYAL-09811324387

In fact the full process of tendering and response to the same is shameful. There should be central authority for allotment of audits to Chartered Accountants in a transparent manner, modalities of which can be worked out by the Central Government and the ICAI sitting together. The audit work over a region needs to be distributed to members in a equitable manner.

Lalit Kumar Agrawalla, FCA


the Lowest offer at ITPO was Rs.151/=

AKHIL GUPTA
9810844828
RATHER THESE TYPE OF FIRMS SHOULD COMPLETELY BARRED FOR ANY TYPE OF  WORK. RATHER THEY SHOULD STOP PRACTISING AND GO FOR A BETTER OPPORTUNITY . REALLY ITS A SHAMEFUL FOR OUR PROFESSION.

CA D JHA

Dear Mr. Jain

A minor Correction.... The lowest bid were some other firms... Many bids were in the range of 2000-4000 as last year audit fees was arnd 3,500.. However, the lowest bid by some other firms were as follows.

2 Firms - Price - blank/ No price quotation
1 Firm - Written as All negotiable
1 Firm - INR 101
1 Firm - INR 251

Dear All. (including Aditya Jain)


Apropos to subject , I would like state that 
Audit of Non profit entity provides following intangible benefit apart from monetary advantages:
1.Prestige to auditor
2.Non profit entity working exposure to staffs and self ,
3.Relation management
4.Profile beatification

If some ready to sacrifices monetary advantages for the shake above mentioned intangible benefits then we must appreciate it instead carping over monetary justification. 

For example ,We do most prestigious  colleges audit even for zilch(Rs2000) then someone cannot impute us for monetary justification. 

Audit allotment of any Non profit entity which is done by tendering process , should not be questioned until someone has cogent reasons and evidences about unfairness in audit allotment and for monetary justification. 

Casting aspersions on someone without Sufficient evidences is known as Kejriwal disease. It should be avoided by mature professionals.



Disclaimer -( I am not connected (even I unknown to them), directly or indirectly with M/s S K Chaddha and Goel Parul & Co.) 

Regards

CA(Dr.) Gaurav Dixsit

FCA ,ASA(Australia),PhD,M.Com ,B.Com(H)

(9899069319)

It is better to forget audit, unitedly, every body just like Gem and Jewellery Association did in the last budget. If every one decides not to do Statutory audit for the reason of Illogical, Harsh, Atrocious and Obnoxius provisions in the Companies Act, 2013 and handsover resignation letter to the client and client forwards the letter to MCA stating non availability of auditor due to which audit could not be performed, then there will be no alternative but

Government has to understand realities and well established position of the Auditor and his scope and basic responsibility casted on the Auditor.

Audit is a test check function and certain matter, may be very serious, may remain out of sample size selected. Broadly Auditor is to certify true and fairness of the Account. Wherever there is village / town, there has to be dirty place also which will co-exist. With every Posh Living area, there is always Basti / Jhupadpatti also where people are living and working as maid / servant in the flat of Posh Area. Simillarly, fraud has to happen wherever there is business. Our leaders are involved, indirectly in fraudulent scam of lakhs and crores of rupees. Thus occurring of fraud is a natural corollary of working organized business. The fact has to be accepted. For this fraud, Management has to take care and auditor can not be held responsible.

Without fraud business can not exist. IN fact happening of fraud proves that business is running. Otherwise it will be charity only. A peon goes to a place by ordinary bus which costs him fare of Rs.5/-. He charges for mini bus fare, which costs to the company at Rs.7/-. Does Government expect that auditor has to report such fraud by compiling hundreds and thousands of such daily conveyance journey performed by peons.

My dear friends, if you don’t report above incident, you will be penalized and I need not elaborate further, you know the minimum penalty which can not be condoned by any officer, MCA chief, Ministry or even any court including Supreme Court of India.

So whoever has send this mail with above subject, I fully appreciate the concern expressed in that mail. You all have to ensure that you should not take any audit job which has been denied to be performed by existing auditor. This unity is required from our level.

With regards,

Ashok Shah

Dear All

A agree with all the issues raised. 

It is our duty to look into the draft of the law being framed. 

If the drafts were viewed at the initial stages, this situation could never happened. 

So it is the primary duty of ICAI as well Senior members to raise issues at the intital stages of the proposed changes in the various laws to avoid this in future.

Regards

FCA C L Golchha
Membership No. 080597

Sir

Seeing the current position of new Companies Act,2013 and duties & liabilities cast on professionals there may be situation arise in near time when seniors professional may start exploiting junior/freshers professionals by giving them certification work to prevent their own skin by paying meager fee only.

Outsourcing work to juniors/freshers is no doubt good work by professionals as it helps freshers to build their practice specially in struggling days of initial years of practice.
But if the law itself become very strict against the professionals then this can be mis-used by senior professionals.

We should also consider this aspect and this type of practice if used anywhere should be discouraged.More suggestions/views in this regard are highly invited
 
Thanks
CA. Madhur Gupta

Respected Members,
With the mountain of duties and responsibilities casted on the professionals in CA, 2013 and by MCA Circulars ans Notifications, Do you think that professionals would "Venture" to perform audits/certifications. Though professionals should perform their and carry out their duties with full honesty,sincerity, independence,  and diligence but with the over-burden of responsibilities casted on Auditors and the  penalties on failure to perform as per stipulated provisions is actually a "Third Degree Torture".

Fees that is received, amount of skill people that would be required, management co-operation etc all have been overlooked in framing the stringent provisions.
Even companies will vanish and entrepreneurs would never think of starting company.

Its time that we CA, CS join hands and raise our voices against it. Let us not wait and expect somebody else to put forward our plight.
 I would like to  request all the group members, moderators, ICAI/CS Branch office representatives and each and every professional to join hands
and to raise voices against the same and let us in a professional and dignified manner put across our situation to Minstry.

Its Every Individual choice to either awake and do something or to sleep and forget audits.
 
Regards
Prarthana Jalan



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