Dear SHri Gharanji,
My groups I can not see due to problem in Firefox. I got your message. I can not approve due to problem.
But I have seen in one Valuation Report of Jindal Iron and Steel Limited with Sothern Steel Limited. Which was not correct. But was done on and in the name of Mihir Mafatlal case . In Valuation Report data of calculative part is kept secret. In merger petition also Hon. High Court allows in the Name of Mihir Mafatlal Hon. Supreme Court Case. Nothing else.
They do things ruthlessly. Without any ethics. If something wrong found give them compensation, and come out of it!!?? This is their policy world wide. They charge 10 times fees???!!! Out of it they pay compensation RARELY???? No body cares???!!!!
This is run time ....
This is run time ....
Thanks for comments,
Regards,
Shah D J
On Wednesday, 22 July 2015 11:51 PM, "Aishwarya Mohan Gahrana aishwaryam_gahrana@yahoo.com [company_secretary]" <company_secretary@yahoogroups.com> wrote:
Dear Sir,Big 4 firms not only doing Accounting and Management Consulting, but also Legal and Secretarial Practices.They employ all professional and exploit them as "knowledge worker" not a professional or an intellect.Thanks, Regards and Best Wishes,
Yours Truly
Aishwarya Mohan Gahrana
(ऐश्वर्य मोहन गहराना)
B.Sc., LL.B., A.I.I.I., F.C.S.,
Mobile +91 9868969599 9650338103CorpLaw Blog http://aishmghrana.me/
Nice compilation.CAs in India kept quiet whenBig4 invaded India after the 90sMaking their presence with allSectors of the economy includingGovt centre and States.In the present ICAI Council howMany big five are represented??Elections are coming. vote forSmall CA individual and smallFirms partners.Ramachandran M
Sent from my iPad
On Jul 22, 2015, at 8:16, "'CA AMRESH VASHISHT,MODERATOR' vashisht_2000@yahoo.com[ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:ACCOUNTING SERIAL KILLERS: The Methods & Madness of BIG 4CA AMRESH VASHISHTThe third-party report over Toshiba Corp's marked the most damaging event to their brand in 140 year history by breaking an accounting scandal of overstatement of profits going back to the 2008 financial year. The chief executive Tanaka and a string of other senior officials resigned on Tuesday for their roles in the country's biggest accounting scandal in years. Monday's report by an outside panel of accountants and lawyers said Toshiba had overstated its operating profit by 151.8 billion yen ($1.22 billion), roughly triple Toshiba's initial estimate. The Japanese Institute of Certified Public Accountants will interview accountants at Ernst & Young Shin Nihon and check documents for major items they may have overlooked, intentionally or otherwise.Its only replay of the 2010 episode on Indian soil related to satyam. India rocked by the accounting scandal on the same lines of overstating profits, cash in hand , fake turnover& fake tax credits . It was a fraud, which misled the market and other stakeholders by lying about the company's financial health. Even basic facts such as revenues, operating profits, interest liabilities and cash balances were grossly inflated to show the company in good health. The role of external third party auditors, who were tasked to ensure that no financial bungling is undertaken to carry out promoters' interest or hide facts, has also been brought into question. The auditors were having illegal professional affiliation with of Price water house. The Indian arm PricewaterhouseCoopers was the statutory auditor of Satyam Computer Services when the report of the scandal in the account books of Satyam Computer Services when the report of scandal in the account books of Satyam Computer Services broke.In India, The accounting professional growth is like an unguided target less missile. No field work is there. No regulator assurances are there. These targets less missiles may have a deadly impact. Some time someone, somewhere may hit own Dron and may blame it as enemy Dron. In fact, we require the Americans Patriot missiles to intercept as many targets less missiles are in operation. There are yearnings among us to return to the gold old days when the firms were small, there were leaders of great stature and camaraderie rather than competitive rivalry were the rule. In India, the Big 4 has destroyed the Tana bana of the profession.TRANSFORMATION OF INDIAN NATIONAL FIRMS TO INTERNATIONAL FIRMSOur profession has definitely gone through a transformation that largely parallels the rapid expansion of the economy. It was in the last 15 years the growth of the profession went through on the footprints of Big 4. The nationalist top firms have adopted a route to become larger by holding the hands and coverage of Big 4 firms. The Big 4 firms have largely absorbed the local firms and spread their wings to big corporations. Slowly these firms have entered in to midsized corporate houses and after 15 years they are looking for a final assault over smaller nationalized firms. No one can beat them. The only authority, i.e. the council of ICAI, which can check them and restrict them is now by and large at the disposal of the Big 4 being their paramount presence at council. The next few years shall be marked by their presence at the 40 hot seats and they know how they shall swallow the entire respectable accounting professional opportunity.All firms who sat on the lap of the Big 4 have expanded by employing member's at the large number and to fulfill their clients' needs they became international in scope. These firms have devoted a great deal of efforts towards establishing affiliations on a worldwide basis. The gap is quite clear between largest Big 4 firm and the remainder of the profession. Their first target is the firms of national level spread over to the whole country. These national level firms were built preliminary by serving big corporate, midsized and smaller houses. But these big corporate houses have already slipped and reached at Big 4. Mid Sized firms are slipping day by day. Presently BIG 4 doesn't care for the smaller corporate houses.THE EMERGENCE OF THE BIG 4The Big 4 firms and its destructive style of practice emerged around the turn of the century. These Big 4 firms can be found a pest and it gives a destructive institutional character. A character that is changing everyday as their features are their teachers are being arranged, the recast & the group on day to day bases. These firms are having a huge no. of chartered accountants as their associates. They are salaried chartered accountants and they devote their full efforts to the firm's clients. To provide them with the necessary incentive the firm holds out the prospects of eventual promotion to partnership, but only after prolong probationary period during which the associates work under the supervision & the tutelage of their seniors and are gradually assigned increased responsibility. The strategy is simple to recruit young. The presence of a steady supply of highly qualified, but inexperienced young recruits is one of the key ingredients of the big law firm.The core element of Big 4 firms is the promotion to partnership. Another way is to have a directorship of the associated companies dealing with the matters after than assurance or directors, partners, & employed chartered accountants are not equal, but are arranged in a hierarchy with command and supervision in the former. But they for them CA practice around the promotion to partnership patterns became the industry standard.The future of a Chartered accountant firm has already surfaced with a keynote that the work in the hands of these firms are not evenly distributed. Out of about 2,17,000 chartered accountants, fifty-two percent are in employment, and forty-eight percent, in public practice, The employment percentage is bound to increase as more and more qualified CAs are taking up jobs, rather than going into practice through professional CA firms.INTERNATIONAL / MULTI-NATIONAL ACCOUNTING FIRMSIn 2010, ICAI issued a document that MAFs are operating illegally in India. The fact is that Accounting Firms popularly known as BIG 4 firms are not operating at Indian soil by their own name. They are engaged in surrogate practice by their own ways and means. In India, the top affiliated firms decline their affiliation with international firms but the international surveys of accounting networks across world, India stood 7th among the world network. After Satyam , ICAI forced to take up the issue and it has done its duty with the diplomatic language of yes or no. An aggressive council member from SIRC forced council to release the report at public domain. The Said report titled as REPORT ON OPERATION OF MULTINATIONAL NETWRORK ACCOUNTING FIRMS IN INDIA. The report carries observations, summarization of responses from MNAF, findings and recommendations. Many points were observed and placed before the council. Some of the alarming points were:a. As per agreement members firms (Not necessarily Indian firms) are required to refer the work among themselves and referral fee of specified percent was payable /receivable.b. Firms found using brand names and logos.c. Their emails carried the name of international brands duly mentioned on their parsonal cards thus establishing their affiliation with international audit firms.d. Many firms were found making payments to international firms at specified percent.e. One firm used "Associated Firm throughout the world".f. Remittances were also received from non members and they haven't disclosed the purpose.g. Firms were registered with similar / identical namesNO ACTION AGAINST MULTI-NATIONAL ACCOUNTING FIRMSICAI missed an golden opportunity to throw them out after the Satyam episode. The reasons were quite unclear. The first part was submitted to the government was nothing but a story written and directed by ICAI bosses. The second part was prepared, but torch holders of ICAI changed. They deliberated on the second part of the report and declare it as non understandable. A task force was made to go through the report and without any strong recommendation; the same was submitted to Government.The Institute of Chartered Accountants of India should take strongly act against the going on malpractices by the Big 4 firms. The disciplinary actions should initiate sou moto through the Disciplinary Directorate against their surrogate practice. A legal injunction shall be obtained from the higher courts for their malfunctioning.Also neglected is the lack of action against MAFs knowing that they are operating illegally in India and harming the CA profession in India. The government of India is very keen to see that Indian services are exported as per WTO, GATS and similar arrangements. However, given that the vice president in office himself represents MAF, office bearers do not take action against the wrong doings of the MAFs. This is, in spite of the fact that at regulatory level also, various matters have been viewed seriously and strictures have been passed. 20% of the nomination on the committees of ICAI comprises representatives of the MAFs like Big 4s. The undue importance to MAFs has increased to such extent that the IFRS Foundation is organizing programmes with KPMG in India instead of with ICAI. The saffron party has recently appointed one among Big 4 to audit their expenditure and to present before election commission. The present coal allocation was again and again consulted with the Big 4. So where are any obstacles in their growth in India.MISSION OF A CA PROFESSIONAL FIRMIt is a bare truth that chartered Accountant profession needs progressive dimension of running a successful Audit firm. Another truth is that in today's national & global area, A Chartered Accountant prepared himself to do more and to make new. It is time that every chartered Accountant with the vision & desire to create new avenues must also be able to successfully administer his or her practice. Here vision is not a luxury, but a necessity otherwise there shall be confusion & disharmony.Unfortunately, in the last 10/15 years, the regulator has given a way and developed a meaningless four-layer model of professional practice.1. LAYER- FIRST - Big 4 firms with international affiliations.2. LAYER- SECOND - Big firms at National Level3. LAYER –THIRD - Midsized Local /Regional Firms4. LAYER –FOURTH - Small Local Firms
3. That culture of joint auditors or associate auditors be replaced with the ongoing defective pattern of appointment and allotment of audits for solely looking towards the partner.
4. Finally, The professional regulatory body should regulate a national framework of assurance of same playing field to all and to work on to destroy the illegal operations of layer First Big 4 firms .THE SOCIETY OF LAW FIRMS HAULED BIG 4 FIRMS RECENTLYThe reality is that Big 4 are huge international audit organizations, the largest accounting firms in the world and some of the most influential professional people on earth. They work through an intricate network of high level contacts and special relationships. Their influence is pervasive touching, cash & every certificate entity. They are into everything! These firms are unique as they provide highly customized & highly personalized services involving the skills of individuals.Auditing remains the foundation of the Big 4 practice. It is the center of the action the land of big bucks. They called their higher fees, draw their greatest par and gain entry into the hearts and minds of corporate executives, political leaders and bureaucrats, big lead Auditing is their private presence the one lust & lucrative business market that they alone control. Big business needs big audits and the Big 4 are gigantic. Together they employ thousands of members of the institute. Now it's a commercialization of CA practice at global lines.The society of Indian Law firms has filed a complaint with the Bar Council of India claiming that the Big 4 CA firms are carrying on unauthorized practice of Law contravening section 29 of the advocates Acts which provides that only Indian Citizens who are enrolled with the State bar Council can practice in law. Lay people can act against them, but the real regulator has never discussed on any of the issues related to these CA firms. What a big surprise? What a great blunder? In India we are lucky as we have the second largest body of chartered accountants in the whole world with 230000 members. Why such strong forces need the name and protection of international brand?Thanks & Regards,CA AMRESH VASHISHT, FCA, LLB, DISA (ICAI)Member,ICAI- Regional Research Committee 2013-14
Member,ICAI- Committee For DIRECT TAXES 2011-121 1 5, Chappel Street, Meerut Cantt, UP, INDIA.Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2.
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Posted by: Dipak Shah <djshah1944@yahoo.com>
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