My Group Report has suggested open empanelment process in all such cases. That has also been accepted by the Council. Regards, tarun Jamnadas Ghia
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Sent from my iPad
Dear SirThanks for your informative message.However I have some remarks on it;1. Tendering is the only process where CAs can expect fair deal in absence of Centralised Allocation of Audit Assignments. Otherwise it will be awarded to known CA firms of the appointing authorities. So restricting CAs to apply for tender how it benefit to the community of CAs. Rather than that, reporting mechanism to ICAI should have been made applicable for APPLYING CA Firms. By restricting to apply for tendering, numerous firms shall be deprived of the assignments. ICAI should strictly monitor recommended fees structure for audit assignments.2. In case of Non Audit Assignments where We have to apply along with NON CA Consultants, there is no need of monitoring by ICAI at all as far as the fees quote is concerned. If we quote at the level of fees recommended by ICAI, CA firms will never get any Non Audit Assignments. Like we can not charge Rs. 5000/- per hour for a partner for taking a monitoring assignment of Government of India where they allow Per day average man power cost of Rs. 5000/- only at maximum. By doing this, either lots of manipulation to be done by CA Firms in reporting to ICAI or they will simply escape from applying.Perhaps recommendation have been taken by your committee in reverse manner. Kindly look into it again if possible.Thanks and Regards.CA. ATAL BIHARI BHANJAOn Thursday, 23 July 2015 8:09 AM, "CA Tarun Ghia tarunghiaca@yahoo.co.in [tarunghiadirtaxes]" <tarunghiadirtaxes@yahoogroups.co.in> wrote:
Dear Colleague,I am pleased to inform that the Report of the Group under my convenorship, on the issue of responses to tendering by our members, has been accepted in toto and the Council has taken the decision to deal tough with the responses by our members to tendering :Based on my group report and consequent Çouncil decision, please read following ICAI Announcement which is also placed on ICAI website which in a nutshell means that :I. Response to tendering in the exclusive areas of practice of CAs like Audits and Attest Functions, is now prohibited by the members;II. In other areas, the response by our members is allowed as our members are competing with others. If we prohibit our members, the works will go away from profession, therefore, we have not prohibited. But in these other areas also, now ICAI would monitor the responses.I am sure the effects will start coming soon as logically the tenders in audit and attest areas will fail and therefore will stop as authorities and organisations will take note of ICAI decision. In other areas, our members will properly estimate the quantum of works and skills involved and consequent fees before responding to tenders and will adhere to minimum prescribed fees.With Regards,Tarun Jamnadas GhiaCentral Council Member, ICAI
ANNOUNCEMENT- MECHANISM TO MONITOR TENDERINGWith a view to contain the tendering system for attest functions, the Council at its special (338th) meeting considered the report of the Group constituted under the convenorship of CA. Tarun Jamnadas Ghia, Member, Central Council and decided as under:1. Tendering has been prohibited in the exclusive areas of practice of chartered accountants like audit and attestation services. i.e. those areas where the assignments can be performed only by chartered accountants. In those areas, where alongwith chartered accountants, the other professionals can also apply for the tender, there is no restriction for the chartered accountants to respond to the tenders floated by authorities from time to time.2. Members are advised to adhere to the recommended scale of fees prescribed by ICAI in the context of various professional assignments. To ensure such adherence, a member responding to a tender should be required to furnish to ICAI at the designated e-mail address pdc.tender@icai.in with estimated hours to be devoted by the partner/proprietor, paid CAs, other staff and the fees quoted in the tender. Such details will be furnished by the member within a period of fifteen days of his responding to the tender. If the member is successful in securing the tendered assignment, then the member will also furnish the actual hours devoted by the partner/proprietor, paid CAs and the staff within two months of completion of the assignment.3. Members are required to maintain cost sheet in the given format while submitting any tender/bid. The format of the same can be viewed at <hyperlink Cost Sheet >.4. Members are required to maintain the cost sheet compulsorily and submit a soft copy of the bid submitted by them in response to any tender within 15 days to ICAI. The office can check whether recommended scale of fees has been followed or not in those bids, to ensure adherence to quality standards.
Encl : format of submitting data
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