Protect ICAI & abolish National Financial Reporting Authority (NFRA)
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Dear Mr. Piyush Goyal, Honorable Finance Minister,
Being a member of ICAI yourself, you are well aware that our Institute was established as a Statutory Body by an Act of Parliament in 1949 for regulating the profession of Chartered Accountancy in the Country, which means all the Accounting, Reporting and Auditing Standards shall be solely laid down by ICAI only. The Institute has already stepped into its 70th year and we all are celebrating its Platinum Jubilee Year.
You are also well aware that the affairs of the ICAI are being managed by a Council in accordance with the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council constitutes of 40 members of whom 32 are elected by the Chartered Accountants and remaining 8 are nominated by the Central Government generally representing the Comptroller and Auditor General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs, Ministry of Finance and other stakeholders. Therefore, there are already enough checks and balance constituted within the system.
Given the above situation, there was no need for introducing section 132 in the Companies Act, 2013 and undermine the authority of a well-established Institution by introducing NFRA (National Financial Reporting Authority). How can regulatory powers of the Institute be handed-over in the hands of few bureaucrats who may not have anything to do with Accounting, Auditing, Financial Reporting etc.
This is simply not acceptable to majority of members of our profession. What is the sanctity of a Statutory Regulatory Authority which is born out of an Act of Parliament and which can be destroyed by introducing a simple section under another Act.
As a member of our Institute and a person holding key Ministerial Position, I hope you can help in working-out some solution to this issue. ICAI is a great Institution and it needs to be protected and not destroyed. Without its Regulatory Authority, ICAI will become just another University which conducts Exams and distributes degrees and Certificates.
I request your intervention in protecting the independence of ICAI by keeping NFRA at abeyance.
CA Kanta Sharma
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