A strong foundation is important before entering the global competition with the Big Four, according to Charanjot Singh Nanda, president of the Institute of Chartered Accountants of India
During an exclusive interview with NDTV Profit, Nanda said that firms must upscale, majorly the large ones envisioned by the government, projected to have at least 80–90 partners. The first step to achieve this includes identifying and appointing the right partners.
"Having officers in all cities and having such great people and inviting people to join as partners or as employees would entail a lot of financial expenditure," he added.
Nanda highlighted that to effectively serve clients both domestic and internationally, it is vital to build robust technical capabilities which includes providing technical training.
A centralised database or portal should be provided to help connect with potential firms that can be partnered with, Nanda said.
On the recent financial irregularities involving Gensol Engineering Ltd., Byjus and Indusind Bank Ltd., he pointed out that the Financial Reporting Review Board identifies and decides if the cases need a desktop review.
"So, a desktop review for these firms is ongoing and it takes six-seven months to decide if there are any accounting irregularities," Nanda said. More than system failure, Nanda believes that the greed of certain people culminates into doing such frauds.
The ICAI president also mentioned about the ongoing research paper they have been preparing for the Securities and Exchange Board of India. According to him, the paper will focus on how scams can be identified and communicated earlier.
Regarding the overlapping roles of ICAI and National Financial Reporting Authority, Nanda emphasised that both institutions must operate in sync with accordance to their respective mandates. A clear line of distinction should be followed without intermingling with each other and work in consonance with each other, he said.
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