Companies Act 2013. Opportunities for Professionals CA. S. Santhanakrishnan, Chairman, Corporate Laws & Corporate Governance Committee, ICAI. “Some changes look negative on the surface but you will soon realize that space is being created in your life for something new to emerge.”
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Opportunities for Professionals
CA. S. Santhanakrishnan, Chairman, Corporate Laws & Corporate Governance Committee, ICAI
“Some changes look negative on the surface but you will soon realize that space is being created in your life for something new to emerge.”
With lot of restrictions on the Statutory Auditors, the Companies Act 2013 prescription for the profession is akin to the directive in the story of Asuras and Devas
They were told, that they can eat amrut, but, without folding their elbow joints…
Asuras were only trying..
Devas feed each other in a circle!!!Story of asuras and devas
The message is –
co-operate, collaborate and celebrate!
On the whole, this Act has opened up more opportunities for professionals, though Statutory Auditors have been brought under a lot of restrictions!!
All companies which have subsidiaries, associates and JVs will need to prepare consolidated financial statements
Many small and mid sized groups will not have internal capabilities to compile CFS
This opens up opportunities for practicing CAs to undertake consolidation servicesConsolidated Financial Statements
Reopening/recasting of accounts –Court/Tribunal order (130)/ Voluntary (131):
*Sections yet to be notifiedRevision of Accounts
Significantly widened scope of RPTs
Audit Committees and Boards are also going to seek out professional expertise and independent opinions on determination of arm’s length basis of transactions
CAs – especially other than the statutory auditors can look for opportunities unfolding in this regardRelated Party Transactions - 3
The Act mandates valuation services to be rendered by registered valuers…
Members getting registered as valuers once the process for the same is effective could throw open opportunities…Valuation Services
Opportunities to work as provisional liquidator or the Company Liquidator (sec 275)
Chartered accountants, advocates, company secretaries, cost accountants or firms or bodies corporate having such chartered accountants, advocates, company secretaries, cost accountants and other professionals may be appointed and having at least ten years’ experience in company matters.
*Section yet to be notifiedOfficial Liquidator
Representation before NCLT is also another area of opportunity which is now being opened up for the members
This is also an opportunity for members to work on higher value professional services, as it arises in this areaNCLT