There is no shortcut to success. And there is no substitute to hard work. But hard work must be in the right direction in order to yield the fruits of success. If you are prepared to invest your time in activities that generate results from the most potent section of your client base, then the results you will generate will not be marginal but dramatic.
Professional Opportunities For Chartered Accountants
The secret lies in the Pareto principle
Pareto principle stipulates that 80% of results are achieved from only 20% of the effort expended. Typically, this principle holds true for a chartered accountant’s practice, where the majority of time is taken up satisfying the needs of clients who represent an insignificant portion of total of business. To counter this situation, the chartered accountant may want to separate clients into three lists: the ‘A’ list of the upper 20% of clients, and the ‘B’ and ‘C’ lists made up of the remaining 80% of clients. The latter two lists should differentiate between clients that have or do not have the potential to become major clients. Accountants should then maintain ‘A’ list clients, cultivate ‘B’ list clients, and disregard ‘C’ list clients. The following inspiring lines of a poem are relevant Your reach must always exceed your grasp. That is heaven on earth. Ultimately, your only competition is yourself. Those who win are those who believe they can.
Opportunities For Chartered Accountants
The listing below is an indication of the opportunities prevalent in various areas
- Accounting
Under IFRSEnvironmental AccountingHuman resource accountingFraud and Forensic accountingGovernment AccountingManagement Accounting
- Auditing
Statutory AuditInternal AuditConcurrent AuditStock AuditRevenue AuditInformation Systems AuditTax AuditQuality AuditPropriety AuditLegal Compliances AuditEnergy auditAssurance on Sustainability reporting
3. Corporate Governance 4. Economic and Commercial laws
Competition Act 2002Arbitration and Conciliation Act,1996Prevention of Money Laundering Act 2002Micro Small and Medium Enterprises Development Act 2006Laws relating to Intellectual Property RightsRegulations applicable to NBFCsForeign Exchange Management Act,1999Foreign Contribution (Regulation) Act, 1976Labour LawsRight to Information Act,2005Consumer Protection Act, 1986Special Economic Zones Act,2005Chapter VI of Foreign Trade Policy- 2004-09- 100 % Export Oriented Units (EOU) / Software Technology Parks( STP) / Electronic Hardware Technology Parks(EHTP) and Bio- technology parks[BTP]Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (SARFAESI)Recovery of Debts due to Banks and Financial Institutions Act, 1993Drafting and conveyanceCarriage laws
- Carbon Credit
- Corporate Laws
Members of Judicial bodiesLimited Liability PartnershipLegal support and advisory services
- Taxation
Direct TaxesIndirect TaxesInternational Taxation
- Management Services
Strategic ManagementChange ManagementQuality ManagementDisaster ManagementKnowledge ManagementDirectorship
- Consultancy To elaborate on some of the above,
A) Drafting, Conveyance, Stamping & Registration
Drafting Drafting may be defined as the synthesis of law and fact in a language form. Perfection cannot be achieved in drafting unless the nexus between law, facts and language is fully understood. The old style of drafting of documents of the Eighteenth Century has given way for comprehensiveness, exactitude and clarity of expressions. “ The particular qualities that distinguish the modern style of drafting – the use of definitions, division into numbered paragraphs and sub-paragraphs with marginal notes, the growing disuse of the form ‘shall’ in stating circumstances and conditions, the use of one word (as ‘convey’ or ‘assign’) for the jumble (grant, bargain, sell, alienate, release, confirm and enforce or bargain, sell, assign, transfer, set-off and confirm) that had often previously been necessary or thought to be so are to be found in any current set of precedents.”- E.L Piesse & Gilchrist Smith: The Elements of Drafting. Conveyance The term Conveyance in its ordinary legal parlance means the act of conveying or transferring from one person to another or transfer inter vivos. The Latin term Inter vivos is a legal term referring to a transfer made during one’s lifetime, as opposed to a testamentary transfer i.e a transfer that takes effect on death. Conveyancing depends to a large extent on practice, customs and usage, prudence and precedents. The most common type of documents that illustrate conveyance are a deed of sale, mortgage, lease etc. However, ‘Conveyancing’, used in relation to drafting deeds, is paradoxical as the term‘conveyancing’ has wider use when its referred in relation to drafting of various other documents like a marriage contract, a will, etc. in which no transfer may be involved. Registration Registration refers to the recording of the contents of a document with a Registering Officer appointed by the State Government. The State Government may exclude any district or tracts of country from its operation. The Registering Officer performs the important function of preservation of copies of the original document. The Registration of documents is made under the provisions of the Registration Act, 1908. The Registration Act 1908 is used for proper recording and registration of documents / instruments, which give them more authenticity Stamping Stamp duty is a form of tax that is levied on documents. Historically, a physical stamp (a tax stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document became legally effective The following categories of Documents generally require drafting: I Documents for Formation of an Entity
Partnership DeedMOA/ AOACharitable Trust DeedCooperative Societies (Rules & Regs)MOA/ AOA of Societies u/ Societies Registration Act,1860LLP Agreement and Incorporation DocumentTrust Deed / Private Family Trust Deed (Indian Trust Act 1882)
II Wills III Business Agreements
Arbitration AgreementJoint Venture AgreementForeign Collaboration AgreementShareholders AgreementStock Holders AgreementsStock Purchase AgreementsAcquisition AgreementsFranchisee AgreementsResearch & Development AgreementsTechnology Sharing AgreementsAdvertising AgreementsAgency AgreementsService AgreementsConsultancy AgreementsHire Purchase AgreementsCredit and Conditional Sale AgreementsAgreements for Sale, Mortgage, and loanAgreement relating to deposit of title DeedsTenancy AgreementsFranchising Agreements
IV Property Agreements
Purchase of a FlatPurchase of an Apartment in a Building (Commercial / Residential)Purchase of a Plot of LandPurchase License of Land /Apartment (Lease / Freehold)Development AgreementWill / Bequest DeedTransfer DeedPower of AttorneyLease AgreementGift Deed of PropertyConstruction AgreementRent AgreementSale/ Purchase AgreementAgreement to SellDeed of Mortgage of PropertyRelinquishment DeedSurrender Deed in Cooperative Housing SocietyMortgage Deed
V Documents Relating to Intellectual Property
Patent and High Technology AgreementsLicensing and FranchiseConsulting and Know-How AgreementsJoint Development AgreementsMass Market Licences like Shrink Wrap and use based licencesLicensing of Software and Source Code Escrow Agreements, Motion Pictures for multimedia use, photographs etc.Software Development AgreementsAgreement for Sale of Technical Know-Howlicense of use of copy rightAgreements relating to protection of designs/ trademarks/ patents/ and know how
VI Banking Documents
Bank GuaranteeLoan agreements / lease deedsOverdraft agreements
VII Documents for Export / Import
Letter of CreditDocuments for obtaining EXIM FinanceAgency Agreement
VIII Documents relating to Labour Laws and Service Laws IX Documents relating to Insurance X Documents relating to Public Interest Litigation, Environmental Issues etc. XI Documents Relating to Private Equity Form of Funding
Business PlanTerm SheetWarranties and IndemnitiesDisclosure LetterShareholders’ / Investors’ Rights/ Subscription Agreement
XII Documents relating to cyber law
Internet agreementsSoftware agreements
B) MSME Chartered Accountants can explore opportunities in this area including formation, Registration, taxation and foreign direct investment. They can help large scale enterprises form systems to ensure that they comply with the deadlines for payment of any goods or services supplied by MSMEs. Also there are opportunities in counseling of MSMEs for the rights and benefits available to them. C) Corporate Governance
Designing Code of Corporate GovernanceDesigning Risk Management FrameworkDesigning Internal control frameworkDesigning Whistle blower policyInternal Audit of Code of Corporate Governance, Risk Management Framework, Internal control framework, Whistle blower policyCompliance of Internal Audit of clause 49Statutory auditor’s Certificate regarding compliance of conditions of corporate governance as stipulated in sub-clause VII(1) of clause 49Management Audit pertaining to various regulatory, statutory or listing requirements (Item 15 of Annex. 1A of clause 49)chairman of audit committeeIndependent director [clause 49 I(A)(iii) meeting a-f criteria]Assessment of internal control function under clause 49 V -CEO/CFO Certification
D) Carbon Credit
Conceptualizing the projectDrafting Project Concept NoteQuantification of GHG Carbon FootprintSelection of Cleaner technologies for New projectsProject risk analysisMaking Project/ Project Design DocumentLegal and regulatory advice during negotiations with host country Designated NationalAuthority (DNA)Advice on the appointment of independent validatorsAssistance to achieve registration of the project by the CDM Executive BoardEnsure CompliancesTax structuring and optimizationAssisting planning commission in their studyCarbon FinanceAdvise to Govt- Central and state National Action Plan implementationEnergy AuditAdvise to investors about investment in carbon creditAccounting advisory servicesTaxation advisory servicesDrafting of Emission Rights Purchase Agreements ERPA
E) Corporate Insolvency and Restructuring There are a broad range of opportunities that arise from corporate insolvency and financial restructurings.
Spotting and evaluating distressed companies for restructuring and rescue planning.Reviewing the various risks involved in restructuring.Developing risk mitigation strategies.Working out a detailed bankable financial structure of the business.Working out a detailed plan for restructuring the business from all angles.Assessment of distressed assets, cash position, due diligence and turnaround feasibility.Advice on optimum utilization of resources.Drafting insolvency petitions.Representation and registration of sick companies with BIFR.Representation before the Debt Recovery Tribunals.Negotiating settlements.Identifying Areas Of Opportunity for the company.Advisory in relation to a merger or acquisition or takeover.Advisory services to management on an ongoing basis.
F) Competition Act, 2002 The Ministry of Corporate Affairs, Government of India has issued a Notification dated 28th August 2009, whereby the most controversial the Monopolies and Restrictive Trade Practices Act, 1969 (“the MRTP Act”) stands repealed and is replaced by the Competition Act, 2002, with effect from September 1, 2009. The MRTP Commission will continue to handle all the old cases filed prior to September 1, 2009 for a period of 2 years. It will, however, not entertain any new cases from now onwards. G) Competition Act, 2002 Certification under ESIC in Maharashtra if number of employees are more than 40. H) Central Excise Act Audit under Central Excise act is now allowed to be carried out by CAs. Remember: If opportunity doesn’t knock, build a door. Opportunities are never lost; someone will take the one you miss. Thank You!!! CA.ABHISHEK AGGARWAL, M.Com., ACA. Email:- caabhishekaggarwal1@gmail.com
