The Institute of Chartered Accountants of India Established by an Act of Indian Parliament The Chartered Accountants Act, 1949

Our Mission The Indian Accountancy Profession will be the Valued Trustee of World Class Financial competencies, Good Governance and Competitiveness

Profile of ICAI Was set up in 1949 under the Chartered Accountants Act, 1949 even before adoption of Constitution of India in 1950 Since then Profession has grown leaps and bounds in terms of Membership and Student base

Profession in India 160K Members spread throughout the country and in different parts of the world 160K Members spread throughout the country and in different parts of the world Sizeable studentship base Sizeable studentship base Increase in percentage of members joining industry Increase in percentage of members joining industry Chartered Accountants are rendering services in every walk of economic life - Politics, Judiciary, Government, Agriculture, Corporate, NGOs Chartered Accountants are rendering services in every walk of economic life - Politics, Judiciary, Government, Agriculture, Corporate, NGOs Profession is dominated by small firms Profession is dominated by small firms Increasing trends towards consolidation Increasing trends towards consolidation Government of India looks at ICAI as Partner in Nation Building Government of India looks at ICAI as Partner in Nation Building Technical Standards based on International Standards Technical Standards based on International Standards Focus on Capacity Building in the emerging context Focus on Capacity Building in the emerging context

ICAI Profile ParticularsNo. ORGANIZATIONAL Regional Offices Regional Offices5 Branches126 Chapters Abroad 22 SPECIAL PURPOSE OUTFITS CPE Study Circle 134 CPE Chapters 46 Reference Libraries 28 Accredited Institutions 273 MEMBERSHIP (000) 167 % in Practice 52% STUDENTS (000) 726

Role of ICAI To regulate the profession of Accountancy To regulate the profession of Accountancy Education & Examination of Chartered Accountancy Education & Examination of Chartered Accountancy Exercise Disciplinary Jurisdiction Exercise Disciplinary Jurisdiction Input on Policy matters to Government Input on Policy matters to Government Ensuring Standards of performance of Members Ensuring Standards of performance of Members Formulation of Accounting Standards Formulation of Accounting Standards Prescription of Engagement and Quality Control Standards Prescription of Engagement and Quality Control Standards Laying down Ethical Standards Laying down Ethical Standards Continuing Professional Education Continuing Professional Education Financial Report Review Financial Report Review Monitoring Quality through Peer Review Monitoring Quality through Peer Review Conducting Post Qualification Courses Conducting Post Qualification Courses

ICAI Network Decentralized Offices Bahrain Abu Dhabi Botswana Indonesia Doha Jeddah Dubai Kuwait Port Moresby (Papua New Guinea) London RiyadhMelbourne Saudi Arabia (Eastern province) Muscat SingaporeNairobi (Kenya) SydneyNew York TorontoNigeria ZambiaRas-al-Khaimah

The Central Council Consisting of 40 Members Consisting of 40 Members 32 Elected Members 32 Elected Members 8 Nominated by Central Government 8 Nominated by Central Government Term: Three years Term: Three years Headed by President Headed by President Elected by the Council for one year term Elected by the Council for one year term Empowered to frame Regulations under the Act and to constitute necessary standing and non-standing Committees Empowered to frame Regulations under the Act and to constitute necessary standing and non-standing Committees

Standing Committees Executive Committee Finance Committee Examination Committee Disciplinary Committee (Section 21D)

Key Non-Standing Committees Ethical Standards Board Accounting Standards Board Auditing & Assurance Standards Board Committee on Banking, Insurance & Pension Committee on Accounting Standards for Local Bodies Expert Advisory Committee Research Committee Board of Studies Corporate Laws & Corporate Governance Committee Committee on Information Technology Committee on Information Technology Editorial Board Committee on Economic and Commercial Laws & WTO

Key Non-Standing Committees Board of Discipline (Sec.21 A) Peer Review Board Financial Reporting Review Board Committee for Members in Industry Internal Audit Standards Board ICAI-ICWAI- ICSI Committee Committee on Public Finance & Government Accounting Committee for Capacity Building of CA Firms & SMP Committee Vision & Perspective Planning Committee Audit Committee Committee on International Taxation Comm. On Fin. Markets & Investors Protection

Key Non-Standing Committees Disciplinary Committee (Sec.21B) The Institute is responsive to the emerging challenges and constitutes new committees for effectively meeting these challenges Research Unit: ICAI-Accounting Research Foundation Direct Taxes Committee Indirect taxes Committee Professional Development Committee Continuing Professional Education Committee International Affairs Committee

Organization Structure

Institute Functions Professional Development Advisory Regulatory

ICAI – A Key National Body Offers inputs to Comptroller & Auditor General of India Comptroller & Auditor General of India Ministry of Corporate Affairs, Govt. of India Ministry of Corporate Affairs, Govt. of India Reserve Bank of India Reserve Bank of India Securities and Exchange Board of India Securities and Exchange Board of India Central Board of Direct Taxes Central Board of Direct Taxes Insurance Regulatory and Development Authority Insurance Regulatory and Development Authority Departments of Central and State Governments Departments of Central and State Governments Departments of Public Enterprises Departments of Public Enterprises

Important Initiative Undertaken to Align with Changing Economic Order Convergence with International Standards of Accounting and Auditing Convergence with International Standards of Accounting and Auditing Review and Revision of Education and training curriculum Review and Revision of Education and training curriculum Launch of Post Qualification Courses Capacity building of firms Launch of Post Qualification Courses Capacity building of firms Mandatory CPE Requirement Mandatory CPE Requirement Peer Review Mechanism Peer Review Mechanism Financial Report Review Financial Report Review Brand building – Nationally and Internationally Brand building – Nationally and Internationally Focused approach on issues relating to Corp. Governance. Focused approach on issues relating to Corp. Governance. Facilitating changes in regulatory frames. Facilitating changes in regulatory frames. Vigorous pursuance of Mutual Recognition Agreements. Vigorous pursuance of Mutual Recognition Agreements. Arrangement with Universities for graduation qualification to CA students Arrangement with Universities for graduation qualification to CA students Facilitating accounting reforms in various areas Facilitating accounting reforms in various areas

Examples of Involvement of ICAI in National Organizations Drafting of Income Tax Laws Drafting of Income Tax Laws Drafting of Competition Law Drafting of Competition Law Drafting of Company Law Drafting of Company Law Capital Market – Development and Regulation Capital Market – Development and Regulation Corporate Governance Corporate Governance Accounting & Utilization of Governmental resources Accounting & Utilization of Governmental resources WTO & GATS WTO & GATS Import – Export Policy Import – Export Policy Commercial and Economic Legislations Commercial and Economic Legislations Non Banking Financial Companies Non Banking Financial Companies

Education and Training Distant Mode of Education Distant Mode of Education Education Through Accredited Institutions and Branches Education Through Accredited Institutions and Branches Meets the requirements of international educational pronouncements of IFAC Meets the requirements of international educational pronouncements of IFAC Comprehensive theoretical and practical curriculum Comprehensive theoretical and practical curriculum Continuous review of the curriculum Continuous review of the curriculum

Highlight of the New Scheme of Education & Training I Common Proficiency Test Compulsory Compulsory II 3½ years of Practical Training concurrent with components of Professional Competence Examination (PCE) and Final Complete 100 hours of Compulsory Computer Training before appearing for PCE. Complete 100 hours of Compulsory Computer Training before appearing for PCE. Undergo General Management & Communication Skills (GMCS) after 18 months of practical training and completion of PCE Undergo General Management & Communication Skills (GMCS) after 18 months of practical training and completion of PCE Eligible to appear for Final Examination on completion of 3 ½ years and passing of PCE Eligible to appear for Final Examination on completion of 3 ½ years and passing of PCE

Highlights of the New Syllabus Financial Reporting Corporate Financial Reporting Corporate Financial Reporting IFRS based Financial Reporting IFRS based Financial Reporting US GAAP based Financial Reporting US GAAP based Financial Reporting Strategic Management Study of Business Environment Study of Business Environment Understanding Strategic Planning and Analysis Understanding Strategic Planning and Analysis Ability to understand and formulate Functional Strategies Ability to understand and formulate Functional Strategies Financial Management Advanced Management Accounting Information Technology and Systems Control Business Ethics

Examination One of the largest Accounting examination networks One of the largest Accounting examination networks Administrative conduct of examination and exam related process largely computerized Administrative conduct of examination and exam related process largely computerized Exams are held twice a year Exams are held twice a year Examination system considered to be of high standard & integrity worldwide Examination system considered to be of high standard & integrity worldwide Has been lending expertise to accounting bodies in other countries Has been lending expertise to accounting bodies in other countries

Accounting Standards Convergence with IFRSs ICAI has decided to converge with IFRSs from accounting periods commencing on or after 1st Aril 2011 for listed entities and other public interests entities such as banks, insurance companies and large-sized entities ICAI has decided to converge with IFRSs from accounting periods commencing on or after 1st Aril 2011 for listed entities and other public interests entities such as banks, insurance companies and large-sized entities For smooth transition to the IFRSs, ICAI will take up the matter of Convergence with NACAS, and various regulators such as the RBI, SEBI and IRDA. For smooth transition to the IFRSs, ICAI will take up the matter of Convergence with NACAS, and various regulators such as the RBI, SEBI and IRDA. ICAI would also formulate its work-plan to ensure that IFRSs are effectively adopted from 1st April ICAI would also formulate its work-plan to ensure that IFRSs are effectively adopted from 1st April IFRSs-specific training programs will be organized for its members and others concerned to prepare them to implement IFRSs. IFRSs-specific training programs will be organized for its members and others concerned to prepare them to implement IFRSs. IASB has also offered to help the ICAI in its endeavors towards Convergence with IFRSs in India IASB has also offered to help the ICAI in its endeavors towards Convergence with IFRSs in India

Research and CPE Commitment to advancement of knowledge in accountancy, auditing, taxation and allied areas Commitment to advancement of knowledge in accountancy, auditing, taxation and allied areas Published about 150 Publications Published about 150 Publications Expert Opinions on Applicability of Standards Expert Opinions on Applicability of Standards 20 Compendiums over 1000 opinions 20 Compendiums over 1000 opinions More than 50 CPE materials published More than 50 CPE materials published 3000 CPE programs held annually 3000 CPE programs held annually ICAI-ARF to promote research on contemporary issues ICAI-ARF to promote research on contemporary issues Publishes a monthly journal with more than 175,000 circulation Publishes a monthly journal with more than 175,000 circulation

Professional Ethics Cardinal Principles Cardinal Principles Service before self Service before self Extends beyond the legal requirements Extends beyond the legal requirements Some major highlights Some major highlights Prohibition on other occupationsProhibition on other occupations Prohibition on solicitationProhibition on solicitation Prohibition on advertisement and CanvassingProhibition on advertisement and Canvassing Prohibition on financial interest in auditee companyProhibition on financial interest in auditee company Restriction on number of auditsRestriction on number of audits Limit on fees for non-audit assignmentsLimit on fees for non-audit assignments Prohibition on writing Books of Accounts of Auditee companyProhibition on writing Books of Accounts of Auditee company Demarcation between External and Internal AuditorsDemarcation between External and Internal Auditors Professional fees for audit and other services received by a firm not to exceed 40% of the gross annual fees of the firmProfessional fees for audit and other services received by a firm not to exceed 40% of the gross annual fees of the firm

Professional Development Identifying Role of Profession in emerging areas Identifying Role of Profession in emerging areas Developing Practice Areas Developing Practice Areas Upgrading and updating the knowledge and skill sets Upgrading and updating the knowledge and skill sets Developing technical material to facilitate practice in new areas Developing technical material to facilitate practice in new areas Considered as critical in the changed Scenario Considered as critical in the changed Scenario

Quality Control Initiative – Peer Review Peer Review Board of established in March 2002 Peer Review Board of established in March 2002 Focus on: Focus on: Technical Standards compliance Technical Standards compliance Quality of Reporting Quality of Reporting Office Systems and Procedures (attestation services only) Office Systems and Procedures (attestation services only) Staff training Programmes (attestation services only) Staff training Programmes (attestation services only) 5567 Strong panel of Reviewers maintained 5567 Strong panel of Reviewers maintained 4234 Reviewers have undergone training 4234 Reviewers have undergone training 4020 Practice units have been issued Peer Review Certificates Practice units have been issued Peer Review Certificates. The Council of the Institute accepted the request of SEBI that audit of listed companies shall be carried out by the auditors who have undergone Peer Review Process The Council of the Institute accepted the request of SEBI that audit of listed companies shall be carried out by the auditors who have undergone Peer Review Process

Quality Review Board Central Government has constituted Quality Review Board consisting of 11 persons. Central Government has constituted Quality Review Board consisting of 11 persons. Council of ICAI has nominated 5 members on QRB Council of ICAI has nominated 5 members on QRB Chairman and other 5 members have been appointed by Central Government Chairman and other 5 members have been appointed by Central Government All services provided by members (Both attestation and non attestation will be subject to Quality Review) All services provided by members (Both attestation and non attestation will be subject to Quality Review) Disciplinary action if there is a deficiency in service Disciplinary action if there is a deficiency in service

Peer Review Peer Review Board established in March 2002 Peer Review Board established in March 2002 Reviews by Board to ensure Reviews by Board to ensure compliance with technical standards; and compliance with technical standards; and existence, compliance and adherence to quality control existence, compliance and adherence to quality control policies and procedures policies and procedures Findings would not have any relationship with the disciplinary proceedings Findings would not have any relationship with the disciplinary proceedings

Financial Reporting Review Financial Reporting Review Board constituted in 2002 to review general purpose financial statements of certain enterprises Financial Reporting Review Board constituted in 2002 to review general purpose financial statements of certain enterprises Boards findings would form basis for : Boards findings would form basis for : initiating action against auditor concerned; and initiating action against auditor concerned; and informing irregularity to relevant regulatory authority informing irregularity to relevant regulatory authority Board seeks general purpose financial statements of top 500 companies in India on yearly basis Board seeks general purpose financial statements of top 500 companies in India on yearly basis

New Initiatives- Education & Training Launch of new course for Accounting Technicians & IPCC Launch of new course for Accounting Technicians & IPCC Introduction of concept E-Learning Introduction of concept E-Learning Launch of Virtual Institute Project providing e-services to members and students Launch of Virtual Institute Project providing e-services to members and students Recast of professional curriculum Recast of professional curriculum Lectures through Gyan Darshan Channel for CPT & PCC Students Lectures through Gyan Darshan Channel for CPT & PCC Students Three Months Residential Course for improving General Management & Communication Skills Three Months Residential Course for improving General Management & Communication Skills

New Initiatives- Education & Training Establishment of more than 100 computer labs to impart ITT Training all over India Establishment of more than 100 computer labs to impart ITT Training all over India Grant of status of approved research supervisors by the Guru Govind Singh Indraprastha University Grant of status of approved research supervisors by the Guru Govind Singh Indraprastha University Establishment of CA Student Benevolent Fund Establishment of CA Student Benevolent Fund Setting of Centre of Excellence for CA Students Setting of Centre of Excellence for CA Students MOU with Bharathiar University & Guru Jambheshwar University Of Science And Technology (GJUS&T) MOU with Bharathiar University & Guru Jambheshwar University Of Science And Technology (GJUS&T)

New Initiatives- Profession and Standards Convergence to IFRS- By April 2011 Convergence to IFRS- By April 2011 Convergence to Clarity Project Convergence to Clarity Project Cap on fee for rendering services other than audit Cap on fee for rendering services other than audit Disciplinary mechanism framework Disciplinary mechanism framework Focus on bridging the expectation gap Focus on bridging the expectation gap

International Presence ICAI is founder member of IFAC, CAPA, SAFA and IIN ICAI is founder member of IFAC, CAPA, SAFA and IIN ICAI represented in : ICAI represented in : IFAC - Board, SMP Committee, Developing Nations Committee, International Public Sector Accounting Standards Board. IFAC - Board, SMP Committee, Developing Nations Committee, International Public Sector Accounting Standards Board. CAPA – Board member CAPA – Board member ICAI holds Permanent Secretariat, SAFA ICAI holds Permanent Secretariat, SAFA SAFA - Chairmen and member of various Committees and Working Groups SAFA - Chairmen and member of various Committees and Working Groups

Opened New Chapters abroad- Singapore. Opened New Chapters abroad- Singapore. MoU with University of Djibouti and ICA Australia MoU with University of Djibouti and ICA Australia Joint Declaration with The Bahrain Institute of Banking and Finance and The Certified General Accountants Association of Canada Joint Declaration with The Bahrain Institute of Banking and Finance and The Certified General Accountants Association of Canada MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia. MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia. International Initiatives

MOU with College of Banking and Financial Studies, Oman – For institutionalization of accounting profession in Oman. MOU with College of Banking and Financial Studies, Oman – For institutionalization of accounting profession in Oman. MOU with Center of Excellence for Applied Research and Training (CERT), Dubai- To conceptualize and devise an international curriculum in accountancy integrating local needs keeping in mind various requirements of different levels of accountancy and audit professionals. MOU with Center of Excellence for Applied Research and Training (CERT), Dubai- To conceptualize and devise an international curriculum in accountancy integrating local needs keeping in mind various requirements of different levels of accountancy and audit professionals. Technical assistance programme to CPA Mongolia and University of Djibouti ongoing. Technical assistance programme to CPA Mongolia and University of Djibouti ongoing. Implementation of Guidelines for Article Training Abroad. Implementation of Guidelines for Article Training Abroad.

International Initiatives Contd. ICAI being consulted by IAASB in Audit Standards Setting and by IASB in IFRS setting ICAI being consulted by IAASB in Audit Standards Setting and by IASB in IFRS setting Playing a lead role in the area of Developing Nations, SMPs and SMEs, International Public Sector Accounting Standards, International Education Standards Playing a lead role in the area of Developing Nations, SMPs and SMEs, International Public Sector Accounting Standards, International Education Standards SAFA adopted ICAI curriculum as model SAFA adopted ICAI curriculum as model Student exchange programs held with ICAB, ICAP, ICAN and ICASL Student exchange programs held with ICAB, ICAP, ICAN and ICASL Opened an Office in Dubai Opened an Office in Dubai Initiatives for recognition of ICAI qualification by accounting bodies in other countries Initiatives for recognition of ICAI qualification by accounting bodies in other countries

Virtual Institute integrates all the regions and offices to present a unified view of the operations of the entire Institute through a single integrated enterprise system Virtual Institute integrates all the regions and offices to present a unified view of the operations of the entire Institute through a single integrated enterprise system It FULFILLS the members and students right to convenience, comfort and make the benefits of Information Technology (IT) available to the members and students for rendering the Institute services online anywhere-anytime It FULFILLS the members and students right to convenience, comfort and make the benefits of Information Technology (IT) available to the members and students for rendering the Institute services online anywhere-anytime With this all operational functions of the institute have been brought onto a common intranet with seamless flow and availability of information With this all operational functions of the institute have been brought onto a common intranet with seamless flow and availability of information ICAI - Virtual Institute

Towards Tomorrow Today Towards Tomorrow Today ICAI started IT initiative towards a bright future and is in it today ICAI started IT initiative towards a bright future and is in it today ICAI Portal is effectively used to make a repository of information and knowledge accessible to the members, students and employees at the click of a button. ICAI Portal is effectively used to make a repository of information and knowledge accessible to the members, students and employees at the click of a button. The portal brings dynamic features to the content. It functions as a Global Gateway to ICAI. The portal provides a single interface to users for accessing Institutes services taking into consideration security requirements. The portal brings dynamic features to the content. It functions as a Global Gateway to ICAI. The portal provides a single interface to users for accessing Institutes services taking into consideration security requirements.

The Institute of Chartered Accountants of India [Set up by an Act of Parliament] ICAI Bhawan, Indraprastha Marg, New Delhi – Phone: , Website: