{"id":3827,"date":"2021-08-27T07:32:27","date_gmt":"2021-08-27T07:32:27","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=3827"},"modified":"2025-10-15T07:52:35","modified_gmt":"2025-10-15T07:52:35","slug":"challenges-faced-by-local-ca-firms-in-india","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/","title":{"rendered":"CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA"},"content":{"rendered":"<p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3828\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India.jpg\" alt=\"Challenges faced by local CA Firms in India\" width=\"1200\" height=\"628\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India.jpg 1200w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India-300x157.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India-1024x536.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India-768x402.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/Challenges-faced-by-local-CA-Firms-in-India-800x419.jpg 800w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d71049b2e10\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d71049b2e10\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#SAFEGUARD_CHALLENGES_FACED_BY_LOCAL_CA_FIRMS_IN_INDIA\" title=\"SAFEGUARD &amp; CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA\">SAFEGUARD &amp; CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#BRIEF_INTRODUCTION\" title=\"BRIEF INTRODUCTION\">BRIEF INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#BASIC_PROBLEM_CHALLENGES_FACED_BY_LOCAL_CA_FIRMS_IN_INDIA\" title=\"BASIC PROBLEM \/ CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA\">BASIC PROBLEM \/ CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#SUGGESTIONS_SAFEGUARD_LOCAL_CA_FIRMS_IN_INDIA\" title=\"SUGGESTIONS &amp; SAFEGUARD\u00a0LOCAL CA FIRMS\u00a0IN INDIA\">SUGGESTIONS &amp; SAFEGUARD\u00a0LOCAL CA FIRMS\u00a0IN INDIA<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#LOW_BIDDING_ON_APPOINTMENT_OF_AUDITORS_OTHER_ASSIGNMENTS\" title=\"LOW BIDDING ON APPOINTMENT OF AUDITORS &amp; OTHER ASSIGNMENTS\">LOW BIDDING ON APPOINTMENT OF AUDITORS &amp; OTHER ASSIGNMENTS<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#SOLUTION\" title=\"SOLUTION\">SOLUTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#PROBLEMS_FACED_IN_TENDER_PROCESS\" title=\"PROBLEMS FACED IN TENDER PROCESS\">PROBLEMS FACED IN TENDER PROCESS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#SUGGESTING_MEASURES\" title=\"SUGGESTING MEASURES\">SUGGESTING MEASURES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/challenges-faced-by-local-ca-firms-in-india\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"SAFEGUARD_CHALLENGES_FACED_BY_LOCAL_CA_FIRMS_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong>SAFEGUARD &amp; CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"BRIEF_INTRODUCTION\"><\/span><span style=\"color: #000080;\">BRIEF INTRODUCTION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Our Govt. believes and at the same time wants that the Global Big-8 firms should be including the 4 Indian Accounting Firms. However,\u00a0this is often\u00a0not going\u00a0to happen until our own Govt. decides to promote local firms and thereby provides some kind of support, and create an environment for\u00a0the same.<\/li>\n<li>It&#8217;s\u00a0alarming that local Service Providers\u00a0don&#8217;t seem to be\u00a0being\u00a0given\u00a0grade\u00a0playing field and not much opportunity is given to expand their infrastructure, invest in R&amp;D and improve\u00a0the standard\u00a0of services as per global standards.<\/li>\n<li>Even\u00a0the government, various regulators, and bankers favor\u00a0some\u00a0Large Multinational Service Providers (MSPs) and have little or no room for local service providers when it\u00a0involves\u00a0deciding the high-ticket assignments.<\/li>\n<li>Several entry barriers\u00a0are\u00a0created\u00a0for small\u00a0and medium service providers\u00a0and that they\u00a0are struggling\u00a0to create\u00a0entry into large Corporate, Govt. organizations, PSUs, Banks and regulators like RBI, SEBI, etc.<\/li>\n<li>It&#8217;s\u00a0a matter of\u00a0proven fact that\u00a0majority of Audits and Consultancy assignments\u00a0of big and enormous\u00a0Corporates and Govt owned entities are undertaken by these MSP\/MAFs, directly or indirectly.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"BASIC_PROBLEM_CHALLENGES_FACED_BY_LOCAL_CA_FIRMS_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong>BASIC PROBLEM \/ <\/strong><strong>CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It has become\u00a0a typical\u00a0practice\u00a0that a lot of\u00a0EOI\/RFPs\u00a0for large\u00a0assignments are designed\/drafted\u00a0in an exceedingly\u00a0manner that favors only Multinational Accounting Firms and\u00a0doesn&#8217;t\u00a0even allow local firms to participate.\u00a0the whole\u00a0tendering\/bidding process has become a mockery of the system and an eye-wash, designed for the sake of formalities. Many large Govt. Institutions, banks and PSUs are following this unethical practice\u00a0to keep\u00a0the local firms\u00a0unfree. Only small and petty assignments are left for local firms,\u00a0for whom\u00a0fee is so competitive that it\u00a0doesn&#8217;t\u00a0even cover\u00a0the price\u00a0of execution in most cases.<\/p>\n<p>In quite a systematic manner, the multinational firms have been constantly snatching the opportunities from the hands of Indian Service Providers. India has become an open ground for these Multinationals who do whatever they\u00a0desire\u00a0by using all means for getting assignments in their favor. Today, even\u00a0Income Tax Dept. is taking Services\u00a0of those\u00a0MAFs. Being an Indian CA,\u00a0I extend my\u00a0concern and worry towards my very own\u00a0fraternity and, therefore,\u00a0will discuss about how the intervention of Multinational Accounting Firms has negatively impacted the small and medium accounting firms in India.<\/p>\n<p>It is painful\u00a0to determine\u00a0that Local Indian CA Firms are struggling at every level and not being provided\u00a0grade\u00a0playing field even by our own Public Sector Banks, Corporates, Regulators, and Govt. owned institutions. Multinational Firms have been constantly invading every sector, charging exorbitantly high fees with very little amount of value addition.\u00a0It&#8217;s\u00a0time Govt. should realize the gravity of\u00a0things\u00a0and think in favor of Indian Service Providers and save its resources.<\/p>\n<p>It is believed that ICAI, being our Alma-mater, must step-in and approach the government. To provide for some protective measures , in order to save the interest of small and medium Indian Service Providers.&#8221;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SUGGESTIONS_SAFEGUARD_LOCAL_CA_FIRMS_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong>SUGGESTIONS &amp; SAFEGUARD\u00a0LOCAL CA FIRMS\u00a0IN INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We would suggest following immediate action points\u00a0to safeguard\u00a0local CA Firms\u00a0and provide a medium to\u00a0them to grow big:<\/p>\n<ol>\n<li>There&#8217;s\u00a0an urgent\u00a0need to\u00a0take appropriate action against the MAFs and their Networking Firms (which is long overdue) who are operating in India by flouting various norms including violation of CA Act and FDI rules. Despite my repeated RTIs, no data has been shared with me\u00a0on\u00a0what action is taken against these entities on the direction of the Supreme Court\u00a0within the\u00a0case of S Sukumar V\/s ICAI. The protective attitude of our sitting council members towards these networking firms speaks\u00a0lots\u00a0about their intentions.\u00a0they&#8217;re\u00a0guarding the rich\u00a0and large\u00a0Multinational Accounting Firms (who\u00a0are becoming\u00a0huge foreign funding),\u00a0instead of\u00a0protecting the local CA Firms. The Code of Conduct and Ethics are meant\u00a0just for\u00a0Indian Firms and not for them.\u00a0they&#8217;re\u00a0freely sponsoring business awards, events, TV debates, etc. under their\u00a0name\u00a0and taking assignments through their local network firms. Unfortunately, such kind of luxury\u00a0isn&#8217;t\u00a0available to local CA firms.<\/li>\n<li>The need\u00a0of the hour is that a delegate of ICAI should meet RBI, Bankers, PSUs, and various Ministries\u00a0to tell\u00a0them about ground realities\u00a0and provides\u00a0protection to Indian CA Firms\u00a0a minimum of\u00a0in Govt. Depts., PSBs, PSUs various other local Authorities and Regulators. MAFs\u00a0could also be\u00a0allowed\u00a0as long as\u00a0no Indian Service Providers are available for\u00a0that specific\u00a0Service. I can quote many instances where Indian CA Firms\u00a0weren&#8217;t\u00a0given\u00a0an opportunity\u00a0to Participate\u00a0within the\u00a0Tendering Process.\u00a0this could\u00a0not happen in our own country, which is\u00a0stuffed with\u00a0qualified, experienced, talented, and hardworking professionals.<\/li>\n<li>The selection\u00a0criteria for tenders and various assignments should be designed as per\u00a0the necessities\u00a0of the assignment and not as per the whims and fancies of the Tender issuing Authorities. Technical Parameters should\u00a0tend\u00a0more importance than the Turnover of the applicant. Even\u00a0a personal\u00a0should be eligible for applying for\u00a0a young\u00a0if he has\u00a0the required\u00a0competence, experience, and caliber to deliver.<\/li>\n<li>No Multinational Service Provider (including its Associate, Partner, Network Firm, etc.) be allowed to participate in Tenders of Govt. PSBs, PSUs, or\u00a0the other\u00a0Public Authority or Local Body.<\/li>\n<li>A young\u00a0Committee (as our Council Members are always prompt in making committees) should be formed\u00a0to prevent\u00a0various malpractices\u00a0within the\u00a0allotment of tenders and bidding processes. The grievance of members\u00a0associated with\u00a0tenders should be addressed on priority.\u00a0this\u00a0situation is\u00a0specified\u00a0you retain\u00a0writing to the Institute but\u00a0nobody\u00a0is there\u00a0to handle\u00a0your concern. This\u00a0ends up in\u00a0unrest amongst the fraternity members and ultimately\u00a0results in\u00a0several malpractices. If\u00a0there&#8217;s\u00a0a chosen\u00a0authority\u00a0to handle\u00a0these grievances,\u00a0I\u2019m\u00a0confident that members\u00a0wouldn&#8217;t\u00a0adopt unethical means\u00a0to urge\u00a0any assignment. In most of the cases, tendering system has been misused by the Tender-issuing agencies and they do so, by collecting high amounts of processing fees and EMD. There are instances where these authorities have collected processing fees\u00a0above\u00a0the number\u00a0of\u00a0the whole\u00a0cost of the assignment.\u00a0of these\u00a0cases must be\u00a0decided upon\u00a0seriously by PDC of ICAI.<\/li>\n<\/ol>\n<p>The above measures will definitely help in generating more and more professional opportunities for tiny and medium Service Providers and permit them to grow big. we are able to grow big on condition that we put our house in order.<\/p>\n<p>No one should be allowed to become so big that he starts destroying others, and every one of us must need to be powerful and resourceful enough to safeguard ourselves. Steps to be taken to promotion of local Firms for various assignments of Public Sector Undertakings, Govt. bodies, and Banks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"LOW_BIDDING_ON_APPOINTMENT_OF_AUDITORS_OTHER_ASSIGNMENTS\"><\/span><span style=\"color: #000080;\"><strong>LOW BIDDING ON APPOINTMENT OF AUDITORS &amp; OTHER ASSIGNMENTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/LOW-BIDDING-ON-APPOINTMENT-OF-AUDITORS.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3831\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/LOW-BIDDING-ON-APPOINTMENT-OF-AUDITORS.png\" alt=\"LOW BIDDING ON APPOINTMENT OF AUDITORS\" width=\"1164\" height=\"598\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/LOW-BIDDING-ON-APPOINTMENT-OF-AUDITORS.png 512w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/LOW-BIDDING-ON-APPOINTMENT-OF-AUDITORS-300x154.png 300w\" sizes=\"(max-width: 1164px) 100vw, 1164px\" \/><\/a><\/p>\n<p>The Government, Regulators, and various other Stakeholders should be worried\u00a0and anxious\u00a0about the falling standards of quality, deliverance, and performance, not just\u00a0in commission\u00a0Sector, but also in sectors like Infrastructure, Construction, and Manufacturing.<\/p>\n<p>The main problem, or we can say the sole culprit of the above problem is low-bidding or the L1 concept. It also shows the utter distress being face by the businesses\/service providers and the kind of race in which they compete with each other to grab an assignment\/work at any cost. Somewhere this\u00a0has got to\u00a0stop and\u00a0a far better\u00a0sense should prevail.<\/p>\n<p>How can we improve\u00a0the standard\u00a0of Services\u00a0could be a\u00a0big question? Without improving\u00a0the strategy\u00a0of Selection and paying\u00a0a decent\u00a0fee to service providers,\u00a0we are able to\u00a0neither improve\u00a0the standard\u00a0of labor, nor\u00a0we will\u00a0actually fix accountability. Good quality always comes at a price. Thus, if one pays for peanuts,\u00a0they will surely get monkeys only.<\/p>\n<p>The Govt and Society at large are perplexed\u00a0on\u00a0how big frauds\u00a0occur\u00a0despite Audits being done and despite following all norms of appointment of Auditors. This goes for\u00a0the other\u00a0assignment in PSUs, Banks, or\u00a0the other\u00a0Govt. authority.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SOLUTION\"><\/span><span style=\"color: #000080;\"><strong>SOLUTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The only solution\u00a0to the present\u00a0problem is\u00a0to try and do\u00a0away with the System\u00a0of choosing\u00a0Service Providers on L1 basis. Moreover,\u00a0this\u00a0system\u00a0of choosing\u00a0Service Providers\u00a0doesn&#8217;t\u00a0recognize the caliber of\u00a0a personal, who\u00a0may be\u00a0more experienced, knowledgeable, and has more capability than any established organization.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PROBLEMS_FACED_IN_TENDER_PROCESS\"><\/span><span style=\"color: #000080;\"><strong>PROBLEMS FACED IN TENDER PROCESS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>My Second Point needed\u00a0to be discussed\u00a0is to tackle\u00a0the difficulty\u00a0of flawed tendering process.\u00a0This issue\u00a0has been repeatedly\u00a0raised and communicated with you all and\u00a0you&#8217;ve got\u00a0given me\u00a0an awesome\u00a0response and echoed my voice.\u00a0thanks to\u00a0the positive response to my mail,\u00a0I made a decision\u00a0to meet\u00a0the then Vice-President of ICAI and highlighted this issue, and gave my suggestions\u00a0to handle\u00a0this issue. But\u00a0as usual,\u00a0there&#8217;s\u00a0a scarcity\u00a0of willingness or some unknown constraints which stop them from taking any bold decision.<\/p>\n<p>Before I reached for the meeting, a committee was purportedly formed to tackle\u00a0the difficulty\u00a0of low bidding but that was\u00a0only for\u00a0the sake of my meeting, and thereafter nothing happened. Thereafter, the VP told me that\u00a0they can&#8217;t\u00a0take any action Suo-Motto against any firm\u00a0thanks to\u00a0low bidding\u00a0and that they\u00a0need\u00a0a proper and a formal\u00a0complaint. After discussion, I even lodged\u00a0a formal\u00a0complaint\u00a0with that\u00a0committee\u00a0in respect of some of the\u00a0recent tender, but again, nothing happened. I repeatedly followed up over the mails, but\u00a0as usual, you never get any reply from\u00a0this type\u00a0of irresponsible system.<\/p>\n<p>I feel that\u00a0nobody\u00a0is happy about selecting agencies for any\u00a0kind of\u00a0work on L1 basis.\u00a0this method\u00a0has done more damage to\u00a0the standard\u00a0of Services and performance than\u00a0the rest. Therefore, the blame squarely lies with Govt. and its agencies like CVC, who are not recognizing and even looking up to thethese important matter for years. The sufferers are people like us, who\u00a0need to\u00a0deliver services by following certain standards of quality,\u00a0regardless of\u00a0the fee. Unfortunately, our Institute has never escalated this matter before CVC or various ministries and has no zeal\u00a0to speculate\u00a0time on such issues<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SUGGESTING_MEASURES\"><\/span><span style=\"color: #000080;\"><strong>SUGGESTING MEASURES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>TO beat\u00a0the menace of vague and abnormally low bidding in tenders\u00a0associated with\u00a0our profession, the ICAI should frame some guidelines, and allotment be done by using CAG panel. Technical qualification should be provided with certain Points, along with the Category allotted by CAG and MEF respectively.<\/li>\n<li>So as\u00a0to safeguard\u00a0the interest of small firms, all assignments valuing above Rs. 10 lacs should be allotted\u00a0to 2\u00a0or more firms where one firm\u00a0may be\u00a0a previously established firm\u00a0and also the\u00a0other(s)\u00a0can be\u00a0a small\u00a0or new upcoming firm. Even Individual professionals having rich experience should\u00a0be\u00a0a priority.\u00a0this may\u00a0end the constraint of lack of experience in any specific field. Otherwise, it becomes a Chicken n Egg like situation where\u00a0there&#8217;s\u00a0always\u00a0an issue, how\u00a0are you able to\u00a0gain experience without getting the assignment.<\/li>\n<li>Fee for the Professional Assignment should be decided by the Tender issuing authority on\u00a0the basis\u00a0of quantum\u00a0of work\u00a0involved and\u00a0in line with\u00a0the quality\u00a0Rate-Card published by ICAI. The Tender Issuing Authorities can always consult ICAI if\u00a0the rate\u00a0card\u00a0can&#8217;t be\u00a0followed for any specific assignment. Here again, comes\u00a0the problem\u00a0of Image Building which\u00a0we want\u00a0to figure\u00a0upon, as I suggested in my first Agenda Point.<\/li>\n<li>Last but not the least, strict Suo-Motto actions be taken against members, involving in under-cutting of competition and following unethical means to grab work. The Institute should be vigilant and\u00a0rather than\u00a0a peer-review (which I feel is an utter failure), the matter should be\u00a0brought up\u00a0to a specific\u00a0team of experienced professionals directly reporting to PDC of ICAI.<\/li>\n<\/ol>\n<p>The World Bank has in place certain norms for handling \u201cAbnormally Low Bidding\u201d and also the same will be referred for handling various assignments where CAs are bidding. We cannot let things deteriorate within the hands of some professionals who want to urge assignments at any cost without caring about the quality of work.<\/p>\n<p><a href=\"https:\/\/carajput.com\/press-releases\/new-cag-policy.pdf\"><span style=\"color: #000080;\"><strong>New CAG Policy\u00a0<\/strong><\/span><\/a><\/p>\n<ul>\n<li>As we are all aware, C&amp;AG changed its empanelment policy for Chartered Accountants (CA) firms for the FY 2023\u20132024.<\/li>\n<li>The points for Partners &amp; duration of the firm&#8217;s relationship were reduced under that policy, and points for peer review were added.<\/li>\n<li>If Firm has been performing peer review for the the past nine years, it will get 25 points.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><span style=\"color: #000080;\"><strong>CONCLUSION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After\u00a0most\u00a0discussion with fellow professionals,\u00a0the sole\u00a0question that arises in my mind is, who are these\u00a0people that\u00a0are getting\u00a0Professional Assignments through Tenders and what special\/unique techniques they follow to qualify for\u00a0a selected\u00a0assignment and\u00a0what&#8217;s\u00a0the basis\u00a0of calculating the minimum value of assignment (minimum bid value).\u00a0we&#8217;d like\u00a0some policy to tackle this important issue. Till then,\u00a0we&#8217;ve got\u00a0no option but\u00a0to observe\u00a0the deterioration happening before our eyes.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7549\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm.jpg\" alt=\"ICAI Disciplinary Committee can take action against the CA &amp; CA Firm\" width=\"1223\" height=\"1759\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm.jpg 890w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm-209x300.jpg 209w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm-712x1024.jpg 712w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm-768x1105.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/08\/ICAI-Disciplinary-Committee-can-take-action-against-the-CA-CA-Firm-800x1151.jpg 800w\" sizes=\"(max-width: 1223px) 100vw, 1223px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SAFEGUARD &amp; CHALLENGES FACED BY LOCAL CA FIRMS IN INDIA BRIEF INTRODUCTION Our Govt. believes and at the same time wants that the Global Big-8 firms should be including the 4 Indian Accounting Firms. However,\u00a0this is often\u00a0not going\u00a0to happen until our own Govt. decides to promote local firms and thereby provides some kind of support, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[504,502,501],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3827"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=3827"}],"version-history":[{"count":6,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3827\/revisions"}],"predecessor-version":[{"id":9511,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3827\/revisions\/9511"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=3827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=3827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=3827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}