Indore: World’s entire economy is based on trust, and whenever there is deficit of trust, there is bad economy. Former Chief Justice of India Dipak Misra stated this while addressing a special session held during inauguration of two-day conference of Central India Regional Council of Institute of Chartered Accountants of India at ICAI auditorium here on Saturday.
“During my college days, our economics professor became vice chancellor (VC) who asked us what we understand by economics or economy,” Misra said. He then explained it and said entire economy of the world is based on faith.
“Faith here means, you are aware about culture of the man, the industry; benefits and assets; and that you have faith in that person (who is running it),” Justice (retired) Misra remarked. He urged CAs to develop psychology of economics and said psychologists writing books on the subject are winning Nobel Prize.
“Tax planning must be genuine putting both income and expenses in perspective for which every chartered accountant must legally and ethically understand the law and be able to explain tax evasion. CA plays a significant role in the economy,” Misra said.
“CA needs to question themselves whether they will be accurate and beautiful or inaccurate and ugly,” Misra said. He explained that being accurate means ensuring that tax saving does not become tax evasion.
He said accounting system existed in India since ancient days. He said in a situation where there is multiple, reciprocal and innumerable transactions, the scientific manner of bookkeeping becomes paramount. Citing example of Warren Buffet and from his biography, Justice Misra explained that accounting brings self-discipline and quality in business.
He urged CAs to understand RBI’s circulars in proper perspective and advise their clients accordingly. Besides, he reminded CAs of their duty to protect entrepreneurs’ interests. He also asked them to be acquainted with international accounting standards. “Nano economics is throwing challenge to you, you have to equip yourself,” he said.
Full time member in Insolvency and Bankruptcy Board of India Dr MukulitaVijayawargiya talked about specialised fields for CAs. ICAI president Ashish Garg talked about uniqueness of every chartered accountant despite studying the same syllabus.
