CAs should be aware about latest developments: Dr

Source: The Hitavada      Date: 29 Jan 2018 10:01:02


Business Bureau

THE Insolvency and Bankruptcy Board of India was setup under the Insolvency and Bankruptcy Code, 2016 (Code). “It is a unique regulator which regulates a profession as well as the transactions. It has regulatory oversight over the insolvency professionals, insolvency professional agencies and information utilities,” said M S Sahoo, Chairman of the Insolvency and Bankruptcy Board of India. He was recently speaking as the key note speaker at the interactive meet organised by Nagpur Branch of ICAI.

Saboo said that the Insolvency and Bankruptcy Board of India has three major tasks to do like register, regulate and develop. The board has to play a major role in framing all the rules and regulations which will be required in the process. Chartered accountants (CAs) are eligible to practice in this area and many of them are working with a good knowledge and experience after clearing the required Limited Insolvency Examination. Considering the knowledge and experience of CAs after learning about the law, they can work more effectively in this field. “CAs are the eyes and ears of the Government which relies on their work and reports,” said Sahoo.

He said that there are many changes happening in this field and it is important for the professional to be aware of the latest developments taking place. With the changing law, the responsibilities of professional are also increasing day by day. A company defaulting above Rs 1 lakh entitles the creditors to initiate the insolvency proceedings. “We have around 500 companies under the resolution out of which 30 have completed the process and in 2 cases there has been 100 per cent recovery”, he said.

The insolvency proceedings start when there is a default i.e. when a person is unable to pay. The professionals who are working in this field have to first understand the available resources and ensure that the maximum resources are utilised to the maximum extent. “With the new law in force with proper rules and regulations in an effective manner in which it is being implemented, people would not be willing to default in the present scenario,” he explained.

“In the starting phase, there may be some problems in understanding and execution along with the some practical difficulties in compliance but with time to come things will be resolved for which we have to give sufficient time to the regulators. We all have to work together and also help each other to fulfill our duty and also to get the best output and to serve the purpose for which the law is enacted”, he pointed out.

Members also raised the queries being faced in multiple areas which was duly addressed and guided by Sahoo.
CA Julfesh M Shah, Member of PR and CSR Committee of ICAI, New Delhi said, “This new area which is being chosen and developed by the CAs will create numerous professional opportunities in time to come. While serving as an insolvency professional, we have to remember and understand the purpose of the law and have to contribute in serving the purpose. Being effective link, we have to highlight the required changes as well as practical difficulties being faced at the ground level”.

CA Sandeep Jotwani, Chairman of Nagpur Branch of ICAI, informed about the various activities being undertaken by the institute for the members, students and the society.
CA Jiten Saglani coordinated the programme whereas CA Suren Duragkar, Secretary of Nagpur Branch proposed formal vote of thanks.

Prominently present were CA Umang Agrawal, CA Saket Bagdia, CA O S Bagdia, CA Sanjay M Agrawal, CA Milind Patel, CA Prasad Dharap, CA Mangesh Kolhatkar and members in large numbers.