President’s Message | May 2023

Dear Readers,

The International Monetary Fund (IMF) released its latest World Economic Outlook report, projecting that the Indian economy will grow by 5.9 per cent in the current fiscal year, making it the fastest-growing economy in the world. Nonetheless, the organization also warned that disruption in the financial system could have a detrimental effect on overall global growth. As chartered accountants, we play a vital role in supporting and strengthening the Indian economy. Let us continue to work diligently and uphold the highest standards of professionalism and ethics. Current state election has serious repercussions on the economy, the state election are generally more connected to cadres and citizens which encourages the parties to offer more freebies, While these freebies may seem attractive to voters in the short term, they often have a detrimental impact on the economy in the long term. Freebies put a strain on the government’s finances and can lead to a widening fiscal deficit. This, in turn, can lead to inflation, a decrease in investment, and a decline in the overall health of the economy. Also, offering freebies can create a culture of dependency among voters, who may come to expect such handouts in every election cycle. This can lead to a situation where political parties are forced to offer even more freebies in order to remain competitive, further exacerbating the strain on the government’s finances. In contrast, a more sustainable approach to economic development would be to focus on policies that promote growth and job creation. Such policies would include investments in infrastructure, education, and healthcare, as well as creating an environment that is conducive to business and entrepreneurship. This would not only create employment opportunities but also increase the tax base, thereby providing the government with more resources to invest in public goods and services.

The upcoming audit season is just around the corner, and we need to be prepared. As chartered accountants, we must ensure that we are up to date with all the latest regulatory requirements and guidelines. We must also be diligent in our work and maintain the highest levels of integrity and professionalism. Let us work together to ensure that the audit season is a success for all of us. The National Financial Reporting Authority (NFRA) has been actively working to improve the quality of audit reports in India. In recent months, the NFRA has issued orders against auditors for various deficiencies and non-compliances. As chartered accountants, we must take note of these orders and ensure that we maintain the highest levels of professionalism and ethics in our work. It is also the time for the profession to show resilience and quality and win confidence and trust of all the stakeholder­­s.

KSCAA along with other six sister associations have come forward to conduct ‘Direct Tax home Refresher Course -4’ to be addressed by nations best speakers on various topics.

The Karnataka State Chartered Accountants Association (KSCAA) is organizing a Regional residential Course on growth mindset in Bandipur from 26th to 28th May 2023. The course is open to all members and will be conducted by renowned expert in the field of Behavioural Science. The course will cover the topics like What is growth mindset? The benefits of growth mindset, risk ability, Collaboration, Risk taking, out of the box thinking, accountability and resilience.

“Individuals who believe their talents can be developed (through hard work, good strategies, and input from others) have a growth mindset. They tend to achieve more than those with a fixed mindset (who believe their talents are innate gifts). This is because they worry less about looking smart and they put more energy into learning.” – Carol Dweck, Professor of Psychology at Stanford University. The concept of growth mindset was popularized by Carol Dweck in her book “Mindset: The New Psychology of Success”. According to Dweck, individuals with a growth mindset believe that their abilities can be developed through hard work, persistence, and a willingness to learn from mistakes. They are more likely to embrace challenges, see failures as opportunities for growth, and believe that they can improve their skills and knowledge over time. In contrast, individuals with a fixed mindset believe that their abilities are largely innate and cannot be changed. They are more likely to avoid challenges, give up easily in the face of obstacles, and see failures as a reflection of their inherent limitations. As a result, they may be less likely to take risks or push themselves to develop new skills or knowledge. KSCAA has also curated a program on the same logic, by promoting the belief that talents can be developed through hard work and learning, the association can foster a culture of continuous improvement, innovation, and resilience. This will allow members to embrace new challenges, seek out opportunities for professional development, and view setbacks as opportunities for growth.­

Happy reading!

Yours’ faithfully,

CA. Pramod Srihari