The Hindu Business Line : ICWAI clears plan to network member firms

The ICWAI, which is following a standard set internationally in this regard, will let smaller firms combine their resources in order to compete with their bigger counterparts. The idea is to create conditions that allow the smaller entities grow faster.

Mr Pravakar Mohanty, President of the Institute, confirmed the development, adding that the council's decision will ultimately have major consequences. This, he maintained, is a first for the Institute, which has been trying to ensure that its members become more competitive in a rapidly changing business environment.

The council took the decision at a meeting held in Kolkata recently. At the same meeting, a code of ethics for members was also approved. More will be made known on this front at a later stage, it was pointed out.

As things stand, cost accountants (who hope to re-christen themselves `cost and management accountants' soon) can set up independent practice as well as tap employment opportunities.

As for independent practice, cost accountants are free to offer their services in a number of areas. These, the Institute has mentioned, include mandatory cost audit under Section 233(B) of the Companies Act, 1956 as well as certification under the Export and Import Policy. Besides, there could be independent consultancy assignments.

According to Mr Rakesh Singh, council member, the move to allow networking will enable cost accountants to transcend the current limitations. "While this is allowed globally, its impact for the Institute will be far-reaching. We hope to permit members to form partnerships, which will have to be based on a certain format. There will be a process of registration, which must be strictly followed," he stated.

The ICWAI is expected to shortly come out with guidelines on the matter; these will help members structure their relationships in the best possible manner. The Institute's move may be seen in the backdrop of serious competition faced by the cost accounting fraternity — a situation that has actually prompted Mr Singh to say that "some members may even be wiped out if such networking is not allowed".

This has also been echoed by senior ICWAI management, especially in the context of the need to improve members' productivity, enhance professionalism and establish new work standards.

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