The Hindu : Kerala News : `Inflation causing concern'

Online edition of India's National Newspaper
Saturday, Sep 04, 2004

Kerala

Kerala

`Inflation causing concern'

By Our Staff Reporter

KOCHI, SEPT. 3. The Executive Director of Reserve Bank of India (RBI), Mumbai, P.V. Subba Rao, has said that rising inflation is causing concern to the financial sector. Steps for reversing the trend were being mooted, he said while inaugurating the All India Chartered Accountants Conference organised by the Institute of Chartered Accountants of India (ICAI) here today.

Mr. Rao said low interest rates were considered to have a bearing on inflation. There were options for changing the interest rate or maintaining it at the same level, he said. But in general, profitability of banks had increased. A private sector banks had declared 100 per cent dividend, he pointed out.

Noting that the financial sector was passing through a phase of change, Mr. Rao lauded the entrepreneurship among the Kerala banking sector. Banks in Kerala were doing well and accounting practices had a key role in maintaining their strength, he said.

The president of the ICAI, Sunil Goyel, said the Indian Chartered Accountants were competitive enough in the changing global scenario. As the economy was picking up, new opportunities were emerging in fields such as business process outsourcing, value-added tax and insurance, according to him.

New ICAI course

Later, at a press conference, Mr. Goyel said ICAI, having five regional offices in India, was conducting examinations for students within and outside the country. A permanent placement cell was opened recently and a committee was set up to review the curriculum. A course on capital market would be introduced soon, he said.

Answering questions, he welcomed the opening up of the services sector for Chartered Accountants, but hastened to add that one-to-one reciprocity should be adhered to. Indian Chartered Accountants should not be restricted by "artificial restrictions" like visa in countries which send their CAs to India.

In fact, Indians CAs would be the major gainers in the new WTO regime set to be implemented next year, according to him. About 4,000 Indian CAs were already practising in Gulf countries, he said.

To another question, Mr. Goyel said ICAI would approach tax authorities against the clause in the new Income Tax Act which makes the CAs also liable for action for no fault of theirs.

J. Venkiteswarlu, Chairman, Southern India Regional Council (SIRC), ICAI; Thomas Chazhikkadan, MLA; T.N. Manoharan, member of executive committee of ICAI; S. Kandasami, Secretary, SIRC of ICAI; Sen George, Chairman, Ernakulam branch of ICAI; V.C. James, vice-chairman, SIRC of ICAI; Babu Abraham Kallivayalil, Joint Convener of the conference; S. Santhanakrishnan, S. Gopalakrishnan, and other office-bearers were present.

Printer friendly page
Send this article to Friends by E-Mail

Kerala