SAFA Activity Report- 31 December 2010
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South Asian Federation of Accountants

(An Apex Body of SAARC)

Annual Activity Report-2010  

Member Bodies

The Institute of Chartered Accountants of Bangladesh

Established in 1973

The Institute of Cost and Management Accountants of Bangladesh

Established in 1977

The Institute of Chartered Accountants of India

Established in 1949

The Institute of Cost and Works Accountants of India

Established in 1959

The Institute of Chartered Accountants of Nepal

Established in 1997

The Institute of Chartered Accountants of Pakistan

Established in 1961

The Institute of Cost and Management Accountants of Pakistan

Established in 1966

The Institute of Chartered Accountants of Sri Lanka

Established in 1959

The Institute of Certified Management Accountants of Sri Lanka

Established in

Permanent Secretariat

c/o The Institute of Chartered Accountants of India

ICAI Bhawan, P.O. Box No. 7100, Indraprastha Marg,
New Delhi – 110002, India
Phone: 00 91 11 30110404, 30110487
Fax: 00 91 11 30110581, 30110591
E-mail: safa@icai.org
Website: www.esafa.org


Office Bearers – 2010

President                               Mr. Komal Chitracar, ICANepal

Vice President                      Mr. A.N. Raman, ICWA India

Advisor                                  Mr. Sheikh A. Hafiz, ICABangladesh

Permanent Secretary         Mr. T. Karthikeyan, ICAIndia

Executive Secretary                        Mr. Parmananda Adhikari, ICANepal

Committee(s) of SAFA

 

Committee on Education, Training and CPD

Chairman: Mr. Vinod Jain, ICA India

Committee on Professional Ethics and Independence

Chairman: Mr. ASM Nayeem, ICA Bangladesh

 

Committee on Accounting and Auditing Standards

Chairman: Mr. Reyaz Mihular, ICA Sri Lanka

Committee for Improvement in Transparency, Accountability and Governance

Chairman: Mr Lasatha Wickremsinghe, ICA Sri Lanka

Committee on Professional Accountant in Business

Chairman: Mr. A. N Raman, ICWA India

Committee on Quality Control

Chairman: Mr. Saqib Masood, ICAPakistan

Committee on Harmonization of Fiscal and Tariff Regimes

Chairman: Mr. Narayan Bajaj, ICANepal

 

Committee on Small and Medium Practices

Chairman: Mr. Amarjit Chopra, ICAIndia

Committee on Governmental and Public Sector Enterprises Accounting

Chairman: Mr. Muhammad Rafi, ICMA Pakistan

Task Force to review Constitution of SAFA

Chairman: Mr. Saqib Masood, ICAPakistan

Task Force to develop Broad Guidelines for organizing SAFA Summit

Chairman: Mr. Komal Chitracar, ICANepal

 

 

Past Presidents

 

            Mr P. N. Shah                                         India                           1984 and 1985

Mr Lakshaman R. Watawala              Sri Lanka                                 1986

Mr E.S.H. Dahodwala                           Pakistan                                  1987

Mr M. Yunus                                           Bangladesh                            1988

Mr V. Kalyanaraman                           India                                       1989

Mian Mumtaz Abdullah                      Pakistan                                  1990

Mr Habibur Rahman                            Bangladesh                            1991

            Mr K.M. Agarwal                                   India                                        1992

Mr N.A.L. Cabraal                                Sri Lanka                                 1993

Mr Ebrahim Sidat                                  Pakistan                                  1994

Mr Jamal Uddin Ahmad                      Bangladesh                            1995

Mr K.R.S. Sastry                                      India                                       1996

Prof Dr Khawaja Amjad Saeed           Pakistan                                  1997

Ch Hafizur Rahman                              Bangladesh                            1998

            Mr T.S. Vishwanath                                India                                        1999

Mr Lal Nanayakkara                            Sri Lanka                                 2000

Pir Mohammed Kaliya                         Pakistan                                  2001

Mr Zahir Uddin Ahmad                        Bangladesh                            2002

            Mr Ashok Chandak                               India                                        2003

Mr Badruddin Fakhri                             Pakistan                                  2004

Md Nurul Hassan,                                Bangladesh                             2005

Mr Sunil Goyal                                    India                                          2006

Mr Indrajith Fernando                         Sri Lanka                                  2007

Mr. Syed Md. Shabbar Zaidi                        Pakistan                                     2008

Mr. Sheikh A. Hafiz                             Bangladesh                               2009

Activity Report for the period 1st January 2010 to 31st December 2010

 

1.         Introduction

 

1.1             South Asian Federation of Accountants (SAFA), an Apex Body of SAARC was set up in 1984 for promoting the accounting profession in the countries in South Asia and internationally with a mission to bring the accounting bodies in the region together at a common forum and facilitate professional cooperation in the areas of education, training, technical and ethical standards.  The SAFA comprises of the nine member bodies which are the statutorily recognized professional accountancy bodies in India, Pakistan, Nepal, Bangladesh and Sri Lanka. Bhutan, Maldives and Afghanistan SAARC member countries representatives are invited to attend Assembly meetings as observers. China, Korea and Japan being observers of SAARC are also given observer status and invited to attend Assembly meetings.

 

1.2             SAFA as an Apex body of SAARC and regional grouping of IFAC has been playing a pivotal role for the harmonization of professional standards in the areas of accounting, auditing, ethics and education and is committed to raise the level of profession in the Region. SAFA provides special impetus to co-operation amongst its member bodies for the overall growth of the accountancy profession in the SAARC region and explores means in which, it as a representative forum, could play prolific role in the development of the accountancy profession.

 

1.3             The role being played by SAFA for the development of the accountancy profession in the SAARC Region and for the economic development of the Region as a whole has been exemplified through the innovative work being carried through its various technical Committees working in the area of education, accounting & auditing standards, government accounting, ethics and many other emerging issues of accountancy profession.

 

 

1.4             During period under report, the Constitution of SAFA has been revised with a view to improve the governing of SAFA.  The principal changes include, among others, provisions relating to granting membership and in election of office bearers.

 

 

1.5             The member bodies’ organized students’ exchange programmes and invited other member bodies in their national events to provide fillip to bilateral co-operation and render platform for lively exchange between the professional communities in the Region.

 

2.         Assembly Meetings

 

2.1       Assembly is the governing body of SAFA, which looks into the strategic, and policies related issues while Board is the executive body of SAFA. During period under report 4 highly productive Board meetings – two meetings in Nepal and one each in Bangladesh and Sri Lanka and 2 Assembly meetings – one each in Nepal and Bangladesh were held. Coinciding with the above, the meetings of various Non-Standing Committees were held. A significant progress was recorded in the projects at hand with various Committees of SAFA.

2.2             The 70th meeting of SAFA Assembly was held on 23rd January 2010 at Kathmandu, Nepal. At the meeting, the new office-bearers were elected for the year 2010.  Mr Komal Chitracar, of the Institute of Chartered Accountants of Nepal was elected as the President while Mr A.N. Raman, Central Council Member of the Institute of Cost and Works Accountants of India was elected as Vice President.  Mr Sheikh A. Hafiz, Immediate Past President of SAFA was appointed as Advisor for the year 2010.  Mr Parmananda Adhikari of the Institute of Chartered Accountants of Nepal was appointed as the Executive Secretary for the year 2010.

 

 

2.3             The representative of the CPA Maldives also attended the meeting as Observer. The Assembly deliberated in detail about the role that SAFA can play in the institutionalization of accountancy profession in Maldives.

 

2.4             The Assembly also discussed about the progress made with regard to the status of SAFA as a regional body of International Federation of Accountants (IFAC). SAFA is currently a Regional Grouping of IFAC.

 

 

2.5             Apart from above, following major issues were discussed at the meeting:

 

  • Reconstitution of non-standing Committees of SAFA
  • Approval of per diem allowance to SAFA office bearers/authorized representatives to represent SAFA at international forums.

 

 

2.6             The 71st meeting of SAFA Assembly was held on 8th August 2010 at Dhaka, Bangladesh.  At the meeting, the Assembly approved the revised Constitution of SAFA as recommended by the SAFA Board. The revised Constitution provides for a detailed provision about the appointment of office bearers of SAFA. The revised Constitution also provides for different categories of membership namely, Members, Associates and Observers and how a new accounting body can be admitted to membership of SAFA.

 

 

 

3.         Meetings of SAFA Board

 

3.1             During period under report 4 highly productive Board meetings – two meetings in Nepal and one each in Bangladesh and Sri Lanka were held.

 

12th  Board meeting Kathmandu, Nepal 23rd January 2010
13th Board meeting Colombo, Sri Lanka 27th April 2010
14th Board meeting Dhaka, Bangladesh 8th August 2010
15th Board meeting Kathmandu, Nepal 10th December 2010

 

3.2             The 12th SAFA Board meeting was held on 23rd January 2010 at Kathmandu, Nepal. At the meeting, Committee Chairmen presented their report and action plan for the year 2010. The following important issues were discussed at the meeting:

  • To organize SAFA Regional Standard Setters Conference on 3oth November and 1st December at New Delhi
  • To explore the possibilities of organizing SAFA Conference coinciding with the World Congress of Accountants (WCOA) at Malaysia in November 2010
  • To organize 1st SAFA Summit coinciding with the 25th Anniversary of SAARC at Kathmandu, Nepal
  • Finalization of schedule of SAFA events for the year 2010

 

3.3             The 13th SAFA Board meeting was held on 27th April 2010 at Colombo, Sri Lanka. The Chairmen of the Committees presented their report for the consideration of the Board.  Coinciding with the Board meeting, meetings of various technical Committees of SAFA and the Task Force to review Constitution of SAFA and Task Force to develop broad guidelines for organizing SAFA Summit were also taken place. The draft activity report for the year 2009 was also approved by the Board.  The following other important issues were discussed at the meeting:

  • Time limit for organizing SAFA Best Presented Accounts Awards 2009
  • Agenda for SAFA Regional Standard Setters Conference
  • Detailed guidelines for organizing SAFA 1stSummit on the theme ‘Sustainable Development in SAARC Region’
  • To organize Workshop on Sustainability Reporting in October at Bangalore
  • Comparative study of Quality Control framework prevailing in SAFA member bodies
  • Comparative study of CPD requirements prevailing in SAFA member bodies

 

 

3.4             The 14th SAFA Board meeting was held on 8th August 2010 at Dhaka, Bangladesh. Coinciding with the Board meeting, meetings of various non standing Committees took place. At the meeting, the Board noted the revised BPA evaluation criteria recommended by the Committee for improvement in Transparency, Accountability and Governance for evaluation of annual reports for SAFA Best Presented Accounts Awards Competition. The Board also approved the questionnaire designed to seek information related to set up of government accounting in SAARC Region.  The Board also approved the Terms of Reference of the Committee on Professional Ethics and Independence and Committee on Governmental and Public Sector Enterprises Accounting. The Board also discussed the technical structure of the 1st SAFA Summit and formed a technical committee to finalize the technical content of the SAFA Summit. The Technical Committee was also entrusted the task of finalizing the technical content of SAFA Forum scheduled to be held coinciding with the World Congress of Accountants on 8th November 2010.

 

 

3.5             The 15th meeting of SAFA took place on 10th December 2010 at Kathmandu, Nepal. The Board noted the nomination of Mr. Muhammad Rafi, National Council Member of ICMA Pakistan for appointment as Vice-President of SAFA for the year 2011. The Board also noted the revised Constitution of SAFA as approved by the Assembly. The Board also noted the progress of different projects undertaken by various Committees of SAFA. The reports of various events held under the aegis of SAFA were also presented at the meeting.

 

 

4.         1st SAFA Summit: 10th-12th December 2010 at Kathmandu, Nepal

 

 

4.1             1st SAFA Summit on the theme ‘Sustainable Development in SAARC Region’ was organized on 10th -12th December 2010 at Kathmandu, Nepal. The Summit was hosted by the Institute of Chartered Accountants of Nepal. Dr. Ram Baran Yadav, Hon’ble President of Nepal inaugurated the Summit in a glittering ceremony amidst a galaxy of dignitaries and professionals. The Summit also commemorated the SAARC Silver Jubilee celebrations,

 

4.2              Dr. Andreas Shield, Director General, International Centre for Integrated Mountain Development (ICIMOD) presented the key note address on the Summit Theme. The learned speakers from the SAARC region presented papers on various issues involved, role of accountancy profession in sustainable development and the action that should be taken for the sustainable development in SAARC Region. The Summit was a momentous event witnessing the presence of more than 350 eminent professionals from across the Region.

 

4.3             The valedictory session of SAFA Summit was held on 12th December 2010. The Award giving ceremony of SAFA BPA & CG Awards 2009 was also held on the occasion. Hon’ble Mr. Surendra Pandey, Finance Minister, Government of Nepal handed over the awards to the winners. He delivered the valedictory address as the Chief Guest. Mr. Komal Chitracar, President SAFA read out the Kathmandu Declaration of the SAFA Summit.

 

 

  1. 5.            SAFA Regional Standard Setters Conference on 30th November & 1st December 2010 at New Delhi, India

 

5.1             The SAFA Regional Standard Setters (RSS) Conference hosted by the Institute of Chartered Accountants of India was held in New Delhi from November 30 – Dec 1, 2010 at the India Habitat Centre, New Delhi. Approx. 150 participants including 30 participants from Pakistan, Nepal, Bangladesh and Sri Lanka attended the event. The Chief Guest at the Conference was Hon’ble Shri K. Rahman Khan, Deputy Chairman, Rajya Sabha, Government of India. Sir David Tweedie, Chairman, International Accounting Standards Board (IASB) and Mr. Prabhakar Kalavacherla, Member, IASB were Guests of Honour. The two day Conference dwelled upon some of the important issues such as First time adoption of IFRS, Implementing IFRS in a bank, Implementing IFRS on Financial Instruments, status of convergence with IFRS in SAFA countries and alike. The Chairman, Accounting Standards Board (ASB) of respective SAFA countries shared the convergence experience with IFRS in their respective country.

 

5.2             A comparative study of SAFA Countries Accounting & Auditing Standards vis-à-vis International Accounting & Auditing Standards was also released at the occasion by the august hand of Hon’ble Shri K. Rahman Khan jointly with Sir David Tweedie.

 

 

6.         SAFA Forum at World Congress of Accountants, Malaysia  

 

6.1             SAFA Forum was organized on 8th November 2010 at Kuala Lumpur, Malaysia coinciding with the World Congress of Accountants. The forum was organized in the form of a Panel Discussion on the theme ‘Implementing IFRS and IPSAS in Developing Countries’.

 

6.2              Mr. Komal Chitracar, President SAFA chaired the session. Other eminent speakers were Mr. Kevin Stevenson, Chairman, Australian Accounting Standards Board, Prof. Dr. Andreas Bergmann, Chairman, IPSAS Board, IFAC, Mr. Ken Pushpanathan, Board Member, Malaysian Accounting Standards Board, Mr. Nishan Fernando, Past President, Institute of Chartered Accountants of Sri Lanka and Mr. Federico Diomeda, CEO, European Federation of Accountants and Auditors. Mr. Kevin Stevenson was the moderator of the panel discussion while Mr. A. N. Raman, Vice President, SAFA highlighted the objective of holding the SAFA Forum and expected outcome from the Forum. The Forum was a great success and about 150 participants from SAFA countries, African countries, Europe and Malaysia participated at the event.

 

 

7.         SAFA Workshop on Sustainability Reporting

 

7.1             A Workshop on Sustainability Reporting was organized on 21st October 2010 at Bangalore, India in technical collaboration with DNV. The Workshop was jointly organized by ICWAI & ICAI. Mr. R. Bandyopadhyay, Secretary, Ministry of Corporate Affairs, Government of India inaugurated the Workshop. It was attended by representatives of SAFA bodies from Bangladesh and Sri Lanka apart from Indian participants. Coinciding with the Workshop, meeting of SAFA Committee on Professional Accountants in Business also took place.

 

 

8.         SAFA Best Presented Accounts Award & Corporate Governance Disclosure Awards 2009

 

8.1       The SAFA Committee for Improvement in Transparency, Accountability and Governance (ITAG) had number of meetings to finalize the winners of SAFA BPA & CG Awards 2009. After a series of meetings, the two days Conference Marking Session was held on 28th-29th November 2010 at New Delhi whereat the winners were decided. Following companies were adjudged as winner in different categories:

Best Presented Accounts Awards and Corporate Governance Disclosure Awards 2009

 

 

 Company

 CountryPositionCategory I – Banking Sector subject to Prudential Supervision

 Prime Bank LimitedBangladeshWinnerHatton National Bank PLCSri Lanka1st Runner up (Joint)Sampath Bank PLCSri Lanka1st Runner up (Joint)

Faysal Bank LimitedPakistan

2nd Runner up (Joint)Commercial Bank of Ceylon PLC

Sri Lanka2nd Runner up (Joint)Category II – Non-Banking Financial Sector not subject to prudential supervisionUnion Assurance PLC

Sri LankaWinnerPrime Finance and Investment Limited

Bangladesh1st Runner upEagle Insurance PLC

Sri Lanka2nd Runner upCategory III – Manufacturing Sector

 Siemens (Pakistan) Engineering Company LimitedPakistanJoint WinnerPakistan Petroleum Limited

PakistanJoint WinnerChemical Industries (Colombo) PLC

Sri Lanka1st Runner upGlaxoSmithKline Bangladesh LimitedBangladesh2nd Runner up (Joint)Singer Sri LankaSri Lanka2nd Runner up (Joint)Category IV – Communication and Information Technology Sector

 Sri Lanka Telecom PLCSri LankaWinner

Grameen Phone LimitedBangladesh1st Runner up (Joint)Nucleus Software Exports LimitedIndia1st Runner up (Joint)Persistent Systems Limited

India2nd Runner upCategory V – Hospitality, Health, Transport, Shipping, etc.

 John Keells Holdings PLC

Sri LankaWinner (Joint)Sanofi-Aventis Pakistan Limited

PakistanWinner (Joint)Aitken Spence and Company PLC

Sri Lanka1st Runner upAl-Ghazi Tractors Limited

Pakistan2nd Runner upCategory VI – Non Governmental OrganizationsBRAC

BangladeshWinnerBURO Bangladesh

Bangladesh1st Runner upPlantation Human Development Trust

Sri Lanka2nd Runner upCategory VII- Public Sector EntitiesBank of CeylonSri Lanka

Joint WinnerPeople’s BankSri LankaJoint Winner

Oil and Natural Gas Corporation Limited)India

1st Runner upAgrani Bank LimitedBangladesh2nd Runner up

 Corporate Governance Disclosure Award

 Union Assurance PLC

Sri LankaWinnerHNB Assurance PLCSri Lanka1st Runner up

Commercial Bank of Ceylon PLC

Sri Lanka2nd Runner up

 

 

 

Overall Winner Award

 

Company Country Position
Siemens (Pakistan) Engineering Company Limited Pakistan Overall Winner (Joint)
Pakistan Petroleum Limited

PakistanOverall Winner (Joint)Prime Bank LimitedBangladeshOverall 1st  Runners up (Joint)Chemical Industries (Colombo) PLC

Sri LankaOverall 1st  Runners up (Joint)Union Assurance PLC

Sri LankaOverall 2nd Runner up

 

 

 

Merit Certificate Awardees

 

Company

 CountryCategory I – Banking Sector subject to Prudential Supervision

 Askari Commercial Bank Limited

PakistanMCB Bank Limited

PakistanICICI Bank Limited

IndiaAxis Bank Limited

IndiaDutch Bangla Bank Limited

BangladeshEastern Bank Limited

BangladeshCategory II – Non-Banking Financial Sector not subject to prudential supervisionBirla Sunlife Insurance Company Limited

IndiaICICI Prudential Life Insurance Company LimitedIndiaAtlas Insurance Limited

PakistanFirst Habib Modaraba Bank LimitedPakistan

New Jubilee Insurance Company Limited

Pakistan

Lanka Bangla Finance Limited

BangladeshIDLC Finance Limited

BangladeshMercantile Investments Limited

Sri LankaCategory III – Manufacturing Sector

 Dr. Reddy’s Laboratories Limited

IndiaNagarjuna Construction Company Limited

IndiaHero Honda Motors Limited

IndiaButwal Power Company Limited

NepalUnilever Nepal LimitedNepal

Attock Petroleum Limited

PakistanSinger Bangladesh Limited

BangladeshAdvanced Chemical Industries Limited

BangladeshChemanex PLCSri Lanka

 Category IV – Communication and Information Technology Sector

 No merit certificates

Category V – Hospitality, Health, Transport, Shipping, etc.

 Atlas Honda Limited

PakistanHayleys PLCSri Lanka

Category VI – Non Governmental Organizations

Vidya Dairy

IndiaThe Akshaya Patra Foundation

IndiaThe Citizen Foundation

PakistanSajida Foundation

BangladeshVision Fund Lanka (GTE) Limited

Sri LankaThe Ceylon Chamber of Commerce

Sri LankaCategory VII- Public Sector Entities

  Bharat Petroleum Corporation Limited

IndiaNational Savings Bank

Sri LankaCategory VIII – Corporate Governance Disclosure Awards

Siemens (Pakistan) Engineering Limited

PakistanCrescent Steel & Allied LimitedPakistan

 

 

 

 

 

8.2       The Award giving ceremony was held on 12th December 2010 at the valedictory session of SAFA Summit held on 12th December 2010 at HotelSoalteeCrownePlaza, Kathmandu, Nepal, which was hosted by the Institute of Chartered Accountants of Nepal. Mr. Surendra Pandey, Hon’ble Finance Minister, Government of Nepal was the Chief Guest at the occasion. The event was a grand success as around 350 participants from SAARC region attended the event.

 

           

 

9.         President’s participation in international meetings

 

9.1             Confederation of Asian & Pacific Accountants (CAPA) invited SAFA President to the Board meeting of CAPA held at Wellington, New Zealand on 19th May 2010 wherein SAFA President Mr. Komal Chitracar  made a presentation to explain about SAFA and its activities. He also discussed the possible areas of cooperation between CAPA and SAFA. CAPA Board has agreed to invite SAFA President in the future meetings of CAPA and to inform the areas where the two organizations can work together. SAFA Board also attended the CAPA Board meeting held at Kuala Lumpur, Malaysia on 7th December 2010.

 

 

 

10.      SAFA Projects, Studies and Publications

 

 

10.1         Study on Auditing Standards vis-à-vis International Standards on Auditing (ISAs) & other IFAC Pronouncements and Standard setting Process- A comparative Analysis has been updated till 30th May 2010. The book was released at the occasion of Regional Standard Setters Conference held on 30th November and 1st December 2010 at New Delhi, India.

 

10.2         Study on Accounting Standards vis-à-vis IAS/IFRS & Standard Setting Process- A Comparative Analysis has been updated till 30th May 2010. The book was released at the occasion of Regional Standard Setters Conference held on 30th November and 1st December 2010 at New Delhi, India.

 

10.3         Model Quality Control Framework for SAFA member bodies has been prepared based on the comparative study on Quality Control Framework prevailing in SAFA member bodies. The draft document is under consideration of the Committee on Quality control.

 

10.4         A white paper on the ‘Issues and Challenges for SMPs/SMEs in SAARC Region’ has been prepared. The document is under consideration of the Small and Medium Practices Committee.

 

10.5         A comparative study of Fiscal and Tariff Regimes in SAARC countries is under preparation by the Committee on Harmonization of Fiscal and Tariff Regimes in SAFA region.

 

10.6         A comparative study on set up of government accounting and the current status of accrual accounting in SAARC countries is being prepared by the Committee on Governmental and Public Sector Enterprises Accounting.

 

 

10.7         The other on going projects includes:-

 

  • Model curriculum for Cost & Management Accountancy bodies in SAARC Region
  • Revision of evaluation criteria for SAFA Best Presented Accounts Awards

 

 

11.      Representation on Outside Professional Accountancy Bodies

 

11.1         Mr. Amarjit Chopra, President ICAI and SAFA Board Member has been nominated on the Professional Accountancy Organization Development Committee of International Federation of Accountants (IFAC) for a term of 3 years from January 2011 to 31st December 2013.

 

11.2         Mr. A.N. Raman, Vice President SAFA is a member of Professional Accountants in Business (PAIB) Committee of International Federation of Accountants (IFAC) for a term of 3 years from January 2010 to 31st December 2012.

 

11.3         Mr. Reyaz Mihulur, Past President ICA Sri Lanka and Chairman, SAFA Committee on Accounting & Auditing Standards is a member of Standard Advisory Council (SAC) of International Accounting Standards Board (IASB) as SAFA representative.

 

12.      Forthcoming Events

 

12.1         The 72nd SAFA Assembly meeting is scheduled to be held on 9th January 2011 at Chennai India.