During the recent brainstorming session, how to scale Indian accounting, audit and consulting firms to compete with the world giants, the Nangi Rakesh, a managerial partner in Nangia & Co, in an interview with BT says it is the need for an hour and will help Indian firms develop and sing. Edited excerpts:
The Government and ICAI are working on plans to scale accounting, auditing and consulting firms. Do Indian firms have the opportunity to compete with world accounting firms and large firms?
This is not a question whether we have the ability or not. This is the need for an hour. The government thinking is that India should be independent and independent of any other country, whether in production or services. This is the genesis of Atmanirbhar Bharata. We have already achieved independence in several sectors. Our IT sector is a matter when we have become one of the largest in the last two decades. India also reached independence in sectors such as defense, space and nuclear, which were slowly opened on what used to be completely dependent on global companies. Even in semiconductors, India makes huge success. I will give you a classic example of my profession. The government has opened the BFSI space for four non -Big companies. All CA companies that the decent dimensions saw the jump in their practice. The government has not done much, but only liberalized some provisions. This is a slow, gradual process, people and businesses should get used to it. There should be no violations for the economy. The government gives a message that we will continue to open.
Question: What are the measures necessary for further potential and scale of Indian firms?
It is about opening the economy. The government was very clear in moving in this direction for convenience of doing business without causing any interruption. It is also fair for CA firms and helps them grow. We do not compare ourselves to large firms that have existed for over 100 years and have a lot of capital, network and talents. But when the government opens the provisions in the gradual stages, it helps to make our domestic firms more self-sufficient and independent without any violations. I will give some examples. For example, why can’t we have joint audits for more companies? In addition to the large four, there will be another 50 to 100 domestic firms to compete. They will receive equal conditions. They have competent teams and they will be able to meet demand. The market has a clear gap in several services that these companies can fill. Medium -sized BFSI spaces work well in the BFSI space, whether it is a bank audit or insurance companies. All these companies have received very good opportunities for the service, and they all are well. The government may consider opening the sector gradually, in stages, and, in the end, two to three years it can open the sector completely. Customer pleasure level is very high.
Amendments to the Law on Companies consider more provisions such as joint audits …
Yes, one of the provisions is that a joint audit should not be limited to several firms and must be open. I will not be surprised if they follow the BFSI model and open it. My firm is a classic example in the BFSI sector. The level of customer satisfaction is very high, despite the previous problems that there will be no good services or will not be professional enough. Indian CA firms have knowledge and experience of customer service in the sector.
Indian auditing and advisory firms are usually family and are usually proud of their heritage and line. Will they be willing to unite and go big?
It’s about getting maturity, and I think this is going on now. There is a certain hesitation, but when the door opens, it can lead to great opportunities. The nature of the business is changing today, and Indian CA firms should also develop.
What are your own areas in terms of expanding and enlargement of potential?
Nangia & Co LLP was created in 1984 and has experience on taxation, audit and confidence, merger and acquisitions, assessments, corporate financial consultations, GST, cybersecurity, stability, judicial examination and state consultations, health care, counseling. We are a reasonable aggressive firm. There are always problems for a smaller Indian firm in terms of capitalization and talents. We have a good talent. We have some cultural ethnic decision-making, faster turn and more agility. I create my own space in the profession.
