A Chartered Accountant gains almost all his skills during his articleship training. Three (now two) grueling years of accounting, auditing, and filing tax returns.
It is here where a student transforms from a carefree child to a prudent professional.
@AarihantAaryan
Earlier: 'DMart will fail because of Zepto.'
Now: 'Dominos will fail because of La Pinos.'
Make BS predictions. Use smart mumbo jumbo. Go viral.
That's the playbook to amplify your Twitter reach :)
'Finance' is only theoretically taught in the curriculum of Chartered Accountancy.
Fresher CAs have no hands-on skills at Corporate Finance or Valuations or Credit Rating or Portfolio Management. They can't really read Annual Reports and build and an Investment Thesis.
- How many CAs have built a real life Discounted Cash Flow model?
- How many CAs have read Annual Reports of Companies to build an Investment Thesis?
- How many CAs have worked on an actual M&A Deal?
And that's what the problem really is.
Chartered Accountants have been trained to be Compliance Warriors. And the Compliance Industry frankly just doesn’t pay as much as the Consulting or Finance Industry.
ICAI's guidelines mandate that a student can undergo articleship training only in a Firm of Chartered Accountants.
This is a win-win arrangement for both - the Firm & the Student. The Student gets 'hands on learning' and the Firm gets 'low cost staff'.
Second proposed solution:
Make two papers mandatory at all levels of Chartered Accountancy curriculum -
- English Communication & Sales.
- Critical Thinking / Logical & Analytical Reasoning.
@rohini_sgh
Everyone pays Tax is a false statement.
80% of people in India do not pay Tax - Be it direct or indirect.
Basic necessities are always exempt. In rural areas 95% do not pay any tax
My proposed solution:
Allow students to undergo articleship training in any Company -
- Whether Listed or Private
- Whether Banking or Manufacturing
- Whether Global or Regional.
And this is why, the Finance Industry is dominated by MBAs.
IIM Grads get paid thrice as much as CAs because they have practical training on the things a CA only theoretically learns.
During articleship, a Student learns all the hands-on skills that enable him to become a Practicing Professional.
At the end of these three years, a CA is well versed with taxation laws & compliance requirements, and can audit whatever you throw in front of him.
Those that join the BigFours, usually try for coveted roles in Management Consulting or Investment Banking.
Those who fail to land Consulting or IB Jobs, settle for Tax Consulting or Stat Audits.
Let the Student decide whether he wants to pursue articleship in a CA Firm or a Company.
Those students who are naturally inclined towards Practice will choose a to work in a CA Firm.
Others shall be free to work in any other industry of their choice.
Investment Banking is essentially a Sales Job. An I-Banker goes around Investors pitching them various financial products.
And thus, Sales & Communication as a skill becomes of absolute importance when working in IB.
In Management Consulting, there is no well-defined set of variables.
A problem may prop up from anywhere and a Consultant needs to critically think & come-up with a solution to the same.
Critical Thinking is a skill that can be learnt.
Secondly, English is another area of hinderance.
The only training for English or Communication is provided during the 15 day OT / GMCS / AICITSS courses.
There is no special emphasis on Verbal or Written Communication. No training whatsoever in Sales.
Thirdly, CAs are not problem solvers by nature.
As CAs are trained in Auditing & Tax Compliance, they can work only within a well-defined framework of laws / rules & verify compliance to the said rules.
But that's where the problem starts:
Through articleship in a CA Firm, the Student learns whatever is required to run a CA Firm. He learns Audit & Return Filing - core products of a CA Firm.
All of these factors:
- No practical training in Finance / Consulting.
- Poor sales & communication skills.
- Lack of problem solving skills.
play a role in a competitive job market.
Thus, when applying for jobs in the Finance Industry, Chartered Accountants are considered absolute freshers.
They need to be trained & mentored for a year or two before they can start adding value.
Moreover, a huge chunk of students who fail to qualify as a CA - and work as Semi-Qualified Professionals - shall get better work opportunities as they shall too have hands on skills & experience of working in an actual company.
@theryanking
Brutal.
Even in the Indian startup scenario, Sequoia was involved in ousting of Rahul Yadav of & Ashneer Grover of BharatPay.
And their modus operandi was similar too: Try & recruit early team, flag off governance issues, get the BoD against the CEO etc.
The second order effect of these solutions - lack of availability of cheap labor to CA Firms - will prod them to raise prices of their services - thus improving the economics of the Compliance Industry as well.
@dmuthuk
I don't impose my moral standards on anyone else. It is confined to 'me & mine'.
Personally, I don't consume meat or tobacco or liquor. And I don't think I'll ever invest in these, so called 'sin stocks'.
But will I thrust my morality into anyone's face? Never.
Q: Which is the most expensive domain ever bought in India ?
A:
Indian Govt paid 4200 Cr only for
#domain
as
#incometaxnewportal
is totally non-functional
@penguica
Well, this happened with me too.
Had a friend in college. I used to give him a lot of unsolicited advice regarding career & family. And he would do the exact opposite.
He hated me for having his best interests at heart. I never figured out why.
A Regulatory Surveillance Regime?
Take a step back. Reflect upon the regulatory / compliance scenario unfolding in India right now.
Do you get an uneasy sense of being cornered by the government?
Read On: 🧵
I'm literally at a cousin's engagement, trying to solve a HUGE mess created by an inefficient accountant, & the MD of that co is least bothered by this all.
In light of the order by Hon'ble High Court, the students stand vindicated.
The Institute must render an unconditional apology to all of these 70 students, restore their results & impose fines on each & every officer involved with this misdeed.
Exam Comtt has canceled exams of around 70 students appeared in Jan21 on the allegations of sending mails to centers, passing degoratory remark on social media against council & raising their voice in public.I request President
@JambusariaNihar
to review the issue being too harsh
@mehulshahca
#DidYouKnow
:
When you make a profit, you pay 30% of that to the Govt.
So when you make a loss, the Govt pays you money.
Believe me, I'm a CA :)
@abhishekrajaram
Absolutely sir.
I have also not used the prefix till now but following your footsteps, I have also added the prefix to my name, and I will write whatever I want to write on any Social-Media platform.
To hell with the gag order!
2/35
Revenue has been growing at declining pace.
Revenue CAGR since:
~10 yrs - 8%
~5 yrs - 5%
~3 yrs - 4%
~1 yr - 2%
Near term growth is disappointing.
9/35
Cumulative CFO of last 10 years: 96.9 thousand crores
Cumulative PAT of last 10 years: 96.2 thousand crores
Cash conversion ratio is a wonderful 101%
@rohini_sgh
Everyone pays Tax is a false statement.
80% of people in India do not pay Tax - Be it direct or indirect.
Basic necessities are always exempt. In rural areas 95% do not pay any tax
@CAamanmittal
I once asked an interviewee:
'I go to an ATM & withdraw cash from my business's current account. What would be the entry?'
His response:
Bank Current A/c Dr
To ATM A/c
And he wanted a salary of 35K because he was 'experienced'.
🤦
If you start with 1 lakh rupees and make 1000% per annum, in 10 years you'll be worth 10 times the nominal GDP of India.
@sahneydeepak
sir, please share the tips with me also :)
@i_pranavmehta
Bro got into IIT & Microsoft, then built 6 packs abs & a coding community; and has tens of thousands of people following across social media, and still says 'I haven't achieved a lot in life yet'.
Genuinely inspired.
@taxologyin
Our society respects money, power & status. Not knowledge, character and hardwork.
This is rooted deep in the Indian society. Very hard to change.
@SaadJamal4786
@AxisBank
@AxisBankSupport
@RBIsays
@nsitharaman
@startupindia
Thank you for writing this thread Saad.
I'm going to close my Axis bank account right away. Starting up is tough. No founder deserves to go through such a bureaucratic mess.
In case you need a bridge loan or some temporary funds, I can help you arrange the same.
6/14 And that's not it! If you get a little bigger, the government mandates you to spend 2% of your profits as 'Corporate Social Responsibility'. The worst part: you don't even get tax deduction of the CSR Expenditure.
@TilotamaG
To say that "80% of India doesn't pay any taxes - direct or indirect" is an utterly obnoxious statement.
Seasoned tax professionals are not expected to be ignorant to this extent.
Hence the statement :)
We're Hiring!
SRD Legal is a Law Firm based out of Mulund, Mumbai, specializing in Tax Consulting & Litigation under GST, & Income Tax laws.
We're hiring for the position of Legal Associate, Audit Associate, & Tax Executive.
@naval
I have unfollowed most of the 'motivational twitter' that's trying to sell something here.
Instead, I have started following entrepreneurs.
Much, much peaceful.
That's it. Thanks for reading.
I have built a simple tool that helps you calculate your hourly discharge rate. Comment 'Interested' below & I'll DM it to you.
1/35
This discussion is based on the numbers scraped from . It is purely a quantitative model.
Further, its merely initiation of a discussion, and should not be construed as any kind of recommendation.
1/14 The choice of vehicle to run your start up is an important one. A private limited company, in spite of being the most popular one, is painfully inefficient in taxes.
Idea: Buy companies with market cap lower than net cash higher on books.
Query looks like this: (Cash Equivalents - Debt)/Market Capitalization > 1
And here's the surprise: 65 companies pass this test! 6 of them have a market cap of above 100 crore!
@akhilpachori
"A certificate is attestation to factual accuracy of a statement."
When you certify that a company is 'proposing to raise total investment of X Rs.', you are attesting to a factual statement.
Nothing stops a Chartered Accountant from certifying this.
Don't we sign DRHPs?!
30/35
The dividend yield is 5.1% presently. Thus an investor who enters the stock now could make returns of 15.41% p.a. compounded.
That means the wealth could grow by five times in the next ten years. Note that this is the best case scenario.
• When the rich get handouts, it's called 'Incentives' or 'Bail outs'.
• When the poor get handouts, it's called 'Subsidy' or 'Freebies'.
Vocabulary dictates discourse.
Discourse dictates policy.
Policy dictates life.
To everyone making fun of Parag Agrawal for getting fired as Twitter's CEO, he just made Forty-Two Million Dollars.
That's over 300 Crores: In. One. Single. Day!
22/35
My Method:
~ Forecast sales using historical average.
~ Apply EBITDA margins to reach EBITDA figure
~ Apply Assets Turnover ratio to find Capex
~ Deduct Depreciation from FA requirement
~ Deduct average interest paid.
We arrive at profit before tax.
34/35
I view a business as a cash generating machinery.
From a purely quantitative perspective, the fundamentals are solid and the pricing is fair. This could be an ideal bet for a conservative investor.
No recommendations.
However, most freshly qualified Chartered Accountants don’t wish to join a CA Firm. Starting their own Independent Practice is only a distant dream.
The first choice of most of the fresher CAs is to work in the Industry - mainly BFSI or Manufacturing.