Role of chartered accountants vital in evaluation of projects: CA Shah

Business Bureau :

SPREADING the knowledge and practical experience of project finance at the full-day seminar held here at ICAI Bhawan, CA Julfesh Shah, Member of Committee on Management Accounting, ICAI, New Delhi, said finance is the like ‘blood’ of any business organisation and the role of CAs is vital in evaluation of projects at all stages. He was chief guest and speaker of the seminar on Project Finance organised by the Nagpur Branch of WIRC of ICAI. He further said that the CAs are not only assisting in identification of projects but they also carry out technical, financial and commercial feasibility of the projects.

He further added that CAs are masters in preparation of detailed project report and guide in selection of optimal capital structure. He highlighted the role of CAs in the analytical procedures, appraisal of financial projections and selection of best sources of finance. He guided the participants on the preparation of project report and important aspects with respects to projects such as estimation of profitability, projected balance sheet, viability of projects and economic benefits.

Besides, he guided them on details to be furnished while submitting application on financial assistance and project appraisal covering the determination of project cost. He discussed the schemes of finance. “All these work is possible only with the support of CAs and during the implementation of the project CA act as a Lender Independent Engineer,” he said. Shah further appreciated the innovative programmes organised and conducted by the Nagpur Branch of ICAI for the benefits of members in practice as well as in industry. He wished the branch, for the best branch award at India level like achieved in earlier years. He appealed the participants to adopt the new things and to use the latest technologies for easy of doing project financing work.

Earlier, Chairman of Nagpur Branch of ICAI, CA Suren Duragkar said ,“ now a days as merging has happened with nationalised banks in the country, we have to equip ourselves with latest guidelines and procedures of all banks.” He further stated that, we should find opportunities with the changes taking place in banking sector. Duragkar said that the finance is must for every business and only CAs can plan adequately for the finance. He further said, the project financing is the core area of our practice, through which we help the trade and industry to establish their business smoothly. He urged the members to take maximum benefit of the knowledge and experience of the speakers.

Shah as speaker deliberated in detail on essential and practical aspects of project finance and shared his practical knowledge he gained in practicing in that area. CA Sitaraman Iyer, another faculty, shared his views on assessment of term loan and practical aspects. He guided the delegates about the actual scenario at ground level and cleared the doubts of the participants present over there. CA .Sagar Mitkary, speaker, guided the delegates on assessment of working capital and CMA aspects. He expressed his views on calculation and proper use of working capital and preparation of CMA for the cash credit limits. Further, he provided the solutions to various questions raised by the participants.

The inaugural event and first technical session was coordinated by Managing Committee Member CA Harish Rangwani and the second technical session was coordinated by Managing Committee Member CA Akshay Gulhane. The event proved beneficial for more than 200 CA members present on the occasion. Speakers were formally welcomed by CA Kirit Kalyani, Vice Chairman and CA Jiten Saglani, Treasurer. The vote of thanks was presented by Secretary CA Saket Bagdia. Prominently present on the occasion were CA Sanjay Agrawal, WICASA Chairman, CA Avinash Solao, CA Sharad Pimpalwar, CA N Varadarajan, CA Ram Bonde and others.