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At the Helm
Members of the council of ICAI
CA. Ranjeet Kumar Agarwal CA. Charanjot Singh Nanda

President Vice-President
Board of Studies, ICAI
CA. (Dr) Rajkumar S Adukia CA. Sridhar Muppala

Chairman Vice-chairman
Conference Director
CA. Dayaniwas Sharma

Chairman, AI in ICAI
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Members of the Regional Council of SIRC of ICAI
CA. Mandava Sunil Kumar CA. China Masthan Talakayal CA. Naresh Chandra Gelli CA. Chengal Reddy R
SICASA CHAIRMAN, SIRC Past chairman, SIRC Regional Council Member, SIRC Regional Counsil Member,SIRC
Managing Committee Members of Hyderabad Branch of SIRC of ICAI
CA. Ravi Shankar Reddy P CA. Chinna Sita Rami Reddy A CA. Girdhari Lal Toshniwal
Chairman Vice Chairman Secretary
CA. Saran Kumar U CA. Deepak Ladda CA. Sathish Kumar Myalavarapu
Treasurer & SICASA Chairman Immediate Past Chairman
SICASA Co Chairman
CA. Rama Rao Karumanchi

CA. Rajambal MS CA. Chandra Babu M
Member Member Member
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TEAM SICASA
CA. Deepak Ladda CA. Saran Kumar U

SICASA Chairman SICASA Co chairman
T. Shashi Kiran Reddy K. Dasaradh Kumar MD. Mustafa Raza

Vice Chairman Secretary Treasurer
P.Abhinay P. Vennela Lakshitha Jain T. Vamshi

Executive Member Executive Member Executive Member CO-OPT Member
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Programme Schedule
Day1
08:45AM-09:45AM Registration and Networking
09:45AM-10:45AM Inaugural Session
10:45AM-11:30AM Special Session: I
Interaction Board of Studies, ICAI
11:30AM-11:45AM Tea Break
11:45AM -01:00PM Technical Session I:
Topic: Auditing
1. Environmental. Social and Governance (ESG)
Considerations in Audits
2. The Audit Evidence & Audit Trail in the Digital Era
3. Audit of Small and Medium Companies
01:00PM-02:00PM Lunch Break

02:00PM-02:45PM
Motivational Session: I
Why DG of GOI Became CA Student.
02:45PM-04:00PM Technical Session: II
Topic: Taxation
1. Taxation of e-Commerce Suppliers
2. Old Tax Regime Vs New Tax Regime – Advise
Smartly
3. GST on Gaming industry – The Pandora of Issues
04:00PM-04:15PM Tea Break

04:15PM-05:00PM Special Session II
Unleashing Your Inner Potential
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Day 2
09:30AM-10:00AM Student Kit Distribution and Networking
10:00AM-10:45AM Motivational Session: II

Find Your Strength Within Yourself
10:45AM-12:00AM Technical Session: III
Topic: Startup Sphere and the Role of CharteredAccountants
in IT
1. Chartered Accountants: Navigating the
StartupEcosystem
2. Startup – Doors to Entrepreneurial Journey for CA
3. Funding the future: How CA’s Bridge the Gap Between

Startups and Investors
12:15PM-01:00PM Special Session: III

Role of AI in Student Life
01:00PM-02:00PM Lunch Break
02:00PM-02:45PM Motivational Session: III
Igniting Mind and Passion
02:45PM-04:00PM Technical Session: IV
Topic: AI Powered Audits
1. Power of AI – Data Extraction and Analysis for
Efficient Audit Procedures
2. Upskilling the Workforce – Equipping Auditors for the
AI – Driven Audit Landscape
3. Generative AI
04:15PM-05:00PM Motivational Session: IV
Expectation of Corporates from Chartered Accountants
05:00PM-05:30PM Valedictory Session
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About ICAI
The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act
of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for
regulation and development of the profession of Chartered Accountants in the country. The
Institute, functions under the administrative control of the Ministry of Corporate Affairs,
Government of India. The ICAI is the largest professional body of Chartered Accountants in the
world, with a strong tradition of service to the Indian economy in public interest.
The affairs of the ICAI are managed by a Council in accordance with the provisions of the
Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council
constitutes of 40 members of whom 32 are elected by the Chartered Accountants and remaining
8 are nominated by the Central Government generally representing the Comptroller and Auditor
General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs,
Ministry of Finance and other stakeholders.
Over a period of time the ICAI has achieved recognition as a premier accounting body not only
in the country but also globally, for maintaining highest standards in technical, ethical areas and
for sustaining stringent examination and education standards. Since 1949, the profession has
grown leaps and bounds in terms of members and student base.
 Regulate the profession of Accountancy

 Education and Examination of Chartered Accountancy Course
 Continuing Professional Education of Members
 Conducting Post Qualification Courses
 Formulation of Accounting Standards
 Prescription of Standard Auditing Procedures
 Laying down Ethical Standards
 Monitoring Quality through Peer Review
 Ensuring Standards of performance of Members
 Exercise Disciplinary Jurisdiction
 Financial Reporting Review
 Input on Policy matters to Government.
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About “ANVESHANA- The Quest of Knowledge”
The National Conference of CA students is an esteemed event for our Institute, held annually with great
pride. Its primary aim is to unite the accounting student community from all corners of the nation. This
year, the ICAI is delighted to organize the National Conference on July 11th and 12th, 2024, at the
prestigious Shilpakala Vedika in the vibrant Hitech City of Hyderabad, India. The theme for this
remarkable occasion is “ANVESHANA – The Quest of knowledge”. Over the course of two days, this
conference promises to be a magnificent gathering of accounting students, serving as a catalyst for
innovative thinking and expanding their intellectual horizons. By bringing together bright minds from
various backgrounds, we aim to foster a rich exchange of ideas and experiences, ultimately enriching
theknowledge and perspectives of all participants.
The event will feature a diverse range of engaging sessions, including thought-provoking keynote
speeches, interactive workshops, and insightful panel discussions. Esteemed industry experts and
renowned academicians will grace the stage, sharing their invaluable insights and expertise.
Attendees will have the opportunity to learn from the best in the field, gaining practical knowledge and
skills that will undoubtedly 2 their future careers.
Moreover, the National Conference will provide a platform for networking and building lasting
connections. Students will have the chance to interact with their peers, exchange ideas, and forge
meaningful relationships that may prove invaluable in their professional journeys. The conference will
also showcase the latest advancements and trends in the accounting industry, offering a glimpse into
thefuture of this dynamic field.
We invite all accounting students from across the nation to join us at this prestigious event. Together,
letus celebrate the power of knowledge and embark on a transformative journey of growth and
enlightenment. Mark your calendars for July 11th and 12th, 2024, and prepare to be inspired at the
National Conference of CA students in Hyderabad, India.
The Anveshana National Conference for Chartered Accountant students appears to be a comprehensive
event designed to enhance the knowledge, skills, and motivation of participants in various areas
relevantto the profession. Here's a breakdown based on the sessions mentioned:
Technical Sessions:
1. Auditing: This session likely covers topics related to
 environmental social and governance considerations in audit,

 audit evidence and audit trail in the digital era,
 audit of small and medium companies
2. Taxation: Focuses on taxation of
 e-commerce suppliers,
 old tax regime vs new tax regime,
 GST on gaming industry.
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3. Startup Sphere and Role of CA in IT: Explores the role of Chartered Accountants in supporting
startups, understanding their financial needs, regulatory compliance, and leveraging technology
infinancial management.
 Chartered Accountants: Navigating The Startup Ecosystem

 Stratup – Doors to Entrepreneurial Journey for CA
 Funding the future: How CA’s Bridge the Gap Between Startups and Investors
4. AI Powered Audits: Discusses the integration of artificial intelligence in audit processes, its
benefits, challenges, and future prospects in auditing.
 Power of AI – Data Extraction and Analysis for Efficient Audit Procedures

 Upskilling the Workforce – Equipping Auditors for the AI – Driven Audit Landscape
 Generative AI
Motivational Sessions
1. Why DG of GOI Became CA Student: Likely involves a keynote or talk by a distinguished guest who is
a Chartered Accountant and currently holds a prominent position in the Government of India, sharing
insights into their career journey and the value of being a CA.
2. Find Your Strength Within Yourself: A session aimed at personal development and self-discovery,
helping participants identify and leverage their strengths for career success.
3. Igniting Mind and Passion: Focuses on inspiring and motivating participants to pursue their goals
withenthusiasm and dedication.
4. Expectation of Corporates from CA: Provides insights into the expectations of corporate
employersfrom Chartered Accountants, including skills, competencies, and professionalism.
Conference Objectives:
- Skill Enhancement: To improve technical knowledge in auditing, taxation, and the role of CAs in
emerging sectors like startups and AI-powered audits.
- Motivational Boost: To inspire participants through motivational sessions from accomplished speakers.
- Industry Insight: To provide insights into corporate expectations and the evolving role of CAs in
various sectors.
Overall, the “Anveshana” National Conference aims to equip Chartered Accountant students with both
technical expertise and motivational insights necessary for their professional growth and success in the
dynamic field of accountancy and finance.
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Message from Dignitaries:
CA. Ranjeet Kumar Agarwal

Hon’ble President, ICAI
Dear Students,
It gives me immense pleasure to extend my warmest greetings to all the participants of the National
Conference of CA Students organized by the Board of Studies of ICAI and hosted by
Hyderabad Branch of Southern India Regional Council (SIRC) of ICAI along with Hyderabad
Branch of Southern India Chartered Accountants Students Association (SICASA)of ICAI on
11th and 12th July 2024 at Hyderabad.
The theme of this conference “ANVESHANA- The Quest of Knowledge” on 11th& 12th July, 2024
promises to be an enriching experience. As the word ‘Anveshana’ means ‘search’ or ‘exploration’,
this holds profound significance in your lives. As aspiring Chartered Accountants, you have
embarked on a tough but rewarding journey and as CA students, remember you are onthe journey
of exploration, exploration of your true potential and exploration of the different avenues. As
students it is very necessary that you navigate your paths and charter the way ahead.
On this context, this National Conference of CA Students provides a platform to explore

contemporary topics, exchange ideas, and learn from eminent professionals and experts in the
industry. The carefully curated sessions, interactive workshops, and engaging panel discussions will
broaden your horizons, enhance your technical acumen, and foster a holistic understanding of the
diverse facets of the profession.
I would also like to mention that for the current year we have Vision ‘DRISHTI’ and each letter ofthe
word signifies for the different initiatives to be carried out in this year. Where ‘R’ stands for ‘Research’
and ‘I’ for ‘Integrity’. The need is to augment the research landscape in the country. Further to my
beloved students I would like to urge to always be a man of integrity in your futuretimes as integrity
is an invisible trait which is a great asset.
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I compliment CA. (Dr.) Rajkumar S. Adukia, Chairman, CA. Sridhar Muppala, Vice-Chairman,
other members of the Board of Studies and Managing Committee Members of Hyderabad
Branch (SIRC) of ICAI for all their efforts in putting together this remarkable event. Their
commitment to fostering the growth and development of young minds is truly commendable.
I extend my best wishes for a successful and fulfilling Conference.
With regards,
CA. Ranjeet Kumar Agarwal
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CA. Charanjot Singh Nanda
Hon’ble Vice – President, ICAI
Dear Students,
Chartered Accountants, the epitome of expertise in business leadership and advisory roles,
are called upon to evolve into “Future Ready Professionals”, shaping the future with their
foresight and adaptability.
A comprehensive education system equips students with a strong academic grounding,

facilitating success in both their professional and personal endeavours. Leveraging its
effective and diverse educational philosophy, the Institute of Chartered Accountants of India
(ICAI) aims to empower its students to effectively confront the challenges of an ever-evolving
world. Regular guidance and consistent support undoubtedly aid students in honing their
skills.
With the introduction of New Scheme of Education and Training in July 2023, the
dynamics of the CA curriculum have significantly been altered. This innovative frameworkis
meticulously crafted to adapt to the changing landscape of the global economy and the
dynamic needs of the accountancy profession. Moreover, the emphasis on practical training,
coupled with flexible learning options and comprehensive mentorship, empowers students
to develop not only technical proficiency but also critical thinking, problem-solving, and
communication skills. As a result, the New Scheme of Education and Training not only
prepares students for the challenges of today but also for the opportunities of tomorrow,
shaping them into agile, forward-thinking professionals poised to make a meaningful impact
in the world of finance and accounting.
The Board of Studies of ICAI organises CA Student Conferences nationwide, offering

platforms for honing students' oratory and presentation abilities. Here, CA students have the
chance to showcase their papers on current professional themes and subjects. Additionally,
seminars, workshops, counselling sessions, and industrial visits serve as valuable tools for
enhancing their skill sets.
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I am pleased to note that Board of Studies is organising the “National
Conference of CA Students 2024” on 11th– 12th July, 2024 at Hyderabad.
The same is being hosted
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I am pleased to note that Board of Studies is organising the “National Conference of CA
Students 2024” on 11th– 12th July, 2024 at Hyderabad. The same is being hosted
Hyderabad Branch of SIRC of ICAI and Hyderabad Branch of SICASA of ICAI. The
theme of the conference is “ANVESHANA – The Quest of Knowledge”” which truly
signifies the importance of updating our capabilities and determined efforts towards success.
The student conferences offer a prime chance for networking and dynamic discussions on
modern aspects relevant to the profession. Furthermore, the selected topics ensure thorough
coverage of vital subject areas, enriched with the latest global advancements.
As aspiring members of this esteemed profession, your primary objective should be to grasp
theory and cultivate practical experience. The upcoming conference offers you a chance to
engage with professionals from both business and academia, updating your understanding
of significant global developments.
I extend my best wishes for the success of the conference and compliment Board of Studies,
Hyderabad Branch of SIRC and the Southern India Regional Council Students
Association of our Institute for hosting the conference.
Trust of the stakeholders and society plays a very important role in the accounting
profession. I wish to share with you that this year, your alma mater shall be completing 75
years of its existence.
Students being the future of the profession, I urge you to contribute and participate actively
towards the growth journey of the profession.
CA. Charanjot Singh Nanda

Vice President, ICAI
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CA. (Dr) Rajkumar S Adukia
Chairman, SSEB (BOS)
Dear Students,
I am delighted to invite you to the National Conference of CA Students at Hyderabad on 11th & 12th July2024.
This conference, themed “ANVESHANA – The Quest of Knowledge” promises to be an enrichingexperience that
will significantly benefit your professional growth and personal development.
The Conference will bring together distinguished speakers, accomplished professionals, and fellow students from
various backgrounds, creating an exceptional platform for learning, networking, and idea-sharing.
Attending this conference offers a multitude of benefits. Firstly, the conference will enhance yourknowledge through
a wide array of topics presented by industry experts and thought leaders. These sessions are designed to broaden
your understanding and provide you with insights into the latest developments in the field of accountancy and
finance.
Sessions are crafted to provide insights into the latest developments in accountancy and finance. There will be four
technical sessions on “Auditing”, “Direct Taxation”, “Startup Sphere and the Role of Chartered Accountants in IT”
and “AI – Powered Audits”. Additionally, special and motivational sessionssuch as “Why DG of GOI became CA
Student”, “CA 21 Years of Age”, “Becoming L3 – Life Longer Learner”, “Role of AI in Student Life”, “Igniting
Mind and Passion” and “CA Protecting – National Boundaries” will offer unique perspectives and strategies for
success.”
Furthermore, attending the conference presents exceptional networking prospects. It offers you the invaluable
opportunity to engage with fellow students, seasoned professionals, and expert speakers alike. Cultivating a robust
professional network is pivotal in your career trajectory, and this conference serves as an ideal setting to initiate and
fortify these connections. Building meaningful relationships with peers and industry leaders can open doors to
collaborative opportunities, mentorship, and invaluable insights that can significantly enhance your career growth
and development.
Hearing from successful chartered accountants and leaders will also provide you with inspiration and motivation.
Their stories of perseverance and success will inspire and motivate you to achieve your own professional goals.
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In addition to the technical knowledge and networking opportunities, attending the conference will helpyou develop
crucial soft skills such as communication, teamwork, and problem-solving. By interacting with industry experts,
participating in discussions, and asking questions, you will enhance your ability tocommunicate effectively. This is
critical not only for presentations and meetings but also for day-to-day professional interactions.
Many conference activities will require you to work collaboratively with others. This will help you understand the
dynamics of team collaboration, improve your ability to work as part of a team, and appreciate diverse perspectives.
Engaging with complex case studies, real-world problems, and industry challenges presented during thesessions will
sharpen your analytical and problem-solving skills. You will learn how to approach issues methodically and develop
innovative solutions, which is invaluable in the accounting profession.
Even if you do not get the opportunity to present papers at the conference, there is no need to be upset. Your
participation is still incredibly valuable. By actively engaging in the sessions, you can ask intelligentand thoughtful
questions that contribute to the discussion and enhance your learning experience.
This active involvement will help you feel relevant and involved, ensuring that you gain maximum benefit from the
sessions. It is a great way to demonstrate your curiosity and eagerness to learn, and it can also make a positive
impression on the speakers and other attendees. Additionally, the discussions generated by your questions can
provide deeper insights into the topics covered, benefiting all participants.
Explore the vibrant culture and history of the dynamic city of Hyderabad. As a major center for technology,
commerce, and education, Hyderabad provides a perfect backdrop for our National Conference of CA Students.
Immerse yourself in the city's rich heritage, which will broaden your horizons and offer a refreshing breakfrom your
academic routine. Hyderabad is renowned for its historical significance and cultural attractions, such as the iconic
Charminar, the majestic Golconda Fort, and the tranquil Hussain Sagar Lake. Exploring these sites will give you a
well-rounded and enriching experience during your stay. We hope you take this opportunity to discover the unique
charm of Hyderabad while enhancing your professional knowledge and skills at the conference.
The participation fee for these conferences is very reasonable, making it accessible for students to gain such a
comprehensive learning experience without a significant financial burden. I understand that cost can be a concern
for students, so we have ensured that the fees are kept low to encourage maximum participation. This affordability
allows you to invest in your professional development and take advantage of the rich learning and networking
opportunities provided by the conference.
The theme of “ANVESHANA – The Quest of Knowledge” underscores our dedication to equipping you with the
tools needed to face the challenges and seize the opportunities that lie ahead. By participating in this conference, you
will enhance your ability to navigate your career path and make meaningful contributions to both the profession and
society.
This theme emphasizes the importance of seeking intellectual growth and shaping future leaders. As aspiring
Chartered Accountants, embracing these principles will empower you to tackle complex problems, innovate
solutions, and excel in your roles. This conference will inspire you to delve deeply
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into your studies, understand the underlying principles, and apply them effectively in real-world scenarios, thereby
preparing you for the multifaceted challenges of the profession.
I am grateful to the Hyderabad Branch of SIRC & SICASA of ICAI for hosting this conference. Their dedication and
effort in organizing this event have made it possible for us to come together and share thisvaluable experience.
I encourage you to take full advantage of this unique opportunity. Your active participation will not onlyenhance
your knowledge and skills but also shape your future as a competent and confident chartered accountant.
I look forward to your enthusiastic participation and to welcoming you to Hyderabad for an unforgettableexperience.
“हर दिन एक नया सबक िसखाता है ,

जो सीखता है , वही आगे बढ़ पाता है ।“
CA. (Dr) Rajkumar S Adukia

Chairman, Board of Studies
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CA. Sridhar Muppala
Vice-Chairman, SSEB (BOS)
Dear Esteemed Participants,
It is with great pleasure that I extend my warmest greetings to all the brilliant minds gathering at the National
Conference of CA Students, organized by the Board of Studies and hosted by the Hyderabad Branch of ICAI. This
conference, scheduled for the 11th and 12th of July 2024, promises to be a transformative experience for each of you.
The theme for this year's conference, "ANVESHANA – The Quest of Knowledge," would signify a dedicated pursuit
or exploration aimed at acquiring knowledge, understanding, or discoveries in a particular field or area of interest.
It implies a journey of exploration, investigation, and learning.
In the dynamic field of accountancy and finance, staying ahead requires more than just technical expertise; it
demands a holistic approach that encompasses wisdom, innovation, and a commitment to making a positive impact.
Throughout the conference, you will have the opportunity to engage with seasoned professionals, thought leaders,
and peers who share your passion for excellence. Take advantage of this unique platform to exchange ideas, gain
insights, and forge connections that will shape your future endeavours.
As the Vice Chairman of the Board of Studies, I am confident that this conference will inspire you to reach new
heights in your academic and professional pursuits. Embrace the knowledge shared, actively participate in
discussions, and seize the chance to build a network that will support you throughout your career.
I extend my sincere appreciation to the organizers and the Hyderabad Branch for their dedication in hosting this
event. Together, let us make " ANVESHANA – The Quest of Knowledge " a memorable and enriching experience for
all.
Wishing you an enlightening and remarkable conference.
Warm regards,
(CA. Sridhar Muppala)
Vice Chairman, Board of Studies
The Institute of Chartered Accountants of India (ICAI)
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Chairman of AI in ICAI
Dear Students,
It is gratifying to announce that the Board of Studies of ICAI is hosting a two-day National Conference for
CA Students titled “ANVESHANA-The Quest of Knowledge” on the 11th and 12th of July 2024 at Shilpakala
Vedika, Hyderabad. This prestigious event is being organized in association with the Hyderabadbranch of
the Southern India Regional Council (SIRC) and the Hyderabad Branch of the Southern India Chartered
Accountants Students Association (SICASA).
“ANVESHANA-The Quest of Knowledge” is more than just a conference; it is a unique forum where the
pursuit of knowledge and opportunities meet. This event celebrates the significance of knowledge, a
cornerstone for your future careers as Chartered Accountants.
Hyderabad has always been a hub for hosting both International and National CA Students Conferences,
attracting large numbers of students who benefit greatly from these events.
The event features meticulously planned sessions, motivational talks, and panel discussions designed to
expand your knowledge, sharpen your technical skills, and provide a comprehensive understanding of the
various aspects of the profession.
I am confident that this platform will offer an excellent opportunity for our student fraternity to meet,
interact, network, and share memorable moments of togetherness.
I extend my warm wishes for the success of the two-day National Conference for CA Students titled
“ANVESHANA-The Quest of Knowledge.”
Chairman, AI in ICAI
Students Skills Enrichment Board, (BOS- Operations) HYDERABAD
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CA. Deepak Ladda
Chairman, SICASA
Dear Future Chartered Accountants,
It gives me immense pleasure to invite you to the National Conference Anveshna, hosted by the Hyderabad
branch of ICAI and the Hyderabad branch of SICASA.
As the Chairman of SICASA, I, Deepak Ladda, warmly welcome you to this enriching event. This
conference is a golden opportunity for you to delve into a wealth of knowledge and gain valuable insights
from esteemed speakers and industry experts.
The topics are meticulously planned to ensure that they being they being the most relevant to students in
today’s world. The motivational and special session speakers are also versatile in their subjects.
It’s also an excellent platform to network with your peers, share ideas, and build lasting connections that
will support your professional journey.
I encourage each one of you to actively participate, learn, and make the most of this conference. Let’s come
together to explore new horizons and drive our profession forward. Looking forward to seeing you there!
Warm regards,
CA Deepak Ladda
SICASA Chairman
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CA. Ponugoti Ravi Sankara Reddy
Chairman, Hyderabad Branch of SIRC of ICAI
Dear CA Students,
I am pleased to invite you all for the two days National Conference of CA Students on 11 th and 12th July 2024, at Shipakala
Vedika, Hyderabad. The theme of this prestigious event is "ANVESHANA - THE QUEST OF KNOWLEDGE." This National
conference is organized by the Board of Studies of ICAI and hosted by Hyderabad Branch of SIRC jointly with Hyderabad
Branch of SICASA. This conference promises to be an exceptional platform for interaction and knowledge exchange among
future Chartered Accountants.
The primary objective of the conference is to enlighten and empower budding Chartered Accountants on pertinent topics such
as Auditing, Taxation, Startup sphere and the role of Chartered Accountants and AI Powered Audits. These discussions will be
led by esteemed chairpersons of the sessions, along with enthusiastic student speakers who will share their invaluable insights.
My special thanks to Sri Duddilla Sridhar Babu garu, Hon’ble Minister for Industries and IT, Telangana for accepting to be the
the Chief Guest for the conference. I thank Sri T Dilip garu, fielding coach of Indian Cricket Team for accepting to address and
inspire the CA students in the conference. I convey my thanks to all session chairmen and speakers of special and motivational
sessions.
In addition to technical sessions, the conference features special motivational sessions designed to inspire and empower CA
students. The selected topics not only address current scenarios but are also crucial for personal and professional growth in the
CA profession.
I am confident that as student delegates, you will seize this opportunity to enhance your skills, broaden your perspectives, and
enrich your knowledge for the advancement of our noble profession. The National Conference of CA Students is your chance to
learn, connect with peers, and foster personal growth.
On behalf of the Hyderabad Branch of SIRC of ICAI, I encourage all CA students to actively participate and benefit from this
enriching experience. My best wishes to all student delegates, volunteers and paper presenters and whole SICASA Team and I
hope the conference will be a resounding success. Let us join at "ANVESHANA - THE QUEST OF KNOWLEDGE" and makethis
event memorable for everyone involved.
Best wishes for your future endeavors.
Warm Regards,
CA Ponugoti Ravi Sankara Reddy

Chairman, Hyderabad Branch of SIRC of ICAI
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CA. Chinna Sita Rami Reddy A
Vice-Chairman, Hyderabad Branch of SIRC of ICAI
Dear Students,
I hope this message finds you all in good health and high spirits. I glad to be able to address the student
fraternity of the ICAI. I want to take a moment to remind each one of you of the amount of incredible
potential and spirit that resides within each of you.
This program “Anveshana” is a National Conference of CA Students. The world is evolving rapidly,
and you are the future leaders, innovators, and change-makers who will shape it.
This is a platform where the ICAI takes pride in showcasing the talent, ability and proficiencies of the CA
Student to the world. I’m elated that the students embrace this responsibility with confidence and
enthusiasm.
Throughout the journey as a CA student, we have so many academic milestones to achieve alongside the
continued articleship training. I encourage you to seek not only academic excellence but also personal
growth. Explore your passions, engage in extracurricular activities, and build lasting connections with
your fellow students. Remember that the bonds you build during your time here will be invaluable in your
journey ahead.
Your presence in this program is a statement of your dedication, hard work, and unwavering commitment
to your education and personal growth. It's not just about the knowledge you'll gain or the skills you'll
acquire, but the transformation you'll undergo as individuals.
Remember that challenges are opportunities always comes as camouflaged within each other’s, one
should to identify them. Every setback is a chance to learn, grow, and become even stronger.
Never forget the importance of balance. While education is a top priority, it's essential to take time for
self-care and relaxation. A well-rested mind is a more effective one, so make sure to prioritize your
physical and mental well-being.
I have complete faith in each and every one of you. Your potential is limitless, and I am waiting to the
incredible accomplishments you'll achieve during this program and beyond.
Wish you all the very best.
CA. Chinna Sita Rami Reddy A

Vice Chairman
Hyderabad branch of SIRC of ICAI
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CA. Girdhari Lal Toshniwal
Secretary, Hyderabad Branch of SIRC of ICAI
Dear Future Members of my esteemed profession,

I am delighted to announce that Hyderabad Branch of the Southern India Regional Council (SIRC) of The
Institute of Chartered Accountants of India (ICAI) jointly with the Hyderabad Branch of the Southern
Indian Chartered Accountant Students Association (SICASA), is hosting National Conference for CA
Students themed as “ANVESHANA: The Quest of Knowledge”. This event will illuminate the pearl city
of Hyderabad on the 11th and 12th of July 2024.
Our vision for this conference extends beyond mere networking; it is a hub where the next generation of
Chartered Accountants come together to REVISE, RE-ENGINEER REIMAGINE, and RECONSTRUCT the
contours of our profession. As the landscape of Accounting and Finance evolves, it is crucial for budding
CAs to stay at the forefront, understanding nuances and adapting to changing circumstances.
We eagerly anticipate participation of students across the Nation, fostering a diverse blend of thoughts,
experiences and insights. The carefully curated topics for discussion—ranging from Artificial Technology,
Indirect Taxes, Income Tax along with Special Secession students to motivate the students — will ignite
stimulating conversations and provide a comprehensive perspective on contemporary issues.
True to the spirit of “ANVESHANA,” The Quest of Knowledge, our commitment lies in facilitating a
transformative experience. We aim for every participant to embark on a journey of learning and discovery
emerging with a richer understanding by the conference’s conclusion.
We are honoured to welcome Hon’ble Shri Sridhar Babu Duddilla, Minister for Information Technology,
E&C, Industries & Commerce, Legislative Affairs, as our Chief Guest.
I take this opportunity to congratulate the Indian Cricket Team for their victory in the T-20 World Cup,
2024 and we are honoured to have amongst us Shri T. Dilip, Indian Cricket Team - Fielding Coach who
would address the students.
My heartfelt gratitude goes to our Managing Committee Colleagues and dedicated SICASA Team and
Volunteers, Paper Presenters, Participants and Esteemed Guests.
I hope the event not only educates but also inspires and shapes the future of our esteemed PROFESSION.
Be Happy – Keep Laughing! 🌟
22
CA.Saran Kumar U
Treasurer, Hyderabad branch of SIRC of ICAI
Dear Students,
I am excited to welcome you all to the National Conference of CA Students, organized by the Hyderabad Branch of
SIRC of ICAI, along with the Hyderabad Branch of the SICASA. Themed as "ANVESHANA – The Quest of
Knowledge" is happening in the dynamic city of Hyderabad on the 11th and 12th of July 2024.
This conference signifies a major milestone, gathering a blend of ideas, innovation, and a platform where future
leaders of the Chartered Accountancy profession meet to rethink, reshape, and redefine our field. Our profession is
at a crucial turning point and as the finance and accounting landscape changes, so must we.
This event is your opportunity to explore important topics like the Companies Act, the evolving role of technology in
CA practices and updates on Indirect Taxes and Income Tax. These discussions will be the cornerstone of your
careers. Sessions on AI's role in student life and AI-powered audits will illuminate the future of our profession and
the skills required to stay ahead. By immersing yourselves in these subjects, you will prepare to navigate and lead in
an ever-evolving world.
As participants in this conference, you are more than attendees, and also you are active contributors. Your ideas,
questions and insights will shape the discussions and outcomes of this event. Fully engage, challenge assumptions
and think critically. The future of our profession relies on your ability to innovate and adapt.
In the spirit of "ANVESHANA," meaning quest or exploration, we are committed to offering a transformative
experience for each participant. We hope that each of you embarks on a journey of profound learning and discovery,
enhancing your understanding and perspectives by the end of the conference.
Reflect on your journey in the pursuit of knowledge and excellence, even when faced with challenges. The quest for
knowledge has the power to transform lives and societies. Your resilience and determination should drive you to
pursue your goals tenaciously, no matter the obstacles.
I am deeply grateful to our hardworking team of Managing Committee Members, SICASA Committee Members,
SICASA Volunteers, Staff and our Distinguished Guests. Their steadfast support and significant contributions have
been crucial to bringing this event to life. To all the participants and collaborators, I offer a warm welcome. Let's
come together to create an event that not only imparts knowledge but also inspires and shapes the future of our noble
profession.
Trust in your potential, embrace the journey of learning, and let the spirit of ANVESHANA guide you. This is your
time to shine, to lead and to make a difference.
Warm regards,
CA Saran Kumar U
Treasurer, Hyderabad Branch of SIRC of ICAI
23
CA. Naresh Chandra Gelli
Member, SICASA Hyderabad
Dear CA Student
Hearty Welcome to the “ ANVESHANA – The Quest of Knowledge “ a 2 day National
Conference for CA Students.
I am excited to note that this 2 days national conference is being held in Shilpakala Vedika,
Hyderabad, which has held may conference and seminars for CA Students for more than 15
years.
A Student once he joins CA Course is in the course of becoming a professional and all the change
he sees from then to the time he actually becomes a CA is addition of skill, knowledge, dedication
and hard work. All these efforts results in becoming a CHARTERED ACCOUNTANT.
I would urge to student to ensure this foundation you invest now, will definitely help you in long
term career goals. The short term goals can be updated by attending the seminars and
conferences regularly as the environment is changing fast
I am surprised to see the topics are in tune with trend of market requirements and your
participation will enhance your knowledge and skill to meet the business requirements
I wish you and all your friends who are attending all the very best for the conference and your
career
With warm regards
CA Naresh Chandra Gelli

Member – SIRC of ICAI
Ca.nareshgelli@gmail.com
24
CA. Chengal Reddy Ramireddygari
Member, SIRC of ICAI &
Ex-officio Member of Hyderabad Branch of SIRC
I am extremely happy to learn that the Hyderabad Branch of SIRC and Hyderabad Branch of SICASA are
hosting, under the auspices of Board of Studies of ICAI, a Two Day CA Students’ Conference at Hyderabad
on 11th and 12th July 2024. It is an opportunity bestowed upon by the Board of Studies of ICAI to the hosts
to showcase their organizational capabilities and in conducting the Conference in a grand and befitting
manner.
I express my sincere appreciation and thanks to CA. Rajkumar S. Adukia, Chairman, Board of Studies,
ICAI, CA. Sridhar Muppala, Vice-Chairman, Board of Studies, ICAI, CA. Dayaniwas Sharma, the Conference
Director and the other members of Board of Studies for their gesture. They deserve accolade for
conceptualizing the theme of the Conference “ANVESHANA - The Quest of Knowledge” that signifies the
importance of adding value to the knowledge and thus to create an urge amongst the younger generation
of “future Chartered Accountants” for having deeper understanding on the subjects slated for discussion.
The Board needs a special mention as it opens up an avenue for talent-exploration amongst the students
by having them as speakers on diverse subjects that have been structured, namely on Auditing, Taxation,
Start-up and AI Powered Audits. This unique initiative on the part of the Board would motivate the students
to follow suit in presenting technical papers in other different forums as students and later on as members
of our elite profession. I am sure that the embedding of motivational and special sessions within the
structure of the conference will add to the significance of the two day proceedings.
I congratulate Chairman CA Ravi Sankara Reddy P, Hyderabad Branch, Chairman CA Deepak Ladda,
Hyderabad Branch of SICASA and the Managing Committees members of Hyderabad Branch for their efforts
and that of the efforts of the entire exemplary team in organizing this conference are highly laudable. Each
one of them duly, richly and rightfully deserves an all-round appreciation.
I am sure the students will have insightful ideas generated through the deliberations at the technical
sessions and in other sessions, enlightenment of knowledge-sharing and the best of purposeful time spent.
I am also confident that the occasion will offer the students to have closer network to broaden their contact-
base and carry home happy memories of knowledge accumulation and togetherness.
I wish the Two Day CA Students’ Conference all-round success.
With best wishes,
CA. CHENGAL REDDY RAMIREDDYGARI
25
CA. MANDAVA SUNIL KUMAR
“If four things are followed – having a great aim, acquiring knowledge, hard-work and
perseverance - then anything can be achieved”.
This is the basic fundamental principle for “learning”. The more one is directed towards this goal the
more one will achieve success. Where from the direction comes? In my view the direction to achieve
success in the profession and the personal life of a CA Student comes from the Board of Studies.
The Board of Studies not only imparts theoretical education but also add value to the knowledge
acquired by a student through practical training. Beyond this, the Board of Studies goes an extra mile
to educate and update the students with interactive sessions to impart knowledge through conduct of
conferences across the country. The conduct of such conferences with technical sessions, motivational
and special sessions embedded within the structure of the conference offer a platform for the students
to come together, learn the nuances of the subjects connected to their studies and above to exhort
them to approach the career with confidence and conviction.
It is in this respect the Board of Studies deserve wide-round of appreciation for conducting the
National Conference of CA Students at Hyderabad on the 11th and 12th July 2024 with uniqueness of
–
 Inviting eminent professionals to chair the technical sessions;

 Inviting personalities from profession and from other fields to address and motivate the
students with their incisive thoughts of rich experience and expertise;
 Encouraging students to be speakers on technical subjects thereby widening their knowledge
and nurturing them to be renowned speakers in diverse subjects in different forums; and
 Create interest among the students to develop communicative abilities that will enhance their
professional performance.
On behalf of SICASA and on behalf of the entire students’ fraternity I thank CA. Rajkumar Adukia and
CA. Sridhar Muppala, Chairman and Vice-Chairman of Board of Studies and the other members of the
Board of Studies for conducting numerous conferences in the nook and corner of the country to instill
confidence and enhance knowledge to the students and for giving an opportunity to Hyderabad Branch of
SIRC and Hyderabad Branch of SICASA to jointly host the Conference.
SICASA and I also join together to congratulate the hosts for their keen interest, determined efforts
and distinct organizational acumen to make the Conference yet another remarkable event to add to
their records, I wish that CA. Ravi Sankara Reddy, Chairman, Hyderabad Branch and his team of
Managing Committee Members in the Branch, CA. Deepak Ladda, Chairman, Hyderabad Branch of
SICASA and his team of Managing Committee Members to achieve the best and enduring success of
the Conference.
26
The topics selected for deliberation in the technical sessions are in sync with the theme of the
Conference “ANVESHANA” that will generate interest and involvement of participation to acquire
wealth of knowledge for the students. I am sure the students would have the best of time to learn,
share relationship with their counterparts and create network for constant future communication
amongst them to share ideas. The two day conference in their student career, I am sure, will be a
cherished one and they will relish and remember their presence in this conference always.
“The will to win, the desire to succeed, the urge to reach full potential. These are the keys
that will unlock the door to personal excellence” - Eddie Robinson said. I am sure the students
will take this occasion as one more opportunity in walk through the path of success.
I congratulate the organizers and the hosts for staging the conference with aplomb. I also send my
best wishes for an outstanding success of the Two Day National CA Students’ Conference.
With warm regards and best wishes,
CA. MANDAVA SUNIL KUMAR
27
CA. China Masthan Talakayala
Dear CA Students,
I am glad to share that the Hyderabad Branch of SIRC of ICAI and SICASA, Hyderabad Branch are
hosting the National Conference of CA Students on 11th and 12th of July, 2024 at Hyderabad and the theme
of the Conference is "ANVESHANA" – Quest of Knowledge. This is being organized underthe aegis of
Students Skills Enrichment Board (SSEB) of Board of Studies of ICAI.
The Conference is an exceptional platform for the students to interact, exchange their knowledge and
ideas which are relevant to CA profession. The primary goal of the Conference is to enlighten all the
future Chartered Accountants on current concerns such as Auditing, Taxation, Startup sphere and the role
of Chartered Accountants and AI Powered Audits. These deliberations will be led by the Chairman ofthe
sessions along with the eminent student speakers who are enthusiastically participating to deliver their
invaluable insights of their topics.
Besides these technical sessions, special and motivational sessions which are designed to inspire and
empower the budding CA students. The topics chosen for the Conference are not only relating to current
scenario but also crucial for the growth and success in the CA Profession.
I am confident that you, as student delegates, will seize this opportunity to upskill, empower yourselves
and further enrich your knowledge for the betterment of our noble profession. The National Conference
of CA Students is a chance for you to learn, connect and grow.
I on behalf of Hyderabad Branch of SIRC of ICAI encourage all the CA students for their active
participation and enrich with the knowledge. I extend my heartiest best wishes to all the student delegates
and I am sure the Conference would be a grand success. Let's come together to celebrate with knowledge
at "ANVESHANA" and make this event a memorable to all.
Best wishes for your future.
Warm Regards,
CA. China Masthan Talakayala
28
.
DAY -1
Technical Session – 1
Auditing
29
Rajini Mahesh Environmental Social and Governance
SRO0697124 MYSUR (ESG) Considerations in Audits
Sustainability Development
Definition:
Sustainable development is development that strives to meet the needs of developing countries
seeking to achieve a more sustainable world. Sustainable development addresses the needs of the
present moment without compromising current and future generations to meet their own sustainable
lifestyles.
17 SDGs:
30
3 Pillars of SDGs
 Environmental
 Social
 Governance
ESG Meaning:
Companies report on ESG (environmental, social, and governance) performance in order to provide
transparencyto their investors, employees, and customers.
ESG has historically been a focus for sustainability-minded business leaders. However, in the current business
climate, ESG has become an important topic for all executives looking to improve performance.
Evolution of ESG in India
Initiatives by ICAI
ICAI has also started a Certificate Course on Sustainable Development Goals (SDGs), Business Responsibility
Reports (BRR), Integrated Reporting (IR) & also proposed an ICAI Executive Development Program on
BusinessResponsibility Reporting (BRR) In last 2 years, ICAI has issued following publications:
1.Standard on Assurance Engagements (SAE 3410) – Assurance Engagements on Greenhouse Gas Statements
2. Background Material on BRSR (revised 2021)
3.Sustainable Development Goals – Accountants creating sustainable World – Parts 1 covering SDGs 1 to 5
4. Sustainable Development
Students Goals –Board,
Skills Enrichment Accountants creating sustainable World – Parts 1 covering
(BOS- Operations) SDGs 6 to 11
HYDERABAD
5. Sustainable Development Goals – Accountants creating sustainable World – Parts 1 covering SDG 12 to 17
6.FAQs on Sustainability Reporting – Heart of Good Governance
7.Sustainability Reporting Maturity Model (SRMM) – Version 1.0
31
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)
Reporting under BRSR is mandatory from financial year 2022-23. However, disclosure was voluntary in financial
year 2021-22. The reporting questionnaire is divided into three sections:
(I)Section A – General Disclosures
(ii) Section B – Management Process and disclosures
(iii) Section C – Principle-wise performance disclosures
The section classifies KPIs into two categories that companies are required to report upon:
- Essential indicators (Mandatory disclosures)
- Leadership indicators (Optional disclosures)
Nine Principles of BRSR
1.Ethical, Transparent and Accountable

2.Safe and Sustainable Goods and Services
3.Promote well-being of all employees including those in the value chain
4.Respect for stakeholders’ interests and responsiveness
5.Respect and Promote human rights

6.Protection and restoration of
Environment7.Influence on Public and
Regulatory Policy
8. Promote Inclusive Growth and equitable development
9.Provide value to the consumers in a responsible
manner
Why ESG Matters in India

Several factors are fueling the rise of ESG investing in India:
▶ Growing Environmental Concerns
▶ Socially Conscious Consumers
▶ Regulatory Push
Long-Term Sustainability
Case Studies in Action: Putting ESG Principles into Practice

Indian companies are responding to the growing demand for ESG investing. Here are some inspiring examples:
▶ Mahindra & Mahindra
▶ Dabur
▶ Infosys Foundation
The Roadblocks on the Path: Challenges and Considerations

▶ Data Standardization
▶ Greenwashing Concerns
▶ Limited Investment Options
32
The Future is Green(er):
Opportunities and the Way Forward
▶ Growth of ESG Investment Products: The Indian market is expected to see a surge in ESG-focused
mutualfunds and other investment vehicles.
▶ Technological Innovation: Technology can play a crucial role in improving ESG data collection,
analysis, and reporting.
Focus on Impact Measurement: Developing robust impact measurement frameworks will be crucial to
demonstratethe real-world benefits of ESG investing
ESG Framework
ESG frameworks are systems for standardizing the reporting and disclosure of ESG metrics. They are often
voluntary, but may be required by a certain investor or by regulations in some countries.
These frameworks are put together by nonprofit organizations, NGOs, business groups, and others. As a result,
they vary widely in areas of focus and the metrics they recommend.
For example, one of the most commonly used ESG frameworks is the Global Reporting Initiative (GRI)
framework, a set of standards for responsible environmental, social, economic, and governance conduct
covering a wide range of topics. 73% of the world’s 250 largest companies report on sustainability using the
GRI framework. Some popular ESG Frameworks include:
1. CDP
2. Climate Disclosure Standards Board (CDSB)
3. Global Reporting Initiative (GRI)
4. Science Based Targets initiative (SBTi)
5. Sustainability Accounting Standards Board (SASB)
6. Task Force on Climate-related Financial Disclosures (TCFD)
7. UN Principles for Responsible Investment (PRI)
World Economic Forum (WEF) Stakeholder Capitalism Metrics
ESG Ratings
ESG aim to measure a company's exposure to environmental, social, and governance risks and how effectively
they manage those risks.
Unlike frameworks, which provide recommendations for what to report on and how to report it, ESG ratings
assign a specific score to a business based on their ESG performance.
Difference between CSR and ESG
ESG is a quantifiable assessment of sustainability and business practices. ESG strategy focuses on reaching
certainperformance metrics, setting measurable goals for them and conducting audits to verify that the metrics
and relateddisclosures are accurate
Corporate social responsibility (CSR) is a self-regulating business model that aims to improve society and the
environment. It's aSkills
Students looser, general framework
Enrichment for Operations)
Board, (BOS- corporate behavior that can vary in termsHYDERABAD
of its
implementation. The nature of CSR is qualitative, although the ISO 26000 voluntary standard does help
companies define social responsibility and provides practical guidance for achieving it.
33
Conclusion
▶ ESG investing in India presents a win-win proposition. Investors can achieve their financial goals while
supporting companies that are environmentally and socially responsible. As the market evolves and
challenges are addressed, ESG investing has the potential to become a mainstream force in India,
shaping amore sustainable and responsible financial future.
▶ ESG reporting gives companies the opportunity to be transparent with stakeholders about their approach
to environmental, social and corporate governance topics. It’s quickly becoming a necessary part of
operatingan enterprise business.
34
Mohammed Shahid
SRO0733817 The Audit Evidence & Audit
Hyderabad Trail in the Digital Era
Title: Audit Evidence and Audit Trails in the Digital Era of India
1. Audit Evidence: Foundation of Assurance
1.1 Definition and Scope of Audit Evidence
As per SA 500, audit evidence is the information used by the auditor in arriving at the conclusions on which the
auditor’s opinion is based. Audit evidence includes both information contained in the accounting records
underlying the financial statements and other information. Objective of the auditor is to design and perform
audit procedures in such a way as to enable the auditor to obtain sufficient appropriate audit evidence to be
able to drawreasonable conclusions on which to base auditor's opinion.
1.2 Audit Evidence in a computerized environment
In today’s technology-driven world, auditors encounter unique challenges in gathering evidence from
computerized systems. They must assess the integrity, accuracy, and reliability of electronic and digital
evidence. The use of data analytics and advanced technologies may also play a significant role in obtaining
audit evidence. These special considerations highlight the need for auditors to adapt their audit procedures and
evidence-gatheringtechniques to address specific risks and complexities in the audit environment. By
addressing these considerations, auditors can enhance the quality and relevance of the audit evidence obtained
and provide more reliable audit opinions.
1.3 Challenges in Obtaining and Assessing Audit Evidence
Data Integrity: Sometimes, records may be incomplete or missing, making it difficult to gather sufficient
evidence. Data breaches and cyber-attacks can compromise the integrity of financial data. Ensuring all
necessarydata is captured and included in the analysis is vital for maintaining integrity.
Accessibility: Data retrieval from cloud systems can be affected by network latency, leading to delays. Limited
bandwidth can slow
Students down
Skills data transfer,
Enrichment Board,especially with large data sets.
(BOS- Operations) HYDERABAD
35
Data Security: Unauthorized access to confidential data can occur through hacking, phishing, or insider
threats. There is a risk that data could be intentionally altered by the auditee to present a misleading picture.
1.4 Technological Advancements Enhancing Audit Evidence
Blockchain Technology: How blockchain enhances audit reliability through transparent and tamper- proof
transaction records.
 Immutable Transaction Records: Blockchain technology relies on cryptographic techniques to
ensure that once a transaction is recorded, it cannot be altered or deleted. Each block in the chain
contains a cryptographic hash of the previous block, forming a secure chain of records.
 Enhanced Transparency: Blockchain is a distributed ledger technology (DLT), meaning that all
participants in the network have access to the same set of records. This creates a transparent system
where all transactions are visible to authorized participants.
 Automated Verification and Smart Contracts: Smart contracts are self-executing contracts withthe
terms of the agreement directly written into code. These contracts automatically
enforce and verify compliance with the agreed-upon terms. The automation of routine verification
tasks allows auditors to focus on more complex and subjective aspects of the audit, improving
overallefficiency and effectiveness.
 Enhanced Security: Blockchain uses advanced cryptographic techniques to secure transaction
data. Each transaction is encrypted and linked to the previous transaction, ensuringdata integrity
and security.
 Traceability and Accountability: The transparent nature of blockchain ensures that all
participantsare accountable for their actions, as every transaction is recorded and cannot be
repudiated.
Artificial Intelligence (AI) and Machine Learning: In the ever-changing landscape of contemporary
business, the convergence of technology and financial oversight has led to a significant transformation in
audit practices, notably with the incorporation of machine learning. As organizations aim to secure their
assets and maintain the reliability of financial data, the integration of machine learning in fraud prevention
and detection has become a potent tool for auditors.
 Dynamic Transaction Vigilance: At the forefront of machine learning's prowess is its ability to
dynamically monitor transactions. Fueled by vast datasets, the computer programs learn what
usual behaviour looks like and quickly notice if something is different. It's like having a detective
that canswiftly identify any unusual behaviour in a sea of data. As soon as it sees something that
doesn't match the usual pattern – a potential red flag for fraud – it alerts auditors. This allows
auditors to step in and investigate right away.
 Managing Risks with Predictive Analytics: Machine learning stands out in the realm of
predictive analytics, offering auditors a valuable tool to foresee and thwart potential fraud. Here’s
how: It looks at old data to figure out trends and patterns linked to fraud. So, if something looks
suspicious based on these patterns, auditors can take action early to stop the problem from getting
worse. What's noteworthy is that auditors can employ this information proactively. Rather than
waiting for adverse events, they can take precautionary measures to avert issues. It's akin to
addressing a concern before it escalates into a significant problem
 Reduced False Positives: By engaging in continuous learning, machine learning algorithms
enhance the sophistication of their models, thereby reducing the occurrence of false positives.
This refinement is crucial as it ensures that auditors can focus their attention on genuine threats,
avoiding unnecessary distractions caused by inaccurate alarms.
36
2. Audit Trails: Navigating Chronological Records
2.1 Definition and Purpose of Audit Trails

Audit trails provide a chronological record of transactions and activities, essential for reconstructing events,
identifying errors, and detecting fraud. They serve as a roadmap for auditors to ensure accountability and
compliance.
2.2 Elements of Effective Audit Trails
Timestamps: In financial systems, accurate timestamps help prevent double-spending by ensuring that once
atransaction is recorded, it cannot be duplicated or reversed without detection.
Timestamps help identify unusual patterns or anomalies in transaction timing, which can be indicative of
fraudulent activity.
User IDs and Permissions: Knowing who initiated, approved, or authorized a transaction assigns clear
responsibility and accountability to specific individuals. Ensures that every transaction can be traced back
toan accountable person, making it easier to investigate and address any issues.
Transaction Details: Detailed descriptions prevent vague and generic entries, ensuring that each
transactionis precisely documented. Comprehensive data includes all relevant information, such as dates,
amounts, account details, and supporting documents.
System Logs: They provide detailed records of system access, modifications, performance, and other
relevantactivities, enhancing security, accountability, compliance, and operational efficiency. By
effectively leveraging system logs, organizations can ensure a higher level of transparency, protect
against security threats, and maintain the integrity and reliability of their IT systems.
2.3 Challenges and Solutions in Audit Trails
Integration of Systems: Integrating audit trail capabilities across diverse IT systems presents several
challenges, primarily related to standardization and interoperability.
 Heterogeneity of IT Systems: IT environments often consist of a mix of legacy systems, cloud-
based applications, on-premises solutions, and third-party services, each with its own logging and
audit capabilities. Different systems may use proprietary formats, protocols, or logging
mechanisms that are not easily compatible with each other.
 Organizational Alignment and Collaboration: Organizational silos between IT operations,
security teams, compliance officers, and auditors can hinder effective collaboration and
coordination in managing audit trails. Stakeholders may have varying levels of awareness and
understanding of the importance of audit trail integration and standardization.
 Security and Access Control: Audit logs may contain sensitive information, such as user
credentials, IP addresses, and transaction details, necessitating strict security measures to prevent
unauthorized access or tampering.
Data Volume and Complexity:
 Data Volume: IT systems generate vast amounts of audit data, including logs from network
devices, servers, applications, and databases, which can overwhelm traditional storage and
Students Skills
processing Enrichment
capabilities. Board,
Cloud (BOS- Operations)
platforms HYDERABAD
offer scalability benefits by providing elastic storage and
computing resources, making them well-suited for managing large volumes of audit data.
37
 Scalability Issues: Ensuring that audit trail capabilities can scale effectively to
handleincreasing data volumes without compromising performance or
reliability.
3. Interlinking Audit Evidence and Audit Trails: Applications
1.E-commerce Platforms:
E-commerce platforms in India handle a vast volume of transactions daily, requiring robust audit trails
toensure transparency and trust among stakeholders.
- Example: Transaction Audits: Audit evidence in the form of electronic records, digital signatures,
and transaction logs are pivotal in verifying the accuracy of revenue recognition, refunds, and
customer transactions. Audit trails help auditors track the lifecycle of transactions from order
placement to deliveryand payment, ensuring compliance with accounting standards and regulatory
requirements.
2. Telecom Sector:
India's telecom sector relies heavily on audit evidence and audit trails to ensure accurate billing and
revenuerecognition, especially in a highly competitive and regulated environment.
- *Example: Revenue Assurance Audits:* Audit trails of call records, billing systems, and customer
transactions are critical in revenue assurance audits. Auditors use these trails to verify the
completenessand accuracy of revenue generated from various telecom services, ensuring
compliance with regulatory guidelines and transparency in financial reporting.
3. Healthcare Industry:
In the healthcare sector, especially with the rise of digital health records and telemedicine platforms,
auditevidence and trails are crucial for maintaining patient confidentiality and ensuring billing accuracy.
- Example: Electronic Health Records (EHR) Audits: Audit trails of EHR systems help auditors
verifythe accuracy of patient data, treatment records, and billing transactions. These audit trails
ensure compliance with healthcare regulations, safeguard patient information, and uphold
financial transparency in healthcare service billing.
These examples demonstrate how audit evidence and audit trails are essential in various sectors of the
Indianeconomy, ensuring compliance with regulations, enhancing financial transparency, and
maintaining trust among stakeholders. Each sector utilizes digital audit trails and evidence to strengthen
internal controls, verifyfinancial data accuracy, and mitigate risks associated with fraud or errors.
38
Audit of Small and
Sravya Kandukori
SRO0669244 Medium Companies
GURUGRAM
Introduction:
“An Audit is an independent examination of financial information of any entity,
whether profit oriented or not, and irrespective of its size or legal form, when
such an examination is conducted with a view to expressingan opinion
thereon.”
This is the definition we have learnt since our CA Intermediate studies.
But, the reality is a bit different from the definition. As auditors, we don’t look
only the financial information of the entity but also check for the
efficiency of Internal Controls, compliances of various laws such as
 Companies Act, 2013,
 Income Tax Act, 1961,
 Micro, Small and Medium Enterprises Development Act, 2006,
 Securities and Exchange Board of India Act, 1992
 Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015,
 RBI Act, 1934, and many more.
Definition of Small and Medium Sized Company (SMC):

Before diving into the topic, let us know the definition of Small andMedium sized company (SMC) as per the
companies act 2013.
The definition is stated under the companies
(accountingstandard) rules, 2021.
“Small and Medium
Students Sized Company
Skills Enrichment (SMC)”
Board, (BOS- means, a company-
Operations) HYDERABAD
(i) whose equity or debt securities are not listed or are not
in theprocess of listing on any stock exchange, whether
in India or outside India
39
(ii) which is not a bank, financial institution or an insurance company;
(iii) whose turnover (excluding other income) does not exceed two hundred and fifty crore rupees inthe
immediately preceding accounting year;
(iv) which does not have borrowings (including public deposits) in excess of fifty crore rupees at anytime
during the immediately preceding accounting year; and
(v) which is not a holding or subsidiary company of a company which is not a small and medium-sized
company.
Which companies are required to get their books audited by a Statutory Auditor?
The companies act, 2013 mandates the audit of financial statements by an Independent Auditor for all
the companies including SMCs.
What is the main objective of Audit?
In case of companies, shareholders may or may not be involved in daily

affairs of the company. The financial statements are prepared by
management consisting of directors. As shareholders are owners of the
company, they need an independent mechanism so that financial
information is qualitative and reliable. Hence, their interest issafeguarded
by an audit.
Why is it crucial to Audit SMCs?

What is the need of audit of a small and medium sized company where the directors/promoters are the
shareholders themselves in many of the cases. Is there any value addition to such companies dueto audit?
Yes, it is very crucial to Audit the financial statements of SMCs.
Small and Medium-sized Enterprises (SMEs) are a crucial part of India's economy, contributing
significantly to employment, innovation, and GDP growth. According to the Ministry of Micro, Small, and
Medium Enterprises, SMEs contribute about 39% of India’s GDP and around 45% of the country’stotal
exports. The audit of SMEs ensures transparency, accountability, and financial integrity, which are
essential for their sustainable growth.
40
Benefits of Auditing SMCs
The benefits are as follows:
1. Financial Integrity and Transparency: Auditing ensures that the financial statements of
SMEs present a true and fair view of their financial position. This is critical for gaining the
trust of stakeholders, including investors, creditors, and customers. In FY 2020-21, the SME
sector in India reported revenues exceeding INR 20 lakh crore, highlighting the importanceof
accurate financial reporting.
2. Compliance with Regulations: Regular audits help SMEs comply with statutoryrequirements,
thereby avoiding legal penalties and enhancing their credibility. For instance, compliance
with the Goods and Services Tax (GST) regime is crucial, as SMEs contribute significantly to
the indirect tax revenues in India.
3. Fraud Detection and Prevention: Audits can uncover fraudulent activities and financial
misstatements, safeguarding the company’s assets and reputation.
4. Improved Decision Making: Accurate financial information obtained from audits aids in
better decision-making by the management, facilitating strategic planning and growth. For
example, SMEs with audited financial statements are more likely to secure loans frombanks
and financial institutions.
5. Efficiency of Controls: IFC reporting by auditors enables them to check the existing controls
which can help in pointing out the bottle necks.
Challenges in Auditing SMEs

1. Resource Constraints: SMEs often operate with limited financial and human resources, makingit
challenging to maintain comprehensive accounting records and implement robust internal
controls.
2. Lack of Professional Expertise: Many SMEs do not have in-house expertise in financial
management and auditing, which can lead to inaccuracies in financial reporting.
3. Resistance to Audits: Owners of SMEs may perceive audits as intrusive and time-consuming,
leading to resistance in cooperating with auditors. This is often due to a lack of understandingof
the benefits of audits.
4. Dynamic Business Environment: SMEs often operate in a rapidly changing business
environment, which can complicate the audit process and the assessment of financial risks. For
instance, the COVID-19 pandemic significantly impacted the operations of many SMEs, posing
additional challenges for auditors.
41
Now, the main question is how to perform Audit of Small and Medium sizedcompanies?
Unlike other companies, the audit processes for SMCs are same.
1. Pre Audit Activities

 Every audit engagement starts with client acceptance/ continuance. Client acceptance
proceduresare performed before agreeing to provide services for a new client, while continuance
procedures
42
are performed for each new engagement to an existing client.
 The auditor shall agree the terms of audit engagement either through a formal contract or
throughan audit engagement letter.
2. Risk Identification and Assessment

 The auditor shall perform risk assessment procedures to provide a
basis for the identification and assessment of risks of material
misstatement at the financial statement and assertion levels.
 Auditors evaluate the assertions made by management in the financial
statements to identify potential areas of misstatement.
These assertions include: Existence or Occurrence, Completeness, Accuracy and Valuation,
Rights and Obligations, Presentation and Disclosure.
3. Response to Risks
 Evaluating the design and implementation of internal controls
helpsauditors understand how the entity responds to identified
risks.
 Walkthroughs involve tracing a transaction from initiation through
the entity’s processes to final recording in the financial statements. This helps in
understanding the flow of transactions and the effectiveness of internal controls.
 Designing and performing tests of controls involves Selecting controls for testing, testing
design effectiveness, testing operating effectiveness and documenting results.
 Tests of details involve verifying the accuracy and completeness of transactions, account
balances, and disclosures.
4. Conclusion and Reporting

 Assessing the sufficiency and appropriateness of audit evidence
 Assessing the impact of misstatements on the financial statements and theaudit
opinion.
 Performing final checks and reviews to ensure all audit procedures have
beencomplete and Preparing and issuing the audit report and
otherdeliverables.
5. Audit Documentation
Documenting audit procedures performed and audit evidence obtained
iscrucial for:
 Providing a clear record of the audit work performed.
 Supporting the audit conclusions and opinion.
 Complying with professional standards and regulatory requirements.
43
Key Audit Areas in SMCs
1. Revenue Recognition: Ensuring that revenue is recognized in accordance with applicable
accounting standards and accurately reflects the company’s performance. Revenue
recognition can be complex in SMEs with diverse revenue streams.
2. Inventory Management: Verifying the existence and valuation of inventory, which is oftena
significant asset for SMEs. Discrepancies in inventory records can significantly impact the
financial statements.
3. Accounts Receivable: Confirming the validity and collectability of receivables to assess
potential bad debts and provision requirements. SMEs often face challenges with timely
collection of receivables.
4. Accounts Payable: Checking the completeness and accuracy of liabilities to ensure all
obligations are recorded. Proper management of payables is crucial for maintaining good
supplier relationships.
5. Fixed Assets: Verifying the existence, ownership, and valuation of fixed assets, including
depreciation calculations. Fixed assets often represent a significant investment for SMEs.
6. Related Party Transactions: Reviewing transactions with related parties to ensure they are
conducted at arm’s length and appropriately disclosed. Such transactions can pose risks of
financial manipulation.
Best Practices for Auditing SMEs

1. Developing a Detailed Audit Plan: A well-structured audit plan tailored to the specific needs
of the SME can help in efficiently identifying and addressing key risk areas.
2. Enhancing Communication: Regular communication with the management throughout the
audit process ensures better understanding and cooperation. Effective communicationcan help
in mitigating resistance to audits.
3. Leveraging Technology: Utilizing audit software and data analytics can enhance the
efficiency and effectiveness of the audit process. Technology can aid in handling large
volumes of data and identifying patterns indicative of potential issues.
4. Continuous Education and Training: Auditors should keep themselves updated with the
latest developments in accounting and auditing standards, as well as industry-specific trends.
Continuous learning ensures that auditors remain competent and effective.
5. Building Trust and Rapport: Establishing a strong relationship with the SME’smanagement
can facilitate smoother audit processes and encourage a culture of transparency. Trust-
building is essential for gaining cooperation and access to necessary information.
44
Why it is important to perform audit of SMCs diligently?
Many of us even think is it necessary to perform all the audit procedures in respect to an audit of SMC?Is
anyone going to check the financials and the audit report.
The answer is an absolute yes!
Similar to National Financial Reporting Authority (NFRA) there is a
Quality Review Board (QRB) of ICAI, which selects and reviews the
financial statements and Independent auditor’s report of various
companies to highlight the serious accounting irregularities and
major non-compliances.
QRB publishes their report yearly on their website. Such report contains the non-compliances of various
Indian Accounting Standards, Accounting Standards, Auditing Standards, Reporting requirements such
as CARO, Ethical Requirements, and Documentation etc.
Conclusion:
The audit of small and medium-sized enterprises (SMEs) in India is essential for ensuring financial
transparency, reliability, and accountability. Despite facing unique challenges such as limited resources,
informal business practices, and related party transactions, SMEs play a vital role in the Indian economy.
Effective audit planning, execution, and reporting, coupled with adherence to statutory requirements and
accounting standards, are crucial for overcoming these challenges. Enhancing auditor training,
strengthening internal controls, leveraging technology, and promoting financial literacy are key
recommendations for improving the quality and effectiveness of SME auditsin India. These measures will
help build a robust financial framework that supports the growth and sustainability of SMEs.
45
Taxation
46
Jangam subashini Taxation on E-Commerce
SRO0782980 Suppliers
Benguluru
Taxation on E-Commerce Suppliers:

India is one of the largest and fastest-growing e-commerce markets in the world. During the COVID-19
pandemic, India saw a drastic down in terms of trade, health, and wealth of the Nation. However, that is
theperiod where there is an increase in the usage of Online Education, E-commerce, E-healthcare, Online
payments, etc.
Let us dive into the main topic which is regarding E-Commerce. In India, E-Commerce transactions are
governed by various laws. My topic is related to Taxation. Let us discuss the Taxation on E-Commerce
Suppliers from the perspective of Indirect taxation which is GST.
Under GST E-commerce transactions are discussed specifically under two sections:
 Section 9(5) supplies.
 Section 52 – TCS.
What is commerce and E-commerce?

Commerce - The buying and selling of goods, especially on a large scale, as between cities or nations.
We will look into the definitions, In terms of section 2(44) of the CGST Act, 2017 “electronic commerce"
means the supply of goods or services or both, including digital products over digital or electronic network.
As per section 2(45) of the CGST Act, 2017, "electronic commerce operator" (herein referred to as ECO)
means any person who owns, operates, or manages a digital or electronic facility or platform for
electronic commerce.
The platform may be in the form of a website, mobile application, or any other electronic medium.
Examples: Amazon, Flipkart, eBay, Snapdeal, Uber, Ola, Swiggy, Urban Clap, etc.
Various E-Commerce models:

Further E-Commerce transactions are classified based on the supplier-recipent combination:
 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Consumer-to-Consumer (C2C)
 Consumer to Business (C2B)
 Consumer to Government (C2G)
47
 Government to Consumer (G2C)
 Business to Government (B2G).
Tax payable by the electronic commerce operator on notified services:
Popularly known as Section 9(5) supplies – the government vide various notifications notified certain
services the taxes which shall be paid by the ECO as if he is the person liable to pay the taxes -
T - Transportation of passengers
H - House-keeping servicesA - Accommodation serviceR - Restaurant service
Let us discuss what are these services:

T - services by way of transportation of passengers by a radio taxi, motorcar, maxi cab, motorcycle,
omnibus, or any other motor vehicle
H - services by way of housekeeping, such as plumbing, carpentering, etc. except where the person
supplying such service through ECO is liable for registration under section 22(1) of the CGST Act.
A - services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites, or other
commercial places meant for residential or lodging purposes, except where the person supplying such
service through electronic commerce operator is liable for registration under section 22(1) of the CGST Act.R
- supply of restaurant service other than the services supplied by restaurants, eating joints, etc. located at
specified premises.
Taxability: On these section 9(5) services; taxes shall be liable to be paid by the ECO and all the provisions
of the CGST/IGST Act shall apply to such ECO as if he is the supplier liable for paying the tax in relation to
the supply of such notified services.
Note: In the case of Housekeeping and Accommodation services if the suppliers are registered under GST,
then the liability to pay taxes shall not be on the ECO even though such supplies are made through ECO.
But in the case of transportation of passengers and restaurant services, the ECO is liable to pay tax on
such services supplied through it in all the cases irrespective of the fact whether the person supplying such
services through it is registered/liable to registration under section 22 or not.
Scenario A person liable to pay taxes

If the ECO is located in taxable ECO
territory
If the ECO does not have physical Person representing the ECO for any
presence in the taxable territory purpose in the taxable territory
If the ECO has neither the physical Person appointed by the ECO for the
presence nor any representative in purpose of paying the tax
thetaxable territory
ReturnsStudents
Disclosure:
SkillsEvery supplier
Enrichment who is
Board, making
(BOS- taxable supply shall disclose such outward
Operations) supply in
HYDERABAD
Form GSTR – 1 (on the 11th of Next month) and pay the taxes through GSTR-3B (on the 20th of Next month)
48
Section 52 – TCS for Supplier:
Every ECO (not being an agent) is required to collect an amount calculated at a rate not exceeding 1%(CGST-
0.5%+SGST-0.5%/IGST-1%) of the net value of taxable supplies made through it, where the consideration
concerning such supplies is to be collected by such ECO. The amount so collected is called asTax Collection at
Source (hereinafter referred to as TCS)
 However, as per the latest 53rd GST council meeting dated 22nd June 2024, the TCS rate has been
proposed to be reduced to 0.5% from the present 1% to ease the financial burden on the suppliers
making supplies through ECOs.
Net value of taxable supplies - Aggregate value of taxable supplies of goods and/or services and Taxable
supplies returned to suppliers other than Services notified under section 9(5).
In common trade practices, ECOs don’t collect this amount from the suppliers rather they simply retain theTCS
amount and their commission from the consideration received by them for the supply of goods/services made
by the suppliers, and pay the remaining amount to the suppliers.
Let’s take an Example:

Amazon (ECO) is liable to take regular registration as well as TCS registration. It is required to deduct theTCS
while remitting the consideration paid to the sellers of goods or services.
Case:
Taxable value of goods sold to customers = 10,000GST on goods (10,000*18%) = 1800
Total amount received from customers by Amazon = 11800Commission to Amazon @ 5% = 500
GST on commission @18% = 90TCS @ 1% (10,000) = 100
Amount payable to supplier = 11,110 (10,000+1800-500-90-100)
Action Points:
 A composition taxpayer cannot make supplies of services through an ECO [Section 10(2)(d)]. However, a
composition taxpayer can make supplies of goods through an ECO. As a result, TCS can be collected
only in respect of supplies of goods made by the composition taxpayer through an ECO.
 TCS shall not be collected in the following cases:
 TCS is not required to be collected on Exempt supplies, since TCS is collected on net value of taxable
supplies.
 TCS is not required to be collected on supplies on which the recipient is required to pay tax on areverse
charge basis.
 TCS is not liable to be collected on the import of goods (as it would fall within the ambit of theCustoms
Act, 1962) or services (as the tax is chargeable under RCM).

Returns Disclosure: ECO who is liable to collect TCS shall disclose GSTR-8 on the 10th of the next monthin
which the tax has been collected at source and such details shall be made available electronically to each of the
suppliers who supplied goods and/or services through ECO in Form GSTR-2A on the common portal a fter the
filing of GSTR-8.
49
This amount shall be made available to the respective supplier who supplied goods/ services through theECO.
Let's take some quick questions on ECO:

1. Whether a Nil Return need to be filed in case there is no TCS liability in a tax period? Ans. If an ECO
doesn’t have any supplies in a particular tax period, then filing Form GSTR-8 will not be mandatoryfor
the said tax period.
2. What is the Maximum time limit for furnishing Form GSTR-8? Ans. The maximum time limit for
furnishing GSTR-8 is 3 years from the relevant due date of filing such a statement.
3. Annual Return for ECO who is liable to collect Tax. Ans. An ECO required to collect TCS is required to file
an annual statement referred to in section 52(5) in Form GSTR-9B. The same is yet to be notified by
the government.
4. Whether ECO can utilize the ITC for making payment of taxes on 9(5) supplies - THAR supplies and
section 52? Ans. NO. Payment of tax on notified services is not allowed through the input tax credit of
ECO. It has to be paid in cash only.
5. Who shall be liable to raise the invoice in respect of notified section 9(5) supplies? Ans. The invoicein
respect of services supplied through ECO under section 9(5) will be issued by ECO since Eco himself is
the supplier who is liable to pay taxes regarding such supplies.
Registration Requirements:
As per Section 22(1) of the CGST, a person who is supplying the taxable supplies shall be liable to get
registered if his aggregate turnover in a financial year exceeds twenty lakh rupees (in case of services)and
40 lakhs (in case of goods). Further, this limit varies in the case of special category States.
In terms of section 24, a person shall be compulsorily liable to get registered under GST in certaincases:
 person who is required to pay tax under section 9(5) – THAR services.
 Every ECO who is required to collect TCS u/s 52.
 persons who supply goods or services or both, other than section 9(5) supplies through such ECO
who is required to collect TCS u/s 52.
 However, vide notification no. 65/2017-CT, if the services provider supplying goods through
the ECO(who is liable to collect TCS) having an aggregate turnover less than the specified limit of
20 lakhs (10 lakhs in case of Special category states) are not required to get registered under GST.
 Further, vide notification no. 34/2023-CT, exempts the supplier of goods supplying through
ECO (who is liable to collect TCS) having an aggregate turnover less than the specified limit
subject to certain conditions.
New Disclosure under GSTR-1 – Table 14 and Table 15.

Vide Notification 26/2022-CT, and through an Advisory, the government has introduced two new tables under
GST which are relevant for taxpayers who either supply through (ECO) or are themselves liable to pay tax
under Section 9(5).
Table 14(a) – Supplier supplying through ECO shall disclose the details on which ECOs are liable to collect tax
under section 52 of the GST Act.
50
Table 14(b) - Supplier supplying through ECO shall disclose the details on which ECOs are liable to pay tax
u/s 9(5).
Table 15 - Eco has to disclose the details of the supplies made through it on which ECO is liable to pay tax
u/s 9(5).
To summarize the topic that we have discussed, let's look at a case study:
Zomato:
It is an Indian multinational restaurant aggregator and food delivery company. It has both TCS and regular
registration almost in all the states across India. Zomato provides Section 9(5) – restaurant services(food)
and other than restaurant services. In such cases, Zomato shall collect taxes to the extent of restaurant
services charging @5%. For other than restaurant services (respective rates). Zomato shall continue to
collect TCS. However, GST on such supplies shall be charged by the actual supplier. In cases, where Zomato
provides both services under the same order, it shall raise a separate bill on restaurant service and other than
restaurant services.
51
New Tax Regime Vs
Adoni Gousiya Begum
SRO0756317 Old Tax Regime – Advice
Hyderabad Smartly
Introduction:
Taxation is a cornerstone of any economy, and in India, it
directly influences individual financial decisions. With the
introduction of the New Tax Regime in the Union Budget 2020,
taxpayers now face a pivotal choice between the Old Tax Regime
and the New Tax Regime. The Old Regime, laden with various
deductions and exemptions, encourages investments andsavings,
whereas the New Regime offers lower tax rates with no
deductions, aiming for simplicity and ease of compliance.
New Tax Regime

A new tax regime was introduced in Budget 2020 wherein the tax slabs were altered,
and taxpayers were offered concessional tax rates. However, those who opt for the new
regime cannot claim several exemptions and deductions, such as HRA, LTA, 80C, 80D
, and more. Because of this, the new tax regime did not have many takers. The
government in the Budget 2023 introduced 5 key changes, which remain the same even
for FY 2024- 2025 since no changes were made in the Interim Budget 2024, to
encourage taxpayers to adopt the new regime. They are:
• Higher Tax Rebate Limit: Full tax rebate on an income up to 7 lakhs has been
introduced. Whereas this threshold is 5 lakhs under the old tax regime. This meansthat
taxpayers with an income of up to 7 lakhs will not have to pay any tax at all under the
new tax regime!
•Students
Streamlined Tax Slabs:
Skills Enrichment The(BOS-
Board, tax exemption
Operations)limit has been increased to 3 lakhs, and
HYDERABAD
the new tax slabs have been introduced.
52
• Salary income: The standard deduction of 50,000, which was onlyavailable under
the old regime, has now been extended to the new tax regime as well. This, along with
the rebate, makes 7.5 lakhs as your tax-free income under the new regime.
• Family pension: Those receiving a family pension can claim a deductionof 15,000 or
1/3rd of the pension, whichever is lower.
• Reduced Surcharge for High Net Worth Individuals: The surcharge rate on income over
5 crores has been reduced from 37% to 25%. This move will bring down their effective
tax rate from 42.74% to 39%.
• Higher Leave Encashment Exemption: The exemption limit for non- government
employees has been raised from 3 lakhs to 25 lakhs, an 8-fold increase.
Old Tax Regime

The old regime is the tax system that prevailed before the introduction of the new
regime. Under this regime, there are over 70 exemptions and deductions available,
including HRA and LTA, that can reduce your taxable income and lower tax payments.
The most popular and generous deductionis Section 80C, which allows for a reduction
of taxable income up to Rs.1.5 lakh. The taxpayers are given a choice between the old
and the new tax regime.
Comparision between New Tax Regime and Old Tax Regime

Old Tax New Tax
Income Slab
Regime Regime
₹0 - ₹2,50,000 - -
₹2,50,000 - ₹3,00,000 5% -
₹3,00,000 - ₹5,00,000 5% 5%
₹5,00,000 - ₹6,00,000 20% 5%
₹6,00,000 - ₹7,50,000 20% 10%
₹7,50,000 - ₹9,00,000 20% 10%
₹9,00,000 - ₹10,00,000 20% 15%
₹10,00,000 - ₹12,00,000 30% 15%
₹12,00,000 - ₹12,50,000 30% 20%
₹12,50,000 - ₹15,00,000 30% 20%
>₹15,00,000 30% 30%
53
Old Tax New Tax
Particulars
Regime Regime
Income level for rebate eligibility 5 lakhs 7 lakhs
Standard Deduction 50,000 50,000
Effective Tax-Free Salary income 5.5 lakhs 7.5 lakhs
Rebate u/s 87A 12,500 25,000
HRA Exemption ✓ X
Leave Travel Allowance (LTA) ✓ X
Other allowances including food allowanceof

✓ X
Rs 50/meal subject to 2 meals a day
Standard Deduction (Rs 50,000) ✓ ✓
Entertainment Allowance and Professional
✓ X
Tax
Perquisites for official purposes ✓ ✓
Interest on Home Loan u/s 24b on: Self-
✓ X
occupied or vacant property
Interest on Home Loan u/s 24b on: Let-out
✓ ✓
property
Deduction u/s 80C (EPF | LIC | ELSS
✓ X
|PPF | FD | Children's tuition fee etc)
Employee's (own) contribution to NPS ✓ X
Employer's contribution to NPS ✓ ✓
Medical insurance premium - 80D ✓ X
Disabled Individual - 80U ✓ X
Interest on education loan - 80E ✓ X
Interest on Electric vehicle loan - 80EEB ✓ X
Donation to Political party/trust etc - 80G ✓ X
Savings Bank Interest u/s 80TTA and 80TTB
✓ X
Other Chapter VI-A deductions ✓ X

All contributions to Agniveer Corpus Fund -
✓ ✓
80CCH
Deduction on Family Pension Income ✓ ✓
Gifts upto Rs 50,000 ✓ ✓
Exemption on voluntary retirement 10(10C) ✓ ✓
Exemption on gratuity u/s 10(10) ✓ ✓
Exemption on Leave encashment u/s10(10AA)
✓ ✓
Daily Allowance ✓ ✓
Conveyance Allowance ✓ ✓
54
Transport Allowance for a specially-abled
✓ ✓
person
The introduction of Section 115 BAC brought forth a new tax regime is offering lower
tax rates with widened slab rates compared to the traditional system. However, opting
for this new system means forgoing various exemptions and deductions like HRA, LTA,
Section 80C, 80D and many more.
So, primafacie it appears that in terms of deduction, the old regime is more attractive
but in terms of slab rates new regime is the better option.
But it isn't just about numbers—it's about aligning with our one’s uniquefinancial goals
and lifestyles.
This decision to switch between new or old tax regime depends on several factors like:-
When deciding between the Old Tax Regime and the New Tax Regime, taxpayers should
consider several factors to determine which option is most beneficial for their specific
financial situation. Here are the key factors toconsider:
1. Income Level
The amount of annual income significantly impacts the choice between the two regimes.
Higher-income individuals might benefit more from the Old Regime if they can take full
advantage of deductions and exemptions. Lower to middle-income earners, with fewer
opportunities to claim deductions, might find the New Regime's lower tax rates more
advantageous.
2. Eligible Deductions and Exemptions

The Old Regime offers various deductions and exemptions, such as those under Sections
80C, 80D, HRA, and LTA. Taxpayers with substantial investments in eligibleinstruments
(like PPF, ELSS, NSC), significant health insurance premiums, or housing rent can
reduce their taxable income considerably under the Old Regime. If the total value of
these deductionsand exemptions is high, the Old Regime might be more beneficial.
3. Investment and Savings Patterns

Taxpayers who regularly invest in tax-saving instruments and have adisciplined savings
approach may prefer the Old Regime to leverage these benefits. On the other hand,
individuals who do not invest significantly in such instruments might lean towards the
New Regime for its simplicity and reduced tax rates.
4. Financial Goals
Students Skills
Long-term Enrichment
financial Board,such
goals, (BOS-
asOperations) HYDERABAD
retirement planning, children's education, and
purchasing a home, play a critical role. The Old Regime encourages savings and
investments, aligning with these goals. The New Regime, however, may suit those
55
looking for immediate tax relief withoutcommitting to long-term savings plans.
5. Compliance and Documentation

The complexity of maintaining documentation and compliance with tax filing
requirements differs between the regimes. The Old Regime requires extensive
documentation to claim various deductions and exemptions, which can be cumbersome.
The New Regime offers a simpler filing process with fewer compliance requirements,
appealing to those seeking ease andconvenience.
6. Financial Awareness and Planning

Individuals who are well-versed in tax planning and financial management may find the
Old Regime more beneficial, as they can maximize their deductions and exemptions
effectively. Conversely, those with limited knowledge or interest in detailed tax planning
might prefer the straightforward approach of the New Regime.
7. Future Changes in Income and Expenses

Anticipated changes in income levels or major life events, such as marriage, having
children, or purchasing property, can influence the choice of tax regime. It's essential
to consider how these future changes might impact eligibility for deductions and overall
tax liability.
8. Government Incentives and Policy Changes

Keeping an eye on government policies and incentives is crucial. Occasionally, the
government may introduce new tax-saving schemes or amendments that could affect the
attractiveness of either regime. Staying informed about these changes can help in
making a timely and beneficial decision.
By carefully evaluating these factors, taxpayers can make a well-informed decision that
aligns with their financial situation and goals, ultimately optimizing their tax liability
and financial planning strategy.
Case Studies:
Here are a few calculations that will help you decide between the old vs thenew
tax regime:
56
Additional
Which Regime to
Less: Deductions
Income Net choose old or new
Standard Tax in Old
Level Income tax regime
Deduction Regime to
Break Even
You will benefit
7,00,000 50,000 6,50,000 0 1,50,000
only in new regime.
Old regime: if
deductions > Rs
1,38,500
8,00,000 50,000 7,50,000 36,400 1,38,500
New regime: if
deductions < Rs
1,38,500
Old regime: if
deductions > Rs
2,12,500
9,00,000 50,000 8,50,000 41,600 2,12,500
New regime: if
deductions < Rs
2,12,500
Old regime: if
deductions > Rs.
2,50,000
50,000 9,50,000 54,600 2,50,000
10,00,000 New regime: if
deductions < Rs
2,50,000
Old regime: if
deductions > Rs.
3,12,500
50,000 12,00,000 93,600 3,12,500
deductions < Rs
3,12,500
Old regime: if
deductions > Rs.
3,58,000
50,000 14,50,000 1,45,600 3,58,000
deductions < Rs
3,58,000
Old regime: if
deductions > Rs.
3,75,000
50,000 15,00,000 1,56,000 3,75,000
deductions < Rs
Students Skills Enrichment Board, (BOS- Operations) 3,75,000 HYDERABAD
57
Old regime: if
deductions >
Rs.3,75,000
50,000 15,50,000 1,71,600 3,75,000
deductions < Rs
3,75,000
Conclusion:
Choosing between the Old and New Tax Regimes is a significant financialdecision that
requires careful analysis of one's income, investments, and financial goals. The Old Tax
Regime, with its various deductions and exemptions, is advantageous for individuals
with substantial investments and those who engage in detailed tax planning. On the
other hand, the New Tax Regime's simplified structure and reduced rates cater to those
seeking ease of compliance and straightforward tax calculations.
Ultimately, the decision rests on a thorough evaluation of personal financial

circumstances. Taxpayers should consider their current and future financial scenarios,
leveraging tools like tax calculators and professional advice to make an informed
choice. By understanding the nuances and implicationsof both regimes, individuals can
optimize their tax liabilities, ensuring alignment with their broader financial strategies
and goals.
58
Huthaswi Edupuganti GST on Gaming Industry -
SRO0669842 The Pandora of Issues
Vijaywada
1. OVERVIEW OF GAMING INDUSTRY
India is currently the largest gaming market in the world, boasting a

user base of 568 million gamers and over 9.5 billion gaming app
downloads in 2023. The sector in India has experienced an impressive
growth trajectory, with a staggering 28% Compound Annual Growth
Rate- CAGR between FY20 and FY23. This remarkable growth is not
only attracting significant foreign and domestic investments but also
generating substantial direct and indirect employment opportunities.
Valuation of Gaming industry in india stands at $3.5 billion in the year

2023.
What are the Factors Leading to the Rise of the Gaming Industry in India?
 Improved Internet Infrastructure and Connectivity: Development of broadband connectivity in Tier-II

and Tier-III cities has expanded the reach of online gaming beyond just metro areas.
o Initiatives like Bharat net and the National Broadband Mission have aimed to provide high-
speedinternet access across rural and remote regions.
o The proliferation of 4G and the rollout of 5G networks have enhanced internet speeds and
reducedlatency, essential for seamless online gaming experiences.
 Affordable Access to Data and Smartphones: The decreasing costs of mobile data plans, driven
by intense competition among telecom operators, have made data more accessible and affordable for
onlinegaming.
o This democratization of technology has been a significant driving force behind the surge in online
gaming adoption across socio-economic strata.
o India's current smartphone base is around 680 million, with over 80% of those being
4Gsmartphones (as per Counterpoint Research).
 Mobile phones contribute to 90% of the gaming market in India as compared to about
37%and 62% in the US and China, respectively.
 Cultural Shift and Changing Perceptions: The Covid-19 lockdown period accelerated the adoption of
online gaming as a form of virtual entertainment and social connection.
59
o According to a June 2021 KPMG report, Indians' average time spent on online games
increased from 2.1 hours per week (11% of total smartphone time) before the lockdown to 4.5
hours (15% of total smartphone time) within a month of the lockdown.
o This led to the gradual shift in perception, with online gaming transitioning from being viewed
as amere pastime to a viable career option.
2. CONSTITUTION OF GST COUNCIL
What is the GST Council?

 Background:
o The Goods and Services Tax regime came into force after the Constitutional (122nd Amendment)
Bill was passed by both Houses of Parliament in 2016.
o More than 15 Indian states then ratified it in their state Assemblies, after which the President
gavehis assent.
 About GST Council:
o The GST Council is a joint forum of the Centre and the states.
o It was set up by the President as per Article 279A (1) of the amended Constitution.
 Members:
o The members of the Council include the Union Finance Minister (chairperson), the Union
Ministerof State (Finance) from the Centre.
o Each state can nominate a minister in-charge of finance or taxation or any other minister as a
member.
 Functions of GST Council:
o The Council, according to Article 279, is meant to “make recommendations to the Union and the
states on important issues related to GST, like the goods and services that may be subjected or
exempted from GST, model GST Laws”.
o It also decides on various rate slabs of GST.
 For instance, an interim report by a panel of ministers has suggested imposing 28 % GST
oncasinos, online gaming and horse racing.
 Decision Making:
Every decision of the GST Council will be taken by a majority of not less than three-fourths of weighted
votes(75%) of the members present and voting. The Centre's share of weight is either 33.33% (if it is in
favour) or 0% (if Centre is not in favor)
3. LEVY OF GST ON GAMING – 50TH GST COUNCIL MEETING
60
The GST Council, earlier this year, announced its decision to impose a 28% GST
on the amount being paid at the entry level for online gaming. The move was part
of the efforts of the governments, both state and central, to regulate online real
money gaming.
In August, amendments to the Central Goods and Services Tax (Amendment)
Bill, 2023 and the Integrated Goods and Services Tax (Amendment) Bill, 2023,
were approved by the GST council.
Later, the Parliament approved these amendments. The Presidential assent was received on 18th August.
The amendments related to the insertion of a provision in Schedule III of the CGST Act, 2017, to provide clarity
on the taxation of supplies in casinos, horse racing and online gaming.
The finance ministry notified October 1, 2023 as the date for implementation of the amended provisions to levy
28% GST on online gaming, a decision which has caused havoc in the industry.
As per the notification, online gaming, along with horse racing and casinos, will be treated as “actionable claims”
under the GST Act, similar to lottery, gambling and betting.
A Quick Look at Key Changes
Under the new regulations, a uniform 28% tax will be applied on the full value of bets placed in online games,
regardless of whether it involves games of skill or chance.
For instance, if a player wagers INR 100, the new tax regime will levy a GST of INR 28 on that amount. In
contrast, under the previous tax system, only an 18% GST was applicable and that too on the platform fee charged
for games of skill.
To illustrate, if the platform fee was 20% of the bet amount (INR 20 in this case), the GST would be INR 3.6 (18%of
INR 20) under the previous regime. Therefore, the increase in GST under the new tax rules represents a jump of
around 1,000%.
The higher tax rate significantly increases the cost of
participating in online gaming activities. Industry associations
and prominent startups have expressed their deep
disappointment with the new regulations. They believe the new
rules will have a detrimental impact and the entire industry
willbe at risk of disappearing.
The gaming association All India Gaming Federation

(AIGF)also echoed, “We believe the decision by the GST
Council of
valuation on deposits will severely impact the online gaming sector and result in a situation where a majority of
players, including the MSMEs, will no longer be able to survive in the face of the increased tax liability of 400 per
cent.”
The decision evoked a sharp response from the online gaming industry, who claimed that they would suffer huge
losses due to the additional taxes. The heads of more than 125 online gaming companies wrote to the government
explaining their grievances and the impact 28% GST can have on their business.
4. CHALLENGES OR ISSUES FACED BY GAMING INDUSTRY WITH LEVY OF 28% GST
61
Startups Across Stages in Turmoil
The decision to implement the 28% GST on online gaming has had far-reaching consequences. While some
online gaming startups have decided to lay off employees to adjust to the new reality, others have shut shop.
For instance, Bengaluru-based Gameskraft recently discontinued its fantasy offering, Gamezy Fantasy.
Other gaming companies like Quizy and Fantok have either ceased their operations entirely or temporarily
suspendedthem as they navigate the evolving regulatory landscape.
Additionally, prominent players in the industry, including unicorn MPL (Mobile Premier League), Kavin
Mittal-led Hike, and Spartan Poker, have sacked employees due to theimpact of the GST Council’s decision.
Then, there is also the issue of retrospective tax notices. A number of online gaming startups, including
fantasy sportsgiant Dream11, Head Digital Works, Games 24×7, and listed gaming startup Nazara, have
received show-cause notices from the Directorate General of GST Intelligence (DGGI) over the past week for
tax evasion in the last few years.
Overall, online gaming companies are expected to receive tax notices for a whopping INR 1 Lakh Cr from the
DGGI, which has further dented sentiments.
As Inc42 reported, the new tax regime was expected to result in a consolidation wave in the online gaming
industry, with bigger players acquiring smaller ones. However, with the big players in the industry now
receiving show-cause notices for alleged tax evasions, the future certainly looks bleak for the sector for now.
Foreign Investments Faced Losses

Giant companies such as TigerGlobal and Steadview have invested in Indian Gaming Companies as well as
Crypto based Indian Companies. As far as Gaming Companies are concerned, to be active in the industry,
these companies need to reduce their margins which will reduce the overall profitability. So, the returns
expected by foreign investors may not be achieved.
5. CONCLUSION:
62
~ Small reminder to those students who play fantasy games.
~ UNION MINISTER ASSURANCE OF RECONSIDERATION OF THE TAX RATE- 28%
After listening to several objections from the industry, Union Minister of State for Electronics and Information
Technology, Rajeev Chandrashekhar said that his ministry will request the GST Council to review their
decision. “We will go back to the GST Council and may request their consideration on the facts of the new
regulatory framework," the minister said during a media interaction.
He also mentioned that, “the GST Council is not the
Government of India. The council is represented by all
state governments. It is a federal organization. State
governments and finance ministers have come together
and created a GST framework. That is a consequence of
three years of their work. While we may quibble with
the findings, we have to recognize the process of
creating a framework for online gaming, which started
inJanuary 2023”.
63
Day - 2
Income Tax
64
Hajira ghazala Chartered Accountants
shirazSRO0657254 Navigating the world of Startups
Hyderabad
With a booming interest of innovation and entrepreneurship in India recently, and a growing startup
ecosystem. The startups have left behindall the traditionalists and modernizing the world each.
“With over lakhs of recognized startups as of June 2024, India'sStartup

Ecosystem is booming, ranking as the 3rd largest globally.”
The Startup Ecosystem
 A startup is a newly established business, founded by entrepreneurs with an interesting

innovation in the market.
 The startup ecosystem spans innovative ventures typically characterized by a high potential for
growth and the ambition to address market gaps with unique products or services.
 Often in their early stages of development, they lack the funding tokeep the innovationrunning.
 These ventures are founded by visionary entrepreneurs who possess a blend of creativity,
passion, and resilience, as well as foundational knowledge in market analysis, business
planning,financial management, and an understanding of industry regulations.
 In this dynamic world of startups, transforming innovative ideas into successful businesses often
hinges on securing the right investment.
Why shall a Chartered

Students Accountant
Skills Enrichment Board, enter the world of startup?
65
Understanding the Ecosystem Deeply:
 Chartered Accountants (CAs) possess a comprehensive understanding of the business

ecosystem, extending beyond the immediate market. This requires a holistic approach,
incorporating market analysis, customer insights, and adaptive strategies.
CAs identify the driving forces within industries, from technological advancements to
regulator
ychanges, assessing their potential impacts on business models.
They explore the interconnections between various stakeholders, including suppliers, competitors,
regulatory bodies, and potential collaborators.
 The focus is not just on starting a business, but on sustaining and growing it. This requires a
blend of vision, pragmatism, and an unwavering commitment to excellence.
 This deep ecosystem insight allows startups to anticipate changes, leverage opportunities, and
navigate challenges more effectively.
Unit economics:
 Other Founders often come from diverse backgrounds, and a detailedunderstanding of unit economics
may not be their forte.
 As seen on Shark Tank India, investors are frequently interested in the unit economics of a
business.
 A Chartered Accountant can accurately analyze, calculate, and present the unit economics based
on concrete data.
Historical and projected data:
 Investors are keen on understanding both the historical financial figures of a business and the rationale
behind projected figures.
 A CA can evaluate historical data accurately using reliable figures and provide projections based on
necessary assumptions and market trendsthat founders may overlook.
 CAs focus on achieving significant milestones and demonstrating market traction before approaching
investors, showcasing market validation, revenue growth, and customer acquisition to strengthen
the startup's case for funding.
Other pursuits:
 Students Skills
Independence: Enrichment Board,offers
Entrepreneurship (BOS-the
Operations)
chance to be your own boss, makeHYDERABAD
your own
decisions, and shape your own destiny.
66
 Innovation: Entrepreneurs have the freedom to create new products, services, or solutions that
can significantly impact the market or society.
 Personal Growth: Running a business challenges individuals to continually learn, grow, and
develop new skills in various disciplines like management, marketing, finance, and operations.
 Impact: Entrepreneurs can pursue ventures that align with their values and goals, aiming to
solve societal problems, create jobs, or improve quality of life.
 Legacy: Building a successful business can leave a lasting legacy, making a mark on the
industry, community, or even globally.
 Strong Financial Understanding: CAs have a profound understanding of financial principles,

including budgeting, forecasting, financial analysis, and risk management. This expertise is
crucial for managing the financial aspects of a business effectively, making strategic
decisions, and optimizing resources.
 Expertise in Compliance and Regulation: CAs are well-versed in tax laws, regulatory
requirements, and accounting standards. This knowledge helps entrepreneurs ensure compliance with
legal obligations, minimizing risks associated with non-compliance and potential penalties, ensuring
operational integrity and investor confidence.
 Strategic Planning Skills: CAs are trained to analyze financial data and provide strategic advice.
They can develop comprehensive business plans, assess market opportunities, and devise
strategies for growth and sustainability.
 Critical Thinking and Problem-Solving: CAs are skilled in solving complex financial problems and
making informed decisions based on data analysis. This analytical mindset is valuable for
identifying challenges, evaluating options, and implementing effective solutions in
entrepreneurial ventures.
 Risk Management Expertise: Identifying and mitigating financial risks is second nature to CAs. They
safeguard the financial health of startups by implementing internal controls, assessing risk exposure,
and adapting strategies to changing economic conditions.
 Adaptability and Continuous Learning: The accounting profession requires CAs to stay updated
with changes in regulations, technologies, and industry trends. This adaptability and commitment
to continuous learning are valuable traits in the dynamic environment of entrepreneurship.
 Networking and Client Relations: Many CAs build strong networks and client relationships
through their professional practice. These connections can be leveraged when starting a
business, whether for finding potential partners, clients, or investors.
 Business Insight: Beyond numbers, CAs often gain insights into various industries and business
models through their client engagements. This broad understanding can be beneficial when
launching and scaling a startup,providing insights into what works and what doesn’t in different
business contexts.
67
Success Stories
Boat
CA Aman Gupta co-founded boAt Lifestyle in 2016. The
brand was created with a vision to provide stylish, affordable, and
high-quality consumer e l e c t r o n i c s , p a r t i c u l a r l y in t h e audio segment.
Jewel box
A recent example of the benefits of having a CA onboard is Jewel Box, a lab-
grown diamond brand introduced by two enthusiastic CA entrepreneurs. They
secured an all-shark deal in Season 2 of Shark Tank
India, demonstrating how CA expertise helped them analyze and pitch with the right ratios
and figures.
Conclusion
The transition from Chartered Accountant (CA) to entrepreneur is defined by innovation,

tenacity, and an unwavering commitment to success. It involves turning obstacles into
opportunities, leveraging financial acumen to create sustainable businesses, and making a
significant mark on the corporate landscape.
This entrepreneurial journey encourages CAs to go beyond conventional roles, embrace new
ideas, and play a pivotal role in shaping the future of various sectors. It’s an invitation to use
your expertise, seize opportunities, and embark on a path that not only fulfills personal goals
but also makes a meaningful difference in the startup ecosystem and beyond.
68
Sai Pradeep Majeti Startup- Door to
SRO0759941 Entrepreneurial
Hyderabad
JourneyFor CA
1. What is a startup?
a. A startup is a young company founded by one or more entrepreneurs to develop a unique
product/service or improve the existing product and bring it into the market.
b. Few Approaches startups might take are –
i. Innovative Products/Services
ii. Improvement
iii. Disruption
iv. Market Gap
v. Business Model Innovation
2. Who is an Entrepreneur?
a. An entrepreneur is someone who starts a new business. They see an opportunityto create something
new or improve something that exists and are willing to take risks to make it happen.
3. Difference between Entrepreneur and a businessman.
a. Let me explain the difference through an example:
i. There are 2 friends: Sai and Karthik. Both of them love coffee anddecided to start
their own businesses related to coffee.
1. Karthik opens a franchise coffee shop, following the brand's established menu,
recipes, and business model. He focuses on daily operations, customer
satisfaction, and steady profits.
2. Sai, Inspired by "Kalki 2898 AD" and environmental concerns, Saistarts "Eco
Brew," sourcing sustainable coffee beans and offering a subscription service with
reusable containers. He sets up pop- up coffee stations where customers get
discounts for using their own mugs, aiming to make coffee consumption more eco-
friendly
3. Whom do you think is an entrepreneur here? Yes, its Sai. Of coursethat is why
he is so famous on social media as well.
4. Both of them were successful but Sai was earning multiple timesmore than that of
Students Skills Enrichment And finally
Karthik. Board, (BOS-one day Karthik asked Sai, about why didHYDERABAD
Operations) he focus on
sustainable growth. And could anyoneof you guess the answer : Yes, it is “Repati
kosam.”
69
ii. The key differences are –
1. Innovation: Sai introduces a new business model focused on sustainability,
while Karthik follows an established franchisemodel.
2. Risk: Sai takes a higher risk by venturing into a new market with an
unproven concept, whereas Karthik mitigates risk by using a proven
franchise.
3. Vision: Sai has a vision to change the coffee industry and reduce waste,
while Karthik aims to run a successful localcoffee shop.
4. Approach: Sai experiments with new ideas like subscriptions and reusable
containers, while Karthik focuses on maintaining the standards of the
franchise.
4. Steps to incorporate a startup

a. Idea Generation
i. Find a problem or opportunity that you are passionate about solving orexploring.
b. Market Research
i. "Validate your idea by understanding the market and customer needs."

c. Business Plan
i. Clearly articulate what makes your product or service unique and whycustomers would
choose it.
ii. Outline your business model, target market, marketing strategy, revenuestreams,
andfinancial projections. This serves as a roadmap for your startup
d. Funding
i. Assess funding needs, seek sources like self-funding, angels, VCs, and
crowdfunding, by assessing the pros and cons.
e. Legal Structure
i. Decide on the legal structure of your business ( Sole
Proprietorship,Partnership, LLP, Company)
ii. Register your business
f. Launch and Market
i. Develop a Marketing Strategy: Plan to reach and attract target customers
usingdigital marketing, social media, partnerships, andother relevant
channels.
ii. Launch Your Product or Service: Execute the launch plan, start selling,
monitorperformance, and adjust your strategy as needed.
5. Reasons for success of startups:

a. Idea
i. A strong idea addresses market needs innovatively, setting the foundation for
growth and competitive advantage in the industry.
ii. Manycompanies get new ideas through various sources.
b. Team/execution
i. Hiring: Hiring the right person for the right position ensures
effectivedecision-making and execution.
ii. Team Attitude: As Mike Tyson said, “Everybody has a plan until theyget punched
in the
Students Skills face.” A resilient
Enrichment team attitude
Board, (BOS- is crucial for overcoming failuresHYDERABAD
Operations) and
achieving success.
70
c. Business model
i. A business model defines how a startup creates, delivers, and captures value, detailing
revenue streams, cost structures, and customer acquisition strategies to ensure
financial sustainability. It guides decisions, attracts funding, and supports scalability,
essential forgrowthand long-term success.
d. Funding
i. The sources and the time of funding has a significant impact on thedecisions,
thus determining the success of the startup.
ii. This is the reason why the rate of growth of startups is way higher thanthat of
largeconglomerant companies that are listed.
e. Timing
i. Too Early: Educate about our product/service.
ii. Late: Compete with many rivals.
iii. Hence Timing is crucial for success.
6. Why CA’s can be great entrepreneurs?

a. Few important traits of a successful entrepreneur are as follows:
i. Visionary
ii. Self-motivated
iii. Risk taker
iv. Adaptable
v. Problem solver
vi. Curiosity
vii. Optimism
viii. Money management
ix. Discipline
x. Decisive – take action quickly
xi. Networking
xii. Comfortable with failure
xiii. Persistence
b. How many of you agree that most these are the characteristics of a CA studentas well? All of us
right. So we can say that a CA has most of the traits of a successful entrepreneur.
c. Apart from this there are few other qualities that can be leveraged by a CAentrepreneur.
Fewof them are –
71
7. Case studies of successful CA entrepreneurs
a. CA Aman Gupta
i. Boat was co-founded by CA Aman Gupta. Before Boat entered the market, the Indian
audio accessories market was dominated by globalbrands like JBL, Sony, and
Sennheiser, with a gap for affordable, high- quality products tailored to Indian
consumers. Boat identified this gapand entered the market in 2016, becoming the
market leader in Indian audio wearables by 2021. In the same year, Boat held a 35.8%
marketshare in the TWS segment.
b. Dhruv Singhi
i. Yatra.com was cofounded by him in August, 2006 which is an online travel agency
providing wide range of travel services including flights,hotels and holiday packages.
ii. He also co-founded Pepper fry to fill an online marketplace gap for quality
furniturein 2012, leveraging his CA background and corporateexperience to
become a major market player.
iii. His journey demonstrates the power of financial expertise andinnovative
thinking.
c. Abhay Sahoo
i. Abhay is the cofounder of Licious, an online meat and seafood deliveryplatform,
transforming the Indian fresh meat market.
ii. Since its 2015 inception, it has rapidly grown, delivering high-quality,hygienically
processed meat products to customers' doorsteps.
d. Archit Gupta
i. Clear tax platform simplifies the process of income tax e-filing, GSTfiling,
investment tracking, and tax savings solutions making it accessible and convenient
for users to comply with tax regulations.
e. Aditya Purie
i. He is the cofounder and chairman of India Today group, one of India’slargest
mediaconglomerates.
ii. India Today group owns prominent media properties including the IndiaToday
Magazine and AajTak.
f. Few other successful CA entrepreneurs include:
i. Kumar Mangalam Birla
ii. Namitha Thapar
iii. Motilal Oswal
iv. Deepak Parekh etc.
8. Initiatives by ICAI for promoting entrepreneurship in CA’s.

a. ICAI’s contribution towards promoting entrepreneurship in CA’s has been
enormous.For promoting and encouraging entrepreneurship, ICAI has constituted a
committee named “Committee on MSME & Startups.”
b. ICAI startup portal
i. ICAI has launched a dedicated portal for startups named “startup.icai.org” to
bridge the gap between startups, business consultants, Mentors, Venture
Students Skills Enrichment
capitalists Board, (BOS-
and incubation Operations)
centers; thereby providing an initial push forHYDERABAD
the
startups.
72
ii. The features of web portal include:
1. Mentorship: Provide guidance with 10+ years of industry experience.
2. Venture Capitalists: Offer financing to startups.
3. Business Consultants: Deliver services in corporate laws, valuation,
andindirect tax laws. Startup incubation centers:
iii. ICAI is also providing the following services:
1. Pre startup incubation services
a. Support will be provided virtually through mentorship model.
2. Startup incubation services
a. Physical infrastructural services, mentorship and advisory
services, networking opportunities with other incubated startups,
access to services of the empaneled service providers and to
connect with investors and VC’s.
3. Virtual incubation services
a. All the services stated above except the physical
infrastructural services.
4. Educating about the startups
a. ICAI has been very active in educating its members and
students about the startups by conducting:
b. Certificate courses on startups
c. Master classes on startups
d. Conducting competitions for the students like the Pitch deck
competition to ignite the spark of entrepreneurship in young
minds.
5. Startup summits
a. ICAI has also been conducting many startup summit programs,
including the most recent one named “ICAI startup sphere
2024.”
b. Apart from the educational aspects of these programs, the specialty
ofthese summits is that the startups get an opportunity to exhibit their
ideas/products and also network with a lot of people.
6. Signing of MOU’s
a. ICAI has signed MOUs with institutions like IIM Lucknow Enterprise
Incubation Centre and Gujarat Student Startup and Innovation Hub
forcapacity building of startups and support the Indian government's
vision of entrepreneurship development.
9. Reasons for CA’s not pursuing entrepreneurship

a. Although having all the required skillset most of the CA’s are not pursuing
entrepreneurship and few of the reasons are –
i. Risk aversion
1. CAs are trained to manage and mitigate risks, which can make them
morecautious about the uncertainties of entrepreneurship.
ii. Stable career path
1. Traditional CA roles offer stability, predictable income, and clear career
progression, making them attractive compared to the uncertain nature of
startups.
iii. Capital constraints
1. Starting a business often requires significant capital, and CAs may find it
challenging to secure funding or be willing to risk their savings.
73
iv. Mindset and culture
1. The CA profession is often conservative, with a focus on compliance and
precision, which may not align with the risk-taking and innovative mindset
required for entrepreneurship.
10. Conclusion:
a. As per the above reasons, I feel that the one main thing that is stopping us from becoming
entrepreneurs is our mind because all the reasons stated above are not because of lack of
skillsbut because of the way we think to avoid risk.
b. The same thing happened with Arjuna during the Kurukshetra war, despite having all the
necessary skills he wasn’t ready to fight the war initially as he did not want to risk the lives of
hisown relatives by fighting against them. But however, with the help and proper guidance of
Krishna he could convince his mind and finally fought and won the war.
c. In the same way I believe that one small change in the way we think or if we could convince
our mind to take risk by taking guidance from mentors then we CA’s can be great
entrepreneursby leveraging our skills.
d. Hence, I would urge everyone of you, to also consider entrepreneurship also as a career
opportunitysuch that we could proudly say that
“ IIT aur IIM’s ke bahut hogaye ab hai Chartered Accountants ki baari”And
help India to reach the mark of 5 trillion economy.
74
Syed Rashed Ahmed How CA’s bridge the Gap
SRO0747465 between Startups and
Hyderabad Investors
How CA’s bridge the gap between the Startups and Investors”.
Let us take proud moment to say that our country has 3rd largest startup ecosystem in the world;
expected to witness YoY growth of 12-15% pa, implying there are 2-3 tech startups born every day.
From just 450 in the year 2016 to over can you guys guess the number now??? Well its
128,000+ in April 2024, that’s a great number right.
The ecosystem is so dynamic that 90% of the Startups fail in the first 5 year, turning out to be a
nightmare for many investors. Connecting the perfect startup with the right investor, makes
unicorns and we understand the fundamentals, align the needs of the investors with the demands of the
startups.
While there exist so many professions in commerce, still we are known as "Chartered’s" Hope you
guys know the meaning of it!!!!, “Specialized”, we are chartered for a reason.
“The beauty of valuation lies in the hands of beholder?? Wrong, its Chartered Accountants”
There’s absolutely no doubt that our role has substantially evolved from just reporting the numbers to
unlocking the driving factors of both profits and losses that any business experience. We are the unsung
heroes behind every successful startup.
Startup is the game, where investors play and we are the referee. We aid the startups to unlock their
potential, by adding wings to their journey with the right level of fuel (Capital) and expertise (Investors),
which ultimately turns out to be Unicorns. Our involvement adds credibility to the startups just with
our signature.
Now let me share you the emerging domain which is the dream of most of the freshly qualified
chartered accountants, you guessed it righttt, “Private Equity”- Private equity is an alternative
investment class that invests in private companies that are not listed on a public stock exchange.
We contribute significantly to this sector where it helps the investor find the right portfolio,
75
According to a report by Bain & Company, private equity investments in India totalled $44 billion
between 2015 & 2020, with the average deal size increasing from $40 million to $65 million during
this period. In the first half of 2022 (January-June), PE/VC investment activity stood at US$ 34.1
billion across 714 deals, a 28% growth YoY. Among these, startup investments were the highest,
standing at US$ 13.3 billion across 506 deals.
PE firms accounted for 40% of all private capital raised worldwide and made about 3,600 acquisitions
for a total deal value of $551 billion and 1,078 exits (sales) valued at $405 billion.
Now that we can see that, majority of the startups who attempts for funding gets it with a probability
of more than 50%, reflects the success rate of our contribution.
Agghh, lot of technical content right, let me just make you all laugh……….
76
Haha, once a wise man said, “If numbers are any language, then call Chartered Accountant
as the poets.”
Let me call myself that wise man, haha….!!!
Well now let’s understand the role of ours exactly how are we bridging the
gap, I call it as V E & O:
V- Valuation & FDD game:

 A wrong Investment is still nightmare for most of the investors, and we basis our
specialization reduce it by identifying, examining the right investment. We being the face
of trust, allows the investors to reply on our suggestion by uncovering the secret Financial
fluency for the investors by reporting with audited FS and by conducting Due Diligence
(FDD).
 It’s a fact that we are the pioneers for understanding the financials and number crunching
of any financial data which adds value to our Financial Due Diligence allowing the
Institutions and Investors to rely upon our reports and opinions.
 Further valuations performed by us, plays a vital role for both the investors and founders to
get a Great and valuable deal during any fund raising.
E- Ease in entry and exit:

 We help the investors to find the potential undervalued multi baggers to their portfolio,
with an intent to exit in an easy way.
 Since 70% of the Venture capitalists and Angel investors invest with an intent to sell,
when the start up reaches its optimum level in market, we provide them the right
recommendation when to invest and exit any stock.
O- Operational & Consulting:

 We being a Management consultant as mentioned not only reports figures to the
management but also provides the reason behind their profits & losses, this aids the new
businesses and the startup to reach their potential by providing them value added
services.
 Students
Further,Skills
we contribute
EnrichmenttheBoard,
startups to meet
(BOS- the requirement & demands of the investors
Operations) in
HYDERABAD
terms of growth & profitability.
77
 Assistance towards the startups by providing them Blue print for all the strategic
decisions in lieu of all the Legal & Ethical aspects.
Let’s us dive into few practical cases:

Jab Baat aati long trip ki, toh kaise hum miss kare MMT ki
1. Make My Trip (MMT): Mr. CA Rajesh Magow has founded the India’s most innovative
travel company, do you know how much did its valuation stands? $2.6 Billion,that’s a very
huge number right.
2. Boat : Maybe aj kal jhumka nai milega but zarorr Boat ka earbud mil jaayega, haha..
Founded by Mr. CA Aman Gupta, one of the most loved Entrepreneurs in our country, the current
valuation of Boat stands at $1.4 Billions, with 8 Funding roundsss, you just imagine therole Aman
must have played while raising funds in 8 rounds!!!!
Dost, sirf 2 hi examples laaya hu, and I want many more such examples from this audience!!!
Conclusion:
Let me conclude my presentation, we the Chartered Accountants has got no boundaries
over any role which we play across the world, aur jab khelna hi hai toh kyu na kuch badi
picture khele??
78
Ashmit Kaur Gill
Power of AI – Data
CRO0660029
Extraction and analysis for
Indore efficient Audit procedures
What is AI?
A machine with human like intelligence?
The idea of AI mimicking human intelligence,
is a stereotypical definition.
It is much more than that.
AI is entirely a new form of intelligence.
It's like creating a tool that can not only perform tasks but also continuously refine and expand its own
skillset.
HOW IS AI BEING USED IN AUDTING?

1. AI's incorporation of Natural Language Processing enables auditors to analyze unstructured data,
includingtextual information from financial reports, contracts, and communication records
2. AI employs sophisticated algorithms for pattern recognition, allowing auditors to identify complex relationships
within Datasets
3. AI-powered predictive models can forecast financial outcomes, helping auditors assess the reasonableness
ofmanagement's projections and identify potential financial issues in advance.
4. Auditors can simulate various
5. scenarios and assess the potential impact of different risk factors on financial performance. This forward-
lookingapproach helps auditors develop risk mitigation strategies tailored to specific scenarios.
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REAL LIFE EXAMPLES OF AI INTEGRATED IN AUDTITING
 KPMG : The AI tool analyzed large volumes of financial data, identified tax compliance risks, and
provided real-time insights to tax auditor
 PwC: PricewaterhouseCoopers (PwC) utilized machine learning algorithms for fraud detection in
financial audits. The AI tool o analyzed transactional patterns, identified anomalies indicative of
fraudulent activities
 Citibank: The AI system analyzed transactional data, identified patterns indicative of risks,
andprovided dynamic insights for auditors. This application spanned multiple jurisdictions
where Citibank operates, showcasing the adaptability of AI in addressing global audit
challenges
 Toyota: AI algorithms analyzed production data, identified deviations in quality metrics, and
facilitated proactive quality control measures
WINS AND WEAKNESS OF USING AI IN AUDIT
THE WINS
1 Automating the Mundane
• AI excels at handling tedious tasks like data entry, verification, and document reviews. This
frees up auditors to dedicate their expertise to higher-level analysis and judgment
2 Enhanced Accuracy
• AI can analyze vast amounts of data much faster and more precisely than humans,
reducingthe likelihood of errors and omissions that can occur in manual processes.
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3 Sharper Risk Assessment
• AI can analyze vast troves of historical data on past risks and fraud incidents. These
insightshelp auditors develop a clearer picture of potential vulnerabilities within a
company
4 Deeper Insights
• AI can uncover hidden patterns and relationships within data sets, providing
auditors with a more comprehensive understanding of a company's financial health
5 Cost Reduction
• The efficiency gains from AI automation can lead to significant cost savings for audit firms. By
shortening audit durations and focusing resources on higher-risk areas, AI can contribute to a
better return on investment.
THE WEAKNESS
Black Box Decisions: Many AI algorithms can be complex, making it difficult to understandhow
they arrive at their conclusions. This lack of
transparency can raise concerns about the
explainability and reliability of AI generated
findings.
Data Dependence: AI is only as good as the data it's

trained on. Poor quality or biased data can lead to
inaccurate results and biased decision-making in the
audit.
Security Concerns: Integrating AI into auditing

processes raises data security risks. Sensitive
financial data needs robust protection against breaches or unauthorized access.
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Limited Judgment: AI excels at analyzing data and identifying patterns, but it lacks the human
ability for critical thinking, professional skepticism, and understanding complex business contexts.
Auditors still play a crucial role in applying judgment and interpreting results.
ROLE OF AI IN DETECTING FINANCIAL FRAUDS
A report by ISACA revealed that only a limited number of cases of fraud were identified by
internal and external auditors, with rates of 15% and 4%, respectively. Couple of reasons for
thesame are AUDIT FOCUS and FRAUD COMPLEXITY
Hence, there has been an increased need for focus on more achieving ways for the detection of
financial statement fraud, breaking away from traditional methods like Inspections, whistle-
blowersystems Internal controls and compliance programs
So understanding the role of AI in Fraud detection is looking into the future and to imagine the
future, let us revisit the past and have look at one of the biggest financial fraud of India: THE
SATYAM SCAM
Satyam Computers
Satyam Computer Services Ltd (Satyam) was founded in 1987 by Ramalinga Raju (Raju) and his
brother Rama Raju as a private company, The company became a skyrocket success. . It debuted
on the Bombay Stock Exchange in 1991 followed by a New York Stock Exchange listing in 2001.
The company earned the distinction of ‘India’s one of the most remarkable and entrepreneurial
companies’ from the World Economic Forum
THE CONFESSION
B. Ramalinga Raju, founder and CEO of Satyam Computers, announced all of a
sudden on January 7, 2009 that his company had been falsifying its accounts and doctoring the
books of accounts of the company for years
As per the confessions, company’s financial statements had overstated cash reserve of Rs. 5040
crores which did not exist, accrued interest of Rs. 376 crores, debtors Rs.
2160 crores, and understated liabilities of Rs. 1230 crores.
The confession was followed by Satya’ unsuccessful attempt to invest $1.6 billion in Maytas
Properties and Maytas Infrastructure -- two firms promoted and controlled by Mr Raju’s family
members. The Deal for acquisition was being signed to use software company’s non-existing
cashpile to buy two infrastructure firms belonging to the promoters.
Ironically, Satyam means "truth" in Sanskrit, but Raju's admission -- accompanied by his
resignation -- shows the company had been asatyam (or untruth), at least regarding disclosure of
itsfinancial performance to the investors, shareholders, clients and employees. The scale this
corporate fraudEnrichment
Students Skills was estimated at around
Board, Rs.
7000 crores.
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MODUS OPERANDI OF THE SCAM
Securities Exchange Commission (SEC) of the USA released two documents in April 2011
unfolding the modus operandi of the scam.
1. Creation of ‘Super User Log-in’

Certain employees were given ‘super user’ login password to access the company’s billing system.
Those employees, under directions from the then senior management created fake invoices
for services not provided and, in some cases, non-existent customers
2. Fake Invoicing
A total of 6,603 fake invoices were created in that five-year period
3. Boost in Revenue and Profits

The fake invoices entered the company’s financial statements, added $1.1 billion to the
financial statements filed by the company from fiscal 2004 through the second quarter of
fiscal 2009
4. Falsified Bank Statements generating false revenues, the next step was to show these as
cash receipts. To ensure that, the senior-management falsified bank statements that
showedhigher bank balances
5. Falsified Interest Income Earned from Deposit

To show that fictitious bank balances were earning interest income
HOW AI COULD HAVE PLAYED SIGNIFICANT ROLE IN DETECTING THE FRAUD
A. TEXT MINING OF DISCLOSURES
• Unusual Language Patterns: AI can analyze the language used in financial disclosures
to identify anomalies. In Satyam's case, the disclosures might have been overly optimistic
orused vague language to obscure the truth. AI could have flagged such discrepancies.
• Comparing Disclosures Over Time: Text mining can track changes in the language used in
disclosures over time. Inconsistencies between past and present disclosures, or sudden
shiftsin tone, could have indicated potential manipulation.
• Identifying Inconsistent Numbers: AI can compare textual descriptions of financial
performance with the actual numbers presented in tables. If there were contradictions
between how Satyam described their finances and the hard data, text mining could
haveexposed them.
• Corroborating with External News: Text mining can be used to compare a
company'sdisclosures with news articles or industry reports. If Satyam's disclosures
painted a significantly rosier picture than external reports, it could have been a sign
of trouble.
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B. USER LOGGING
While AI can't directly prevent user logins, it could have potentially identified suspicious activity
related to login attempts in the Satyam case, prompting further investigation. Here's how:
• User Behavior Analysis: AI can analyze historical login patterns for authorized users.
Deviations from these patterns, such as logins from unusual locations, times, or devices,
could be flagged. In Satyam's case, if the perpetrator (Ramalinga Raju) was logging in
outside of his usual patterns to manipulate data, AI might have identified it.
• Risk-Based Authentication: AI can be used to develop risk scores for login attempts. These
scores consider factors like location, time, device, and user behavior. High-risk logins
couldrequire additional verification, such as multifactor authentication. This could have
made unauthorized access more difficult in the Satyam case.
• Anomaly Detection in Login Attempts: AI can identify unusual patterns in login attempts,
such as a sudden increase in failed login attempts or attempts from blacklisted IP
addresses. This could indicate a brute-force attack or someone trying to gain unauthorized
access.
C. IDENTIFYING FAKE INVOICING

• Analyzing Invoice Patterns: AI can analyze vast amounts of invoice data to identify unusual
patterns. This could include:
o Invoices issued to non-existent customers or companies with suspicious characteristics.
o Inconsistencies in invoice details like pricing, quantities, or product
descriptionscompared to historical data.
o A sudden increase in invoices from new or unfamiliar vendors.
• Text Mining of Invoice Content: AI can analyze the text within invoices to identify
inconsistencies. For example:
o Inconsistencies between the invoice content and standard product descriptions.
o Unusual phrasing or language patterns in the invoice text.
o Inconsistencies between the invoice content and information in other company
databases (e.g., customer contact information).
• Network Analysis of Transactions: AI can analyze the network of transactions associated
with invoices. This could involve:
o Identifying invoices with unusual payment pathways or destinations for funds.
o Flagging invoices connected to shell companies or known fraudulent entities.
o Highlighting invoices with a mismatch between the recipient of goods and the entity
paying the invoice.
By combining these methods with traditional auditing practices, financial institutions can
significantly improve their ability to detect and prevent fraudulent activities
CONCLUSION
Overall, AI is a powerful tool that can transform the auditing profession. While it won't replace
auditors entirely, it will likely change the skillset needed to be successful in this field. The future
auditor will likely be someone who can leverage AI to improve efficiency and focus on areas
Students Skills
requiring human Enrichment Board,
expertise and (BOS- Operations)
judgment. HYDERABAD
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Vidya Upskilling the Workforce-
Pindiporlu Equipping the Auditors for
SRO0786938 the AI Driven Audit
HYDERABAD Landscape
Upskilling the Workforce- Equipping the Auditors for the AI Driven Audit Landscape
Disclaimer: Our goal is not to compete with AI, but to complement it.
 Introduction:
Imagine a world where humans and artificial intelligence don’t compete, but collaborate to achieve
extraordinary results.
We are at the crossroads of technology and human ingenuity, and the question is not how we competewith
AI, but how we complement it in our audit profession, which is experiencing a paradigm shift, owing to the
pace of technological advancements.
This evolution brings both challenges and opportunities, requiring a revaluation of traditionalauditing
practices and a proactive approach to upskilling the workforce.
In this presentation, we'll explore how collaborating with AI, rather than competing against it, can leadto
groundbreaking advancements in the field of Audit by enhancing efficiency and accuracy.
We'll look at real-world examples, discuss best practices, and envision a future where AI and human
intelligence work hand in hand.
This paper explores the necessity of upskilling auditors to excel in an AI-driven audit
environment, by answering the following questions:
Why AI in Audit What are the essential skills to be learnt How to equip oneself with those skills
1. Purpose and Relevance of AI in Audit
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i) Enhanced Efficiency and Accuracy:
It automates the redundant tasks such as data entry, data extraction, reconciliation and vouching
eroding the risk of human errors.
Which in turn enables the auditor to focus on strategic analysis and decision making.
ii) Revolutionizing Risk Assessment and Fraud Detection:

- AI enables auditors to transition from traditional sampling methods to a more continuous, data-driven
approach to risk assessment.
- By analyzing entire datasets, AI enhances accuracy and thoroughness, uncoveringanomalies and
patterns that traditional methods might overlook.
- This shift empowers auditors to respond swiftly to emerging risks with real-time insights,crucial for
navigating today's complex business environments.
iii) Advanced Data Analysis:

AI enhances data analysis in several ways:
a) Pattern Recognition: AI can detect patterns and trends in large datasets that may not be
immediately apparent to human auditors.
b) Anomaly Detection: AI algorithms can identify unusual transactions or deviations from
expected patterns, flagging potential issues for further investigation.
c) Predictive Analytics: AI can predict future trends and potential risks based on historical
data, providing auditors with valuable foresight.
iv) Data Integration:

AI can analyze vast amounts of data from multiple sources, providing auditors with a more
comprehensive picture of an organization’s financial health.
v) Enables continuous Auditing:

Continuous auditing is on the rise with AI-powered tools enabling real-time monitoring of financial
data.
This advancement facilitates ongoing risk assessment and a proactive auditing approach.It also bolsters
the transparency.
2. Mastering the art of AI: Essential skills for Modern Auditors
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Following are the skills that an auditor has to hone in order to equip himself with
theAI-driven audit landscape:
TECHNICAL SKILLS:
i) Data Analytics and Interpretation –
- Auditors need:
To understand the basics of AI and machine learning algorithms, data analytics, and
cybersecurity. To master the data analytics tools and techniques to interpret large data sets
efficiently.
To be skilled in data visualization and statistical analysis to draw meaningful insights from
AI-generated data.
For instance, using data analytics tools like Tableau or Power BI to analyse financial data
trends,identify anomalies, and generate visual reports for client presentations.
ii) Awareness of the following:
Automation Cyber Security Ethical Considerations

Familiarity with AI With increased reliance on AI systems can perpetuate
technologies and automation digital data, understanding biases and ethical concerns,
tools used in auditing processes. cybersecurity risks and auditors must be vigilant in
measures to protect client data ensuring that AI tools are
For instance, familiarity with and financial information is used responsibly and in
AI-powered audit tools such as crucial. compliance with ethical
KPMG's Clara or EY's DnA standards.
(Digital n Assurance) for For instance, Understanding
automating repetitive audit GDPR compliance For instance, Ensuring AI
tasks like data validation and requirements when auditing algorithms used in audit
risk assessment. multinational clients with data processes are unbiased by
stored across borders, regularly reviewing and
ensuring data protection validating data inputs to
measures are in place to mitigate potential
prevent cyber threats. algorithmic biases in
decision-making.
iii) Regulatory Knowledge:

Auditors need to stay updated with regulatory changes and compliance requirements relevant to
AI-driven auditing processes in India.
For instance, keeping abreast of changes in India's Companies Act or Income Tax Act
amendmentsimpacting audit procedures and disclosures required in financial statements.
iv) Collaboration with AI systems:

Students Skills skills
Developing Enrichment Board, (BOS-
to effectively Operations)
complement HYDERABAD
with AI systems, leveraging their capabilities while
maintaining oversight and control over audit processes.
87
For instance,
Integrating AI-driven risk assessment tools with traditional audit methodologies, leveraging AI's
speedand accuracy while maintaining human oversight to ensure audit quality and compliance.
 SOFT SKILLS:
v) Critical Thinking and Problem Solving:

Despite the automation of many tasks, auditors must apply critical thinking to:
a) Evaluate AI outputs
b) Question assumptions
c) Make complex auditing decisions
d) Identify patterns and potential biases in AI models
e) Interpret Results.
For instance, assessing complex financial transactions where AI tools highlight discrepancies,
applyingcritical thinking to determine root causes or potential fraud indicators beyond
automated alerts.
vi) Communication Skills:

Auditors must be able to communicate
a) Complex audit findings,
b) Implications of AI-driven analysis and
c) Recommendations,
clearly to clients and non-technical stakeholders.
For instance, presenting audit findings to stakeholders, translating AI-generated insights into
actionablerecommendations with clarity and relevance to the client's business goals.
vii) Adaptability:
Given the rapid advancements in AI and technology, being open to continuous learning, updating
theirskills and adapting to new tools and methodologies is essential.
For instance, enrolling in courses on AI applications in auditing through platforms like

Coursera orattending workshops on emerging technologies to stay updated with industry trends.
viii) Client Relationship Management:

Auditor must be able to
a) Enhance skills in client interaction,
b) Understand their business processes and
c) Build trust by providing value-added insights beyond automated reports.
For instance, A CA uses AI to analyse industry benchmarks and financial ratios, providing a client
with customized insights on cost-saving opportunities and competitive positioning,
strengtheningclient relationships through strategic advisory services.
-
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3. How to learn these skills?
There are various ways to hone the required skills. Some of them are:
i) Government Initiative:
- IndiaAI Mission launched by GOI is a comprehensive national-level program to democratise
and catalyse the AI innovation ecosystem in the country.
- It aims to:
a) Improve data quality
b) Develop indigenous AI capabilities
c) Enable industry collaboration
- Establishing Centres of Excellence (COEs) across the country to
a) Foster innovation
b) Provide training
c) Create awareness
d) Organise educational programs and
e) Establish AI literacy.
ii) AI in ICAI:
- Our own ICAI has recently launched a website i.e https://ai.icai.org which contains slew
of resources, articles, videos and guides for AI insights.
- It aims to encourage members to learn AI to enhance various activities like taxation,
auditing, governance and compliance.
- It also conducts number of educational activities like, quizzes, webinars, certification courses,
workshops and conferences.
- “ICAI Innovation Summit 2024 – Transforming Accounting, Audit, Tax and Governance” is
going to be hosted by our own Hyderabad Branch this July 16 & 17.
89
iii) ICAI Digital Learning Hub:
The website https://learning.icai.org offers various courses on AI and Machine Learning for
members.
iv) Institute Certifications:

- ACCA (Association of Chartered Certified Accountants):
Offers courses and resources on digital transformation and AI in auditing.
- CIMA (Chartered Institute of Management Accountants):
Provides learning resources and certifications on digital and AI technologies in finance and audit.
- Certified Information Systems Auditor (CISA):
Offered by ISACA, this certification focuses on information systems audit, control, and security.
90
- Certified Data Analyst (CDA):
Various institutions offer certifications in data analysis, which is crucial for AI-driven audits.
- Certified Fraud Examiner (CFE):
This certification, offered by the Association of Certified Fraud Examiners (ACFE), includes training
on the use of AI in detecting fraud.
v) Big 4 training platforms:

- Several organizations have successfully implemented upskilling initiatives to prepare their
auditors for the AI-driven landscape. For instance:
A) Deloitte: Deloitte has developed an AI-focused training program for its auditors,
coveringareas such as AI fundamentals, data analytics, and advanced auditing
techniques.
The program includes hands-on workshops and real-world case studies to enhance practical skills.
B) KPMG: KPMG's Clara offers a comprehensive curriculum on AI and digital

transformation, providing auditors with the knowledge and tools to integrate AI into
theirauditing practices.
The academy emphasizes the importance of ethical considerations and regulatory
compliance.
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C) PwC: PwC has established a Digital Fitness App that allows auditors to assess their
digitalskills and access personalized learning resources.
The app includes modules on AI, data analytics, and cybersecurity, enabling auditors to
upskillat their own pace.
D) EY Badges:
Objective: A global credentialing program that offers digital badges in various skill areas,
including AI.
Courses Offered: Machine learning, AI ethics, data science, and more. Features: Self-paced
learning, practical assignments, and the ability to earn recognized credentials.
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4. Challenges in upskilling:
While upskilling auditors is essential, several challenges must be addressed:
A) Resource Constraints: Smaller audit firms may face financial and logistical challenges
in implementing comprehensive upskilling programs. Collaboration with industry
partners andleveraging online resources can help mitigate these constraints.
B) Resistance to Change: Some auditors may be resistant to adopting new technologies
andmethods.
Addressing this resistance requires clear communication of the benefits of AI, as well as
providingsupport and incentives for upskilling.
C) Ensuring Relevance: Upskilling programs must be regularly updated to reflect the
latestadvancements in AI and auditing practices.
Continuous feedback from auditors and industry experts can help ensure the
relevance andeffectiveness of training initiatives.
D) Balancing Automation and Human Judgment: While AI can automate many auditing
tasks, the importance of human judgment and professional skepticism remains
paramount.
Upskilling programs should emphasize the complementary roles of AI and human auditors.
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 Conclusion:
The integration of AI in auditing presents significant opportunities for enhanced efficiency, accuracy,
andstrategic decision-making.
By leveraging AI's power, we avoid a futile race. Instead, we synergize, creating innovative solutions
thattranscend the limitations of human or machine alone.
To thrive in this evolving landscape, auditors must upskill in areas such as data analytics,
cybersecurity, and AI technologies, while also developing critical thinking, communication, and
adaptability.
Continuous learning through various platforms and industry collaborations is essential.
By effectively collaborating with AI and maintaining professional oversight, auditors can lead the way
indelivering higher quality audits and strategic insights, ensuring their continued relevance and value
in a dynamic business environment.
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Generative AI
S. Samartha
SRO0755734
HYDERABAD
AI Powered Audit:
Generative
Introduction
“Once a new technology rolls over you, if you are not the part of the steamroller, you are part ofthe
road.” – Stewart Brand
This is how Auditing and finance has started to be rolled by the emerging technologies such as
Artificial Intelligence.
The three most important qualities required while performing an audit:
is being powered by Artificial Intelligence and such integration of Audit and AI are termed as AI
Powered Audits. These use advanced algorithms, machine learning and data analytics to
automate and improve various aspects of the auditing process. It covers examination of
financial records, identification of anomalies, risk assessment, process automation and
generation of audit reports.
A higher innovation into the world of AI is Generative AI. It refers to deep-learning models that
can generate high-quality text, images and other content based on the data they were trained
on. A recent sensation in this domain is Chat GPT – Open AI. It is powered by its *largest
language model wherein it can generate poems, learn the codes of different software programs,
analyze
Studentsdifferent molecules and
Skills Enrichment digest(BOS-
Board, different varieties of data. Likewise, Omnia by Deloitte
Operations) is
HYDERABAD
a Generative AI tool introduced specifically for the purpose of auditing.
95
*Largest language model (LLM) – It is a program that can recognize and generate texts, among
other tasks. It can achieve general-purpose language generation.
Research Methodology
In simpler terms, Generative AI collects the works from Wikipedia or any other sources and
“LEARNS” to encode a simplified representation of training data and draw from it to create a
new work that’s similar, but not identical to the original data.
SIMILAR BUT NOT IDENTICAL
Given below depicts the evolution of generative AI over the years:
There is a thin line of difference among these.

- Artificial Intelligence: Performs tasks that typically require human intelligence.
- Traditional Machine learning: Artificial Intelligence + Makes predictions or decisions
ongiven data.
- Generative AI: AI + Machine Learning + generate new data that RESEMBLES the
givendata.
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How is it used in Audits??
The concept of digital transformation process into audits (also known as digital audits)
commenced 4 years ago. generative AI has also improved the various processes under anAudit.
Let us understand the utilization of it to achieve the goals of audit (Important steps of anaudit
are being covered):
Goal 1: ENGAGEMENT SETUP
The records with relation to the client acceptance such as engagement letter, proposal to auditors
and so on, are analyzed using document intelligence by extracting the relevant texts
from the documents uploaded. It is also called a facilitator. Using its Variational Autoencoders
(VAE) it encodes the relevant regulatory requirements like SA 210 and SA 300 and decodes the
input data to evaluate its correctness as per the standard.
Apart from the above, document intelligence also helps in translating the records in multiple
languages for the ease of users, hence eliminating the barriers of different countries. Also helps in
organizing and describing the data for ease of auditors.
Goal 2: RISK ASSESSMENT
Two neural networks termed as a Generator and Discriminator work together to assess theriskof
the input data. The Generator creates the summarized content from various questions posed by it
on inherent and control risks and the content summarized is evaluated by Discriminator which
ultimately weighs the impact of risks.
For example, a tool named Auditor’s Desk which uses Generative AI differentiates risks
according to various areas of the business and poses questions to evaluate the risk level. Asseen
below, the head of control risks are bifurcated into following parts and provides an assessment of
whether the risk is Low, Moderate or High.
97
The below picture is a sample where the questions are posed to assess the risk:
The perception of risk mentioned above is the analysis through which the tool evaluates theweightof
risk based on auditor’s estimation about the company, wherein:
1 – Completely agree, 2- Somewhat agree, 3 – Neutral, 4- Somewhat disagree and 5 –Completely
disagree
Another technique used by generative AI for risk assessment is by detecting anomalies in the input
data. Anomalies are the deviations from business specific patterned flow of the data. It helps in
fraud detection by acting as an Integrator. It also initiates automatic evidence gatheringand matching
with the input data to evaluate the risk. As seen in the graph below, the pattern of 98% of thedata is
towards the
Students same
Skills direction whereas
Enrichment two circumstances
Board, (BOS- Operations)(circled in red) are deviating from thepath,
HYDERABAD
hence detecting the risk element out of the group.
98
The anomaly detection technique by Generative AI is used by retail businesses and e- commerce
businesses, especially for website owners. Likewise, the questionnaire technique can be used for
business under manufacturing. Generative AI also uses many techniques toassess the risk
depending on the type of business.
Goal 3- AUDIT MATERIALITY
After the risk assessment process, to contemplate the audit materiality, scenario analysis is
performed by Generative AI wherein various stress conditions are applied on the financial data to
evaluate the performance of the entity during adverse conditions. Each item of the financial
statement is judged using the two networks of it. After this the materiality is assessedat the
following levels (in general):
- Planning materiality or Overall materiality which is at financial statement level.
- Tolerable error or Performance materiality which is at Account level.
- Trivial or De minimum materiality which is at transaction level.
Goal 4 – SAMPLING AND ANALYSIS
The most used method of sampling without AI is Random Sampling. Generative AI initiates other
methods of sampling such as systematic sampling, stratified sampling, and cluster sampling.
Generative AI can perform the stratified sampling method which is the most difficult methodand
helps in enhancing the reliability of data especially in heterogeneous populations.
The picture below shows how the stratified sampling is performed by the Generative AI by first
selecting stratums that is data of similar kind out of the population and then selecting the most
reliable sample out of the samples using its Discriminator network (helps in evaluation).
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The samples selected are considered as the core inputs for the audits with which smart matching
is done wherein numerical data is automatically cross verified and referred withfinancial statement
to predict and ensure on accuracy, efficiency and effectiveness.
Goal 5 – FINANCIAL REPORTING AND DISCLOSURE
An automated report is generated wherein Generative AI
can:
1. Produce narrative summaries of audit findings.
2. Develop real-time dashboards that visualize audit progress and findings.

3. Automatically perform compliance checks.
4. Ensures consistency in the tone and structure of Audit reports and Financial
Statements.
Features of Generative AI specific to Audit
1. ChatAI – Grants access to subject matter expert knowledge to auditors. It promotes the
culture of continuous learning within the audit profession leading to better audit
outcomes.
2. DocAI – Extracts Information from relevant documents like financial statements,
contracts, invoices etc. It also responds to questions based on this, which saves
valuable time and resources.
3. ReviewAI – Automatically reviews audit documentation and suggests improvements,
saving time and ensures consistency and accuracy.
4. RiskAI – Evaluates external information sources for potential risk events and develops
effective risk management strategies to protect business operations.
5. ScribeAI – To create polished drafts from notes taken during audit process. It ensures
Audit documentation.
100
Opportunities
Streamlines Tasks by automating repetitive and time-consuming tasks like data

analysis, pattern recognition, report generation and so on freeing up the auditors to
focus on more complex and value-added activity. It also initiates real-time audit
andnot periodic reviews.
Insightful Data Analysis – It can analyze vast amounts of financial data, identify
patterns and generate visuals for effective client interactions. It can simulate
various scenarios and their potential impacts.
Risk Mitigation – It helps in detection of unusual or suspicious activities and

uncover potential fraud. It can integrate data from multiple sources, providing more
holistic view of the organization’s risk landscape.
Compliance and Standards – Assists in performing audits in compliance with

professional standards, regulatory requirements and internal policies. Further, itcan
maintain detailed audit trail, providing clear documentation of audit process and
decisions for regulatory review.
Risks
Data Privacy and Security– There is a potential for confidential data to be breached
as it has access to vast amount of information. Ensuring compliance with Global Data
Protection Rights is essential but challenging.
Lack of transparency and explain ability – It is challenging for auditors to explain how the
AI arrived at specific conclusions which is critical for transparency due to “black box” and
deep learning.
Inherent Biases – It can inherit biases present in the data potentially leading to unfair
or discriminatory outcomes. It is very problematic as UNBIASED judgements are
required in audits.
Implementation costs and integration with existing systems – It is expensive for developing,
implementing and maintaining Generative AI. Integrating the tool with existing audit software
or process is time consuming and complex. Ensuring seamless integration is achallenge.
101
Statutory guidelines and audit standards governing use of Generative AI in audits.
There are no specific global standards or guidance notes that exclusively govern the use
Generative AI in Auditing and Accounting. However, various professional bodies have provided
frameworks and guidance that can be applied to the use of AI and emerging technologies in this
field. Some relevant frameworks are:
1. Technology Working Group – It was introduced by the International Auditing and
Assurance Standards Board (IAASB) which explores the impact of emerging
technologies including AI on auditing. For example, in 2020 it has issued a guideline on
how the audit documentation can be in line with ISA 230 – Audit Documentation while
using the AI.
2. International Code of Ethics for Professional Accountants – This has been issuedby
International Federation of Accountants (IFAC) which includes that apply to the useof
technology, emphasizing integrity, objectivity and professional competence.
3. ICAI has also issued Guidance Note on Audit of Internal Financial Controls
over Financial Reporting which discusses the use technology in auditing internal
controls.
Conclusion
While generative AI has the potential to transform the audit process by improving accuracy,
efficiency and effectiveness, it also presents several disadvantages and challenges. We as auditors
need to be aware of such issues and mitigate them by taking proactive steps. It is important to
balance to maximize the positive impact of AI in Auditing as “The excess of
anything is dangerous”.
102

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At the Helm

Members of the council of ICAI

CA. Ranjeet Kumar Agarwal CA. Charanjot Singh Nanda

Board of Studies, ICAI

CA. (Dr) Rajkumar S Adukia CA. Sridhar Muppala

CA. Dayaniwas Sharma

Managing Committee Members of Hyderabad Branch of SIRC of ICAI

CA. Rama Rao Karumanchi

CA. Deepak Ladda CA. Saran Kumar U

T. Shashi Kiran Reddy K. Dasaradh Kumar MD. Mustafa Raza

P.Abhinay P. Vennela Lakshitha Jain T. Vamshi

01:00PM-02:00PM Lunch Break

04:00PM-04:15PM Tea Break

10:00AM-10:45AM Motivational Session: II

3. Funding the future: How CA’s Bridge the Gap Between

12:00PM-12:15PM Tea Break

12:15PM-01:00PM Special Session: III

 Regulate the profession of Accountancy

1. Auditing: This session likely covers topics related to

 environmental social and governance considerations in audit,

2. Taxation: Focuses on taxation of

 Chartered Accountants: Navigating The Startup Ecosystem

 Power of AI – Data Extraction and Analysis for Efficient Audit Procedures

CA. Ranjeet Kumar Agarwal

On this context, this National Conference of CA Students provides a platform to explore

I extend my best wishes for a successful and fulfilling Conference.

CA. Ranjeet Kumar Agarwal

A comprehensive education system equips students with a strong academic grounding,

The Board of Studies of ICAI organises CA Student Conferences nationwide, offering

CA. Charanjot Singh Nanda

“हर दिन एक नया सबक िसखाता है ,

CA. (Dr) Rajkumar S Adukia

Dear Esteemed Participants,

Wishing you an enlightening and remarkable conference.

(CA. Sridhar Muppala)

Vice Chairman, Board of Studies

The Institute of Chartered Accountants of India (ICAI)

CA. Dayaniwas Sharma

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

Dear Future Chartered Accountants,

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

Best wishes for your future endeavors.

CA Ponugoti Ravi Sankara Reddy

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

Wish you all the very best.

CA. Chinna Sita Rami Reddy A

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

Dear Future Members of my esteemed profession,

Be Happy – Keep Laughing! 🌟

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

CA Naresh Chandra Gelli

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

I wish the Two Day CA Students’ Conference all-round success.

With best wishes,

CA. CHENGAL REDDY RAMIREDDYGARI

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD

 Inviting eminent professionals to chair the technical sessions;

Students Skills Enrichment Board, (BOS- Operations) HYDERABAD