In conversation with CMA Harshad Deshpande, leading Cost Accountant, Insolvency Professional and Registered Valuer
Let’s begin from the very beginning. How was life in your formative years?
I belong to a lower middle-class family from Pune in Maharashtra. I grew up in a typical Puneri Wada (clustered house with a courtyard) which is a defining feature of the old city. From 1st till 4th standard, I studied in an institution where my mother worked as a teacher. It was more or less like a municipal school. During primary school, I was consistently a topper. However, my secondary school performance was average in comparison.
My father had a small business in close vicinity, and it was his wish that I puruse the Commerce stream and support the household financially as early as possible. My 10th results were relatively good, and even though I was eligible for enrolling into the science stream, I choose commerce to honour my parents’ wishes. The quintessential middle class boy that I was, money held little attraction for me. I didn’t have any fancy hobbies for obvious reasons; I neither had the resources nor support to afford extravagance of any kind. The best part was I was not unhappy about my situation. My idea of recreation was playing Kho-Kho at the local club in the evenings, and I was happy in my notions of indulgence.
How did cost accountancy become your chosen calling?
Well, that’s quite a story. Let me explain in brief. 11this generally considered an easy-going year in college and I took that perception to heart. I relaxed way too much, to the extent that I came very close to flunking in French & Maths. Fortunately, I woke up in good time and did all the damage control in the final exams. Ever since, I became a diligent student. 12th results were good, in line with my expectations. Most of my friends opted for CA, and I was thinking on similar lines.
But there was a hitch. Since I helped my father in his business, I was not sure I would be able to afford the time for the mandatory articleship, as also the cost of coaching. At that juncture, I was introduced to the CMA course (erstwhile ICWAI). Foundation exam fees were only Rs. 800 and no registration was necessary. What’s more, there was option to appear earlier than scheduled for the exam. I decided to give it a go. In 6 months, I cleared my foundation exams with very good grades. This was the first time my batchmates noticed me, so did the teachers who had presumed I was only an imposter following the trend! The new-found respect I earned was a big confidence booster, and more importantly, I developed great affinity for core subjects like Cost Management, Stock Markets, and Strategic management.
During CMA finals, I began my articleship although it was not mandatory at that point of time. It was a God sent opportunity to get a ring side view of the Corporate World. I used to complete my audit work quickly and utilized the spare time to help the client staff. This gesture made me quite popular among clients and I was in great demand at every office. One day, my senior came to know about the additional services I was provided without any billing, and I was put on an intensive session on the fundamental principles of Auditing, Maker/Checker rule, and professional ethics.
Soon, I became a pro at Excel spreadsheets and entered the hall of fame as an Excel Trouble Shooter. I fetched data and responses at a lightening pace to the utter dismay of my colleagues and seniors. At the client’s place, everyone knew me by first name – from the security guard to the CEO - and many staffers realised I was not an employee only when I was shifted to some other client place. I learned the art and science of securing key information by virtue of enduring people relationships, which is crucial in any audit task.
In fact, my CMA Final success was a grand celebration at a client’s place, such was my deep connect with the people there. I was immediately offered an assistant manager position with an Indian MNC at a decent salary. In quick succession, I got an even bigger offer at another MNC client. The money was indeed tempting, but the urge of doing something different on an entrepreneurial route was stronger.
And what was this path?
After deep contemplation, I decided not to join any corporate and continued working at my firm as a Professional on assignment basis. In good time, I realised that one’s technical skills count only half on the professional front; the most critical skills are those that result in quick client acquisitions and rapid business development. To get a single client, one need to have all-round skills and capabilities, resources, infrastructure, and most importantly credentials.
Credentials include academic qualifications as well as relevant experience. Experience is a function of time so it was growing naturally for me. I decided to acquire additional qualifications and given the exemptions available and similar syllabus, CS was obvious choice. I completed CS in consecutive attempts while working and followed it up with CISA (USA). To add Global exposure and Chartered credentials, I also did CIMA (UK), which is hailed as the mother Institute of all Management Accounting bodies worldwide.
Now, I had five qualifications from three different continents, having mastered the techniques and tricks to crack tough exams. In December 2016, I heard that the government was due to launch the Insolvency Professional exam. Honestly, I had never heard of or worked in this domain; nevertheless, I decided to pursue on the back of my academic track record.
In the first attempt, I failed with a narrow margin of 0.25 marks short which caused me a lot of emotional pain. After a series of attempts (may be 8), I finally cleared this difficult exam in April 2017. My qualification as an “Insolvency Professional” opened new avenues for me in Banking and Insolvency laws. This qualification was invaluable given the economic downturn, and ups and downs seen earlier, I reckoned it was a great addition to my professional portfolio.
In reality, It did much more than expected. Armed with the blend of operational and commercial skills, I became adept at resolving issues at stressed corporates & NPAs. This was a great exposure into decision making and stakeholder management. I was soon empanelled with Banks and Financial Institutions and word of mouth publicity is bringing in new opportunities every day, to this day!
In 2018, I became one of early entrants into the “Registered Valuer” domain. Given the early bird benefit and a booming network of professionals and corporates, this was like a “Power Play” of my growth story. I have fond memories of doing hundreds of assignments in a year.
On 1st March 2020, I was qualified as Independent Director by virtue of which I help corporates with my rich and varied experience during the course of my professional journey. I also started my Law (LLB) preparations in the pandemic year, and I am now into the final year.
I am invariably asked a question, “You have all the professional qualifications in the finance domain except one, which is CA” Frankly, with due respect, I have never felt the need for pursuing CA, nor regret for not pursuing CA. Way more important than acquiring credentials is to put them to use effectively and efficiently, the degree doesn’t matter as much as its application!
What in your reckoning are the prospects for CMAs in the emerging future led by innovation of AI, ML, and other disruptive technologies?
Technological advancement can definitely cause disruptions in the way the things are happening today. Considering the strategic role CMAs play, these advancements will enable CMAs to perform their roles even better. AI per se will not render anyone unemployed, but the person knowing AI can definitely make a person not knowing AI unemployable. Hence, it is imperative to learn emerging technology and use it effectively. Given the pace of advancements, there has been a humongous growth in the availability, quality, credibility and timeliness of data. CMAs, with their hands-on expertise on Data Analytics, can deliver actionable information to enable and empower business decision makers across levels and designations.
Which are the areas where CMAs need to move up the value chain as value creators?
I would say, CMAs can gainfully get better at the following to carve a niche as value creators for organizations across diverse verticals and domains.
Data Analytics: Enhance skills in data analysis and leverage tools like Python or Excel.
Business Intelligence (BI): Create interactive dashboards for better decision-making.
Scenario Modeling: Develop sophisticated models to assess business scenarios.
Strategic Cost Management: Focus on value drivers and cost-saving initiatives.
Sustainability Reporting: Integrate sustainability metrics into financial reporting.
You have worked in both academia and industry. How is the experience on both fronts?
I have always sensed that both experiences complement each other. The more strong you are academically, the better equipped you are on the job, while on the job insights bring purpose and clarity to your academic explorations. Perhaps, that is why I chose to be teacher who remains a lifelong student by choice.
Your profile is pretty strong on valuations and insolvency. Readers would like to know a few of your actionable insights into both – in terms of work done and overall observations in the Indian context...
Since 2018, I have focused ONLY on Insolvency & Valuations. I have done 18 assignments as an IP & majority have been concluded on a positive note. Handling 1500 homebuyers in the Lavasa case was an experience of a surreal level. I have penned “My Lavasa story” based on my experience which was published in the IPA magazine. Given individual & cross-border Insolvency knocking at the door, I sense this professional sphere becoming the epicentre of action for people like me, who like to horns with new challenges.
Could you elaborate on the interesting research projects you have undertaken – cost of coins, charkha/looms and dental/medical education...
It was a matter of great fulfilment for me working for the Nation and common man in all the projects you mention above. Back in 2004, when I had just qualified, I was made part of a research group tasked with the challenge of finding the real cost of medical education. A committee was set up headed by A.R. Jahagirdar, a retired High Court Judge, to examine the fees charged by medical and dental colleges. Post submission of our research report, the fees charged by colleges dropped by as much as 50-60 %. Following this pathbreaking research, I was made a coveted member of the Fee Fixation Committee of Govt of Maharashtra.
Around 2012, I was part of a Applied Research Project to find of Cost of Coins manufactured by India Government Mint. This time, I was leading the team. Sovereignty and confidentiality does not allow me to divulge details, but you can gauge many radical changes in coins ushered in by the Government of India post our research. Our report finds appreciation in the minute books of the Ministry of Finance.
Your passion areas include kho-kho and social service stints with NGOs…
I have participated in many state level Kho-Kho championships. This sport, although much underrated, is a true test of body and mind agility. As a member of a Pune-based social welfare organization and NGO, I have participated in various social activities like helping people disrupted by natural disasters e.g. Gujrat Earthquake, Floods in Maharashtra. During Covid, with the help of well wishers, we paid exam fees for more than 100 + students and make sure they appeared for the exam. As a member of Fee Fixation Committee of Government of Maharashtra, I use my cost management skills to make sure students are not burdened with exorbitant fees.
What are your plans both on personal and professional fronts?
Today our firm has five partners spread across three offices. We have made seamless natural extensions into Accounting, Audit & Tax. Our team is a good mix of CAs, CMAs, CSs, Insolvency Professionals & Registered Valuers with rich experience and expert knowledge in respective spheres. It is our vision and mission to to be the Numero Uno service provider for niche, value-added offerings including cost & management accounting, insolvency & bankruptcy laws, and valuation services.
We would soon launch the HSD Academy to help students and professionals enhance their employability. Armed with more than ten professional qualifications and following two decades of experience, I feel I should devote time and attention to help GenZ become globally competitive.
Any other thought or advice which you like to share with CMAs of the younger generation in particular…how should they approach their career – how should they decide the employment vs practice question etc..
Gen Next needs to apply deeper thought on studying all emerging avenues, disruptive tech developments, evolving business models, and radical changes in consumption pattern of goods and services and behavioural patterns of consumers to gradually but surely move up the value chain of decision making.
I would also like to urge members and aspirants of my fraternity to learn and adopt the entrepreneurial mind set without succumbing to the lure of short-term opportunities. ‘Aladdin’ must step of the cave to conquer seemingly distant wonderlands with his 'Magic Lamp'. The conclusion of any exploration should be fulfilling, else it is not an exploration!
