Modern Accounting Concepts in Kautilya's Arthasastra By Anjan Kumar Bhattacharya

It is a matter of great satisfaction to me that Prof. Anjan Kumar Bhattacharyya is presenting the results of his studies in the Arthasastra of Kautilya from the points of view of trade, commerce and industry. Only a year back, he published similar studies in the Mahabharata which has been well received by the world of scholars.

The Arthasastra of Kautilya is a practical compendium of state-craft based upon all the ancient contributions on the subject not forgetting the special requirements of the Morian epoch in particular, naturally, trade, commerce and industry formed an important item in this work. Since its publication during the early years of this century, its diverse aspects have engaged the attention of modern scholars and the results of their studies have been published in the form of independent books and articles.

Prof. Bhattacharyya has presented the materials found in the Arthasastra on the subject of his own interest. He has instituted a thorough comparison between the ancient theories with those of the modern epoch and has arrived at sound conclusions that concepts of Income, Expenditure, Capital and Auditing, generally known to be of Modern Western Origin, have been traced in Kantilla’s work. This is no mean achievement on the part of the young scholar who has inherited a love for ancient wisdom from his forefathers and has imbibed a modern critical outlook through his University education-a rare combination indeed. His subsequent studies and researches, no doubt, have enriched his insight and knowledge to a great extent.

May he be endowed with a long, happy and prosperous scholarly life to unfold the hidden treasures of Indian thoughts to the World at large.

Born in a family of renowned teachers, professors- pandits, mahamahopadhyayas and mohantas, Prof. Anjan Kumar Bhattacharyya was brought up in an atmosphere of ancient Indian tradition and culture. Subsequently, as he came out with flying colours from the University of Calcutta, as a Master of Commerce, he was appointed a teacher in Accountancy and Auditing in a Calcutta College of long-standing repute, namely, Heramba Chandra College (formerly, City College, South Calcutta). He has attained wonderful success as a teacher and has attracted the respects from one and all of his students. During the recent past, he has studied Sanskrit and started research work on Ancient Indian Literature, a versatile educationist as he is. His outstanding research work entitled "Modern Commercial Concepts in the Mahabharatam" has been highly praised by scholars all over the World. He has participated in a number of conferences on oriental and modern managerial studies. The lectures delivered and papers presented by him in those conferences were praised by all. Some eminent educationists consider him to be an "appropriate genius" for such inter- disciplinary research works. The present book is the outcome of his most sincere and devotional research work.

I am extremely happy to present to the academic world yet another outstanding research work entitled "Modern Accounting Concepts in Kautilya's Arthasastra", of Prof. Anjan Kumar Bhattacharyya, after his first work entitled "Modern Commercial Concepts in the Mahabharatam", which was accepted by scholars all over the world. The present monograph, I think, is a desideratum towards the uplift of modern Indian education and culture. This work is primarily meant for the scholars, researchers and students in field of commerce-education in general, and of Accountancy in particular.

It may be mentioned here that though Kautilya's Arthaśāstra was brought into light as far back as in 1911 A.D., still, an approach directed towards an investigation of the so called modern Accounting concepts including the concepts of Costing and Auditing embodied in it was lacking. This work of Prof. Bhattacharyya, so far as I know, appears to be the first of its kind and, I think, it will surely attract the attention of the educationists and researchers in this field.

The Arthasastra of Kautilya is commonly considered to contain some political and economic concepts for the good and efficient administration of the kingdom together with some advice to the king regarding the social laws, customs, rules etc. and also regarding warfare techniques. Some research works have been undertaken and published on the political, social, economic and legal concepts contained in Kautilya's Arthasastra. But, Prof. Bhattacharyya has explored a novel area of this ancient Indian masterpiece dealing with some basic concepts of accounting, costing and auditing embodied in it.

Arthasastras are generally considered to contain some economic concepts, political thoughts and rules, laws and customs governing social events like marriage, transfer of property, receipt and repayment of loan etc. and also some administrative advice to the ruler or the King. This is true to the previous Arthasastras like those of Brhaspati and Manu. But Kautilya's Arthaśāstra contains not all these alone, it includes within it something more also. (See Appendix-A). In fact, Kautilya's Arthaśāstra is a vast book covering almost every branch of knowledge. That is why Dr. Vincent Smith said "This is not a book, but a library by itself."

Not much is known about Kautilya, the author of Arthaśāstra. At the end of each of the hundred and fifty chapters of his work, he calls himself "Kautilya". He also narrates in a verse that one of his exploits is to overthrow the Nanda Dynasty. It has been established by historical researches that Kautilya overthrew the Nandas and placed Chandragupta Maurya on their throne. It is now known from Indian epigraphical researches that Chandragupta Maurya was made a king in 321 B. C. From this, it follows that Kautilya lived and wrote his outstanding masterpiece, the Arthasastra, which is a storehouse of knowledge, some- where between 321 and 300 B. C. (See Appendix-B).

The antiquity and genuineness of the Arthasastra has been supported by Kamandaka in his Nitisastra and also by Dandı. Further, the authenticity of the Arthaśāstra, and the identification of Kautilya as its author has been accepted by Banabhatta in his book Kadambari where he has condemned the science contained in Kautilya's Arthasastra.