CS and CMA - HOW THEY DIFFER???? by CA Nitin Nanda

A company secretary executes her/his work with colleagues at all the levels. A CS is the one who fills the gap between the managers and the employees of the organization. Keeping the board of directors and stakeholders updated about any meeting and agenda, making a detailed note of the proceedings of the entire meeting and handling other documentary work falls into the role of a company secretary. The course of a CS is a professional course conducted by The Institute of Company Secretaries of India (ICSI). The course consists of three stages, Foundation, executive and professional program. A candidate should be 10+2 to start up with a foundation program.
 

There are various institutes that provide training and education to cost and management accountants in India. These institutes are dynamic, premier and professional institutes that are professionally associated towards the industrial and economic development of the nation. The accountant in this profession handles the responsibility as Cost and management Accountants. The job is basically concerned with the provisions and application of accounting information to managers within organizations that help them to make informed business decisions.
The basic tasks these accountants perform includes the process of identification, measurement, collection, analysis, formulation, rendering and communication of information and eventually takes place the preparation of a financial report. The ICMAI course is divided into 3 parts. First is the foundation course, which needs a minimum qualification of 10+2, however candidates already applied for the 12th and are awaiting for the results can also apply for the foundation course. Then comes the intermediate course. Although, students who are graduated directly become eligible for the intermediate course, they can skip foundation program. Then comes the final course.
 ICSI or the Institute of company secretaries of India is the leading entity  that offers valuable certifications to aspirants in the  company secretarial program. The major responsibilities of the institute include registering and keeping track of students, offering opportunities for practical training along with theoretical sessions, conducting examinations in company secretaryship, issuing Government Diploma to successful candidates and so on.
 

Whereas, for Cost and Management Accountant there are various other options, such as doing a certificate course in financial management or choosing up a financial planning course for your post graduation. Apart from the Institute of Cost and Management Accountant of India (ICMAI), many other ICMA institutes promise to offer an accountant course of this level. Mostly commerce students are eligible for this program. However, to enable non-commerce students the ICSI has made it compulsory to take up a course or oral tuition in those subjects of the foundation examination which he/she had not studied at the graduate or post graduate level.

So, basically CS handles the legal matters related to the company and CMA specializes in handling the accounts, bookkeeping and audit. ICMA includes collection, assimilation and analysis of financial information from all areas of the company while the role of a CS is that of an advisor in the legal matters of the company. They act as an intermediate between the company and its board of directors, stakeholders and the regulatory authorities.
 

Students, on completion of the CS course can find employment in government accounts or departments of law. Of late, ICMAI course was lagging behind. However, there were important changes in the regulations which has made this profession lucrative both on the professional front and practice. It is expected that the ICMAI courses will also attract more students in the coming years due to the increasing horizon of the profession.

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CWA CMA Provisional Rank list, June 2013 Examinations

ICWAI released the Rank List of CWA/CMA Intermediate and Final Examination conducted in June 2013. You can check the rank from below link.

Rank List of FINAL Exam (June-2013 Term).

Rank List of INTERMEDIATE Exam (June-2013 Term)

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SCHEME OF NEW COMPANIES BILL, 2011

A simple effort has been made to analyze the Companies Bill, 2011 along with brand new provisions as introduced in the Loksabha on 14th December, 2011 with the help of inputs provided by ICSI.

SCHEME OF NEW COMPANIES BILL, 2011

1. The Bill has 470 clauses and 7 schedules as against 658 Sections and 15 schedules in the existing Companies Act, 1956.
2. The entire bill has been divided into 29 chapters.

Following chapters have been introduced, viz.

1. Registered Valuers (ch.17);
2. Government companies (ch. 23);
3. Companies to furnish information or statistics (ch. 25);
4. Nidhis (ch. 26);
5. National Company Law Tribunal & Appellate Tribunal (ch. 27);
6. Special Courts (ch. 28)

Just like previous The Bill empowers Central Government to make rules, etc. through delegated legislation after having detailed consultative process (clause 470 and others).

The Bill provides for self-regulatory process and stringent compliance regime.

THE SALIENT FEATURES OF THE BILL:

1. Concept of One Person Company (OPC limited) introduced by Companies Bill, 2011 through Clause 2(62).
2. In Clause 2(85) of Companies Bill, 2011, Small companies have been defined by fixing maximum paid-up share capital not exceeding Rs. 50 Lakhs and such companies will be required to follow less stringent regulatory provisions.
3. In Clause 18 of Companies Bill, 2011, the proper provision for Conversion of Companies already registered has been introduced.
4. In Clause 7(1)(b) of Companies Bill, 2011, A provision has been made regarding declaration to the effect that all the requirements of the Act in respect of registration and matters precedent or incidental thereto have been complied with. Company Secretaries continue to be recognized for the purpose of giving this declaration.

INTRODUCTION OF E-GOVERNANCE

Another important feature added by Companies Bill, 2011 in corporate practice is formal introduction of much awaited concept of E-Governance.

E-Governance proposed for various company processes like maintenance and inspection of documents in electronic form, option of keeping of books of accounts in electronic form, financial statements to be placed on company’s website, holding of board meetings through video conferencing/other electronic mode; voting through electronic means.

After the introduction of E-Governance companies can maintain its statutory registers in electronic mode and hold its board meetings through video conferencing.

BOARD AND GOVERNANCE

Appointment of Key Managerial Personnel [Clause 203(1)]

As per clause 203 of Companies Bill, 2011 the Company Secretaries are recognized as whole-time key managerial personnel. Also Companies Bill, 2011 has made the appointment of Company Secretary mandatory.

As per clause 203 of Companies Bill, 2011, every company belonging to such class or classes of companies as may be prescribed shall have the following whole-time key managerial personnel,—

1. Managing director, or Chief Executive Officer or manager and in their absence, a whole-time director; and

2. Company Secretary.

Unless the articles of a company provide otherwise, an individual shall not be the chairperson of the company as well as the managing director or Chief Executive Officer of the company at the same time [Proviso to Clause 203(1)].

Bill 2011, also provides the definition of Key Managerial Personnel under Clause 2(51) of the Bill, which is as follows:

“Key Managerial Personnel”, in relation to a company, means—

(i) the Chief Executive Officer or the managing director or the manager;

(ii) the Company Secretary;

(iii) the Chief Financial Officer if the Board of Directors appoints him; and

(iv) such other officer as may be prescribed;

Every Company Secretary being a KMP shall be appointed by a resolution of the Board which shall contain the terms and conditions of appointment including the remuneration. If any vacancy in the office of KMP is created, the same shall be filled up by the Board at a meeting of the Board within a period of six months from the date of such vacancy [Clause 203 (2) & (4)]

If a company does not appoint a Company Secretary, the penalty proposed is:

1. On company – one lakh rupees which may extend to five lakh rupees.
2. On every director and KMP who is in default – 50,000 rupees and 1,000 rupees per day if contravention continues.

MINIMUM PERIOD PRESCRIBED FOR AT LEAST ONE DIRECTOR ON BOARD TO STAY IN INDIA

This kind of provision also prescribed for the very first time. Every company shall have at least one director who has stayed in India for a total period of not less than 182 days in previous calendar year [Clause 149(2)].

CONCEPT OF INDEPENDENT DIRECTORS

The concept of independent directors has also been touched upon for the very first time under clause 149.

1.  All listed companies are required to appoint independent directors.
2. Such other public companies as may be prescribed by the Central Government shall also be required to appoint independent directors.
3. At least one-third of the Board of such companies should comprise independent directors.
4. Nominee director appointed by any institution, or in pursuance of any agreement, or appointed by any Government to represent its shareholding shall not be deemed to be an independent director.
5. As per first proviso to Clause 161(2) only an independent director can be appointed as alternate director to an independent director.
6. The Independent directors shall abide by a code provided in Schedule IV to the Bill.
7. Independent directors shall hold office up to two consecutive terms. One term is upto five consecutive years.
8. Eligible for appointment in same company after cooling period of three years.

BOARD MEETINGS THROUGH VIDEO-CONFERENCING ALLOWED NOW

Another master change proposed in Companies Bill, 2011 under clause 173(2) is participation of directors at Board Meetings has been permitted through video-conferencing or other audio visual means, provided such participation is capable of recording and recognizing. Also, the recording and storing of the proceedings of such meetings should be carried out.


Link:http://www.icsi.edu/WebModules/LinksOfWeeks/HIGHLIGHTS-COMPANIES%20BILL2011.pdf

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ICWAI DEMANDS DROP “CHARTERED” FROM ICAI

The President and members of the Council of the Institute of Cost and Works
Accountants of India express their utmost unhappiness on the passing of the ICWAI.Amendment Bill in the Rajya Sabha on 12th Dec 2011, by which the name was proposed to be changed to the Institute of Cost Accountants of India. Our Institute strongly objects to the move by the sister professional body in interfering the activities of the another professional body to encourage foreign management accounting bodies to establish their presence in India to the detriment of Indian professionals. The Hon’ble Minister in his reply to the debate in Rajya Sabha also questioned “After independence, why a colonial name like Chartered should be there. You know,this is a matter which is left to the Chartered Accountants of India to consider.”


We also demand that in the post independence era let the Government also change the name of the Institute of Chartered Accountants of India into some other name or remove the name “Chartered”. While for this the Government feels that it is the matter which has to be taken up by the Chartered Institute, in our case we find that without our consent our name is proposed to be changed at the behest of The Institute of Chartered Accountants of India. The dominant position enjoyed by the Chartered Accountants are
taken advantage by that Institute in creating block for a sister professional body which is catering to the youth to get a professional accounting qualification while working in whatever employment they are already in, to further their growth prospects.


The Institute of Chartered Accountants of India have been continuously interfering with the name change of our Institute, objecting to the name by which the similar cost accounting bodies across the globe are called. Unfortunately, due to their dominant position which was recognized even in the Report of the Standing Committee of Parliament, our genuine request is not heeded by the Government. In the Rajya Sabha’s debate during the Bill many  Hon’ble  Members commented that the entry of foreign consulting firms through surrogate Indian audit firms should not be encouraged. They also commented that “That is why it is quite possible that money is illegally taken by some entities to foreign countries with the advice and superb consultancy with the Chartered Accountants ……. That is why along with the quantity of Chartered Accountants ……… the professional ethics in this country, unfortunately, are declining very fast and sometimes feel that it is going to the point beyond no repairs.” In another statement in the same debate Hon’ble members commented “Now in the recent 2G scam, you will be surprised to know
that in all the cases of all these companies, whatever certificates were given by the auditors that their authorized capital is this much and paid up capital is this much, were false. They got the license on the basis of false certificates issued by the auditors. It is a very serious issue Sir”. The growth of membership as well as students in the past five years of ICWAI has been
phenomenal with the growth rate of 30% every year. The students are growing at the rate of more than 50% in recent years. This shows that the youth of the country have recognized that a major opportunity lies in acquiring a professional qualification. In all the cases which was mentioned in the Rajya Sabha debate the Chartered Accountancy profession was targeted but ultimately the punishment was handed over to the Cost


Accounting profession which has no role in these scams. Through this exercise, theInstitute of Chartered Accountants of India have enabled foreign management accounting bodies to establish their presence in India. Indirectly this is creating a position of dominance for the Chartered Accounting Institute, which goes against the principles the Government is trying to establish through the Competition policy.


The 50,000 members and 4,00,000 students all over the country are pained due to this unfortunate development. The Central Council Members, Office Bearers of the Regional Councils & Chapters of the Institute have started to send their resignation to the President as a mark of protest against this unfair activity of the Institute of Chartered Accountants of India in preventing the just demand of our profession.
Link to the above article
http://www.icwai.org/icwainew/docs/ICWAI-PRESS-RELEASE.pdf

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Download Deed of Partnership

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Resume / CV Tips for Professionals like CA, CS, CWA

Resume / CV Tips for Professionals like CA, CS, CWA

When one enters the job market and is looking for a job, it is nothing but ‘Selling Oneself’ or ‘Marketing Oneself’. Job searching is like marketing and selling a product. The product is “YOU”.

Resume / CV are nothing but a marketing tool which helps you to represent yourself to a potential employer. Resume / CV is in a way an ‘artificial person’ which acts like a person in your physical absence. In other words, Resume / CV is your ‘representation’ to the potential employer, in your absence and before your interview.

Taking this into consideration, it is much essential that the resume should show / project one’s strengths & emphasize things of either work history or education that a potential will think valuable.

Know the purpose of your resume:

Resume / CV Writing is an Art as well as Science. Resume / CV should be written in such a way that a potential employer gets inclined to read about you, your intelligence, hard work, etc.

One should remember that a Resume / CV is not a Bio-Data.

This article aims to give you some tips, for preparing an effective resume, especially for professionals like Chartered Accountants, Company Secretaries, Cost Accountants and alike:

For Freshers:

For those of you who have just cleared your professional exams, having a good and simple resume is a must, to make a good first impression about you.

Title & Objective: A potential employer will generally have just a minute to judge your resume. Therefore, the very first thing to consider is the ‘title’ that you mention on your resume. Therefore ensure that it captures the attention of the potential employer.

Think of what type of work you would want to do in your first job and accordingly think and draft an ‘Objective’ for your resume. This ‘Objective’ at a fresher level is very important since it indicates & conveys your thinking, focus, aspiration. It should also indicate what ‘qualitative’ aspect you can give to the organisation as an employee. At an experienced level, Objective should convey your ‘professional goal’.

Academics:

Since showing work experience is not the aim of a fresher, your resume should concentrate more on one’s education details, college activities/seminars/workshops done, awards received, certificate courses completed. Do mention Merit / Rank details if any.

Do not include hobbies, sports, etc. except if there are any extraordinary ones achieved in school / college life.

Include your Institute membership number and the year of passing the professional exam stages.

Internship details:

Mention the details of the firm / company in which you have undergone the article ship training. Do mention if you have performed any task extra-ordinarily and have received appreciation / award.

Generally, the work you do in your article ship is important for an employer, since that may be the base for giving you the job, since similar tasks may be required to be done by you for that employer.

Format:

Keep the format, font type, font size very simple and normal. Avoid ‘decorating’ your resume / CV. Avoid the use fancy words, short forms.

Point wise presentation is very much appealing and readable. Use bullet points wherever necessary to list down things.

Others:

No need to mention date, signature, place, declaration of trueness of the data, etc. This is now outdated and since resumes / CVs are now sent on email and then after wards the interview / screening process begins.

Do not ‘hype’ your achievements or work, since they will be checked at the interview stage. Mention only those things which you can justify.

Ideally, a resume / CV for a fresher should end in one page.

For Experienced Professionals:

Now here, what will count and would be most important is your ‘Work Experience’. As one goes on gaining work experience, educational qualifications take the second place after work experience.

Apart from Title & Objective, Format, Academics, additional points are required in a resume / CV of an experienced professional.

Focus Area:

Mention your ‘focus area of expertise’ after the title along with the total number of years of work experience till date. This will catch the attention of the reader and screening becomes simpler.

Experience Details:

Mention your work experience, employer wise and not activity or expertise area wise. The current or latest employer details should come first and then the others should follow.

Highlight your achievements / awards received during the tenure of your job with each employer.

Qualities and Strengths should be projected effectively, through bulleting, numbering, etc.

Generally, it is better to avoid mentioning of experience details which are below six months in tenure.

Compensation Details:

Your candidature must match the salary and responsibility level that you are aiming for.

Ideally, a resume / CV for an experienced professional should be 2 / 3 pages Maximum.

Consider getting professional help

Consider getting professional experts to draft your resume, instead of aiming in the dark. Though it may be at a cost, it will be worth-while and useful.

General Tips:

Keep it concise.

Write it neatly and clearly

Be honest about your work history and your skills

Be brief

Proof read it twice

Use a good printer

Update your resume regularly

Depending on your job position, you need to attach a ‘Cover Letter’ that tells how you found out about that job position, the motives you are concerned in job, why your skills / qualifications matches the job position.

This Article has been taken from the blog of Anand Wadadekar  

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