President Communiqué February 2019


Take risks in your life. If you win, you can lead, if you lose, you can guide.

-- Swami Vivekananda


My Dear Professional Colleague,


Namaskaar!!!

59th National Cost Convention & SAFA Events in Pune

I congratulate CMA Fraternity across the globe for the success of the 59th NCC 2019 during its Platinum Jubilee Year on the theme "Cost & Management Accountants - Power of the Past – Force of the Future” on 20th & 21st January, 2019 at Hotel JW Marriott, Pune. Dr. Abhay Firodia, Chairman, Force Motors Limited inaugurated the 59th NCC as the Chief Guest and Dr. Deepak Tilak was the Guest of Honour of the inaugural session. The Chief Guest also released following publications of the Institute – “Knowledge Pack of NCC 2019”, “Guidance Note on Corporate Insolvency Resolution Process”, “Guidance Note on Block Chain Technology, “Guidance Note on Electricals and Electronics Industry”, “Compilation of Response to Queries by Technical Cell (Cost Audit, Compliance and others)”.

Large number of delegates from the country and abroad have actively participated in the Annual National event of the Institute to make it a grand success. I am especially glad to inform that over 4200 watched the event live on our YouTube Channel. I am very thankful to all dignitaries, guests and speakers, my council colleagues, members of regional councils and chapters, past presidents, sponsors, members, students, press & media, foreign delegates, Institute’s staff and each one of you for the grand success of this historic event.

Brief Highlights of NCC:

Inaugurating the 59th NCC 2019 of the Institute, Dr. Abhay Firodia, Chairman, Force Motors Limited said that in India, CMAs are seen as ice bergs, you see very little on top and there is a lot underneath that you don’t normally see and that is what matters, CMAs have in-depth knowledge of analyzing and evaluation of businesses. He urged the Institute to take necessary steps to prepare industry wise comparative cost analysis for the purpose of not only comparing cost of various activities of an enterprise but also with the different economies of the world. To analysis and point out where the cost of our economy lies and how to bring it down to the international level so that policies can be formulated to encourage the same. This will enable the CMA profession to rise as Cost Consultants rather than Cost Accountants.

Message from Shri Suresh Prabhu

A video message from Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation to all the delegates and CMA professionals was also played during the inaugural session.

SAFA Events held in Pune

The Institute also hosted various SAFA events on the sidelines of the NCC during 20-22 January 2019 at Pune. The Inauguration of SAFA events was held on 21st January 2019 at JW Marriott Hotel, Pune. Shri Anil Shirole, Hon’ble Member of Parliament of Pune graced the occasion as the Chief Guest of the Inaugural session. Souvenir of NCC 2019 was released at the hands of Hon’ble Chief Guest. During his speech, he congratulated the Institute for its Platinum Jubilee year celebrations and appreciated the work of SAFA as a forum of professional accountancy bodies is committed to positioning, maintaining and developing the accountancy profession in SAARC Region countries. While talking about the Cost and Management profession, he mentioned that the purpose of cost accountants is not merely generating periodical financial reports but also to identify the cost per unit of every product, process and project undertaken. He further added that in any business, costing is important to determine pricing of products & services and the role of Cost Accountants is critical as this work cannot be done by just ordinary accountant. In his concluding remark, he said that it is evident that the role of Cost Accountants is crucial in creating system and ensuring its efficient operations from time to time and I am confident that members of the Institute of Cost Accountants would be able to handle this task efficiently.

The Hon’ble Chief Guest also felicitated the Presidents of various SAFA Member bodies i.e. Pakistan, Nepal, Sri Lanka and Bangladesh during the inaugural session.

SAFA Board & Committee meeting held on 21st January 2019:

Various SAFA Committee meeting and 57th SAFA Board & 90th Assembly meeting were held on 21st January 2019 at JW Marriott Hotel, Pune. The meetings were attended by the Heads of Members Bodies of India, Sri Lanka, Pakistan, Bangladesh and Nepal.

SAFA Quiz and Elocution Contest 2019 and SAFA BPA Awards ceremony held on 22nd January 2019:

I am happy to share that the Institute organized the SAFA Quiz and Elocution contest 2019 at Pune Chapter of the Cost Accountants, CMA Bhawan, Pune on 22nd January 2019. Students nominated by various SAFA member bodies participated in the Contest. Winners and Runner ups of both contests were awarded for their performance. Thereafter, the presentation ceremony of SAFA BPA Awards and SAARC Anniversary Awards for Corporate Governance Disclosures was organized in the evening of 22nd January 2019 at Pune Chapter of the Cost Accountants, CMA Bhawan, Pune. The Chief Guest for the Awards Ceremony, Dr. Ashok Ramkrishna Joshi, Honorary Director General, Indian Institute of Cost and Management Studies & Research (IndSearch), Pune presented a total of 88 awards in various categories to the awardees.

Global Student's Summit 2K19

I am glad to inform that the Institute is organising its first Global Student's Summit 2K19 on the theme "CMAs - Today's Student, Tomorrow's Executive" at Thrissur, Kerala on 6th & 7th February 2K19. This Global Student’s Summit will host Students from various parts of the country and abroad, participating in Brain storming sessions on Motivation, Leadership, Career Grooming, Management Competitions, Paper Presentation, Quiz Biz and Elocution Talents.

The Regions, Chapters, Overseas Centres, ROCCs and CMA Support Centers are requested to kindly take up with the students of your area/locality to actively participate in Global Student's Summit 2K19 in large numbers. I am very much sure that with your support and efforts, the Global Student's Summit 2K19 shall be a grand success.

Career Counselling

I am happy to inform that the Institute has collaborated with Commerce Teachers Foundation (CTF) for "Commerce Education & Beyond: Reinforcing Young Minds" entered into a Strategic Partnership primarily for the International Commerce Olympiad which is intended to help the school students of class XI & XII to evaluate their inner abilities, interests, talents and personality traits to develop and achieve realistic academic, professional and career goals.

We have also planned other Career Counseling activities to help the school students to make an informed choice while deciding upon the future choice of subjects / career; and for those who want to discover their field of aptitude and interest.

CTF's 10th International Commerce Olympiad was conducted in November 2018 in two phases on different dates i.e.16th November and 30th November 2018 wherein 458 schools from 108 cities participated, 28277 students appeared for the ICO. Result was declared in January 2019, wherein 17534 students qualified the test. The Institute and CTF will be felicitating the meritorious students and teachers after their forthcoming school examination.

I am happy to share that Chairman, Training & Education Facilities and Placement Committee of the Institute attended a Career counselling event organised by Synergy Youth Club (a not for profit organisation) on 11th January 2019 at Mumbai. He addressed the students about the importance of CMA Course, its career path and current need of CMA qualified candidates in the Corporate World. In the event, Mr. Ramesh G. Iyer, CEO of Mahindra and Mahindra Financial Services Ltd. and Managing Director of Mahindra Group of Companies also addressed the students about what is required to start career and reach to success.

Career Conclave at New Delhi

The Institute participated in four days Career Conclave during 28th January 2019 to 31st January 2019 at Thyagraj Stadium, New Delhi organised by Department of Education Delhi Government inaugurated by the Hon’ble Shri Manish Sisodiya, Deputy Chief Minister of Delhi. Around 10,000 students attended this conclave wherein students of class XII were given guidance on the CMA Course Curriculum, nearly 3000 students of expressed their keen interest in the CMA course.

Committee on Public Finance & Government Accounting

The Committee organized a programme on the theme "A perspective to Economic Reforms in India" wherein deliberations by experts in Insolvency & Bankruptcy Code 2016 and Goods & Services Tax on 13th January 2019 at Noida. There was overwhelming participation.

The Committee conducted a Seminar on 'Costing in Government Sector' on 17th January 2019 at Scope Convention Centre, New Delhi. The deliberations were well appreciated.

DIRECTORATE OF ADVANCED STUDIES

I am happy to inform that Directorate of Advanced Studies has launched three new courses - Certificate Course in Forensic Audit, Control and Certificate Course in Data Analytics and Certificate Course in IS Audit (Revised) during National Cost Convention 2019.

DIRECTORATE OF CAT

I am pleased to inform that Directorate of CAT of the Institute has organized Region wise Interactive Sessions with Recognized Oral Coaching Centres (ROCCs) and Chapters conducting classes of CAT Course on the theme “Building Career through Accounting Skills” at Delhi, Kolkata, Pune and Trivandrum for bringing inclusive growth for all CAT stakeholders through an interactive discussion and also the strategies to be formulated for expanding awareness of the course.

Chairman - CAT Committee addressed the stake holders in all the four locations. In Trivandrum, my council colleagues appreciated the support extended by Government of Kerala for ASAP Project and also deliberated on the development of CAT Course. In Pune, I also deliberated on the issues like extending Career Awareness among the young students, Training & Placement of CAT students, syllabus revision to suit the industry requirements for junior accountants and the action plan to be carried out for developing the skill course.

I am happy to inform that the CAT course in Kerala has reached the 6th year successfully through Additional Skill Acquisition Programme (ASAP) project of Government Kerala. On the 18th January 2019, Chairman – CAT Committee met the CEO of ASAP, Mrs Reetha S Prabha, IAS and discussed about the matters of concern and requested to extend MoU with Government of Kerala for two more years.

DIRECTORATE OF STUDIES (PLACEMENT)

I am happy to inform that Directorate of Studies (Placement) has conducted Winter Campus Placement Program for June 2018 pass out Batch at Delhi and Mumbai in the month of January 2019. We have also planned for organizing Winter Campus Placement at other locations also.

INSOLVENCY PROFESSIONAL AGENCY (IPA) OF INSTITUTE OF COST ACCOUNTANTS OF INDIA

The Insolvency Professional Agency of the Institute organized various Round table Interactions and workshops during the month on: Valuation - Past, Present and Future, Valuation of Stressed Assets and concept, process, tools and practical aspects of Forensic Audit.

IPA jointly with ICSIIIP has also organized a National Conclave on Corporate Insolvency and Valuation at Pune.

I attended the seventh meeting of the "Committee to advise on valuation matters" held on 11th January 2019 at the office of the Insolvency and Bankruptcy Board of India, New Delhi.

I am pleased to share that representative from the Institute attended the Insolvency Law Committee Meeting called by Ministry of Corporate Affairs to discuss the powers of IBBI on inspection and investigation on 31st January 2019 at New Delhi.

MEMBERSHIP DEPARTMENT

I welcome with pleasure all the 129 new Associate members and 18 members who were upgraded to Fellowship during the month of January 2019.

As indicated in my earlier communiqué, an advisory for renewal of CoP for the financial year 2019-20 has been hoisted on the Institute’s website under the guidelines/circulars icon of the members section. For ready reference, the same has also been published elsewhere in this copy of the Management Accountant. I call upon all members desirous of renewing their CoP for FY 2019-20 to apply online for renewal at an early date well in advance.

PROFESSIONAL DEVELOPMENT AND CPD COMMITTEE

Professional Development & CPD Committee has released Guidance Note Corporate Insolvency Resolution Process, Guidance note on Block Chain Technology and Guidance note on Electricals and Electronics Industry in the 59th National Cost Convention 2019 held at Pune.

PD & CPD Committee and Branding Cell organized seminar on “Strategic Cost Management & Practical Issues on GST” jointly with Hosur Industries Association on 09th January 2019 at Hosur and another programme with Ambattur Industrial Estate Manufacturers’ Association (AIEMA) on 11th January 2019 at Chennai.

I sincerely appreciate our Regional Councils and Chapters for organizing 39 programs, seminars and discussions on the topics of professional relevance and importance for the members such as, Insight to the Assessment of Income Tax, Inventory Control in Automotive Sector, Risk Management & Insurance, GST Audit & Its Return Filing and The Recent Judgements on Advanced Ruling in GST, Internal Audit of Downstream Oil Companies, Internal Audit of Telecom Sector, Cost Management in Textile Industry, NFRA Rules 2018 and so on.

The Institute was associated with PHD Chamber of Commerce and Industry for “Amendments made in CGST, IGST, UTGST, SGST Act effective from 1st February 2019” on 31st January 2019 at New Delhi. I hope our members will be immensely benefited with these programs.

Representative from the Institute attended the Evening Workshop- Directors’ Symposium on Integrated Reporting organized by ACCA-The Association of Certified Chartered Accountants in collaboration with The - The International Integrated Reporting Council and Institute of Directors (IOD) 15th January 2019 in New Delhi.

Representation with Government, PSUs, Banks and Other Organizations:

PD Directorate is sending representation letters to various organizations for inclusion of cost accountants for providing professional services. Madhya Pradesh Madhya Kshetra Vidyut Co. Ltd., Nagar Parishad Pakur, Municipal Corporation Deoghar, The Karnataka Handloom Development Corporation Limited, Jammu and Kashmir State Power development Corporation Limited, Karnataka State Beverages Corporation Limited, Andaman & Nicobar Island Integrated Development Corporation Limited, West Bengal State AIDS Prevention & Control Society, Indian Rare Earths Limited, National Building Construction Corporation Limited (NBCC), KIOCL Ltd., Northern Coalfields Limited, Allahabad Bank, Airports Authority of India, New Town Kolkata Green Smart City Corporation Ltd, UCO Bank, Madhya Pradesh Power Generating Company Limited, Maharashtra Electricity Regulatory Commission (MERC), Odisha State Road Transport Corporation, etc., have included Cost Accountants in their Tenders/EOIs during the month of January 2019.

Cost Accounting Standards Board (CASB)

I am pleased to note that the CASB of the Institute has issued an Exposure Draft on Compilation Engagements by a Cost Accountant for public comments to be received till February 8, 2019. I urge the members to come forward and send their suggestions / comments on the draft within the last date.

I wish to further inform you that the Council in its last meeting has approved the release of Cost Accounting Standard on Cost of Production / Acquisition / Supply of Goods / Provision of Services (CAS-4 Revised 2018).

I am pleased to inform that the CASB, in continuation with organising the seminars on Cost Governance, organised a Seminar on Cost Governance in association with the CAASB and Jaipur Chapter of the Institute on 5th January 2019 in Jaipur, which was well attended by the delegates. In order to build capacity of the members and to create awareness of cost consciousness, the CASB has planned a Mega Cost Governance Conclave 2019 on 9th February 2019 in SCOPE Auditorium, New Delhi. I urge the members to attend the event in large numbers and get benefited by the deliberations.

I appreciate the initiatives taken by the CASB in development of Technical Papers for the capacity building of the members and stakeholders.

Cost Auditing and Assurance Standards Board (CAASB)

I am pleased to share that in its last meeting the CAASB of the Institute has approved the release of Exposure Draft of Standard on Quality Control for public comments. The exposure draft will be released shortly for public comments. Members are encouraged to give their suggestions / comments on further improvement of the draft within the last date. I have been informed that the CAASB has also finalised the FAQs on Standards on Cost Auditing (SCAs 101 to 104) which will be released shortly. I hope that the members will be benefited by the release of these documents.

The CAASB has also planned to organise a series of webinars on Standards on Cost Auditing and the first webinar of the series is expected to be organised on 7th February 2019. Formal announcement of the same will be done shortly. I hope that the members will be immensely benefited by this initiative of the Board.

Technical Cell

I congratulate the Technical Cell for coming out with the Compilation of Responses on the Queries received by the Technical Cell, which was released in the 59th NCC 2019 in Pune. The compilation is available for sale with the Technical Department of the Institute. The Guidance Note on Responsibility of Directors as regards Maintenance of Cost Records is also available for sale with the Technical Department of the Institute.

Corporate Laws Committee

The Corporate Law Day was organised on 4th January 2019 across the Country. There were programs, events and career counselling organised by the Regional Offices and Chapters of the Institute. I appreciate this initiative of the Corporate Laws Committee of the Institute.

TAXATION COMMITTEE

I would like to congratulate Tax Research Department for successfully conducting two seminars, one on 27th January 2019 at Bhubaneswar themed "Insight to the Assessment of Income Tax" and the other on 28th January 2019 at Delhi on “GST- A boon or a bane for MSME Sector and its Consumers”. The second seminar was honorably graced by Shri Pranab Kumar Das, Chairman, CBIC, Shri Upender Gupta, Principal Commissioner GST and Shri Samanjasa Das, Principal ADG, Directorate General of Anti Profiteering. Three webinars have also been conducted on the topics - GST Amendment Law and Latest Update, New forms for GST annual return and audit and New Horizons of GST Audit and Annual Return. The department also submitted a representation to the Government on ‘Inclusion of Cost Accountants for authorizing the certificate of claiming ITC in case of exports’.

I wish prosperity and happiness to members, students and their family on the occasion of Basant Panchami, Guru Ravidas’s Birthday, Shivaji Jayanti & Swami Dayanand Saraswati Jayanti and pray for the success in all of their endeavors.

Thanking you!!!

Warm Regards,



CMA Amit Anand Apte

1st February, 2019