ICMAI August 2014 Issue

SPECIAL FOCUS
INSIDE
CMAs can guide banks in pre- and post-sanction and monitoring of stressed asset levels page 38
theMANAGEMENT
ACCOUNTANT
AUGUST 2014 VOL 49 NO. 8 `100
CCOUN
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AN
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G
IN
CO
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THE JOURNAL FOR CMAs
DAR
COST ACCOUNTING
STANDARDS AND ITS
ECONOMIC IMPLICATIONS
The Institute of Cost Accountants of India
(Statutory body under an Act of Parliament)
www.icmai.in
REACH YOUR CUSTOMERS THROUGH

THE MANAGEMENT ACCOUNTANT
The Institute of Cost Accountants of India (ICAI) is a statutory body set up under an Act of Parliament in 1959. The
Institute, as a part of its obligation, regulates the profession of Cost and Management Accountancy. The Institute also believes
that cost competitiveness, cost management, efficient use of resources and structured approach to cost accounting are the
key drivers of the profession. ICAI is headquartered in Kolkata. It has four Regional Councils in Kolkata, Delhi, Mumbai
and Chennai and 96 Chapters in important cities in India and nine Overseas Centres. The Ministry of Corporate Affairs,
Government of India, has administrative control of the Institute.
the MANAGEMENT
ACCOUNTANT
The Institute publishes The Management

Accountant Journal for Cost and Management
Accountants (CMAs). The magazine, which
touched its 49th year of publication in 2014, has
insightful and informative articles on current
developments and changes in the global and
national financial scenarios. The wide circulation
and inputs from academicians, researchers and
industry stalwarts are the keys to the success of
this journal.
Circulation and content

The magazine reaches about 40,000 members, students,
non-members, Government departments and organisations,
corporates, educational institutions and libraries
It has a target set of readers and therefore is more visible
Articles and case studies on various subjects like Cost
& Management Accounting, Taxation, Audit, Financial
Reporting, Banking, Governance and Ethics.
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PRESIDENT
CMA Dr A S Durga Prasad
president@icmai.in
VICE PRESIDENT
CMA Pramodkumar Vithaldasji Bhattad
vicepresident@icmai.in
COUNCIL MEMBERS
CMA Amit Anand Apte, CMA Aruna Vilas Soman,
CMA D L S Sreshti, CMA Hari Krishan Goel,
CMA M Gopalakrishnan, CMA Manas Kr Thakur,
CMA Dr P V S Jagan Mohan Rao,
CMA Rakesh Singh, CMA Sanjay Gupta,
CMA Dr Sanjiban Bandyopadhyaya,
CMA Dr S C Mohanty, CMA S R Bhargave,
CMA T C A Srinivasa Prasad
GOVERNMENT NOMINEES
Suresh Pal, Nandana Munshi, Ashish Kumar,
G. Sreekumar, K. Govindaraj
Secretary (Acting)
CMA Kaushik Banerjee
secy@icmai.in
Director (Administration)
CMA Arnab Chakraborty
admin.arnab@icmai.in
Director (Professional Development)
CMA J K Budhiraja
pd.budhiraja@icmai.in
Director (Examinations)
CMA Amitava Das
exam.amitava@icmai.in
The Institute of
Cost Accountants
of India
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (erstwhile
The Institute of Cost and Works Accountants of India) was first established in
1944 as a registered company under the Companies Act with the objects of
promoting, regulating and developing the profession of Cost Accountancy.
On 28 May 1959, the Institute was established by a special Act of Parliament,
namely, the Cost and Works Accountants Act 1959 as a statutory professional
body for the regulation of the profession of cost and management accountancy.
It has since been continuously contributing to the growth of the industrial and
economic climate of the country.
The Institute of Cost Accountants of India is the only recognised statutory
professional organisation and licensing body in India specialising exclusively in
Cost and Management Accountancy.
Director (CAT), (Training & Placement)

CMA L Gurumurthy
cat.gurumurthy@icmai.in
MISSION STATEMENT
Director (Finance)
CMA S R Saha
finance.saha@icmai.in
The CMA Professionals would ethically drive

enterprises globally by creating value to stakeholders
in the socio-economic context through competencies
drawn from the integration of strategy, management
and accounting.
Director (AdministrationDelhi Office

& Public Relations)
CMA S C Gupta
admin.gupta@icmai.in
Director (Research & Journal)
CMA Dr Debaprosanna Nandy
rnj.dpnandy@icmai.in
Director (Advanced Studies)
CMA Dr P S S Murthy
advstudies.murthy@icmai.in
Director (CPD & PR)
CMA A S Bagchi
cpd.bagchi@icmai.in
VISION STATEMENT
Director (Technical)
CMA Dr S K Gupta
dirtechnical.delhi@icmai.in
The Institute of Cost Accountants of India would be

the preferred source of resources and professionals
for the financial leadership of enterprises globally.
Director (Discipline) and

Joint Director (Membership)
CMA Rajendra Bose
membership.rb@icmai.in
Editorial Office
CMA Bhawan, 4th Floor, 84, Harish Mukherjee
Road, Kolkata-700 025
Tel: +91 33 2454-0086/0087/0184
Fax: +91 33 2454-0063
Headquarters
CMA Bhawan, 12, Sudder Street
Kolkata 700 016
Tel: +91 33 2252-1031/34/35
Fax: +91 33 2252-7993/1026
Delhi Office
CMA Bhawan, 3, Institutional Area
Lodi Road, New Delhi-110003
Tel: +91 11 24622156, 24618645
Fax: +91 11 4358-3642
WEBSITE
www.icmai.in
www.icmai.in
IDEALS THE INSTITUTE STANDS FOR
to develop the Cost and Management Accountancy profession

to develop the body of members and properly equip them for functions
to ensure sound professional ethics
to keep abreast of new developments
Behind every successful business decision, there is always a CMA
AUGUST 2014
August 2014
Inside
CCOUN
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AN
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AUGUST 2014 VOL 49 NO. 8 `100
G
IN
CO
S
COVER STORY
DAR
The Management Accountant,

official organ of The Institute
of Cost Accountants of India,
established in 1944 (founder
member of IFAC, SAFA and CAPA)
EDITOR
CMA Dr Debaprosanna Nandy
editor@icmai.in
PRINTER & PUBLISHER
President, The Institute of Cost
Accountants of India
12 Sudder Street
Kolkata 700 016
and printed at
Hooghly Printing Co Ltd
(a Government of India Enterprise)
EDITORIAL OFFICE
CMA Bhawan, 4th Floor, 84, Harish
Mukherjee Road, Kolkata-700 025
Tel: +91 33 2454-0086/0087/0184
Fax: +91 33 2454-0063
The Institute of Cost Accountants of
India is the owner of all the written
and visual contents in this journal.
Permission is neccessary to re-use
any content and graphics for any
purpose.
DISCLAIMER
The views expressed by the
authors are personal and do
not necessarily represent
the views of the Institute
and therefore should not be
attributed to it.
19
22
32
THE SOCIETAL
IMPORTANCE OF COST
ACCOUNTING STANDARDS
Competitive strategy
and cost accounting
standards
Cost & Management

Accounting practices
and standards: A review
with respect to statutory
challenges
AUGUST 2014
27
36
CAS a Must for Cost

Competitiveness:
Evidence from some
companies
CAS a USP for CMAs
www.icmai.in
BANKING
lending models
61 SME
of Public Sector Banks
From the
Editors desk
in India: Innovative
thinking
Presidents
communique
11
ICAI-CMA Snapshots
12
Council
Committees
15
Economy
Updates
60
CMA Dossier
102
Members
Admission
118
INTERVIEW: CMD K R KAMATH

can guide banks
38 'CMAs
in pre-sanction, post-
sanction and monitoring

of stressed asset levels'
TAXATION
HEALTHCARE COSTING
curates egg: Indirect

40 Ataxation
changes in the
Based Cost
68 Activity
Management with ERP
union budget
bill 2014:
48 Finance
Significant changes in
direct tax law
51 Tax Titbits
CMA PROFESSION
profession,
56 The
professionals and the
Institute News
CMAs
The Management Accountant technical data
Modules in Healthcare:
Opportunities for CMAs
BUDGET ANALYSIS
Budget and the
81 Union
Expenditure Management
Commission: Implications for

Cost Management
budget (2014-15):
96 Union
Comments on an empirical
approach
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mail to journal.advt@icmai.in
AUGUST 2014
FROM THE EDITORS DESK

Greetings!
ents
cost accounting
practice
To assist the
Cost Accountants in preparation of uniform
cost statements
To assist the
management to
follow the standard cost accounting practices in
the matter of
compliance of
statutory obligations
To help Indian
industry and the
Government to-
Requirem
Cost Accounting
Standards (CAS)
are a set of standards that provide
Regulations
a structured approach to achieve
Policies
uniformity
and
COST ACCOUNTING
consistency in cost
STANDARDS
accounting principles and practices. These proRules
vide guidance on
Law
the preparation of
General Purpose
ncy
ranspare
T
Cost Statements.
s
e
ic
t
c
Godd Pra
To promote uniformity, there was
wards better cost management
an urgent need to integrate, harmonize, and standardize
An effective Cost audit provides assurance to the
the cost accounting principles and practices. Therefore,
management and the government that a company is
the Generally Accepted Cost Accounting Principles
maintaining appropriate cost records as prescribed by
have been clearly defined and well documented in the
law and to identify waste of resources, if any. Cost auform of the Cost Accounting Standards.
dit report provides useful insights into the weaknesses
The Cost Accounting Standards Board (CASB)
in processes and activities and also provides inputs in
also keep in focus the Generally Accepted Cost
formulating plans for continuous improvement in utiAccounting Principles and formalize them so that
lization of resources and to enhance productivity and
with the passage of time, an accepted framework can
cost competitiveness.
be evolved and remain capable of adoption by all users
In the manufacturing, mining and service sectors,
of the standards, including industries, professionals,
CAS plays an important role for classification of cost,
and other stakeholders. While formulating the
reduction of cost and to minimize wastage. In the one
Cost Accounting Standards, the CASB takes into
hand the Cost Accounting Standards help to determine
consideration the applicable laws, usage and business
cost of production and capacity, while on the other
environment prevailing in India. CASB also gives
hand, CAS defines the rules for levy of excise duty on
due consideration to the Cost Accounting Standards,
goods used for captive consumption.
principles and practices being followed by the other
This issue presents a good number of articles on the
countries.
cover story theme Cost Accounting Standards and its
The CASB has identified 39 areas for developing
economic implications by distinguished authors and an
the CASs, which include the 22 standards released so
interview of an industry stalwart. We look forward to
far. Of these, 21 areas relate to components of cost
constructive feedback from our readers on the articles
and the remaining 18 areas are on cost accounting
and overall development of the journal under this
methodologies.
section. Please send your mails at editor@icmai.in. We
Objectives
thank all the contributors to this important issue and
To equip the profession with better on standard
hope our readers enjoy the articles.
AUGUST 2014
www.icmai.in
LETTER TO
THE EDITOR
I recently had a chance to go
through the June 2014 issue
of your Journal on Ethics of
Accountants at the Institute
of Chartered Accountants of
Pakistan, Member's Library,
Karachi, and found it to be a
good read.
I wish to congratulate you and
your team on reflecting on a
burning topic.
You rightly mention that "a high
standard of ethical behavior
is expected from those who
are engaged in a profession".
In fact, in my opinion the
only true measure of a true
professional is adherence to an
ethical conduct in conflicting
situations.
Your theme also reminded me
of my accounting teacher who
use to say that a person who
is incompetent but ethical is
far better than the one who's
competent and unethical;
because the condition of
incompetency is reversible
with training, not the ethical
disposition of a person.
I find ethical and principled
behavior to be quite closely
aligned. The best way to learn
ethical behavior is to study the
right kind of role models.
Altaf Noor Ali, Chartered
Accountant, Pakistan
www.icmai.in

(Statutory Body under an Act of Parliament)
www.icmai.in
Call for Research Papers/Articles for

Research Bulletin Vol. XL (ISSN 2230 9241)
We invite you to contribute research paper/ article for Research
Bulletin, a peer-reviewed Bi-Annual Journal of The Institute of Cost
Accountants of India. The aim of this bulletin is to share innovative
achievements and practical experiences from diverse domains of
management, from researchers, practitioners, academicians and
professionals. This bulletin is dedicated to publish high quality research
papers providing meaningful insights into the management content both
in Indian as well as global context.
Guidelines to submit full Paper
Soft copy of the full paper should be submitted in double space, 12

fonts, Times New Roman, keeping a margin of 1 inch in four sides, MS
Word 2003 (.doc) format.
Each paper should be around 15 typed pages and preferably within
5000 words including all.
An abstract of not more than 150 words should be attached.
The cover page should contain the title of the paper, authors name,
designation, official address, contact phone numbers, e-mail address.
Papers must be received within 3Ist October, 2014 at the

following email id: research.bulletin@icmai.in
Obituary
The Institute and its members deeply mourn the demise of CMA
B.L. Sethi, Fellow member and Past Chairman of Jaipur chapter,
who left for his heavenly abode on June 20, 2014. He worked
as Accounts Officer in the A.G. Office till 03.05.1984. During the
period of his employment in A.G. Office he was on deputation of
various Government Companies such as Food Corporation of India, Rajasthan
State Industrial and Mineral Corporation (RIMDC), Rajasthan State Bridge
and Construction Corporation Ltd. He retired from Hindustan Salts Limited as
a Company Secretary on 31.08.1995. He was also a teaching faculty at the
Institute.
May his family have the courage and strength to overcome the loss.
AUGUST 2014
OUR NEW PRESIDENT
CMA Dr A S Durga
Prasad
CMA DR A S DURGA PRASAD is an accomplished executive with over 37

years of experience in Financial Management and Cost Management in a variety of
industries. His experience includes Financial Advisory Services, strategies and business
development for small and medium industries and providing cost management systems
and MIS systems for a large number of units.
CMA Durga Prasad, B.Com, PhD, has been involved in all facets of corporate
strategic management, including developing business models, financial structuring,
mergers and acquisition, valuation of companies, capital structuring and advising
clients on future plans related to fund raising. He was involved with a number of
public offers and was advisor to a number of companies. He is currently MD and
CEO of a business process management company and director of a boutique investment banking company.
He was Chairman of the Southern India Regional Council of the Institute. He
was a visiting faculty with many institutions and a regular speaker at industry and
academic forums. He is also a member of several academic institutions and on the
board of the Studies and Governing Council. CMA Durga Prasad is a Fellow Member of the Institute of Cost Accountants of India.
OUR NEW VICE PRESIDENT
CMA Pramodkumar
Vithaldasji Bhattad
CMA PRAMODKUMAR VITHALDASJI BHATTAD, born in 1957, a fellow member of the Institute of Cost Accountants of India has been elected as the
Vice President of the Institute for the year 2014-15.
He had a very bright academic career. A science graduate with post graduation in
Economics, Diploma in Management, and first rank holder in Bachelor in General
Law and fourth rank holder in LLB.
At professional front, he started his career from private sector in 1977 and joined
Western Coalfields Ltd., a subsidiary of Coal India Limited in 1980. Presently he is
General Manager (Finance) of Western Coalfields Limited, Nagpur.
CMA Bhattad was associated with Nagpur Chapter of Cost Accountants since
student's day and he was representing as student member on the managing committee of the Nagpur Chapter, actively participated for the development of Nagpur
Chapter and rose to the level of the Chairman in 2001.
CMA Bhattad was elected to the Western India Regional Council in 2001 and
was Chairman of WIRC in 2005-06. He is elected to Central Council for the term
2011-15 from Western Region and chaired various committees viz. Region & Chapter Co-ordination Committee, Member in Industries & Placement Committee etc.
CMA PV Bhattad has been representing the Institute on the Committee on
Governmental and Public Sector Enterprises Accounting of South Asian Federation of Accountants (SAFA) and also on the Public Sector Financial Management
Committee of Confederation of Asian and Pacific Accountants (CAPA). He has
also represented the Institute in the meetings of International Valuation Standards
Council (IVSC).
AUGUST 2014
www.icmai.in
PRESIDENTS
COMMUNIQUE
MUST MAKE COST & MANAGEMENT

ACCOUNTING KEY TO BUILDING
NATIONAL COMPETITIVENESS
ing system drawn from the same data base to help the
management to make right and timely decisions.

President, The Institute of Cost Accountants of India
My Dear Professional Colleagues,

I am honored to be elected as the President of the Institute for the year 2014-15 to serve this great profession
with the support of all of you. I am grateful to my council
colleagues for showing confidence and faith in me. I thank
all of you for your trust, and shall strive to live up to your
expectations. I deem it a privilege to have been a member
of the Council since 2003, which has enabled me to directly witness the major metamorphic changes that have
impacted our Institute, profession and its growth.
The current challenge for the Indian economy is to migrate to the top of the global competitiveness index in a
short/ medium time span. Considering the maturity levels of cost and management accounting in Indian economy, caused by the legacy of protected environment, we
have a long way to traverse without any cushion of time.
We do not have the luxury of a long experience curve
for this to happen and need to work out the strategies, including policy interventions, which will position cost and
management accounting as a key platform towards building national competitiveness. The financial information
provided by financial reporting should be supplemented
with cost competitive information from a Cost Account-
www.icmai.in
Cost Records and Audit Rules 2014

We saw the release of Companies (Cost Records and Audit) Rules 2014 by the Ministry of Corporate Affairs,
which caused deep concern amongst all of us. However
our efforts in addressing these concerns could result in
some positive steps in the right direction by the Ministry. I am thankful to Shri Arun Jaitley, Honble Union
Minister for Finance, Defence and Corporate Affairs, for
constituting an Expert Committee to examine issues relating to maintenance of Cost Records and Cost Audit.
In order to have a wider participation and eliciting of
opinion from members at large from different regions
and chapters, a 'National Advisory Committee' has been
constituted to provide requisite inputs and suggestions to
the Council for onward enabling the Council to submit
its views to the to the said Expert Committee. I take this
opportunity to request all of you to come forward and
actively send your suggestions on the Companies (Cost
Records and Audit) Rules 2014 to the Institute for consolidation and placing before the Expert Committee.
Cost Management Week
I am very pleased to inform you that Institute is planning
to organize 'Corporate Cost Management Week' across
the country for our Members and the industry. The objective is to spread the message that Cost Management is
essential in order to maintain cost competitiveness in this
fiercely competitive global market.
We are also planning to conduct a series of programmes
across the country to train CMA Members in various areas of professional relevance.We would like to begin with
Internal Audit of the Pharmaceutical Industry, Telecom
Industry, Mining and Metallurgy Industry, Power Sector,
Service Sector, Stock Brokers and Depository Partici-
AUGUST 2014
PRESIDENTS
COMMUNIQUE
pants, Risk-Based Internal Audit and

Stock Audit of Commercial Banks,
Filing of e-forms by CMAs, Business
Valuation, Direct Taxes, Indirect Taxes, Cost Management, Cost Accounting Standards, Cost Audit Assurance
Standards and Generally Accepted
Cost Accounting Principles.
Technical Capability
The Institute has been providing
inputs on cost and management
accounting to the Government in
various sectors in the past few years.
Some of the key emerging sectors
taken up by the Institute have been
Health Care, Airports, Infrastructure
and Education. Since more such activities are proposed to be taken up
this year, we have given top priority
for strengthening of the technical
wings of the institute, namely, the
Technical Directorate and Board
of Studies. The strength of a professional institute lies in its ability to respond quickly to emerging technical
challenges. It is also important to focus on the capacity building of the
members to perform the prescribed
assignments to a defined quality
standard, consistently over a period
of time. It will be our prime focus to
update the knowledge of our members and assist them in remaining
proactive by providing continuous
support in knowledge-driven areas
at various levels. We intend to release various Approach Papers,Technical Papers, Research Documents
and Guidance Notes to improve the
technical competence of the members and also to enhance the quality
of assignments handled by them. I
request the members who have the
relevant expertise in various fields to
help the Institute in this exercise.
Positive Visibility
I am happy to inform you that this
10
year the Council has constituted a

CMA Connect Committee under
my chairmanship to take initiatives
on visibility and branding of the Institute and the profession.
This would require creating more
visibility and outreach not only to
Gen Y and Gen Z students but also
to members, related stakeholders and
most importantly the Government
through the media. The Institute,
which is a leading professional body
to which people look up for guidance, needs to have increased influence and brand recognition nationally and internationally.
The fundamentals of the media
strategy for Institute of Cost Accountants of India are to address the
following three:
a. Build the brand image of the Institute as a world-class professional
body with its members trusted for
vision, leadership and integrity
b. Build the image of the Institute
that leads the agenda for change by
positively influencing intellectually
with governments, regulators, standard-setters and other stakeholders.
c. Build the image of the Institute
that ensures messaging that also leads
to a roadmap for the Institute's development in the future. This primarily
drives towards the fact that while the
media strategy may help protect the
current turf and jurisdictions and add
a few new ones, it also needs to be
future gazing to ensure that the Institute and its members are seen as people talking and leading on concepts
that would help prepare for the business of tomorrow through thought
leadership on emerging trends.
This reminds of Martin Luther
King Jr. quote: 'If you can't fly then
run, if you can't run then walk, if
you can't walk then crawl, but whatever you do you have to keep moving
forward.'
AUGUST 2014
Membership Services
I would like to initiate a vigorous
membership drive to increase the
in number of members. The membership service needs to be very
time responsive and qualitative as
the members are the pillars of the
Institute and we need to look very
carefully into their issues.
The other important issues which
I will be taking up are:
Establishing Centers of Excellence in Management Accounting
in major cities with large industrial bases.
Establishing a state-of-the-art IT
framework for high-speed connectivity within all the organs of
the Institute and also with members, students and other stakeholders.
Establishing tie-ups with more international professional accounting bodies.
Improving relations with all the
regulatory bodies and authorities
to understand cost considerations
for end users in preparation and
implementation of regulations, especially those intimately related to
the rapidly growing services sector in the country.
Undertaking research studies to
propagate Cost Consciousness in
Government departments.
I wish prosperity and happiness to
members, students and their family
on the occasion of Raksha-bandhan,
Independence Day, Janmashtami and
Ganesh Chaturthi.
With warm regards,
(CMA Dr A S Durga Prasad)

1st August 2014
www.icmai.in
ICAI-CMA SNAPSHOTS
3
1. The newly elected President and Vice President with the
members of the Central Council on July 22, 2014 at the
Institute Headquarters in Kolkata
2. CMA Dr. A. S. Durga Prasad, the President being felicitated
by the Immediate Past President in presence of the Council
Members and Government Nominee on July 22, 2014 at the
Institute Headquarters, Kolkata
www.icmai.in
3. Release of the Research Bulletin, Volume 39, by the

Central Council Members on July 22, 2014, at the Institute
Headquarters, Kolkata
4. CMA P V Bhattad, Vice President being felicitated by the
Central and Regional Council Members of the Institute on July
22, 2014 at his office in Kolkata
5. National Seminar 2014 on E-banking and Financial
Inclusion: Trends, Challenges and Policies jointly organized by
the Institute and Rabin Mukherjee college on July 19, 2014.
On the dais from the right are: CMA Swagata Sen, Professor
& Dean of Commerce & Management, Calcutta University,
Mr. S K Basu, former CMD, Bank of Maharashtra, CMA
Manas Kumar Thakur, Council Member, Dr. Ramapada Bera,
Registrar of WBSU, Prof. Amal Kumar Ray, Teacher-in charge,
Rabin Mukherjee College.
AUGUST 2014
11
COUNCIL COMMITTEES
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(Council Committees for the year 2014-15)
The President and Vice-President are permanent invitees to all the committees
Standing Committees
1. Executive Committee
Quorum: 3
Chairman: 1. CMA Dr. AS Durga Prasad, President
Members
2. CMA PV Bhattad, Vice President
3. CMA Dr. SC Mohanty
4. CMA Amit Apte
5. CMA HK Goel
6. CMA Dr. PVS Jagan Mohan Rao
7. CMA TCA Srinivasa Prasad
Secretary
CMA Kaushik Banerjee, Secretary (Acting)
3. Finance Committee
Quorum: 4
Members
4. CMA Rakesh Singh
5. CMA M Gopalakrishnan
6. CMA Sanjay R Bhargave
7. CMA Dr. Sanjiban Bandhyopadhyaya
Secretary
CMA SR Saha, Director (Finance)
Other Committees
4. Disciplinary Committee
Quorum: 3
Members
3. CMA Rakesh Singh
4. Mr. Debhasish Bandyopadhyay (Govt. Nominee)
5. Mr. Alok Kumar (Govt. Nominee)
Secretary
CMA Rajendra Bose, Director (Discipline)
6. Research, Innovation & Journal Committee

Quorum: 4
Chairman: 1. CMA Manas Kumar Thakur
Members
2. CMA Rakesh Singh
3. CMA Sanjay Gupta
5. CMA DLS Sreshti
6. CMA Dr. SanjibanBandhyopadhyaya
7. Mr. Suresh Pal (Govt. Nominee)
Secretary
CMA Dr. DP Nandy, Director (Research & Journal)
12
AUGUST 2014
2. Examination Committee
Quorum: 4
Members
4. CMA Mrs. Aruna V Soman
5. CMA Sanjay Gupta
6. CMA DLS Sreshti
7. CMA Manas Kumar Thakur
Secretary
CMA Amitava Das, Director (Examination)
5. Training & Education Facilities Committee

Quorum: 4
Chairman: 1. CMA DLS Sreshti
Members
4. CMA Amit Apte
5. CMA Sanjay Gupta
Secretary
CMA Chiranjib Das, Joint Director (Studies)
7. Professional Development Committee
Quorum: 4
Chairman: 1. CMA Dr. Sanjiban Bandhyopadhyaya
Members
3. CMA Rakesh Singh
7. Mr. G Sreekumar (Govt. Nominee)
8. Dr. Asish K Bhattacharya (Co-opted)
Secretary
CMA JK Budhiraja, Director (Professional Development)
www.icmai.in
Other Committees
8. Continuing Professional Development Committee
9. Members Facilities & Services Committee
Quorum: 4
Chairman: 1. CMA HK Goel
Members
3. CMA Sanjay Gupta
5. CMA DLS Sreshti
7. Mr. K Govindaraj (Govt. Nominee)
Secretary
CMA Mrs Nisha Dewan, Joint Secretary
Quorum: 3
Chairman: 1. CMA Mrs. Aruna V Soman
Members
2. CMA Rakesh Singh
3. CMA Dr. P.V.S. Jagan Mohan Rao
4. CMA HK Goel
5. CMA DLS Sreshti
6. Mrs. Nandana Munshi, (Govt. Nominee)
Secretary
CMA Rajendra Bose, Joint Director (Membership)
10. Regional Council & Chapters Coordination Committee
11. International Affairs Committee
Quorum: 3
Chairman: 1. CMA Amit Apte
Members
3. CMA Sanjay Gupta
Secretary
CMA Arnab Chakraborty, Director (Administration)
Quorum: 3
Chairman: 1. CMA Sanjay Gupta
Members
6. Shri. Suresh Pal (Govt.Nominee)
Secretary
CMA Tarun Kumar, Joint Director (President Office)
12.Cost Audit & Assurance Standards Board
13.Taxation Committee
Quorum: 5
Chairman: 1. CMA Sanjay R Bhargave
Members
4. CMA Amit Apte
5. CMA HK Goel
8. Dr. Asish K Bhattacharya
9. Mr. SA Murali Prasad
10. Mr. K Narasimha Murthy
Secretary
CMA Dr. SK Gupta, Director (Technical)
Quorum: 5
Chairman: 1. CMA Dr. SC Mohanty
Members
2. CMA Rakesh Singh
4. CMA HK Goel
8. Mr. Ashish Kumar, (Govt. Nominee)
9. Mr. S Rajaratnam, (Co-opted)
10. Mr. P Raveendran, (Co-opted)
Secretary
CMA Chiranjib Das, Joint Director (Tax Research)
14.CAT Committee
Quorum: 3
Chairman: 1. CMA TCA Srinivasa Prasad
Members
4. CMA Amit Apte
5. CMA Sanjay Gupta
Secretary
CMA L Gurumurthy, Director (CAT)
15.Cost & Management Accounting Committee

Quorum: 4
Chairman: 1. CMA M Gopalakrishnan
Members
4. CMA Amit Apte
5. CMA Dr.Sanjiban Bandhyopadhyaya
6. CMA DLS Sreshti
7. Dr. Asish K Bhattacharya (Co-opted)
8. Mr. SA Murali Prasad (Co-opted)
Secretary
CMA Mrs. Nisha Dewan, Joint Secretary
www.icmai.in
AUGUST 2014
13
COUNCIL COMMITTEES
16. ICAI (CMA) ICAI (CA) ICSI Coordination Committee

Quorum: 3
Members
3. CMA Rakesh Singh
4. Mr. Suresh Pal, (Govt. Nominee)
Secretary
CMA SC Gupta, Director (Admin & PR)
17. Members in Service and Training & Placement Committee

Quorum: 3
Chairman: 1. CMA Dr. PVS Jagan Mohan Rao
Members
2. CMA Mrs. Aruna Soman
3. CMA Amit Apte
4. CMA HK Goel
6. CMA G Sreekumar (Govt. Nominee)
Secretary
CMA L Gurumurthy, Director (Training & Placement)
18. CMA Connect Committee

Quorum: 3
Members
3. CMA Sanjay Gupta
4. CMA DLS Sreshti
6. Mr. Ramesh Kailasam (Co-opted)
Secretary
CMA Tarun Kumar, Joint Director (President Office)
20. Cost Accounting Standards Board
Quorum: 8
Chairman
1. CMA Rakesh Singh
Members
4. CMA Amit Apte
6. Dr. Asish K Bhattacharya
7. Mr. SA Murali Prasad
8. CA SC Vasudeva
9. Dr. Sailesh Gandhi
10. CMA Brij Mohan Sharma
11. CMA AN Raman
12. Mr. Asim K Mukhopadyaya
19. Infrastructure Committee

Quorum: 3
Chairman: 1. CMA PV Bhattad, Vice President
Members
2. CMA DLS Sreshti
3. CMA HK Goel
4. Mr. K Govindaraj (Govt. Nominee)
5. Mr. G Sreekumar (Govt. Nominee)
Secretary
CMA Kushal Sengupta, Joint Director (Finance)
13. Mr. Murali Ganesan

14. Nominee of MCA
15. Nominee of CBEC
16. Nominee of CBDT
17. Nominee of ICAI
18. Nominee of ICSI
19. Nominee of SEBI
20. Nominee of CCI
21. Nominee of TRAI
22. Nominee of PNGRB
23. Nominee of CII
24. Nominee of FICCI
25. Nominee of ASSOCHAM/PHDCCI
Secretary
CMA Dr. SK Gupta, Director (Technical)
21. Board of Discipline

1. CMA Jugal Kishore Puri - Presiding Officer
2. CMA PV Bhattad - Member
3. One person designated under clause (c) of sub-section (1) of Section 16 - Member.
Secretary
CMA Rajendra Bose, Director (Discipline)
Office bearers of Regional Councils for the year 2014-2015

Eastern India Regional Council
Chairman
CMA Srikanta Kumar Sahoo
Vice Chairman
CMA Shiba Prasad Padhi
Secretary
CMA Bibekananda Mukhopadhyay
Treasurer
CMA Shyamal Kumar Bhattacharjee
Northern India Regional Council
Chairman
CMA Vijender Sharma
Vice Chairman
CMA Arvind Kumar
Secretary
CMA S K Bhatt
Treasurer
CMA Ravi Kumar Sahni
14
AUGUST 2014
Southern India Regional Council

Chairman
CMA H. Padmanabhan
Vice Chairman
CMA Ch. Venkateswarlu
Secretary
CMA S. Ramachandran
Treasurer
CMA K. Sanyasi Rao
Western India Regional Council
Chairman
CMA Ashok B. Nawal
Vice Chairman
CMA G. R. Paliwal
Secretary
CMA Dinesh K Birla
Treasurer
CMA Debasish Mitra
www.icmai.in
ECONOMY UPDATES
Customs
Amendment of notification No.
24/2005-Customs dated 1st March 2005
so as to levy BCD @ 10% on specified
telecommunication products not covered
under the ITA vide Notification No.
11/2014-Cus,dt. 11-07-2014.
81/2005-Customs, dated the 08th
September, 2005 so as to reduce BCD to
5% on machinery required for settings up of
compressed bio-gas (Bio-CNG) projects vide
Notification No. 13/2014-Cus, dt. 11-072014.
01/2011-Customs, dated the 06th January,
2011 so as to reduce BCD to 5% and CVD to
Nil on machinery for initial setting up of solar
energy production projects vide Notification
No. 14/2014-Cus, dt. 11-07-2014
Amendment of notification No. 27/2011
Customs, dated the 01st March, 2011 so as to
increase the export duty on Bauxite from 10%
to 20% vide Notification No. 15/2014-Cus,dt.
11-07-2014.
Customs, dated the 09th March, 2012 so as
to increase the variation levels in respect of
re-import of cut and polished diamonds vide
Notification No. 16/2014-Cus,dt. 11-07-2014.
Customs, dated the 17th March, 2012 so
as to provide for levy of education cess on
CVD portion of customs duty leviable on
imported IT products vide Notification No.
18/2014-Cus,dt. 11-07-2014.
Customs, dated the 17th March, 2012 so as
to provide for levy of secondary and higher
education cess on CVD portion of customs
duty leviable on imported IT products vide
Notification No. 19/2014-Cus, dt. 11-072014.
39/96-Customs dated the 23rd July, 1996 so
as to omit the words Portable X-ray machine/
system and to provide exemption for goods
www.icmai.in
imported by NTRO vide Notification No.

20/2014-Cus, dt. 11-07-2014.
230/86-Customs, dated the 3rd April, 1986 so
as to notify concerned State Governments as
sponsoring authority for Metro Rail Projects
covered under the Project Import Regulations,
1986 vide Notification No. 25/2014-Cus,dt.
11-07-2014.
In exercise of the powers conferred by
sub-clause (iii) of clause (c) of section 28E
of the Customs Act, 1962 (52 of 1962),
Central Government hereby specifies the
resident private limited company as class of
persons for the purposes of the said clause
vide notification no. 51 /2014-Customs (N.T.)
dated: 11th July, 2014.
Central Excise
Amendment of Notification No. 67/1995CE, dated the 16th March, 1995 so as to
exempt intermediate goods manufactured and
consumed captively for further manufacture of
matches vide Notification No. 19/2014-CE, dt.
11-07-2014.
Amendment of Notification No. 23/2003CE, dated the 31st March, 2003 so as to avoid
double levy of cess on DTA clearances 100%
EOUs.
Exemption of excise duty on machineries
required for initial setting up of solar energy
production projects vide Notification No.
15/2014-CE, dt. 11-07-2014.
Full exemption from excise duty on
machinery required for setting up of
compressed biogas plant (Bio-CNG) vide
Notification No. 14/2014-CE, dt. 11-07-2014.
Amendment of Cenvat Credit Rules,
2004 - Notification No. 21/2014-CENT dt.
11-07-2014
Amendment of Central Excise Valuation
Rules, 2008 - Notification No. 20/2014-CENT
dt. 11-07-2014
Amendment of Central Excise Rules,
2002 - Notification No. 19/2014-CENT dt.
11-07-2014
Central Government hereby specifies the
AUGUST 2014
resident private limited company as class of

persons for the purposes of section 23A of the
Central Excise Act, 1944 - 18/2014-CENT dt.
11-07-2014
Service Tax
As per Notification No. 15/2014-ST dt.
11-07-2014 CBEC specifies the resident
private limited company as class of persons
for the purposes of section 96A of the Finance
Act,1994
Amendment of the Service Tax
(Determination of Value) Rules, 2006 so as to
prescribe the percentage of service portion in
respect of works contracts, other than original
works contract vide Notification No. 11/2014ST dt. 11-07-2014.
As per Notification No. 09/2014-ST dt.
11-07-2014 Service Tax Rules,1994 has been
amended so as to prescribe,-(i) the person
liable to pay service tax for certain specified
services and
(ii) mandatory e-payment of service tax for all
the assessees, with effect from 1st
October,2014.
Amendment in Notification No.12/2013-ST
dated 1st July, 2013, relating to exemption
from service tax to SEZ Units or the Developer
vide Notification No. 07/2014-ST dt. 11-072014.
SEBI
Dispatch of physical Statements
to BOs having Zero Balance and Nil
Transactions
Accounts with zero balance and nil
transactions during the year: DP shall send
atleast one annual physical statement of
holding to the stated address of the BO in
respect of accounts with no transaction and nil
balance even after the account has remained
in such state for one year. The DP shall inform
the BO that if no Annual Maintenance Charge
(AMC) is received by the DP, the dispatch of
the physical statement may be discontinued
for the account which continues to remain
zero balance even after one year. DPs shall
15
ECONOMY UPDATES
16
send electronic statement of holding to all the

BOs whose email ids are registered with them.
Also, if a BO requests for a physical statement,
the DPs shall provide the same.
For the purpose of valuation of holdings
in an account as provided in clause 4(b) of
the aforesaid circular, it is clarified that the
value of suspended securities may not be
considered for the purpose of determining
eligibility of demat account as BSDA.
Circular - CIR/MRD/DP/ 21 /2014 dated: July
01, 2014
same may be intimated to investors and SEBI

once every six months on a consolidated
basis. With respect to clause 2(b) (iv),
'material' changes may be construed as
changes in the fundamental attributes of the
fund/scheme and the process for exit under
the clause shall not apply in cases where the
AIF has approval of not less than 75% of unit
holders by value of their investment in the AIF
with respect to sub-clauses (a) and (b).
Circular - CIR/IMD/DF/16/2014 dated: July
18, 2014
Delivery Instruction Slip (DIS)

Issuance and Processing
As per Circular - CIR/MRD/DP/ 22 /2014,
dated: July 04, 2014, depository participants
(DPs) shall not accept old Delivery Instruction
Slip (DIS) for execution from a Beneficial
Owner (BO) who has been issued new DIS. It
is clarified that a period of one month may be
given for receipt of DIS by the BOs. The DPs
may accept old DIS during this transit period.
Further, while issuing new DIS the DPs shall
intimate the BO that old DIS cannot be used
after the new DIS is received.
Change in Government Debt

Investment Limits
Government debt investment limit - The
incremental investment limit of USD 5 billion
(Rs. 24,886cr) will be required to be invested
in government bonds with a minimum residual
maturity of three years. Also, all future investment
against the limit vacated when the current
investment by an FII/QFI/FPI runs off either
through sale or redemption will also be required
to be made in government bonds with a minimum
residual maturity of three years Circular CIR/
IMD/FIIC/ 17/2014 dated: July 23, 2014.
Clarification and extension of

deadline with respect to circular
on 'Guidelines on disclosures,
reporting and clarifications under AIF
Regulations
The deadline for sending of annexure to the
placement memorandum to the investors
under clause 2(a) (iii) is extended till August
31, 2014.
With respect to disclosure of disciplinary
history under clause 2(a) (ii), the same shall
be applicable for the last 5 years and where
monetary penalty is involved, in cases where
such penalty is greater than Rs. 5 lakhs.
With respect to disputed tax liabilities, the
same shall not apply to liabilities in personal
capacity of an individual. Contingent liabilities
shall be as disclosed in books of accounts of
the entity.
With respect to clause 2(b) (iii), the
changes shall include modifications in terms
or documents of the fund/scheme and the
Banking
Review of norms for opening of

onsite/off-site ATMs by Urban Cooperative Banks ( UCBs)
CBS-enabled UCBs may install onsite/
off-site / mobile ATMs as per their need and
potential in their area of operation without
prior approval of RBI, subject to the conditions
given below :
i. The bank shall have an assessed networth
of Rs. 50 crore and conform to the FSWM
criteria based on the Reserves Bank
inspection Report relating to the financial
year immediately preceding the financial
year in which the ATM (s) is / are proposed
to be installed and in the absence thereto, to
the financial year just before the immediate
preceding year.
ii.The bank should have an impeccable record
of regulatory compliance and no warning letter
/ cautionary advice should have been issued
to or monetary penalty imposed on the bank
AUGUST 2014
on account of violations of RBI directives /

guidelines during the financial year in which
the ATM(s) is/are proposed to be installed
and during the two immediately preceding
financial years.
iii.Mobile ATMs shall be operated strictly
within the banks approved area of operation
and any violation thereof may lead to ban on
further branch expansion and / or grant of
other regulatory approvals apart from action
under section 47 A of the B. R. Act, 1949
(AACS). Mobile ATMs will have to be linked to
a branch as per extant instructions.
Source: Circular - RBI/2014-15/114 (UBD.
CO.LS (PCB) Cir.No.1/07.01.000/2014-15)
dated: July 2, 2014
RRBs/StCBs/CCBs - Unique Customer
Identification Code (UCIC) for banks'
customers in India
In reference to circular RPCD.CO.RRB.RCB.
AML.BC.No.82/03.05.33(E)/2011-12 dated
June 11, 2012, RBI has advised RRBs and
StCBs/CCBs to initiate steps for allotting
UCIC to all their customers while entering
into any new relationships for individual
customers to begin with, and to existing
individual customers by end-May 2013. The
period for completion of allotment of UCIC
was previously extended upto March 31,
2014. Now RBI has again extended the time
for completing the process of allotting UCIC to
existing customers up to December 31, 2014
vide Notification No. RBI/2014-15/115 (RPCD.
RRB.RCB.AML.BC.No.12/07.51.018/2014-15)
dated: July 03, 2014.
Foreign Exchange Management
Act, 1999 Import of Rough, Cut and
Polished Diamonds
The Clean Credit i.e. credit given by a foreign
supplier to its Indian customer/ buyer, without
any Letter of Credit (Suppliers Credit) / Letter
of Undertaking (Buyers Credit) / Fixed Deposits
from any Indian financial institution for import
of Rough, Cut and Polished Diamonds, may be
permitted for a period not exceeding 180 days
from the date of shipment vide Circular No.2
(RBI/2014-15/119) dated: July 7, 2014.
www.icmai.in
ECONOMY UPDATES
Levy of foreclosure charges/prepayment penalty on Floating Rate
Loans
To protect customers and to bring in uniformity
with regard to prepayment of various loans by
borrowers of banks and NBFCs, RBI has advised
NBFCs not to charge foreclosure charges/
pre-payment penalties on all floating rate term
loans sanctioned to individual borrowers vide
Notification No. RBI/2014-15/121 [DNB(PD).
CC.No.399/03.10.42/2014-15] dated: Jul 14,
2014.
Issue of Partly Paid Shares and
Warrants by Indian Company to Foreign
Investors
A review of the policy as regards partly paid
shares and warrants has been undertaken and
it has been decided as under:
(i) Eligible instruments and investors: Partly
paid equity shares and warrants issued by
an Indian company in accordance with the
provision of the Companies Act, 2013and
the SEBI guidelines, as applicable, shall be
eligible instruments for the purpose of FDI and
foreign portfolio investment (FPI) by Foreign
Institutional Investors (FIIs)/Registered
Foreign Portfolio Investors(RFPIs) subject to
compliance with FDI and FPI schemes.
(ii) Pricing and receipt of balance
consideration:
(a) Partly paid equity shares - The pricing
of the partly paid equity shares shall be
determined upfront and 25% of the total
consideration amount ( including share
premium, if any), shall also be received
upfront; The balance consideration towards
fully paid equity shares shall be received
within a period of 12 months.
(b) Warrants - The pricing of warrants and the
price/conversion formula will be determined
upfront and 25% of the consideration
amount will be received upfront. The balance
consideration towards fully paid-up equity
shares will be received within 18 months.
Source: Circular No.3 (RBI/2014-15/123)
dated: Jul 14, 2014
Data Format for Furnishing of Credit
www.icmai.in
Information to Credit Information

Companies and other Regulatory
Measures
New recommendations and modifications
has been received regarding Creating
Awareness about Credit Information Report
(CIR), Credit Information Reports (CIRs)
/ Credit Bureau Usage in all Lending
Decisions and Account Opening, Populating
Commercial Data Records in Databases of
all CICs, Standardization of Data Format,
Technical Working Group, Rectification of
Rejected Data, Data Quality Index, Credit
Score and Standardizing Format of Credit
Information Report (CIR) vide Notification No.
RBI/2014-15/128 (RPCD.RRB.RCB.BC.No.
13/03.05.33/2014-15) dated: July 15, 2014.
Public Provident Fund Scheme, 1968
and Senior Citizen Savings Scheme,
2004
Amendments in Rules
Sr. Notification
Title
No. No. & date
G.S.R.392(E) Senior Citizen Savings
1
dated June 9, Scheme (Amendment)
Rules, 2014
2014
G.S.R.224(E) Senior Citizen Savings
2
dated March Scheme (Amendment)
Rules, 2014
13, 2014
G.S.R.225(E) Public Provident Fund
3
dated March Scheme (Amendment)
Rules, 2014
13, 2014
The contents of these circulars may be

brought to the notice of the branches of bank
operating the Public Provident Fund Scheme
(PPF), 1968 and Senior Citizen Savings
Scheme (SCSS), 2004. These should also
be displayed on the notice boards of your
branches for information of the PPF, 1968 and
the SCSS, 2004 subscribers.
Source: RBI/2014-15/130 (DGBA.CDD. No.
293/15.02.001/2014-15) dated: July 17, 2014.
INDIAN ECONOMY - NEWS

RBI eases reserve norms for banks'
infra bond sales
The Reserve Bank of India said that it will
allow long-term bonds raised by banks for
infrastructure lending to be exempted from
AUGUST 2014
mandatory reserve requirements, in line with

the government's announcement in the budget
last week.
Source: Reuters, dated: 15 Jul 2014
June inflation eases to record low,
drought remains a risk
India's inflation eased in June after the new
government curbed farm exports, but a
growing risk that drought will damage summer
crops could encourage the central bank to
keep interest rates on hold at a policy review
meeting early next month.
Finance secretary Mayaram defends
4.1 percent fiscal deficit target
Finance Secretary Arvind Mayaram said that
plans announced in this week's budget to
stick to a fiscal deficit target of 4.1 percent of
GDP are "very credible", despite criticism from
ratings agencies that the number is optimistic.
Industrial output grows 4.7 pct in
May y/y
India's industrial production grew an annual
4.7 percent in May, the highest since October
2012, providing welcome positive news
for Prime Minister Narendra Modi's new
government as manufacturing activity and
electricity generation increased.
Jaitley talks tough on Indian budget,
shares hit record highs
Finance Minister Arun Jaitley's warning
against "mindless populism" propelled Indian
stocks to record highs on 2nd July 2014, as
investors bet that his maiden budget next week
will stabilize the wobbly public finances.
(For further details on these issues,
please visit the Institutes website:
www.icmai.in for the complete CMA
E-Bulletin, August 2014, Vol 2, No.
8, in the Research and Publications
section.)
17
theMANAGEMENT
ACCOUNTANT
THE JOURNAL FOR CMAs
ISSN 0972-3528
PAPERS INVITED
Cover stories on the topics given
below are invited for The Management
Accountant for the four forthcoming
months.
Issue months
September 2014
October 2014
November 2014
December 2014
Themes
Sub-topics
Forensic Accounting (FA) & Audit
Definition, objectives and techniques

FA in comparison to other accounting parameters
FA applicability and consequence in todays economy
FA and Performance Evaluation
Fraud Risk Management Strategy
FA - an application of Techno-Management Accounting
Fraud Triangle and examination
Urban Development and

Economic growth
Uniqueness of Municipal Accounting

Urbanism & Consumption Amenities
Rural-Urban continuum & environmental issues
Financing urban infrastructure & town planning
Performance Evaluation parameters of Urban Projects
Project monitoring for sustainable growth
Comparative Analysis of Urban Projects India & Abroad
Agriculture and the Indian Economy
Pricing of agricultural products and its marketing

Cost of input, storage, distribution, R&D and its analysis
Drop out problem of agricultural land and labour
Food security
Application of cost management in agriculture
Accounting of agricultural activities
Agriculture and sustainable economic growth
Strengthening Human Resource

Building the Nation
Human Resource Accounting

HRIS for strategic decision making
Ethical HR and Governance for sustainable growth
Cross-cultural issues in HRM
Industrial relations and challenges in the new era
Compensation and benefits for effective talent management
Performance management for strategic goal setting
Case Studies
The above subtopics are only suggestive and hence the articles may not be limited to them only.
Articles on the above topics are invited from readers and authors along with scanned copies of their
recent passport-size photograph and scanned copy of declaration stating that the articles are their
own original and have not been considered for publication anywhere else. Please send your articles
by e-mail to editor@icmai.in latest by the 1st of the previous month.
Directorate of Research, Innovation & Journal
The Institute of Cost Accountants of India (Statutory body under an Act of Parliament)
CMA Bhawan, 4th Floor, 84 Harish Mukherjee Road, Kolkata - 700 025, India
Board: +91-33- 2454 0086 / 87 / 0184, Tel-Fax: +91-33- 2454 0063
www.icmai.in
18
JULY 2014
www.icmai.in
COVER
STORY
THE SOCIETAL IMPORTANCE

OF COST ACCOUNTING
STANDARDS
The Cost Accounting Standards are principles that deal
with the principles of costing, and provide guidance on the
preparation of General Purpose Cost Statements, which
require attestation by the cost accounting profession,
wherever applicable
CMA Rakesh Singh
Chairman
Cost Accounting
Standards Board, and
Former President,
The Institute of Cost
www.icmai.in
AUGUST 2014
19
COVER
PRESIDENTS
STORY
COMMUNIQUE
FACS mission statement gives

due emphasis to the public interest and recognizes that a fundamental way to protect this public
interest is to develop, promote, and
enforce internationally recognized
standards as a means of ensuring
the credibility of information upon
which investors and other stakeholders depend. IFAC, therefore, strives
to serve the public interest through
the facilitation of the development
of standards in auditing, education,
ethics, and public sector financial reporting by:
advocating for transparency and
convergence in financial reporting; and
implementing a mem bership
compliance program.
IFAC also provides International
Good Practice Guidance for professional accountants in business.
In line with this framework, and
even prior to the foundation of
IFAC, professional and regulatory
bodies all over the world develop accounting standards based on
generally accepted principles and
practices followed in their countries. These have been enforced
through law, promoted by a regulatory mechanism, or voluntarily
followed by all business entities.
Standards help to ensure uniformity and consistency in the preparation and reporting of various financial statements.
Post-World War II, all economies,
irrespective of their economic structure, started to lay much greater emphasis on cost accounting principles
and ensured that all business organizations follow them, at the very least
when dealing with the state. Cost accounting was developed as a separate
discipline in accountancy, and promoted efficiency in resource utilization. Gradually, new skills developed
20
in this field and it slowly attained a

prime position in any organizations
functioning.
IFACs International Good Practice Guidance, Evaluating and Improving Costing in Organizations,
highlights the importance of cost
accounting to organizations:
The creation, operation, alteration,
and cessation of every action and
function in an organization, whether
within the private, public, or voluntary sectorall incur costs. Costingthe accumulating and assigning
of costs to the organizations various
activitiesenables the organizations
cost structure to be understood, explained, and improved.
The guidance recognizes the importance of costing in assessing organizational performance in terms
of shareholder and stakeholder value.
It informs how profits and value are
created, and how efficiently and effectively operational processes transform input into output. It includes
product, process, and resource-related information covering the organization and its value chain. Costing
information provides feedback on
past performance but should also be
used effectively to motivate future
performance.
In India, the Cost Accounting
Records Rules set by the government for 44 industries deal with
the various items of cost and the
way in which they have to be reported in the Cost Statement in
accordance with the cost accounting principles. Since there were no
generally accepted cost accounting
principles, these were left to be
understood by each company or
by each cost accountant, as they
understand or with reference to
the explanations given in various
textbooks on the subject.
This led to adoption of practices
AUGUST 2014
with a lack of uniformity in preparation and presentation of cost

statements. To promote uniformity,
there was an urgent need to integrate, harmonize, and standardize
the cost accounting principles and
practices. Therefore, the Generally
Accepted Cost Accounting Principles have been clearly defined and
well documented in the form of
the Cost Accounting Standards.
The Cost Accounting Standards:
provide a structured approach
to measurement of costs in
manufacturing process or service industry;
integrate, harmonize, and standardize cost accounting principles and practices;
provide guidance to users to
achieve uniformity and consistency in classification, measurement, assignment, and allocation
of costs to products and services;
arrive at the basis of computing
the cost of product, activity, or
service where required by legal
or regulatory bodies;
enable practicing members to
make use of Cost Accounting
Standards in the attestation of
General Purpose Cost statements; and
assist in clear and uniform
understanding of all the related
issues by various user organizations, government bodies, regulators, research agencies, and
academic institutions.
Facilitating and promoting uniformity and consistency not only
helps in better understanding (e.g.,
clear and in a uniform manner) of all
the related issues by companies and/
or by the professional fraternity, but it
also helps various user organizations,
government bodies, regulators, research agencies, and academic institutions. Clearly defined and well-doc-
www.icmai.in
umented Generally Accepted Cost

Accounting Principles govern a highly professional job that can only be
done by the concerned professional
bodies and individuals in India.
Precisely for these reasons, various national level institutes have
issued or are in the process of issuing standards in areas under their
domain. For example, the Institute
of Chartered Accountants of India
issues financial accounting and auditing standards; Institute of Company Secretaries of India issues
secretarial standards; and the Institute of Cost Accountants of India
issues cost accounting and audit
standards. The Institute of Cost
Accountants of India has assigned
topmost priority for issuing all required cost accounting standards.
These are prepared in consultation
with all stakeholders.
The Cost Accounting Standards are principles based, deal with
the principles of costing, and provide guidance on the preparation
of General Purpose Cost Statements, which require attestation
by the cost accounting profession,
wherever applicable. The Cost Accounting Standards Board (CASB)
should also keep in focus the Generally Accepted Cost Accounting
Principles and codify them so that
with the passage of time, an accepted framework of can evolve
and remain capable of adoption by
all users of the standards, including
industries, professionals, and other
stakeholders.
The Cost Accounting Standards framework has been adopted
by the CASB with the following
structure:
1. Introduction: brief details
about the topic and its role in the
cost statements
2. Objectives: basic objective
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that necessitated the standard

3. Scope: scope of applicability
4. Definitions: terminology used
in the standard
5. Principles of Measurement:
principles behind the ascertainment, measurement, determination, and categorization of elements of cost
6. Assignment of Costs: basis of
assignment of costs to the product
or service and the generally accepted cost accounting principles
behind such assignment
7. Presentation: essence of the
standard and the prescriptive nature to be followed for any certifi-
cation requirement
8. Disclosure: specific disclosures
required in the presentation to
provide clarity
The CASB has identified 39 areas
for developing the CASs, which include the 22 standards so far. Of
these, 21 areas relate to components
of cost and the remaining 18 areas
are on cost accounting methodologies. These areas are broadly in line
with the Cost Accounting Records
Rules already framed by the government and in vogue for different
industries. Source: IFAC website
rsco@aicmas.com
CAS No.
Title of Cost Accounting Standard
CAS 1
Classification of Cost
CAS 2
Capacity Determination
CAS 3
Overheads
CAS 4
Cost of Production for Captive Consumption
CAS 5
Average (equalized) Cost of Transportation
CAS 6
Material Cost
CAS 7
Employee Cost
CAS 8
Cost of Utilities
CAS 9
Packing Material Cost
CAS 10
Direct Expenses
CAS 11
Administrative Overheads
CAS 12
Repairs And Maintenance Cost
CAS 13
Cost of Service Cost Centre
CAS 14
Pollution Control Cost*
CAS 15
Selling and Distribution Overheads
CAS 16
Depreciation and Amortisation
CAS 17
Interest and Financing Charges
CAS 18
Research and Development Costs
CAS 19
Joint Costs
CAS 20
Royalty and Technical Know-How Fee
CAS 21
Quality Control
CAS 22
Manufacturing Cost
AUGUST 2014
21
COVER
STORY
COMPETITIVE STRATEGY
AND COST ACCOUNTING
STANDARDS
In a competitive business environment, CMAs have to play
a challenging role and they have to give detailed notes and
explanations if there is any anomaly or abnormal change in
comparative cost per unit of any cost compared to last year
CMA Sanjay Kumar Dey
Officer (Accounts)
Tide Water Oil Company (India)
Limited, The Andrew Yule
Group, Kolkata
OST and Management

Accounting was evolved
in early 20th Century. Cost
and Management Accounting is the
modern concept of financial accounting. Limitation of financial accounting has been addressed in Cost
and Management Accounting. For
Example, financial accounting fails
to provide product wise profit/ (loss)
report where as Cost and Management Accounting provide product
wise profit/ (loss) report which is
22
AUGUST 2014
www.icmai.in
more detail and transparent compare

to financial accounting.
At present, Cost and Management
Accounting information has been
accepted and mostly used by CBDT,
CBEC and State Government for
ascertaining appropriate tax. As a
result, Government can get its share
transparently.
In a competitive environment,
the management of a firm has to
take decisions about profit, dividend
and share valuation. There is an inverse relationship between profit and
competitiveness. In a more competitive industry, firms are price taker.
They cannot fix their price above
the competitor. As the price is fixed,
in order to increase the profit of the
firm, they need to emphasis on the
cost reduction at better quality, increase in volume and optimum utilisation of firms resources.
Minimisation of cost in better
quality of product and increase in
volume is the ultimate objective and
challenge of management of a firm.
SWOT analysis of a firm in competitive environment is as follows:
Strength: Quality of Product
Weakness: Cost Minimisation
Opportunities: Market share of
the product
Threat : Competitiveness
The management of the firm has
a target to increase the value of share
and wealth of the firm. In order to
maintain the market value of share,
attractive EPS and DPS is required.
Thus to increase the performance of
the firm different types of tools and
techniques are being applied like target costing, Activity Based Costing,
ABC Analysis and cost volume and
profit analysis etc.
In this competitive environment,
the challenging role of CMA is not
only to comply with Act and Rule
but also it is a commitment towards
www.icmai.in
Table 1
CAS No
Title
Objective
CAS1
Classification of Cost
For preparation of Cost Statements
CAS2
Capacity Determination For determination of capacity
CAS2
(Revised
2012)
To bring uniformity and consistency in the principles

Capacity Determination and methods of determination of capacity with
reasonable accuracy.
CAS3
Overheads
For Collection, Allocation, Apportionment and

Absorption of overheads
CAS3
(Revised
2011)
Overheads

and methods of determining the Overheads with
CAS4
Cost of Production for

Captive Consumption
To determine the assessable value of excisable

goods used for captive consumption.
Annexure to Appendix 1 (CAS-4)

Average (equalized)
Cost of Transportation
To determine averaged/equalized transportation cost
CAS6
Material Cost

and methods of determining the material cost with
reasonable accuracy in an economically feasible
manner.
CAS7
Employee Cost

and methods of determining the Employee cost with
CAS8
Cost of Utilities

and methods of determining the Cost of Utilities with
CAS9
Packing Material Cost

and methods of determining the Packing Material
Cost with reasonable accuracy.
CAS10
Direct Expenses

and methods of determining the Direct Expenses
with reasonable accuracy.
CAS11
Administrative
Overheads

and methods of determining the Administrative
Overheads with reasonable accuracy.
CAS12
Repairs And
Maintenance Cost

and methods of determining the Repairs and
Maintenance Cost with reasonable accuracy.
CAS13
Cost of Service Cost

Centre

and methods of determining the Cost of Service
Cost Centre with reasonable accuracy.
CAS14
Pollution Control Cost*

and methods of determining the Pollution Control
Costs with reasonable accuracy.
CAS5
AUGUST 2014
23
COVER
STORY
society and common people. CMAs

have to prepare the report not only
based on financial report and other
report but also they have to examine
the entire business process, market
situation, internal checking, internal
control, vouching of various documents, physical verification of Stock
etc. and have to analysis the entire
mission, vision, objective, tactics, and
strategy of the firm. CMAs have to
give their opinion based on application of Cost Accounting Standard
(CAS) and overall situation of the
firm.
According to the dynamic competitive environment, there has been
significant change in the application
of costing principle and practice. In
order to apply uniform and consistent cost principle and practice, The
ICAI has issued twenty two Cost
Accounting Standards over the period of time as mentioned in Table 1.
The professional business has been
also more competitive. In order to
survive in this competition, dynamic
changes in knowledge, professionalism, innovation, development are
required. In order to apply the innovative idea, principle, transparency
in cost accounting, CMAs are required to work together. As a result,
the utility of cost accounting will be
acceptable to all industries. In addition to above, following areas need
to be developed in Cost Accounting
Standard.
1. Contingent Expenses
2. Prior period Expenses
3. Provision for Expenses
4. Deferred Expenses
5. Penalty Expenses
6. Non-recurring Items
7. Unproductive Expenses
8. Avoidable Expenses
9. Legal Expenses
10. Retirement Benefit
24
CAS No
Title
Objective
CAS15
Selling and Distribution

Overheads

and methods of determining the Selling and
Distribution Overheads with reasonable accuracy.
CAS16
Depreciation and
Amortisation

and methods of determining the Depreciation and
Amortisation with reasonable accuracy.
CAS17
Interest and Financing

Charges.

,methods of determining and assigning the Interest
and Financing Charges with reasonable accuracy.
CAS18
Research and
Development Costs

and methods of determining the Research, and
Development Costs with reasonable accuracy and
presentation of the same.
CAS19
Joint Costs

and methods of determining the Joint Costs.
CAS20
Cost Accounting
Standard on Royalty
and Technical KnowHow Fee

and methods of determining the amount of Royalty
and Technical Know-how Fee with reasonable
accuracy.
CAS21
Cost Accounting
Standard on Quality
Control
To bring uniformity, consistency in the principles,

methods of determining and assigning Quality
Control cost with reasonable accuracy.
CAS22
Cost Accounting
Standard on
Manufacturing Cost

and methods of determining the Manufacturing Cost
of excisable goods
Source: http://casbicwai.org/CASB/casb-resources.asp
11. Valuation of Stock

1. Contingent Expenses: Contingent Expenses is expenses which
is likely to be incurred in future but
related to current year. For example,
suppose labour contractor demand
for extra amount of say Rs. 2 crore
which is beyond the contract for extra work.The labour contractor took
legal action in the year 2000-01before the honourable court.The honourable court gave direction in the
year 2013-14 that the demand of
contractor is legitimate and the contractor will be paid Rs. 2 Crore. In
this situation, whether the labour
cost of Rs. 2 Crore will be recognised
in 2000-01 or in 2013-14. Proper
guideline is required for recognition
and presentation of above situation.
AUGUST 2014
There are three types of possibilities.

a) If the cost is recognised in 200001 and the verdict of honourable
court is against of labour contractor.
b) If the cost is not recognised in
2000-01 and the verdict of honourable court is in favour of labour contractor.
c) If the cost is recognised in 201314 based on the verdict of honourable court.
In the above situation, as we follow the conservatism principle in
accounting, cost will be recognised
in 2000-01 and maintain a separate
account of Rs. 2 Crores (if there is
other contingent expenses) or give
credit labour account in 2013-14
(if there is no other contingent
expenses) in case of the verdict of
honourable court is against of la-
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bour contractor.
2. Prior period Expenses: Prior
period expenses is expenses which
was not recognised in related previous any year as it was unknown, is
to be recognised in current period as
it has come to know. For example,
salary and wages has been revised in
2013-14 w.e.f. 2010-11. Arrear salary
wages of 3years is say 10 crores. If the
10 crores is recognised in 2013-14,
the profit for the year 2013-14 will
not be true. Proper guideline is required for recognition and presentation of Prior period Expenses. It has
to be disclosed separately and what is
the impact in profit if such items are
considered in the current year. Detail
auditor note is required for the impact in current year and concerned
year e.g. the auditor has to give comment on the impact of Rs. 10 crores
in 2010-11 and 2013-14.
3. Provision for Expenses:
When goods/services are consumed but no accounting entry has
been passed in books of accounts.
In such cases, estimated cost is recognised in order to ascertain true
and fare profit. It is also a tool to
increase or decrease of profit as
per requirement. There is no clear
guideline for provision for expenses. Provision for expenses may be
including of financial expenses e.g.
bad debt which is not to be considered in cost accounting. In case of
vouching of provision for expenses,
following areas are to be examined
a.
Verification of purchase order/
work order.
b. Physical verification of goods/services which have been delivered.
c.
Confirmation from the parties,
who has supplied goods/services,
has recognised as revenue in books
of account.
www.icmai.in
d. Method of calculation.
e. Certificate from concern expert.
4. Deferred Expenses: Like provision for expenses there is no such
guideline for deferred expenses. Deferred expenses is opposite of provision for expenses.When any cost has
been incurred and entry has been
passed in books of accounts but the
cost is related to future period to
come. It is also a tool to increase or
decrease of profit as per requirement.
In case of vouching of deferred expenses, following areas are to be examined
a.
Verification of purchase order/
work order.
b. Physical verification of goods/services which have been delivered.
c.
Confirmation from the parties,
who has supplied goods/services,
has recognised as revenue in books
of account.
d. Method of calculation.
e. Certificate from concern expert.
5. Penalty Expenses: Any expense
is incurred by the management for
their own default or wrong decision. It is a financial expense which
can not be considered in cost accounting as expenses. It will appear
in reconciliation of profit between
finance and cost.
6. Non-recurring Items: Non-recurring expenses or income is expense or income which does not
take place in every year. Auditor has
to give detail report on nature of expenses, reason of expenses and impact of such expenses.
7. Unproductive Expenses: Unproductive expense is expenditure
which is not relating to production
or value addition process. Unproductive expenditure may be avoid-
AUGUST 2014
able and unavoidable. For example,

loss of manpower, loss of machine
hour due to loss of power, breaks
down of machine, strike etc. Auditor
has to give detail report on nature of
expenses, reason of expenses and impact of such expenses.
8. Avoidable Expenses: Avoidable
expenses are such unproductive expenses which can be voided through
right decision at right time. For example, distribution of job throughout the month can reduce the over
time labour cost. Auditor has to give
detail report on nature of expenses,
reason of expenses, and impact of
such expenses and how the expenses
could be avoided.
9. Legal Expenses: Legal expenses is expense which is required in
every aspect of business activity
such as R&D, trade mark, income
tax, corporate affair, contract, sales
tax, service tax etc. Generally, Legal
expense is considered under office
and administrative overhead but legal expense should be classified and
allocated into following categories
a) Research & Development: Legal
expense to be allocated to R&D Expense
b) Trade Mark: Legal expense to be
allocated to Selling & Marketing
Overhead
c) Royalty: Legal expense to be allocated to respective product.
d) Income Tax: Legal expense not to
be allocated in cost accounting
e) Corporate Affairs: Legal expense
to be allocated to Office and Administrative overhead.
f) Sales tax: Legal expense to be allocated to Material Cost.
g) Service Tax: Legal expense to be
allocated to Material Cost
h) Others: Legal expense to be allo-
25
COVER
STORY
cated based on appropriate cost

driver.
10. Retirement Benefit: Retirement benefit is the expense which
is to be incurred in future but partial benefit of such expense has been
utilised current year. In case of retirement benefit, method of calculation as per accounting standard
-15 issued by Institute of Chartered
Accountants of India is followed
but new and better method can be
developed by the Institute of Cost
Accountants of India. Retirement
benefit is generally considered in
office and administrative overhead
but retirement benefit is given to
all employees who work in plant
and office. So the retirement benefit
has to be classified into two broad
categories (1) Direct Expenses [for
worker who directly involve in production process] (2) Indirect Expenses. Further, the indirect expenses has to be classified into (a) factory
expense [for employee who work in
factory but not directly involve in
production] (b) office & administrative overhead [for employee who
work in office].
11. Valuation of Stock: Valuation
of Stock plays a significant role for
determining the true profit of the
firm. Valuation of material cost in
CAS 6 gives the guideline for valuation for stock but more clear guideline is required for;
a.Valuation of raw material
b.Valuation of work-in-progress
c.Valuation of finished goods
Valuation of raw material: There
are two types of raw materials such as
i) Imported
ii) Indigenous
There should be clear guideline
for valuation of imported & indigenous raw materials. Following costs
26
IN A COMPETITIVE
ENVIRONMENT,
THE CHALLENGING
ROLE OF A CMA
IS NOT ONLY TO
COMPLY WITH THE
ACT AND THE RULE
BUT IT IS ALSO
A COMMITMENT
TOWARDS SOCIETY
AND THE COMMON
PEOPLE
may be considered for valuation for

imported raw material.
a) Raw material cost
b) Freight cost ( towards port)
c) Insurance Cost
d) Custom Duty
e) Other non recoverable taxes
f) Carrying cost ( at port site)
g) Freight cost (towards plant i.e. inbound logistic)
h) Carrying cost ( at plant site)
Following costs may be considered
for valuation for imported raw material.
b) Freight cost (towards plant i.e. inbound logistic)
c) Insurance Cost
d) Carrying cost ( at plant site)
e) Non recoverable taxes
Valuation of work-in-progress:
There should be clear guideline for
AUGUST 2014
valuation of work-in-progress. Following costs may be considered for

valuation of work-in-progress.
b) Allocation of direct wages
c) Allocation of direct expenses
d) Application of equivalent production
e) Identify the component of factory
cost/overhead
f)
Apportionment of factory cost/
overhead
g) Apportionment of other indirect
expenses
Valuation of finished goods: There
should be clear guideline for valuation of work-in-progress. Following
costs may be considered for valuation of finished goods.
b) Allocation of direct wages
c) Allocation of direct expenses
d) Application of equivalent production
e) Identify the component of factory
cost/overhead
f)
Apportionment of factory cost/
overhead
g) Apportionment of other indirect
expenses
h) Apportionment of office and administrative overhead
i) Apportionment of carrying cost
j)
Apportionment of freight cost
(outbound logistic).
Finally, in a competitive business
environment, the CMAs have to play
a challenging role and CMAs have to
give detailed notes and explanations
if there is any anomaly or abnormal
change in comparative cost per unit
of any cost compared to last year. In
order to create more value added reports in comparison to other reports,
CMAs have to give more transparent
and detailed reports which is more
useful to user.
sanju.dey42@gmail.com
www.icmai.in
CAS A MUST
FOR COST COMPETITIVENESS:
EVIDENCE FROM SOME
COMPANIES
High net worth companies follow the cost accounting
standard and that is why they are able to manage costs
better than other companies
T
Ujjwal Das
Research Scholar,
Assam University,
Silchar
Prof. A. L. Ghosh
Professor, Assam
University, Silchar
www.icmai.in
O be cost competitive in the market,

company should provide delicious
quality of products at comparatively
lesser cost as compared to other competitors.
It will help to amplify the competitive capability of individual firms by taking advantage
of obtainable resources efficiently and successfully. Cost competitiveness has been at the
heart of the Japanese success in 1980s. Target
Costing and Kaizen Costing are two mantras
contributed by the Japanese to the dictionary
of management accounting. An economy like
Japan has experienced the evolution of cost
accounting standards as a part of the pre and
post world war build up of economic revival.
Sec. 209(1) (d) of the Companies Act, 1956
provides for maintenance of cost accounting
records for certain classes of companies and
section 233B provides for audit of cost accounts of such companies as ordered by the
Central Government. The Institute of Cost
Accountants of India (ICAI) recommends the
Cost Accounting Standards (CAS) to be followed by companies in India to which statutory maintenance of cost records is applicable.
A Group of Experts appointed by the Ministry of Corporate Affairs, advised the Government to enable development of relevant
cost accounting methodologies and standards
to increase the competitiveness of the Indian manufacturing sector. In September 2000,
IFAC published a Study Paper where they
concluded that a useful governmental perspective on cost accounting is aimed at improving public sector financial management
and accountability. IFAC has started recognizing the need for adequate cost information and reporting framework to the governing body of enterprises for risk-management
and decision making needed to enhance the
stakeholders value.
Literature review: Relevant Study & literatures were reviewed to identify the research gap if any in the context of accounting standard specially CAS and its impact in
cost competitiveness of the firms.The history
of cost accounting dates back to the 1800s
with the emergence of large enterprises
like textile mills, railroads, steel companies,
AUGUST 2014
27
COVER
STORY
TO FACE THE GLOBAL COMPETITION AND CHALLENGES

TO MINIMIZE COST OF PRODUCTION WITH HIGH
QUALITY PRODUCTS ARE THE MAJOR CONSCIOUS
CONCERNS OF THE INDUSTRIES
and retail companies. The need for

measuring efficiency and determining the cost of converting raw
materials and transporting goods or
passengers gave rise to management
accounting systems to support the
profit-seeking activities of entrepreneurs. By the late nineteenth century, cost standards for improved efficiency and pricing were developed.
In 1925, according to Johnson and
Kaplan, virtually all of the traditional cost accounting practices prevalent today had been developed,
including cost accounts for labor,
material, and overhead; budgets
for cash, income, and capital; flexible budgets, sales forecasts, standard costs, variance analysis, transfer
prices, and divisional performance
measures (Johnson, 1987). In the
Business Council Bulletin concern
(Australia, 1990) was expressed that
standards, despite being theoretically desirable, might have undesirable
economic consequences. A dependable cost management system helps
in reducing costs, improving productivity, and assessing product-line
profitability (Hansen , 2009).
By using the concepts within cost
accounting, businesses are better
equipped to enter the global market and compete in todays modern
world. The use of standard costing
28
variance analysis has been viewed

as the most effective tool for cost
control (Kaplan, 1990). Michael
E. Porters notes that a business can
develop a sustainable competitive
advantage by following two strategies: Cost leadership strategy or differentiation strategy (Porter, 1985
). Under a cost leadership, Kleiman
argues that firms must provide the
same services or products as their
competitors, but at a lower cost
(Kleiman, 2000). True competitive
advantages achieved through higher
entrant product quality and product
advantage facilitate entry and lead to
higher market shares (Gatignon H,
1990). Fischer and Schornberg (Fischer, 2007) have argued that market
share is a useful competitiveness indicator at the company level even
when analyzing aggregates, market
shares may be problematic.
From the aforesaid literature review we have observed that no
study has so far been commenced
considering the variables from CAS
impacting firms cost competitiveness position as well as profitability
and market share covering global
financial meltdown period.
Statement of the problem: To
sustain in the global and domestic
market a firm must be aware for
AUGUST 2014
proper utilization of resources used

by them for production, finally to offer reasonable price to the end user.
To face the global competition and
challenges to minimize cost of production with high quality products
are the major conscious concern
of the industries. The industries
can optimize their cost of production by adopting cost control techniques. Porter (1998) argues that
competitiveness meant the ability
to compete in world markets with a
global strategy. Cost audit system by
their CAS helps to establish proper
strategies by grows the consciousness about cost advantage to face
the global challenges. Cost audit
focuses on performance evaluation
and production efficiencies by detecting the efficient use of labour
and optimum use of material and
its wastage. It is necessary to provide
adequate information support concerning the process of business strategy formulation and implementation, i.e. finding adequate directions
leading to the strengthening of the
competitive position on the increasingly turbulent market. In a global environment, companies have
even more competitors to contend
against in the industry. With reliable
cost accounting by help of CAS, the
business can achieve a competitive
www.icmai.in
edge against its competitors.

Objective of the study: The main
objective is framed for the study to
measure CASs impact among the
companies to achieve cost competitiveness.
Research methodology: Analytical research was conducted to
attain the aforesaid objective. We
consider six companies from the
list of cost audit mandatory companies as per ICAI /MCA rules on
the basis of highest net worth( more
than Rs.33000 cr) and on the other
hand lowest net worth (Rs.1 cr to
2 cr) companies as on 31st March
2013. The relevant secondary data
have been collected from the Capitaline NEO software for a period
of six years from 2007-08 to 201213. To analyze the cost efficiency
and cost competitiveness position
of the cost audit report publishing company we have considered
variables like Sales Turnover (ST),
Raw Materials(RM), Power & Fuel
Cost(P&F), Employee Cost(EC),
Other Manufacturing Expenses(OMF), Selling and Administration Expenses(S&Adm.), Miscellaneous Expenses(Misc.Exp.), Total
Expenditure(TE), Reported Net
Profit(RNP), Market Share(MS)
during the period covering six years
ending on March 31, 2013.
For measuring cost efficiency, the
following model has been used:
and UICM = Expense Utilization

Index
Performance index of cost management can be, thus, define as:
Performance
Index (PI CM) =
(i)
Where Ci = individual cost items IB

= business index defined as:
and N= number of cost items,
PICM>1 indicates efficiency in managing cost items of a firm.
Performance index represents
the average overall performance in
managing the components of cost
items; expense utilization index indicates the ability of the firm in utilizing its expenses as a whole for the
purpose of generating total business.
Expense utilization index can, so be
defined as:
Expense Utilization Index
(UICM) =
(ii)
Where E= Total Expenses
Total Business
Efficiency index of cost management is the product of performance
index and expense utilization index
and it is the final indicator of efficiency in cost management. Thus,
Efficiency
Index (EI CM) =
(iii)
i1
Where, EICM= Efficiency Index
of cost management, PICM= Performance Index for cost management,
Bhattacharya (Total Management by ratios,
Sage Publication, 2007, p. 212) developed this
model for a manufacturing firm.
1
www.icmai.in
In order to examine cost efficiency of the selected firm, all the three
indices have been calculated and
analyzed in this study.
5. Results and discussion:
Performance index of cost
management
Performance index of cost man-
AUGUST 2014
agement represents average performance index of the various cost

components. A firm is said to have
managed its cost items efficiently if
the proportionate rise in volume of
business is more than proportionate
increase in different cost items. Numerically, performance index more
than 1 indicates efficient management of cost items. Annexure table
1 show that Average performance
index among the selected high net
worth companies is 2.0117 that
shows us a healthy managed cost
item for following cost audit and for
their efficient key people. Reliance
Industry index is 6.24 due to control of Misc. expenses during the
year end 2009-10. Bharti Airtel (index 1.53) manages cost items very
well and it help to run the turf of
Telecom service provider industry
i.e. Industry CAGR 7.72 % where
as Airtels growth is 12.03% during
the periods of 2007-08 to 2012-13.
Finally it increases market share 4%
CAGR over the said periods. In
Aluminum sector Hindalco Inds
avg. performance index is 1.02 and
cos business growth was more than
the industry average growth during
the periods. During the economic
slowdown period all the companies
under high net worth are able to
recover from the financial turmoil
situation and it assuring by high and
positive business growth (11.2267)
& operating profit (0.275) during
these periods along with positive
CAGR of market share.
On the other hand average performance index among the selected
low net worth companies is 1.2033
that shows us that these companies
are inefficient to manage cost items
during the recession periods. In case
of Gagan Gases performance index
1.6 but their business was down day
by day (sales CAGR -21.91), the
29
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STORY
same thing is happen in case of Cosboard Inds its performance index is

1.21 and sales down by -2.74 during the periods of 2007-13. Everlon
Synth outperformer among the low
net worth companies its average
performance index is 1.20 and Cos
sales CAGR (24.77) bet the industry performance (19.37).
Utilization Index of
cost management
Expense utilization index indicates
the ability of the firm in utilizing
its expenses as a whole for the purpose of generating total business. If
an increase in total expenses is coupled with more than proportionate
increase in business, the degree of
utilization of expenses with respect
to business is said to have improved
and vice versa. Thus, a value of
utilization index greater than one
is desired. IOCL performed well
among the high net worth company i.e. 1.00 and other companies are
near to one. It was assured by positive Operating Profit CAGR during the periods 2008-14, i.e. Bharti
Airtel 6.8 %, RIL by 6.03 %, Tata
Steel 5.16% and negative by SAIL(16.08) & Hindalco Inds(-4.03). On
the other side low net worth companies are unable to participate the
growth phase of particular industry
thats why there are no effect of better Expenses Utilization Index.
Efficiency Index
of Cost Management
Efficiency index of cost management is the product of performance
index and the utilization index and
measures the ultimate efficiency in
cost management of company.Table
1 shows that average performance
efficiency index for the selected
high net worth companies is 1.96.
Efficiency index of cost manage-
30
ment for Reliance Industries is as

high as 6.24 along with all indicators in the table 1. Low net worth
companies are unable to perform
the standard level and cos turnover
going down rapidly.
Conclusion
From the aforementioned analysis it may be guessed that financial
recession made significant cavity in
the PAT of the selected companies.
An attempt has been made in the
present study to measure CASs
impact among the companies to
achieve cost competitiveness. High
net worth companies follow the
cost accounting standard thats why
they have more ability to manage
cost control mechanism. For that
most of them are able to increase
their market share during these periods (Tata Steel=4.76 %, Reliance
Industries = 4.34 %) and cos sales
CAGR more than industry performance. In refineries sector sales
CAGR is 16.60 during the periods 2008-13 where Reliance Industries 21.66 % & IOCL 11.96%.
Telecommunication sectors sales
CAGR 7.72 % where Bharti Airtel
sales CAGR 12.03%. On the other hand low net worth companies,
most of them plucked to manage
cost (OP CAGR % of Sword &
Shield= -237.97, Gagan Gases=
-197.24) as consequence they are
under performer in the industry
(Sales CAGR of Industrial Gas=
10.51& Pharmaceuticals-Formulations=4.29) and market share was
down heavily (Sword & Shield=
-4.52, Gagan Gases= -29.33). Finally they lose the cost competitiveness position over the industry due to unaware & unscientific
way of cost management. However, analysis concerning to taking
more components in a large canvas
AUGUST 2014
would give significant result for

evolving comprehensive strategy to
implement CAS rule. Annexure on
next page.
References
1. Australia, B. C. (1990, March).
The Accounting Standards Setting
Process: Recommendations for
Change', Business council bulletin .
2. Fischer, C. &. (2007). Assessing
the Competitiveness situation of
EU food and drink manufacturing industries: an index based
approach. . Agribusiness , vol. 23
(4), 473-495.
3. Gatignon H,W. B. (1990).
Brand Introduction Strategies and
Competitive environments. Journal
of Marketing Research , 27(4):
390-401.
4. Hansen Don R., M. M. (2009).
Cost Management: Accounting &
Control (6th Edition ed.). Ohio:
South-Western Cengage Learning.
5. Johnson, H.T. (1987). Relevance Lost:The Rise and Fall of
Management Accounting. Boston:
Harvard Business School Press.
6. Kaplan, R. (1990). Measures for
Manufacturing Excellence. Boston:
Harvard Business School Press.
7. Kleiman. (2000). A Managerial
Tool for Competitive Advantage. .
Human Resource Management: ,
2nd Edition.
8. Porter, M. E. (1985 ). Competitive
Advantage: Creating and Sustaining
Superior Performance. , Free Pres .
9. Web site: http://icmai.in/home
as on 5Th May 2014 at 10.30
AM.
10. http://www.icai.org/ as on 6Th
May 2014 at 12.10 PM.
11. http://www.mca.gov.in/ as on
6Th May 2014 at 11.00 AM.
ujjwal.das06@gmail.com
www.icmai.in
Table 1: Different Indexes (2009-14) & CAGR %( 2008-14)

Components
Expense
Net Worth Performance
Utilization
Name of
2012-13
Index(avg)
Index(avg)
company
Reliance Inds.
178966
IOCL
61124.31
Tata Steel
55209.84
Bharti Airtel
54144.1
SAIL
41024.64
Hindalco Inds. 33972.39
Average of selected cost
Gagan Gases
1.16
Sword &
1.2
Shield
Sr. Jayala.
1.47
Auto
Cosboard
1.66
Inds.
Kusam Electr.
1.66
Everlon Synth
1.71
Average of selected cost
Source: Self Calculations
Efficiency
Index(avg)
Industry Total
Sales CAGR %
Cos Sales
CAGR%
PATs CAGR% MS CAGR%
OP CAGR%
6.4
1.15
0.98
1.53
0.99
1.02
2.0117
1.6
0.98
1
0.96
0.97
0.96
0.99
0.9767
0.95
6.24
1.15
0.94
1.48
0.95
1
1.9600
1.66
16.6
16.6
8.61
7.72
8.61
4.8
10.4900
10.51
21.66
11.96
13.78
12.03
1.68
6.25
11.2267
-21.91
1.54
-6.39
1.56
-3.98
-22.04
-9.9
-6.5350
-126
4.34
-3.98
4.76
4
-6.38
1.39
0.6883
-29.33
6.03
3.77
5.16
6.8
-16.08
-4.03
0.275
-197.24
1.12
1.13
4.29
-0.42
-14.9
-4.52
-237.97
1.11
1.1
14.94
7.12
-244.04
-6.8
-8.46
1.21
0.99
1.2
11.91
-2.74
-58.7
-13.09
-207.96
0.98
1.2
1.2033
0.97
1.01
0.9867
0.95
1.21
1.2083
13.83
19.37
12.4750
13.56
24.77
3.3967
-15.24
-1.98
-76.8150
-0.24
4.53
-8.2417
-7.49
14.68
-107.4067
K. K. DAS COLLEGE
GRH-17, Baishnabghata-Patuli, P.0.-Garia, Kolkata-700084, West Bengal
ORGANISES
UGC-sponsored National Level Seminar on 19th December 2014 (Friday)
in collaboration with

Venue: College Premises
Theme: COST COMPETITIVENESS IN MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA
Sub topics: Cost Competitiveness in MSMEs in India

SME Competitiveness and Productivity

Role of MSMEs in Economic Development in India
MSME Finance in Indi
Challenges faced by MSMEs in India
Role of CMAs in the development of MSMEs
Improving Competencies of Indian MSMEs
Risk Management in MSME Sector
Financial Restructuring of MSMEs
SME Exchange in India
Liberalization and Impact on MSMEs
Skill Development and Capacity Building in MSME sector
CALL FOR PAPERS

Intending authors are requested to submit their abstracts (within 300 words) only through email by 20th September 2014 to the convener. Abstract
specification MS word, A4 page, paragraph spacing single, font Times New Roman 12 with full title. Name of the author(s), affiliation (if any),
communication address, phone number.
Authors are requested to submit the full paper by 1st November 2014. The full paper must be submitted in both soft and hard copy,
E-mail id - rinkubasu2010@gmail.com
www.icmai.in
AUGUST 2014
31
COVER
STORY
COST & MANAGEMENT

ACCOUNTING PRACTICES
AND STANDARDS: A REVIEW
WITH RESPECT TO STATUTORY
CHALLENGES
In order to regain its past glory, the CMA profession needs
to embark upon two major strategies viz. skill upgrading and
industry appreciations
I
CMA Debtosh Dey
n this article, we will review some of the major

challenges before Cost
& Management Accountants (CMAs) unfolding in
key statutory provisions that
otherwise enlarges scopes
to the profession, directly or
indirectly. Such provisions
include fraud reporting by
(cost) auditors, pricing of
related party transactions,
business valuation, services
of internal auditor, CFO &
independent director. This
article also focuses on the
strengths that need to be built
up in Cost & Management
Accounting practices and
standards for meeting such
challenges.
Major stautory challenges

before CMAs
1. Fraud reporting by (cost)
32
AUGUST 2014
auditors - Section 143(12)

of the Companies Act, 2013
include auditors duties & liabilities for reporting fraud to
Central Govt, if the auditor
has reasons to believe that such
fraud is committed by officers
or employees against the company. Rule 13 of Companies
(Audit & Auditors) Rules,
2014 prescribes Form ADT-4
for such reporting as also the
procedure to be followed. By
virtue of Section143(14)(a),
provisions of section143 apply
mutatis mutandis to cost audit
u/s 148.
In this context, it is important to note that even
omission of material fact in
statements, report, return, prospectus, etc may become false
statement (S. 448) attracting
penal liabilities for fraud, a
new provision u/s 447.
It is noteworthy that offences constituting fraud are

non-bailable under Companies Act, 2013. The cognizance of such offences can be
taken by Special Court (u/s
435) against complaint by Director of SFIO or any other
officer authorized by Central
Govt. Sec 212(6) details such
offences. One of these is falsification in companys documents u/s 448 aforesaid.
Therefore, it is utmost necessary that the cost auditor
exercises reasonable care and
skill. The following provisions
are also relevant in this regard :
a. Compliance of Cost Auditing Standards issued or to
be issued by the Institute of
Cost Accountants of India
with Central Govts approval
as mandated u/s 148. (Four
such standards have been pre-
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scribed so far).
Note: S. 143 mandating compliance of auditing standards by
the auditor, also applies mutatis
mutandis to cost audit u/s 148.
b. The cost auditor should take into
account the conformance to Cost
Accounting Standards (CAS) by the
company being audited (Presently,
there are twenty two standards).
Note: Unlike Accounting
Standards referred to in S. 133
and 143, no mention of CAS is
found in the Act or rules made
under S. 148. However, there may be
a question of law since provisions of S.
143 which, inter alia, require an auditor to consider accounting & auditing
standards in relation to audit report
to members, is made applicable mutatis mutandis to cost audit u/s 148 in
sub-clause (14)(a) of S.143. Therefore, though S. 143 is founded on
a different context and as cost
auditor never reports to members, application of S. 143 to S.
148 has to be understood with
appropriate changes in context
and meaning.
[Rule 6(7) of Companies
(Cost Records & Audit) Rules
2014 mentions only sub-clause
(12) of S. 143 dealing with fraud
reporting, as applicable mutatis
mutandis to cost auditor functioning u/s 148. Also, sub-clause
(15) of S. 143 providing for fines,
refers to fraud reporting under
sub-clause (12) aforesaid only
for non-compliance].
c. The cost auditor should schedule
his audit program with reasonable
time allocated in each audit [As per
Rule 6 of Companies (Cost Records
& Audit) Rules 2014, a cost auditor
has to be appointed within 180 days
from the commencement of financial year and he is entitled to continue his assignment till expiry of 180
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days or submission of cost report].

d. In reporting fraud, the (cost) auditor
shall observe the time limit of 60 days
prescribed in Rule 13 of Companies
(Audit & Auditors) Rules, 2014 as follows : S/he shall first report suspected
fraud to Board or Audit Committee
as the case may be, seeking a reply
within 45 days. S/he shall forward
the report to Secretary, MCA within
next 15 days (If reply is received within this time, the same should also be
forwarded with his/ her comments).
The rule also provides for immediate
reporting to Board/ Audit Committee after the (cost) auditor becomes
aware of fraud.
2. Internal Financial Controls
(IFC)* - Companies Act, 2013 enlarges directors duties & liabilities in
more specific terms. One of these
is collective duties of directors as a
Board to make declaration on IFC
and explain contrary views of the
auditor (S. 134 read with S. 143).
* Note: Explanation to S. 134(5)
(e) defines IFC. In brief, it means
companys policies & procedures
for efficient conduct of business,
safeguarding assets, prevention
and detection of errors & frauds,
adequacy & completeness of
accounting records and timely
preparation of reliable financial
information. Adherence of such
policies & procedures is also included in it.
Above provisions are expected to
reinforce effective systems in companies from true & fair financial statements to analysis of opportunities &
risks and continuous improvements.
These may cover organization &
methods, integrated software, digital
recording, networked information,
standard costing, budgetary control,
quality management, safety, security,
internal audit, etc.
AUGUST 2014
It goes without saying that a strong

IFC reduces possibilities of external interventions (tax adjudications,
Ministrys enquiry, Court proceedings, investigation, etc) and that,
CMAs have definite roles to play in
strengthening IFC.
3. Internal Auditor, Independent
Directors and Valuers - Section
138 of the Companies Act with rules
made under it require every listed
company and other prescribed companies to appoint Chartered or Cost
Accountant or other professional
decided by the Board, as an internal
auditor who should report to the
Board. The manner of conducting
internal audit shall be decided by
the Audit Committee, if any, or by
the Board. Internal auditor has to be
consulted in either case.
It may be noted that other professional may include engineer or
technologist relevant to industry,
software specialist, legal expert, etc
as increasingly demanded by big and
progressive companies for strengthening internal controls (including
IFC). Such companies usually deploy pools of different professionals
including professional accountants
with appropriate persons as Chief
Internal Auditors.
It is also important to note that
Audit Committees are mandated in
all listed and other prescribed classes of public companies u/s 177 and
rules made under it. They have wide
functions including review of internal controls & risk management
systems, audit processes, valuation of
assets, etc. They may refer internal
& statutory auditors as well as management for any related issue. Such
committees are also empowered to
oversee vigilance mechanism. The
Act requires at least three directors
on the committee with independent
directors forming the majority.
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STORY
Auditors of the company (including cost auditor) are entitled to

attend meetings of the committee
when it considers auditors report,
without any voting rights.
Besides above, section 149 requires
every listed company to have onethird of its total number of directors
as independent directors. Other prescribed public companies must have
at least two such directors (subject to
higher number, if Audit Committee
is mandated). Rule 5 of Companies
(Appointment & Qualifications of
Directors) requires that independent directors should possess relevant
expertise and experience in one or
more fields of finance, law, administration, governance, marketing, technical, etc. Rule 6 talks about data
bank of persons interested for independent directorships and lays down
procedure thereof.
Further, section 247 of the Companies Act, 2013 provides for registered valuers who can be appointed
for valuation of assets-liabilities, securities, goodwill, etc (Such valuations
presupposes knowledge of cost accounting besides financial accounting other techniques).
Thus, above areas offer ample
scopes for CMAs.
4. Pricing of related party transactions Section 2(76) of Companies Act, 2014 defines related party which is an important entity in
section 134 (Particulars of contracts
or arrangements in Boards Report),
section 184 (Disclosure of directors
interest), section 188 (Approval &
Justification in Boards Report), section 189 (Register of contracts or
arrangements), etc.
Almost all Central tax laws and
some of the State VAT laws regulate
related party transactions in different ways. For example, section 92C
of Income Tax Act deals with arms
34
length price (ALP) for certain transactions with specified related parties.
The section includes Cost plus basis
as one of the methods for ascertaining fair price. Similarly, section 4 of
Central Excise Act invokes valuation
rules if transacting parties are related
or if price is not the sole consideration. If goods are sold to related party for captive consumption, Cost
of Production plus 10% is taken as
the value. Similar valuation rules are
found in Customs and Service Tax.
if other methods are inapplicable.
Derivation of Fair Market Value
(FMV) for certain transactions u/s
56(2) of Income Tax Act may also
call for specialized techniques (e.g.
DCF method for valuation of unlisted shares). Similar procedure under
FEMA can also be cited.
Companies subject to maintain
cost records by virtue of rule 5(1) of
Cost (Records & Audit) Rules 2014
read with rule 3 made under section
148(1), has to maintain particulars
relating to Related Party Transactions as prescribed under such rules
(vide item 27 of Particulars in form
CRA-1).
Above points to the need for
maintaining proper records and appropriate statistical information, depending on the circumstances, for
justifying related party transactions,
if any.
5. Special audits in Central Excise Act Special audits under
sections 14A and 14AA of Central
Excise Act can be ordered for compliance of assessable tax and Cenvat
utilization respectively with the approval of Chief Commissioner of
Central Excise. Such audits can be
done by practicing Chartered or
Cost Accountants.
6. Mandatory annexing of Cost
Audit Report, if any, with companys Income Tax Return along
AUGUST 2014
with Tax Audit Report This requirement recently introduced in

Income Tax Act, is a welcome provision. Even Indirect Tax authorities
are increasingly asking for Cost Audit Reports, if any, in their audits and
investigations.
7. Service of CFO Every listed
company and prescribed public companies are required to appoint Key
Managerial Personnel (KMP) u/s 203
of the Companies Act, 2013. Section
2(51) includes CFO in KMP. Where
CFO is appointed, s/he is one of the
signatories to financial statement u/s
134 if Chairperson is not authorized
to sign. S/he, amongst others, shall be
liable for contravening provisions on
financial statement u/s 129.
The Act does not prescribe any
qualification for CFO. Therefore, all
professional accountants and managers are expected to have fair opportunities for this coveted post.
Strengthening Cost and

Management Accounting
Practices and Standards for
meeting statutory challenges
We have seen some of the major statutory provisions in Companies Act,
2013 and Tax Laws offering various
opportunities to CMAs. Whether or
not these are enough is a question
indeed to be addressed. For example,
significant withdrawal of cost audit
coverage in recent rules of MCA,
arbitrary categorization of companies involving public interest, blanket exemptions to Export-Oriented
Units in the rules, non-inclusion
CMA as accountant for tax audit
under Income-Tax Act (contrary to
proposed DTC), etc are some of the
burning issues.
Cost audit should be adopted for
all enterprises (including private
companies) barring very small units
on similar lines of tax audit. It is not
www.icmai.in
a correct argument to exempt competitive units from cost audits. Even

banks should be covered for auditing bank loans and packing credits.
A specific audit under Ministry of
Finance may be explored for enterprises utilizing substantial tax benefits (Following various reports of
misuse of tax benefits).
Since nothing moves in India
without statutes and in view of discriminations among professions in
areas of practices and in naming of
institutes, there is a need for proper
representations to Ministries of Finance and Corporate Affairs.
Simultaneously, practices and skills
of CMA profession need strategic
upgradation for keeping ahead of
competition and for meeting and
even exceeding the expectations of
industries. Some of the major issues
emerging from practical fields are
outlined below in brief :
1. Industry-specific norms complementing Cost Accounting
Standards Besides Cost Accounting Standards (CAS), it is necessary
that CMAs entering practice or
service are equipped with industry
norms with respect to input-output,
work cycle time, etc regard being had
to technology. CMAs need not be engineers but a basic understanding of
these information is sure to improve
insight, skills and quality of service in
almost all the areas stated above.
A common example is adoption
of various standards like CAS-4
(Captive Consumption) along with
CAS-2 (Capacity Determination),
CAS-19 (Joint Costs), CAS-22
(Manufacturing Costs) and others
relevant in Excise valuations as in
captive consumption, inventory of
intermediate products, job work, etc.
Similarly, the treatments of abnormal
costs as spelt out in appropriate standards are important. At the same time,
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industry-specific norms as aforesaid

are expected to complement CAS
and enrich cost records substantially.
Cost Audit Reports based on such
cost records are expected to serve
as meaningful references by tax and
other statutory authorities.
Presently, the sources of industry-specific norms are as follows :
a. Excise declarations on input-output and capacity installed (for Excisable goods)
b. Published norms as in ISI specification, Standard Input-Output
Norms (SION) in EXIM Policy,
norms published by specific associations of industries, etc.
c. Equipment manufacturers norms
for input-output, maintenance, operation, etc
d. Project reports submitted to
banks for loans and packing credits
or those considered for issue of securities or deposit scripts (in prospectus
or otherwise).
e. Reports submitted to Pollution
Control Boards.
f. Drawings and other literature on
technology adopted for manufacture (including technology-sharing
agreements, patent document, etc).
2. Field based studies by CMAs
in service and in practice
Functions of CMAs demand visualization of workshop practices and
supply-chain of the enterprise being
served. The curriculum may be enriched for enabling CMAs to study
companys field operations independently. CMAs as vital information-link between accounting and
management, have to draw upon
information from other systems
apart from accounts. Therefore, they
would do well in keeping themselves
abreast of activities across the enterprise. Similar knowledge building is
necessary for service-oriented units.
3. Knowledge of integrated
AUGUST 2014
software and digital techniques

for management analysis Increasing use of integrated software
& digital techniques with networks
in information management, enable
multiple entries covering all aspects
of transactions as relevant including
physical and non-accounting data
besides monetary values.Today, usages of ERPs with integration of digital
records of machine conditions, work
flow, inventory, survey, weighment,
other measurements, attendance,
global positioning, etc have increased
the horizon of management analysis. A reasonable proficiency in this
area is expected to strengthen Cost
& Management Accounting practices for meeting many of the above
challenges.
The path forward

Besides statutory cost audits, CMA
curriculum should be able to create
a distinct domain, visible everywhere
as an indispensible profession for
maneuvering cost competitiveness.
In order to regain its past glory, the
CMA profession needs to embark
upon two major strategies viz. skill
upgrading and industry appreciations.
It goes without saying that former is
the cause while latter is the effect.
While the Expert Committee
formed by the MCA on 19-Jul-14 is
slated to address the current issues on
cost records and cost audit, representations to MF should also follow for auditing bank loans, packing
credits and tax benefits utlizations.
The author also feels that the Institute of Cost Accountants of India
should also review the curriculum
for enriching CMAs to support
changing needs for integrated information, techno-commercial analysis,
forensic audit, etc.
debtoshdey@gmail.com
35
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STORY
CAS A USP FOR CMAs

CMAs must be proactive on CAS. They cannot afford to sit
idle because a person who holds the ladder for a thief is also a
partner in the crime
UCCESS needs USP

(Unique Success Preposition). A successful
person or professional sells its
USP.
USP creates brand image and help professionals in
achieving professional success.
CMA Ajay Deep
A professional without USP
Wadhwa
Former Chairman, is a mediocre and can never
EIRC, The Institute achieve success.
of Cost Accountants
In my opinion, the USP of
of India
we Cost Accountants are CAS
(Cost Accounting Standards).
Let us first try to understand
the legality of CAS.
Two Government orders,
The Companies Cost Accounting Record Rules2011
and The Companies Cost Accounting Report Rules2011,
provided USP to our Institute
first time in the form of Cost
Accounting Standards (CAS).
These orders made CAS mandatory for the maintenance of
cost records. They also made it
mandatory for Cost Auditors
to ensure the application of
CAS in cost records.
Now, section 148(3) of The
Companies Act 2013 defines
CAS as Cost Accounting
Standards means such standards
as are issued by the Institute
of Cost Accountants of India,
constituted under the Cost and
Works Accountants Act1959,
with the approval of the Central Government.
36
AUGUST 2014
The Cost Accountants must

comply with Cost accountants
standards proviso to section
148(5) of the Companies Act
2013.
These Cost Accounting
Standards have been mandatory for being applied for
preparation and certification of
general purpose cost accounting statements w.e.f 1.4.2010.
if the standards are not followed while preparing of cost
accounting statements, it shall
be duty of Cost Accountants
to make a suitable disclosure /
qualification in his audit report
/ certificate (Council decision
dated 12 / 13-2-2009 page
418 of the Management Accountants, May2009).
It means, the concerned
companies have to follow CAS
it will be ensured by Cost Auditor who is a statutory auditor. If any company fails in
complying with the norms of
adopting CAS and Cost Auditor fails in highlighting the
above facts in his report, the
concerned persons / companies are liable to punishment as
per the Companies Act.
CAS and GACAP are formulated by the Institute of
Cost Accountants of India
and it is a regulatory body to
ensure the implementation of
the same. And, therefore, in my
opinion CASs are our USPs.
Now, another important question is Are we

using this USP to ensure the
enhancement in the brand value and importance of Cost Accountants and the profession of
Cost Accountancy?
Here I am not finding myself in a position to say clearcut YES.
I am closely associated with
many companies in different
capacities, where CASs are applicable, and surprised to note
that many of these companies
are not following CAS in true
spirit and but these facts are
not being highlighted in either
their cost audit reports, submitted by cost auditors or compliance reports. In fact, in many
companies, especially in big
ones like coal, steel and electric
producing companies, many
officials engaged in preparing
cost records have not even
heard about CAS. Ignorance of
law is not an excuse but still no
one is being penalized.
Believe me, I am not exaggerating. I have personally
visited the cost departments of
many concerned companies,
specially the cost departments
of their units and found their
officials quite ignorant about
CAS. And, still companies have
not started any sort of official
training programme to update
their officials about CAS.
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On the other hand, same companies are spending or already have

spent lakhs and lakhs of rupees in
providing training to their executives
on Accounting Standards and their
convergence to IFRS which is still a
distant reality!
Even during my lectures on cost
records and cost audit, I hardly find
a participant who is well conversed
with any of CAS. Recently I took
two sessions on cost records and cost
audit in two companies, one a coal
company and another one a steel
manufacturing company. The participants were finance professional,
having qualifications like CMA, CA
and MBA(Fin) and believe me, half of
them were hearing about CAS first
time!
Recently many students of different
management institutes of the country
have done their summer internship
on the topics like Cost Records, Cost
Accounting and Cost Audit in those
companies where maintenance of
cost records & applicability of CASs
were mandatory and many of them
have uploaded their projects reports
in website. If we go through these
reports carefully, one conclusion is
common The company is not following Cost Accounting Standards.
Its Cost records are not being maintained as per the provisions of CAS
and GACAP!
The message is clear. We need to
make the companies and its executives aware about CAS. This will not
only a brand building effort of our
profession but will save the companies
and its executives from the possible
penalty for not following mandatory
CAS. Moreover, if company defaults
in preparing cost records as per CAS,
the concerned official of the company, especially if he is a Cost Accountant, is subject to penalty. The officials
of the company as well the Cost Au-
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ditors are always may face penalty.

Not following the CAS by strategic companies, engaged in sectors
like coal, steel, petroleum, electricity,
heavy machinery etc is a direct loss
the company and the economy of the
country as well. In India, the cost records were introduced by section 209
(1)(d) of the Companies Act1956
which is the soul behind cost records
and genesis of CAS.The provisions of
the section 209 (1)(d) has been continued in the Companies Act2013
with a little bit different words.
Now, the section 209 (1) (d) would
say that In the case of a company
pertaining to any class of companies
engaged in production, processing,
manufacturing or mining activities,
such particulars related to utilization
of material or labor or to other items
of cost as may be prescribed, if such
class of companies is required by the
Central Government to include such
particulars in the books of accounts.
The idea of the Act was clear to
ensure proper utilization of scarce
materials, labour and other overheads,
basically in mining, manufacturing,
producing and processing companies
to avoid its wastage and keep the cost
as well as prices of final products low.
This idea, as mentioned above, has
been kept intact in the new Companies Act also. Now, CASs are important tools to implement this idea.
CASs bring harmony in cost records
for the purpose of comparison of
cost, harmonize the measurement &
accounting of different items of cost
and, most important, bringing transparency in cost records so that effective control measures can be taken up.
The fundamental theory behind
CAS is that you can control anything
only if you can measure is. CAS ensures that different elements of cost
are properly measured and recorded
only to ensure its proper control. If
AUGUST 2014
companies do not follow the CAS, it

means the companies are not serious
in controlling & managing the cost,
which is against the interest of the
economy of the country.
Companies should always keep
in mind that most of the Indians
are having poor purchasing capacity.
Forget about useful products, almost
one-third of Indians find it difficult
to arrange their daily bread & butter.
Quality of product is not a criteria for
those Indians, cost and price is. CASs
ensures proper utilization of elements
of cost to make them affordable for
the people living at the bottom of
the pyramid. Not following CASs
by companies is some sort of moral
crime also and it must be controlled.
Cost and Management Accountants have to play a major role for
proper implementation of CASs. We
cannot afford to sit idle and see the
ignorance of law. The person who
holds ladder for a thief is also a partner
in the crime.We must be proactive.
I think, as Cost and Management
Accountant (CMA), serving in an
applicable company as an employee
or as a Cost Auditor, we must ensure
that
1.The company is preparing cost records as per CAS and GACAP,
2. Any default must be brought to
the notice of the top management,
3. Defaults must be highlighted in
the Cost Audit Reports by Cost Auditors,
4. Defaults must be explained in
Form-III of the cost audit report,
i.e. Performance Appraisal Report
so that it could attract the attention
of Audit Committee first and the
Board of Directors next,
5. Matter may be reported to the Institute and Ministry of Corporate
Affairs as well.
wadhwa103@yahoo.co.in
37
INTERVIEW
'CMAs CAN GUIDE BANKS

IN PRE-SANCTION,
POST-SANCTION
AND MONITORING OF
STRESSED ASSET LEVELS'
K R KAMATH
CMD, Punjab National Bank
What should be the concerns of banks on NPA management during
this economic downturn in India?
Banks have been increasingly facing the pressure of non-performing assets
owing to the protracted economic slowdown in India. Stalled manufacturing
and infrastructure projects have blocked cash flows of the big ticket bank
borrowers leading to recovery woes for banks, particularly for Public Sector
banks.
Now, when it seems that economic growth may take some more time to
revive, the prime concern of the banks should be to prevent fresh slippages
and step up recovery especially from big ticket accounts. Another concern for
the banks should be making provisions for bad/restructured assets as per new
prudential guidelines. High provisions adversely impact the profits and thereby
constrain the profit plough-back which is an important source of capital to meet
Basel III requirements.
38
AUGUST 2014
Are big ticket advances responsible for the

burgeoning of NPAs? What remedial measures would
you suggest?
Yes. Big ticket advances are a major cause of burgeoning
NPAs because:
Apart from size, many of these accounts tend to be
over leveraged with huge debt burdens, which they
could service in good times, but in strained economic
conditions, it is difficult to service when sales decline/
receivables pile up.
These accounts are more susceptible to adverse
changes in the macro-economic situation. With the
projections of business having been made in better
times, the expected cash flows would be high and
economic downturns would upset the repayment
cycle.
The level of collateralization is generally less in these
accounts and the promoters can often hide behind the
corporate veil.
Remedial measures:
Strengthening of the debt recovery mechanism
presently available.
Making the promoters personally liable in case of
wilful default.
Penal provisions for defaulters this can have a
deterrent effect.
What is your view about credit to the SME
sector? How much of it could become NPA? Are
there any guidelines from the government on this?
The SME sector is a vast category covering both
manufacturing and service enterprises and as such the
risk in SME is not uniform. The risk perception with
regard to a manufacturing enterprise will not be the
same as the risk associated with a service enterprise,
operating in a relatively more stable market. The
investment levels are also very different and as such
treating the entire SME sector as a single monolithic
category is not advisable.
It also needs to be stated that the collateral coverage
in the case of SMEs is higher and action under
SARFAESI can generally be initiated and brought to a
satisfactory conclusion.
Putting a definite figure on the amount that could
become NPA is not possible. The experiences of
different banks are also not uniform. For example, in
PNB the delinquency ratio of SMEs has gone down in
FY 14 as compared to FY 13.
The guidelines from the Government with regard to
SMEs relate to the dispensation of credit to the sector.
Banks have annual targets for SMEs and the Govt.
monitors the progress made. There are also guidelines
for timely restructuring and nursing of sick, viable
SME accounts.
How successful has the SARFAESI Act 2002
been in helping banks to manage NPA?
The SARFAESI Act has been of great assistance to
bankers. It marks the first piece of legislation that
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allows bankers to sell properties charged to

them without the intervention of the courts.
However, there are a number of cases
where actions taken by the banks under
SARFAESI have been stayed by the
DRTs and the cases follow the set legal
procedures and are subject to the delays
thereof.
SARFAESI can work better if actions under
the Act are not stayed on flimsy grounds.
There are other cases where problems
are faced with regard to taking physical
possession, where the borrowers use local
influence and power.
How is NPA affecting the profitability
and efficiency of banks in India?
NPAs have resulted in bringing down the
yield on advances.
With increasing NPAs the cost of credit
goes up, thus reducing the efficiency of
banks.
Recovery of NPAs is service intensive
and has a high service cost. It also diverts
resources from more productive work.
Increased provisions have reduced the
Net Profits of banks. This has an adverse
impact on all the profitability ratios ROE,
ROA, etc.
Where NPAs are common in a particular
industry, further credit to the industry has
been reduced.
In an economic downturn even if
possession of securities is taken, finding
alternative buyers and realising optimum
amounts still remains a challenge.
Do Basel II and Basel III provide
sufficient provisions to manage NPA?
Basel II and Basel III guidelines enumerate
capital adequacy norms and prudential
treatment of all asset classes (including
NPA and restructured asset) for capital
requirement for banks. These guidelines
do not focus on the best practice for NPA
/ Stressed Asset containment instead it
prescribes the capital quantum that should be
kept aside for bad loans. A Basel guideline on
capital requirement is a sort of an ex-post risk
mitigation way and does not focus on NPA
management including its curtailment.
Are prudential guidelines relevant
when borrowers are facing a cash flow
crunch and banks are finding it difficult to
provision for NPA accounts?
The concerns and priorities of the regulator
and the lenders are different and they
should necessarily be. The regulator
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frames prudential guidelines to strengthen

banks during the period of difficulty and
thus ensuring their sustainability. At the
same time, banks look for profitability and
continuity. Prudential guidelines at this period
of economic downturn help to ensure the
continuity and stability of the banking system.
The relevance of prudential guidelines
for asset classification and provisioning
requirements is intact since they are based
on the tenet of managing risk in banking
business in all the phases of business cycle.
In continuation to the above question,
could a situation based guideline from RBI
provide relief to genuine borrowers?
Borrowers are getting relief through the
restructuring schemes of Banks such as
CDR, Non-CDR schemes, Debt Recovery
Mechanism (DRM) for SMEs etc. The
genuine borrowers i.e. where the reasons
for delinquency are beyond the control of
borrowers, get relief as per the laid down
system for each distress situation. However,
there is a need to take into account the
problems of borrowers who have taken loans
for a project that is stalled for no fault of theirs
such as inability of the govt. to acquire
land, or provide fuel linkages or environmental
clearances. It is a matter of priority that such
bottlenecks must be removed first instead
of classification and treatment as nonperforming assets etc.
Would two sets of prudential
guidelines be suitable for two different
economic scenarios, one at the time of an
upbeat economy and one at the time of a
downturn?
I think that one integrated set of prudential
guidelines is required to deal with the
requirements of different prevailing scenario.
During the flourishing economy, prudential
guidelines should be proactively framed to
build cushion for the banks to meet future
contingencies. In the event of deceleration
and high risk in the economy the guidelines
must enable the banks to draw upon the
reserves created for stressful times i.e.
counter cyclical buffers etc. One, modification
is suggested that during the stressful times
the financial system needs to be facilitated
by the regulator to build in fresh provisions
and reserves at bit lower rate, commensurate
with the then profitability of banks. The
shortfall against the prevalent rates can be
covered by the banks in phased manner on
the upturn in economic cycle.
AUGUST 2014
Could professionals like CMAs help the

banking sector to check this problem? In
what way could CMAs help in other areas
of banking.
Professionals like Cost and Management
Accountants can play an important role in the
current scenario to help the banking sector
effectively manage NPAs. CMAs can guide
banks in pre-sanction, post-sanction and
monitoring of stressed asset levels.
At pre-sanction level, they can advise for
better appraisal through expert TEV study and
industry analysis. During the post sanction
and monitoring level, they can help the
banks through analysing end use of funds,
verifying book debts and Training of operating
level staff in detecting incipient sickness/
understanding alert signals etc.
Apart from the above, financial professionals
inter alia Cost and Management Accountants
can help the banks in cost-benefit analysis
of products and services, the banks offer,
advising strategies for reducing cost of
products, portfolio analysis and stress testing
etc.
Is there any proper guidance by RBI to
evaluate the cost of risk in banking?
There are regulatory provisions defined by
RBI for restructured accounts and for NPA
accounts Sub Standard, Doubtful and Loss.
Banks going for riskier loans inevitably have
to make higher provisions as these loans
become non-performing, with provisions
increasing in proportion to the age of the
NPAs. This is the cost of risk for the bank
and the provisioning guidelines give adequate
guidance.
Could CMAs act as specialist officers
in Risk Management, Audit and Credit
Analysis through the Institute of Banking
Personnel Selection?
The banks are recruiting specialist officers
like Cost Accountants, Chartered Accounts
and personnel with ICWA background as
specialist officers through Institute of Banking
Personnel Selection (IBPS). They are placed in
various strategic functional areas in the banks
where their expertise is best utilised like
product pricing, industry analysis, industry
rating, credit appraisal and audit to name a
few.
With introduction of complex products and
services like derivatives in Indian banks and
expansion of business lines and products
lines of the banks, the requirement of such
specialists will increase further.
39
TAXATION
A CURATES EGG: INDIRECT

TAXATION CHANGES IN THE
UNION BUDGET
The Budget changes in Indirect taxation reveal an anxiety
to bail out the manufacturing sector and in the bargain the
services industry has been made to bear the cross. The tax
changes are a veritable mixed bag
Everything looks good but it is this

part that I don't like
Dr. Ravindran
Pranatharthy
Advocate Indirect
taxes & IPRs
40
AUGUST 2014
www.icmai.in
HE much-awaited first Budget of the new government has come. The expectations were high.
The jury would prefer to be out on whether
the expectations were really unrealistic, to start with.The
Budget proposals were subjected to customary scrutiny
and as usual with minor amendments the Lok Sabha has
passed the Finance Bill for FY 2014-15, as of this writing.
The budget has received both accolades and critical disclaim and has been variously described depending on the
viewpoints of the admirers and critics. Given the present
unappetizing scenario of slow growth with stalling exports, subsidies that are difficult to dismantle and taxes
reaching saturation levels, there is no way a Union budget
can please all shades of opinion. In fairness, it must be said
that the new Union government has barely been in power for a couple months and the time has been too short
for any meaningful strategic policy-setting and visionary
grand-standing. The time constraints in budget-making
were quite obvious. Nonetheless, the unabated decline
in the fortunes of Indian manufacturing has particularly weighed heavily in the minds of the government and
that concern is manifest in the changes relating to central
excise and customs proposals in the Budget. The Budget
results in the indirect taxation relating to central excise,
customs and service tax however present a mixed bag on
closer scrutiny. In this article, we will put significant items
on the Budget indirect tax menu on the dining table and
analyze the dietary effect.
Undoing the FIAT case fall-out and

guaranteeing the business liberty
to set arm's length Transaction Value
Ever since the watershed judgement of the Supreme
Court in the Fiat India case 2012 (283) E.L.T. 161 (S.C.)
in which the Apex Court in effect held that the central excise assessable value cannot be less than the cost
of manufacture irrespective of any arms length consideration received from the buyers at less than the cost of
production, the manufacturing sector which is known
for selling below cost owing to myriad reasons has been
worried. The CBEC also issued a circular dated 15th
January 2014 on putting the caselaw to the good use
of Revenue. The skills of the CMAs would have been
pressed into service in carrying out the determination of
manufacturing cost to find out if a sale of products was
below cost. Representations bordering on virtual prayers
to the government to undo the effects of the judgement
by legislative means have been rife all through this period. In a rare instance of the Revenue bailing out a belea-
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guered industry from the fall-out of an adverse caselaw,

the government has now changed the valuation rule itself
to sanctify below-cost assessable value provided there was
no other flowback. The Central Excise Valuation Rule
6 and the new proviso added now by notification no
20/2014 dated 11th July 2014 are given below:
RULE 6. Where the excisable goods are sold in the
circumstances specified in clause (a) of sub section (1) of
section 4 of the Act except the circumstance where the
price is not the sole consideration for sale, the value of
such goods shall be deemed to be the aggregate of such
transaction value and the amount of money value of any
additional consideration flowing directly or indirectly
from the buyer to the assessee.
Provided that where price is not the sole consideration
for sale of such excisable goods and they are sold by the
assessee at a price less than manufacturing cost and profit,
and no additional consideration is flowing directly or indirectly from the buyer to such assessee, the value of such
goods shall be deemed to be the transaction value.
The result of this rare gesture of the Revenue in relinquishing a caselaw in its own favour should enable the
industry to put the spectre of FIAT case to good rest
and save considerable time and money of both sides in
fruitless litigation.
Taming the draconian Central Excise Rule 8(3A):

Rule 8(3A) of Central Excise Rules has hurt genuine
and well-intentioned taxpayers more than the deliberate
defaulters. Under this Rule, if a manufacturer was not in
a position to pay excise duty within thirty days of the
due date of payment, he had to forego the use of CENVAT Credit facilities and pay the ensuing tax payments
in cash. He also lost the facility of monthly payment and
would have to pay his duty every time he made a sale
or clearance from the factory. He will have to face other
penalties as well, including seizure of his goods and their
confiscation for noncompliance with the provisions of
this rule. The draconian rule was further compounded
by the high interest rate of 18% per annum for delayed
remittance of excise duty.
In a relief to the manufacturing industry, the government has tossed the rule aside and inserted a new rule
which reads as follows:
(3A) If the assessee fails to pay the duty declared as
payable by him in the return within a period of one month
from the due date, then the assessee is liable to pay the
penalty at the rate of one per cent on such amount of the
duty not paid, for each month or part thereof calculated
AUGUST 2014
41
TAXATION
THE TINKERING WITH CONCESSIONS IN SEVICE TAX

HERE AND THERE IS EVEN SMALLER THAN USUAL
THIS YEAR. BUT WHAT TAKES THE CAKE IS THE SHEER
NUMBER OF UNPLEASANT TIDINGS ON THIS TAX
from the due date, for the period during which such failure
continues
Though the relief is not full and a still-not-inconsiderable penalty of 12% per annum is retained, the concession
is substantial when compared with the brutal provision
that prevailed till now.
A gift with few takers: Extension of access to

Advance Rulings Authority to resident Indian private
companies
Hitherto only joint ventures involving a non-resident and a resident, the Indian subsidiary of a foreign
company and joint ventures were eligible to ask for
Advance Ruling under Chapter IIIA of the Central
Excise Act and the Finance Act 1994. Now this facility
has been extended to resident private limited companies. But the moot point is whether the advance rulings mechanism has established utility and credibility
in the Indian context.
Duty concessions to the manufacturing sector
Duty-free captive consumption of manufactured inputs extended to match industry.
Certain agricultural food processing machinery has a
duty reduction from 10% to 6%
Excise duty exemption in full to drugs meant for HIV/
AIDS/National vector control programs.
Duty exemption for certain parts used in the non-conventional energy sector such as Wind/ Solar/Bio-gas.
Reduced excise duty on footwear in the price range
of Rs 500- 1000.
Exemption available to sub-contractors supplying
goods to main contractors and which are meant for
international competitive bidding projects
Exemption for goods supplied to National Technical
Research Organization and security paper factories of
the government
Exemption for reverse osmosis membrane elements
Reduced excise duty for LED parts
42
AUGUST 2014
Some unwelcome changes

Section 35L is amended so as to clarify that disputes relating to taxability or excisability of goods are covered
under the term determination of any question having
a relation to rate of duty and are appealable to the Supreme Court. The Appellate Jurisdiction of High Courts
gets excluded.
Section 35R is amended so as to enable the Commissioner (Appeals) to take into consideration the fact that
a particular order being cited as a precedent decision on
the issue has not been appealed against for reasons of low
amount.The unpleasant change ensures that the appellate
commissioners have been given a statutory excuse to reject precedents.
An imposition of 5% additional duty on aerated/sweetened waters including lemonades is now in place. Given
that India is becoming a diabetic capital of the world,
there is some justifiable reason to make sweetened drinks
as highly taxed as tobacco to discourage consumption.
Some additional revenue in the bargain is sweet news for
the Exchequer.
Ubiquitous Return Raj across the country
An unparalleled new Section 15A is in place so as to empower the Central Government to prescribe an authority to which the information return shall be filed by the
specified persons such as Income Tax Authorities, State
Electricity Boards, VAT or Sales Tax Authorities, Registrar of Companies. Information can be collected for the
purposes of the Act, such as, to identify tax evaders or
recover confirmed dues. A new section 15B follows to
provide for imposition of a penalty of Rs 100/- per day
if the information return is not submitted.
The new central excise sections have been extended to
Service tax law.The authorities and institutions caught in
the information net are as follows:
(1) Any person, being
(a) An assessee; or
(b) A local authority or other public body or association; or
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(c) Any authority of the State Government responsible

for the collection of value added tax or sales tax; or
(d) An income tax authority appointed under the provisions of the Income-tax Act, 1961; or
(e) A banking company within the meaning of clause (a)
of section 45A of the Reserve Bank of India Act, 1934; or
(f) A State Electricity Board; or an electricity distribution
or transmission licensee under the Electricity Act, 2003,
or any other entity entrusted, as the case may be, with
such functions by the Central Government or the State
Government; or
(g) The Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908; or
(h) A Registrar within the meaning of the Companies
Act, 2013; or
(i) The registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act,
1988; or
(j) The Collector referred to in clause (c) of section 3
of the Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act,
2013; or
(k) The recognised stock exchange referred to in clause
(f) of section 2 of the Securities Contracts (Regulation)
Act, 1956; or
(l) A depository referred to in clause (e) of sub-section (1)
of section 2 of the Depositories Act, 1996; or
(m) An officer of the Reserve Bank of India, constituted
under section 3 of the Reserve Bank of India Act, 1934.
Good things in Customs duty changes

Somewhat mirroring the changes in the excise duty
Duty concessions for certain goods meant for use in
non-conventional energy sector.
Duty concessions for goods meant for national security
mills.
Duty concession for drugs meant for AIDS/HIV programs
Duty-free passenger baggage allowance is enhanced to
Rs 45,000 from the present Rs 35,000.
Resident Indian private companies are allowed to access the Authority for Advance Rulings.
A bill of entry may now be presented even before the
delivery of import manifest or report, if the vessel or
the aircraft or the vehicle by which the goods have
been shipped for importation into India is expected
to arrive within thirty days from the date of such presentation.
An application can also be now filed before the Set-
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tlement Commission in cases where a Bill of Export,

Baggage Declaration, Label or Declaration accompanying the goods effected through Post or Courier is
filed.
Road construction machinery imported duty free can
be sold within 5 years of importation subject to payment of customs duty on depreciated value.
The Spectre of Retrospective tax

The retrospective tax changes in the Income tax a couple of years ago law have been widely recognized as the
trigger for the drying-up of foreign direct investments
into India. Despite knowing pretty well that retrospective tax has become an embarrassment to its image and
inimical to the stability of the economy, the government
has thought fit to extend Section 5A (2A) of the Central
Excise Act to service tax in terms of which whenever
an explanation clause is introduced within one year to
a notification, the explanatory clause will be deemed to
be retrospective from the date of the relevant notification
it seeks to explain. This kind of back-door retrospective
taxation is obnoxious and is not in sync with the assurance of the government against bringing in a retrospective law.The section 5A (2A) deserves to be excised from
the statute.
Service tax gets plenty of attention
with limited positives
The changes in Service tax defy the pre-budget prognoses.The de rigueur tinkering with concessions here and
there is seen to be even smaller than usual this year.What
takes the cake is the sheer number of unpleasant tidings
on this tax front. Let us see how little the good provisions are and how tough the avoidable and unwelcome
changes.
Advance Rulings mechanism made available to resident Indian Private Companies.
Exemption to Life micro-insurance schemes for the
poor approved by IRDA where the assured sum does
not exceed Rs 50,000:
Exemption to RBI in the area of specialized financial
services received from abroad to manage forex reserves
Exemption to tour operators in India if they provide
tours abroad for foreign nationals.
Tax reduction for transport of goods by vessel.
Loading/unloading/packing/storage/warehousing/transport by vessel, rail or road (GTA) of cotton,
ginned or baled, is now exempted. Cotton trade
should breathe easy a bit.
AUGUST 2014
43
TAXATION
Transport of organic manure by vessel, rail or road

(GTA) exempted.
How Service tax changes are

deployed to get more revenues
The methodology adopted by the budget-makers to
squeeze more revenue out of service tax is as analyzed
below
By deleting some entries from the negative list.
By withdrawing exemptions from the mega exemption notification no: 25/2012.
By eliminating exemptions indirectly thro re-writing
of some exemption provisions in the mega exemption
notification no: 25/2012.
By steeply increasing tax interest under section 75
aimed at forcing litigants to play safe by depositing the
tax demands.
By abolishing a time-tested and unique penalty-waiver
under Section 80 and removing the danger of Revenue losing tax demands for the extended period of 5
years whenever this section was invoked in favour of
the aggrieved appellants.
By making 7.5% and 10% pre-deposit of tax / penalty
mandatory for appeal filed with Appellate Commissioner and Appellate Tribunal respectively.
By making a huge service tax target of Rs 2.15 lakh
Crores for the current fiscal 2014-15. It will not be difficult to foresee the administration in the field getting
tough with the taxpayers to achieve the target or get
anywhere near it.
Interest rate goes up sky-high:
Period of non-payment of service
tax
Rates of Tax Interest for delayed

periods
Upto 6 months from the due date
18%
6 months 12 months
24%
Beyond 12 months
30%
Setbacks in Service tax:

Though the government claims that the steep rates are
intended to curb tax evasion and encourage on-time
remitting of tax that has been already collected by the
assessees from the customers, the real danger is that the
tax department will use the interest weapon to coerce
recovery against tax payers by simply raising demands
through fanciful interpretation or by refusing to comply
44
AUGUST 2014
with precedent case laws.
Advertising gets pricey

The Non-taxability of sale of space or time slots for advertisement other than advertisements broadcast by radio
and television is now removed. Exemption is restricted to
advertisements in print media only. There are tax implications of the move for Internet ads/onsite ads/devicebased ads (ATM, Mobile phones etc).
Keeping to home is lighter on the
wallet, travel is costlier
Radio taxis / Radio cabs get the call to come out of
negative list. The cab business will pass on the tax to the
users who will have to shell out extra money for the tax
outgo. Only plain vanilla metered black & yellow cabs
remain exempt. Exemption to air-conditioned contract
carriage buses is withdrawn, so AC Bus travel is going to
be costlier.
Educational service expenses to head north
A wide range of services exempted earlier under auxiliary educational services in notification no 25/2012
is cast away. Services exempted are now narrower and
caged tighter. Only security/cleaning/house-keeping are
spared from the axe. (The services that are now taxable
are covered in bold).
Before the change
After the change
Any services relating to

imparting any skill, knowledge,
education or development of
course content or any other
knowledge enhancement
activity, whether for the students
or the faculty, or any other
services which educational
institutions ordinarily carry out
themselves but may obtain as
outsourced services from any
other person, including services
relating to admission to such
institution, conduct of examination,
catering for the students under any
mid-day meals scheme sponsored
by Government, or transportation
of students, faculty or staff of such
institution;
Services provided, (a) by an educational

institution to its students,
faculty and staff;
(b) to an educational
institution, by way of, (i) transportation of
students, faculty and
staff;
(ii) catering, including
any mid-day meals
scheme sponsored by the
Government;
(iii) security or cleaning or
house-keeping services
performed in such
educational institution;
(iv) services relating to
admission to, or conduct
of examination by, such
institution;
Renting of immovable provided to

an educational institution
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Pilgrim accommodations and spiritual resorts get costlier

Before amendment
After amendment
Services by way of renting of

a hotel, inn, guest house, club,
campsite or other commercial
places meant for residential
or lodging purposes, having
declared tariff of a unit of
accommodation below rupees
one thousand per day or
equivalent.
Services by a hotel, inn, guest

house, club or campsite, by
whatever name called, for
residential or lodging purposes,
having declared tariff of a unit
of accommodation below one
thousand rupees per day or
equivalent.
The implication is that private entrepreneurial offerings

to educational institutions in the area of knowledge-enhancement will be taxable.
The words by way of renting and other commercial
places are removed. The extent and application of tax is
enlarged. Devasthanams offering above-1000 per day
cottages and rooms will have to charge service tax, as also
spiritual ashrams offering above -1000 per day resort-like
stay for their devotees. It should be noted that for service
tax purposes, the room tariff alone is not conclusive. Other
charges for sport, fitness, yoga, meditation and such other
facilities will be addable to the limit of Rs 1000 per day.
Reduction in the scope of tax exemption for supply

of municipal services
In a similar vein, re-writing of exemption under entry no
25(a) of notification 25/2012 for municipal services has
kept out of tax exemption advice, consultancy and feasibility services related to the launch and supply of municipal services.The effect is a positive inflow to the Exchequer from such services. The following table highlights
that. (Bold letters indicate what was earlier available).
Earlier version
New provision
Services provided to
Government, a local authority
or a governmental authority by
way of (a) carrying out any activity
in relation to any function
ordinarily entrusted to a
municipality in relation to
water supply, public health,
sanitation conservancy, solid
waste management or slum
improvement and upgradation;
Services provided to
Government, a local authority
or a governmental authority by
way of
(a) water supply, public health,
sanitation conservancy, solid
waste management or slum
improvement and up-gradation
Increase in reverse tax burden

The service of recovery agent is now made liable to service tax payment in the hands of Banks, Financial institu-
www.icmai.in
tions and Non-Banking Financial Companies. There has

been a reverse charge liability for companies in regard to
the fees paid to the company directors. The government
has now realized that directors are abundant across the
corporate spectrum and not limited to companies under
the Companies Act. It is now stipulated that Directors in
any Body Corporate will be covered by reverse charge. A
Body Corporate would denote any entity that has its separate legal existence apart from the persons forming it. It
possesses a completely different legal status apart from its
members. So, a body corporate shall include: a company,
a foreign company, a corporation, a statutory company, a
statutory body, an LLP and such other bodies that have
separate legal existence.
Increase in effective Works Contract Service tax

In the name of alignment of tax rates, the effective incidence of service tax on repair and maintenance contracts
relating to goods has gone up.The following table reveals
that. (The change is indicated in bold print)
Existing
Works contracts relating to
Original works -Tax value 40%
Maintenance, repair and
reconditioning and servicing of
goods -Tax value 60%
Other works contracts: tax value
70%
New
Works contracts relating to
Original works-tax value 40%
Maintenance/repair /
reconditioning/servicing of
goods : Tax value 70%
Other works contracts: tax value
70%
Setting Time-limit for Adjudication: a prescribed

statutory duty without provision for enforcement and
accountability
Similar to the central excise law, a provision has been
made in Service tax that show cause notices should be
adjudicated, where possible to do so, within 6 months or
one year from the date of issue depending on whether
the normal period of 18 months or the extended 5 year
period is invoked. However, this statutory duty in the
central excise law has remained an empty charade with
no enforcement and accountability. For the tax payers this
is a meaningless provision, unless it is stipulated that no
tax interest will be charged for any delay in adjudication
beyond the prescribed period.
Further delegation in Search & Seizure powers
There was a time when search and seizure in service tax
could only be ordered by the Commissioner of Service
tax or AC/DC authorized by him. Later this was diluted by enabling any Joint/Additional Commissioner to
AUGUST 2014
45
TAXATION
undertake search & seizure himself or authorize a superintendent to do that. Now the provision is further diluted to enable any excise officer to be authorized by such
Joint/Additional Commissioner. The quality of care and
safeguard in search and seizure will be weakened with the
delegation to lower level functionaries.
of production or manufacture of the excisable goods; a

warehouse or any other place where the excisable goods
have been permitted to be deposited without payment
of duty; a depot, premises of a consignment agent or any
other place from where the excisable goods are to be sold
after their clearance from the factory.
Some statute changes with substantial tax impact

Section 87 of the service tax law already has powerful instruments to coerce dues out of defaulting assessees.To this
a further weapon has been added. Now the tax department
can recover dues from the transferee of a business if the
seller has service tax dues relating to the business.
The unkindest cut is the total emasculation of section 80
which in its heyday enabled waiver of all penalties under
sections 76, 77 and the draconian section 78 of the Act
if the person concerned was able to establish reasonable
cause for his failure to pay service tax. Another benefit was
that when this section is invoked in favour of a person, the
tax demand for the period of 5 years will also not survive.
Now the section is restricted to smaller penalties only.
Now the Point of taxation in respect of reverse charge
of service tax will be the date of payment or the first day
that occurs immediately after a period of three months
from the date of invoice, whichever is earlier. Previously,
the period available was six months which is now shortened.Tax money will be speeded up.
Mandatory pre-deposit of tax and penalty

In an obvious attempt to shore up tax revenues, the government has introduced a new Section to prescribe
pre-deposit of tax and penalty for filing a appeal before
the Commissioner (Appeals) and Tribunal:The First Stage
Appeal requires 7.5% of tax demanded or 7.5% of penalty when only penalty is in issue and in the Second Stage
Appeal before Tribunal, 10% of duty demanded or penalty as the case may be is the pre-deposit. The pre-deposit
amounts are subject to a ceiling of INR 10 Crore.
Important changes in CENVAT Credit

A time limit for availing CENVAT credit on inputs and
input services within six months from the date of issue
of invoice, bill or challan has been prescribed. Re-credit
of Cenvat credit reversed on account of non-receipt of
export proceeds within the specified period, is to be allowed, if such export proceeds are received within one
year from the specified period on the basis of documentary evidence of receipt of payment. Rule 12A is amended so as to disallow transfer of credit by a large taxpayer
from one unit to another. There could be an exodus of
companies out of LTU since this virtual cheque-writing
facility on Cenvat credit balances has been removed. Input Service Distributor rules have been clarified to provide for distribution of common credit of more than one
unit to all the units operational during the year.
CENVAT credit of input services where service tax
is paid under full reverse charge is allowed to the service
recipient after the payment of service tax only. The term
place of removal has been specifically defined in Cenvat credit Rules to mean a factory or any other place
46
AUGUST 2014
Conclusion
The Budget changes in Indirect taxation reveal an anxiety
to bail out the manufacturing sector and in the bargain the
services industry has been made to bear the cross.The tax
changes are a veritable mixed bag. The tax targets for service tax are ambitious and tax payers apprehend a tough,
no-holds barred enforcement drive starting soon after the
Budget becomes law. In hindsight, many of the tax changes that ensure increased tax outflow from the tax payers
could have been avoided in a time of economic difficulties.
If the intention was to encourage citizens to consume or
save more and there by recoup revenues or savings for the
government in a win-win manner, it may not have been
achieved by legislating outflows from citizen wallets.What
is given as concession in income tax may be lost by the
citizens in extra outgo on indirect taxes. The provisions
fixing compulsory pre-deposit of tax or penalty may be
counter-productive and result in rushed demands in favour
of the Revenue to ensure a neat pie for the Exchequer.
What is needed is an assurance fortified with action from
the government that the abysmal quality of adjudication at
all levels will be improved and that the tax payers can expect fair orders. There is thus a lot to do for the government on the indirect tax front. It may be that the Budget
output is experimental and a work-in-progress and its future offerings will be a pleasant departure from the past.
For that to happen, the economy would have to do a lot
better than now and exports have to rise to levels commensurate with the size and potential of the country.
ravinpranaa@gmail.com
www.icmai.in
TAXATION
FINANCE BILL 2014:

SIGNIFICANT CHANGES IN
DIRECT TAX LAW
Within 45 days of assuming office, the FM has been able to
introduce thought-provoking amendments in the Income tax
law. This is very creditable indeed
TCA Ramanujam
Chief Commissioner
of Income Tax (retd.),
Advocate High Court,
Madras
TCA Sangeetha
Masters in Law
UDGET 2014 was presented on 10th

July 2014 before Parliament by the
New Finance Minister the Honble
Arun Jetley among growing expectations. Inflation was a constraint. Rising global oil pric-
48
AUGUST 2014
es are pushing up energy bills. The new Govt.

has to promises to keep like Millions of jobs
as Roads, Factories, Power lines, High Speed
Trains and 100 new Cities to be built. Reforms
are a must. Fiscal deficit has to be shrunk. Eco-
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nomic growth must be restored.

In this scenario, the Finance Minister has to choose
the concerns of the middle class. He raised the basic
exemption limit for levy of income tax from Rs.2 lakhs
to Rs.2.5 lakhs. Senior Citizens above the age of 60 will
have an exemption limit of Rs.3 lakhs. Raising the exemption limit by Rs.50,000/- for classes of incomes wil
mean a tax saving of at least Rs.5,000/- for those in the
10% tax bracket, Rs.10,000/- for those in the 20% tax
bracket and Rs.15,000/- for those in the 30% bracket.
Tax rates and surcharges will remain the same .They are
not altered. This is certainly a welcome move on the part
of the Government. There has been no consideration
shown in this regard for the middle class in the past 3
years.
Retrospective amendments
The Vodafone Case represented a water shed in the
development of the tax law in India. The Supreme
Court had upheld the companys claim that it was
not liable for capital gains tax when assets located in
India were transferred by one non-resident to another non-resident. Government will not take the
judgment lying down. Section 9 of the Income Tax
Act 1961 was amended by Finance Act, 2001 with
retrospective effect from 1.4.1962. Indirect Transfers
came to acquire a new meaning not visualized by the
Supreme Court in the Vodafones case. The amendment, especially its retrospectivity, shocked Corporate
India. There was hope that the new Government will
restore the law as stated by the Supreme Court and
give up retrospective amendments. The new Finance
Minister responded in a guarded manner. Early in the
Budget speech, in Para 10 he observed:
The sovereign right of the Government to undertake retrospective legislation is unquestionable. However,
this power has to be exercised with extreme caution and
judiciousness keeping in mind the impact of each such
measure on the economy and the overall investment climate. This Government will not ordinarily bring about
any change retrospectively which creates a fresh liability. Honble Members are aware that consequent upon
certain retrospective amendments to the Income Tax Act
1961 undertaken through the Finance Act 2012, a few
cases have come up in various courts and other legal fora.
These cases are at different stages of pendency and will
naturally reach their logical conclusion. At this juncture,
I would like to convey to this August House and also
the investors community at large that we are committed
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to provide a stable and predictable taxation regime that

would be investor friendly and spur growth. Keeping
this in mind, we have decided that henceforth, all fresh
cases arising out of the retrospective amendments of 2012
in respect of indirect transfers and coming to the notice
of the Assessing Officers will be scrutinized by a High
Level Committee to be constituted by the CBDT before
any action is initiated in such cases. I hope the investor
community both within India and abroad would repose
confidence on our stated position and participate in the
Indian growth story with renewed vigour.
What does this mean? Completed assessments pending in Appeal will have to be decided by the Courts.
Pending Assessments will be referred to the High level
committee by the CBDT. For the future, there is an assurance that normally tax law will not be amended retrospectively. This is a sort of compromise which has not
satisfied corporate India.
Corporate Social Responsibility

Companies Act, 2013, brought in a new provision making it mandatory for companies with a net worth of
Rs.500 crores or more or turnover of Rs.1000 crores
or more or a net profit of Rs.5 crores or more during
any financial year to spend at least 2% of their net profit on activities relating to Corporate Social Responsibility. Schedule VII of Section 135 of the Companies
Act, 2013 stipulated the activities to be carried on by
companies in discharge of their CSR policies. These
activities related to eradicating hunger and poverty,
promotion of education empowering women combating immuno-deficiency syndrome, malaria, etc.,
ensuring environmental sustainability, promoting vocational skills, social business projects, contribution to
Prime Ministers Relief fund and such other matters as
may be prescribed. The question was raised whether
these mandatory expenses will fall for deduction under Section 37 of the Income Tax Act, 1961. Section
37 allows expenditure incurred wholly and exclusively for the purposes of the business as a deduction for
computing taxable business income. Finance Bill 2014
amends Section 37.
The existing provisions of Section 37(1) of the Act
provide that deduction for any expenditure which is
not mentioned specifically in section 30 to section 36
of the Act shall be allowed if the same is incurred wholly and exclusively for the purposes of carrying on business or profession. As the CSR expenditure (being an
application of income) is not incurred for the purposes
AUGUST 2014
49
TAXATION
of carrying on business, such expenditure cannot be allowed under the existing provisions of section 37 of the
income-tax Act. Therefore, in order to provide certainty on the issue, it is proposed to clarify that for the
purposes of section 37(1) any expenditure incurred by
an assessee on the activities relating to corporate social
responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to have been incurred for the purpose of business and hence shall not
be allowed as deduction under Section 37. However,
the CSR expenditure which is of the nature described
in section 30 to section 36 of the Act shall be allowed
deduction under those sections subject to fulfillment of
conditions, if any, specified thereon.
The amendment will take effect from 1st April, 2015
and will, accordingly, apply in relation to the assessment
year 2015-16 and subsequent years.
What do we make of this amendment?

Section 135 and Schedule VII of the Companies Act
were discussed in this magazine in an earlier issue. The
activities mentioned in schedule VII were such that they
could be considered as business expenditure mandatorily
dictated by law. The issue was debatable. The amendment of Section 37 of the Income Tax Act, 1961 by the
Finance Bill 2014 places the matter beyond doubt laying
down that CSR expenditure will not qualify for deduction under Section 37 since it represented an application
of income after it was earned.
Charitable Trusts
Reference may be made to the article An Intelligent
Interpretation of the Tax Law on Charitable Trusts by
the present authors who appeared in May 2014 of this
journal. The case of Jamsetji Tata Trusts 42 docs (view
all) was discussed at length. Tata Charitable Trust had
argued that its dividend income was exempt under Section 10(34) because such income is taxed under Section
115(O) by way of Dividend Distribution tax. Sections
11, 12 and 13 had to be considered while applying Section (10). The Tribunal Ruled that the benefit of Section 10 cannot be denied by invoking the provisions of
Section 11,12,and 13 of the Act. Once the conditions
of Section 10 are satisfied, then no other conditions can
be fastened for denying the claim under Section 10. The
Tata Trusts succeeded.
Now comes the amendment by the Finance Bill
2014. It is explained that the primary objective of
providing exemption in case of charitable institution
50
AUGUST 2014
is that income derived from the property held under

trust should be applied and utilized for the object for
which the institution or trust has been established. In
the interplay of the general provisions of exemptions
which are contained in section 10 of the Act vis--vis,
the specific and special exemption regime covered in
Sections 11 to 13 should govern cases of trusts. The
specific provisions should not be allowed flexibility of
being governed by other general provisions or specific
provisions at will. Allowing such flexibility has undesirable effects on the object of the regulations and leads
to litigation. The amendment lays down that where
a trust has been granted registration for purposes of
availing exemption under Section 11, and the registration is in force for a previous year, then such trusts
or institution cannot claim any exemption under any
provision of Section 10 other than relating to exemption of agricultural income exemption under section
10(23C). An amendment is also made to provide that
under Section 11 and Section 10 (23C), income for
the purposes of application shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of
which has been claimed as an application of income
under section 11,12 and 13. These amendments are
prospective in nature. At one stroke, the Finance Bill
has annulled the Rulings discussed in the Article that
appeared in May 2014 in this journal. This does not
show charity to the Charitable Trusts.
Kisan Vikas Patras

In para 27 of the Budget speech, the F.M has chosen to
reintroduce the Kisan Vikas Patras to encourage people
who may have Banked and unbanked savings to invest in
these instruments. Fears have been expressed that such
Kisan Vikas Patras may induce conversion of black money into white because there is no Rule laid down that
the names of the persons investing in the KVPs should be
disclosed before the Authorities.
Conclusion
There are various other amendments introduced by the
Finance Bill touching upon transfer pricing, Dividend
Distribution tax, Capital gains etc. Within 45 days of assuming office, the FM has been able to introduce
thought-provoking amendments in the Income tax law.
This is very much creditable indeed.
ramanuja@vsnl.com
www.icmai.in
TAX TITBITS
S. Rajaratnam
Advocate and
Tax Consultant,
Chennai
Direct Tax Proposals Budget, 2014
HE Finance (No.2) Bill, 2014 has followed the

usual pattern with as many as 71 amendments
which tinker with the law by enhancing powers of tax
administration in survey, search and collection of information, besides extension of time limit for issue of stat-
utory notices and extension of TDS provisions along

with the usual neutralisation of the decisions of the
Courts unsettling the settled law. Some of the proposals
may require correction even before the Bill becomes
law. A reference is now made to some of them.
Specter of TAS
E have International Accounting Standards besides Accounting Standards recognised or prescribed under the Companies Act, 2013 with periodical
information about the accounting treatment expected
by law from various agencies like Reserve Bank, Securities and Exchange Board of India and regulatory
authorities like Insurance Regulatory and Development
Authority (IRDA).Tax Accounting Standards for which
power is taken under section 145 had not been put to
use so far except for adopting AS 1 and AS2 as TAS 1
and TAS 2. The proposed TAS Standards for 11 more
items like Prior Period Items, Construction Contracts,
Government Grants, etc. preponing income, postponing
deductions, deeming capital receipts as revenue and revenue expenditure as deferred expenditure etc. as is ev-
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ident from published Tax Accounting Standards, which

will now become law on notification after the proposed
amendment to section 145(2). This will be effective
from 1.4.2015. Such parallel computation of income
will override all other Standards on notification under
amended section 145(2).
No notice has been taken of development of law with
enactment of Companies Act, 2013 relating to cost accounting standards and records as for exemption under
Valuation of Inventories. Tax Accounting Standards
should not override the Cost and Management Accountants concept of cost, where cost form a basis or
alternate basis of valuation. While more jurisdiction is
envisaged for Valuation Officer under the Income Tax
law, the new provision on valuation and the expertise
AUGUST 2014
51
TAXATION
recognised under the new company law has also been

overlooked.
Computation of income under income tax law will
follow a different path in a more pronounced manner
making the computation of income not only complex
but also unrealistic placing an enormous burden to

make adjustments for arriving at taxable income from
income maintained according to requirements of company law and Generally Accepted Accounting Principles (GAAP).
Retrospective amendments
HE Finance Ministers speech has taken notice

of abnormal arrears consequent on retrospective
amendments. There is a proposal in the Finance Ministers speech to provide for review by a committee of
the Central Board of Direct Taxes, a poor consolation. The objections to the merits of the amendment
even to the extent it was prospective have gone unanswered.
Advance Ruling
HE next suggestion is for extending advance

ruling to residents is a welcome one. But since
advance ruling is not final according to the decision
of the Supreme Court in Columbia Sportswear Com-
pany v. Director of Income-tax [2012] 346 ITR 161

(SC), it could hardly be of any great assistance except
short-circuiting the appellate fora. Amendment to
make the Advance Ruling final is necessary.
Settlement Commission
HE proposal to extend the scope of settlement by

Settlement Commission would, if implemented will
solve many of the outstanding problems and avoid unrealistic arrears of tax. Settlement Commission should be
brought back on rails as before with its earlier powers
restored.
The Finance Bill does not contain any provision re-
garding the above three proposals, but it is indicated that

the necessary amendments regarding the last two proposals would see implementation in this session itself apparently by way of a separate Direct Taxes Amendment Act.
In that case, all amendments to law proposed in the Bill
may well be shifted to form part of such Amendment
Act, where they legitimately belong.
Dividend distribution tax made more bitter
HE base for additional tax for distributed dividend

and distributed income of mutual funds will no
longer be on the actual amount distributed, but on the
gross amount including the distribution tax, so that it
becomes a tax on par with tax deduction at source, but
without credit of such tax in the hands of shareholders/
unit holders. The disallowances of related expenditure
under Rule 8D read with section 14A can now make
no sense, since the inference that dividend income continues to be tax free can no longer be sustained. It is
because the amendment would bring tax on dividend
distributed on par with all tax deductions at source in
Chapter XVII, so that a separate Chapter under Chapter
52
AUGUST 2014
XII-D should not be necessary.

Taxation of dividend is regressive, so that there is case
for restoration of tax on such dividend in the hands
of shareholders. There is also need for review of the
entire system of corporate taxation, since incidence of
tax on corporate income, when considered along with
tax on both regular and deemed dividend income in
the hands of the shareholders, is discriminatory. It may
be added the set off of deemed dividend against declared dividend provided under section 2(22)(e)(iii) is
not available when deemed dividend is taxed on shareholders hand while regular dividend is taxed in the
hands of the company.
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Mutual funds are badly treated
AX on long term capital gains is proposed to

be jacked up from 10% to 15%. Unlisted securities and units of mutual funds will be treated as
short term capital assets for period of holding upto
3 years raised from one year. Concessional rate of tax
under section 112 at 10% on long term capital gains

if indexation benefit is not availed will no longer be
available, so that liability for units of Mutual Fund
except equity oriented funds will be taxed uniformly
at 20%.
Taxation of business trusts
HE two new investment vehicles recognised viz.

Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (Invit) the income of which
will be taxed at 5% for residents and 10% for non-residents in the hands of the investor. If these units are listed,
liability for capital gains tax will be spared, if Securities
Transaction Tax is paid. Tax will be deducted at source
under section 194LC. If in the case of Invit units, black
money in India and abroad would have surfaced, if amnesty by way of immunity from same being questioned
under section 69 had been granted. Adequate resources for infrastructure with consequent employment and
growth will follow. But what is provided is policing of
investments with the requirement of KYC norms and
rigid monitoring of information with penalties for failure to provide them.
Investment allowance
NVESTMENT allowance, which was restored last

year under section 32AC but limited to investments
above Rs. 100 crores is now made available for the reduced limit of Rs. 25 crores, so as to benefit the medium
scale sector. It would have been much wiser to remove

the limit altogether in the larger interest of the economy.
It is the small scale sector which offers employment and
is in need of tax relief.
Section 35AD
HE benefit of section 35AD allowing capital expenditure is now extended to (a) laying and operating a slurry pipeline for the transportation of iron
ore; (b) setting up and operating a semiconductor wafer
fabrication manufacturing unit, if such unit is notified by
the Board in accordance with the prescribed guidelines.
The periodic extension for industries, which qualify for
deduction for capital expenditure under section 35AD
can be replaced by making it available for all manufacturing industries in view of the professed commitment
to encourage manufacturing industries. Exception may,
however, be made for low priority industries listed in the
Eleventh Schedule.
The further restraint under section 35AD by requiring use of assets for period of eight years was rigid
enough, but now the difference between the amount
allowed under section 35AD and normal depreciation
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under section 32 will be brought to tax, if the asset

is transferred or demolished, destroyed, discarded or
transferred. This difference will also be taken into account in computation of book profits for Minimum
Alternate Tax (MAT) and Alternate Minimum Tax
(AMT). It is another dilution of benefit under section
35AD. Section 35AD only allows depreciation in advance. The loss for the industrial unit availing section
35AD is also not set off against other income. In view
of these restrictions, the loss of revenue in extending
section 35AD to all manufacturing industries is not
only minimal, but also made good over the years. Such
a step excluding the benefit to all manufacturing industries would have provided a valuable incentive for
the growth of manufacturing industries, which will
ultimately solve unemployment problems and provide
for real growth.
AUGUST 2014
53
TAXATION
Conversion for FIIs
HERE is a concession proposed for Foreign Institutional Investors (FIIs) under section 2(14)
(i) by treating its stock-in-trade as capital asset limiting the liability to capital gains tax. This is a welcome clarification for foreign portfolio investors. But
there is no reason why it should not be extended to

Indian investors, so that the perennial controversy as
to whether an assessee is a dealer or investor can be
avoided with advantage of a larger turnover in stock
exchange.
Charities
HARITABLE institutions with the object of

general public utility are badly affected by the
amendment to the definition of charitable purpose
made under section 2(15) by the Finance Act, 2008.
The agony of such NGOs is compounded by the inference of business in too wide a sense, so that even
statutory duties carried on by authorities set up by
the Government as in the case of ISI or various certification agencies have been subjected to tax. This law
has been misapplied in the case of Chambers of Commerce, which should even otherwise be exempt on
the principles of mutuality, besides limiting liability
to such income from service under section 28(iii) of
the Act, where it is taxable.
Powers of cancellation of registration is enlarged.
The NGOs are badly hit, if the earlier amendment to
definition of charitable purpose and the proposal to
enlarge the power of cancellation are not dropped.
Corporate Social Responsibility neutralised
NE of the most unwelcome measure is the denial of deduction of expenses incurred on discharge of corporate social responsibility made mandatory under section 135 of the Companies Act, 2013.
Even before it was mandatory, it was held deductible
in CIT v. Madras Refineries Ltd. (2004) 266 ITR 170

(Mad) and CIT v. Infosys Technologies Ltd. (2014)
360 ITR 714 (Karn). They will stand neutralised. In
the larger interest of the economy, the proposal should
be dropped.
Presumptive tax
he limit for presumptive tax for transport operators

is liberalised by substituting the income for each
truck from 5000/4500 by Rs. 7500 in view of inflation
after the time it was originally fixed. On this rationale,
even for other businesses covered by presumptive taxation, limit should have been liberalised.
s.rajaratnam@vsnl.com
Attention please Members in Practice

Members in practice can now view their validity of Certificate of Practice by following the procedure as laid down below:
1. go to the home page of the Institute website, ie www.icmai.in
2. go to the members' log in on the top of the Home page by using your membership number as 'User ID' and a combination of your
DoB (in dd-mm-year format) and Membership number as your 'Password'
3. immediately you will be led to the 'Membership Management System' page
4. go to the 'Certificate of Practice' menu on that page
5. view the validity of 'Certificate of Practice' which is the last item on that menu
54
AUGUST 2014
www.icmai.in
CMA
PROFESSION
THE PROFESSION,
PROFESSIONALS AND
THE CMAs
CMAs must prove, through their work, that they are true
professionals in every sense and are here to extend their
professional expertise for the benefit of all the functional
areas of the economy
N
CMA Harijiban
Banerjee
Former President
Director, Senbo
Engineering Limited,
Kolkata
56
ouvelle Vague is a French word, which

means New Wave. While the English word Abracadabra indicates the
mantras or words a sorcerer chants before he
performs his treats to do some unbelievable
feat before the naked eyes of the public. In todays modern world which has popularly been
defined as s Global Village, the professionals
particularly those associated with accounting
activities require to live between the poles of
above two words Nouvelle Vague and Abracadabra. We find various uplifts newer developments both scientific and political. Also
economic social and cultural cooperation in regional and international fronts are found to be
very common phenomenon now. Opening up
of so many areas of activities in such a massive
manner establishes that there is a positive surge
of new wave of professional manifestation all
around be it in financial and economic ideas,
be it in political and social approaches thereby
immensely affecting the human lives and behavior.
But all these new waves of changes have
not always been well defined and appropriately structured. Fall out of such a situation has
obviously created a chaotic impact in almost
all the spheres of life. There was no exception
to the professional world also. Which is why,
the professionals are now confronted with so
many changes from compliance of the statuto-
AUGUST 2014
ry requirements involving Tax Laws, Cost and

Management, Accounting Practices, Auditing
Applications, to so many other formalities that
need to be observed. Leave apart the question
of non compliance, deviation or inappropriate
compliance of these requirements may invite
complexities along with penal provisions. Under this situation, the world is like a disarranged
and unorganized table of an efficient magician
who will chant his abracadabra to drive away
what is wrong, what is evil so that order prevails and the spectators get relief to find that the
woman assistant cut into two pieces a while ago
is absolutely alive and just singing on the dais.
In such a trying situation the role of Professional Accountants is more than that of an efficient
magician. The importance of their active association, prudent decision, matured guidance
and professional gumption is just unbound to
put and arrange the things and system in order
for giving life saving relief to the society.
Who is professional?
On a more mundane level we can pretty well
define a Professional as one who is connected with a job that needs special training or
skill - especially one that needs a high level of
education. Such a subjective identification attributes some qualities to a professional such
as, he is specially trained or has acquired special skill to carry out the assigned duties and
www.icmai.in
he has high level of education and

knowledge obviously in that particular area wherein such professional is
engaged.
In fact in modern times, the second decade of the twenty first century, when Drones are supposed to
make home deliveries, robots to do
your household work, almost half of
the world population on the facebook, a professional, more particularly Accounts Professional in his engagements, is much more than what
is defined above.
The main underlying difference
between the academic and professional levels o f studies is that pursuing an Academic Course of study
helps a student to gain knowledge
about a particular area of education.
Professional education, as against
that, teaches how one should apply
the said knowledge possessed by the
Academic Courses
said professional through academic,

vocational courses or even through
acquired knowledge in practical and
real life situations.The basic password
for success of a professional person is
how he applies his acquired knowledge of specialized nature to solve
a real life problem intelligently in
an acceptable manner. This is more
so for the persons engaged in the
Accounting Profession. The subject
idea can better be described by a
schematic diagram as below:
The global village of accountants

Whoever likes it or not, the bare and
proven fact is now that everywhere in
the world all monetary transactions
and activities are expressed through a
universally accepted language called
Accounts. Performances and activities in economic and financial areas get represented through figures
Vocational Courses
which again are booked, recorded

and classified to manifest accounting statements in the desired and
required formats. The role of Cost
and Management Accountants is immensely important at this point because he is not only supposed to have
detailed knowledge about the systems through which manual figures
are collated and classified to form the
books of accounts, but also about the
stages of production process and the
activity orientation levels in various
service sectors. Under such a fast
changing vistas of so-called global
village, the work pressure of a Professional Accountant becomes multidimensional having professional, social
and ethical angles. Pervading impact
of such changes, in fact, will be more
prominent for the profession of cost
management accountancy. Needless to say that a Cost Management
Training & Programs
Practical Involvement &

Participation
Professional Knowledge
Knowledge Base
Application of
Knowledge in
Profession/Employment
Total Knowledge
Professional Experience
WISDOM
SUCCESS
www.icmai.in
AUGUST 2014
57
CMA
PROFESSION
Accountant, either in practice or in

employment, must equip himself adequately to cope up with the prevailing situation thereby he can comply
with the requirements and expectation of the corporate world as well as
the society itself.
If the test of the pudding is in eating, usefulness of Cost & Management Accountancy will have to be
proved not only through the skilful
and prudent use of various tools and
techniques justifying them beneficial to the end users but also by the
level of capability and professional wisdom to ascertain as well as to
assess what is being happened now
and also clearly visualize what is just
going to happen thereafter. To be a
true professional, a CMA requires to
accommodate his professional entity
always with the ever changing situations around him and must adjust
his profession acumen accordingly
in a befitting manner. This will aptly
sharpen his professional excellences
and thereby help him abundantly to
accept the challenges of changing
times and brush aside the rust and
dust of professional obsolescence.
Then and then only a CMA will acquire the unique feat of seeing what
is there behind the curtain of undefined obscurity ---- how the figures
talk among themselves often to tell
many untold stories.
The Sage and the Urvashi

The height of professionalism and
how professional approach can intelligently be applied and maneuvered
may perhaps be best manifested
by the two anecdotal submissions
which can be stated as follows:
A sage who in order to search the
existence and omnipotence of God
was grossly engaged in protracted
concentration and meditation. By
virtue of his penance, he acquired
58
tremendous potential capability of

even over ruling the power of nature,. This became constantly a mordant cause of anguish and anxiety
of Lord Indra the King of Heaven
(CEO of God and Goddesses of
Heaven, the Celestial Multinational?). He was afraid of losing his kingdom to the powerful sage. So in his
own usual way Lord Indra hatched a
conspiracy to inactivate the power of
the sage by luring him to enter into a
mundane relationship with the most
beautiful court dancer cum singer of
Heaven, the Urvashi. As a part of the
plan Lord Indra organized a soiree to
have musical and dance performances by the beautiful charming and
youthful Apsaras of Heaven (the lady
performers) at the Nandan Kanan
(the Garden of Eden). There he invited the sage to enjoy the evening
as a Guest of Honour. Unhesitatingly
accepting the invitation the sage in
a very unassuming dress with lean
thin and hair locks all overhead sat
in a corner in a humble manner at
the place of the event. He was absolutely unbecoming, unbefitting and
mismatch with the pomp, gaiety and
grandeur of Nandan Kanan.
The programme started with music as the Heavenly Wine (Somras)
was served among the Gods, Goddesses and other guests. The sage
took the wine quite casually. Gradually various items of entertainments
were served. As the fun, frolic and
fiesta became hot to hotter and having been served with good rounds of
drinks the seemingly appeased sage
who was even making some encore
sounds, looked happy and interested.
On seeing the sage in such a condition Lord Indra asked Urvashi to appear on the scene and sing serenade
with provocative dance. The lady in
her youthful elegance and charming
appearance looked as if she was the
AUGUST 2014
last word of an attraction. She started dancing also. She was wearing a
unique revealing dress. She was presenting altogether a total dance of inebriating nature through which was
also making alluring signals of invitation to the sage. The combination
of song with rhythmic dance, scent
of Eden flowers and the heavenly
wine created an ambience ineffable
to make the viewers spell bound
and numbed. Right then Lord Indra
gave an indicative signal to Urvashi
who immediately came in front of
the sage with a dancing pose and
started throwing away her dresses
one by one in a strip teasing manner.
Finally there was not even a single
thread on her body. It appeared that
the sage got deeply engrossed as he
was enjoying all these. Lord Indra felt
so happy thinking that his conspiracy
would now bear fruit to seduce the
sage and his kingdom would eventually be saved. Just at that moment the
sage all on a sudden smilingly said,
Oh Urvashi, please open further
and let me see more. Hardly the
sage uttered these words all the skin
that covered Urvashis body instantly
got evaporated. It was not Urvashi but just a body of flesh dancing in
front of the sage! The sage got up
and said again with a big grin on his
face, Oh, Urvashi, please open further and let me see more. As soon
as this was told, all the flesh of Urvashis body vanished within twinkle
of an eye and it was an ugly skeleton dancing in front of the sage, who
then looked at Lord Indra and said,
My dear Sir, you made a great mistake in trying to provoke me with
this skeleton only. Remember, I am
already provoked with the professional wisdom by which I am trying
to know the God. I have been trying
to know the truth of life and what is
there beyond. I never cared for your
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kingdom of heaven. By saying these

words he put Urvashi back in her
original form and shape and thereafter left the Heaven.
The sage was an exemplary model of true professional who by dint
of his knowledge and wisdom could
ascertain what was there beyond the
apparently visible things and what
truth was there behind.
Finding out the truth and revealing it, as the modern Management
Gurus think, may not always crown
professional excellence to a person
since reality and truth are two different angles of earthly activities of
lives which, it is needless to say, get
greatly influenced by the economic
and financial hazards, taking place
every now and then in our world of
Global Village .
In this context, the story of Yudhisthira in Mahabharat can be cited as a topical example of extreme
professionalism. By loudly telling
Aswathama Hoto Roney and
then whispering Eeti Gojo to
his Guru Dronacharya, he uniquely
submitted the fact of reality in such
a way to mean something altogether
different and the essence of communication benefitted the Pandavas to
win the war ultimately. This is what
the modern world expects from the
professionals, especially from the
profession like ours CMAs.
To acquire professional excellence
CMAs , at the time of execution of
their assigned task, must sincerely
try to find out the underlying facts
of the situation involving a job , then
search for the truth. Once these are
available with him duly supported
by facts and figures, he should table
them in such a professional manner that should prove beneficial to
all the stakeholders like, he himself,
client, regulator and the society. One
can ask how so many stakeholders
www.icmai.in
-- all at a time -- having divergent

and contradicting interests, can be
satisfied by the CMAs? The honchos of modern management think
that it can be done, yes, it can even
be done even easily. They feel if
without professional education, our
parents can play the role of father,
mother, son, daughter and even inlaws satisfying the varying requirements of all the members of family,
neighbours, friends, guests etc. then
why not qualified professionals?
They have all the needed academic
and professional knowledge, special
skill to tackle situation and expertise
to cope up with the adversities. Yet
in one particular aspect they may
be lagging, which is called Intelligentsia.This very important matter
for a professional and needs to be
acquired by studying and analyzing
the circumstances prevailing around
. CMAs should never concentrate
on one particular aspect or point,
instead must make an in depth
analysis of all the available / non
available relevant points and then
should focus on a particular point
of conclusion. Frankly speaking,
in terms of dynamic management
of today, Arjuna, the most efficient
Pandava would have been termed as
Professional of Mediocrity since
in the practical test of archery he
fixed his target only on the eyes of
the bird in the bush forgetting the
world, environment around him. As
against this a successful professional
of today well before fixing a target
-- has to judge, analyse and consider
all the situations prevailing around
him along with ever changing economic financial and political scenarios and thereafter should ascertain
what his target be and what he has
to pin point to justify the professional excellence and correctness of
his decision !
AUGUST 2014
Conclusion
A popular English adage goes as follows Tell me who your friends are
I shall tell you who you are
This signifies that a man is known
by the company he keeps. The underlying philosophy of the above
saying has farfetched implication and
can be applied for CMAs also. In
the present scenario of the country,
as our CMA fraternity also strongly believes, India will make a great
leap forward in the coming years. At
this critical time of uplifting, we the
CMAs, must prove our quality effectively and sustain the excellence
all along. Through our skilful deeds
and acts we must prove that we are
true professional in every sense and
are here to extend our professional
expertise for the benefit of all the
functional areas of the economy be
it industry, be it the regulators, be it
the society itself.
As the Moon shines with the rays
of the Sun, a profession or an Institute can shine only with the achievements and successes of its members
and students. Achievements and glorious attainments by the members
and the students make the profession
and the Institute glow bright to
brighter. Let us hope CMAs and the
profession of CMAs will appropriately decorate our mother Institute,
The Institute of Cost Accountants
of India with ornamentals laurels
they earn through their successful
achievements as professionals. Let
the smile of our members and students bring a genuine smile of happiness on the face of our Mother
Institute also and it is a universal
truth that the mother is always
greater than the heaven !
harijibanbanerjee@gmail.com
59
CMA DOSSIER
A directory of some research papers on Government Accounting that appeared in various
journals/periodicals/magazines across the world is presented below for the reference of readers. The articles are available at the link provided next to them.
Name of the topic
Author
Reference with date
Link
Towards a new era in government

accounting And reporting
PwC Global survey on accounting

and reporting by central governments
PwC, April, 2013
http://preview.thenewsmarket.com/
Previews/PWC/DocumentAssets/284413_
v2.pdf
The role of management as a user of

accounting information: Implications for
standard setting
Brigitte EIERLE
Wolfgang SCHULTZE
Accounting and Management Information

http://www.cig.ase.ro/RePEc/ami/
Systems
articles/12_2_2.pdf
Vol. 12, No. 2, pp.155 189, 2013
Effect of IFRS and Financial Statements:

Implications on FDI and Indian Economy
Rakesh H M
Shilpa R
IRACST International Journal of

Commerce, Business and Management
(IJCBM), ISSN: 23192828
Vol. 2, No.5, October 2013
http://www.iracst.org/ijcbm/papers/
vol2no52013/2vol2no5.pdf
Promoting improved transparency,

accountability and economic policy for
governments: The Australian experience
Jeffrey Luckins CPA
October 2012
http://www.cpaaustralia.com.au/~/media/
corporate/allimages/professional%20
resources/reporting/transparencyaccountability-economic-policy.pdf
Adoption of international public sector

accounting standards in Nigeria:
Expectations, benefits and challenges
Ijeoma. N. B
Oghoghomeh. T.
Journal of investment and management

2014; 3(1): 21-29
Published online march 10, 2014
http://article.sciencepublishinggroup.com/
pdf/10.11648.j.jim.20140301.13.pdf
Improving government accounting and

financial management reporting in Iraq.
Aso Ahmed Abdullah
http://www.eajournals.org/wp-content/
European Journal of Accounting Auditing
uploads/Improving-Governmentand Finance Research Vol.2, No. 6, pp.
Accounting-and-Financial-Management69-77, August 2014
Reporting-In-Iraq.pdf
The Innovative Approach for Accounting

and Accountability of
Government Revenues in Iraq
Dr. Talal A. Al- Kassar

Prof. Dr. Mahmoud Al-Wadi
Dr. Alexander Dawoody
Research Journal of Finance and

Accounting Vol.5, No.9, 2014
Accounting for influence of execution

of financial conventions on revenue
utilization in local government areas:
Nigerias experience of level of voluntary
compliance
Akabom-Ita Asuquo,
Aniefiok Udoh Akpan,
Mr Charles Effiong
European Journal of Accounting Auditing http://www.eajournals.org/wp-content/

and Finance Research Vo.2, No.5, pp.1-18, uploads/Accounting-For-Influence-Of-Execution-Of-Financial-Conventions.pdf
July 2014
Government Regulation to Enhance the

Accounting Professions Focus on the
Public Interest for Professional Service
Delivery
Eric Clubb
Proceedings of World Business Research

Conference 21 - 23 April 2014, Novotel
World Trade Centre, Dubai, UAE
http://www.wbiworldconpro.com/uploads/dubai-conference-2014-april/accounting/1398064759_111-Eric.pdf
Management accounting and control

Systems in the context of public sector
Reforms: a case study of a government
Department in Papua New Guinea
Thaddeus kambanei
University of canberra
February 2014
http://www.canberra.edu.au/researchrepository/file/42415009-dd8e-4dd4-aa1cc4f046e49f7d/1/full_text.pdf
Management accounting and control

The Accounting Methods of the Local
Haoyuan Zhong, Guangming Deng
Government Department Output by Factor
Analysis
Applied Economics and Finance Vol. 1, No. http://redfame.com/journal/index.php/aef/

1; May 2014
article/view/363/321
Does Accounting Quality Influence

Product Market Contracting? Evidence
from Government Contract Awards
Kai Wai Hui

Joseph Pacelli
P. Eric Yeung
March 2014
http://www.insead.edu/facultyresearch/
areas/accounting/events/documents/INSEAD-03-17-2014.pdf
Government Preferences, SECs

Enforcement Actions and Firms
Accounting Violations
Jonas Heese
November 2013
http://accounting.eller.arizona.edu/
docs/Workshop_papers/Spring%202014/
Jonas%20Heese's%20paper.pdf
2013
http://www.apira2013.org/proceedings/
pdfs/K180.pdf
Interdisciplinary journal of contemporary

research in business
Copy right 2013 institute of
interdisciplinary business research 3 5 5
November 2013
Vol 5, no 7
http://journal-archieves36.webs.com/355364.pdf
Agential conflicts and accounting reforms

in Less Developed Countries: The Case of Pawan Adhikari and Kelum Jayasinghe
the Nepalese Central Government
The relationship between Accrual

government accounting and Compliance
auditing
60
http://iiste.org/Journals/index.php/RJFA/
article/view/13035/13425
Abolfazl Darehzereshki
Saeed Saeida Ardakani
Ramin Abghari
AUGUST 2014
www.icmai.in
BANKING
SME LENDING MODELS OF

PUBLIC SECTOR BANKS IN INDIA:
INNOVATIVE THINKING
For banks in India innovating thinking for adopting right
serving models does not remain a choice but compulsion
owing to the contribution of SME sector in employment, export,
manufacturing and economy growth
L
CMA Dr Ram
Jass Yadav
Assistant General
Manager & Vice
Principal,
Bank of Baroda,
Staff College,
Ahmedabad
www.icmai.in
ENDING has been assumed as a key element for enhancing competitiveness of

SMEs for building productive capacity,
to create jobs, to contribute to poverty alleviation for ensure equitable development of nation. Without finance, SMEs cannot acquire or
absorb new technologies nor they can expand
to compete with larger firms in global as well
as in domestic markets. Traditional approach of
banks has been reluctant to service SMEs for a
number of well known reasons such as SMEs
are regarded high risk borrowers due to insufficient assets & low capitalization, vulnerability
to market fluctuations and high mortality rates;
lack of accounting records, inadequate financial
statements or business plans makes it difficult
for bankers to assess bankability of potential
SME proposals. Banks are generally found biased toward large corporate borrowers, who
provide better business plans, have credit ratings, more reliable financial information, better
chances of success and higher profitability for
the banks.When banks lend to SMEs, they tend
to apply tougher screening measures, which
drives up costs on all sides. A well- functioning
mechanism for SME financing adopts a market approach which enhances banks ability to
provide finance to SMEs with commercial understanding that lower costs and minimize their
risk exposure. This innovative sense of business
will find SME lending more profitable, and thus

be encouraged to construct lending programs
targeted at SMEs as compared to large corporate which are driving down margins and fees.
Banks in developed countries have launched a
number of intuitive that improved profitability of lending to SMEs and also provide SMEs
with better access to finance. A number of leading banks have demonstrated that providing financial services to SMEs can be turned into a
highly profitability business.
Business environments in developing and
developed countries though differ in many
respects, the problems of servicing SME customers are similar, namely high perceived risk,
problems with information asymmetry and
high administrative costs. In this backdrop, author has made an attempt to review latest trend
of lending practices for SME in India and based
on the observations of the survey innovative
thinking for lending to sector is suggested in
the paper to build capacity of SMEs.
Methodology & Sample

A study has been carried out to analyze impact
of a credit delivery model adopted for SMEs
loans by public sector ban (PSB) in India and
also collected primary data from bank officers
on numerous issues involved in lending to SME
Sector.The data used in this paper covers a sam-
AUGUST 2014
61
BANKING
ple of 251 officers & executives who have been interviewed on various guidelines of SME lending in India; of
which 125 officers / executives representing 49.80% of
the sample size have led the branches during their service
with the Bank. Innovative Thinking being the central focus primary data gathered through a structure questionnaire is used in the study to suggest ways for improving
competitiveness of small business for capacity building.
Findings Of Study
The major findings of the study based on the analysis of
lending practices for SMEs observed during the survey
are discussed below
Time Value in Credit Business
Time lapsed without its use can never be restored and
more importantly in lending business the loss from delayed decision cannot be quantified in monetary terms.
It is said that if one wants more time to take correct decision in that case a right decision is also wrong when it
is too late. The analysis of responses collected from bank
officials (Table-1) is presented below
Table -1: Credit Efficiency Index (CEI)
%
Credit
%
Adherence
Numbers
Numbers
age* Assessment
age*
Reserve Limits
Acknowledgment
for payment to
66
26
of Loan
151
60
SMEs by Large
Applications
Corporate
Providing
Fixing appointed
collateral free
121
48
date to discuss 202
80
loans to eligible
applications
MSEs
Assessment of
working capital
limits based
Observance of
199
79
on Turnover
152
61
Turnaround Time
Method up
to limit of Rs.
5 Crs
* %age works out to total responses from 251 officers / executives
in Bank
Timely credit observed in 152 responses that represents

61% of the sample. It leads to the inferences that credit
is delayed in 39% cases which may cause non achievement of business plan and thus attribute to poor sales and
also postponement of project implementation that makes
advances non performing. Laxity in credit decisions on
one side taxes the economic growth (GDP) of country
and on other way it is drainage on banks profitability.
62
AUGUST 2014
The further analysis of credit efficiency reveals that loan

applications are dealt with poor governance as merely
60% officials reported that they acknowledge receipt of
loan requests from borrowers. Two hundred two officers
that constitute 80% of total sample size informed that
an appointed date for discussion on applications is given at time of receiving the same. Lack of professionalism
in handling loan application might be one major reason
of non-observance time norms in delivering quality &
timely credit to entrepreneurs.
Credit Assessment
Providing loan is like feeding a baby for his growth. Relationship between lenders & beneficiaries should be
therefore, treated a biological relations of mother & child
to understand significance of granting adequate credit to
entrepreneurs in time. It is observed from the data exhibited in Table -1 that working capital limit up to Rs.5
Crores for SMEs is assessed as per applicable method of
lending in 199 cases which represents 79% sample size.
Further, the sanctioned is carved out for payment to
SMEs by large corporate only in 66 cases constituting
26% as against 100% as per central banks directives. The
analysis signifies that optimum level of credit is not provided by 21% officers of the bank that may force SMEs to
avail private borrowings at higher cost to run their business and thus banks dues are getting second preference
to be served after private lenders. Also large corporate
do not settle supply bills of SMEs for want of separate
limit for the purpose as per RBI guidelines which adversely affect product cycle due to liquidity problems of
SMEs and become reason of non achieving their business
plan. It is more surprisingly noticed during the survey
that only 121 bankers representing 48% of total numbers are providing collateral free loans to eligible MSEs
that deprives of the needy entrepreneurs to avail finance
from banks despite their loans are guaranteed by the Trust
(CGTMSE) which is promoted by Government of India
in collaboration with SIDBI. The indifferent attitude to
encourage lending under CGTMSE Scheme by bankers
causing poor growth of SME sector particularly those
entrepreneurs who are venturing in new projects with
innovative ideas in their mind but dont have collateral
to avail finance.
Credit Processing Mechanism
Application for availing loan from banks is the first step
which needs to be simple with guidance note for filling
the format enabling applicant to submit the application
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Table -2: Date on Loan Application Process

Measures to
streamline
application
submission
Numbers
%age
Information
Parameters
Numbers
% age**
Provide guidance note

on each column of
application to fill up it
89
30
Imparting education
awareness to SMEs
on CIBIL information
for building credit
history
176
70
Online application &

seeking appointment
date to submit all
papers at one go
86
29
Simplified credit
proposal note
to process loan
application
95
38
Help desk at branches

for initial scrutiny of
application
65
23
Usage of customized
project / TEV Study
Report available at
DIC/MSME deptt
58
23
Simplification of
existing application
form
53
18
** %age works out to total responses from 251 officers /

executives in Bank
Total
293*
100
*Responses are mutually inclusive
with all requisite papers in one go.The feedback gathered

from bank officials on the related issues is presented in
table 2 which is analyzed as (Ref.Table 2).
The existing loan application in use for SME clients
has been observed simple by 82% officers because only
18% of responses found in favor of its further simplification. One hundred & seventy five officers representing 59% of total numbers are found of the opinion to
provide guidance note on filling up an application with
provision login their requests online to the bank. Help
desk at branches for the purposes of preliminary scrutiny
of applications observed to be useful by 65 bank officials
in the survey. It is revealed during the study that 176 officers representing 70% of sample are educating SMEs on
CIBIL information for building their good credit history
which can be considered an innovative move by bankers
towards the improvement of credit access. However, the
need to simply credit proposal note has been felt by 62%
officers because the present format of credit approval
note reportedly lengthy with a scope to avoid repetition
of some information. Also the usage of customized project / TEV study report available at DIC/MSME department at district headquarters should be explored because
only 23% operating units are using the available reports. It
may be inferred that banks are asking a fresh TEV Study
www.icmai.in
or project reports from beneficiaries which at times costs

to them and also create a layer of middlemen for availing
finance from banks.
Centralized Credit Delivery Model (CCDM)
Credit being the specialized area many banks has carved
out lending functions by creating a centralized credit
delivery in different nomenclature such as SME Loan
Factory (SMELF), SME Loan Hub (SMELH), and SME
Central Processing Cell (SMECPC). Functional experience of bank officers on the model is summarized in
table-3 and analyzed as below
Table -3: Functional Experience of CCDM
Impression of Bank officials
Centralized Model is growth driver & has boosted
SME business
Less slippage to NPA as compared to business
processed at Branches
Documentation & Disbursement at branches
delays utilization of loans & at times lack of
business ownership by operating units
SME Loan Hub (SMELH) asks more papers from
branches
Discontinuation of centralized credit delivery
model
Total (Responses are mutually inclusive)
AUGUST 2014
Numbers
% age
137
50
59
21
31
11
37
13
11
275
100
63
BANKING
The model found useful because 137 officers representing 50% of total numbers have endorsed that SMELH
model assumed a growth driver & it has boosted SME
business in their command areas. Only 11 officers constituting 5% of responses are of the opinion to discontinue
the model which means 95% operating units are in favor
to continue & strengthen the centralized credit delivery
model because of many reasons such as better quality of
business processed at SMELH, lesser papers formalities at
hub as merely 13% officers informed that hubs ask more
papers from branches. In light of positive result of the
model 31 officers found of the opinion that documentation & disbursement should also be done at SMELH
instead at branches to further reduce turnaround time
(TAT) and enhance utilization of loans.
Business Processing Flow (BPF)
The credit requirement of SMEs varies in its nature as
compared to large corporate. Banks have therefore, offerings customized products & services to this sector to cater
their financial needs. The impressions on product usage
and processing flow of business at SMELH are analyzed
below based on survey results exhibited in table-4.
While ascertaining reasons of not picking up SME
products from bank officials, it was observed that 55% re-
sponses assume poor marketing & remaining 45% officers

are of the view to create awareness of available products
among frontline staff. Also it is suggested that pricing &
margin norms require to be rationalized and also cap of
loan limits in some products should be revised upward
to make the products more acceptable to the sector. The
product marketing, their publicity in market and USP
awareness among staff observed to be area of focused attention. One hundred & six officers which are 44% of
interviewees observed that applications are disposed off
within 2 weeks. It leads to the inference that credit delivery efficiency on time index (TI) requires improvement
in 56% cases. It may be further inferred that more hands
in business processing causing delay in delivered because
in majority of the cases (i.e. 61%) branch recommendation by SMELH is insisted for and only in 58% cases
information are directly asked from borrowers.
Leaning Operations
The overall functioning experience of centralized hub
found satisfactory and growth driven, however, bank officials were interviewed in the survey to seek their opinion for making CCDM more effective and useful. The
feedback gathered (table5) from ground functionaries of
hub is analyzed below
Table -4: Product Marketing & Processing Flow

Why Products not picking up?
Numbers % age
Processing at SMELH
Numbers
%age*
Poor Marketing & Publicity
79
55
Branch to recommend new business to SMELH
148
61
Need Product USP to staff for sale
65
45
Application disposed off within 2 weeks
106
44
SMELHs obtain information directly from

Borrowers
140
58
TOTAL
144
100
Suggested Innovation
95
Reduce Margin
14
15
Rate of Interest Rationalize
67
70
Cap on loan limit - Increase
14
15
*Responses gathered from 242 officers / executives working at SMELH &

numbers shown above are mutually inclusive.
Table -5: Corrective Measures Index (CMI)
64
Measures suggested by Bank Officials
Numbers
% age
Delegate higher sanctioning power to SMELH functionaries
45
12
Reduce intervening layers in recommending process i.e. obviate need of recommendation by Regional / Zonal / Circle offices if
60
proposal falls in power of Corporate office
16
Introduce Joint Appraisal by branches / SMELH with Regional / Zonal / Circle office Team to reduce time lag in sanctions
59
16
Equip SMELH with adequate skilled / groomed manpower
149
41
Attitude & Psychometric Test before posting officers in Loan section
52
15
Total (Responses are mutually inclusive)
365
100
AUGUST 2014
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Centralized hub functions on the principle of assembly line concept which means the business is generated
& canvassed by operating units and it is referred to hub
for processing and approval. Therefore, it is pre-emptive
to equip SMELH with adequate skilled & groomed
manpower and same is endorsed by 149 officers during
survey that constitute 41% of total numbers. Since elite
class of officers & executives handles the business at hub,
164 responses representing 45% of numbers found of the
opinion that higher sanctioning power to be delegated
to functionaries at hub; to obviate need of recommendation by Regional / Zonal / Circle offices if proposal falls
in power of corporate office and also to introduce joint
appraisal by hub with higher offices team to reduce time
lag in considering business. Besides leaning the functions
at hub, an important suggestion is offered by 52 officers
regarding posting of officers with positive blend of attitude at these hubs because credit is indeed an outcome of
approach & attitude.
Recommendations Innovative Approaches

Innovative thinking emerged on the basis of empirical
observations of the study are discussed in the paper which
probably would help bankers in adopting best lending
practices to deal SME business differently.
Credit governance
Finance in business is like life blood in human body and
its supply at right time with required quantum confirms
healthy & longer life of business entity. As observed in the
study that credit decisions are delayed in 39% cases; banks
should therefore, introduce a system of giving appointed date for preliminary discussion on loan applications
to reduce time lag in credit disposal. Also the applicable
method of limit assessment should be used for adequate
credit to mitigate risks of under or over financing. Large
corporate buyers of SMEs products normally delay in
settlement of dues towards their bills of goods supplied
that adversely affects business operations. Government
has though strengthened the provisions of Interest on
Delayed Payment after enactment of MSMED Act; banks
are also directed to sanction separate sub-limits within the
overall limits sanctioned to the corporate borrowers for
meeting payment obligations in respect of purchases from
SME sector. The same is also to be certified by practicing Chartered Accountants while completing their audit
of large corporate for which the professionals should be
meticulous in their certificate and must exercise all due
care. It is recommended that banks should obtain bifur-
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cation in total purchase and age of creditors from SMEs

in monthly statement of operating data (MSOD) to ensure that sub-limit reserved for SMEs is judiciously used
in compliance of procuring policy and timely payment
to SMEs. Also there is need to introduce Credit Governance Audit (CGA) to examine compliance of time
and credit assessment norms for SME finance because
non adherence of laid down rules on the subject causing high opportunity loss which remains un-captured in
loan books of the banks and it charge to the growth of
national economy.
Online tracking
Deregulated financial system provides an opportunity
to borrowers for approaching to multi lenders at a time
which of course creates competitive environment for
better credit deal but at the same time exposes lending institutes to the risks of multi financing, charging a
common securities to many lenders. Under prevailing
SME credit mechanism neither banks nor do customers have any track on the loan application for want of
online tracking system thus traditional method of credit access lacks transparency. It is therefore, suggested to
introduce a system of login the loan request by an applicant online with a provision to seek appointed date
for verifying necessary papers with loan application as
it is being done in other department such as passport
application, driving license etc. This move towards paperless loan application model will bring cost effectiveness, transparency in process system and also implement
green initiatives in banking. A few banks in India such
as Bank of Baroda has introduced Protrack in-house
system of tracking loan application at all levels from its
entry point at SME Loan Factories (the dedicated cell
of processing SME loan applications) to disposal stage.
Under this system higher offices have access to the system and can ascertain nature of information being asked
by operating units from applicants and turnaround time
is automatically worked out from the system. However,
access of such system should also be given to applicants
for tracking its disposal. The suggested online tracking
method should have a central server for all members
banks operating in India like National Payment System
(NPS) in case of payment settlement so that member
banks can ascertain status of multi lenders application by
the beneficiaries which will also prevent frauds.
Promoting SME education
Large India Inc (determined with reference to net
AUGUST 2014
65
BANKING
worth, turnover or profit) will now require constituting a Corporate Social Responsibility (CSR)
Committee to formulate and recommend to the
board a CSR policy for the company as mandated in
new Companies Act 2013. Companies must make
every endeavor to ensure that they spend a minimum amount i.e. 2% of the average net profits for
preceding 3 years on activities pursuant to their CSR
policy.
Promoting education is considered one of the approved CSR activities under the new Act. As observed
with thumps majority of 70% in present study, banks
have proactively started to spread education awareness
to their clients under Credit Information Companies
(CIC) Act for building healthy credit history of beneficiaries to enhance credit accessibility; still there is scope
of further promoting education to small entrepreneurs
on various government initiatives, banks schemes customized to SMEs, enhance usage of customized projects / TEV Study Reports available at district level
with DIC/MSME department to make bank credit
more popular & cost effective. Counseling of SMEs
is warranted not only for financial issues but also in
non-financial matters such as technology up gradation,
marketing tie up, taking benefit of procuring policy,
branding of their products etc. Training Colleges of
banks should be given target to reserve at least 15% of
their annual programs for EDPs which can be under
aegis of newly introduced Corporate Social Responsibility (CSR) provisions under Companies Act. Merely
financial support or donation of any extent cannot be
substitute of providing good education and governance as real contribution under CSR especially when
knowledge has become powerhouse in the world.
Further, Government should set up SME Universalities on the line of Central University concept to give
high status to SME education. Also banking institutes
like NIBM, IIBM, IIBF etc. should launch diploma or
certificate course on SME Lending and due weight age
for qualifying such courses by bankers need to be given in promotion, posting etc on line of JABII, CAIIB
examination.
Strengthen BPR Model
Centralized Processing Model with different nomenclatures in banks is functioning as Back Office for processing lending business. Adoption of right Business
Processing Reengineering (BPR) models helps a bank
in identification of wastage which led to more than 50
66
AUGUST 2014
percent reduction in TAT for customers more than 50

percent reduction in duplication of work. Less number
of handovers and system inputs lowers chances of error and reduce operating risks which in turn enhance
productivity and efficiency in lending operations. It
is therefore, suggested to empower central processing
hubs by delegating higher sanctioning power to their
functionaries and as far as possible need of recommending the business proposals by Regional / Zonal /
Circle offices should be dispensed with for cases which
falls in power of corporate office to avoid re-processing
of the proposals. Similarly branches should work as a
sales center to generate business for processing hubs
and thus obviate need of recommending such business
by branches while referring to SMELHs because at the
time of making reference of business to hubs branches
cant recommend unless it is appraised. Banks should
introduce SME Lending Automation Process System
(LAPS) as it is done in retail banking, to simplify existing appraisal format that ranges from 30 -60 pages.This
will avoid reproducing the information of historical
nature made available in application form or repetition of statement of facts. More emphasis in appraisal
should be given on justification & evaluation part that
normally found to be missing in sanction note. Banks
should introduce a model document of terms & conditions of sanction to maintain uniformity across the
organization.
Customer Onboarding
Product launching and its innovation are part of business growth strategy that requires research / survey,
marketing & publicity efforts, awareness among staff
& piloting feedback from beneficiaries before it put
into market. Also a detailed guidance note to fill up
loan application form should be provided by banks
with their application format with example so that
beneficiaries can fill up the loan application at their
own without engagement of middlemen. This process is prestigiously known as Customer On boarding
which from a relationship standpoint refers to the first
communications from the bank to a new customer.
Best practice banks distinguish themselves through
various means such as Tailoring product/services to
diverse SME needs; Systematic in-market tests and
continuous innovation; Coordination of marketing,
sales, and back-office activities; and a dedicated product management unit. It is suggested that banks should
introduce a system of scoring based feedback sought
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on product innovation & development capturing best

practices indexes as illustrated in the paper and minimum qualifying scores should be gained in piloting
phase before products are offered for sale. Adequate
publicity of products and training should be imparted
to front office staff with USPs of the products to make
sales happened.
Build a Pool of Professional SME Bankers
SME Banking being the specialized area of operations require skilled employee with positive attitude
of thinking who can be incentivized and trained specifically to serve SMEs. Managing SME bankers performance is therefore supported by two pillars namely
Selection & training; and Incentives. The relational
skills are needed to gain trust and be accepted as counselor & guide by the client. Soft skills training should
not be limited to Relationship Managers but should
be extended to all other client-facing staff and to ensure active participation training credit system should
be introduced for enhancing effectiveness of the programs. Further, to improve customer management by
their manpower, banks should incentivize staff to have
some parameters that should have a clear link to a value metric based on an important set of elements. The
choice of elements should reflect both short term profit impact and long-term sustainability such as revenue generation, non-performing loans levels, and customer satisfaction, observance of adherence index on
TAT, limit assessment. Best lending practices should be
awarded by way of having a provision of variable compensation say 15-20% for staff. Besides, cash incentives
the non-monetary rewards scheme may be introduced
for star performers like quota in fast-track promotion,
identification for overseas posting & training. This will
foster both sales and commitment to develop SME
sector
Conclusion
Innovation is something that cannot be introduced by
force because it is like invention to enhance efficiency of existing system. For banks in India innovating
thinking for adopting right serving models does not
remain a choice but compulsion owing to the contribution of SME sector in employment, export, manufacturing and economy growth (GDP). Empirical
observations based on the present study suggest that
competition especially through innovation require to
move banks out of their comport zones where low-
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er yields on large corporate loans is disincentive for

banks with higher concentration risks. Future banking is predicted in SME lending because of higher
NIM, sustainable growth and longer relationship with
them owing to the facts that todays SME is tomorrow
MNCs. Public Sector Banks have though started to
give special treatment to SMEs, however, study reveals
that there is scope of innovative Best Business Practices (BBP) to have leverage of large branch network as
compared to private banks and foreign banks operating in India. The recommendation that emerged from
the study will help to grab huge business opportunities
from SMEs which is a bonanza for banks as approximately 95% MSMEs are still not availing institution
credit. Innovating Thinking towards SME lending will
realize the theme faster, sustainable & more inclusive growth of 12th Five Year Plan of our country.
Let us join move of Thinking New to deliver things
differently.
References
1. Das Keshab SMEs in India Issues & Possibilities
in times of globalization. Chapter -3
2. Das S C, Invertis Journal of Management, Vol.2,No
2, 2010 pp131-143 - Is Small and Medium Sized Enterprises (SME) Financial Reporting limited in Practices : An
Exploratory Study
3. Prime Ministers High Level Task Force Report on
MSMEs, Government of India, January 2010
4. Sujata Rao & K J Soumya, Institute of Management
Studies & Research, Mumbai Strategies for Enhancing
Competitiveness of Firms, Industry Sectors & Country.
Paper presented in conference on Global Competition and
Competitiveness of Indian Corporate
5. Thorsten Beck, Asli Demirg-Kunt,Mara Soledad
Martnez Pera, Policy Research Working Paper 4785 on
Bank Financing for SMEs around the World Drivers, Obstacles, Business Models and Lending Practices; The World
Bank, Development Research Group, Finance and Private
Sector Team, November 2008
6. Yojana A publication of Ministry of Information &
Broadcasting, Government of India (GOI ) Vol. 56
January 2012
7. Yadav RamJass(Dr), Lending Approaches of Indian
Banks A Study from SME perspectives Research
Bulletin Vol. XXXVII of Institute of Cost Accountants of
India (ICAI), Kolkata, June 2013
ramjassyadav@rediffmail.com
AUGUST 2014
67
HEALTHCARE
COSTING
ACTIVITY BASED COST

MANAGEMENT WITH ERP
MODULES IN HEALTHCARE:
OPPORTUNITIES FOR CMAS
The many problems of the healthcare sector could be solved
by establishing proper systems including Activity Based Cost
Management integrated with ERP modules
CMA J.K.
Budhiraja
Director
(Professional
Development)
Accountants of
India, New Delhi
Dr. Subodh
Kesharwani
Faculty, School of
Management Studies,
Indira Gandhi National
Open University,
New Delhi
68
Ensuring equitable access for all Indian citizens,

resident in any part of the country, regardless of income
level, social status, gender, caste, or religion, to affordable, accountable, appropriate health services of assured
quality (promotive, preventive, curative, and rehabilitative) as well as public health services addressing the
wider determinants of health delivered to individuals
and populations, with the government being the guarantor and enabler, although not necessarily the only
provider, of health and related services
-High-Level Expert Group (HLEG) on Universal Health Coverage (UHC), 2010 Definition
ne of the important objectives of

Government of any Country is improvement in the standard of living
and health status of its population. For this,
every government endeavours to provide its
populations accessible, affordable and quality
healthcare. Indian Government is also making
efforts to improve the standard of living and
health status of its population and it remains
one of the important objectives in Indian planning. The five year plans had reflected long
term vision consistent with the international
aspirations of which India has also been a signatory. Indias health care system have mixed
ownership patterns and with different systems
of medicine - Allopathy, Ayurvedic, Unani, Siddha and Homoeopathy.
AUGUST 2014
The health care sector in India comprises

both of private sector and public sector. Health
care service is gradually emerging as one of
the largest service sectors in India. The private
health care sector consists of the not-for-profit and the for-profit health sectors. The notfor-profit health sector includes various health
care services provided by Non-Government
Organisations (NGOs), charitable institutions,
trusts, etc. Health care services in the for-profit
health sector are provided by various types of
practitioners and institutions in private sector.
Most of the healthcare services are provided
by the private sector. The increased spending
power of the middle class is providing growth
opportunities to healthcare providers.The public health sector also known as publicly-funded
government hospitals consist of the central government, state government, municipal & local
level bodies. Though Health is a State responsibility but the central government contributes
substantially through grants and centrally sponsored health programs/ schemes.
Publicly-funded government hospitals provide basic care only and often lack adequate
infrastructure.We may witness that the publicly
funded government hospitals are crowded and
waiting times in these hospitals is very long.
Further, the Government hospitals are often
understaffed; however the cost of care is signifi-
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Table-1: Contrasting Conditions

Contrasting conditions
Expenditure on Health as% og GDP
Government
Private
Germany
7.8
2.7
UK
7.2
1.5
USA
7.3
7.9
Japan
6.7
1.6
Russia
3.1
1.7
Brazil
3.7
4.7
South Africa
3.3
4.9
ThaiLand
3.0
1.1
China
2.0
2.3
Vietnam
2.8
4.4
India
1.4
2.8
Global medlan
5.0
3.3
Source: World Health Statistics (2008)
Hospital Beds
82
34
31
138
97
24
28
22
41
29
9
24
Nurses
Per 10,000 Population
108
103
98
41
85
65
41
15
14
10
13
28
Physicians
35
21
27
21
43
17
8
3
14
12
6
12
Table-2: Health care services

% OF GDP SPENT ON
HEALTH CARE
PER CAPITA HEALTH

EXPENDITURE
GOVT SHARE IN
HEALTH CARE
SPENDING (IN%)
HEALTH EXPENDITURE
AS % OF TOTAL
GOVERNMENT
EXPENDITURE
% OF PRIVATE
OUT-OF- POCKET
EXPENDITURE
18
$8,608
46
20
11
$3,609
83
16
$60
31
60
$278
56
12
35
$1,121
46
31
11
$4,875
76
19
12
$807
60
10
35
$80
37
60
USA
UK
INDIA
CHINA
BRAZIL
GERMANY
RUSSIA
NIGERIA
Source: Article appeared in the Forbes India magazine issue of 15 November, 2013
cantly less as compared to private hospitals. On the other

hand, the private hospitals offer a high standard of health
care and are well equipped with modern technology, the
doctors are highly qualified and often trained abroad,
though the cost of care is significantly more at these private hospitals. Furthermore, the private sector in India has a
dominant presence in medical education and training and other
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areas such as medical technology and diagnostics, pharmaceutical

manufacture and sale, hospital construction and ancillary services.
Health Care Expenditure by Government

Public healthcare expenditure by Indian government as
a percentage of gross domestic product (GDP) is 1.4 per
cent which is far lower than the global median (5 per
AUGUST 2014
69
HEALTHCARE
COSTING
cent) and compared to the healthcare spend/GDP ratio

close to 6 per cent or above for most developed western countries, even BRICS (Brazil, Russia, India, China,
South Africa) nations such as Brazil and South Africa are
far superior to India on this score. Further, healthcare sector lacks skilled human resources as compared to western
countries (Table 1).
What Governments spend on health care1

At 60%, India has one of the highest out-of-pocket
health care expenditures. Besides, the country has only
6.49 doctors per 10,000 people, lower than even Pakistan, which spends just 2.5% of its GDP on health care.
54% of US health spending is private, out of which
insurance spend accounts for 59%, one of the highest
in the world.
With 95% of its total GDP spend on health care, Cuba
has the highest government health spending globally. It
also logs 67 physicians per 10,000 people, the most in
the world.
Oil-rich Qatar spends the least on health care, 1.9% of
its GDP, next only to 1.6% of South Sudan, the youngest nation. (Table 2)
As per 12th five year plan (2012-17), main thrust areas
inter alia identified are infrastructure, health and education. 12th plan provides for inclusive agenda for health
care which includes access to health care services by all segments of population, Special services for the vulnerable and
disadvantaged groups, Training of health and rehabilitation professionals. Also, there is substantial increase in the health
sector expenditure as compared to 0.94 per cent of GDP
in tenth plan and 1.04 per cent in eleventh plan.
Problems of healthcare system in India
The Indian healthcare system is in a dilapidated state.The
cost of medical care in private hospitals rises day by day
and it seems there is no control of government on these
hospitals. Much of these costs can be attributed to the diagnosis and treatment of chronic diseases and conditions
such as diabetes, obesity, cardiovascular disease and asthma. Though healthcare costs look affordable to medical
tourists, but the health care is costly, almost prohibitive, to
the average Indian citizen. Further, the quality of healthcare in India varied from hospital to hospital in urban and
rural areas.Access to quality medical care is limited or unavailable in most of the rural areas. For a poor family with
a meagre income, the health care is almost unaffordable.
One medical procedure can cost lakhs of rupees and this
may send the family of a patient into a huge debt.
70
AUGUST 2014
Further, the population accessing private services

largely encounter with unlicensed practitioners who deliver poor quality of services. High cost of treatments in
private hospitals is due to lack of regulations and standardized cost of procedures prescribed by the Government. Therefore, there is an urgent need to control and
prescribe the standardized cost of procedures/ treatments
as good medical treatments can be afforded by those who
are in the higher income brackets.
Reasons of rising healthcare costs

1. One of the main reasons for rising healthcare costs in India is: use of latest sophisticated technology and equipment
by the doctors and hospitals. Earlier, Doctors prescribed
tests only if the patients illness was of serious nature and
also those tests were very simple. Now doctors advise a
battery of complex tests to ensure correct diagnose.
2. Medical negligence cases are now under the purview
of consumer courts and the doctors have no alternative
but to ask for the test reports before prescribing the treatments.This has also lead to the over-recommendation of
diagnostic services.
3. The opening up of the private sector in providing
healthcare has also contributed to the rise in costs. In
Private Hospitals all things are commercial be it Land,
Professional fees to Doctors, salary to Nurses, staff etc.
So while fixing the charges for treatments/ procedures
by the private hospitals, the costs are to be loaded and
the patients have to pay more for diagnostic, hospital stay,
doctor fees, nursing charges, and planned diet while seeking treatment from private hospitals.
4. As per WHO data-2012, Higher life expectancy 64/68
years (male/female) and lower infant mortality rate of 56
per 1000 live births have also played its role and more
people are seeking healthcare putting a demand on its
availability and hence pushing the cost upwards.
5. Higher purchasing power due to rising income levels
and rising literacy levels has boosted awareness on preventive and curative healthcare and, in turn, increase the
hospitalization rate.
6.The sustained expansion of healthcare insurance coverage also pushing the hospitalisation rate.
Medical tourism
Medical Tourism is a term which refers to medical treatment by a patient in a country other than the country
1
http://forbesindia.com/article/world-watch/what-govts-spend-on-healthcare/36443/1#ixzz35LZoywWk
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Medical Tourism by Country

Five of the Countries visited most often for medical treatment
Estimated annual number of medical tourists from the U.S. - 000's
70
Approximate cost relative to the U.S. - percent

60
50
40
30
20
10
0
Mexico
Thailand
Costa Rica
India
Singapore
Estimates are rough. Most patients are not tracked

Source: Deloitte, Josef Woodman (Consultant and author of Patients Without Borders
where he resides. It is also called medical travel, health

tourism or global healthcare. The medical travellers seek
many services such as elective procedures, complex specialized surgeries namely joint replacement (knee/hip),
cardiac surgery, dental surgery, cosmetic surgeries etc.
India is preferred medical tourism destination due to
low costs of treatments as compared to developed and
western countries. Further, in India availability of latest
and sophisticated medical technologies and growing
compliance on international quality standards also attract
the foreigners for medical treatments in India.
Though India is seen as a centre for cost-effective
treatments by people around the world but it is losing its
competitive edge in the medical tourism due to strict visa
regime in India. This is playing havoc and the foreigners
give a miss in favour of other Southeast Asian nations like
Thailand, Singapore and Malaysia which, although costlier, are seen as more welcoming of medical tourists.
Indian government is taking steps to address infrastructure issues, cost effectiveness and has removed visa restrictions on tourist visas to attract medical tourists in India.
Medical procedures
A medical procedure is a course of action intended to
achieve a result in the care of persons with health problems. A medical procedure with the intention of deter-
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mining, measuring or diagnosing a patient condition or

parameter is also called a medical test.
As mentioned under reasons for rising healthcare costs
that due to medical negligence cases are now under the
purview of consumer courts and the doctors in order
to correctly diagnose the diseases and due to other reasons generally prescribe numerous diagnostic tests which
are unnecessary in many cases. The tests/ procedures are
very costly in private hospitals. Many private hospitals
are owned by corporate houses and Doctors are given
internal targets in their budget in terms of number of
cardio vascular surgeries, orthopaedic surgeries, various
tests, other surgeries, ICU occupancy rate, etc. Based on
such budgets doctors are offered rates per procedure to
get them affiliated to the hospital(s). So to meet the internal targets, the doctors perform procedures on patients
without any regard for the genuine need of procedure on
particular patient.
There needs to be transparency in charges levied by
Private Hospitals. Helpless patients are forced to pay huge
amounts unnecessarily because they are fear of their life.
When many organisations such as banks, airlines etc. could display their rates/charges then why cannot the Private Hospitals
do?
The Times of India in an Article Private hospitals
will have to display treatment costs dated October
AUGUST 2014
71
HEALTHCARE
COSTING
8, 2012:
Jagdish Prasad, director general of health services
(DGHS), mentioned: "Our aim is to notify standard costs for
various medical procedures such as angioplasty, coronary bypass
surgery etc.We also plan to categorize hospitals based on quality
of services offered and develop standard treatment costs for each
category"
Dr Kameshwar Prasad, head of the clinical epidemiology unit of AIIMS mentioned: "Unwarranted procedures
and diagnostic tests put extra financial burden on the healthcare
system and cause increased morbidity and mortality. For example, a person suffering from muscular chest pain does not require
angiography. Still, many hospitals routinely put such patients
through this procedure".
Experts cite studies showing rampant use of unnecessary procedures in India. For instance, hormone replacement therapy is carried out in post-menopausal women
despite there being no evidence that it reduces cardiac
events. Similarly, antioxidant vitamins are commonly prescribed for reducing cardiovascular disease though there's
no evidence of its efficacy. The Elisa test has till recently
been widely used for diagnosis of tuberculosis. It has since
been banned due to its unreliability.
Cost Management System in hospitals

Profitability and Cost Management is necessary for
healthcare sector which is possible through better costs
management system. Most of the healthcare organizations continue to struggle with identifying the costs of
products and services provided by them. Cost control and
cost reduction are the most challenging issues faced by
the healthcare industry. Many organizations are introducing shared service centres, centralizing certain operations
either in the front or back-office in order to reduce indirect costs.
Further, pricing of healthcare services depends the way
a hospital books the expenses (direct & indirect), identify
the cost centres/Activities, cost drivers and allocations of
indirect expenses based on these cost drivers to the activities/apportionment to cost centres etc.
Challenges in costing of services of hospitals
As discussed above, the Healthcare sector or Industry
needs very sound costing system and practices integrated
with ERP in view of the following challenges:
1. Many Studies conducted in India show that Out of
Pocket expenses constitute more than 80% of total bill.
Therefore, healthcare industry should focus on ways and
means to reduce the cost of services through good cost
72
AUGUST 2014
management system and through restructuring the businesses and service lines;
2. Costs of procedures vary from hospital to hospital (rural & urban) and also patient to patient under Packages
for CGHS, Insurance companies, Corporates, private and
public;
3. Price fixation for numerous procedures/ diagnostics
tests and facilities cannot be similar in all the hospitals
due to various reasons such as competition, demand for
the product in the community, affordability, the need to
generate funds, varied cost of facilities, infrastructure cost,
professional fees to doctors (specialists/ super specialists),
salaries to nurses, technicians & staff, establishment cost
etc.
4. To provide efficient and cost effective services to patients, making available updated information at one desk
with respect to appointments, bed availability, and schedules of doctor, specialized services, costs of treatments
etc.;
5. To coup up with rising costs coupled with decreased
funding from government and other funding agencies,
and to find ways and means to reduce costs;
6. For making quick and efficient decisions to authorize,
modify or discontinue a programme or activity; and
7. For effective planning and management of inventories, as determination of the right inventory for hospital
is very difficult in view of need for customizing services
to each and every segment of customers, etc.
Activity Based Cost Management helps to identify the
non-profitable areas so that the organization takes decisions to control costs. The project control system also
helps organizations get a fair indication of the existence
and the extent of such problems.
Jo-Ann Mulligan et al (2003)2 in their study evaluate
the feasibility of economic evaluation methods for specified interventions and assessment of the intensity of the
problem to be addressed by the health authorities. The
study explores how assessment of standardized regional
unit costs for a range of health care resource inputs and
providing such information to the authorities [DCPP
(Disease Control Priorities Project)] with the ratios of
relative costs for different regions, helped the authorities
in developing and introducing unit pricing for regions
where-ever they intended to execute their plans. Such
2
Jo-Ann Mulligan et al (2003),Unit Costs of Health Care Inputs in Low
and Middle Income Regions, Working paper funded by Disease Control
Priorities Project (DCPP), London School of Hygiene and Tropical
Medicine and World Health Organisation
www.icmai.in
planned execution lead to realization of the intended objectives ensuring deployment of right resources and have
effective control over the cost.
Activity-based Cost Management System

As mentioned above that the Healthcare/hospitals need
very sound system of cost management due to various
reasons indicated thereat. In Traditional Costing System
we consider total costs for valuation of products or services and overhead costs, which constitute major portion
in total cost, are allocated on these products/ services arbitrarily on the basis of volumetric measures such as the
Source: http://maaw.info/Chapter2.htm
labour hours or machine hours, space, watts etc. So allocation of such costs to products/services in an arbitrary
manner distorts the final cost of products or services.

The hospitals which are already struggling to reduce
the cost of services may not be able to value their services effectively. Activity Based Costing (ABC) solves this
problem by tracing major portion of overheads into direct costs through cost drivers.
In Activity-based costing (ABC), we identify activities and assign the cost of each activity with resources to all products and services which benefit from the
activity according to their actual consumption. Some of
the examples of activities are material ordering, material
handling, quality testing, machines set-ups, and customer
support service etc.
In ABC maximum indirect cost (overheads) are converted into direct costs as compared to traditional costing
system. ABC replaced cost allocations with substantially
more realistic and consequently much greater accuracy.
As mentioned by Gary Cokins in his book ActivityBased Cost Management Making it Work that Activity-based costing (ABC) is of that sea change. ABC is not
a replacement for the traditional general ledger accounting. Rather, it is a translator or overlays, as in Figure 1, that
lies between the cost accumulator or the expenditure account balances in the general ledger and end-users who
apply cost data in decision making. ABC converts inert
cost data into relevant information so that the users can
take action.
In ABC identification of activities are done and those activities are eliminated which are not contributing value to the prod-
An ABC/ ABM System serves as a translator, not replacement, for accounting system.
It supports decision makers
Data
Information
Data +
Transactions
General
Ledger
(Account
Balances)
A
B
C/
A
B
M
Accumulator
Reassign Costs
Strategies
Operations
Decision Maker
Source: from Gary Cokins: Activity Based Cost Management Making it Work (2007)
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AUGUST 2014
73
HEALTHCARE
COSTING
ucts and services that are unprofitable and lower the prices of
those that are overpriced.
Activity Based Cost Management (ABM) uses
the data provided by Activity Based Costing for various
analyses to achieve continuous improvement. The use of
ABC tool for managing costs at activity level is known
as ABM. ABM is a natural extension of ABC. ABM allows managers to examine non-value-added activities
and make rational decisions to eliminate them. ABM
manages activities rather than resources. ABM supports
business excellence by providing information to facilitate
long-term strategic decisions about such things as product mix, process, line of business, product design, capital
investments, pricing etc. It models business processes to
determine cost, profitability and drivers. It allows product
designers to understand the impact of different designs
on cost and flexibility and then to modify their designs
accordingly. Further, ABM focuses on management of
activities as the route to improving the value received by
the customers and the profit achieved by providing this
value and new insights on performance management.
How ABC work?

Resources costs are assigned through activities;
Activities are identified for both production and services;
Cost drivers for each of the activity are determined;
Cost is accumulated for each activity according to the
cost drivers;
Assignment of cost of activities to products and services on the basis of cost drivers.
Activity, Resource and Cost Drivers
For activity-based costing, several terms are used viz. activity, resource, resource consumption cost driver, and activity consumption cost driver.
An activity is a specific task or action of work done.
Activities comprises of all operational activities including management and support functions.
A resource is an economic element needed or consumed in processing products or performing activities
such as salaries and supplies.The resources can be taken
from the General Ledger or Chart of Accounts.
A cost driver is the underlying factor that creates or
drives the cost relating to that activity. For example,
the cost of the activity of bank tellers can be ascribed
to each product by measuring how long each product's
transactions (cost driver) takes at the counter and then
by measuring the number of each type of transactions.
74
AUGUST 2014
For the activity of running machinery, the driver is

likely to be machine operating hours. A cost driver is
either a resource consumption cost driver or an activity
consumption cost driver:

Resource consumption cost drivers measure the
amount of resources consumed by an activity, such as
the number of items in a purchase or sales order or
labour hours or machine hours etc.

Activity consumption cost drivers measure the
amount of activity performed for an object, such
as the number of batches used to manufacture a
product.
Time-Driven Activity Based Costing (TDABC)

The Activity Based Costing is generally used in Manufacturing Industry. As Hospital industry is a Service Industry, it requires to ascertain time spent on each activity
or transaction and ascertain their multiple cost drivers.
Kaplan and Anderson developed a Time-Driven Activity Based
Costing (TDABC) which requires only two parameters viz.
(i) unit cost of supplying capacity and (ii) the time required to
perform a transaction or an activity.
Designing a healthcare Costing System
In healthcare industry, the costs are mainly categorized
into Hospital Costs, Physician Costs, Indirect Costs/
Overhead Costs. The patients are billed for each activities/procedures performed on him/her. It is therefore
imperative to identify the cost of each activity/ procedure to have efficient cost accounting and profitability
analysis systems in a hospital.TDABC approach identifies
the different departments, their costs and their practical
capacity.
For healthcare operations, the practical capacity is expressed as the amount of time that employees can work,
without idle time. Often practical capacity is estimated as
a percentage, say 80% or 85%, of theoretical capacity3. By
dividing the total cost by the practical capacity, the cost
per time unit is calculated. Costs then are assigned to the
cost object by multiplying the cost per time unit by the
time needed to perform the activity.
Cost of activities is to be segregated in Direct Cost and
Indirect Costs.
(a) Direct Costs: Direct cost is that cost which can be
3
Kaplan R, Anderson S. Time-driven activity-based costing. Harvard
Business Review 2004;82:1318 and Kaplan R, Anderson S. The
innovation of time-driven activity-based costing. Journal of Cost
Management 2007;21(2):515.
www.icmai.in
directly related to the activity of a patient such as Inpatient nursing (Medical/Surgical, Intensive Care Units,
Operating Rooms), diagnostic & therapeutic, Laboratory, Diagnostic Imaging, Pharmacy, Physiotherapy, specific
equipment and specialists fees etc.
(b) Indirect Cost: Indirect Cost is the total support
Patient Cost Centre:
General Medicine
Dermatology
Pediatrics
TB & Chest
Surgery
Physiatrist
Orthopedics
ENT
Gynecology
Physiotherapy
Ophthalmic
Dentistry etc..
ICU/ICCU/PICU/NICU
Facility Cost Centres
Room Facility/Ward
Blood Bank
Lab
Radiology
Medicine/ Pharmacy
Laundry
Dietics and Canteen Facility
Gym and Club
Anesthesia
DG and Power etc.
Support Cost Centres

Manpower and HR
Purchase & Stores
Accounts & Finance
Central Sterile Service Maintenance
General Administration
Security
IT
Compliances and Legal etc.
Housekeeping
cost of the nursing and medical departments. These are

the cost centres which provide support services to the
nursing and medical cost centres. Support Services are:
Administration - Corporate, Finance, Human Resources
including Personnel & Security and Depreciation.
These costs are apportioned to the direct cost centres
based on appropriate cost allocation drivers.
Emergency Department for endoscopy surgery is identified as cost object.

Step 2: Identify and define activities and activity
cost pools: next step is to identify direct costs related to
patients:
(i) Cost of medicines provided to a patient
(ii) Fee for surgeon/ anesthesiologist
(iii) Cost of medicines used in surgery
(iv) Cost of Lab/Diagnostic Tests
(v)
Specific equipment used in procedure, which are
charged directly to patient. There are some other
equipment such as high powered lights, surgery table
costs etc. which are not directly chargeable but are
allocated based on utilization.
Step 3: Wherever possible, directly trace costs to
activities and cost objects: The following costs are
directly traceable to patient:
(i) Costs towards Patient Admission (Check in and discharge)
(ii) Clinical Labs
(iii) Surgery
(iv) Patient Care after surgery
Step 4: Identify the costs associated with each activity pools: The cost associated with each activity is
consolidated in Activity Pools which are relatable to cost
object.
(i) Patient Admission Cost Pool: Cost of staff associated with admission activity, cost of stationery used for
patient admission, Rent/ depreciation of space occupied
by Admission Staff (Allocated proportionately), Depreciation of computer/ printers/scanner and other devices
used by admission staff, Cost of telephone calls etc.
(ii) Emergency Room Cost Pool: Cost of staff associated with endoscopy activity such as checking of patients
blood pressure, temperature, weight, taking blood sample,
Based on above, the following costs can be identified with cost
pools:
Activity Pools
Associated Indirect Cost (Rs.)
Cost to serve a patient for emergency surgery

As mentioned above there are many cost centres but a
modal based on activity based costing for emergency surgery4 is presented below:
Step 1: Identify cost objects: For present model based on
activity based costing, cost per patient who has come to
Patient Admission
10,00,000
Diagnostics
12,50,000
Surgery
62,50,000
Patient Care after Surgery
3,75,000
Patient Check in and Discharge
62,500
Adapted from http://www.naggesh.com/2014/04/16/activity-basedmanagement-in-healthcare-cost-to-server-a-patient/
Total
89,37,500
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AUGUST 2014
75
HEALTHCARE
COSTING
depreciation of medical equipment required for endoscopy, rent/depreciation of the space occupied (allocated
proportionately), accessories used for surgery activities,
printing & stationery including depreciation of computer/ printers etc. used for generating reports for patient.
(iii) Other Patient Care Cost: Other costs associated
with surgery, patient care after surgery, patient check in
and discharge are to be identified and need to be grouped
into respective activity cost pools.
Step 5: Identify the costs drivers for each activity
pools: The following will be cost drivers for the activities identified above:
Step 6: Identify rate per unit of cost driver: To
Activities
Patient Admission
Diagnostics
Surgery
Patient check in and Discharge
ence in the result obtained if the indirect cost and quantity of cost
drivers are taken on annual basis.
Step 7: Compute the indirect costs allocated to a
patient
The activity rates as calculated in the step 6 will be used
to assign the indirect costs to cost object. Let us assume,
a patient consumes 90 minutes for diagnostics, day for
surgery, and 3- days for patient care after surgery. Based
Step 8
Particulars
Costs (Rs.)
Direct Costs per patient
Cost Drivers
No. of Patient Admitted
Direct Labour Time (Hours)
Patient/ days
Patient/ days
No. of Patient checked in and
Discharged
(i)
Cost of medicines (from step 2)
5,000.00
(ii)
Fees for Surgeon/consultant &

anaesthesiologist (from step 2)
15,000.00
(iii)
Cost of Lab/Diagnostic Tests (from

step 2)
7,500.00
(iv)
Specific equipment used in

procedure, which are charged
directly to patient (from step 2)
9,000.00
Total Direct Cost (A)
36,500.00
know the cost of each activity, the costs as identified

above (Step 4) are to be calculated per unit based on cost
drivers identified as per step 5 above.
Note: # The Associated indirect cost and quantity of cost drivers are taken for a month. However, there shall not be any differ-
Total allocated indirect cost as per

21,100.00
step 7 (B)
Total cost per patient (A+B)
57,600.00
Step 6
Activity Pools (A)
Associated Indirect
Cost# (Rs.) (B)
Cost Drivers (C)
Quantity of Cost Drivers

(D)
Rate per Unit of Cost

Driver (BD)
Patient Admission
10,00,000
No. of Patient Admitted
10,000 Patients
Rs. 100 Patient
Diagnostics
12,50,000
Direct Labour Time (Hours)
500 hours
Rs. 2500hour
Surgery
62,50,000
Patient/ days
250 patient- days
Rs. 25000 patient days
3,75,000
Patient/ days
250 patient- days
Rs. 1,500 patient days
Patient Check in and

Discharge
62,500
No. of Patient checked in

and Discharged
250 patient- days
Total
89,37,500
Step 7
Activity Pools (A)
Quantity of Cost Drivers (D)
Rate per Unit of Cost Driver (BD)
Allocated Cost Rs. (BxC)
Patient Admission
1 Patient
Rs. 100 Patient
100.00
Diagnostics
90 minutes
Rs. 2500hour
3,750.00
Surgery
patient- days
12,500.00
3 patient- days
Rs. 1,500 patient days
4,500.00
Patient Check in and Discharge
1 patient
250.00
Total
76
21,100.00
AUGUST 2014
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on these assumptions, total indirect costs allocated to one

patient will be as follows:
Step 8: Compute the total cost per patient: To
compute the total cost per patient, we have to take direct
costs associated with the patient and allocated indirect
cost as arrived at above as follows:
ERP modules used in hospitals

Hospitals need a very good ERP module to address multi-discipline angles related to hospital management and
services, doctors, patients etc. Speed and efficiency with
quality delivery is the moto of each and every hospital.
The hospital should select such an ERP module which
may improve human resource management that may lead
to maximized value realization of the investment made
by it and reduces human requirement and intervention
for different hospital activities. The hospital management
system integrates different systems used in hospitals such
as financial management, inventory management and
other important systems. The integration of all systems
leads to availability of updated information at one desk.
Information about appointments, bed availability, and
schedules of doctor, specialized services, and treatments
is easily available to the person sitting in the front desk.
There are many software companies who design the
Hospital Management Information System integrated with
Activity Based Costing with a view to reduce operational costs of serving patients by removing operational
inefficiencies and improving the quality of health care.
Hospital Management Information System also reduces
the workload of hospital employees and improves their
efficiency.
Further, if majority of the clinical processes are automated then it would make available to hospital staff more
time to devote in providing quality patient care. It would
also streamline personnel management of nurses, clinical
specialists, physicians and other health care professionals to provide highest quality care, 24x7. ERP also gives
complete in-sight of project related data in a structured
manner. The ERP system integrates projects with procurement, fixed assets and stocks. Further, the ERP system plays an important role in creating centralized storage of data, and its easy access helps the management to
take timely informed decisions.
There are many integrated ERP modules5 relating to
healthcare industry which are available in the market
BigSun Hospital Management software
www.icmai.in
such as:
1. Reception/Cashier: This module may have several
sub-modules enabling staff to provide the information
relating to Appointments (showing dash board for information relating to Today appointment, scheduling,
re-scheduling appointments, history of earlier appointments), Doctor Directory, Cash Desk of collection of
payments, Reports, Billing, Refund etc.
2. OPD Consulting: This module may have several sub-modules covering the services such as: Appointments, Patient History, Doctor Corner, Prescription,
Investigation, Follow-up appointments, Symptoms, Diagnosis Tracking, Last Visit Details etc.
3. IPD Consulting: This module may have several
sub-modules covering the services such as: Cost Estimation (initial estimate prepared for patient depending
on ward/surgery chosen) Admission Request, Transfer
Details (transfer from ICU/shifting across wards can be
done), Doctor Notes (updation of status of patient during
every doctor visit), Nursing Notes (updation of status of
patient by nurses tracking different patient parameters),
Drug Request (indenting of drugs by nurses patient-wise
as per advice by doctor), Discharge Summary, Refund
Management, Scroll management (daily cash/credit
card/ corporate/ insurance/TPA tracking).
4. Wards: This module may have several sub-modules
covering the services such as:Ward Allocation,Ward Shifting, Ward Master, Occupancy Dashboard, Consent Form,
Record Management, Label Generation (automated label
generation for patient as well as patient files), Inpatient
Registration, Payee/Company/Insurance (input details of
self-paying/corporate/ insurance/TPA/package).
5. Operation Theater (OT): This module may have several sub-modules covering the services such as: OT Allocation (booking of OT on particular date/time with OT
team), OT Master (different type of surgeries with class/
speciality/grade/ward/price master), Surgery Master,
Surgery Class Type (different types of class to be included), Doctor/Anaesthetist Booking, OT Status (utilisation
of OT daily/weekly/monthly/ annual), OT Tool Details
(booking of OT tools for particular operation), OT Reports, OT Inventory Management (charging of consumables/special services during an operations).
6. Nursing: This module may have several sub-modules
covering the services such as: Patient Record Updation
(updation of status of patient parameters), Physical Examination Module, Drug Indent, Drug Returns, Drug
Transfer (drug transferred across wards/location depending on requirement), Drug Re-Order (automatic reorder
AUGUST 2014
77
HEALTHCARE
COSTING
depending on nursing indent requirement), Investigation

Management, Procedure Management, and Diagnostics
Management.
7. Billing: This module may have several sub-modules
covering the services such as: Payment Module (tracking
of cash/credit card/corporate credit/TPA credit), Patient
Billing Details, Automatic Room Charges, Provision for
Pre-Billing, Posting of Charges for Services, Insurance
Module/TPA (interlinking of corporate with respective insurance/TPA), Maker Checker Module (provision
for checking of bills generated by cashier), Billing Scroll
Summary (details of daily/weekly/monthly collections for
cash/credit card), and Advance/Refund Management.
8. Pharmacy: This module may have several sub-modules covering the services such as: Billing (billing for both
OPD and IPD), Drug Inventory, Supplier Information
(tracking of vendor information, delivery, turn around
time), Drug Issue to patient, Manage Expired Items,
Goods Receipt & Stock, Minimum Stock Levels, Reorder Quantity, and Reorder Quantity.
9. Laboratory Information System: This module may
have several sub-modules covering the services such as:
Equipment Integration, Sample Management, Electronic Data Exchange, Patient Data Management, Patient
Data Analysis, Report Generation, Barcode Generation,
Equipment Maintenance, and Quality Insurance.
10. Investigation: This module may have several
sub-modules covering the services such as: Investigation
Master, Package Master, Respective Doctor Master, Investigation Service Billing, Investigation Dashboard, Investigation Reference, Sample Collection, and Investigation Reporting.
11. Electronic Medical Records (EMR): This module
may have several sub-modules covering the services such
as: Patient Information Retrieval, Instant Information
(data available for both online and offline instantly),Analysis (analysis of various record of similar diseases available to doctor), Evaluation (tracking of different types of
treatment on various diseases), Accuracy of Information,
Treatment Analysis, Drug Taken, History Availability, and
Ancillary Services.
12. Administration: This module may have several
sub-modules covering the services such as: OPD Master,
IPD Master, Investigation Master, Package Master, Doctor Master, User Master, Announcement Master (ticker
running continuously giving announcements, any major
changes), OT Master, and Ward Master.
13. Insurance: This module may have several sub-modules
covering the services such as: Initial Estimate, Insurance
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AUGUST 2014
Master,TPA Master, Package Master, Outstanding Report

(tracking of outstanding of corporate/ insurance/TPA),
Advance/Refund Management, Actual Cost, and Billing.
14. Dietician: This module may have several sub-modules covering the services such as: Diet Management,
BMI (immediate calculation of body mass index as per
patient), Calorie Management, Food Ordering, Raw
Material Indenting, Diet Sheet, Quality Check, Cost of
Services, and Billing of Special Services.
15. Engineering Services: This module may have several
sub-modules covering the services such as: Asset Management, AMC Services, Spares Management, Contract
Labour Management,Vendor Management, Stores, Consumable Tracking, Scrap Management, and Repair &
Maintenance.
Maintenance of Cost Records and Cost Audit by

Healthcare Industry
Considering the importance of Healthcare Sector in India, the Government of India for the first time through
Companies Act 2013 vide section 148 included the Services and Service Industry for maintenance of cost records and conduct of cost audit by such class of companies as may be prescribed through rules.
Ministry of Corporate Affairs, Government of India
has vide GSR 425(E) dated 30th June 2014 notified
Companies (Cost Records and Audit) Rules 2014
defining & prescribing class of companies which are
required to maintain cost records and conduct cost audit. These rules include Healthcare Industry also for the
purpose of maintenance of cost records and cost audit
by those healthcare companies who meet the respective
threshold limit prescribed thereunder. In view of importance of healthcare sector, these rules include healthcare
industry at two places i.e. under two sub-rules, extract of
which are given below:
Rule 3C(a)(x)
Companies engaged in health services viz. functioning as or
running hospitals, diagnostic centres, clinical centres or test laboratories
Rule 3D
Companies (including foreign companies other than those having only liaison offices) engaged in the production, import and
supply or trading of following medical devices, namely:(a): (i) Cardiac Stents; (ii) Drug Eluting Stents; (iii) Catheters; (iv) Intra Ocular Lenses;(v) Bone Cements; (vi) Heart
Valves; (vii) Orthopaedic Implants; (viii) Internal Prosthetic
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Replacements; (ix) Scalp Vein Set; (x) Deep Brain Stimulator; (xi)Ventricular peripheral Shud; (xii) Spinal Implants;
(xiii) Automatic Impalpable Cardiac Deflobillator; (xiv)
Pacemaker (temporary and permanent); (xv) patent ductus
arteriosus, atrial septal defect and ventricular septal defect closure device; (xvi) Cardiac Re-synchronize Therapy
; (xvii) Urethra Spinicture Devices; (xviii) Sling male or
female; (xix) Prostate occlusion device; and (xx) Urethral
Stents.
Opportunities for CMAs in healthcare sector

There are abundant of opportunities available in healthcare industry for CMAs, gist of which is given below:
(i) As mentioned above, Government of India has created new opportunity for CMAs in healthcare industry
and the threshold limits prescribed under Rule 3(C)(a)
(x) and Rule 3(D)(a) for maintenance of cost records and
cost audit are very low. Even trading and supply of medical devices have been covered under Rule 3(D)(a). In
view of these rules the CMAs may provide the following
services to healthcare sector:
(a) Maintenance of Cost Records as per companies
(cost records and audit) rules 2014;
(b) Cost Accountants can be appointed as Cost auditors by the healthcare companies who meet the threshold
limits under Rule 3C(a)(x) and Rule 3(D) aforesaid;
(c) Designing of Costing Accounting System keeping in view requirement of companies (cost records and
audit) rules 2014, Generally Accepted Cost Accounting
Principles (GACAP), Cost Accounting Standards (CAS)
and Cost Auditing Assurance Standards (CAAS);
(d) Designing of Integrated Costing Accounting and
ERP System based on Activity Based Cost Management
as per the steps suggested in this article above under Designing Healthcare Costing System.
(ii) Fixation of charges for various services provided by
the healthcare industry using latest costing concepts and
methodologies e.g. opportunity cost, joint costing principles and based amongst other on Total Costing Method,
Activity Based Costing Method, and Marginal Costing
Method etc.;
(iii) Managing cash activities, billing, finances, Finance
& Accounts activities, Budgeting, Budgetary Control, Inventory Control, and Finance Management and Costing
Systems etc.;
(iv) Designing standalone Inventory control management system;
(v) As per estimate India requires 2000 medical colleges with 500 bedded hospitals immediately to meet with
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the requirement of the country. This also present enormous opportunities to CMAs who may provide their
expert services in the following areas:
(a) Preparation of Project Reports following the
norms prescribed under Establishment of Medical College Regulations, 1999 by Medical Council of India for
establishing a Medical College & Hospitals;
(b) Project appraisal & evaluation and project monitoring being a member of Project Implementation Team;
(c) Help the management in project financing through
Financial Institutions;
(d) Tendering, evaluation of tenders of civil & electrical and other works, Procurement of equipment, furniture & fixture etc. and helping management in award of
various works;
(e) Monitoring day to day project activities through
MIS system, Reports may comprise of the Comparative Statements for Projected Costs of Activities/ Actual Costs, cost over-runs, payment of Running Account
(RA) Bills, evaluation of extra and substituted items, escalation & other claims etc.
(f) After the hospital and college established, designing
a costing systems for hospital as suggested above and for
medical college, helping in establishing a costing system
which may enable it to fix the fees for various courses
offered by it, examination fee, hostel charges and charges
for various services rendered by medical college.
(vi) The Companies Act 2013 contains several opportunities for CMAs apart from maintenance of cost records under section 148(1), conduct of cost audit under
section 148(2) and internal audit under section 138. Accordingly, CMAs can be appointed internal auditor in the
healthcare sector.
(vii) In view of provision of internal audit in the Companies Act 2013, the Ministry of Health & Family Welfare
vide its letter dated 19.5.2014 informed the Institute that
the National Health Mission (NHM) will empanel the
cost accountants also for internal audit & concurrent audit.
(viii) In addition to appointment as internal auditor ibid,
CMAs may design the Internal Control and Internal Audit System of the healthcare Industry and also prepare
Internal Audit Manual for them.
(ix) Reporting of compliance of laws to various governmental agencies etc.
Conclusion
From the above discussion, it may be observed that the
healthcare sector is facing many problems which could be
solved by establishing proper systems including Activity
AUGUST 2014
79
HEALTHCARE
COSTING
Based Cost Management integrated with ERP modules.

Costing System based on Time Driven Activity Based
Cost Management will be most appropriate for hospitals,
which may enable them to fix the charges for various services being provided by them. ABC combined with ERP
will provide a hospital an edge over the other hospitals that
are not following either ABC or ERP systems.The healthcare companies would be more responsive to their patients
in providing cost efficient quality services since they would
be in a position to know the accurate cost of their services/
procedures etc.
References:
1. http://en.wikipedia.org/wiki/Health_in_India
2. http://en.wikipedia.org/wiki/Medical_procedure
3. http://www.bigsuntoday.com/HealthCare/Laboratory-Information-System-Software.aspx
4. http://www.indexmundi.com/India/infant_mortality_
rate.html
5. http://www.thehindu.com/business/where-the-outlookis-healthy/article3589038.ece
6. http://www.news-medical.net/health/Medical-Tourism-What-is-Medical-Tourism.aspx
7. Time-driven activity-based costing in an outpatient clinic

environment: Development, relevance and managerial impact by Nathalie Demeerec, Krist of Stouthuysena,Filip
Roodhooft
8. Article on Costing and Auditing in Healthcare Sector by
CMA Manoj Kulshrestha, NIRC News June 2014
9. http://www.medicinenet.com/procedures_and_tests/article.htm
10. http://timesofindia.indiatimes.com/india/Privatehospitals-will-have-to-display-treatment-costs/articleshow/16718459.cms
11. Indrajit, H., Medical tourism: its potential impact on
the health workforce and health systems in India, Published by Oxford University Press in association with The
London School of Hygiene and Tropical Medicine, http://
heapol.oxfordjournals.org/
12. Bristow, R.,Sustainable medical tourism in Costa Rica,
TOURISM REVIEW,VOL. 66 NO. 1/2 2011
13. Mainil, T.,The discourse of medical tourism in the media,TOURISM REVIEW,VOL. 66 NO. 1/2 2011,
pp. 31-44
pd.budhiraja@icmai.in
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AUGUST 2014
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BUDGET
ANALYSIS
UNION BUDGET AND THE

EXPENDITURE MANAGEMENT
COMMISSION:
IMPLICATIONS FOR COST
MANAGEMENT
The new expenditure management policy of the
government should at least open up more prospects
for the professional in this area very soon
T
Dr. Saibal Kar
Centre for Studies

in Social Sciences,
Calcutta and
Institute for the
Study of Labor,
Bonn, Germany
www.icmai.in
HE Union Budget for the fiscal year

2014-15 was presented on 10th of
July, roughly one and half months after the Bharatiya Janata Party came to power
at the center with an overwhelming political
majority. The pre-budget discussions on what
might be the most compelling decisions to
be taken by Mr. Arun Jaitley, currently both
the Finance and the Defense Ministers of the
union government, heated up the pre-budget
market. There were both expectations and
apprehensions in view of the general right
wing orientation of the new government. It
was certainly forecast that the defense budget
will go up substantially.We will shortly review
another major aspect of the rather long and
ceremonious proceedings that usually accompany the presentation of the budget in the
Indian parliament, often criticized for generating more sound that lights for the future.
Albeit it was hardly a foregone conclusion,

but one would have thought that the current
government which commands the support of
a large number of parliamentarians from the
same party should behave differently in terms
of designing the union budget as compared to
the previous no-policy-decision government
and make a strong statement on the direction
that the economy would take. While it did
not frustrate completely, but the budgetary
provisions were also not of the types that an
economist would like to call the first-best. It
should however be acknowledged at the very
outset that the government is barely in its
infancy and needs time to consolidate both
power and thoughts about how to run 'minimum government, maximum governance'.
Still, the budget showed that the homework
(that technically begins on the day the election campaign is officially launched) for creat-
AUGUST 2014
81
BUDGET
ANALYSIS
ing a stronger economy has been poor. It was rich on the

usual populist gimmicks, however. The specialists pointed out that while the budget speech itself was imprecise
and seemed to hold back the justifications for allocations
announced therein, the document is not particularly bad
if one focuses on the economic and social opportunities
it may create in the short and medium-run. The union
budget, admittedly, should be all about the smooth passage it can curve out for the economy.
And, of course, the budget is also about directions to
a sensible fiscal management. At the very basic level the
fiscal deficit of the government is the difference between
revenue and expenditures. The national and state revenues come from the tax and non-tax sources that the
government reviews in every budget and makes admissible changes depending upon the temporal requirements
at the economy-wide level. For example, in the case of
fiscal deficits, the government is faced with two options:
finance the deficit by printing money or borrow from
the market by issuing bonds.The fiscal deficit is estimable
upfront, because after making allowances for all possible
taxes and sources of revenue, the government may still
find that its expenditures are higher than the revenue
ex ante. Now, this may or may not be true when the
revenues and expenditures are finally realized in a 'normal' year. By a normal year, one would mean that there
was no major economic and political shock in that year,
whether arising from oil price or a conflict with one's
neighbor, or even a volcanic eruption. In fact, the volcanic eruption in Iceland was almost immediately followed
by the world-wide financial crisis beginning in the same
country. Why would an average Icelander borrow so
much and fail to payback is however, beyond the scope
of this article. Nevertheless, it may be noted that the huge
private loan debacle facing banks in Iceland turned itself into a massive snowball (well, if it begins in Iceland,
snowballs are the least one expects) faltering on real estate
and other debts globally, via deeply interlinked banking
operations. The governments all over had to eventually
address the crisis by fiscal intervention and via demand
resurgence in respective countries. The world had never
seen the application of Keynesian policies more pervasively practiced the world over. After all, this has got to do
with how such policies affect the government exchequer.The time series movements of the budget deficit has
to take these special features into account, whereby, the
deficit is analyzed on the basis of temporary and permanent shocks facing the country. In addition, the modern
day econometrics allows for measurements of how even
82
AUGUST 2014
the temporary shocks may have permanent components,

wherein the path of a variable is permanently altered in
a statistically significant manner. For example, the subprime crisis briefly discussed above is expected to leave a
palpable and restraining impact on the prudential norms
practiced by the individual banks under the guidance and
rules designed by the central banks in all countries. This
may affect the trend line that so far characterized the flow
of bank credits in various countries. One would consequently observe a structural shift in both the intercept
and the slope of the credit supply function.
In order to finance any such fiscal deficit as discussed
above, or the normal negative budget imbalance which
many countries regularly face, the government is forced
to either borrow or print money. There is a third option of linking the domestic budget deficit with the
situation in the balance of payments. The government
may squeeze in (withdraw from the market) or sterilize
(meaning convert foreign currency to domestic currency
and supply in the domestic market) the foreign exchange
reserve depending on whether the balance of payments
is favorable or unfavorable and whether, the inflationary
pressure needs to be addressed. Among the first two options, the printing of money cannot be a choice in times
of high inflationary pressure (the food price inflation in
India is almost in the two-digits for last several months)
because it would mean more money available to people
without adequate support of the commodity or service
base. It is easy to understand that there is usual time lag
for production to catch up with demand generated in the
market. Meanwhile, there will be too much money chasing too few goods exacerbating the inflationary pressure
on the economy, unless the country allows freer imports
to cater to the short-run imbalance. This may have to
depend on the conditions of the balance of payments.
For the same reason, sterilizing the foreign exchange (India had been facing a high reserve of foreign exchange
for quite some time during the last five years until the
flow seized in the middle of 2012) is not a viable option
because it would again allow more money to bid up the
price of limited supply of goods in the short run. If printing money for financing the budget deficit is then ruled
out, the government is left with borrowing money from
the people, by issue of something like Infra-Bonds. Note
that, the issue of government bonds is expected to have
just the opposite impact on the inflationary pressure for
two reasons. But, this may not come without a cost it
may put certain other projects in jeopardy. Let me elaborate on this briefly before we finally discuss the scope
www.icmai.in
THE BUDGET SHOWED THAT THE HOMEWORK

FOR CREATING A STRONGER ECONOMY HAS BEEN
POOR. IT WAS RICH ON THE USUAL POPULIST
GIMMICKS, HOWEVER
of expenditure controls and expenditure management in

the government and the role that the cost accountants
and managers can play in this regard.
The issue of bonds and the lure of good returns over
time backed by the government guarantee might attract a
large number of investors.This should draw excess money out of the hands of people and lower the inflationary
pressure on the economy.Two things follow. One, the investors would not only invest in the economy, but also
reduce consumption expenditure if the well known Ricardian Equivalence is true for the investors in this economy. In its simplest possible form, Ricardian Equivalence
implies that higher investments and the expectation of
higher future income do not necessarily influence individuals to increase present consumption. Why is that?
The main reason is that the individuals are aware of the
fact that when the government borrows to cover fiscal
deficit and for initiating development projects like infrastructure, the mechanism is often not a one-time affair
because there is almost no certainty that the government
will get positive returns from that in foreseeable future.
The bonds issued by the present government may have
to be retired by future governments only by borrowing
further from the market or by raising the level of taxes
imposed on individual incomes. Now, it is quite possible
that individuals may not care about leaving bequests for
their descendants and might not be interested in how
they balance the earnings from the principal and interest
accrued on the bond vis--vis the higher interest rate to
be surely levied by the government that retires the bond.
In that case, the investors of today will also spend a lot in
the current period and may finally leave a negative bequest for the descendants.The bequest would be negative
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because the government might impose a higher tax rate

that would render the net return from bonds (principal
plus interest differential from other options) negative.
Country-level experiences suggest that the Ricardian
Equivalence is found to be true for some countries in the
world and not substantiated in some other. For example,
Japanese investors are known to display this phenomenon while those in the US do not. Overall, the Ricardian
Equivalence suggests that the individuals save exactly the
same amount of money in the current period, compared
to what they expect to get back when the bond is retired.
This is the principle behind the said phenomenon, and
like most other theoretical and statistical findings, is also
not infallible. So, when the principle is in work the inflationary pressure on the economy is likely to go down
not only by the amount of investments in public bonds,
but also by the forced savings it brings forth. Does it solve
the problem unambiguously? The answer is, no. The increased 'public' enthusiasm to draw in funds from the
hands of the individuals may make them choose between
public bonds and private alternatives. This may begin an
interest war. Consequently, higher interests dissuade investments because the payback is also costlier than ever.
Thus, the public investments may crowd out private investments as one major outcome.This can lower production in the economy and raise the price of many other
goods. The government may not be fazed by the higher interest rates because they always have the ability to
impose higher taxes (of course, depending upon the tax
elasticity of consumption) directly or indirectly, and even
improve upon the tax base compared to previous years.
The present budget did not do any such thing, although
it was expected that the burden of taxes should get more
AUGUST 2014
83
BUDGET
ANALYSIS
RECENT STUDIES FOR LARGE

DEMOCRACIES SHOWED
THAT BIGGER THE SIZE OF THE
GOVERNMENT, THE SMALLER
THE AMOUNT IT CAN SPEND
ON DEVELOPMENT PROJECTS.
LARGER GOVERNMENTS SPEND
A SUBSTANTIAL AMOUNT OF THE
REVENUE TO MAINTAIN THOSE
IN THE GOVERNMENT AND FOR
RELATED EXPENDITURES
evenly spread in this country and relieve the overwhelming pressure imposed on the tax-paying middle income
groups.
All these possibilities discussed above preclude what
the government may otherwise do in terms of a stricter control on the expenditure side. Recent studies for
large democracies showed that bigger is the size of the
government, the smaller is the amount it can spend on
development projects. Larger governments spend a substantial amount of the revenue to maintain those in the
government and for related expenditures. The remaining
amount of the revenue is distributed between plan and
non-plan expenditures that also includes the payments for
government and semi-government (such as grant-in-aid
organizations) employees maintained by the government.
It should be remembered that when the size of the bureaucracy gets bigger, they also command more bargaining power via labor unions and can influence the government to deliver more in their favor. In certain countries
where the bureaucracy is very strong, even increasing
the weekly working hours may become rather difficult
for the government. Thus, when the government is hard
pressed to improve productivity and output to generate
84
AUGUST 2014
more revenue and yet cannot implement any of the stringent policies as mentioned above, then the only viable
option to make ends meet is to cut back on current levels
of expenditure. The West Bengal government is known
to have done that recently, wherein they are even denying
the employees of the legitimate dearness allowance on
time. The whole discussion above should therefore serve
as a precursor to the 'expenditure commission' set up by
the government to monitor the expenditures incurred
by the federal government via several ministries. If one
recollects the recent era when then-then railways minister kind of inaugurated one new train every week and
had big ceremonies on the occasion of those inaugurations, one should directly connect to what I am trying to
convey. The railway exchequer had depleted alarmingly
over the last few years. Neither did the government allow rise in railway ticket prices, nor did it raise freight
charges. Moreover, it could not control large unproductive expenses incurred by this organization. On the same
ground, the national flight carrier of India should have
been grounded long time back, financially and administratively restructured and disinvested in due course.
Nothing of that sort happened in the present budget.The
ministries duly aided by bad bureaucrats rarely care that
they are custodians of the tax-payers' money and have
absolutely no rights to deliberately waste billions of dollars worth of revenue on totally unproductive purposes. No developed country engages in any such directly
unproductive activities, unless it involves something like
celebrations on Independence Day which would also be
driven by huge populist demand, remembering the luminaries for their unforgettable contributions to the country, and on new inventions and discoveries that will have
the potential to land the country into newer trajectories
over time. Apart from these, most other expenditures incurred by the government on the behest of populist demand are usually driven by election promises that serve
more as opium than elixir. By the time the caste-driven,
the religion-driven and the lust-for-money driven illiterate electorate realizes that the government had given
them a slip, it gets too late to recover the billions lost in
directly unproductive activities.
So, if the bureaucrats keep quiet despite being fully aware of the disastrous effects of these expenditures
sprees, who can control these? It is well known that the
CAG is responsible for looking into the activities of all
government organizations as far as the accounts department is concerned. The CAG regularly points out discrepancies, often theft and embezzlements, in the way
www.icmai.in
WHAT MAY BE REQUIRED FOR

AN EDUCATED APPROACH OF
THE COST ACCOUNTANT IS
POSSIBLY A CLEARLY DEFINED
VIEW OF THE ORGANIZATION
AS A WHOLE, AS WELL AS THE
ABILITY TO RECOGNIZE AND
ADDRESS MINUTE DETAILS
THAT AFFECT THE REVENUE AND
EXPENDITURE. THIS INVOLVES
APPLYING HIGHLY-DEVELOPED
SKILLS IN MARGIN ANALYSIS
AND PROJECT COSTING AND IT
SHOULD ALSO DRAW ADEQUATE
RETURNS IF THE JOB IS WELL
DONE
money has been spent in public organizations on the

same ground that they run on revenues collected from
taxes and cannot therefore engage in any activity that
may be deemed as unscrupulous, partisan, wasteful and
beyond recuperation. There are well-laid out rules and
regulations within which the offices must stay in order
to avoid any overstepping. Yet, there is no dearth of cases
that show that almost every organization has deliberately
or unwittingly engaged in unlawful use of public money.
One reason behind this incapability of the organizations
to stick to the regulations is the absence of trained staff
and awareness of how to control costs.This job should be
left entirely to the professionals engaged in cost control
and management.
A cost accountant observes and analyzes the costs asso-
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ciated with doing business. In this case, we will have to

interpret the same as cost controls in public organizations
and perhaps, ministries. These costs can be tangible or
intangible and cover everything from the cost of the office lease to inventory and labor expenditures. The CAG
notes that the organizations not only incur wasteful expenditures but also falter on several performance parameters including the employment rules and payments.The
coordination between legal aspects of running a public
organization and the cost/expenditure aspects of it can be
a vexing task for administrators without adequate training in any of these disciplines. A close observations shall
easily reveal that apart from technically trained administrative officers, the general lot comes from softer disciplines where number crunching and analysis are hardly
used on a day-to-day basis. The smooth functioning of
the organization will have to depend significantly from
how much the officer-in-charge trusts the supporting
cast. The scope for variations in such relations is enormous. Instead, if the job is delegated to certified and able
cost administrators, the outcome may be an efficient one
for all parties. A person in this position is responsible for
determining which costs can be reduced or eliminated
and how to implement the savings without compromising the quality of daily operations or customer service.
Unlike the administrator, the analytical capacity of a cost
accountant is fairly constant regardless of the industry in
which he or she works. In recent times, armed with software support a cost accountant delves into details on material, manufacturing and labor costs. He or she includes
analyses of costs versus profitability in all areas of operation. The finer points of his or her research may include
utility costs, real property and equipment values, tax issues
and variations in profit margins. In case of non-profit
organizations of the type we were more keenly interested
in here, the cost management and making ends meet
without legal infringements are considered as the main
functions. What may be required for an educated approach of the cost accountant is possibly a clearly defined
view of the organization as a whole, as well as the ability
to recognize and address minute details that affect the
revenue and expenditure. This involves applying highly-developed skills in margin analysis and project costing
and it should also draw adequate returns if the job is well
done. The new expenditure management policy of the
government should at least open up more prospects for
the professional in this area very soon.
skar1801@yahoo.com
AUGUST 2014
85
Day & Date
Sunday,
21st September, 2014.
Sunday,
21st September, 2014.
Foundation Course Examination
Examination Fees
US $ 60
Agartala, Ahmedabad, Akurdi, Allahabad, Asansol, Aurangabad, Bangalore, Baroda,

Berhampur(Ganjam), Bhilai, Bhilwara, Bhopal, Bhubaneswar, Bilaspur, Bokaro, Calicut, Chandigarh, Chennai,
Coimbatore, Dehradun, Delhi, Dhanbad, Durgapur, Ernakulam, Faridabad, Gandhidham, Ghaziabad, Guwahati,
Hardwar, Howrah, Hyderabad, Indore, Jaipur, Jabbalpur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kalyan, Kannur,
Kanpur, Kolhapur, Kolkata, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai, Mysore, Nagpur,
Nasik, Nellore, Noida, Panaji (Goa), Patiala, Patna, Pondicherry, Port Blair, Pune, Rajahmundry, Ranchi, Rourkela,
Salem, Sambalpur, Shillong, Siliguri, Solapur, Srinagar, Surat, Thrissur, Tiruchirapalli, Tirunelveli, Trivandrum,
Udaipur, Valsad, Vashi, Vellore, Vijayawada, Vindhyanagar, Waltair and Overseas Centres at Bahrain, Dubai and
Muscat. (If no examination centre is available at a particular location, examinees will be accommodated at the
nearest Centre available)
COST ACCOUNTING STANDARD ON MANUFACTURING COST

(CAS 22)
(The appendix is continuing form the previous issue)
Cost Statement showing Manufacturing Cost of (Name of excisable good) for the period
Name of the Manufacturer
Address of the Manufacturer
Excise Registration Number
Name of the unit
Address of the unit
Central Excise Tariff Heading
A
Quantitative Information
Normal/Installed Capacity
Unit
Production
Captive Consumption
Production as %age of Normal/Installed Capacity
Quantity
Cost Information
Unit
Quantity
Rate Amount Cost per Unit
Materials (specify)
1
A.
B.
C.
D ..
Total Materials Consumed
2
Process Materials
3
Utilities
4
Direct Employee Cost
5
Direct Expenses
6
Consumable Stores and Spares
7
Repairs and Maintenance Cost
8
Quality Control Cost
9
Research & Development Cost
10 Technical Know-how Fee/Royalty, if any
11 Depreciation/Amortization
12 Other Manufacturing Overheads
13 Total(1 to 12)
14 Add/Less Work-in-Progress Adjustments
15 Less Credit for Recoveries , if any
16 Packing Cost
Cost of Inputs Received Free or at concessional value from the buyer of the
17
excisable good
18 Manufacturing Cost (13 to 17)
Date:
Seal & Signature of the Companys Authorised Representative
I/We have verified above data on test check basis with reference to the books of account, cost accounting records and other records. Based on the
information and explanations given to me/us, and on the basis of generally accepted cost accounting principles and practices and Cost Accounting
Standards followed by the entity, I/we certify that the above cost data reflects true and fair view of the manufacturing cost of the above excisable good.
Date:
Place:
Membership No.:
Seal & Signature of Cost Accountant
Firm Regn. No.:

Note: Separate Cost Statement(s) shall be prepared for each excisable goods
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AUGUST 2014
87
BUDGET
ANALYSIS
UNION BUDGET (2014-15) :

COMMENTS ON AN EMPIRICAL
APPROACH
The Central Government should take positive steps for
reviving investment, entrepreneurship and overall growth
momentum in order to put the economy back on the
growth trajectory
Dr. Dilip Kumar Datta
Director & CEO, Sayantan

Consultants Pvt. Ltd.,
Kolkata
Mousumi Pal
Research Associate,
Sayantan Consultants
Pvt. Ltd., Kolkata
Paromita Dey
Research Associate,
Sayantan Consultants
Pvt. Ltd., Kolkata
HE union budget for any year is a

comprehensive statement of projected
sources and applications of fund of the
government for that year. In this paper, we make
an attempt to empirically analyse the historical
data of earlier years budget with an aim to find
out whether the amount projected for various
components of this years budget proposal is realistic and achievable.We follow the methodology normally adopted by the financial analysts
for projecting future cash flows of a company.
We perform this exercise in three stages. In the
first stage, we carry out trend analysis based on
historical data. In the second stage, we perform
variance analysis and in the last stage, we exhibit a comparative statement depicting the
figures shown in the union budget and those
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AUGUST 2014
derived from our empirical analyses. Finally, we

conclude. As one knows, this years budget is
presented at a time when Indian economy is
passing through certain adverse economic scenario, namely, rising inflation, high fiscal and
revenue deficit and low growth rate. Keeping
this in view, we take reference period for 10
years from 2004-05 to 2013-14 in order to take
care of the fluctuations occurred in the past.
Trend analysis based on historical data

Different components of Union Budget as
percentage of GDP during the reference period are given in Table 1. Figure 1 captures
revenue receipts (RR) and revenue expenditures (RE) as a percentage of GDP. Figure
2 captures trend in respect of capital receipt
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(CR) and capital expenditure (CE). Figure 3 addresses the trend in revenue deficit (RD) and fiscal deficit
(FD). Figure 4 captures Debt servicing capacity (DSC)
and Interest servicing capacity (ISC). It is observed that
there was not much fluctuation in the trend with respect to most of the components of budget excepting
those whose mean value is comparatively low. They
are revenue deficit, fiscal deficit, capital expenditure
and non-tax revenue. There was wide variation in both
revenue deficit and fiscal deficit over the last ten years.
During the financial year 2008-09, revenue deficit as
percentage of GDP increased from 1.39 to 4.55. In this
year, fiscal deficit also increased from 3.65 to 6.93 per-
centage of GDP. The reason may be the global financial

crisis and consequent economic downturn. Mean ratio
of total revenue receipt (TRR) and CR as percentage
of GDP during the reference period was about 1.68
indicating that CR was about 60 percent of Total Revenue Receipt. Debt receipt (DR) as a percentage of
CR increased from 68% (2004-05) to 93% (2013-14).
However, DR as percentage of total receipt (TR) does
not show much fluctuation during the study period.
This shows that DR is not only the main source of
capital receipt (long term sources of fund) but also it
indicates centres increasing reliance on outside debt.
Interest payment as percentage of revenue expenditure
Table 1: Different Components of Union Budget as Percentage of GDP (` in crores)

Components
20042005
20052006
20062007
2007- 20082008 2009
20092010
20102011
20112012
20122013
20132014
Mean
CV
Net tax revenue (NTR)
7.60
8.09
8.75
9.42
8.79
7.47
7.78
7.50
7.90
7.98
8.13
0.08
Non tax revenue
2.53
2.19
1.96
2.04
1.81
1.90
3.04
1.45
1.38
1.85
2.01
0.24
Total revenue receipt (TRR)
10.13
10.28
10.71
11.46
10.60
9.38
10.81
8.95
9.29
9.83
10.14
0.08
Capital receipt (CR)
9.10
4.73
4.00
4.02
5.82
7.42
6.18
6.78
6.01
5.36
5.94
0.26
CR as % of TRR
89.85
45.98
37.40
35.09
54.93
79.09
57.12
75.71
64.71
54.52
59.44
0.30
Total receipt (TR)
19.23
15.00
14.71
15.48
16.99
16.77
16.78
15.54
15.24
15.19
16.09
0.09
Revenue Expenditure(RE)
12.99
12.99
12.82
12.85
15.15
14.93
14.54
13.65
13.45
13.36
13.67
0.06
Capital expenditure(CE)
4.03
2.02
1.89
2.64
1.84
1.84
2.25
1.89
1.79
1.82
2.20
0.32
Total expenditure(TE)
17.02
15.00
14.71
15.48
16.99
16.77
16.78
15.54
15.24
15.19
15.87
0.06
Total interest payment (TIP)
4.24
3.84
3.70
3.75
3.63
3.49
3.32
3.26
3.37
3.63
3.62
0.08
TIP as % of RE
32.61
29.53
28.85
29.22
23.98
23.37
22.85
23.84
25.07
27.16
26.65
0.12
Revenue deficit (RD)
2.87
2.71
2.11
1.39
4.55
5.55
3.72
4.70
4.17
3.54
3.53
0.36
Fiscal deficit (FD)
3.98
4.15
3.49
3.65
6.93
7.40
5.56
6.89
5.89
5.01
5.29
0.28
Source- www.indiabudget.nic.in , www.planningcommission.nic.in
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AUGUST 2014
97
BUDGET
ANALYSIS
Figure 1: Revenue Receipt and Expenditure as Percentage of GDP at Factor cost at Current Price
16.00
14.00
Total
revenue
receipt
10.00
8.00
6.00
4.00
2.00
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
0.00
2004-05
Amount in Crores
12.00
Revenue
Expenditu
Year
Source: Table 1
Figure 2: Capital Receipt and Expenditure as Percentage of GDP at Factor cost at Current Price
10.00
6.00
Total capital receipt
4.00
Capital Expenditure
2.00
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
0.00
2004-05
Amount in Crores
8.00
Year
Source: Table 1
decreased from 33% in 2004-05 to 27% in 2013-14.

The same as percentage of GDP remained constant at
about 3.38%. Such decline does not indicate favourable
situation if one analyses with reference to higher incremental growth rate of revenue expenditure compared
to that of interest payment. DSC increased from 0.86
(2004-05) to 1.89 (2013-14). ISC increased from 2.39
(2004-05) to 2.71 (2013-14). DSC of a country should
98
AUGUST 2014
be an indicator showing how much of the total borrowings and other liabilities a country can pay on demand
from total revenue receipt (TRR). ISC should indicate
how much of interest payment can be made from interest collected.We calculate DSC as a ratio between TRR
and borrowings and other liabilities of that year. ISC is
a ratio between amount of interest receipt, dividends
and profits to amount of interest payments and repay-
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8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Revenue deficit
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
Fiscal deficit
2004-05
Amount in Crores
Figure 3: Revenue and Fiscal Deficit as Percentage of GDP at Factor cost at Current Price
Year
Source: Table 1
Figure 4: Debt servicing and Interest servicing Capacity as percentage of GDP at Factor cost at Current Price
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
DSC
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
ISC
Year
Source: Table 1
ment premiums in a year. Another interesting feature is

that average y-o-y growth rate of GDP was about 7%
while the same for total expenditure (TE) was about
14%. This is an alarming situation. Rate of increase in
income is less than rate of increase in total expenditure.
This leads to more dependence on outside borrowings
which might impair sovereignty of a country.
Variance analysis
Variance analysis for the reference period shows interesting features. While capital receipts showed favourable
variance, revenue receipt showed adverse variance. Total
receipt showed maximum favourable variance of about
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sixteen percentage in 2008-09 and maximum adverse

variance of seven percentage in 2005-06 with a mean
favourable variance of three percentage during the reference period. Similarly, total expenditure showed maximum adverse variance of about twenty percentage in
2008-09 and maximum favourable variance of one percentage in 2005-06 with a mean adverse variance of
four percentage. Gap between long term sources of fund
(LTS) and long term applications of fund (LTA) widened
leading to increasing trend in revenue deficit (RD). This
RD, in the language of financial analysts, is deficit in net
working capital (NWC) of an entity. More will be the
gap, more would be the deficit in funds required to run
AUGUST 2014
99
BUDGET
ANALYSIS
Table 2: A Comparative picture of the Union Budget (2014-15) (` in crores)

Sl. No.
Components
Realistic estimate on the basis of

trend and variance analyses
Amount shown in the Union Budget
a.
Net tax revenue (8.13% of GDP)
902525
977258
b.
Non-tax revenue (2.01% of GDP)
223133
212505
c.
Total revenue receipt (TRR) (a+b)
1038447
1189763
d.
Capital reciept (CR) (59.44% of TRR)
611787
587969
e.
Total reciept= [(c+d) + 3% of (c+d)]
1780364
1794892
f.
Revenue Expenditure(RE) (13.67% of GDP)
1517530
1568112
g.
Capital expenditure(CE) (2.20% of GDP)
244225
226780
h.
Total expenditure= [(f+g) + 4% of (f+g)]
1832225
1794892
i.
Total interest payment (26.65% of revenue expenditure)
372977
427011
j.
Revenue deficit (f-c)
479083
378349
k.
Fiscal deficit [(h-(c+Loan recoveries+Other receipts)]
794679
602306
Source: www.indiabudget.nic.in , www.planningcommission.nic.in
the government. To sum up, one can say that the projections made in the earlier years budget have hardly been
achieved in reality.
A comparative study
In this section, we depict what should have been the
realistic picture of the Union budget (2014-15) on the
basis of underlying assumptions arising from results of
the trend and variance analyses given as above. Table
2 gives a comparative picture. According to the trend
analysis, net tax revenue and non-tax revenue should
be considered as 8.13 and 2.01% of GDP. On the basis of present economic scenario and global economic
environment, we assume that GDP will grow at the
rate of 6% during 2014-15.This means GDP would be
Rs. 11101175 crores during the financial year 201415. Capital receipt over the period of the last ten years
was 59.44% of TRR and we have considered the
same for next years budget. Revenue expenditure,
in accordance with trend analysis, should be taken as
13.67% of GDP and expenditure on capital account
should be taken as 2.20% of GDP. With respect to total receipts and total expenditures, there was variance
of about three and four percentage. Total interest payment was about 26.65% of revenue expenditure. What
we find from Table 2 is that government has projected lower fiscal and revenue deficit by estimating
higher amount of sources of fund. On the basis of past
100
AUGUST 2014
trend and variance analyses, this does not seem to be

realistic and achievable.
Conclusion
The comparative picture (Table 2) shows that the
main difference lies in revenue deficit and fiscal deficit. Looking from the perspective of a financial analyst, figures projected in this years budget appear to
be not realistic and achievable. In reality, both revenue
and fiscal deficit would be much more than projected
in the Union Budget. These additional deficits are
likely to be met by external borrowings. Increasing
reliance on external borrowings may lead to a situation of debt trap. The government also proposes to
disinvest assets worth Rs. 65000 crores to meet a part
of revenue deficit. This does not conform to financial
discipline of an entity. In such a situation, we suggest
that central government should take positive steps for
reviving investment, entrepreneurship and overall
growth momentum in order to put the economy back
on the growth trajectory. This would be possible only
when government takes multi-layer strategies to effectively implement second generation reforms which
will create additional factor inputs with improved efficiency by means of technological upgradation driven by innovative methods.
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M/36695
Mr Harsh Chaturvedi, MCOM,ACMA
M 42 Sterling Castles Infront Of Bavarchi
Dhabha Hoshangabad Road
BHOPAL 462026
M/36696
Mr Rakesh Krishna, BCOM,ACMA
Assistant Manager Catholic Syrian Bank
Thrissur Zonal Office, P. B. No.502 College View
St. Mary's College Road
THRISSUR 680020
105
MEMBERS ADMISSION
M/36697
Mr Naresh Jujjavarapu, BCOM,ACMA
Door No:2/237, Pasivedala Kovvur Mandal
West Godavari Distict
KOVVUR 534350
M/36698
Mr Arpit Bhandari, BCOM,ACA,ACMA
C/o Arpit Auto Parts New Sham Ki Subzi Mandi
BHILWARA 311001
M/36699
Mr Rakesh Chand Patwa, BCOM,ACA,ACMA
D G M Commercial Matix Fertilisers And
Chemicals Ltd A - Wing, Flat No.703, Bhakti
Avenue Plot No.3 B, Sector - 46 A Nerul
(West), Seawood
NAVI MUMBAI 400706
M/36700
Ms Jyoti Devidas Lonare, MCOM,ACMA
Flat No.11, Aakashdip Plaza Near New Court,
Vijay Nagar Sinnar
NASIK 422103
M/36701
Mr Mahendra Kumar Panda, BCOM
HONS,ACMA
Qr. No-2/4, Co -Housing Colony Hata Sahi,
Oldtown
BHUBANESWAR 751002
M/36702
Mr Rajendra Prasad Patra, BCOM
HONS,ACMA
Associate Maersk Global Service Centres
(I) Pvt Ltd No. 8, First Floor, 3rd Main Road
Kannan Nagar, Madipakkam
CHENNAI 600091
M/36703
Mr Manoj Kumar, BCOM HONS,ACMA
Assistant Accounts Officer Bharat Heavy
Electricals Limited Plot No.25, P P E I Building
Sector -16 A
NOIDA 201301
M/36704
Mr Rohan Bhalchandra Dhopatkar,
BCOM,ACA,ACMA
A/502, Sagar Apartments, Navghar Village
Road No.1, Mulund (East)
MUMBAI 400081
M/36705
Mr Lovinder Kashyap, BBA,MBA,ACMA
5489 (Ground Floor) Modern Housing Complex
Mani Mazra
CHANDIGARH 160101
106
M/36706
Mr Sachin Kapoor, MCOM,ACMA
100 - C Model Town
PATIALA 147001
M/36707
Mr Ayyappan C, BCOM, ACMA
Site Commercial Head Reliance Industries
Limited, Allahabad Manufacturing Division,
A/10 - A/27, Upsidc Industrial Area P. O. T S
L, Naini
ALLAHABAD 211010
M/36708
Mr Kishore Khup Khanchandani, BCOM,ACMA
Chief Financial Officer Transasia Bio-Medicals
Ltd Transasia House 8, Chandivali Studio Road
Andheri East
MUMBAI 400072
M/36715
Mr Suresh Pentakota, MA,ACMA
Sr. Divisional Finance Manager Indian Railways
D. R. M. Office Dondaparti
VISAKHAPATNAM 530004
M/36716
Mr Manoj Kumar D, BCOM,ACMA
Specialist Scope International No.15, Haddows
Road Nungambakam
CHENNAI 600006
M/36717
Mr Jitendra Sharma, BCOM
HONS,ACS,ACMA
89/3/1 Vivekananda Road Bangur Park, Gaur
Apt. 3rd Floor Dist. Hooghly
RISHRA 712248
M/36709
Mr Asok P V, BCOM,ACMA
Aswathy Alumkal House Poothotta Post
Ernakulam Dist
TRIPUNITHURA 682307
M/36718
Mr Saurabh Kumar, BCOM HONS,ACMA
Finance & Account Officer Oil & Natural Gas
Corporation Ltd. 11th Floor, Core - 4 Scope
Minar, Behind V3s Mall Laxmi Ngar
DELHI 110092
M/36710
Mrs Sangeeta Singh, BCOM
HONS,MBA,ACMA
Sr Manager Finance Bharat Heavy Electrical
Ltd Bhel House Corporate Finance Siri Fort
NEW DELHI 110049
M/36719
Mr Rakesh Kumar Sahani, BCOM
HONS,ACMA
At- Sriram Nagar Po- Khurda
KHURDA 752055
M/36711
Mr Dileep Venkatesh Guntuku,
BCOM,PHD,ACMA
Senior Executive Volvo India Private Limited
# 73/1, Brigade Metropolis Summit -B,11th
Floor, Mahadevapura Village K R Puram Hobli,
Whitefield Road
BANGALORE 560048
M/36712
Mr Pardeep Kumar, BCOM,ACMA
Assistant Manager Max Hospitals 2 Press
Enclave Road Saket
NEW DELHI 110017
M/36713
Mr Senthil Kumar Subramanian, BCOM
HONS,ACMA
Ain Al Khaleej Hospital Al Jimi, Al A I N
ABU DHABI 88206
M/36714
Mrs Rajni Bala, MCOM,ACMA
Assistant Professor Punjab Institute Of
Management & Technology G. T. Road Mandi
Gobindgarh
FATEHGARH SAHIB 147301
AUGUST 2014
M/36720
Mr Ankit Aggarwal, BCOM,ACA,ACMA
5744 M H C (Duplex) Mani Mazra
CHANDIGARH 160101
M/36721
Mr Siddhartha Paul, BCOM HONS,ACMA
58, Onkar Park Po - Ghola Bazar Sodepur
KOLKATA 700111
M/36722
Mr Vivek Laddha, BCOM,ACA,ACMA
S/o. Brijmohan Laddha Editor No. 9, Gaushala
Road Gulabpura
BHILWARA 311021
M/36723
Mr Venkataraman Balaji, BCOM,ACMA
New 8 (Old No:26), Indrani Street Ayyavoo
Colony Aminjikarai
CHENNAI 600029
M/36724
Mr Ramesh Kumar R, BCOM,ACMA
B -109, Block - 14 I S R O Colony, Newland
Domlur
BANGALORE 560071
www.icmai.in
M/36725
Mr Rikin Jitendrakumar Desai, BCOM,ACMA
Cost Accountant P. H. Desai & Co. 121,
Devpath Complex Behind Lal Bunglow Off C.
G. Road
AHMEDABAD 380006
M/36726
Mr Ashish Jain, BCOM,ACMA
Dy. Manager Accounts Roca Bathroom
Products Pvt Ltd Industrial Area No. 2
DEWAS 455001
M/36727
Mr Harsh Vardhan Maheshwari, BCOM,ACMA
E-89, Ram Path, Shyam Nagar New Sanganer
Road Sodhala
JAIPUR 302019
M/36728
Ms Buddavarapu Chamanthi, BCOM,ACMA
D/o. B Sai Babu D. No. 12 - 217 T R Nagar
Mylavaram
KRISHNA 521230
M/36729
Mr K Vijayakumar, BCOM,ACA,ACMA
132 / 10, Lake View Road Rajalakshmi
Apartments West Mambalam
CHENNAI 600033
M/36730
Ms Gontla Manasa, BCOM,ACMA
D/o. G. Ramakrishna No. 21-2-3, Ambativari
Street Laxmi Nagar
VIJAYAWADA 520011
M/36731
Mr Dulal Chandra Pal, BCOM HONS,ACMA
Semi Professionally Accounts Personnel
- Trainee West Bengal State Electricity
Distribution Co. Ltd O/o. The Divisional
Manager Habra Division, Boralia Road
Hizalpukuria
HABRA 743271
M/36734
Mr Vankayala Prasanth, BCOM,ACMA
S/o. Vankayala Srinivas D. No.10-28, Market
Street Vill & Post - Duvva Mandal - Tanuku
WEST GODAVARI 534156
M/36743
Mr Prasenjit Sutradhar, MCOM,MBA,ACMA
Sr Executive F. & A. Syscom Corporation
Limited D - 216 Sector - 63
NOIDA 201301
M/36735
Mr Pushpinder Gupta, BE,MS,ACMA
Vice President - IT Atc Telecom Tower
Corporation B -15, 1st Floor Sector - 32
GURGAON 122001
M/36744
Mr Narendra Raja Ga, MCOM,ACMA
Vill - Irragannagaripalli Post - Tarigonda Mandal
- Gurramkonda Dist - Chittoor
MADANAPALLE 517291
M/36736
Mr Sudhakar Maruti Gawade, MCOM,ACMA
Shree Moraya Gosavi Raj -Park P - Building,
Flat No.18 Keshavnagar ,Chinchwadgaon
Pimpri Chinchwad
PUNE 411033
M/36745
Mr Alpeshkumar Bhavanbhai Siyani,
BCOM,ACMA
Senior Accountant Nirgun Technologies 16,
Samrat Society Near Sagar Society L. H. Road
SURAT 395006
M/36737
Mrs Anuprita Abhishek Modak, MCOM,ACMA
Surajyashree Housing Society, Flat No.19
Gujarath Colony, Paud Road Kothrud
PUNE 411038
M/36738
Mr Soumava Bhattacharya, BSC
HONS,ACMA
C D - 292, Sector - 3 H E C Township Dhurwa
RANCHI 834004
M/36739
Mr Babu Sarojiniamma Raveendran Nair,
MCOM,ACMA
Head Of Section Government Womens
Polytechnic College Technical Education
Department Commercial Practice Branch
Kayamkulam
ALAPPUZHA 690502
M/36740
Mr Vivek Jonnalagadda, BCOM,ACA,ACMA
Assistant Manager - Finance & Accounts
Akzo Nobel India Limited Plot No.62 A & 62 B
Hoskote Industrial Area Chintamani Road
BANGALORE 562114
M/36732
Ms Shravani Thatipally, BCOM,ACMA
Qr. No. B-5/79 P T S, N T P C Jyothinagar
RAMAGUNDAM 505215
M/36741
Mr Nalamachu Mahesh, MCOM,ACMA
H. No. 8-77, Near Post Office Post & Mandal:
Choppadandi
KARIMNAGAR 505415
M/36733
Mr Bommisetti Venkata Kiran Kumar,
BCOM,ACMA
S/o. B. Mallikharjuna Rao 16 B-15-88, Near Big
Mosque Thangellamudi Chintalapudi Road
ELLURU 534005
M/36742
Mr Sachin Aggarwal, BCOM HONS,ACMA
Assistant Manager Power Finance Corporation
Ltd. 1, Urjanidhi Bhawan Barakhamba Lane
Connaught Place
DELHI 110001
www.icmai.in
AUGUST 2014
M/36746
Mr Krishna Praveen G, BCOM,MBA,ACMA
Senior Assistant Manager (Accounts) The India
Cements Limited Dist. Kadapa
YERRAGUNTLA 516309
M/36747
Mr Deepak Dutta, BCOM,ACMA
67, Lohia Vihar Sector - 9, Indra Nagar
LUCKNOW 226016
M/36748
Mr Sridhar T K, MCOM,ACMA
Senior V P Finance ABB India Ltd 21st Floor,
World Trade Center Dr. Rajkumar Road
Malleswaram West
BANGALORE 560055
M/36749
Mr Lalit Mohan Chandola, MCOM,ACMA
S -251 School Block Shakarpur, Near Durga
Temple
NEW DELHI 110092
M/36750
Ms Surya Mani Sahoo, BCOM HONS,ACMA
Qr. No. T - 73, Cheap Type Colony Sector-19,
Sundargarh
ROURKELA 769003
M/36751
Mr Mohit Badoni, BCOM, ACMA
Vice President - Global Payments And Cash
Mgmt HSBC Bank Institutional Plot No. 68
Sector - 44
GURGAON 122002
107
MEMBERS ADMISSION
M/36752
Mr Shyamkumar Nagabhusanam Addagatla,
MCOM,ACMA
Block No A/14, Vijay Nagar Chs Dhamankar
Naka, Varal Devi Road, Bhiwandi Dist Thane
BHIWANDI 421302
M/36753
Mr A R Parthasarathy, BCOM,FCA,ACMA
Partner R G N Price & Co. 861, Anna Salai
Simpsons' Building
CHENNAI 600002
M/36754
Mr Sandeep Khatri, BCOM,ACMA
Assistant Manager Danblock Brakes India Ltd
Suite No.311, Vardhman Diamond Plaza D. B.
Gupta Road, Paharganj
NEW DELHI 110055
M/36755
Mr Deshraj Singh Mewada,
BCOM,ACA,ACMA
Executive Finance Case New Holland
Construction India Pvt Ltd 203, Gopur Colony
Annapurna Road, Greater Vaishali
INDORE 452009
M/36762
Mrs Divya H R, BCOM,ACA,ACMA
Manager G E India Industrial Private Limited
73/1, 7th Floor, Brigade Metropolis Summit
Tower - B, Garudacharpalya Mahadevapura,
Whitefield Road
BANGALORE 560048
M/36763
Mrs Vijayalaxmi Nanasaheb Jagdale,
BCOM,ACMA
Cost & Management Trainee Mazagon Dock
Limited Dockyard Road
MUMBAI 400010
M/36764
Mr Sreenu Onipenta, BCOM,ACMA
S/o. Ramulu Vill - Vallayapalem Md - Marripudi
Dist - Prakasam
ONGOLE 523240
M/36756
Mr Priyank Arvindbhai Patel, MCOM,ACMA
G/11, Shayona City, Part-3 R. C. Technical
Road Ghatlodia
AHMEDABAD 380061
M/36765
Mr Vishwanath Mangal Joshi, BCOM,ACMA
Account Executive Om Sai Manpower Service
Pvt. Ltd Shop No. 3 Opp C I D C O Bus Stand
CIDCO
AURANGABAD 431003
M/36757
Mr Kiruthigai Vasan Krishnamurthy,
BSC,ACMA
Senior Officer ( F & A) Utility Powertech
Limited S -3, Kannika Thendral Melur Salai
Road Trichy
SRIRANGAM 620006
M/36766
Mr Manu Ravi, BCOM,MBA,ACMA
Assistant Manager - Finance H L L Lifecare
Ltd Corporate Regd. Head Office H L L Bhavan
Poojappura
THIRUVANANTHAPURAM 695012
M/36758
Mr Tejas Chandulal Shah, BCOM,ACA,ACMA
A. G. M. (Accts. & Taxation) Tata Motors
Limited Teen Hath Naka Off Eastern Express
Highway Near Eternity Mall Gyan Sadhana
College Service Road
THANE 400604
M/36759
Mrs Remya Damodaran, MCOM,ACMA
Door No. 1/7, Plot No. 306 12th Street,
Venkateshwara Nagar Ramapuram
CHENNAI 600089
M/36760
Mrs Pooja Sharma, BCOM HONS,ACMA
Junior Associate - Finance Nagarro Software
Pvt Ltd Sector - 18, Plot - 14 Electronic City
GURGAON 122015
108
M/36761
Mrs Maria Priya D Mello, MCOM,ACMA
Flat No. 6043 Sobha Carnation Apartments
Green Glen Layout Bellandur
BANGALORE 560103
M/36767
Mr Sagar Mansukhbhai Kapadiya,
BCOM,ACMA
Nani Parabadi Tal : Dhoraji Via : Jetalsar (Jan)
RAJKOT 360360
M/36770
Ms Nitha V S, BCOM,ACMA
Account Finalization Personnel Kerala State
Backward Classes Development Corporation
Limited Villamparambil House Puthukkavau
Perambra P O
THRISSUR 680 689
M/36771
Mrs Vidya N, MCOM,ACMA
Lakshminarayana Apartments T - 1, 3rd Floor
No. 425, 26th Street, 5th Sector K K Nagar
(Behind P S B B School)
CHENNAI 600078
M/36772
Ms Dimple Ashok Batra, MCOM,ACMA
B - 44, Shreyas Apartment Manchubhai Road,
Malad East
MUMBAI 400097
M/36773
Mr Kishore Krishnaswamy,
BCOM,FCA,CIMA(UK),ACMA
Self Employed K K Swamy Associates Door - 4,
Plot - 3 Sanskrit College Street Off Royapettah
High Road Mylapore
CHENNAI 600004
M/36774
Mr Pravin Jain, BCOM,ACMA
Accountant Laxmi Sales Corporation Vimla
Nivas 88 A Market Sector - 1
BHILAI 490001
M/36775
Mr Lalit Kumar Bachani, BCOM,MBA,CPA
(AUS),ACMA
Manager (Finance & Commercial) Pt. Indo
Liberty Textiles (Aditya Birla Group Co.)
Jl. Raya, Teluk Jambe, Desa Teluk Jambe,
Karawang
JAWA BARAT 41361
M/36768
Mr Sunil Rajendra Rathor, MCOM,LLB,ACMA
B/64, Vrundavan Park, B/h, Adinath Nagar,
Odhav
AHMEDABAD 382415
M/36776
Mr Anil Kumar Sharma, BCOM,ACMA
Dy. Manager Nuclear Power Corporation Of
India Ltd Kakrapar Atomic Power Station P. O.
Anumala Via - Vyara
SURAT 394651
M/36769
Mr Prasanta Kumar Pradhan, MCOM,ACMA
Management Trainee Housing & Urban
Development Corporation Ltd. Bhubaneswar
Regional Office 3rd Floor, Dindayal Bhawan
Janpath, Ashok Nagar
BHUBANESWAR 751009
M/36777
Mr Suresh Babu K, MCOM,ACMA
Executive Accounts Larsen & Toubro Limited,
Construction 1st & 2nd Floor, Kumara Krupa
Road,01 Opp: Shivananda Circle
BANGALORE 560001
AUGUST 2014
www.icmai.in
M/36778
Mr Ashish Jain, BCOM,ACMA
Bania Para Front Of Gujrati Bhawan Devshri
Talkies Road
DHAMTARI 493773
M/36779
Mr Abhimanyu N A, MA,ACMA
D - 2, Fourth Floor Lotus Bhavan Apartments
Satbari, Chatterpur
NEW DELHI 110074
M/36780
Mr Pradeep Kumar Pradhan, BCOM,ACMA
C -25, Anand Vihar
DELHI 110092
M/36781
Mr Nand Lal Sardana,
MCOM,ACA,FCS,ACMA
Chief Financial Officer R Systems International
Limited C - 40 Sector - 49
NOIDA 201307
M/36782
Mr Seshan Ramaswamy, BCOM,ACMA
No.7, 30th Street Thillai Ganga Nagar
CHENNAI 600061
M/36783
Mr Vinod P, BCOM,ACA,ACMA
Branch Accounting Manager Expeditors
International (India) Pvt Ltd 7th Floor, Shyamala
Towers 136, Arcot Road, Saligramam
CHENNAI 600093
M/36784
Ms Raja Rajeswari Bommu, BCOM,ACMA
Team Lead Standard Chartered Bank(scope
International) No.37, College Raod G. K. Sheety
Building Behind Union Bank
CHENNAI 600006
M/36785
Mr Santosh Kumar, BCOM,MBA,ACMA
Manager - Finance & Accounts Eta Star
Engineering Projects Pvt Ltd B - 13, Eta House
Sector - 63
NOIDA 201301
M/36786
Mr Mohan Dwarakanath Deshpande,
BCOM,ACMA
Vice President - Finance Elder Pharmaceuticals
Ltd C / 9, Dalia Industrial Estate Off Veera Desai
Road Andheri (West)
MUMBAI 400053
www.icmai.in
M/36787
Mr Sohan Pal, MCOM,M PHIL,ACMA
Vill + Post - Khattaprahladpur
BAGHPAT 250615
M/36788
Mr Vipin Arora, ACMA
Deputy Manager - Controlling S K F India
Limited Building No. 5 B, 17th Floor Cyber City,
Phase - 3
GURGAON 122002
M/36789
Mr Neeraj Chopra, BCOM,ACMA
02071 Ats Paradiso Sector Chi4
GREATER NOIDA 201308
M/36790
Mr Chandra Sekhar Pinapati,
BCOM,MBA,ACMA
A V P Genpact 4300 Bay Area Blvd. Apt 3726
HOUSTON 77058
M/36791
Mr Yogesh Jajoriya, MCOM,ACMA
Accountant Powergrid Corporation Of India
B - 4 / 184, Chitrakoot Scheme Near Pratap
Stadium Vaishalinagar
JAIPUR 302021
M/36792
Mr Saikumar Majeti, ACMA
H. No.7-104/1 Srinagar Colony 1st Lane
Khammam District
KOTHAGUDEM 507101
M/36793
Mr Shivaraj Ramani Iyer, MCOM,ACMA
22/13-15 Elizabeth Street Parramatta
PARRAMATTA 2150
M/36794
Mr Brham Prakash Yadav, BCOM
HONS,ACA,ACMA
General Manager (F & A) Omax Autos Ltd
801, Omaxe The Nile Sector - 49, Sohna Road
Adjoint Saidham Mandir
GURGAON 122018
M/36795
Mr Arpit Goel, BCOM,ACMA
W Z-344/a Rajnagar Part 2 Near Balwan
Khowkar Old Oil Depot & Shankar Road Palam
colony Palamau
DELHI 110077
M/36796
Mr Uday Pralhad Deshpande,
BCOM,ACA,ACMA
Director Tenshi Peak Ventures Pte Ltd Tower 21, Floor - 23, Suite - 23 21, St Thomas Walk
Grange Heights
SINGAPORE 238145
AUGUST 2014
M/36797
Mr Rajendra Kumar Krishna, BCOM,ACMA
Financial Controller Meridian Seafoods Pty Ltd
Unit 12 22-24 Bailey Street Westmead N S W
2145, Australia
PARRAMATTA 2145
M/36798
Mr Bhupesh Namdeo Morye,
BCOM,MBA,ACMA
Director Scientia Advisory Pvt Ltd 67, 3rd Floor
Neel Madhav Opp Goregoan Station, Goregoan
West
MUMBAI 400062
M/36799
Mr Tejas G Shanbhag, BCOM,ACMA
Assistant Manager Bosch Ltd Post Box No.
3000 Hosur Road Adugodi
BANGALORE 560030
M/36800
Ms Puja Girdharilal Nathani, MCOM,ACMA
Plot No.170, Ist Floor Sindhi Colony Jalna Road
AURANGABAD 431005
M/36801
Mr Vinesh Kumar, BCOM,ACMA
H. No. 683 / 4 Sanjay Enclave Nangla Road N
I T Faridabad
FARIDABAD 121005
M/36802
Mrs E Geetha, BBA,ACMA
New Door No. 24, Old Door No. 16 Swamy
Nagar Extension, 1st Street Plot No. 50,
Ullagaram Pulithivakkam
CHENNAI 600091
M/36803
Mr Gaurav Tiwari, BCOM HONS,ACMA
12, Uma Das Lane 2nd Floor
KOLKATA 700016
M/36804
Mr Ianala Naveen Kumar, BCOM,ACMA
Executive Controlling L A P P India Pvt. Ltd #
1/3, 9th Cross 9th A Main Road Jayanagar
I I Block
BANGALORE 560011
M/36805
Mr Ishan Sonthalia, ACA,ACS,ACMA
Finance Analyst Procter & Gamble P & G Plaza
Cardinal Gracious Road Chakala Andheri (East)
MUMBAI 400099
109
MEMBERS ADMISSION
M/36806
Ms Mamta Gupta, BCOM,ACMA
B - 75, Dabua Colony N. I. T. Faridabad
FARIDABAD 121001
M/36807
Mr Murugesh Raman, MCOM,ACMA
Management Accountant A L Futtaim Motors
P O 11052, Toyota Showroom Dubai Festival
City
DUBAI 11052
M/36808
Mr A Murali, BCOM,ACA,ACMA
20, New No. 43 Bheemasena Garden Street
Mylapore
CHENNAI 600004
M/36809
Mr Ankit Jain, BCOM,ACMA
18/127, Khirni Gate Police Chowkie Near Jain
Temple
ALIGARH 202001
M/36810
Mr Mousam Halwasia, BCOM HONS,M
TECH,ACMA
Mahendra Halwasia Rashmi Enclave
Apartment, Flat No 309 Bhudeshwari Post
Office Lane, Cuttack Road
BHUBANESWAR 751014
M/36811
Mr Jayanam Dilipkumar Mehta, BCOM,ACMA
B -201, Shubham Flats Near River Dale
Academy School L P Savani Road, Rander
SURAT 395009
M/36812
Mr Srinivasan M Kuppuswamy, BCOM,ACMA
Senior Director Keste Software Pvt. Ltd Apt
# 103, S M R Empire 384, Street # 9 West
Marredpally
SECUNDERABAD 500026
110
M/36816
Mr Chitaranjan Mohapatra, BCOM
HONS,ACMA
At - Kochilakana Nuasahi Po - Gurujanga
KORDHA 752055
M/36817
Mr Srikanth Daram, BCOM,ACMA
Cost Accountant Divis Laboratories Limited
6-1-133/27, Brooke Band Colony Walker Town
- 11 Padmarao Nagar
HYDERABAD 500025
M/36818
Mr Abhiram Maringanti, BCOM,ACMA
204 C, Gulmohar Park Colony Serilingampalli
HYDERABAD 500019
M/36819
Mrs Sandhya Subramanian, MCOM,ACMA
Asstt. Manager - Finance Thoughtworks
Technologies (I) Pvt. Ltd A C R Mansion, 147 /
F, 8th Main 3rd Block, Koramangala
BANGALORE 560034
M/36820
Mr Suresh Veera Raghavan,
BCOM,ACA,ACMA
Head - Finance Wheels Logistics (P) Ltd 19/37
Shenoy Nagar West 1st Main Road
CHENNAI 600030
M/36821
Mrs Shamika Chetan Mhatre,
MCOM,ACS,ACMA
103, Sai Shilp Ambedkar Road Old Panvel
PANVEL 410206
M/36813
Mrs Kala Krishnamoorthy, MCOM,ACMA
Assistant Manager I D B I Bank S C B Branch
44, Shakespear Sarani P B No. 16102
KOLKATA 700017
M/36822
Mr Mukesh Kumar Sharma, BCOM
HONS,ACMA
Finance & Accounts Trainee M/s Competent
Automobiles Co Ltd F-14, Competent House
Connaught Place
NEW DELHI 110001
M/36814
Mr John Shannel Julian, BCOM,ACMA
Dy. Manager Philips India Ltd 165/166/168,
Manali Express Way Manjambakkam Mathur
Village
CHENNAI 600060
M/36815
Mr T S Balasubramanian, BCOM,ACMA
H G A L I C Of India 100 - A, Gandhi Road
Srirangam
TRICHY 620006
M/36823
Mr Naveen Kumar Adepu, BCOM,ACMA
H. No. 3607, Road No. 7 Vidyut Nagar, New M
I G B H E L, Lingampally
HYDERABAD 502032
M/36824
Mr Sanjay Soni, MCOM,ACMA
Asst. Manager (Finance) Bharat Petroleum
Corporation Ltd 28 A, 1st Floor E C E House
NEW DELHI 110001
AUGUST 2014
M/36825
Ms Jyoti Rani, BCOM,ACMA
Cost Accountant Vipul Bhardwaj & Co. Shop
No.5,vardhman Complex Opp. Civil Hospital
Delhi Road
SONEPAT 131001
M/36826
Mr Pala Nagendra, BCOM,ACMA
Assistant Manager N T P C Limited Admin
Building, Books Section N T P C Vindhyanagar
SINGRAULI 486885
M/36827
Mr Deepak Kumar, MCOM,ACMA
Finance And Accounts Officer Oil And Natural
Gas Corporation LimiteD Mumbai Region,
Engineering Services, Finance Section 04th
Floor, 11 High Building Bandra Sion Link Road
Sion West
MUMBAI 400017
M/36828
Mr Sundararajan Sankaranarayanan,
BCOM,ACMA
Plot No.80 H. M. S. Colony Viratipathu - Post
MADURAI 625010
M/36829
Mrs Mosur Krishnaswami Sangeetha,
BCOM,ACMA
No. 32/71, Mundaga Kanni Amman Koil Street
Mylapore
CHENNAI 600004
M/36830
Mr Shriram Kumar Balasubramanian,
BCOM,MBA,ACMA
Senior Analyst Shell India Market R M Z
Millennia 4 A, No.143, Dr M. G. R. Road
Kandachavadi, Perungudi
CHENNAI 600096
M/36831
Mrs Darshana Jaimin Ainapure,
MCOM,ACMA
E - 3/702, Shivsagar Residency Opp : Saraswat
Bank Suncity Road, Opp : Sunorbit Suncity
Road Anandnagar, Wadgaon
PUNE 411051
M/36832
Mr Jaimin Sudhir Ainapure,
BCOM,MBA,ACMA
E - 3/702, Shivsagar Residency Opp : Saraswat
Bank Suncity Road, Opp: Sun Orbit Suncity
Road, Anand Nagar, Wadgaon (B K)
PUNE 411051
www.icmai.in
M/36833
Mrs Praffullata Shashank Muli,
BCOM,MBA,ACMA
Flat No. B 1 Vishwabharati Housing Society
Plot No. R M - 37, Sambhaji Nagar Nr.
Thermax Chowk, Chinchwad
PUNE 411019
M/36843
Mr Sandeep Daga, BCOM,ACA,ACMA
V P - Commercial Reliance Retail Ltd Reliance
Corporate Park Bldg. - 4, B - Wing, 2nd Floor
Cabin - C A - 01, Gate - A Thane Belapur Road
NAVI MUMBAI 400701
M/36834
Mr Raghavendra R, BCOM,ACMA
Accounts Officer B H E L Electronics Division
Mysore Road Finance, N E B, 3rd Floor
BANGALORE 560029
M/36844
Mr Gaurav Kumar Sharma, BCOM
HONS,ACA,ACMA
Proprietor Gaurav Sharma & Associates M 101, Mohan Garden Uttam Nagar
NEW DELHI 110059
M/36835
Mr Subrata Khuntia, BCOM HONS,ACMA
Accountant At /P O - Sarakantar Dumduma H
B Colony
BHUBANESWAR 751019
M/36836
Ms Supriya Gupta, MCOM,ACMA
Accounts Officer North Bihar Power
Distribution Company Limited Vidyut Bhawan I, Near Income Tax Golambur Bailey Road
PATNA 800021
M/36837
Mr Jayesh M J, BCOM,ACS,ACMA
Muthiramalil Kulasekharam Kodunganoor - P. O.
Vattiyoorkavu - Via
THIRUVANANTHAPURAM 695013
M/36838
Ms Yashi Garg, BCOM,ACMA
A15, Mallavenue Awas Vikas Colony
LUCKNOW 226001
M/36839
Ms Nutan Kumari Singh, BCOM,ACMA
79 Adarsh Nagar Surendra Nagar
LUCKNOW 227105
M/36840
Mr Sandeep Singh, BCOM,MBA,ACMA
Sr. Manager V E Commercial Vehicle
105,107,109, V E Powertrain
PITHAMPUR 454775
M/36845
Mr Samit Shivram Thakur, BCOM,ACMA
Cost Accountant Flat 54, Shramasafalya
Society Shimpoli Road Behind Bank Of Baroda
Borivali West
MUMBAI 400092
M/36846
Mr Anil Saldanha, BSC,MBA,ACMA
Sr. Manager Canara Bank Halebeedu Hassan
District
HALEBIDU 573121
M/36847
Mr Senthilkumar Packiarajan,
BSC,MBA,ACS,ACMA
Financial Risk Analyst Ford Business Services
Center (P) Ltd 143, Dr. M G R Road (North
Veeranam Salai) Perungudi
CHENNAI 600096
M/36848
Mr T V S D Ganesh, MSC,ACMA
Regional Manager - Accounts Mahindra And
Mahindra Financial Services Ltd 1st Floor, V. V.
Towers Kharkhana, Thirmulgherry Road Next
To McDonald
SECUNDERABAD 500009
M/36841
Mr Balaji Saranathan, BCOM,ACA,ACMA
New Number - 63, Old Number - 31
Thulasingha Perumal Kovil First Lane Triplicane
CHENNAI 600005
M/36849
Mr Amit Kumar Jha, BCOM
HONS,ACA,ACMA
A. G. M. - Finance Vibgyor Group P - 25, C. I.
T. Road
KOLKATA 700014
M/36842
Mr Keyur Lalitkumar Shah, MCOM,ACMA
Officer (Commercial And Finance) Gujarat
Industries Power Company Ltd. P. O.
Petrochemicals
VADODARA 391346
M/36850
Mr Nageswara Rao Adabala, BCOM,ACMA
E W S 1215, 2nd Floor Near Bank Of
Maharastra Phase 1 & 2, K P H B Colony
HYDERABAD 500072
www.icmai.in
AUGUST 2014
M/36851
Mr Suresh Iyer, BCOM,ACA,ACMA
Chief Internal Auditor Essar Steel India Ltd
Equinox Business Park, Tower 2, Off Bandra
Kurla Complex, L B S Marg, Kurla West
MUMBAI 400070
M/36852
Mr Balaram Mukherjee, MCOM,ACMA
Accountant (Project) H P L Electric & Power
Pvt. Ltd 133, Pace City - I Sector - 37
GURGAON 122001
M/36853
Ms Swati Paras Mehta, MCOM,ACMA
Dy. Manager N Desai Papers Pvt. Ltd 3rd
Floor, Arun Complex Sattar Taluka Society
Navrangpura
AHMEDABAD 380015
M/36854
Mr Rangarajan Narasimhan,
BCOM,ACA,ACMA
Controller Finance Cisco Systems India Pvt.
Ltd Divyashree Chambers B Wing, No. 11
O`shaugnessey Road Off Lang Ford Road
BANGALORE 560027
M/36855
Mr Vikram Ram Khutle, BCOM,ACMA
Cost Accountant Chembond Chemicals Ltd
Plot No 171,near Marathi School,c Kalundre
Village, O N G C Panvel
NAVI MUMBAI 410221
M/36856
Mr Murali S, BSC,ACA,ACS,ACMA
Eexcutive Director, CFO & Company Secretary
Shriram Capital Limited Shriram House No.4,
Burkit Road T. Nagar
CHENNAI 600017
M/36857
Mr Vasudeva Murthy K S, BCOM,ACA,ACMA
Vice President - Fin. & Accounts Skylark
Mansions Pvt. Ltd Skylark Chambers No.
37/21, Yellappachetty Layout Ulsoor Road
BANGALORE 560042
M/36858
Mr Sridhar Vellore Asokan, MCOM,ACMA
Manager - Finance Indian Railways Catering
& Tourism Corpn. Ltd 3rd Floor, Oxford Plaza
S D Road
SECUNDERABAD 500003
M/36859
Mrs Meera Jayachandran, BCOM,ACMA
Manager The Catholic Syrian Bank Ltd
Treasury & Investment Management Dept. D J
M Building Market Road
ERNAKULAM 682011
111
MEMBERS ADMISSION
M/36860
Mrs Ritika Pushkarna, BCOM HONS,ACMA
27 Saratoga Court Tinton Falls
TINTON FALLS 07753
M/36861
Mr Gangadharan V, BCOM,ACA,ACMA
Vice President - Finance Polaris Financial
Technology Ltd Polaris House 244 Anna Salai
CHENNAI 600006
M/36862
Mr Thummala Venkata Sai Narayana Rao,
BCOM,ACMA
Door No.2-20-6, Sai Maruthi Nilayam, 2nd
Floor L I G - 164, Sector - V I M. V. P. Colony
M/36863
Mr Jaggi Choppa, MCOM,MBA,ACA,ACMA
Jr. Assistant Visakhapatnam Port Trust C M
F Office 2nd Floor, A O B Visakhapatnam Port
Trust
M/36864
Mrs Vidya Adwait Joglekar,
MCOM,LLB,FCS,ACMA
Director V Joglekar & Associates 103,
Avanish Heights, Plot No.13 Saraswati Baug
Jogeshwari (East)
MUMBAI 400060
M/36865
Ms Janani P, BCOM,ACMA
No.17, Mudaliar Lane North Andar Street
THIRUCHIRAPPALLI 620002
M/36866
Mr Akash Gupta, BCOM,ACA,ACMA
91/22, Mahadev Kunj Patel Marg Mansarovar
JAIPUR 302020
M/36867
Mr Venkata Durgarao Tadisetty, BCOM,ACMA
Management Industrial Traiinee Mishara Dathu
Nigam Ltd Kanchanbagh
HYDERABAD 500058
112
M/36870
Mr Amlan Jena, BCOM HONS,ACMA
Officer (AO-PF) BEML Limited Bangalore
Complex New Thippsandra Post
BANGALORE 560075
M/36871
Mr Abhishek Kumar, ACMA
Accountant R N Das & Associates
Swapnamanzil 204 / L, Raja Rammohan Roy
Road
KOLKATA 700008
M/36872
Mrs Deepshikha Arora, BCOM
HONS,MBA,ACMA
Statistical Investigator Ministry Of Health
& Family Welfare Room No. 511 - D Wing
Nirman Bhawan Maulana Azad Road
NEW DELHI 110108
M/36873
Mr Abhishek Pareek, MCOM,ACMA
V P O - Dhoblai Via - Govindgarh Teh - Chomu
JAIPUR 303712
M/36874
Mr Ram Bhajan Verma, BSC,ACMA
Dy. Manager Jindal Saw Ltd A - 1, U P S I D C
Industrial Area Nandgaon Road Kosikalan
MATHURA 281403
M/36875
Mr Rajat Duggal, MCOM,MBA,ACMA
Asst. Manager - Accounts Tatan Company Ltd
213 A, Okhla Industrial Estate Phase - 3
NEW DELHI 110020
M/36876
Mr Naveen Kumar, BCOM HONS,ACMA
House No 316 Pana Udhyan Narela
DELHI 110040
M/36877
Mr Ravi Prakash Sharma, MCOM,ACMA
2977, Uniyaron Ka Rasta, Third Cross
Chandpol Bazar
JAIPUR 302001
M/36868
Mr Manoj Kumar Gupta, BCOM,ACA,ACMA
142/25, Batashe Wali Gali Aminabad
LUCKNOW 226018
M/36878
Mr Manas Mishra, BCOM,ACMA
Plot No.1294/9, Nayapalli Near C R P F Square
Dist. Khurda
BHUBANESWAR 751012
M/36869
Mrs Sangeetha Srikanteswaran,
BCOM,ACMA
Senior Associate Ford Business Services
Center Pvt. Ltd No.143, Dr. M G R Road
Perungudi
CHENNAI 600096
M/36879
Ms Nandita Rani, BCOM,ACMA
Cost Accountant Balwinder & Associates F 125, Phase V I I I - B Industrial Area, Sector
- 74
MOHALI 160074
AUGUST 2014
M/36880
Mrs Shaveta Goyal, BCOM,ACMA
H. No. 423 Modi Mill Colony Railway Road
NABHA 147201
M/36881
Mr Naveen Kumar Chauhan, BBA,ACMA
# 1577, Sector - 49 B Pushpak Complex
CHANDIGARH 160047
M/36882
Mr Tapan Kumar Rout, BCOM,ACMA
Assistant Manager Patnaik Steels & Alloys Ltd
At - Purunapani, Post - Dabuna Nayagarh
KEONJHAR 752069
M/36883
Mr Ashu , MCOM,ACMA
Industrial Trainee Bhushan Steel Ltd 23, Site IV Sahibabad Industrial Area
GHAZIABAD 201010
M/36884
Mr Neeraj Kumar, MCOM,ACMA
# 7 A B V P O - Ugala Teh - Barara
AMBALA 133205
M/36885
Ms Prerana Jaideo Kotangale,
MCOM,MBA,ACMA
Accountant Rites Ltd 1, Rites Bhawan Kadbi
Chowk
NAGPUR 440004
M/36886
Mr Anupam Chakraborty, MCOM,ACMA
360, Jessore Road Shyama Prasad Colony
Lake Town
KOLKATA 700055
M/36887
Mr Saurav Basu, BCOM HONS,CFA,
MFA,ACMA
C/o. Sujoy Mitra 26 / 4 A, B N Ghosh Road
Belgharia
KOLKATA 700056
M/36888
Mr Maheshkumar Viswanathan,
MCOM,ACMA
Finance Executive Green & Gold Enterprises
Pty Ltd Suite 14 A, 203 Castlereagh Street
SYDNEY 2000
M/36889
Mrs Vengala V Vijayalakshmi, BCOM,ACMA
Executive Target Corporation Of India Ltd N P
-101, Sriram Spandana Apartments Chellagatta
BANGALORE 560017
www.icmai.in
M/36890
Ms Sneha Girdharilal Nathani, MCOM,ACMA
Plot No. 170, 1st Floor Sindhi Colony Jalna
Road
AURANGABAD 431005
M/36900
Mr Sunny Kumar Barnwal, BCOM
HONS,ACMA
Rajendra Chhatra Bhawan 34 A, Ratau Sarkar
Lane
KOLKATA 700073
M/36891
Mrs Preeti Bala Das, BCOM HONS,ACMA
A / 20 / 4, Subhash Marg 3rd Bye Lane Near
Behala Airport Road Parnashree
KOLKATA 700060
M/36901
Ms Mridula Shaw, BCOM HONS,ACMA
M R/12, Masjid Para Benachity
DURGAPUR 713213
M/36892
Ms Prabha Bantwal Pai, BCOM,ACMA
Assistant Manager Bosch Limited Post Box
No.3000 Hosur Road, Adugodi
BANGALORE 560030
M/36893
Ms Seema Kumari Dutta, BCOM HONS,ACMA
24, Bihar Colony P. S. - Chas
CHAS 827013
M/36894
Mr Yash Bachhawat, BCOM HONS,ACMA
7, Bansdroni Avenue Near Allahabad Bank
KOLKATA 700070
M/36895
Mr Sudip Debnath, BCOM HONS,ACMA
Asst. Manager (F & A) W B S E D C L Titumir
Bus Stand (West Side Terminus) Barasat, Dist
- North 24 Parganas
BARASAT 700124
M/36896
Mr Mahesh Balasaheb Satte, BCOM,ACMA
Cost Accountant Dhananjay V. Joshi &
Associates C M A Pride , Ground Floor, Plot
No.6 S. No.16/6, Erandawana Co-op. Hsg.
Society Erandawana
PUNE 411004
M/36897
Mr Sumit Singh, BCOM HONS,ACMA
B D - 34 A, Debarati Apartment Flat No. 4 A
Rabindra Pally Krishnapur
KOLKATA 700101
M/36898
Mr Subhasish Ghosh, BCOM,MBA,ACMA
D G M - Indirect Taxation Jindal Stainless Ltd
Post - Danagadi
JAJPUR 755026
M/36899
Mr Nesar Ansari, BCOM,ACMA
C/o. Md Ghulam Mustafa Ansari At - New
Azad Basti Road No.1, Bungalow Road
LOHARDAGA 835302
www.icmai.in
M/36902
Mr Sanjay Urmaliya, BSC,ACMA
Municipal Acc. Consultant I C F G H K Ltd 1st
Floor, Clerkenwel House 67 clerkenwel Road
LONDON EC1R 5BL
M/36903
Mr Uaddhav Mahadev Aage, MCOM,ACMA
Sr. Costing Officer Z F Steering Gear (I) Ltd
Gut No. 1242, 1244 Village Vadu Budruk Taluk
- Shirur
PUNE 412216
M/36904
Mrs Sowmya Srinivasan, MCOM,ACMA
Sr. Director Of Finance Thermo Fisher Scientific
200, Oyster Point
SOUTH SAN FRANCISCO 94080
M/36905
Mr Utsav Das, ACMA
Business Analyst Wipro Technologies Ltd No.
72, Electronic City Hosur Road
BANGALORE 560100
M/36906
Mr Anup Shekhar, BCOM,ACA,ACMA
Audit Team Leader Manmohan Singh & Co.
Vill - Kathara Post & Thana - Bermo Executive
Hostle
BOKARO STEEL CITY 829116
M/36907
Ms Priyanka Saha, BCOM HONS,ACMA
P. K. Textiles Cloth Merchant Motiganj Bazar
BALASORE 756003
M/36908
Mr Ravi Teja Gogula, BCOM,ACMA
Deputy Manager Bosch Limited Bosch Limited,
P O Box No 3000, Hosur Road, Nab 201/2,
Adugodi
BANGALORE 560030
M/36909
Mr Gurpreet Singh Malhotra,
MCOM,MBA,ACMA
Plot No.91, Navyug Block Mangal Bazaar,
Vishnu Garden Tilak Nagar
NEW DELHI 110018
AUGUST 2014
M/36910
Mrs Shweta Sharma,
MCOM,LLB,ACA,ACS,ACMA
Senior Finance And Accounts Officer Oil And
Natural Gas Corporation Limited 10th Floor,
Kailash Building 26, Kasturba Gandhi Marg
NEW DELHI 110001
M/36911
Mr Mohit Sinha, BBA,ACMA
Jr Mgr( F & A) Bokaro Steel Plant Project
Finance Deptt Administrative Building
M/36912
Ms Poojita Nalam, BCOM,ACMA
#10-16-45 Brahmin Street Vadapalli Vari Line
VIJAYAWADA 520001
M/36913
Mr Naga Venkata Krishna Mittapalli,
BCOM,ACA,ACMA
Finance Controller Krishnamurthy Spinning
Mills Pvt. Ltd N H - 5, Nadendla Road
Thimmapuram Mandal - Edlapadu
GUNTUR 855233
M/36914
Mr Manoranjan Sahoo, BCOM
HONS,LLB,ACMA
Accountant National Alluminium Company Ltd
Nalco Smelter Plant Finance Department
ANGUL 759145
M/36915
Mr Neeraj Kumar Mohata,
MCOM,MCA,ACMA
Sr. Manager Idea Cellular Ltd A - 68, Sector
- 64
NOIDA 201301
M/36916
Ms Upasana Ray, BTECH,ACMA
201, N. S. C. Bose Road Ram Vatika , Flat No.
314 - B
KOLKATA 700040
M/36917
Mr Abhishek Pandey, MCOM,ACMA
28, Ground Floor Narayan Chandra Sen Lane
Salkia
HOWRAH 711106
M/36918
Mrs Nirupma Verma, BCOM,ACMA
Assistant Manager - Finance I T C Limited Plot
No.3, Sector - 5 Manesar
GURGAON 122050
113
MEMBERS ADMISSION
M/36919
Mr Pradeep Kumar Jha, BSC HONS,ACMA
Sr. Manager Tata Teleservices Ltd D - 26, T T C
Industrial Area M I D C, Sanpada P O - Turbhe
NAVI MUMBAI 400703
M/36920
Mr Rajasekhar Vandana, BCOM,ACMA
Senior Associate Consultant Robert Bosch
Engineering And Busniess Solutions Ltd No 76,
77 Cyber Park Electronic City
BANGALORE 500100
M/36921
Mr Ashok Ramachandran, BA,ACMA
Senior Vice President Schope International Pvt
Ltd No.1, Haddows Road Asia Building, 2nd
Floor Credit Risk Control Department
CHENNAI 600006
M/36922
Mr Manohar Chowdary, BCOM,ACMA
Accounts Officer BHEL Corporate R & D Vikas
Nagar Near Balanagar
HYDERABAD 500093
M/36923
Mr Abhijit Chatterjee, MBA,ACMA
Propietor A C C A S P-23 B, Nanigopal
Roychowdhury Avenue C. I. T. Road
KOLKATA 700014
M/36924
Mr Neeraj Kumar Kola, BCOM,ACMA
44-34-28 / A, Nandagiri Nagar Akkayyapalem
114
M/36930
Mr Abhishek Agarwal, BCOM,ACA,ACMA
B - 2 Arya Nagar Extn. Murlipura
JAIPUR 302039
M/36931
Mr Ashutosh Vijaivargiya, BSC,ACA,ACMA
Senior Manager L& T Infotech Ltd Flat No
A-103 Shubhangan-3 Poonam Sagar Complex
MIRA ROAD (EAST) 401107
M/36932
Mr Shantaram Ravsaheb Botre,
BCOM,MCA,ACMA
Deputy Manager - Controlling Kirloskar Oil
Engine Ltd Laxmanrav Kirloskar Road Khadki
PUNE 411003
M/36933
Mr Rajesh Kumar Chopra, BA,ACMA
11/246, Geeta Colony
DELHI 110031
M/36934
Mr Jaya Raman C, BCOM,ACMA
Accounts Officer Bharat Heavy Electricals
Limited No.848/1 N H 210, 71 Thirumayam
PUDUKKOTTAI 622507
M/36935
Mr Kartik Kapoor, BCOM
HONS,MBA,ACA,ACMA
Finance Controller Manpower Group Services I
Floor, Building No. 10 B D L F Cyber City
GURGAON 122002
M/36925
Mr Vora Manan Pradipbhai, MCOM,ACMA
Manager Nirma Ltd Nirma House Income Tax
Circle
AHMADABAD 380009
M/36936
Mr Anuj Agarwal, BCOM,ACMA
Executive Director Planet Retail Holdings Pvt.
Ltd 403, Ackruti Star Central Road, M I D C
Andheri East
MUMBAI 400093
M/36926
Mr Deepak K Haridas, BCOM,ACMA
Cost Audit Assistant A.p.madhu & Associates
Kundoly House Kuttanellur P.o.
THRISSUR 680014
M/36937
Mr Pankaj Sood, BCOM,ACMA
K - 95, Shivalik Nagar B H E L Ranipur More
HARDWAR 249403
M/36927
Mr Ganapathy S, BCOM,ACMA
Sr. Manager - Finance M/s. Renault India Pvt.
Ltd No. 37/38, Venkatanarayana Road 4th
Floor, A S V Ramanas Towers T. Nagar
CHENNAI 600017
M/36938
Ms Aditi Govindrao Tambalkar, MCOM,ACMA
Cost Assistant Dhananjay V Joshi &
Associates C M A Pride , Ground Floor Plot No.
6, S No. 16/6 Erandawana Co-op. Hsg. Society
Erandawana
PUNE 411004
M/36928
Mr Sachin Kaushik, BCOM
HONS,MBA,ACMA
H. No. 316 Vill - Mungesh Pur Land Mark Balmiki Mandir
DELHI 110039
M/36939
Mr Gajraj Singh, BCOM,ACMA
Business Process Senior Consultant SAP India
Pvt Ltd S A P Office, Vatika Towers Sector - 54,
Golf Course
GURGAON 122002
M/36929
Mr Vishal Kumar Gupta, BCOM
HONS,CFA,ACMA
50 / 18, Shree Arvind Road Salkia
HOWRAH 711106
M/36940
Mr S Subramanian, BSC,ACA,ACS,ACMA
622, Block - 3 Manasarovar Heights Phase - 3,
Hasmat
SECUNDERABAD 500009
AUGUST 2014
M/36941
Mr Ravikanth Allam, BCOM,ACMA
Assistant General Manager Crompton Greaves
Limited 1st Floor, C G House Dr. Annie Besant
Road, Worli Near Old Passport Office
MUMBAI 400030
M/36942
Mr Satya Hanuman Dhulipala, BCOM,ACMA
Ams Center Associate 6 Deloitte Consulting
Llp~ One Technology Center Suite 700, 7th
Floor
OKLAHOMA 74103
M/36943
Mr Sanal S, MCOM,ACMA
Vinod Bhavan Near Timber Dipot Kulathupuzha
KOLLAM 691310
M/36944
Ms Shanta Bajrang Wangde, BCOM,ACMA
Executive - Costing F D C Ltd 142 - 48, S. V.
Road Jogeshwari (West)
MUMBAI 400102
M/36945
Mr Ankit Goyal, BCOM HONS,ACMA
Patram Dass Hira Lal Shop No. 42, New Grain
Market
TAURU 122105
M/36946
Mr Gurpreet Singh, BCOM,ACMA
General Manager - Insurance Ranbaxy
Laboratories Ltd Plot No.89-91, Sector - 32
Institutional Area
GURGAON 122001
M/36947
Mr Bhushan Nimba Rane, BCOM,ACMA
C/o. Mayur N. Rane 'Golden Petals' C - Wing,
Flat No.801 Warje Naka, Karve Nagar
PUNE 411052
M/36948
Mr Satyajit Rao, BCOM,ACMA
Dev Gandhaar Apartments, Flat No. 401 105,
Shivaji Nagar
NAGPUR 488101
M/36949
Mr Uttam Kumar Singh, MCOM,ACMA
Financial Controller Emrill Services L L C Post
Box No.38083 Ras Al Khor
DUBAI 38083
M/36950
Mr Nilesh Bhaskar Kekan, MCOM,ACMA
Cost Accountant Dhananjay V. Joshi &
Associates C M A Pride , Ground Floor, Plot
No.6 S. No.16/6, Erandawana Co-op Hsg.
Society Erandawana
PUNE 411004
www.icmai.in
THE INSTITUTE OF
COST ACCOUNTANTS OF INDIA
ADVANCEMENT TO FELLOWSHIP
DATE OF ADVANCEMENT 20th July 2014
M/8447
Ms Aruna Sethi, BA HONS,M PHIL,FCMA
Advisor (Cost), M/o Corporate Affairs, B-1
Wing Second Floor Paryavaran Bhawan CGO
Complex
NEW DELHI 110003
M/10992
Mr Ravi Sangam Aiyar, BCOM HONS, LLB,
FCS, FCMA
Executive Director (Legal) & Company
Secretary Maruti Suzuki India Limited Plot No.
1 Nelson Mandela Road Vasant Kunj,
NEW DELHI 110070
M/16448
Mr Mahaveer Nagori, BSC,MBA,FCMA
Proprietor - Practicing Cost Accountants,
M Nagori & Associates, 218-219, 2nd Floor
Anand Plaza, Ayad Bridge
UDAIPUR 313001
M/18321
Mr Nithiyanantham , BSC,FCMA
3/716, Avin Nagar, Surveyor Colony,
MADURAI 625007
M/24719
Mr Sanjeev Kumar Masown, MCOM,FCMA
Chief Financial Officer K D D L Limited S C O
88-89 Sector 8- C
CHANDIGARH 160009
M/25891
Mr Rajeev Gupta, BCOM HONS,ACA,FCMA
Sr. Manager (F&A) M/s Steel Authority of India
Ltd. Finance & Accounts Department Adm
Building
M/27404
Mr Prakash Sharma Viswanadha,
MCOM,MBA,FCMA
Assistant Professor, Dept Of Mgt Studies
Sri Sathya Sai Institute Of Higher Learning
Prasanthi Nilayam Campus Vidyagiri
Anantapur District
PUTTAPARTHI 515134
M/27820
Mr Asutosh Debata, BCOM,FCMA
Partner Cost Accountants Asutosh &
Associates N - 4/232 (1st Floor) I R C Village
Backside of Reliance Fresh
BHUBANESWAR 751015
M/27841
Mr Ravi Dutt Dabral,
BCOM,LLB,FCS,MBA,FCMA
SRA-38-D, Shipra Riviera, Gyankhand-3,
Indirapuram
GHAZIABAD 201010
www.icmai.in
M/27912
Mr Jatindranath Sahu, BCOM,CIMA UK,FCMA
Sr. Asst. Manager (Accounts) The India
Cements Ltd. Parli Grinding Unit Dharmapuri
Road Po. No. 22, Parli- V Dist.- Beed
PALI 431515
ADMISSION TO ASSOCIATESHIP
DATE OF ADMISSION 20th July 2014
M/36951
Mr Nithin Alimi, BCOM,ACMA
No.12/8, Second Floor Saiva Mutiah 4th Street
Royapettah
CHENNAI 600014
M/36952
Mr Rajinikanth T, BCOM,ACA,ACMA
Melmangkuppam Post - Melmoil Taluk Katpadi
VELLORE 632203
M/36953
Mr Nitin Balasaheb Fatangare, MCOM,ACMA
Sr. Officer Videocon Industries Ltd. 14 Km
Stone Village Chitegaon Paithan Aurangabad
Road Taluka - Paithan
AURANGABAD 431105
M/36954
Mr Bhavin Arvind Joshi, BCOM,ACMA
Product Manager - Trade & Forex Indusind
Bank Ltd. Indusind House 425, Dadasaheb
Bhadkamkar Marg Grant Road East
MUMBAI 400 004
M/36955
Ms Tejaswi Gurrala, BCOM,ACMA
Asst Manager (Finance) Central Mine Planning
And Design Institute Ltd Qtr. No. D -18 C M P D
I Complex Kasturba Nagar, Jaripatka
NAGPUR 440014
M/36956
Mr Manoj Kumar Sheoran, MCOM,ACMA
Head Of Revenue Assurance Airtel Rwanda
Limited Remera, Gasabo Po Box 4164 Kigali,
Rwanda
GURGAON 122001
M/36957
Mr Nitin Goyal, BCOM,ACMA
1/67 Rajasthan Housing Board Colony
HANUMANGARH 335512
M/36958
Mrs Saritha Eldandi, MCOM,MBA,ACMA
H. No. 1-2-606/138 Bandamaisamma Nagar
Near Indira Park
HYDERABAD 500080
M/36959
Mr Pandurangan B, BCS, ACMA
333, Aankan Apartments Roynagar Place
Bansdroni
KOLKATA 700070
AUGUST 2014
M/36960
Mr Biswajit Das, MCOM,ACMA
Accountant Ganguly Home Search Pvt. Ltd
167, Garia Station Road
KOLKATA 700084
M/36961
Mr Dileep Sai Raghumanhanti, BCOM,ACMA
Manager Genpact Plot No.11 Visakha B Colony
SRIKAKULAM 532001
M/36962
Ms Gauri Rana, BCOM,ACMA
109, D D A Flats Tigri
NEW DELHI 110062
M/36963
Mr Vaibhav Kalra, BCOM,ACMA
Accounts Officer Flat No. 301, 3rd Floor
Samta Appartments, Plot No. L-6/ A Mahavir
Enclave, Palam
NEW DELHI 110045
M/36964
Mr Sandeep Nautiyal, BCOM,ACMA
Accountant Telecommunication Consultants
India Limited T C I L Bhawan Greater Kailash - I
NEW DELHI 110048
M/36965
Mr Karthick S, BCOM,ACMA
Senior Team Leader - Reconciliations Dept.
Ford Business Services Center Pvt Limited K C
Tech Park Saravanampatti
COIMBATORE 641035
M/36966
Mr Arvind Kumar Bansal, MCOM,ACMA
Ramjyout Bhawan Agarwal's Mohalla Station
Road
BARMER 344001
M/36967
Mr Azhagesan Mariappan, BCOM,ACMA
7/96, Mettur Street Pakkanadu Post Edappadi
(Tk)
SALEM 636501
M/36968
Mr Deepak Gupta, BCOM,ACMA
C - 32, S M - 2, Swastik Appartment Shalimar
Garden, Extn.-2 Sahibabad
GHAZIABAD 201005
M/36969
Mr Sudipto Kanui, BCOM HONS,ACA,ACMA
Manager Inkwest Management Consultants
(P) Ltd 16 A, Shakespeare Sarani 3rd Floor
KOLKATA 700071
M/36970
Mr Rajeev M G, BCOM,ACMA
Assistant Manager Hyundai Motor India
Ltd Plot No. H1, Sipcot Industrial Park
Irrungattukottai, Sriperumbudur Taluk
KANCHEEPURAM 602117
115
MEMBERS ADMISSION
M/36971
Mr Pradeep Kumar Chand, MCOM,ACMA
Chief Manger ( F & A) Brahamaputra Cracker &
Polymer Limited Chiring Chopari Jeyoti Moral
L P School
DIBRUGARH 786001
M/36972
Mr Devarachitty Santosh, MCOM,ACMA
Accountant Caterpillar India Pvt Ltd Power
System Division Poonapalli - Villege
Mathagondapalli - Post
HOSUR 635114
M/36973
Mr Puneet Mahendra, BCOM,ACMA
510 G F Sec - 22 B
GURGAON 122015
M/36974
Mr Inderjeet Singh, BCOM,ACMA
Asst. Manager (F) Indian Oil Corporation Ltd.
Indian Oil Bhawan Yusuf Sarai Aurobindo Marg
NEW DELHI 110016
M/36975
Mrs Medha Vinayak Kulkarni, BCOM,ACMA
Sr. Manager - Finance Bharat Forge Ltd
Mundhwa
PUNE 411036
M/36976
Mr Ajeya Kumar Tripathi, BA,LLB,ACMA
Manager Jindal I T F 28, Shivaji Marg Inderlok
NEW DELHI 110028
M/36977
Mr Bharat Jaiswal, MBA,ACMA
C - 208 Sapthagiri Maharshi Residency C. V.
Raman Nagar Nagavarapalaya
BANGALORE 560093
M/36978
Mr Binod Kumar Sahoo, BSC,ACMA
Assistant Manager Genpharma International
Pvt Ltd C - 7 - 8(2), Bhosari
PUNE 411026
M/36979
Mr Sathish Kumar, BCOM,ACA,ACS,ACMA
Senior Manager - Finance Gilbarco Veeder Root
India Pvt Ltd P D P Manufacturing Facility S F
No. 628/2, 672/2 W 4 - Coimbatore Campus
Malumitchampatti
COIMBATORE 641021
116
M/36982
Mr Mohit Singhal, BCOM HONS,ACMA
Accountant I R E D A Limited 3rd Floor August
Kranti Bhawan Bhikaji Cama Place
NEW DELHI 110066
M/36983
Mr Vishnu Kumar, MCOM,ACMA
H. No.20-3-576/1 Hussaini Alam Tara Maidan
HYDERABAD 500064
M/36984
Mr Kannan P R, BCOM,ACMA
A V P Barclays Shared Services (Pvt) Ltd D L
F - I T Park, Block - 9A
CHENNAI 600004
M/36985
Mr Srinivasan Krishnan, BSC,ACA,ACMA
Regional Manager Finance Tyco Electronics
Middle East Fze Dubai Airport Free Zone
Building 5 W B, No 532
DUBAI 371804
M/36986
Mr Murtuza Hussain, BCOM,ACMA
Senior Accountant Tebodin Middle East Ltd.
2nd Floor, Ahmed Ghanem Mazroi Building
Hamdan Street
ABU DHABI 2652
M/36987
Mr Loganathan Rajesh, BCOM,ACMA
114, Lenin Street Duraisamy Kadu Nadar Medu
ERODE 638002
M/36988
Mr P Y S V Subrahmanya Varma,
BCOM,ACMA
1-10-5, Adarshnagar Street - 2
BHIMAVARAM 534202
M/36989
Mr Bibek Chowdhury, BSC,ACMA
Sr. Manager Ricoh India Limited 2nd Floor,
Salcon Aurum Building Jasola District Centre
NEW DELHI 110025
M/36990
Ms Rinku Gandhi, BCOM HONS,ACMA
Associate Manager - Finance Ratna Sagar (P)
Ltd Virat Bhawan, Mukherjee Nagar
NEW DELHI 110009
M/36980
Mr Malipeddi Narendar, BCOM,MBA,ACMA
Officer - Costing Pennar Industries Limited
Industrial Development Area Patancheru Dist.
Medak
HYDERABAD 502319
M/36991
Mrs Ramya Prakash, BCOM,ACMA
W/o. Prakash 202, S L V Sunshine Apartment
1st Cross, Vijaya Bank Colony Dodda
Banaswadi
BANGALORE 560043
M/36981
Mrs Revathy Ramasamy, BCOM,ACMA
S 1, Saai Sneham Apartments 74, 8th Street,
Anbu Nagar Valasaravakkam
CHENNAI 600087
M/36992
Mr Shobit Khandelwal, BCOM,ACMA
Faculty Member Institute Of Economics B 319/320, Khyala Navjeevan Model School
NEW DELHI 110018
AUGUST 2014
M/36993
Mr Mayank Gupta, MCOM,ACMA
6/319, Gupta Bhawan Diggi Mohalla
BEAWAR 305901
M/36994
Mrs Subha Sankaran, MCOM,ACMA
Finance Analyst Misys Software Solutions
1st Floor, Eagle Ridge Embassy Golf Links
Business Park Off Intermediate Ring Road
BANGALORE 560071
M/36995
Mr Patel Parag Virchandbhai, MCOM,ACMA
Manager (Accounts & Cost) Nirma Ltd Nirma
House Income Tax Circle Ashram Road
AHMEDABAD 380009
M/36996
Mr Anantha Narayanan Natarajan, BSC
HONS,ACA,AIFS(UK), FRM(US),ACMA
Head Of Internal Audit S I C O Investment Bank
B M B Building Diplomatic Area P B - 1331
BAHRAIN 1331
M/36997
Ms Pavitra Dhandapani, BCOM,ACMA
Sr. Accounts Officer Bharat Heavy Electricals
Ltd. 24 Building Tiruvermbur
THIRUCHIRAPPALLI 620014
M/36998
Mr Raijohn Kundukulangara, BCOM,ACMA
Kundukulangara House Thrikkur - P O
THRISSUR 680306
M/36999
Ms Mukta Poddar, BCOM HONS,ACMA
498, M B Road Birati (Behind Bata)
KOLKATA 700051
M/37000
Mr Sanjiv Kumar Sahu, BCOM HONS,ACMA
A S A T C S S D F Building, 3rd Floor Sector - V
Salt Lake
KOLKATA 700090
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The proforma, duly filled in, may
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www.icmai.in
All authors are requested to keep to the word limit of 15002000 words for articles. Those who have already sent their articles are
also requested to revise their articles and send them to us within the word limit.
INSTITUTE NEWS
Eastern India Regional Council

Bhubaneswar Chapter of Cost Accountants
he Chapter organized a seminar on the theme The

Companies Act & Rule, 2013 on July 6, 2014. CMA
Dr. S.K. Gupta, Director (Technical), of ICAI, being the
chief speaker discussed on Company Incorporation,
Board of Directors, Company Meetings, Independent
Director, Accounts & Audit and Scope of Cost Accountants under The New Companies Act & Rule, 2013.
CMA S.S. Sonthalia, Past Chairman, EIRC of the Institute, & Moderator of the technical session deliberated on
the Companies (Cost Records and Audit) Rules, 2014.
Practicing members, invitees along with all the members
of the managing committee participated in the seminar.
On July 13, 2014 the Chapter organized a panel discussion on Union Budget 2014-15 at its conference hall.
Shri S. K. Srivastava, IRS, Principal Chief Commissioner
of Income Tax, Bhubaneswar was the Chief Guest and
deliberated the changes made both in Indirect and Direct
Taxation in the Union Budget 2014-15. CA A.K. Sabat,
a leading Tax Consultant and Budget Analyst in Odisha
was the Guest Speaker and CMA Niranjan Swain, G.M
(Finance), OPGC Ltd, Bhubaneswar was the Resource
Person on the occasion. They deliberated on Direct
Taxation and Union Budget-2014-15 & its impact on
individual and industry and Indirect Taxation & Union

Budget 2014-15 & its impact on Indian Economy respectively. It was an interactive session and attended by
more than 100 members, Managing Committee Members & Invitees. CMA S.P. Kar, Chairman, PD Committee of the Chapter, CMA Manas Ranjan Lenka, Chairman of the Chapter were among the members present in
both the occasions and made the event a delightful one.
CMA Damodar Mishra, secretary of the Chapter ended
the programmes with his formal vote of thanks.
Guwahati Chapter of Cost Accountants
n July 5, 2014 the Chapter organized an inaugural function of oral coaching session. Chairman
of the Chapter, CMA Swapan Kumar Saha briefed the
students about the introduction of cost accounting, historical background of the Institute as well as the Chapter. CMA Rana Bose, immediate past chairman of the
chapter, CMA P.L. Kanoi, practicing cost accountant and
CMA Sankar Majumdar, Treasurer of the chapter as well
as a cost accountant in practice, discussed about the scope
and prospects of the course and also motivated the students to pursue the same with full vigour and confidence.
CMA Rupom Sharma, one of the faculties also encouraged the students and made them understand with appropriate illustrations to keep faith on a well versed cost
accountant in practice. The session was quite interactive
and attended by about 35 students and 15 members. On
July 12, 2014 the Chapter organized a seminar on the
topic Union Budget 2014. CMA Mrityunjay Acharjee, Associate VP (Finance) of Balmer Lawrie & Co Ltd.,
Kolkata being the keynote speaker delivered the speech
118
AUGUST 2014
on the said topic covering all the aspects of Direct Taxes

and Indirect taxes and its impact on the following years to
come. CMA Rana Bose, immediate past chairman of the
Chapter introduced the brief academic and professional profile of the speaker Shri Acharjee. CMA Mukesh
Sharma, secretary of the Chapter ended the seminar with
his formal vote of thanks.
www.icmai.in
Northern India Regional Council

Faridabad Chapter of Cost Accountants
he Chapter organized a members-students meet in

association with NIRC and made a discussion on
Emerging fields/Challenges ahead in CMA Profession
on June 15, 2014. The meet was opened by an excellent speech by chairman, Faridabad Chapter, CMA Adish
Suri, who highlighted the achievements and activities of
the Chapter. He shared his valuable views on the topic of discussion. CMA Rakesh Bhalla NIRC chairman
discussed the opportunities for CMAs in the emerging
fields with the members and students and shared his
excellent views. Central Council Member, CMA Sanjay Gupta resolved beautifully the queries raised by the
members and the students. Around 75 members/students
attended the event which earned the members 2 CEP
points. The event ended with a vote of thanks by CMA
Sunil Kumar, Secretary of the Chapter. On July 6, 2014
the Chapter restarted its inaugural session of oral coaching/computer training/GDBC with kind support from
NIRC. CMA Adish Suri, chairman, Faridabad Chapter,
described the students in details regarding the value of

profession, opportunities for CMAs and career path. He
also discussed the schedule of oral coaching, Computer
training, GDBC, Seminars and Industry exposure plans.
Kota Chapter of Cost Accountants
n June 29, 2014 the Chapter organized inaugural

function of new oral coaching session for the term
July-December, 2014. CMA S.N. Mittal, Director Coaching, discussed in details about the CMA course. CMA Vinod Jhalani,Treasurer of the Chapter explained about the
benefits and future opportunities of the CMA profession.
CMA Rajendra Natani, secretary of the Chapter ended
the programme with a proposed vote of thanks.
Southern India Regional Council

Trivandrum Chapter of Cost Accountants
joint meeting on ASAP-CAT with Government of Kerala ASAP officials, ICAI Chapters of
Kerala & ROCCS of Kerala was held by the Chapter
on June 21, 2014. CMA M Gopalakrishnan, CMA
TCA Srinivasa Prasad, Council Members, CMA H
Padmanaban, Vice Chairman , SIRC and Chairman
SBAT, CMA L Gurumurthy, Director CAT, Shri C.
Madhusudhanan, Head, Quality ASAP, Government
of Kerala, representatives from Chapters and ROCCs
of Kerala participated in the meeting. Shri C. Madhusudhanan, Head, Quality, ASAP, Government of
www.icmai.in
AUGUST 2014
119
INSTITUTE NEWS
Kerala elaborated the requirement of imparting quality training and the quality frame work measures taken
by them to attain it. The session was led by CMA
TCA Srinivasa Prasad, Council Member and he made
almost all the faculties to speak about their experience
with students, the course material, method of coaching etc. The dignitaries present over there stressed the
need of the CAT examination and spoke about the
latest development in the coaching/ arrangement for
the CAT exam, and online mock test for the students
etc. Queries of the trainers were clarified by CMA M
Gopalakrishnan and CMA TCA Srinivasa Prasad and
also informed points discussed by them with ASAPCAT officers of Government of Kerala as to various
aspects of the ASAP-CAT students. On June 24, 2014
the Chapter conducted a one day Seminar on Service
Tax and Reverse Charge Mechanism and was led by
CA Tony M.P. FCA, DISA (ICA), Practicing Chartered Accountant. He discussed various points of Service Tax regulations, Cenvat credit, Reverse Charge
Mechanism etc. CMA Venugopal S. IPTAFS, Director
(Finance), KSEB Ltd. inaugurated the seminar and
briefly discussed on the confusion prevailing among
corporate regarding Service Tax regulations. Delegates from 15 corporates, practising and employed
members and students participated in the seminar and
clarifications were sought on various points. CMA S
Veerapudran, secretary of the chapter concluded the
programme with a vote of thanks.
Tiruchirapalli Chapter of Cost Accountants
he Chapter inaugurated 81st Oral coaching session and orientation class for students appearing
for December 2014 examination on June 22, 2014.
The chief guest CMA T Ananthasayanam, AGM-Finance, BHEL, Trichy inaugurated the oral coaching
classes for both foundation and intermediate courses. He emphasized the need and role of the CMA
profession in all fields like Industry, business, government etc and advised the students to concentrate on
the latest changes and developments in taxes, duties
apart from covering the CMA course. Prof. G. Balakrishnan, former Vice Principal of St. Josephs College
and quiz master, also well known career counseling
and communication skill expert, motivated the students to inculcate a sense of self confidence and improve communication skill to achieve better results in
the examination.
120
AUGUST 2014
Vishakhapatnam Chapter of Cost Accountants
n June 8, 2014, the Chapter conducted the classes for the session June-Dec 2014. CMA P. Suresh,
IRAS, Sr. Divisional Finance Manager, Waltair Division
of East coast Railway was the chief guest of the programme who explained about the importance of Cost
and Management Accountancy course and also its necessity in the current competitive scenario. The SIRC
Member CMA K. Sanyasi Rao, discussed about the future prospects of the CMA course. Over 72 students,
7 faculty members attended the session being presided over by CMA Prakash Uppalapati, chairman of the
chapter. CMA Harinarayana Tankala, secretary of the
chapter proposed the vote of thanks. On June 22, 2014
the chapter organized a Professional Development Meet
on Andhra Pradesh State Re-Organization Act 2014
and VAT & CST Implications at its premises. Dr K. Hari
Babu, Honorable Member of Parliament from Visakhapatnam being the chief guest addressed the members on
various issues on the AP Re-organization. Sri T. Siva
Sankara Rao, Deputy Commissioner (Commercial Taxes),Visakhapatnam highlighted the implications of Value
Added Tax (VAT) and Central Sales Tax (CST) on the
industry and the consumers at large. On July 7, 2014
the chapter inaugurated the classes for their Foundation
Course at its premises.The chief guest CMA D. Zitendra
Rao, Practicing Cost Accountant, Hyderabad, congratulated the students for joining the Professional course
and emphasized the importance of Cost Accountancy
profession He also gave a detailed introduction to the
subjects. CMA K. Sanyasi Rao, addressed the students
and provided details of the institute and the importance
of this course in the industry as well as to the society.The
chairman of the chapter, CMA U. Prakash explained
about the course details. CMA C. S. Sundara Murthy,
member of chapter proposed the vote of thanks
www.icmai.in
Western India
Regional Council
Aurangabad Chapter of Cost Accountants
Surat South Gujarat Chapter of Cost Accountants
A
O
n July 15, 2014 the Chapter organized a full day

seminar on post changes in Excise, Customs, Service Tax and Income Tax. CMA Ashok B. Nawal (MD of
BIZSOL India Pvt Ltd) explained the impact of budget
in details for optimum benefit of all participants and also
explained the practical issue for compliance by SEZ and
DTA units. Shri Subhash Patel, Secretary AIA, attended
the seminar and appreciated the same. He also provided
necessary assurance and support from AIA in conducting such seminars. CA Surendra Rakhecha described the
impact of Direct Taxes.The whole programme had been
coordinated by CMA R.K.Rathi,Vice Chairman of the
chapter.
ATTENTION MEMBERS!
Annual membership fee for FY 2014-15 became due for

payment w.e.f. 1st April 2014, the last date of which is 30th
September 2014.
Members are requested to kindly make payment of their
prescribed membership fee without waiting for the last date of
payment.
ATTENTION MEMBERS!
Members are hereby requested to intimate the Transaction ID,
Date of payment, amount deposited and membership number
to membership@icmai.in and finance.arijit@icmai.in for
membership fee payments made through Bank by NEFT.
In case of payments made directly by organizations to the
Institute's bankers on behalf of the members, the details of the
same may also be intimated to the above mentioned mail IDs
as soon as the payment is made by the organization concerned.
www.icmai.in
s per the Chapter news item date, June 2, 2014, it organized a felicitation function to celebrate and boost
up the successful students of the December 2013 Examination. The chapter on the same day also organized inauguration function of oral coaching of the current session.
Shri Munish Sharma, Director General MIT, Aurangabad
was the chief guest and Shri Sanjeev Shelar, Consulting
Structural Engineer, USA was the guest of honour of
this programme. Shri Munish Sharma and Shri Sanjeev
Shelar both advised the students and provided necessary
guidance for achieving success in the examination. CMA
Pravin Mohani, chairman of the chapter, briefly narrated
the scope and opportunities of the CMA Profession. CMA
Sunilkumar Maniyar, vice chairman of the chapter and
CMA A. R. Joshi, Ex. Chairman of Training Committee
narrated about the achievements of the training committee & provided guidance for completion of CMA Course.
The programme was attended by a large number of students & their parents and CMA Vaibhav Argade, secretary
of the chapter proposed a vote of thanks.
NON-RECEIPT OF THE MANAGEMENT

ACCOUNTANT JOURNAL
This is for the information of members who fail to receive
the management accountant journal despatched to them
either due to un-intimated change of address or postal
problems. Such addresses of the members whose journals
have been returned undelivered are regularly hosted on the
website of the institute (www.icmai.in) under the 'Journal'
section.
Please inform the membership department immediately
any address update to ensure regular and timely delivery of
journals to you. Members can also update their addresses
online in the members section. The new address gets
automatically updated in the centralized data base of the
institute, from where the journal mailing list is prepared.
Any queries or complaints in this regard can also be sent by
email at journal@icmai.In.
AUGUST 2014
121

(Statutory Body under an Act of Parliament)
ISSN 0972-3528
Registered KOL RMS/139/2013-2015

Publication date: 10 August 2014 RNI 12032/66

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SPECIAL FOCUS

THE JOURNAL FOR CMAs

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The Institute of Cost Accountants of India

The Institute publishes The Management

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The CMA Professionals would ethically drive

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Director (Discipline) and

IDEALS THE INSTITUTE STANDS FOR

to develop the Cost and Management Accountancy profession

Behind every successful business decision, there is always a CMA

THE MANAGEMENT ACCOUNTANT

AUGUST 2014 VOL 49 NO. 8 `100

The Management Accountant,

THE MANAGEMENT ACCOUNTANT

Cost & Management

CAS a Must for Cost

CAS a USP for CMAs

INTERVIEW: CMD K R KAMATH

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THE MANAGEMENT ACCOUNTANT

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THE MANAGEMENT ACCOUNTANT

The Institute of Cost Accountants of India

Call for Research Papers/Articles for

Guidelines to submit full Paper

Soft copy of the full paper should be submitted in double space, 12

Papers must be received within 3Ist October, 2014 at the

THE MANAGEMENT ACCOUNTANT

OUR NEW PRESIDENT

CMA DR A S DURGA PRASAD is an accomplished executive with over 37

OUR NEW VICE PRESIDENT

THE MANAGEMENT ACCOUNTANT

MUST MAKE COST & MANAGEMENT

CMA Dr A S Durga Prasad

My Dear Professional Colleagues,

Cost Records and Audit Rules 2014