Friday, May 6, 2011

Please act to save the small and medium CAs in practice

Dear all,
Find below a very important message from CA. Prasanth Srinivas,Kottayam, for the entire CA profession. Please go through it and sentyour view at the earliest to ICAI.This is the time for us to reprent our view.Sent reply to ICAI by mail and also by Regd Post.

Thank you,
TONY M P


Dear Sir,

As we all know small and medium CAs in practice (SMPs) form the backbone of the Indian Accountancy profession. Of late dearth of aritcled assistants has posed a serious manpower (quality manpower) crises for SMPs. Thanks to ICAI's system of education and training.Recently, our President constituted a study group to look into the problem and to give its recommendation.

One of their recommendations, that adds to our woes, is "It was decided to recommend that both graduates as well as CPT passed students would be allowed to commence their articleship only after passing either of the Groups of IPCC Examination. " This recommendation is now available on public domain for our comments. Please give your strong comments against this recommendation so that the SMP sector of our profession is saved.

That is to say, it is a situation of 'act or perish'. Please circulate this to as many CA friends as possible and get their comments by 9th may 2011. The comments may be e-mailed to: http://us.mc1617.mail.yahoo.com/mc/compose?to=psdos@icai.org; http://us.mc1617.mail.yahoo.com/mc/compose?to=rajeshbhalla@icai.org; http://us.mc1617.mail.yahoo.com/mc/compose?to=sirc@icai.in; http://us.mc1617.mail.yahoo.com/mc/compose?to=vijaykapur@icai.org; A sample comment is given below for your kind perusal, which can be copied and pasted in your e-mail browser after necessary corrections / editing. Thereafter, please mail it to the e-mail addresses mentioned above.Please note that more mails means our cause is well represented.

Thanks and regards--

CA. PRASANTH SRINIVAS B.Com., F.C.A, A.I.C.W.A, D.I.S.A (ICAI)Partner, S. S. AYYAR & CO., Chartered AccountantsAjantha, Thirunakkara West, Temple RoadKottayam - 686 001Phone: 0481 - 258 2053, 258 2836, 258 2960E-mail: http://us.mc1617.mail.yahoo.com/mc/compose?to=ssayyarandco@gmail.comGo Green...!!! Print this document ONLY on compelling needs
The Institute of Chartered Accountants of India
New Delhi

Draft Recommendations of the Group constituted to Review the Entry Requirement for Chartered Accountancy Course


Proposal I: Exemption to Graduates/CWAs/CSs from appearing in Common
Proficiency Test (CPT)

The Group felt that the present scheme of 10+2 examination or its equivalent as the minimum entry qualification is quite appropriate as this is the stage when a student generally decides about the career which he/she wants to pursue. In the present scheme, the entry level is only through the CPT route. However, it was felt that the graduate students who intend to pursue the Chartered Accountancy Course should be given exemption so as to give due consideration to the knowledge gained by them during their degree course. Keeping in view of the fact that a large number of students join the Chartered Accountancy course through the graduation stream having varying degrees of educational standards in different subjects or combination of subjects or having different nomenclatures like Bachelor of Business Administration (BBA), Bachelor of Business Finance (BBF), Bachelor of Management Studies (BMS), Bachelor of Business Economics (BBE), etc, it was recommended that graduates who have studied any three full papers of 100 marks each out of Accounting, Auditing, Law, Economics, Management and Taxation may be considered as “Commerce Graduates”.

Recommendation of the Group

Common Proficiency Test (CPT) may be exempted for candidates who –
(i) are commerce graduates/post-graduates and have studied any three full papers of 100 marks each out of Accounting, Auditing, Law, Economics, Management and Taxation and passed the graduate/post-graduate examination by securing in the aggregate a minimum of 50% of the total marks.
(ii) are non-commerce graduates/post-graduates who have passed the graduate/post-graduate examination by securing in the aggregate a minimum of 55% of the total marks in the examination,
(iii) have passed the Final examination conducted by the Institute of Cost and Works Accountants of India or by the Institute of Company Secretaries of India, set up under the Cost and Works Accountants Act, 1959 (23 of 1959) or the Company Secretaries Act, 1980 (56 of 1980) respectively.

Views/Suggestions/Comments
This is a welcome recommendation.













Proposal II: (i) Candidates who are exempted from CPT be allowed direct entry
to articleship; or
(ii) Enrolment to Articleship after passing either of the Groups of
IPCC Exam.

The issue deliberated upon was whether such students who are exempted from appearing CPT should be allowed direct entry to articleship without waiting to clear IPCC Group I as is being the case of CPT qualified students, who have to clear Group I of IPCC before commencement of their articleship. Members were of the opinion that providing the abovementioned persons direct entry to articleship would not be fair to the CPT cleared students. It was also felt that earlier when the abovementioned persons were allowed direct entry to join articleship, though there were a huge number of articles but the requisite quality for articleship was missing. Therefore, if the abovementioned persons would also be allowed to commence articleship only after passing either of the Groups of IPCC examination, then the quality of students would improve. Also, non-commerce graduates do not have prior exposure to subjects such as income-tax, accounting, auditing etc which are part of the IPCC syllabus, and thus it would be difficult for them to integrate their theoretical knowledge with practical training. Hence it was felt that such students should not be allowed direct entry to articleship.

The Group further noted that the requirement for commencement of articles only after passing Group I of IPCC examination might be restricting the number of students joining the practical training. The Group also noted that the Council, at one of the meetings held last year, has allowed PE-I students, who have passed either of the Groups of PE-II, to commence their articleship. Hence, it was considered that students may be allowed to enter into practical training after passing either of the Groups of IPCC.

Recommendation of the Group

It was decided to recommend that both graduates as well as CPT passed students would be allowed to commence their articleship only after passing either of the Groups of IPCC Examination.


Views/Suggestions/Comments
This recommendation by the group may kindly be withdrawn. Instead, it may be recommended that
1. All CPT passed students and graduates etc. exempted from passing CPT exam (refer your proposal no. I) shall be allowed to commence articleship forthwith;
2. Articleship training shall be made for 3 ½ years
3. It must be made mandatory that IPCC exam can be written only after completing at least 1 ½ years of articleship training and final examination only after completing 3 years of articleship training.



Proposal III: Provisional Registration for Students pursuing Graduation

The Group felt that for attracting the students who are pursuing their Graduation course, students may also be allowed to register for IPCC Course provisionally during their final year of graduation. This was considered keeping in mind the fact that the graduate students are late entrants to the Chartered Accountancy course and should be given an opportunity to appear for the IPCC Examination as soon as they appear in their graduation course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.


Recommendation of the Group

It was decided to recommend the students pursuing their final year of graduation, to be allowed for provisional registration to the IPCC course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.


Views/Suggestions/Comments

In view of my recommendation under proposal II, this proposal, in my view, is redundant. However, it is a welcome recommendation for the transitional period.






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