One shot success in CA

ONE SHOT SUCCESS IN CA
A Crispy Motivational Dose

Specially written for CAclubindia users.

CA Course : A Dream of Every Commerce Student

From initial level till qualification; there is no difference between Cricket and Chartered Accountancy Course. Despite having tough net-practice; either your performance is outstanding or you are out in the very first ball. You have seenVirendra Sehwagbeing out in very first ball; but it does not mean that he is not a performer. Similarly; the students who pursue CA course; despite having abilities; are unable to perform well initially. A student “qualifies” accountancy in XI, XII, CPT, B.Com, IPCC but such 30% “qualified” students fail in the very first paper of Accountancy in CA Final !Whereas this is the core subject for all of them. On the basis of interest in accountancy; they joined this course !

So we are forced to think about some peculiarities of Chartered Accountancy Profession. Although; after qualification of CA; there is only repeated performance and no question of failure ! In this sense; it is better than Cricket.

Major Mistakes Committed By Students:

Mostly asked question is – “Which book is good to pass a particular subject ?” This is the story of CA Final Students!Whereas the Institute expects that these students will be able to solve the problems of the clients.It does not mean that students should not ask questions regarding good materials. What I want to say is - at the initial level of CPT; guide should be taken for the whole CA Profession. It is my experience that students come to know only about CPT. Despite explaining them that CPT is not the only criteria to get success in CA. The real test will start soon after you pass CPT. But answer which I found is that – “We (student and parents) will see later after CPT.”

And they really see what happens after CPT !When proper guidance is given they ignore it and when result is failure then they say we were not given proper guidance!

Unplanned Career

There are at least 50 different careers which emerge from CA Profession alone. I ask students at the time of training; in which area you wish to make your career. The answer I found is –We will see after passing CA Final !

Most of the students do not make any planning in which field they wish to go. Excellency is required in a particular subject to make a concrete career.Even a single topic of a subject may give excellent career.I quote here renownedCA Vimal Punamiya, Mumbai– “At the beginning of my career Isearchedso many areas to start with; and ultimately I found“Search and Seizure”as the best one. No other section of Income-Tax is required to deal with .”

Do you still think that CA students will getone shot successwithout planning and implementation thereof ? The behavior of most of the students is to take thetraining as burdensome, books as typical one, amendments as harassment, seminars as killers of time and so on !

When you go for a CA qualification; there are several alternatives before you to make a career.

Unlike medical, engineering and information technology; a CA can switch his area of specialization any time during his life time !

Despite that; I wonder why most of people tell science and engineering stream as one of the best ?

But availability of so many alternatives make the student reluctant to focus on a particular area of interest.

Unplanned Coaching

All the students who are registered with the Institute are not in a position to get proper coaching. In small cities; even books are not available. Most of the students are not properly guided about the differences between graduate level examination and professional level examination. Even if told about this; is rarely understood.

Till graduation; hardly any question is asked in the examination which is out of syllabus. So while pursuing CA also; students tend of“complete “the selected book and think it as OK.

At the time of reading the question paper in the CA examination; students realize many of the questions raised were not available in the books although the book was suggested by one of their peers.

The answer to this question is never found by most of the students even after passing CA Final. The moment theygetaggregate; they feel it asAGateWayof Success(so far facingGet Away of Success)!

The reason is this – even many of qualified chartered accountants do not regularly read (Free) CA Journal and (Paid) Professional Books. Why ? The habit of reading was not created during the training. It was always treated as burdensome.

“Continuing Dancing as explained above”; now see the another part. In one of the episode telecasted recently the shooting of which was held in Baroda; four participants from Baroda came, performed and were selected one by one. After that one more participant came. He performed well and judges asked him not to say that hisGuruisDharmeshbecause previous four participants told that their Guru is Dharmesh. This guy says –I am Dharmesh !Judges could believe only when he explained that all the previous four participants are his“shagirds.”

UNBELIEVABLE PERFORMANCE I have ever seen !

AND SEE THE GREATNESS - THIS GURU PRESENTED HIMSELF AS ONE OF THE PARTICIPANTS WHO CAN GENERATE SUCH PARTICIPANTS ! I salute him !

You have also read that Master Blaster“Sachin Tendulkar” still practice under a“Coach.” Is it correct or not ?To tum kis khet ki muli ho ?

Adopt the technique of“Sachin”if you yourself cannot motivate yourself. (Two meanings are possible of this sentence)Kya Samajhe ?

Unscheduled Reading

Many students do not even open study materials for certain(predecided or undecided)months. The habit is to see them at the time when preparation is started for examination. And by the time they start reading; many study materials become outdated! While basic concepts about the subjects are yet to be framed; flow of moreconfusionscome from fellow students (fail-o-students). (Here O represent either zero or original failure as you choose!)

Now at the time of preparation of examination; students plan their reading through time table and at the end of every week they see it is not working! Most of the time; lapses are there to cover the desired level of syllabus. As the time passes;“run rate” becomes unachievable!

So start your studies immediately when you join the CA course and you will not find the situation – “short of time”. As you go further gradually; the term “short” would be converted into “shot.”

Unplanned Training

Dharmendra Soni, a Chartered Accountant (qualified in Nov. 07 and member of CAclubindia since 15 03 2008)- asks a question on CAclubindia on 24 12 2009 – “Please any one tell me what is accounting entries of excise duty provision on closing stock and what is entries next year to reverse the provision.”Can you imagine that such students can pass CA Final Examination. They why not you !

You have seen the behavior of MBA and science students that they wish to do their course with the best available institute.In case of CA; most students think about passing examination only. They are not so serious about their training where they have to spend three years. Like passing CA examination; they also“p-a-s-s”three years training period.

The change in think process of MBA and CA students is due tocharging pattern.For MBA students generally spend Rs.5.00 Lacs and in CA they hardly spend Rs. 40,000/- (which is reimbursed with thanks by their boss in three years) ! When you pay Rs.850/- for your shirt; you will take more care than a shirt which you acquired for Rs.300/-. Although it might be possible that more comfort you feel will with Rs.300/- shirt. The moment students pay more in MBA; the student and their parents both become alert. In CA; since the cost is negligible; hence neither students not parents become so alert !

During the training; students should develop their skills to know which type of work is being allotted to him after discussion with the clients by the boss. Try to understand the need of work. Think about it and you will get the answer.

In big firms; the problem is only at initial stage. Soon after they join the firm; the student get habituated with the system and he is absorbed well immediately.

Many a times; when burden of work is there during peak audit periods; students tend to go on leave thereby losing good training opportunities.

When the office work is not so bulky; learn more about speed reading and writing, precise notes, mnemonic techniques, fast go techniques, meditation for concentration etc.

Do practice; think again and act fast. Above techniques will improve your performance to a great extent which are needed at the time of CA examination.

Not only extra ordinary speed is required but excellent knowledge is required. But don’t forget that Speed comes from Excellency and Excellency comes from Speed. Do practice those areas which are most typical and rest will be easy (already easy). Common mistake committed by the students is that typical questions are left to be referred later. Due to huge syllabus; that time comes only after result is declared !!

When books of account have not been finalized by the client and you have regular discussion with him; readAccountancy with Accounting Standards, Cost Accounting and Management Accounting.

Whenaudit workis going on in the office; read the books ofAuditing.

Whentax-auditsare going on; read the books ofIncome-Tax.

And so on………..

Unplanned Group

Many students are so busy with books that they have rare connection with a group of students. Do you think that a Medical Student has to read less ? The answer is no. Still; I have come across some resident doctors who are not even able to take a piece of bread during the day. Super specialist is also not in a position to take such “facility.” Many times; they enter into operation room at 6.00 am and operation ends at 4.00 pm. Till then they are not in a position to take even a glass of water ! Are you facing such special situations at the time of training ? Still you can see some students complain about their tough training.

Although sometimes we see a strike from resident doctors which is actually in form of “creating” a break and at that time senior doctors fill the gap as they know the reason well (due to their experience as resident doctor). And surprisingly; all the doctors enjoy their training ! Why – because of forming groups i.e. friend circles.

Many CA students don’t enjoy training because they do not wish to attach with a group taking it as a barrier to study. Even if it is so; sincere and disciplined students should form their own groups.To enjoy Sundays;such groups can“present” their weekly “performance”thereby each one updating all the subjects.

Make 6 students group who have interest in different subjects. Each one should prepare one subject extraordinarily so that all subjects are covered. On Sundays; they should present their reading in a Case Study Form i.e. Project Form. The words used in the books A,B,C or X,Y,Z should be eliminated and some interesting names should be taken with change in figures also. In this way; each student will have in-depth study without bearing the burden of study and present the material in an easy way.

Better; if you can form a group of 12 students so that it will be more interesting to interact. This will not disturb the whole group if someone is not serious about the preparation. Immediate action should be taken to rectify the deficiencies.

Unmatched Study Materials

It is very common that students don’t refer study materials altogether in a particular subject. Although from conceptual side these are very good. It does not mean that just by going through study materials success will be guaranteed. For example; to study Direct Tax; the study materials do not fulfill the need even upto 30% !

So students should have focus not only on study materials but also on compilation and other reference books.Regular reading of journals and magazines is a must.That is why many times whenever a latest question is asked in the examination; the student is unable to answer because he has never seen those situations.

Non-interesting Subjects

Some of the subjects may not create interest. The reason is that theutility partof the subject is not known to the students. For example; the subject of MAFA in Final. The formulae part disturbs the student who has not focused well on Mathematics during the CPT.

Although each one subject is related to one another in CA Curriculum.

While auditing; internal controls are to be checked. Internal controls are set looking to the cost controls. So what should be the cost; is a major concern. Cost reduction is necessary for increasing profitability and to face competition and recession. While producing goods; provisions of several laws are to be kept in mind like Custom, FEMA, Central Excise, Pollution Control, Patent Law, Service Tax, Competition Law, Labour Law etc. etc..

To check the profitability; operating profits are more important. If total profits are more; planning for Income-tax is necessary. For this cash management is required. If most of the funds are packed in form of debtors; it would not be possible to pay even advance tax; as some of diamond merchants experienced last year.

Filing of VAT Return, ROC Return, Returns under various Labour Laws, Service Tax, Compliance with SEBI, Stock Exchange and RBI are also not only relevant but very very important for Corporate Sector.

And above all; the discussion with the management. Directors Report are taken by students as part of formality which is to be fulfilled in the case of corporate sector. Whereas; if genuinely read; it will throw light on the problems faced during the year by the company and future plans of the company .

If you know the connection of each and every subject; then you will ………………………………………………..……………(fill in the blanks).

Importance of Subject

While planning to read a subject; most of the students want to see “weightage” of a chapter according to previous examinations to score high. They are not bothered to take practical aspects of the subject.

Why ?Because of not knowing the importance of subject. A lecturer teaching the subject of accountancy in college since last 20 years without any writings of his own; means he is not knowing the importance of his subject. He can give lecture on accountancy but; if given a practical accounting project; he will be unable to do it; I challenge. Why ? Because he does not know how to use Tally Accounting Package! He has not valued Closing Stock practically so far ! He is not having practical knowledge of Deferred Tax Provision. He has not seen excise accounting. And this is the reason; he is there since last 20 years at the same place !Otherwise, he would have achieved certain heights in his “profession.”

Same is the position of most of the Coaching Classes. They teach the subject but unable to convince the importance of the subject to the students. Many a students who have scored 90 plus marks in Economics in Standard XII; are not in a position to tell the importance of the subject in practical life! Would you say? Is this education?

What will happen when the same criteria you adopt even in professional examination!

Can you say the importance of Accountancy? If you know accountancy with proper application of accounting standards e.g. upto merger and amalgamations, proper provisioning of deferred tax, valuation of closing stock etc. then you can easily earn Rs.50,000/- a month without having any professional qualification. Of course you have to choose an industrial city to earn such money.

If you are expert in Income Tax only, you can earn upto Rs.10.00 lacs p.a. from this single subject. (See the CAclubindia where more than 20,000 questions have been asked on this subject alone).

And what is the valuation of FEMA ? Guess…….

Sixer on Last Ball !