( Expert )
06 November 2009
Scheme for Practical Training to ICWAI students
With effect from 1st day of January 2008, every registered student under the Revised syllabus 2008 shall be required to undergo practical training for a period of 3 years on whole time basis to the satisfaction of the Council in any one or more of the following organizations given under clause 2 and in the areas given in clause 3 for the purpose of recognition for training.
A student working in any of the organizations specified in clause 2 in the functional areas given in clause 3 below shall be exempted from training.
1. Objectives of the Practical Training
To develop among the students the necessary skills required to apply theoretical knowledge of cost and management accounting to practical situations in different professional fields
Exposure to environments under which different organizations work
Providing on-job experience of practical aspects of Cost and Management Accounting
Developing disciplined attitude required for a professional
Awareness on ethical values in professional work
2. Organizations recognized for Training
Student working as Trainee will be hereinafter referred to as Cost & Management Trainee. The Cost & Management Trainee shall undergo practical training under (1) Practicing Cost Accountant or (2) a firm of Cost Accountants or (3) in any of the following organizations under a professionally qualified person. The organizations other than the firms of professionals will be recognized for the purpose of training of the students if its annual turnover is Rs 5 crores or more. The authority under which the training is undertaken is referred to as Principal hereinafter.
1. Central/State Government / Semi-Government / Public Utilities
2. Banks and other Financial Institutions
3. Insurance Company
4. Public Sector Unit
5. Public Limited Company
6. Private Limited Company
7. Information Technology Sector
8. KPO / BPO
9. Stock Exchange
10. Universities, Management Institutes and any other educational institute
11. Limited Liability Partnership Firm
12. Management Consultancy Firms
14. Co-operative societies engaged in Banking, Manufacturing
15. Any other institution as approved by the Council
3. Recognized areas for Training:
1. Management Accounting
2. Cost Accounting
3. Financial Accounting
4. Financial Management
6. Regulatory compliances
7. Direct Taxation
8. Indirect Taxation
9. Corporate Laws, Industrial Laws, Commercial Laws
10. Systems Analysis, Information Technology (including ERP system)
11. Project Management
12. Banking Operations
15. Financial Services
16. Teaching in Finance, Accounts, Costing, Taxation, Management and subjects covered in ICWAI Syllabus (other than visiting faculty)
17. Management Consultancy Services as defined in appendix 6 under Regulation 111 of CWA Regulation, 1959
18. Any other areas approved by the Council
4. Procedure for Registration of Trainees
A student required to undergo training may arrange training on his own or may seek assistance from the Institute for the arrangement of Training. The Institute will maintain information on different organizations and firms interested to train the students and their respective areas of training to facilitate placing of the students for training.
The registration of trainees with the Institute shall be done by the student within a period of 45 days from the date of execution of the deed, arrangement of training in an organization or employment, as the case may be. In case of students already employed, the period of 45 days will be counted from the date of registration as student.
A student shall inform any change in the Principal or Employer to the Institute with all relevant documents within 45 days from such change.
A. Documents to be submitted The Institute shall maintain a register of Cost & Management Trainees to keep records on fulfillment of different requirements for training such as period of training, name of Principal or Employer under which training is undertaken etc. A student shall register with the Institute for the purpose of training with the following documents:
In case of training in the Cost Accounting Firm, the Deed of training executed by the Principal and the student in the prescribed form.
In case of training in an organization, the documents for deployment of trainee signed by an authority of the organization and the student in the prescribed form.
In case of students who are working, the document(s) of his employment.
B. Fees for the Registration of Trainees
A student shall pay Rs 1000/- as registration fees.
A student who is working shall pay Rs 1000/- as registration fees and additional Rs 2000/- as exemption fees.
In case of change of the principal or employer, the trainee shall have to register the necessary documents along with the fees of Rs 300/-.
5. Minimum Stipend to Trainees:
Every Principal engaging a Cost & Management Trainee shall pay the following minimum monthly stipend to the trainee:
Place of training* PCA** / Organisations*** 1st Year 2nd Year 3rd Year
Town having population upto 5 lakhs
Town having population more than 5 lakhs but upto 20 lakhs
Town having population more than 20 lakhs
* For the purpose of fixing stipend, the figures of population shall be taken as per the last published census report of India.
** PCA means Practicing Cost Accountants.
*** Organisations as detailed in the Training Scheme, viz. Central/State Government / Semi-Government / Public Utilities, Banks and other Financial Institutions, Insurance Company, Public Sector Unit, Public Limited Company, Private Limited Company, Information Technology Sector, KPO / BPO, Stock Exchange, Universities, Management Institutes and any other educational institute, Limited Liability Partnership Firm, Management Consultancy Firms, NGO, Co-operative societies engaged in Banking, Manufacturing, Any other institution as approved by the Council.
The stipend under this regulation shall be paid by the principal to the trainee either by (a) a crossed A/c payee cheque every month or (b) by depositing the amount every month in an account opened by the trainee in his own name with a Branch of the Bank to be specified by the Principal.
6. Period of Practical Training:
1. Period of Training shall be 3 years.
2. A student working in areas other than those specified in Clause 3 shall be required to have experience or training of minimum six months in the specified areas as in clause 3 in addition to at least two and a half years experience in other than specified areas.
3. After completion of the prescribed training, a student shall submit the Training Completion Certificate duly signed by the Principal/ Employer to the Institute.
4. "Practical Training Completion Certificate" shall be issued to the student by the Institute.
7. Modular Training
A student shall undergo Modular Training for 15 days organized by the Institute at the end of his three years training to have comprehensive understanding on the working in different professional fields relating to Cost and Management Accounting.
8. Leave to Cost & Management Trainee:
1. A Cost & Management Trainee shall be entitled to one day's leave with pay per month excluding the normal holidays.
2. The trainee shall be eligible for one-month leave without pay for appearing in the examination of the Institute.
3. The trainees availing leave in excess of the period of leave to which he is entitled to shall be required to undergo training for a further period equivalent to the excess leave taken by him.
9. Working hours of Cost & Management Trainee:
The minimum working hours of a Cost & Management Trainee shall be 35 hours per week.
Hours spent on any conference, course, seminar organized by the Institute/ Region/ Chapter shall be treated as period covered under training.
10. Restriction on Number of Trainees
The Firms and the organizations intending to engage Trainees shall have the following restriction on the number of trainees:
No of Trainees
a)Practicing Cost Accountant (Associate Member)
b)Practicing Cost Accountant (Fellow Member)
c) Firms of Cost Accountants
Depending upon status of the partner as given in (a) and (b) above.
For the purpose of calculation of number of Trainees, the total number of trainees under a Cost Accountant as Individual Member and a partner in firm(s) shall not exceed the limit prescribed in (a) or (b) above, as the case may be.
Having annual turnover less than Rs 10 crores
Having annual turnover more than Rs 10 crores but less than Rs 100 crores
Having annual turnover above Rs 100 crores
10 plus one trainee for every additional Rs 100 crores, subject to maximum number of trainees 500 in an organization.