Cost of Failure
an article by :
Dashrath Maheshwari
Who can imagine the cost of failure in the Chartered Accountants (CA) profession? The answer is "No One" ! Then how can I do that !
But let me try to find out the approximate cost, based on the life of the present CA's around me; my friends, who could not able to pass the final; my experience and living standard of average student of our profession.
Indeed, no one can calculate these type of expectations, but at least we can conclude to reach at nearly cost to figure out our failure so that we should try more then we can do, to get the pass certificate in the very first attempt of the CA Final Exam.
Students, who are in the initial levels of the CA Examinations, can also think on this issue and try much better then their best effords to reach the upstaires of the profession.
The below calculation is based on various factors and is the result of my research on the matter from last 1 year, but as this is not at all predictable, the cost may differ. The motto of the calculation is to warn the students who are giving examinations while in service and students, who are not much serious about the examinations.
| Description | INR |
| Amt (Approx.) | |
| Cost of Coaching | 30,000.00 |
| Cost of Preparation (3 Months): If accomodation is rented | 25,500.00 |
| Cost of Examination (Including fee) | 10,000.00 |
| Cost of waiting for results (2 Months) | 17,000.00 |
| Difference of Next 6 Months salary | 2,10,000.00 |
| Cost of searching a suitable job | 25,000.00 |
| Difference of salary for the life time because of extra attempt | 4,22,10,000.00 |
| Total cost of Failure | 4,25,27,500.00 |
Note:
1. Expected 65 yrs of service
2. Age of becoming CA is assumed as 23 years
3. Expected that you can search a job in one month.
4. Cost of coaching, preparation, examination etc. depends on many factors like your family status, place of living, type of city, colony and many more.
5. Difference of next 6 months of salary is taken because if you give next attempt means you will loose the salary of that period + the differencial salary which is more of a CA then a CA intermediate/PE2/PCC etc.
6. the last calculation may differ depending upon future performance of the person and type of his industry choosen, opportunity etc.
5. But on an average, you will loose around 10 to 12 Lack per year, if we expect that after becoming CA you will serve for 35 years.
In my opinion, there is nothing like cutting the marks from the marks you obtained fromthe copy checker. But you believe or not, if you check the copy of your friend, you will give even less marks then your copy checker has given.
I have seen the copies of CA Intermediate students and you can not believe about the answers written by them, sometimes, we used to laugh on the answers.
I'm not sure about the marks cutting methodology but want to ask one question to eachof the final students.. Someone is getting pass certificate then why not you? What he did, which you can't do?Just think on the above..
Best of luck for your professional career ahead
Dashrath Maheshwari
CAclubindia
