PROFESSIONAL PROGRAMME
MODULE I
PAPER 1: COMPANY SECRETARIAL PRACTICE
Level of knowledge : Expert knowledge.
Objective : To provide an in-depth understanding of the procedures under the Companies Act, Rules and Regulations made thereunder including understanding of international dimensions of company law.
Detailed contents :
1. E-governance (MCA – 21)
Important Features of MCA-21 – CIN, DIN, DSC, CFC, SRN, etc; Eforms and on-line filing and inspection of documents.
2. Company Formation and Conversion
Choice of form of business entity; conversion/ re-conversion of one form of business entity into another.
Procedure for incorporation of private/public companies, companies
limited by guarantee and unlimited companies and their conversions/
re-conversion/re-registration; obtaining certificate of commencement
of business; obtaining certification of re-registration; commencement
of new business and certification; filing of agreements with managerial
personnel;
Formation of associations not for profit and non profit companies;
procedure relating to foreign companies carrying on business in India.
3. Alteration of Memorandum and Articles
Procedure for alteration of various clauses of memorandum: name
clause, situation of registered office clause, objects clause, capital clause
and liability clause; procedure for alteration of articles; effect of alteration.
4. Issue and Allotment of Securities
Procedure for public issue, rights issue and bonus shares; procedure
for issue of securities at par/premium/discount; procedure for calls on
shares; Issue of sweat equity shares, employees stock option scheme,
shares with differential voting rights; issue and redemption of preference
shares; issue of shares on preferential basis/private placement.
Return of allotment and effect of irregular allotment; issue of certificates;
alteration of share capital; procedure for forfeiture of shares and reissue
of forfeited shares; cancellation of shares; surrender of shares;
conversion and re-conversion of shares into stock.
Procedure for issue of debentures including creation of security and
debenture redemption reserve; drafting of debenture trust deed;
conversion of and redemption of debentures.
5. Membership and Transfer/Transmission
Procedure for induction of members; nomination of shares; variation
of shareholders’ rights; cessation of membership including dispute
resolution.
Transfer/transmission/transposition ; dematerialization/
rematerialisation of securities.
6. Directors and Managerial Personnel
Procedure for appointment, reappointment, resignation, removal and
varying terms of appointment/ re-appointment of directors and
managerial personnel.
Procedure for payment of remuneration to directors and managerial
personnel and disclosures thereof; compensation for loss of office;
waiver of recovery of remuneration; directors and officers liability
insurance.
Procedure for making loans to directors, disclosure of interest by a
director, holding of office or place of profit by a director/relative, etc. of
a director.
Company Secretary – Appointment, resignation and removal of
Company Secretary; role of the Company Secretary; functions and
duties; relationship with chairman and directors; secretary as advisor
to the chairman and the board.
Company Secretary in Practice – Functions ; procedure for
appointment, resignation and removal of company secretary in practice.
Auditors
Procedure for appointment/reappointment, resignation and removal
of statutory auditors and branch auditors; appointment of cost auditors;
special auditors; CAG audit.
7. Decision-making Forums and Meetings
Collective decision making forums - authority, accountability, delegation
and responsibility.
Board Meetings - Convening and management of Board and Committee
Meetings.
General Meetings - convening and management of statutory meeting,
annual and extra-ordinary general meetings, class meetings;
preparation of notices and agenda papers.
Procedure for passing of resolutions by postal ballot, conducting a poll
and adjournment of a meeting.
Post-meeting formalities including preparation of minutes and
dissemination of information and decisions including filing thereof.
8. Preparation & Presentation of Reports
Preparation of financial statements, auditors’ report, directors’ report
and report on corporate governance.
9. Distribution of Profit
Procedure for ascertainment of divisible profits and declaration of
dividend; payment of dividend; claiming of unclaimed/unpaid dividend;
transfer of unpaid/unclaimed dividend to Investor Education and
Protection Fund.
10. Charges
Procedure for creation/modification/satisfaction of charges and
registration thereof; register of charges; inspection of charges.
11. Inter-corporate Loans, Investments, Guarantees and Security
Procedure for making inter-corporate loans, investments, giving of
guarantees and providing of security.
12. Filling and Filing of Returns and Documents, etc.
Procedure for filling and filing of returns and documents :
(a) Annual filing, i.e., annual accounts, compliance certificate,
annual return, etc.
(b) Event based filing.
13. Striking off Names of Companies – Law and Procedure.
14. Best Practices - Secretarial Standards
Concept, scope and advantages; Secretarial Standards issued by the
ICSI; Compliance of secretarial standards for good governance.
15. Insider Trading
Concept and rationale behind prohibition of insider trading; SEBI’s
Insider Trading Regulations; major actions taken by SEBI so far; Role
of Company Secretary in compliance requirements.
16. Global Developments in Company Law
Contemporary developments, distinguishing and evolving features of
company law in other jurisdictions.
PAPER 2 : DRAFTING, APPEARANCES AND PLEADINGS
Level of knowledge : Working knowledge.
Objective : To acquaint the students with fundamentals of drafting,
pleadings and advocacy techniques.
Detailed contents
1. General Principles of Drafting
General principles and rules of drafting of deeds and conveyance,
basic components of deeds, endorsement and supplemental deeds,
aids to clarity and accuracy, legal requirements and implications.
2. Drafting of Agreements
Drafting of various Agreements including collaboration agreements,
arbitration; guarantees, counter guarantees; bank guarantee,
hypothecation agreement, outsourcing agreements, service
agreements, leave and license, etc.
3. Drafting of Various Deeds
Deed of sale of land, building, mortgage, licence, lease, assignment,
trust, partnership, Power of Attorney, etc.
4. Drafting of Agreements under the Companies Act
Pre incorporation contracts; Memorandum and Articles of Association
and other agreements.
5. Appearances and Pleadings
Appearance before tribunals/quasi judicial bodies such as CLB, SAT,
NCLT, CCI TRAI, etc. and appellate authorities.
Drafting of petitions/applications; drafting of written statement, counter
affidavit, reply and rejoinder.
Drafting of Affidavit in evidence ; arguments on preliminary submissions,
arguments on merits ; legal pleadings and written submissions.
Drafting and filing of Appeals, writ petitions, special leave petition,
revision and review applications, affidavits.
Dress code, etiquettes and court craft.
6. Compounding of Offences
Compounding of offences under the Companies Act, SEBI Act, FEMA
etc. Consent Orders.
MODULE II
PAPER 3 : FINANCIAL, TREASURY AND FOREX
MANAGEMENT
Level of knowledge : Expert knowledge.
Objectives :
(i) To provide conceptual clarity about the management tools
and techniques used in financial planning, analysis, control
and decision making.
(ii) To provide knowledge of derivatives, forex and treasury
management to enable the candidates to tackle practical
situation with ease.
Detailed contents :
1. Nature and Scope of Financial Management
Nature, significance, objectives and scope of financial management;
risk-return and value of the firm; financial distress and insolvency;
financial sector reforms and their impact on financial management;
functions of finance executive in an organisation; financial management
– recent developments.
2. Capital Budgeting Decisions
Planning and control of capital expenditure; capital budgeting process;
techniques of capital budgeting- discounted and non-discounted cash
flow methods, choice of methods; capital rationing; risk evaluation and
sensitivity analysis, simulation for risk evaluation; linear programming
and capital budgeting decisions.
3. Capital Structure Decisions
Meaning and significance of capital structure; capital structure vis-avis
financial structure; capital structure planning and designing; optimal
capital structure; determinants of capital structure; capital structure
and valuation - theoretical analysis; EBIT – EPS analysis; cost of capital;
factors affecting cost of capital, measurement of cost of capital,
weighted average cost of capital, marginal cost of capital; risk and
leverage; measures of leverage, leverage effects on shareholders
returns.
4. Sources of Finance
Equity, non-voting preference shares; debentures and bonds;
company deposits; term loans from financial institutions and banks;
international finance and syndication of loans; euro-issues and
external commercial borrowings; FCCB; internal funds as a source
of finance; dividend policy and retention of profits; bonus shares;
deferred payment arrangements; corporate taxation and its impact
on corporate financing; financing cost escalation.
5. Dividend Policy
Introduction; types, determinants and constraints of dividend policy;
different dividend theories — Walter’s Model, Gordon’s Model and
Modigliani-Miller Hypothesis of dividend irrelevance; forms of dividend;
dividend policy - practical considerations and legal constraints;
corporate dividend practices in India; statutory framework.
6. Working Capital Management and Control
Working capital - meaning, types, determinants; assessment of working
capital requirements - operating cycle concept and applications of
quantitative techniques; management of working capital - cash,
receivables, inventories; financing of working capital; banking norms
and macro aspects of working capital management.
7. Security Analysis and Portfolio Management
Security analysis - fundamental approach, technical approach and
efficient capital market theory; portfolio management - meaning,
objectives; portfolio theory – traditional approach; modern approach -
CAPM model.
8. Financial Services
Meaning, significance and scope of financial services ; types of financial
services – merchant banking, leasing and hire purchase, venture
capital, mutual funds, factoring and forfeiting, securitisation of debt,
loan syndication, custodial and corporate advisory services, credit
rating.
9. Project Planning and Control
Project Planning and preparation of project report; project appraisal
under normal, inflationary and deflationary conditions; project appraisal
by financial institutions – lending policies and appraisal norms by
financial institutions and banks; loan documentation and loan
syndication, project review and control; social cost and benefit analysis
of project.
10. Derivatives and Commodity Exchanges
Concept of derivatives; financial derivatives and commodity derivatives;
types of derivatives - forward contracts, futures contracts, options;
participants in futures and options market, Index based derivatives
and security based derivatives; derivatives and exposure management,
currency forwards, currency futures, currency options and currency
swaps and interest rate risk management; derivative markets in India;
commodity exchanges in India.
11. Treasury Management
Meaning, objectives, significance, functions and scope of treasury
management; relationship between treasury management and financial
management; role and responsibilities of chief finance executive; tools
of treasury management; internal treasury controls; environment for
treasury management; role of information technology in treasury
management; liquidity management, regulation, supervision and control
of treasury operations, implications of treasury on international banking.
12. Forex Management
Nature, significance and scope of forex management; foreign exchange
market and its structure; foreign exchange rates and its determination;
exchange rate quotes; types of exchange rates; forex trading; currency
futures and options; foreign exchange risk exposures and their
management; exchange rate forecasting; risk in foreign exchange
business.
13. Recent Developments in Financial, Treasury and Forex
Management
14. Practical Problems and Case Studies.
PAPER 4 : CORPORATE RESTRUCTURING
AND INSOLVENCY
Level of knowledge : Expert knowledge.
Objectives : To provide an in-depth understanding of all aspects of
law and practical issues relating to corporate restructuring and
insolvency.
Detailed contents :
Part A : Corporate Restructuring (70 Marks)
1. Introduction
Meaning of corporate restructuring, need, scope and modes of
restructuring, historical background, global scenario, national scenario.
2. Strategies
Planning, formulation and execution of various corporate restructuring
strategies - mergers, acquisitions, takeovers, disinvestments and
strategic alliances, demergers and hiving off.
3. Mergers and Amalgamations
Meaning and concept; legal, procedural, economic, accounting, taxation
and financial aspects of mergers and amalgamations including stamp
duty and allied matters; interest of small investors; merger aspects
under competition law; jurisdiction of courts; filing of various forms;
Amalgamation of banking companies and procedure related to
Government companies; Cross border mergers.
4. Takeovers
Meaning and concept; types of takeovers; legal aspects - SEBI takeover
regulations; procedural, economic, financial, accounting and taxation
aspects; stamp duty and allied matters; payment of consideration; bail
out takeovers and takeover of sick units; takeover defences; cross
border takeovers.
5. Funding of Mergers and Takeovers
Financial alternatives; merits and demerits; funding through various
types of financial instruments including equity and preference shares,
options and securities with differential rights, swaps, stock options;
ECBs, funding through financial institutions and banks; rehabilitation
finance; management buyouts/leveraged buyouts.
6. Valuation of Shares and Business
Introduction; need and purpose; factors influencing valuation; methods
of valuation of shares; corporate and business valuation.
7. Corporate Demergers and Reverse Mergers
Concept of demerger; modes of demerger - by agreement, under
scheme of arrangement; demerger and voluntary winding up; legal
and procedural aspects; tax aspects and reliefs; reverse mergers –
procedural aspects and tax implications.
8. Post Merger Re-organisation
Factors in post merger reorganization: integration of businesses and
operations, financial accounting, taxation, post merger valuation,
human and cultural aspects; assessing accomplishment of post merger
objectives; measuring post merger efficiency.
9. Financial Restructuring
Reduction of capital; reorganisation of share capital
Buy-back of shares – concept and necessity; procedure for buy-back
of shares by listed and unlisted companies.
10. Legal Documentation.
11. Case Studies.
Part B – Corporate Insolvency (30 Marks)
12. Revival, Rehabilitation and Restructuring of Sick Companies
Sick companies and their revival with special reference to the law and
procedure relating to sick companies.
13. Securitisation and Debt Recovery
Securitisation Act :
Overview of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002; process; participants;
Special Purpose Vehicle (SPV), Asset Reconstruction Companies
(ARCs), Qualified Institutional Buyers (QIB).
Debt Recovery Act :
Overview of the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993; Tribunal, Procedure; compromises and
arrangements with banks and creditors.
14. Winding up
Concept; modes of winding up; administrative machinery for winding up.
Winding up process and procedure; managing stakeholders and parties
in liquidation; conducting meetings of shareholders/creditors etc.;
dealing with contracts; managing estate; outsourcing responsibilities
to professionals/service providers such as valuers, security agencies,
etc; best practices in performing liquidation/administrator functions;
accountability and liabilities; Role of liquidators and insolvency
practitioners.
Consequences of winding up; winding up of unregistered companies;
dissolution.
15. Cross Border Insolvency.
MODULE III
PAPER 5 : STRATEGIC MANAGEMENT, ALLIANCES
AND INTERNATIONAL TRADE
Level of Knowledge : Working Knowledge.
Objectives : To develop the basic understanding of the students about
the concepts, techniques and processes relating to strategic
management, alliances as well as International Trade and treaties
including World Trade Organisation.
Detailed contents :
Part A : Strategic Management (40 Marks)
1. Nature and Scope of Strategic Management
Concept; role, functions and processes of strategic management in
globally, competitive and knowledge-based environment.
2. Environmental Scanning and Internal Appraisal Analysis
(a) Identification of external variables - economic, technological,
legal, political, socio-cultural and, global; industry appraisal
analysis and forecasting; synthesis of external factors;
(b) Internal scanning of the firm;
(c) Tools and techniques of strategic management –SWOT
analysis, situational analysis; Gap analysis, impact analysis,
value chain analysis; business process re-engineering.
3. Planning and Formulation
Formulation of Corporate vision, mission, goals and objectives;
developing strategic alternatives, evaluations of alternatives, selection
of best alternative; strategic planning vis-à-vis tactical planning;
Strategic models for optimal decision–making.
4. Implementation and Control
Strategy implementation; developing programs, budgets and
procedures; strategic control; managing strategic changes.
5. Review
Performance Evaluation - criteria and challenges
6. Risk Management
Meaning, objectives and significance; types of risks; measuring the trade
off between risk and return; control and management of business risks.
7. Management Information Systems
Concept, elements and structure; approaches of MIS development;
pre-requisites of an effective MIS, Enterprise Resource Planning (ERP).
8. Internal Control Systems
Meaning, definition, objectives, classification, scope and limitation of
internal control; steps and techniques of internal control systems.
Part B : Strategic Alliances (20 Marks)
9. Nature and Scope
Meaning, types and stages; integrating alliances into corporate strategy;
cross cultural alliances; implementation and management of strategic
alliances.
10. Foreign Collaborations and Joint Ventures
Industrial Policy; Foreign Investment Policy; kinds and negotiation of
collaboration and joint ventures, drafting of agreement, restrictive
clauses; Indian joint ventures abroad – Indian experiences.
Part C : International Trade (40 marks)
11. International Trade and Treaties
Concept and Theories of International Trade, Institutionalisation of
international trade, establishment of World Trade Organisation;
Economic Blocks and Trade Agreements such as ASEAN, EU, SAPTA,
NAFTA etc.; India’s Free Trade, Economic Cooperation and Partnership
Agreements.
12. Anti-dumping, Subsidies and Countervailing Duties
WTO agreements on anti-dumping; safeguard measures; subsidies &
countervailing duties; Regulatory Framework and procedure in India.
13. Settlement of Disputes under WTO
Rules, regulations and procedures relating to settlement of disputes
under WTO.
PAPER 6 : ADVANCED TAX LAWS AND PRACTICE
Level of knowledge : Expert knowledge
Objectives :
To provide —
(i) knowledge of framework of taxation system in India.
(ii) knowledge of various concepts and their application relating
to tax laws with a view to integrating the relevance of these
laws with financial planning and management decisions.
(iii) an overview of international taxation.
Detailed contents :
Part A : Direct Taxation - Law and Practice (30 marks)
1. General Framework of Direct Taxation in India
Different direct tax laws and their inter-relationship; importance of
Income Tax Act and Annual Finance Act and related Constitutional
provisions; harmonisation of tax regime.
2. Companies under Income-tax Laws
Classification and tax incidence; corporation tax as per Article 366;
computation of taxable income and assessment of tax liability
considering special provisions relating to companies.
3. Tax Planning
Concept of tax planning; Tax planning with reference to setting up a
new business; locational aspects; nature of business; tax holiday, etc.
Tax planning with regard to specific management decisions such as
mergers and takeovers; location of undertaking; introduction of
voluntary retirement; tax planning with reference to financial
management decisions such as borrowing or investment decisions;
reorganisation or restructuring of capital decisions.
Tax planning with respect to corporate reorganization; tax planning
with reference to employees’ remuneration.
Tax planning vis-à-vis important provisions of wealth-tax including court
rulings and legislative amendments.
4. Tax Management
Return and procedure for assessment; special procedure for
assessment of search cases, e-commerce transactions, liability in
special cases; collection and recovery of tax; refunds, appeals and
revisions; penalties imposable, offences and prosecution.
Part B : Indirect Taxation – Law And Practice (50 marks)
5. Introduction
Special features of indirect tax levies—all pervasive nature, contribution
to Government revenues; constitutional provisions authorizing the levy
and collection of duties of central excise, customs, service tax, central
sales tax and VAT.
6. Central Excise Laws
Basis of chargeability of duties of central excise - goods, manufacture,
classification and valuation of excisable goods, CENVAT; assessment
procedure, exemption, payment, recovery and refunds of duties.
Clearance of excisable goods; Central Excise Bonds; maintenance of
accounts and records and filing of returns.
Duties payable by small scale units. set-off of duties – concept, meaning
and scheme; Central Excise Concessions on exports; search, seizure
and investigation; offences and penalty.
Adjudication, Appeal and Revision, including appearance before
CEGAT by Company Secretary as authorised representative;
settlement of cases.
7. Customs Laws
Levy of and exemption from, customs duties – specific issues and
case studies; assessment and payment duties; recovery and refund of
customs duties.
Procedure for clearance of imported and exported goods; drawback of
duties.
Transportation and warehousing
Confiscation of goods and conveyances and imposition of penalties;
search, seizure and arrest, offences and prosecution provisions.
Adjudication, Appeal and Revision; Settlement of Cases.
8. Promissory Estoppel in Fiscal Laws – principles and applicability
with reference to indirect taxes.
9. Tax Planning and Management - scope and management in
customs, with specific reference to important issues in the respective
areas.
Part C: International Taxation (20 marks)
10. Basic Concepts of International Taxation
Residency issues; source of income; tax havens; unilateral relief and
Double Tax Avoidance; transfer pricing; international merger and
acquisitions; impact of tax on GATT 94, WTO, anti dumping processing;
the subpart F Regime : definition of CFC, Subpart F Income and
Operating Rules.
11. Advance Ruling and Tax Planning
Authority for advance rulings, its power and procedure; applicability of
advance ruling; application for advance ruling and procedure on receipt
of application.
Tax planning and special provisions relating to certain incomes of nonresident
corporate assessee.
Double taxation avoidance agreements; general principles; provisions
and tax implications thereof.
12. Taxation of Inbound Transactions
Taxation of passive investments; capital gains & losses; income
taxation; property taxation; branch profit taxation.
13. Taxation of Outbound Transactions
Foreign tax credit; foreign income exclusions; indirect foreign tax credit
(deemed paid system vs. current pooling system); Controlled Foreign
Corporations; PFIC’s (Passive Foreign Investment Companies); cross
border merger, acquisitions and transfers.
MODULE IV
PAPER 7 : DUE DILIGENCE AND CORPORATE COMPLIANCE
MANAGEMENT
Level of knowledge : Expert knowledge.
Objective :
(i) To provide thorough understanding and appreciation of
composite legal due diligence in regard to certain corporate
activities.
(ii) To provide expert knowledge about the Corporate Compliance
Management
Detailed contents :
1. Due Diligence
Nature, objectives, significance and scope of due diligence; steps in
the process of due diligence.
Areas of Due Diligence
_ Initial Public Offer (IPO), Follow-on Public Offer (FPO), Rights
issue, Employees Stock Option Plans (ESOPs), Preferential
Allotment
_ Issue of debt (both long term & short term) such as
debentures, bonds, warrants etc.
_ Takeovers and acquisitions
_ Setting up of business units in India and abroad
_ Setting up joint ventures
_ Compliance of Listing Agreement
_ Internal Audit of Depository Participants
_ Issue of Global Depository Receipts
_ Issue of Indian Depository Receipts
_ Legal Due Diligence
2. Compliance Management
Concept and significance; systems approach to compliance
management; process of establishment of compliance management
system; compliance in letter and spirit.
3. Secretarial Audit
Need, objectives and scope; process; periodicity and format for
secretarial audit report; check-list under various corporate laws; share
transfer audit; compliance certificate.
4. Search / Status Reports
Importance, scope; verification of documents relating to charges;
requirements of financial institutions and corporate lenders; preparation
of report.
5. Securities Management and Compliances
Meaning, need and scope; mechanism for self-regulation; advantages
to company, regulator and investors.
PAPER 8 : GOVERNANCE, BUSINESS ETHICS AND
SUSTAINABILITY
Level of knowledge : Expert Knowledge
Objective : To provide knowledge on global development and best
practices in the corporate world.
Detailed Contents :
Part A: Corporate Governance (50 Marks)
1. Evolution, concept, principles and development.
2. Management structure for corporate governance; Board
structure; building responsive boards - issue and challenges;
effectiveness of Board, board committees and their functioning in
particular audit committee, legal compliance committee and
Stakeholders’ relationship committee; appraisal of Board performance,
transparency and disclosure; internal control system and risk
management.
3. An analysis of legislative framework of corporate governance
in various countries – such as UK, USA, India. .
4. Corporate communication; art and craft of investors relations;
shareholders activism, investor protection and changing role of
Institutional Investors.
5. Corporate Social Responsibility and good corporate citizenship.
6. Various corporate governance forums - Common Wealth
Association for Corporate Governance (CACG), Organization for
Economic Cooperation Development (OECD), International Corporate
Governance Network (ICGN), National Foundation for Corporate
Governance (NFCG), etc.
Part B : Business Ethics (30 Marks)
7. Genesis, significance and scope; organization perspectives.
8. Ethical principles in business – codes and innovations.
9. Concept of the stakeholders’ organization.
10. Activity analysis, business dilemma versus decision, characteristics
of ethical dilemmas; the dilemma resolution process; business ethics
as a strategic management tool; stakeholders’ protection.
11. Challenges of business ethics and corporate leadership.
Part C: Corporate Sustainability (20 Marks)
12. Genesis, meaning, nature, objectives, significance and scope
of corporate sustainability.
13. Sustainability reporting - frameworks and guidance; trends and
drivers; business benefits of corporate sustainability reporting;
leadership programmes and stakeholder engagement; corporate
sustainability management systems.
14. Legal framework; conventions and treaties on environmental, health
and safety and social security issues.
15. Principle of Absolute Liability - Case studies.
16. Contemporary developments.
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