Your right is to work only and never to the fruit thereof. Do not consider yourself to be the cause of the fruit of action; nor let your attachment be to inaction. -Bhagwad Gita
Dear Professional Colleagues,
As I stand before you, my mind marvels at the vision of our eminent predecessors, in creating 'an institution where any person can find instruction in any study'. I salute the sustained efforts of successive presidents, predecessor colleagues in the Council, the present team and all of you in strengthening that vision.
However, we have to travel a long way to make significant progress in enhancing social capital in the world - trust, concern for the less fortunate, honesty and fairness. I am reminded of the words of economist-thinker John Maynard Keynes who said, 'when the capital development of a country becomes the by-product of the activities of a casino, the job is likely to be ill-done". It is not much of a consolation that such behaviour is not limited to one country but is a discernible pattern in almost every country today.
I sincerely trust that our CMA professionals are competent to transform into an extra ordinary work force for the country and their organizations. I believe that we can contribute significantly to solving the myriad problems we are facing with. CMAs have the ability to dream big and the courage to stand for their convictions. Contribution of our members is highly recognized in enhancing the integrity, effectiveness and outcomes in the value system. It is facilitating the stakeholders to progress on a sustainable basis. Compliance to a value system requires people who have high aspirations, self-esteem, confidence in the future and enthusiasm to take up apparently difficult tasks. We need people who will walk the talk in demonstrating their commitment to a value system. Remember Mahatma Gandhi's words, "We must become the change we want to see the world.” I urge upon all the stakeholders specially the members of the Institute to come forward and contribute their best towards the growth of the profession and the Indian economy. I also invite all those qualified finalists who are yet to seek membership of the Institute to join hands for a better future to meet the national requirement.
A National Advisory Board under the Chairmanship of Shri M. Damodaran, I.A.S ( Retd), Former Chairman, SEBI and Chief Secretary, Govt. of Tripura with S/Shri Jitesh Khosala, I.A.S, Additional Chief secretary, Assam, CMA D.Sundaram, Vice Chairman & Managing Director, TVS Capital Funds Limited, CMA M.V.Tanksale, Former Chairman Cum Managing Director, Central Bank of India , CMA G.Srinivasan, Chairman Cum Managing Director, New India Assurance Company Ltd, CMA A.K.Awashti, Former Deputy CAG and CMA Dr Asish Bhattacharyya, Professor & Head , School of Corporate Governance and Public Policy , Indian Institute of Corporate Affairs has been formed to provide inputs for preparing a vision 2030 document for the Cost & Management accounting profession.
I had the opportunity to meet Shri Narsing Rao, Chairman, Coal India limited on 30th July, 2013 with the Vice-president, Council colleagues and senior executives and discussed on various issues relating to coal sector and the areas of work and study by the Institute will give an edge in optimization of operation and cost by the industry.
I had also the opportunity to meet Shri Arun Kaul , Chairman and Managing Director, UCO Bank on 8th August ,2013 and Shri B.P. Kanungo, RD , RBI with the Vice-president, Council colleagues and senior executives and discussed on various issues relating to the banking sector and the areas of work and the role of CMA’s in Risk based internal audit and other areas for performance improvements and sustainability of the banking industry.
10th National Award for Excellence in Cost Management
The landscape of businesses is changing rapidly and becoming complex and highly volatile. The policy framework based on cost management was not prevalent 50 years ago. Certainly professionals involved need skills to handle such complex situation. The recognition for a robust internal cost accounting mechanism as mandated by the New Companies Bill both for manufacturing and services sector, is a path breaking initiative which underlines the importance, the Government is attaching to the efficient and effective utilization of scarce resources. The role of Cost and Management Accountants gets stratified into value creating, value enabling, value preserving and value reporting. The entire organization becomes an integral cog in the wheel for value creation and the subsequent processes.
To recognize these efforts, the Institute presents National Awards to felicitate and recognize corporates/ organizations in their journey towards excellence in cost management. Mr. Sachin Pilot, Hon’ble Union Minister of State for Corporate Affairs (I/C) presented 10th National Award for Excellence in Cost Management in a function organized by the Institute on 22nd August 2013 at New Delhi. Mr. Naved Masood, IAS, Secretary, Ministry of Corporate Affairs and Mr. M.J. Joseph, Additional Secretary, Ministry of Corporate Affairs, were also present and addressed the participants and awardees.
Speaking on the occasion, Hon’ble Minister expressed that the performance of participating companies has tremendously improved over the years and it was a gigantic task for the Screening Committee and the Jury as well to select the best company amongst them. The minister stressed upon that the Institute should work out norms for cost of health care procedures and should play much bigger role in the public interest.
16 Indian companies in manufacturing (private & public) and divided into large, medium and small organizations were awarded for best cost management practices in 11 different categories. The winners for the award were selected by a distinguished Jury headed by Justice V.N. Khare, Former Chief Justice of India and consisting of eminent persons from Industry, Academics and Administration. The criteria for selection were better practices for resource management, efficient utilization of capacity and working capital, quality augmentation, expenditure on CSR and precise information on performance.
Referring to Companies Bill 2013, passed by Parliament, Mr. Sachin Pilot , Hon’ble Minister expressed that the CSR provisions are aimed at welfare and environment measures. The Companies spending on brand building and CSR activities will create the goodwill, apathy and compassion among the society. He further stated that the company has full freedom to choose how it wants to invest ( not to consider it as expended/spending) the funds. This is an investment for the corporates who are spending on CSR activities.
On behalf of the Institute and my personal behalf, I congratulate the Hon’ble Union Minister of Corporate Affairs, Shri Sachin Pilot and his esteemed team members for their unstinted efforts in reforming the corporate legislation in tune with global reality and the Indian economy. The new Companies Bill will ensure impetus for the growth momentum as the Bill focuses to enhance transparency, compliance, self-reporting, regulatory and disclosure with fewer regulations.
We have formed a Task Force with four Council colleagues for suggestions in framing of the Rules for both Cost Audit and Cost Accounting Record Rules and other areas to be discussed with the Government.
Meeting with the Industry
To understand and cater the expectations of the Industry and also to appraise them about the initiatives taken by the Institute, better interaction with the industry is of prime importance. We are indeed privileged by the overwhelming response of the industries and trade associations, and their suggestions to meet the greater interest of the stakeholders while serving the national requirement.
To apprise all the members of the activities / initiatives undertaken by the Departments/ Directorates of the Institute, I now present a brief summary of the activities.
Professional Development Directorate
The new Companies Act, 2013 vide Section 138 (1) empowers the Cost Accountants for the internal audit work. The section reads as: “such class or classes of Companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the Company”.
I am happy to inform that as an endeavor towards knowledge-sharing with our esteemed members, the Institute is working on Sector Specific Internal Audit Guidance Notes. The Institute has already pronounced two Internal Audit Guidance Notes on Pharmaceutical Industry & Depository Participants for comments/ suggestions from the public and others are under the process of finalization.
Research Directorate
I am happy to inform the members that the Research Directorate of the Institute has released two research publications at Kolkata viz. a book on the topic "Capital Markets in India" and "Research Bulletin - Vol. No. 37" in the presence of Shri B. Madhab Reddy, MD & CEO, Calcutta Stock Exchange, Shri Rakesh Shah, VP, Bharat Chamber of Commerce, Shri Suresh Pal, Government Nominee of the Institute and Shri K. Govindaraj, Government Nominee of the Institute. Past Presidents, Council Members, Officials of the Institute and other eminent dignitaries from Industry, academics and professions were present at the event.
Examination Directorate
It is a matter of happiness for all of us that the Intermediate and Final examination results for June 2013 were declared as per schedule i.e. on 23rd August 2013.
I congratulate all the students who have qualified in the examinations and wish them a bright & prosperous career. This day marks a milestone from where you continue your quest for more knowledge. Your dreams and your enthusiasm are of utmost importance. As you step into the real world, remain young at heart and be open to new ideas. Never accept the status quo. Endeavour to be the best in the world in whatever you choose to be. Build your reputation with your achievements. The nation needs you. The process for campus placement programme for the June 2013 final passed out is being organized at eight locations in October and November,2013 has been initiated by the placement directorate. I am sure this time also will get maximum benefit from the initiative.
Hyderabad Center for Excellence (HCE)
The HCE has organized a program on "Stock Audit-Process and Analysis" on July 27th by Shri. Dhaveji with Twenty Two participants and Professor Prasanna Chandra, delivered a lecture to the Participants of BVCR Program on "Reflections on Valuation" on 4th August, 2013.
ICWAI-MARF Programs
To continue with its fast pace, the ICWAI-MARF organized a program for Naval & Civilian Officers on ‘Cost & Contracts Management’ during 29th to July-02nd August, 2013 at CMA Bhawan, New Delhi. A program for Indian Air Force on ‘Contracts Management’ was also organized at CMA Bhawan, New Delhi. Two Self-run programs were organized on ‘Advance Tax, TDS & Tax Planning’ and ‘Recent Trends in Financial Management’ at Tirupati.
The IRAS Training Program for the fourth batch for Ministry of Railways will be organized during September, 2013. Proposals have also been submitted to Ministry of Railways for organizing Exclusive International Training Programs at New Delhi, London & Paris for Senior HR officers of Ministry of Railways.
Reviewing of multi year tariff proposals of different airports is under progress. The Ministry of Health & Family Welfare, Government of India has assigned the development of Costing system for cardiovascular disease.
CPD Programs
The Institute organized a session on 'Role of CMAs in Internal Audit' at Kolkata. The Institute in association with Sri Aurobindo Foundation for Integral Management (SAFIM) organized a National seminar on ‘Governance by Inner Consciousness’ at New Delhi. It was my privilege to be present at the seminar which was inaugurated by Hon'ble Justice Ramesh Chandra Lahoti, Former Chief Justice of India & SAFIM Advisory Board and Shri R Bandyopadhyay, Member, Central Administrative Tribunal, Former Secretary, MCA & Member SAFIM Advisory Board followed by deliberations by eminent experts in the Technical sessions and concluded by Shri Jitesh Khosla, IAS, Additional Chief Secretary, Government of Assam.
CAT Directorates
The admission to Certificate course on Accounting Technicians is in full swing in Kerala and Rajasthan. Orientation programme has been conducted for the faculty members in Kerala at three locations to ensure quality delivery. Similar initiatives have been moved with other states to start the employment oriented short term CAT Course.
International Affairs
The Institute has been requested to nominate its experts to the workshop on Cost Audit for various sectors like sugar, textile, fertilizer, pharmaceuticals etc. to be organized by Institute of Cost and Management Accountants of Bangladesh (ICMAB) at Dhaka on 12th and 13th September 2013. I am happy to inform that my colleagues CMA M Gopalakrishnan, Past President and CMA Rakesh Singh, Immediate Past President will represent the Institute in this august forum.
The institute has constituted Board of Studies to provide improved inputs to the students to improve their skills. A Task Research Department has been created to support the initiatives of taxation committees and to meet the requirements of the stakeholders and the nation.
The Institute partnered with ASSOCHAM for the Seminar on Companies Bill- 2012 held at New Delhi. During the month our Regional Councils and Chapters conducted many programs on the contemporary topics to update the knowledge of our members.
The Institute is associated as the “Knowledge Partner” with CII for organizing the 12th Cost Congress in the month of November at New Delhi. CMA Dr Durgaprasad, Vice President attended the 1st Steering Committee of the Cost Congress held at New Delhi.
The Institute has joined hands with the Institute of Directors as associate partner for the 13th international Conference scheduled during 1st week of October, 2013 at London.
A word of gratitude to my Teachers and all Faculty Members on the occasion of Teacher's Day. I sincerely trust, my esteemed and dedicated Faculty Members would continue sharing their knowledge and experience to train the minds of Indian Youth to become efficient CMAs to meet the needs of the nation.
I wish all the members and their family on the occasion of Vinayaka Chaturthi, Vishwakarma Puja and Onam.
With warm regards,
(CMA Suresh Chandra Mohanty)
President, Institute of Cost Accountants of India
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