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The Institute
of Chartered
Accountants of India
(Set up by an act of
Parliament)Your monthly guide to CA news, information and events
VOL 19 NO. 08 PAGES 36 JANUARY 2016 R50
02 January 2016 The Chartered Accountant Student
CONTENTS
President and Editor-in-chief
CA. Manoj Fadnis, Indore
Chairman and Editor
CA. V. Murali, Chennai
Addl. Secretary - Board of Studies
CA. Vandana D. Nagpal
Editorial Support
K. Sudhakaran, Assistant Director
Dr. Ruchi Gupta, Sr. Executive Offi cer
Offi ce
Board of Studies
The Institute of Chartered
Accountants of India, ICAI Bhawan, A-29,
Sector-62, Noida-201 309.
Phone : 0120-3045938
EDITORIAL BOARD
President’s Communication
Chairman’s Communication
Motivation: Unlock Your Potential and Shape Your Destiny
Article: Takeovers Are No Child’s Play
Article: Swachh Bharat Cess
Article: How to Approach Questions in Interviews
Article: Anatomy of Learning: Leaning How to Learn
Academic Update: Accounting
Knowledge Update: Swachh Bharat Cess(SBC)-Frequently Asked
Questions (FAQ)
Knowledge Update: Auditor’s Qualifi ed Report on Consolidated
Financial Statements under the Companies Act, 2013
Advisory: E-mail and Telephonic Queries: An Advisory for Students
Announcements
Poem
03
04
05
06
09
11
15
17
19
22
26
28
34
INSIDE
DISCLAIMER: The ICAI is not in any way responsible for the result of any action taken on the basis of
the advertisement published in the Journal.
Cover Image Courtesy: www.shutterstock.com
EDITOR: CA. V. Murali
Printed and published by Shri Vijay Kapur, on behalf of The Institute of Chartered
Accountants of India, New Delhi.
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The views and opinions expressed or implied in THE CHARTERED ACCOUNTANT
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part or in whole, without the consent of ICAI.
Success in life is not about
luck, it is about managed
thoughts, focused attention
and deliberate action.
- Trudy Vesotsky, 2013
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HEAD OFFICE
The Institute of Chartered Accountants
of India, ICAI Bhawan, Indraprastha
Marg, New Delhi-110 104.
SWACHH BHARAT - A STEP TOWARDS CLEANLINESS
The Chartered Accountant Student January 2016 03
PRESIDENT’S COMMUNICATION
My Dear Students,
H
eartiest best wishes for a wonderful and
prosperous New Year 2016. I wish that New
Year provides the CA students zeal, enthusiasm
and luck to scale new heights of success in all
endeavours. I really take pride in the fact that each passing
year our Institute is growing and gaining in strength. We
have great onus on our shoulders to maintain the core values
of accounting profession. New Year is the most appropriate
time for all of us to take pledge that we will serve our society
with utmost sincerity, honesty, transparency and thereby
contribute in the overall development of the nation. I also
extend my best wishes on the occasion of 67
th Republic
Day of our beloved motherland. Th e celebration of this day
instills such a patriotic fervor that truly refl ects our unity
among diversity.
Undoubtedly, the country is marching ahead to become
new economic powerhouse. Notwithstanding Mid-Year
Economic Review recently tabled in the Parliament has
lowered the growth forecast to 7-7.5 per cent from 8.1-8.5
per cent in 2015-16, India will be amongst the top growing
economies of the world. Th e Reserve Bank of India has cut
interest rates in tranches this year to lower the borrowing
costs and spur revival of investment cycle. I am very hopeful
that our country will grow faster to enhance standard of
living, have inclusive growth and improve employment. Th e
government is pushing ahead with economic reforms with
initiatives such as Make in India that should drive investment
and induce further growth. Th e country is eagerly waiting
for the new regime of Goods and Service Tax to become a
reality that should catapult the growth rate.
Th e growth of Chartered Accountancy profession has to
be in tandem with the growth of our nation. India with its
high growth rates require more number of highly skilled professionals equipped with contemporary practical
knowledge. Already the skill-sets being imparted have
extended from the traditional domains of accounting,
fi
nance, taxation and auditing to the emerging areas of
business strategies, governance, sustainability, business
consultancy and so on.
Th e new scheme of education and training that is in the
process of implementation shall surely press forward
acquisition of skills sets that will improve both employability
and entrepreneuring capability. In the current business
environment, the probable employers prefer hiring those
who have already acquired skills, as it cuts down the training
time and cost to the company. In the Institute, this is
achieved through well thought mix of theoretical education
and practical training. Usable practical skills constitute the
integral and indispensable part of our profession.
“Th e mind is not a vessel to be fi lled, but a fi re to be kindled”,
said Plutarch. Th e Institute does not encourage rote learning
by the students; rather teach them to be ever interested
and receptive to knowledge. Th is virtue is carried even
after acquiring the qualifi cation in form of well planned
Continuing Education Programme. I am very pleased to
share that in this issue of the students’ journal, the Board
of Studies is introducing a new column of Knowledge
Update as a regular feature. It will cover recent trends and
developments in diff erent areas of accounting, auditing,
taxation, and company laws, etc.
It gives me pleasure to inform that the Board of Trustees of
Chartered Accountants’ Students Benevolent Fund (CASBF)
has decided to grant fi nancial assistance to 800 meritorious
and needy students (i.e. to 400 male and 400 female
students), who are currently undergoing articled training
for one year with eff ect from 1
st April 2015 to 31st March
2016. When we help students, we actually help transform
our generation next, and when we empower our generation
next, we actually secure our own future.
In the month of January 2016, the results of CA examinations
held in November, 2015 shall be declared. Best wishes to
all the candidates. May your hard work is rewarded! We
have one of the most robust evaluation processes in place
in the interest of students. At the same time with the belief
that improvement is always possible, we have made eff orts
to further improve the processes so that no harm is done
to a deserving student. I look forward to your joining the
profession as Chartered Accountant very soon.
With best wishes,
CA. MANOJ FADNISPRESIDENT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
04 January 2016 The Chartered Accountant Student
My Dear Students,
W
ishing you all a Happy, Prosperous and fulfi lling New
Year 2016. Warm Sankranti and Pongal Greetings. We
at the Board of Studies wish you all the very best for
a wonderful year. May your eff orts bear fruit. Never
forget two people in your life - your father and your mother. Th e
person who loses everything to make you win – your father; Th e
person who is with you in every pain – your mother. I am happy to
share with you that the column of Knowledge Update, which has been
started on pilot basis will be a regular feature of the Students’ Journal
from this issue onwards. I sincerely hope that this eff ort of BOS - will
bridge the gap between theory and practice. We have also subjected
the Online Mentoring facility for a review at the Board of Studies.
Based on the feedback of our faculty members as well as students, we
have also decided to make available the online mentoring facility on
the Cloud Campus on the diffi cult areas of the subject(s) for the three
levels of the CA course including counseling.
POINTS TO PONDER Talent wins games. But teamwork wins championships. Team
building, networking and relationship building are the keys to success.
Use your voice for kindness; your ears for compassion; your hands for
charity; your mind for truth; and your heart for love. Don’t cry over
the past, it is gone; Don’t stress about the future, it has not arrived;
live in the present and make it beautiful. Calmness of mind is one of
the rarest and beautiful jewels of wisdom. Th e most important time
to hold your temper is when the other person has lost it. A French
Proverb says “Th ere is no pillow as soft as a clear conscience.” We are
born to be real and not to be perfect. Creative thinking inspires ideas,
ideas inspire change. Happiness can be found even in the darkest of
times, if one remembers to turn on the light.
Th e secret of success lies in our perception of our work. If we
perceive what we are doing as a struggle, then, whatever, we do will
seem diffi cult. If we visualise ourselves as overcoming the minor
obstacles in our path, we will surely be winners. It is for us to look
for and grab the opportunities. We must not be passive onlookers,
but pro-active and creative. Attitude matters, self perception counts,
harmony with oneself and energizing oneself is the key to get ahead.
Henry David Th oreau said “Success usually comes to those who are
too busy looking for it.” It is said that the road to success is always
under construction and it is self-motivation that will cruise you
through the journey of life. A Comfort zone is a beautiful, cozy and
comfortable place – but nothing ever grows there. Hence, come out of
your comfort zone and enter into eff ort zone. When you feel low and
down, remember no matter what the problem is don’t nurse it, don’t
curse it, don’t even regret it, just gladly accept it, trust God – He will
reverse it! In life, never to get ‘upset’ about any issue or problem, it will
never sort the issue rather complicate it. Getting ‘Up’ to ‘Set’ things
right will help you in life.
SUCCESS MANTRA1. Successful people are simply those with successful habits.
2. Success is not a mystery, it is a science.
3. Successful people build each other up. Th ey motivate, inspire and push each other. Unsuccessful people just hate, blame and
complain.
4. A defi nitive aim in life will save wasted eff ort and give direction in life.
5. Self confi dence will help one master all fears that wrack a person – fear of ill health, fear of poverty, fear of criticism, fear of death and
fear of loss of love.
6. Enthusiasm will enable one to move freely with all those one comes in contact with and is the foundation of a pleasing personality.
7. Self-control is very important to help balance oneself in a practical manner to become “the master of your fate, the captain of your
soul.”
8. Imagination and the habit of doing more: Creativity is a prized commodity. A person with ideas is always looked up to. So is a
person who is willing to go the extra mile in pursuit of the goal.
EFFORT AND PERSEVERENCE HOLD THE KEYAs a student of the Chartered Accountancy Course, it is imperative
to be diligent in study, put in regular eff ort and persevere steadily –
relentless toil is the key to crack the examinations. Concentration is
the act of focusing the mind upon a set goal and working towards it
till one attains success. You have the power to turn minus into plus.
Look forward, never backward. Forge your way with persistence and
perseverance. You are sure to emerge successful. Never stop giving your
best, just because someone does not give you your due credit. Abraham
Lincoln has said “Th e best way to predict your future is to create it.”
Keep doing what you can and God will do what you can’t. Good or
bad, just smile. You have a lot to be thankful for. Don’t lose hope. You
never know what tomorrow has in store for you. Life’s best moments
usually happen unexplained. When you feel like quitting, think about
why you joined. Dreams don’t work unless you do. Never overestimate
your weakness or underestimate your strength. Your struggles will lead
you to your strengths. You have to fi ght through some bad days to earn
the best days of your life.
WRAP UP POINT Take care of your thoughts when you are alone and take care of your
words when you are with people. Life ends when you stop dreaming;
Hope ends when you stop believing; Love ends when you stop caring.
Always remember that you are much more than you know. Within
you lie great reserves, the promise of a better tomorrow. It is up to
you to rise over and above your circumstances, to make an indelible
impression and mark in your chosen area. Most people don’t achieve
their dreams. Th ey quit or give up just steps away from the fi nishing
line. Have the tenacity and will to stick to your plan till you reach the
goal. Shri Robin Sharma said “the only limits on your life are the ones
you set yourself. When you dare to go out of your circle of comfort
and explore the unknown, you start to liberate your true human
potential.” Th e great comedian Charlie Chaplin said “Life laughs at
you when you are unhappy; Life smiles at you when you are happy;
but Life salutes you when you make others happy.” Trust before you
love; know before you judge; commit before you promise; forgive
before you forget; appreciate before you regret.
May the forthcoming New Year be wonderful in every way and may
there be happiness and love each step, each day.
With Warm Professional Regards,
Forever, yours in service,
(CA. V. MURALI)CHAIRMAN, BOARD OF STUDIES, ICAI, NEW DELHI
CHAIRMAN’S COMMUNICATION
The Chartered Accountant Student January 2016 05
Beloved Students,
I
n the journey of your pursuit to qualify as a Chartered
Accountant, you might encounter challenges. You
can overcome those challenges if you can e
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