Theme - CosT AudiT · 2020-04-23 · WIRC ULLETIN ARIL 2020 2 Glimpses of REGIONAL STUDENT’S COST...

WESTERN INDIA REGIONAL COUNCILTHE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(Statutory Body under an Act of Parliament)Rohit Chambers, Janmabhoomi Marg, Fort, Mumbai 400 001.

Tel.: 2204 3406 / 2204 3416 / 2284 1138 • E-mail : [email protected] • Website : www.icmai-wirc.in

Vol. 48 No. 4 April 2020 Pages 32 Price: Rs. 5/- RNI No. 22703/72

Theme - CosT AudiT

Inside Bulletin Pages

Cover Stories : • CostAuditMechanismandCOVID-19 CMA (Dr.) Ashish Thatte 6

• CostManagementinHospitalIndustryandCostAudit CMA Malhar A. Dalwadi 8

• CostAudit CMA Nikhil Pawar 13

CFO Speaks : CMA R. B. Kothari 14

Other Articles : • CatalyticroleofCMAsinSustainableDevelopment CMA (Dr.) S. K. Gupta 16

• EvolutionofGST–July2017toMarch2020 CMA (Dr.) Subir Kumar Banerjee 20

• MISReportshowingVariousCostElementsas%ofCostofSalesCMA Rajesh Kapadia 25

Chapter News .... 28

EDITORIAL BOARDChief Editor:

CMA Ashishkumar BhavsarEditorial Team:

CMA Chaitanya MohrirCMA Arindam GoswamiCMA Sujata BudhkarCMA H. C. ShahCMA Rahul JainCMA Amit Shantaram ShahaneCMA Aparna Arvind Bhai BhondeCMA Dr. Niranjan ShastriISSN 2456-4982

WIRC BULLETIN – APRIL 2020

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Glimpses of REGIONAL STUDENT’S COST CONVENTION - 2020 held at Aurangabad on 7th March 2020

CMA Ashish Bhavsar, Hon. Secretary-WIRC, CMA Chaitanya Mohrir, Chairman, Students, Members & Chapter Co-ordination Committee, WIRC, CMA Amit Apte, Immediate Past President, ICAI, Shri Rishi Bagla, Industrialist, Cheif Guest, Shri Atul Save, MLA Aurangabad, Guest of Honour, CMA Neeraj Joshi, Chairman, WIRC, CMA Manubhai Desai, Past Chairman WIRC and CMA Surendrasingh J. Deore, Vice Chairman, Aurangabad Chapter during Inaugural session.

Release of Revision Workbooks at the hands of Dignitaries

CMA Amit Shahane, CMA Amit Apte, Immediate Past President, ICAI, CMA Salman Pathan, CMA Rajesh Deshmukh, Past Chairman, Aurangabad Chapter, CMA Kiran Kulkarni, Secretary, Aurangabad Chapter and CMA Atithi Majumdar during Technical session I.

View of Students

Shri R. K. Bagla, Industrialist lighting the lamp alongwth Shri Atul Save, MLA, Aurangabad, also seen ( L to R) CMA Ashish Bhavsar, Hon. Secretary-WIRC, CMA Parag Rane, Chairman, Aurangabad Chapter, CMA Chaitanya Mohrir, Chairman, Students, Members & Chapter Co-ordination Committee, CMA Amit Apte, Immediate Past President, ICAI, CMA Neeraj Joshi, Chairman-WIRC, CMA Manubhai Desai, Past Chairman WIRC and CMA Surendrasingh J. Deore, Vice-Chairman, Aurangabad Chapter

Mr. Kishan Watne, Motivational speaker interacting with the students.

CMA Parag Rane, Chairman, Aurangabad Chapter, CMA Chaitanya Mohrir, Chairman, Students Members & Chapter Co-ordination Committee, Chief Guest Shri Raghvendra Joshi, CMD RJ Group of Industries, CMA Neeraj Joshi, Chairman WIRC and CMA Vinayak Kulkarni, Chairman, P D Committee, WIRC during valedictory session.

Cultural Evening


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DearCMAProfessionalColleagues,

AttheoutsetIwishallofyouandyourfamilygoodHealth.IamconfidentthatyouallarefollowingthenormsofSocialDistancingandhonouringtheLockdowninitsletterandspirit.WeastheeducatedandinfluentialprofessionalshaveresponsibilitytosetanexampleofdisciplinedandresponsiblebehaviourandsupportthefightofourNationagainsttheGlobalPandemicofCOVID.WeregretthatwecouldnotpublishtheWIRCBulletinforthemonthofApril2020duetotheLockdown,butwearebringingoutthisE-CopyoftheWIRCBulletinforthemonthofApril2020tokeepyouallappraisedabouttheprofessionaldevelopmentstilldateandalsotosharetheprofessionalknowledgeonthetopicsofprofessionalinterests.

I alsoappreciate the efforts ofCMAAshishBhavsar,ChiefEditor ofWIRCBulletinandhis team for takingvariousinitiatives.OneofsuchinitiativeisThemebasedWIRCBulletin.Accordinglytheteamhasselectedspecificmonthlytopics/themesfortheWIRCBulletin.ThismonthisforCostAuditandaccordinglytherearededicatedarticlesonCostAudit.Icongratulateboththeeditorialteamandtheresourcepersonswhohavecontributedthearticles.

Firstly let me update you about the events carried out byWIRC inMarch 2020. As informed to you in my earliercommunicationWIRCSuccessfullyconductedRegionalStudentsConventioninAurangabadwhichwasagrandsuccessandmysincerethanksareduetoalltheStudents,Chapters,TeamAurangabadChapterandmystaffofWIRCandmycolleaguesinRegionalCouncil.WeallwerereallyreenergisedbythezealandenthusiasmofthestudentswhoparticipatedintheRegionalStudentsConvention.

8thMarch 2020,WIRCCelebrated InternationalWomen’sDay by organising a seminar at ourThanePremises.TheWomen’sDayProgramwasarrangedbylargenumberofmembers,bothladies&gentlemen.IamthankfultoDr.SujataYardi,FIAP,Professor&DeanofCollegeofPhysiotherapyNerul,Mrs.VarshaKolhatkar,Asst.Commissioner,CustomsandCGST&CMAArtiPatil,ChiefGeneralManager,SaraswatCo-op.BankLtd.ForgracingtheoccasionasourhonouredguestsandaddressthemembersontheaspectsofGenerationEquality.IamthankfultoCMALataSarnaikmadam&CMAArpitaFegdemadamfortheirsupportinorganisationoftheWomen’sDayProgram.

ItwasaprivilegeformetoattendtheMembersMeetorganisedbytheAhmedabadChapter.TheMembersmeetwasattendedbyCMABalwinderSinghsir,President,CMABiswarupBasusir,VicePresident,CMAAshwinDalwadisir,CCM,CMAChittaranjanChattopadhyaysir,CCMrepresentingCentralCouncilandCMAAshishBhavsar,SecretaryWIRCandCMAChaitanyaMohrir,RCMasrepresentativesofWIRC.IamthankfultoalltherepresentativesofCentralCouncil&RegionalCouncilforsparingtheirtimeandaddressingthememberqueriesinopendiscussionsessions.Iamproudtoinformyouthatinlast8monthstimesinceIhavetakenchargeasChairmanofWIRC,WIRChasorganised4membersmeets inMumbai,Pune,Surat&Ahmedabadand Iamgrateful toCMABalwinderSingh ji, ourbelovedPresidentthatonallthe4occasionsPresidenthasbeenpersonallypresenttoaddressthequeriesofthemembers.

DuringthemembersmeetinAhmedabad,WIRCLauncheditsMobileApplicationforStudents&Members.IamgladthatnowWIRCisjustatyourfingertips.TheapplicationisstillunderevolutionstageandIrequestthatifyouhavesomespecificsuggestions,pleaseletWIRCknowsothatwecanimproveourconnectwithmembersandstudents.

WithheavyheartIinformyouthatoneoftheseniormostmembersofourProfession,CMASwamiAnandRishi(M.No.50)leftusfortheheavenlyjourney.Ipaymyhomageand‘Pranams’tothedepartedsoulandhopetohavehisblessingswithourprofessionforeternity.

We all are aware thatCOVID19Pandemic has affected theworld economy.Our belovedPrimeMinister took bravedecisionandtheentirecountrywentintoaCompleteLockdownfrom22ndMarch2020.TheLockdownwillcontinuetill3rdMay2020.Iamreallyproudtobeacitizenofthisgreatnation,whichhasstoodtogethertofacethischallengeandI

From the Desk of Chairman . . . . . .-


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amsurethatweallwilldefeatCOVID19.TheInstituteandWIRChastakenalotofstepstosupportgovernmenteffortsandtoaddresstheissuesfacedbyourmembersandstudentsinthissituationofglobalcrisis.

WIRCrespondedtothecallsofSocialDistancingbyCentral&StateGovernmentandwasthefirstregiontoissueadvisorytoalltheChapterstofollowthecallsofLockdownasperthelocalgovernmentbodiesandtoclosedowntheoperationsofWIRCinMumbaiasperthedirectionsofMaharashtraStateGovernment.ThoughtheWIRCofficeisclosedourstaffisworkingfromhomeandIassureyouthattheywillgiveallpossiblesupporttothestudentsandmembers.IamreallythankfultothestaffmembersofWIRCfortheirdedicatedservice.IampleasedtoannouncethatWIRChasstartedOnlineCoachingClasses.OurfacultymembershavesupportedustothehiltandIamreallythankfultothemandfeelindebtedtothem.TheClassesofWIRCaregoingonOnlinePlatformsaspertheregularscheduleoftheOralCoachingClasses.WIRChasalsomadeavailablestudymaterialtoitsstudentsandIamthankfultoalltheresourcepersonsfortheirsupport.

AsalreadyannouncedbythePresident,ourInstitutehascontributed2.5CrorestothePMCareFund.TheInstitutehasalsoconductedhugenumberofWebinarsforMemberstofacilitatethemincompletingtheCEPHourRequirements.TheduedatesfortheCEPHoursCompletionandthepaymentsofmembershipfeesareextendedfortheeaseofMembers.TheInstitutehasalsoextendedthedateforfillingexamformstosupportthestudents.TheInstituteisalsoconductingwebinarsdedicatedlyforstudentstohelpthemintheirstudies.IassureyouthatbothWIRC&theInstitutearetakingallthenecessarystepstosupportstudents&membersinthesechallengingtimes.

IamgladtoinformyouthattheCostAccountingStandardsBoardwhichIChairhasissued‘AdvisoryontheTreatmentofVariousItemsofCostinlightoftheCOVID19Pandemic&Presentation/DisclosuresofsuchitemsofcostsinformCRA3ofTheCompanies(CostRecords&Audit)Rules2014’.IamthankfultoPresident,myCouncilColleagues,MembersofCASBandsecretariatofCASBfortheireffortsandforbringingouttheadvisoryinashorttime.

IamconfidentthattogetherwewilldefeatCOVID-19andwillemergevictoriousinthisbattle.WeasprofessionalshaveagreaterresponsibilitytosupporttheGovernmentandIndustrytocomeoutoftheeconomicslowdown.WehavetosupportindustrywithaspecificfocusonMSMEs.Thisisthemostopportunetimetoproveourworthtotheindustrybyhelpingthemoptimisecostandimproveefficiencies.Thiswillhelpourprofessioninalongrun.

Thesearechallengingtimes,butweshouldnotgetboggeddownbythechallenges,weshouldratherusethemastimestoexplorenewopportunitiesandtotakeourfuturetoagreaterheights.

“Being Challenged In Life Is Inevitable, Being Defeated Is Optional – Roger Crawford”

SincerelyYours,

CMA Neeraj Dhananjay JoshiChairman, ICAI-WIRC

Please Follow the Norms of Social Distancing. Be Safe


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From Desk of Cheif Editor . . . . . .-

DearCMAProfessionalColleagues,

IhopeyouandyourfamilymembersaresafeduringthisglobalpandemicoftheNovelCoronavirusCOVID2019.Ithasdisruptedsocial&businessactivitiesworldwide.Duetothelockdown,wearenotabletobringWIRCBulletinforthemonthofApril,2020.WearepublishingEversionofWIRCBulletinforthemonthofApril,2020forprofessionalupdateandknowledgesharing.

EditorialBoardhasdecided to startThemeBaseWIRCBulletin fromApril 2020.WehavepublishedinlastBulletinandfurthersendcommunicationtomembersaboutthemonth-wisevariousthemes.ThemeforthemonthofApril2020is“CostAudit”.CostAudit isoneoftheimportant tools availablewith government,management and for stakeholder tomeasure ofoperationalefficiencyofthecompany.Wehavereceivedexcellentresponsetoournewinitiative.Articlesonthe themearepublishedascoverstory.Wearealsopublishingarticlesonotherprofessionalmatters. I am thankful to all authors for providing articles andmakingWIRCBulletinaKnowledgePack.

WehavealsostartpublishinginterviewofCMAswhohadreachedarespectablepositionlikeCFO,VP,Directoretc.ObjectiveofthesametosharetheirexperiencewithCMAfraternity.Itwill inspire youngCMAs formaking futurebrighter. In thisBulletin,wehavepublishedinterviewofCMAR.B.Kothari,GM(F)&CFOofUttarGujaratVijCompanyLimited.IrequestourproudCMAswhoreachthishighestpositionduringtheircareertosharetheirexperiencewithCMAfraternity.Placereachussothatwecanconductinterview.

Womenempowermentisalsooneoftheneedsofthehour.WehavealsodecidedtopublishatleastonearticlefromladyCMA.IrequestladyCMAtocomeforwardandsendusarticlesothatwecanshowCMAwomenempowermenttotheworld.

IthankfultoallmyCouncilcolleaguesforputtingfaithonmetochairEditorialBoard.IamalsothankfultoSurekhaPressforarrangingE-WIRCBulletinforApril2020inthislockdownsituation.IamalsothankfultoWIRCstaffformanagingeverythingfromhome.

IurgememberstoshareknowledgebywayofarticletomakeWIRCBulletinsKnowledgePack.

WewelcomesuggestionandfeedbackforbettermentofWIRCBulletin.

Atlast,IrequestallmemberstofollowalltheguidelinesgivenbycentralandstategovernmentstofightwithCOVID2019.Pls.maintainsocialdistancingandremainathome.

StayHomeStaySafe

HappyReading!!!

WithWardRegards

CMA Ashish BhavsarChairman, Editorial Board


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Cost Audit Mechanism and COVID-19CMA (Dr.) Ashish Thatte

Mob.:9820973559•E-mail:[email protected]

FundamentallyCOVIDistobetackledbywayofTracing,Tracking,Testing andTreating.CostAudit is one of themechanismwhichgivesmixtureofoperationalandfinancialparameters. Cost Audit also gives ample of parametersfor Tracing and Tracking. Various Cost ManagementtechniquesgivesscopeforTestingandmanytoolsinCostManagement also give Treating of parameters with rootcauseanalysis.UnlessyoumeasureyoucannotmanageisoldruleandapplicablealsoincaseofCOVID-19too.Wholeworldfollowssamephilosophyforrunningbusinessesi.e.measureandmanage.Businessesneedsexactparameterswherein they canmake treatment and cure their issuesrelated to businesses. Unfortunately in our countrybusinessesareusuallybeingdonewith‘Jugad’techniques(Notallof-course)whicharenotacceptedinInternationalBusinessandTrade.

Cost Audit is even though historical in nature but ithas potential of creating cost consciousness and costcompetitiveness inthebusinesses. IfwewanttocompetewithchinainnearfuturethensurelywemusthaveCostCompetitiveness among Indian industry. Just becausethere anti-china sentiments in recent days, mainly dueto COVID, companies/ businesses are not going to cometoIndiabutthentheyneedassuranceofreductionincostwithsamequalityincurrentandlaterdaystoo.CMAhasbiggerroletoplayinsuchcasesandweneedtoimproveourCostManagementMechanismwhichisnotpossibleunlesswehaveCostCompetitivenessinthecountry.

Preventive maintenance is more important for smoothrunning of business where as corrective maintenancedoesnotservethispurpose.IndianTradeandbusinessesexactlydoesthesamething.Throughouttheyearveryfewandvigilant Industries carry theirCostAnalysis tokeepcontroloncostsusingmanyCostManagementTechniquesandforthem‘CorrectiveMaintenance’isnotneededatendoftheyear‘FinancialStatements’.WhereaslargenumberofIndustries,especiallyinMediumandevensomeextentlargescale,completelyignoreincreasingcostsandtimetotimeCostAnalysisandintheendtrytomakeupthesamein Financial Statements. For the same reason Last DaymandatoryfilingsofFinancialStatementsisquitehighandalsoTaxReturnsarealsofiledonlastdaysduetolackofcorrectdataandneededdata.

The whole system surely has cascading effect. If RawMaterials from RM supplier reduce its cost withoutcompromisinginqualitythenfinalproductwillalsoreducecosts.This includes logistics,distribution,storageandallotherwalksoflifelikeHealth,Educationetc.Chinacouldgetsuccessonlowcostfrontmainlyduetolowerlabourcostandalsoduetostricterlabourlaws.InIndiaalsoLabour

costisequallylowerbutifampleopportunitiesandskillsareprovided.With increase innumber ofmanufacturingunits in India this will change face of our country dueto economies of scale and administrative laws can bechanged with changing scenario. Such collective effortsof Cost Reduction are going to play vital role. Ourmostofthesystemisdesignedtosavetaxesbutwithreductionin corporate taxes in recent days thismind set is likelyto change too.NowGovernment and Industries also hasto change itsmind-set.For saving fewpennies todaywearelosingmilliondollaropportunities.WeshouldnotgetbusinessesfromCOVIDhitChinajustbecauseworldhasonly fewalternativesbutweshouldget the sameonourmerits.ForthatpurposeunwarrantedoppositionforCostManagementandCostAuditmustbecurtailedandignoredifneeded.Of-coursethisissaidforlastsomanyyearsbuttodaywhenopportunityisknockingourdoorsarewereadyforit?

Let’s see some of the importantmeasures in Cost Auditwhich will lead to better CostManagement Techniques.ThisalsohelpscompaniestoformtheirownparametersforManagementInformationSystem.

Cost Accounting Policy: A very important aspect of‘Trace’inBusiness.ManycompaniespreparetheirMonthlyProfit and Loss Account but do they really interested inknowingProductorServicecostperUnitofMeasurementonMonthlyorquarterlybasis.Havingcompleteknowhowabout product and service cost from time to time willhelp them in ‘Tracking’flaws inAbsorptionofCostsandmaintainingconsistencyinthesame.Thiswillactas‘Test’andwillgiverisetovariousCostManagementTechniques.Simpleexampleisevenlargescalecompaniesdonothaveexact information about which costs to be considered asFixedCostsandVariableCostsassuchCostConsciousnessisdefinitelyfailinginIndianIndustry/

Sales Analysis:CostAuditAnnexuremandatestocompiledataCETA/CTA/HSNBasis. That’s important ‘Trace’ ofBusiness.Manycompaniesevendonothavetheirproduct-wise sales analysed in Management Meetings. In-factFinancialStatementsalsogivesdataontotalitybasisanddo not encourage to have it as Product-Wise, Location-Wise,Plat-Wise,Customer-Wisesalesanalysiswhichactsas‘Tracking’intheBusiness.Whensuchdataiscompiledfromtimetotimeandcomparedwithearlierperiodsthisanalysisactsas‘Test’andfinallyaccordinglyNewProductsor improvements inCurrentProductscanbeundertakenwhichisnothingbut‘Treatment’.Howeverexceptfewlargesizeandmultinationalcompaniesmanyfilesonthiscount.Mechanism like Cost Audit can definitely improve suchConsciousnesswithinTradeandBusiness.


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Capacity Utilization:Itisdefinitelyoneofthe‘Trace’forcompanies and I am sure evenMultinationalCompaniesarenotbotheredaboutcheckingtheirCapacityUtilizationfromtimetotime.ThisconceptincludesInstalledCapacity,Normal Capacity, Capacity Enhancement through OwnResources,CapacityEnhancementthroughThirdPartyjobwork/LoanLicencing, InHouseCapacityUtilization etc.SuchTrackingofVariousCapacitiesdefinitelygivesscopeforfurtheranalysisandpreventsinefficienciescreepingintothesystem.ThisalsohelpscompaniesinabsorptionofFixedOverheadsespeciallyinLock-DownConditionsitsgoingtobeimportant.Withaccuratedataavailabilityoncapacity,Companiescantakemany‘Treatments’likeIncreasingownCapacity,ThirdPartyOutsourcingetc.Inmanylargescaleandmediumscalecompaniessuchdecisionsarenottakenonthebasisofaccuratedatebutsomeotherparametersareusedforthesameanddecisionsmayprovetobewrong.Wecannot forget thateverywrongdecisionhasacostand ithastobebornebySysteminwhichcompaniesoperate.AsstatedearlieritalsohasCascadingEffects.

Cost Sheet and Costing Profit:Yetanother important‘Trace’. In so many Companies evenmanagement is notawareaboutexactcostoftheireachproductorservice.EveninmanyERPsystemsitisnotreadilyavailable.Howeveras ameasure no one can deny importance of calculatingCostofEachProductorServicewhichactsascriticalTraceforBusinesses.Ifwetrackthosecostsandproductsmanyrevelations can surface. These includes Profit makingproductsareactuallyrunningintolossmakingorquiteafewnumberofcostsnotaffectingas%totalcostsbutactually

theyaffectscostsofproductswhichreceivesbenefitsfromthem.Inpracticallifealsowehaveseenmanycompaniesmanagement have traced and ‘treated’ those businessesdiseaseslikeCOVID-19.CostingProfitismanybesolutionto many problems of Companies especially companiesseekingcreditfrombanksintheformofWorkingCapitalorLongTermLoans.FortracingsicknessofBanksevensuchparametersworktothegreatextentandifitisauditedbyAuditorthensanctitywhichisreceivesdefinitelyhelps.

When you are reading this you may get many suchParameters in yourmind to help Trade and Businesses.I am sure when world is looking at India for their nextBusinessHub,weallarecommittedtogivebestofservicestoworldandoneof the importantparameter isof-courseCost. All these years we missed opportunity to impressuponWorld thatwe can also give cost effective productsand servicesby our inherent capacity of largenumber ofeducatedpopulationavailableatrelativelycheaperprices.Alsowecankeepexpensesincontrolbyproperrecordingand analysis of the same. China is ‘World’s Factory’becauseof its lower ‘ProductionCost’andtheir ‘BusinessEcosystem’apartfromLowerLabourCost.IfIndiawishesto take up label of ‘World’ Factory’ from China then wemust improve on Production Cost with immediate effectwhichcanbeachievedonlybyCostConsciousnessandCostCompetitiveness. This underlines principlewhichwe arepursuing presently like Tracing, Tracking, Testing andTreating.TimehascometoapplytoBusinessandTradeonAccountofCost.

Theme for Coming MonthsMonth ThemeMay BankingJune InsuranceJuly GSTAugust ERP/SAP

Theme of May 2020 is Banking. Editorial board invitees’ articles/papers on Banking for the WIRC Bulletin for the month of May 2020.

Regular articles/papers on other professional matter are also going to be published in WIRC Bulletin apart from articles/papers on respective theme. Editorial board also invitees’ articles / papers on other professional matters.

Kindlysendyourarticlesonorbefore2ndMay2020byemailtoWIRC:wirc.admin@icmai.in.EditorialboardhadalsoformedminimumcriteriaforselectionofArticle/PaperforWIRCBulletininEditorialBoardmeetingheldon14thFebruary,2020.FollowingistheminimumcriteriaforselectionofArticle/PaperforWIRCBulletin.

1. TypeofArticle:Relatedtothemeofthemonthoranyotherprofessionalmatter.

2. Font:Arial/TimeNewRoman/Calibri

3. FontSize:11

4. MinimumlengthoftheArticle:1000Words(Otherthangraphs/tables/figure/pictures)

KindlysendyourArticle/paperaccordingly.

Pls. Note the final decision to consider Article/Paper is left with Chairman – Editorial Board.


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Cost Management in Hospital Industry and Cost AuditCMA Malhar A. Dalwadi


PreambleThe Novel Coronavirus COVID19 is a Global Pandemicandhasdisruptedsocial&businessactivitiesworldwide.Due to this global pandemic, now focus will be high onthe healthcare sector by the government and people atlarge.Sointhisscenario,healthcareshouldfocusonthreemajorfactorsviz.Cost,ValueandPrice.Cost:ameasureoftheresourcesthatareusedintheservices.Servicesarethereforetheoutcomeoftheinvestmentinresources(thecost).Value:howmuchbuyersthinktheserviceisworth-howmuchbetterofftheythinktheyarewhentheyreceivetheservice.Price:whatindividualsarechargedwhentheybuytheservice.

Thestatutorycostaccountingrecordsandauditthereofiscompulsory forHealth services,namely functioningasorrunninghospitals,diagnosticcenters,clinicalcentersortestlaboratories for long.However, under the post COVID19scenario,thisisgoingtobemoreimportant.

ThisarticleisbasedontherecentAdvisoryontheTreatmentofVariousItemsofCostinlightoftheCOVID19PandemicbytheInstituteofCostAccountantsofIndia,GuidanceNoteonCostManagementinHealthcareSector,theCompanies(CostRecordsandAudit)Rule,2014andbasedonpracticalexposureinleadingtheHospitals.

BackgroundThe healthcare services are split into different segmentsviz. Hospitals, Clinical Establishment, Pharmaceuticals(Medicines&MedicalConsumables),Diagnostics,MedicalEquipmentsManagement,andMedicalInsurance.

Cost Management in hospitals is becoming much moreimportantnowadays.Whileahospitalorhealthcarefacilitymay create large revenue, the costs associated with thisrevenue isalso large.Withoutaccurate costing,a facilitymay find cost overruns and the necessity to take drasticactionstoremaininoperations.

A well-established Hospital Cost Accounting will enablethefacilitytochargethepatienttheproperamount.Thisisnotaseasyasitmayseem.Facilitiesareperformingmanyservicesunderoneroof,andinmanycasesunderseveralroofs.Theproperallocationofcoststoaspecificprocedurecanbedifficult.

Government health servicesincludeprimaryhealthcarecenters,districthospitals,generalhospitals,etc.Private Helth Services–includenursinghomes,mid-tier,andtoptierprivatehospitals.ThisalsoincludesservicesprovidedbyTrust,Charitable&NGOs.

Hospitalsarealsogroupedbasedonnatureofservicetheyprovide

1. Primary Care Hospitals: A primary care provider(PCP)isadoctorwhoseesthepatientfirstandcheckupshealthproblems.Ifthepatienthasahealthcareissuethenhefindsoutwhattypeofpractitionercanservethepatientandthedoctorrefersthepatienttoarelevantspecialistdoctorforfurtherdiagnosis.

2. Nursing Care Hospitals: A Nursing care providergenerally refers to procedures or medication whichare solely or primarily aimed at providing comfort toa patient or alleviating that person’s pain, symptomordistress,andincludestheofferoforalnutritionandsimplemedication

3. Drug Therapy Centers:Oncethepatientisdiagnosedwiththeailment,thenheisadministeredwithrelevantmedicines and treatedas an outpatient category in ahospital.

4. Diagnostic Centers: In this typeofhospital, specialtypes of equipment/techniques are used to find thenature of the disease. Such techniques are usedto determine the cause of illness or disorder. Theequipment provides the healthcare practitioner withinformation about the presence, severity, and causesof diseases in a patient. Subsequently, health careprovidersadviseappropriatetreatmenttothepatient,reducing thepatient’smortalityandmorbidity levels.Followingmethodsareusedinthistypeofhospitals

• X-rays • Urine&StoolRoutine• ECG • UrinePregnancyTest• Echocardiography • BloodTests&Other• Liverfunctiontest pathologytests

5. Specialty Care Hospitals: These are hospitals thatprovidespecializedservicessuchas

• Allergy&asthmaservices • Ophthalmology• Anaesthesiology • Orthopaedics• Cardiology • Physiotherapy• Dermatology • Psychiatry• Endocrinology • Pulmonary(lung)• Digestivesystemdisorders• X-raysandrelated

procedures• Generalsurgery • Urology• Immunology • Dentalprocedures• Infectiousdisease • Anaestheticprocedures• Nephrology • Bloodtransfusions• Neurology • Bonemarrow• Gynaecology transplants• Oncology


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6. Telemedicine center: Itisapracticeofgivingmedicaladvice to patients by doctors on medicine throughtelephone. It provides services through the use ofadvancedtelecommunicationdevicestoexchangehealthstatus information and provides health care servicesacrossgeographiclocations.Nowadayspeoplesituatedin a different geographical location may connect tohospitals through telecommunications to take adviceor prescription based on his case history. It providesfacilitiesforexchangingthetestreportaswell.

Cost Management in Hospital• Flow Chart for Patient Services: ACriticalactivityinahospitalmeansanactivitythat

is very fundamental and vital for the treatment of apatientandwill run in sequenceas shownpictoriallybelow:

The source of income in a hospitalwould be fromDirectmedical services and medical support services such asbloodbank,radiologydepartment,pharmacydepartment,etc.Each of the sources is further classifiedas, from theoutpatientchannelorservinginpatientchannel.Whateverbe the source, each source is influenced by a variety ofcomplexqualitativeandquantitativefactorsasfollows:

Qualzzz Factors :• UsageofAdvancedmedialEquipment

• ComplexitiesofCriticalCases

• Typesofservicesofferedbyhospitals

• Frequencyofservices

• Qualityofemployees(suchasDoctors,nurses,supportstaff)

• Qualityofexperts(employee/Consultants)

• Managementpoliciesonpatienthandling

QuantitativeFactors:

• NumberofPatients

• NumberofOccupiedBed/Days

• OccupancyCapacityLevel

• NumberofBackupfacilities

• Infrastructureavailability

• Cost Data Flow: Let us understand the Cost data flow to get the

respectivedepartmentwisecosting.Refercostdataflowchart:

After understanding the cost flow, analyze the majorrevenueandexpenditurebookedintheHospitalIndustry.Refer below Revenue Generation Stream Chart andExpenditureStreamClassificationChart


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• Cost Pool and Allocation of OverheadsCost pooling means classification, collection of costs/resources used in respective departments and thenallocated,apportionedtorespectiveactivities.HealthCareservicesarebroadlyclassifiedintothefollowinggroupsandhencecostpoolsarealsoclassifiedinthesamemanner:i. Medicaldepartments/ProftCentersii. Medicalsupportdepartments/Supportingtothemain

medialdepartmentiii. Non-medical (service) departments / do not generate

incomedirectlybutsupportstheMedicalandMedicalsupport departments (e.g. Medical Records, Admin,Finance&Accounts,IT,Bio-medicalEngineering,etc.)

The methodology of allocation / apportionment of major expenses (due weightage to be given wherever applicable)

List of profit centers and its cost drivers (due weightage to be given wherever applicable)

• Challenges in Hospital Costing Framework1. Specialty categorization for thepatient is challenging

as patients may go through multiple surgeries andprocedures from multiple specialties, hence definingonespecialtyneedsassumptions.

2. BasicHospitalCharges/Package–Bundleofservices.3. Undischarged Patients – recognizing revenue and

cost for Patients who are undischarged at the endperiod becomes challenging as patients are chargedasservicesrenderedbutat the timeofdischargeandfinalbillpostingpackagesarepostedandadiscountiscalculated.

4. DoctorFeesandconsultancychargespaidnotdirectlyattributable to patients e.g. Full-time anesthetistspay-out, Intensivists pay-out, etc. need to consider asallocationcost.

5. Defining Human Resources and Outsourcing cost asper deployment is challenging, as employees provideservicestodifferentdepartmentswithinaspecificperiode.g.OneRadiologistattendsCTandMRIdepartmentasandwhenapatientisarrivedhenceattributingcosttoonedepartmentbecomeschallenging.

6. Allocating some medical support cost centers is alsochallenging and average needs to be considered e.g.CanteenandPantry,LaundryandLinen,etc.

7. Manytimes,whenmultipleproceduresareperformedonapatient,thedataisknownbythemajorprocedureor entry procedure only. This poses difficulty inidentifyingandallocatingcosts.

• Activity-based costing Apracticalandaccuratecostaccountingsystemiscrucialin hospitals. In traditional cost accounting systems, thevolume-based costing (VBC) is the most popular costaccountingmethod.Inthismethod,theindirectcostsareallocatedtoeachcostobject(servicesorunitsofahospital)using a single indicator named a cost driver (e.g., Bedoccupancy days, revenues or the number of patients).However,thismethodoftenresultsinroughandinaccurateresults.Theactivity-basedcosting(ABC)methodcanprovemoreaccurateresults.WiththeABCmethod,alleventsortransactionsthatcausecostsarerecognizedas“activities”,and a specific cost driver is prepared for each activity.Finally,thecostsofactivitiesareallocatedtocostobjectsbythecorrespondingcostdriver.

Sr. Profit Centres Cost Driver1.00 Wards1.10 IntensiveCareUnit PatientDays1.20 SuiteClass PatientDays1.30 DeluxeRoom PatientDays1.40 Semiprivate(Twinsharingroom) PatientDays1.50 CommonClass PatientDays2.00 OperationTheatre(OT)2.10 Cardiac TotalHrsutilised&stdhrsrequiredforeachprocedure2.20 Diabetology TotalHrsutilised&stdhrsrequiredforeachprocedure2.30 Orthopedic TotalHrsutilised&stdhrsrequiredforeachprocedure

2.40 Others TotalHrsutilised&stdhrsrequiredforeachprocedure3.00 CathLabProcedurewise TotalHrsutilised&stdhrsrequiredforeachprocedure4.00 RobotAssistedsurgery TotalHrsutilised&stdhrsrequiredforeachprocedure5.00 Physiotherapy TotalHrsutilised&stdhrsrequiredforeachprocedure6.00 Radiology/Imaging6.10 CTScan No.ofTestsdone6.20 MRI No.ofTestsdone6.30 2DEcho No.ofTestsdone

Sr. Profit Centres Cost Driver

6.40 StressTest No.ofTestsdone

6.50 Sonography No.ofTestsdone

6.60 XRay No.ofTestsdone

6.70 ECG No.ofTestsdone

7.00 HealthCheckUp

7.10 Basic No.ofPatients

7.20 Cardiac No.ofPatients

7.30 Gold No.ofPatients

7.40 Deluxe No.ofPatients

7.50 Platinum No.ofPatients

8.00 PreventiveCardiology&Rehabilitation No.ofPatients/PatientHours

9.00 Children’sHeartCentre No.ofPatients

10.00 Pathology(MajorTest-Wise) MajorTest-wiseno.oftests,andStd.Costpertest(mat.andstaffcost)

11.00 Casualty/Daycare No.ofPatients(IPDandOPDseparately)

12.00 OPDConsultation No.ofPatients


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ABC will help the management to identify the actualprotocol and/or procedure wise costs. Activity-based costcompilation is going to be very helpful in comparing thecostsordifferentprotocols/procedurese.g.recentissueswithreference tofixingup thepriceofCOVID19 testwhereingovernmentfixedRs.4,500/-pertestforprivatehospitals.However,theindustrywasnotinagreementwiththispricefixation and had approached the supreme court. In suchcircumstances,activity-basedcostingwillhelpimmensely.ItisrecommendedthatstatutorycostaccountingshouldbebuiltonaboveManagementAccountingPrinciples.AtanypointintimeNPPAoranygovernmentauthority,isaskingforsuchdata,themanagementcaneasilysharesuchdataimmediately.Thiswillhaveanadvantagethatthe data is dully reconciled with the financials and isauditedbyanindependentCostAuditors.

• ICD 10 (International Statistical Classifications of diseases-version 10) There is a possibility that there could be a diverseunderstanding of the medical systems, procedures, andnomenclatures. To harmonize the same for a betterunderstandingofthehealthcaremedicalprocess,medicalclassification/codificationisusedtodescribesuchdiagnosisandtreatments,determinecostsandreimbursements,andrelateonediseaseordrugtoanother.The Medical classification is brought out in the form ofa codificationmechanism called as ICD10. It is used fora variety of applications in medicine, public health andmedicalinformatics,suchas• statisticalanalysisofdiseasesandtherapeuticactions• reimbursement;e.g.,basedondiagnosis-relatedgroups• knowledge-based and decision support systems like

double-check of the patient bills or negotiate lowerpricingforhealthcareservices.

Ministry of health and family welfare to harmonize theentire chain of activities in the health care sector shallvigorouslyimplementICD10mandatorythroughoutIndiaashealthcareisnowbecomingthemostfocusedareaforthegovernment.

Cost Audit:MCAhas covered the healthcare services under the costauditwidethecompanies(CostRecordsandAudit)Rules,2014dated30thJune2014.Theformatfortheservicecostsheetisverygenericforallcoveredserviceindustries.Therequirementof reportingunder theannexure to costaudit report is not only to segregate the non-operatingincomes and expenses and disclose the Financials vs.CostingReconciliation.Thehospitalshavetopreparethecostaccountingrecordsbasedon theSpecialtyCarewiseasmentionedaboveandinadditiontothatHospitalsshallprepare the Cost Accounting Records as per the clinicalpractices viz. Critical care (ICU), Diagnostic services,Radiology and Imaging Services, Emergency Procedure,Operating theatres services, Wards services, Pharmacy,Special procedures-operations, Special treatment rooms,Therapies, Laboratory, Blood bank, Biomedical wastemanagement,MortuaryManagement,etc.Hospitals are treating Pharmacy Store as a routine

activity.WhilepreparingthecostaccountingrecordsreporttransactionsrelatingtothePharmacyStoreseparately.Inthe same line,many hospitals also running theNursingCollegealongwiththehospital.Inthiscase,alsoaseparatesetofrecordsneedstoprepareandreportthesaidactivitiesseparately.NursingcollegeactivityneedstodiscloseatCRA–2andCRA–4aspertheSr.No.23-Educationservices,otherthansuchsimilarservicesfallingunderphilanthropyoraspartofsocialspendwhichdoesnotformpartofanybusiness ofTableB of theCompanies (CostRecords andAudit)Rules,2014.

Reporting Cost of Industry Specific Operating ExpensesThe element of Industry Specific Operating Expenseshas been specifically added to meet the requirement ofIndustries to report the special costs, where the costelements or overheads would not match with the costelementsprovidedinAbridgedCostStatementofProductorActivityGroup.TherearespecificCostelementsinwhichthehospitalindustrytypicallyusedareasfollows:

1. FoodandBeveragesCosts2. HouseKeepingCosts3. HospitalAdminCosts4. OutsourcesPathologyCharges

Production, import, and supply or trading of medical devices as per Sr No 33 of Table B of the Companies (Cost Records and Audit) Rule, 2014While doing the audit of a hospital, auditors need tocheck whether a company has made a trading-relatedtransaction(s) ofMedical devices as mentioned under Sr33oftableBornot.Ifthehospitalhasmadeanytradingorsupplyrelatedtransactionsduringtheyear,makesureseparatelydisclosethesameasaseparateproduct(s)underPART–A4oftheannexuretothecostauditreport.

Performance Appraisal System in a Hospital1. COVID19: From 01/04/2020 onwards NPPA has

covered the medical devices, mask, gloves and handsanitizersundertheDPCO.SoHospitalshavetofollowtheMRPasperthescheduleofDPCO.AsanAuditors,wecanmonitorthesupplyrelatedtransactionsandanyviolationwecanpresenttotheboard.

2. Specialty wise profitability:Cost&RevenueshouldbesplitbydifferentdepartmentslikeLabs,Radiology,OT, Blood bank, Wards, Emergency, Gastro, Allergyand asthma services, Anaesthesiology, Cardiology,Dermatology, Neurology, Oncology, etc. profitabilityshouldbecalculated foreachspecialtyandreconciledwith P&L. This report will help in budgeting for theexpenses and fixing the responsibility for achievingbudgetsontheHODs.

3. Specialty wise, Doctor wise profitability: Thepatient-level profitability can be summed up by aprimaryconsultantandthenbythemedicalspecialty.Thiswillhelpusinunderstandingtheprofitgeneratedbyeachspecialtyandtherelativeperformanceofeachdoctor.

4. Patient-Level profitability :Therevenuefromeachpatientshouldbebrokendowntotheserviceelements


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likeindividuallabtests,etcandthecostsofeachserviceshouldbematchedandaggregatedatthepatientlevel.Thiswillhelpusarriveattheprofitabilityatthepatientlevel.

5. Cost of Quality: This is measured by the ‘Patientsatisfaction Index’. Delay in discharges, billingdisputes, food quality, nursing attention, noise level,room ambiance, AC are examples of factors affectingoperationalefficiency.

Reporting under the Pandemic Situation - Covid19TheNovelCoronavirusCOVID19 has disrupted social&business activities worldwide. The Indian Governmentalong with full support & cooperation from StateGovernmentshas adoptedapolicy ofLockdown to battlethis Pandemic. Under the lockdown situation, this willaffectmanybusinesses.

The current situation of COVID19 Pandemic and itsimpactontheoperationsofthehospitalsisbothIrregularandUnexpectedand the situation is certainlyAbnormal.Thus the impact of COVID19 Pandemic fits the premiseof Abnormal Cost as defined in the Cost AccountingStandards. Hence the Costs about or arising out of theCOVID19PandemicshallbetreatedasAbnormalCosts.

Presentation / Disclosure of the various items of Quantity Information & Costs in Form CRA 3 – Cost Auditors Report & Annexure to Cost Audit Report1.0CRA3–PartC–1QuantityInformation(ForService

Sector)

QuantityofServices /CapacityLostdue toCOVID19Pandemic shall be given as part of Notes under thispara.

2.0CRA 3 – Part D – 2. Profit Reconciliation (for thecompanyasawhole)

2.1CSRCosts

TheGovernmentofIndiavideCircularNo.05/01/2019-CSR Dated 23.03.2020 has clarified that spending ofCSRFundsforCOVID19iseligibleCSRActivity.

The cost incurred onCSRActivity is treatedasNon-Cost Item in theCostRecords and is reported underthis para. It is advised that the CSRCost should beclassifiedintoCSRforCOVID19&otherCSRActivities.Thesameshallbedisclosedas separate line items intheProfitReconciliationStatement.

2.2OtherAbnormalCostsduetoCOVID19

Asmentionedabove,costspertainingtotheCOVID19PandemicaretobetreatedasAbnormalCosts.ThustheywillformpartoftheProfitReconciliationStatement.ItisadvisedthattheUn-absorbedAbnormalCostduetotheCOVID19Pandemicshallbereportedasaseparatelineitemdescribing“COVID19–UnabsorbedCosts”.Usingthiscommondescriptionbyallcanfacilitatetheauthoritiestoconsolidatetheinformationifrequired.

3.0CRA 3 – Cost Audit Report – 2. Observations andsuggestions,ifany,oftheCostAuditor,relevanttothecostaudit.

TheCostAuditorsduringtheprocessofCostAuditwillbeassessingandauditingtheimpactofCOVID19Pandemicontheoperationsofthecompany.Thiswillalsoincludeanimpactintermsofcapacityaswellascosts.Itissuggestedthat theAuditorsmay include as part of observations&suggestions a separate Cost Statement giving detailed,costelement-wisebreakupofthe“COVID19–UnabsorbedCosts”.ThiswillbeveryhelpfultotheManagementoftheCompanyaswellasallthestakeholdersoftheCostAuditReport. It is further suggested that this Cost StatementmayalsocontainquantityinformationabouttheCOVID19Pandemic impact (like capacity utilization, idle capacityduetoCOVID19,impactonServices,etc).Itissuggestedthat such notemay also briefly explain the assumptions/ working used by the company to identify the costsassociatedwithCOVID19Pandemicandcommentuponitsappropriateness.

“Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” “Your attitude, not your aptitude, will determine your altitude.” “If you think education is expensive, try ignorance.” “The only person who is educated is the one who has learned how to learn …and change.”


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Cost Audit CMA Nikhil Pawar


DearProfessionalColleagues,Thisarticle is importantbecausethis is theaudit forwhichwecostaccountantsareknown.But,ifwereallyaskourselvesthatarewereallyhavepracticalknowledgeofcostaudit?Outof10only1or2costaccountantsareworkinginthefieldofcosting?Ourpurposemustbetogivevalueadditiontocompany/clientratherthanonlycompliance.Weneedtothinkonit.WiththehelpofthisarticleIwilltrytoexplainoverallprocedureinthecostaudit.FirststepinthecostauditisTrialBalance.Infactthisisthefirstandforemostrequirement.ThenextstepisyouhavetobifurcateFinanceHeadsofexpensesintoCostingHeads.

Foryourknowledgefollowingsarethefewexamples:-

Expenses Finance Head Costing HeadPackingMaterial OtherGeneral

ExpensesSecondaryPackingCost

Watercharges(plant)

OtherGeneralExpenses

Admin

SalesPromotionExpe

OtherGeneralExpenses

Selling&Dist

Postage-Courier OtherGeneralExpenses

Admin

Aboveexamplesisonlyillustrationpurpose.Thenyouhavetoidentifytheexpensesandincomeswhicharenotformpartofcostaudit.(ProfitReco)

Incomes not considered in cost accounts:

Expenses not considered in cost accounts:

InterestIncome Badtradeandotherreceivables,loansandadvanceswrittenoff

Dividendincomefromlong-terminvestments

NetLossonforeigncurrencytransactions

Othernon-operatingincome

Provisionfordoubtfultradereceivablesandadvances(net)

CSR

YoualsoneedtoprepareRevenuestatement…Inthissheetyouhavetopreparerevenuestatementproductandservicewise.(itmeansifcompanyhave3majorproductclassesand2servicethensumofallofthese.)Validation :TotalofallabovemustbematchwithyourFinancialsYoumusthavequantitativeandvaluewisedetailsofUtilitiesinrespective company.Materialsquantitativedetailsandvalue isalsorequired.(BifurcatematerialconsumptionintoDomestic&Imported)YoualsoneedtocalculateVALUEADDITIONstatement(whichsimplymeanshowmuchcompanyearnsandhowitutilizedthesame)

Value Addition:

1 GrossSales(excludingreturns)

2 Less:Exciseduty,etc.

3 NetSales

4 Add:ExportIncentives

5 Add/Less:AdjustmentinFinishStocks

6 Less:Costofboughtoutinputs

(a)CostofMaterialsConsumed

(b)ProcessMaterials/Chemicals

(c)ConsumptionofStores&Spares

(d)Utilities(e.g.power&fuel)

(e)Others,ifany

TotalCostofboughtoutinputs

7 ValueAdded

8 Add:Incomefromanyothersources

9 Add:Exceptional,ExtraOrdinaryandOtherComprehensiveIncome,ifany

10 Earningsavailablefordistribution

Distribution of Earnings to:

1 Employeesassalaries&wages,retirementbenefits,etc.

2 Shareholdersasdividend

3 Companyasretainedfunds

4 Governmentastaxes(Specify)

5 ExceptionalandExtraOrdinaryExpenses,ifany

6 Otherifany

7 Total distribution of earningsOneimportantstepsincostauditistopreparecostsheetproductwise.For this take base actual production and sales quantity as perexpensesSales Quantity is basis for below expenses for other actualproductionqty.

SecondaryPackingCost

Selling&DistributionOverheads

Interest&FinancingCharges

Youneed to extract the data of productionmade in given timeperiodfromsystem.OtherimportantcomplianceisFinancialsRatiosandRPT.ForthisyoucantakedatafromFinancialsdata.Conclusion:With the help of this data I just tried to give ideaaboutcostauditandwhatkindofdatarequiredforit.Hopeyouwillfindthisonehelpful.


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CFO SpeaksCMA R. B. Kothari

1. What do you feel about your role as a CFO? AsaCFO,itisneedofthehourtocontinuouslystrive

forreductionincostandtoexplorevariousavenuesforgrowthofthecompany.InmyviewCFOofacompanyoccupiesaseatatthestrategyplanningtableandhelptoinfluencethefuturedirectionofthecompanythroughfinanceleadership.Also,inthelightofvariouscorporatescandals,theCFOmustbemorevigilanttowardsdata/information, interaction, analysis and decisions. Inthe constantly changing economic environment, it isofutmostimportancethatIkeepmyselfupdatedwithlatesteconomicchange,tax/regulatorychanges,marketscenarioetc.

The CFO is the senior executive responsible formanagingthefinancialoperationsofthecompanyandhastooperateanorganizationineffectiveandefficientmannerbyprovidingavarietyofservicestothebusinesssuch as financial planning and analysis, treasury,tax, investment of surplus funds of the company,formulation of capital budgets, resource mobilizationandotherfinancialoperations.InadditiontothisCFOworktoprotectthevitalassetsofthecompany,ensurecompliancewithfinancialregulationsandcommunicatevalue and risk issues to stakeholders and board ofdirectors.

Inrecentscenario,theCFOrole ischangingandnowit become more strategically-focused, more value-focusedandmorefuture-focused.TheroleoftheCFOofpowersectorutilitiesischangingveryfastcompareto other CFO. The Scope of power sector CFO is notonlybeingreshapedbytheoveralltransformationthat

is takingplace in the role ofCFObutalsoby energytransformation, which is shifting the technological,market and consumer context for companies in thesector.

2. What are the main constraints/challenges you face as CFO?

a) The primary challenge before any CFO of thecompanyistoachievewealthmaximizationforitsshareholdersthroughcontinuousgoodperformanceof its organization. He has to ensure optimumutilizationofresourcesanddecidecapitalstructureofthecompanyinsuchawaythatcostoffundsisminimized.

b) Face constant challenges to deal with variousstakeholdersandregulatorychanges.

c) Assessing and quantifying the business riskassociated with the adoption of new technologiesandmakingtherighttechnologybets

d) Untimely payments from bulk consumers suchas Local bodies and Central/State Governmentdepartments/corporations.

Being specific to Power Sector, I am facing thefollowingchallenges:-

• Theprofitofpowersectorcompaniesmainlydependupon AT& C Losses i.e. aggregate technical andcommerciallosses,hencebeingCFOofthecompanyit has to be ensured that legitimate profits of thecompanyarenotwipedoutduetoincreasingAT&Clossesandthesameshouldbeincontrol.

• The power sector being the regulated sector, the

CMAR.B.Kothari,B.Com,ACMAisaseniorAssociatememberoftheInstituteofCostAccountantsofIndia,Kolkata having more than 38 years experience in various areas of Finance, Accounts, Costing, Taxation,Banking,variousauditsintheStateandCentralGovt.Organizations.HeispresentlyservingUttarGujaratVijCompanyLtd(aPSUofGoG),Mehsana(Gujarat)asGeneralManager(F&A)&CFOsincelast12years.HehasalsoservedthevariousStateandCentralGovt.OrganizationslikeLIC,AhmedabadMunicipalCorporation,VijayaBankandTheGujaratStateCivilSuppliesCorporationLtdforaprettylongperiodof23years.

HewasawardedNationalMeritscholarshipduringhiscollegecareer.HeisTrusteeintheGEBContributoryProvidentFundTrusthavinginvestmentsofmorethanRs.7500croreandalsointheGroupGratuityTrust.HeisassociatedveryactivelywiththeICAI-AhmedabadChaptersince2008.HewasChairmanoftheICAI-Ahmedabad Chapter for the term 2013-15. During his Chairmanship, the ICAI-Ahmedabad Chapter hasbeenawardedasthebestChapterinthe‘A’categoryfortheyear2014-15.HeisalsoregularfacultyatICAI-AhmedabadChapter.HeisregularfacultyatSPIPAMehsana.

HewasawardedtheBestCMA-CFOunderthecategoryofPublic-Sector-Service-Malefortheyear2014bytheInstituteofCostAccountantsofIndia,KOLKATTA.HehasbeennominatedasaMemberin“TASKFORCEMEMBERSININDUSTRIES”byWIRCofICAI,KOLKATTAfortheyear2017and2018.


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tariffisdecidedbyregulators.Therefore,ithastobeensuredthatappropriatetariffofthepowersectorcompanyisdecidedtimelybyregulators.Theretailsupplytariffisfixedbasedontheprojectedrevenueand approved cost and if the discom is able torecoverrevenueinlinewithprojectedrevenueitisacomfortablesituation.Butinthecurrentscenario,severalstatediscomshavehugeregulatoryassets.

• High power purchase cost which is beyond thecontrolofpowerdistributioncompanies.

• Openaccesshasemergedasachallengeforpowersector companies as it enables consumers to buycheaperpowerfromopenmarket.

• Incomingdaysthepowersectorhastogearupforcontentandcarriageseparation.

• Solar/Renewal Energy has also emerged as a bigchallengeforpowersectorCompany.

• To meet service level expectations of consumers/stakeholders keeping in mind the peer playersperformance

3. How would you like to tackle these issues? Being CFO of the company, my constant efforts are

towards cost reduction and increasing revenue of thecompany along with consumer satisfaction. I alsoensuretokeepfriendlyandtrust-worthyrelationswithconsumers,suppliers,GovernmentofGujarat,banks&financialinstitutionsandregulators.

Various regulatory changes have been brought byGERC,RBI,MCA,ITandotherconcernedauthorities.Due to this, being CFO of the company it is to beensured thatnon-compliance of anyprovisions of lawdo not happen, otherwise company has to providedisclosurestovariousagenciessuchasGERC,IncomeTax Department, Banks, Rating agencies, MCA etc.which will reflect negatively on the credibility of thecompanyanditsgroup.

Being specific to power sector, continuous steps aretakentoensuretimelybilling,smartmeteringsystemand improving collection efficiency of the company tohaveanedgeinthiscompetitiveenvironment.

The current scenario can be tackled by the followingapproach:-

• Digitizationofassetsandoperations

• Distributedenergyresourceandmicrogrids

• Energyefficiencyanddemandresponse

• Beyondthemeterautomation

• AdoptSmartmeteringandSmartGrid

• Co-shapethecorporateagendakeepinginmindtheriskandrewards.

4. What is the Future role of CFO in 2020? In current scenario and economy changes, the role of

CFOwillnotbelimitedtotraditionalFinancedomain,ratheritwillbemoreStrategicalonei.e.hewillhaveto

spendlesstimeinday-todayfinancefunctionsandwillhavetoconcentratemoreonstrategicleadership.

CFOsareexpectedtobuildstrongrelationshipwithallstakeholdersincludingBankers,Customers,Creditors,Shareholders, Employees and Society at large.Good Corporate Governance and Corporate SocialResponsibilitypolicyoftheorganizationwillhelpCFOalotinperforminghisroleeffectivelyandefficiently.

TheCFOisaKeyManagerialPerson (KMP)&playsan important role in decision making process of theManagement,thereforetheexistingroleofCFOmustbreakawayi.efromthenumber-cruncherstereotypetoastrategicplayer.Hewillbetheresponsiblepersontoensurethatthegoalsofthemanagementareconvertedintomonetaryterms.

The CFO in coming days, besides acting as strategicpartner to the CEO, will also have to play vitalrole in presenting the public face of the company tostakeholders,regulatorsandpolicymakers.Heshouldbetotalbelieverofprinciplebasedgovernance.

In changing times, the future CFO owes their dutytowards corporate governance to ensure that therequirement of different stakeholders are met totheir satisfaction with transparency and opennesswithout distorting information. The CFO shouldadopt“substanceover form”approachfocusingontheprinciples.

In future, the roleofCFOwillbe “one facewith fourrolesi.eorganizer,operator,strategistandcatalyst.”

Nowadays,RiskManagementhasbecomeanimportant&crucialfunctionofaCFOinlightofgrowingimportanceofTechnology,DigitizationandCyberSecurity.CFO’sneedstoadaptandthriveregardlessoftheturbulencein an increasingly dynamic environment and has topreparehimself for any situations emergingwith theunexpected financial surprises like Demonetization,Tax Reforms like GST and other adverse situationaffectingtheindustryandentirenation’seconomysuchasCOVID-19situationprevailingincurrenttimes.

Today,CFOsaresupposedtoperformboardbasedroledealing with global volatility, currency fluctuations,risk management, funding decision and growthexpectations.

For Young CMAs ItistoberememberedthattobecomeCFO,itisessential

toworkhardwith full enthusiasm. It is necessary toworkcloselywithmarketing,sales,operations,HRandothersectionsHOD/leaders.

The youngCMAs should develop analytical skills, bemorecreativeanddynamic,understandbestpracticesandknowhowtocreatemorevalueforthecompanyandshouldhavetheartofreadingbetweenthelines.ThisallwillhelpyoungCMAstoprogressintheircareerandachievetheirdesiredgoaltowardsbecomingCFOoftheCompany.


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Catalytic role of CMAs in Sustainable Development

CMA (Dr.) S. K. GuptaMob.:9810162341•E-mail:[email protected]

The perspectiveThisworldisabeautifulplacetolive,withallitsnaturalresourcesintheformoffloraandfauna,rivers,mountains,seasandnaturalmineralsincludingminerals.Aseveryoneknows God Almighty is the creator of all these naturalresources. He also facilitates the abundant use of theseresourcesforthewell-beingofallHiscreationsbothhumansandanimals.Whereastheanimalshaveevolvedakindofaself-dictatedcodeinusingthenaturalresourcesjudiciouslyandalsofaithfullyfollowedtoadherethecodestrictly,thehumanbeingshaveneverseemtohavebelievedthatthenatural resourcesare tobe sharedbyallGod’s creationsand indulged in indiscriminateexploitationofallnaturalresources. Systematic attempts to misuse the naturalwealth of the land, water and minerals go unchecked.Achieving sustainable development has been hamperedbytrade-offsinfavourofeconomicgrowthoversocialwell-beingandecologicalviability.

Sustainable development Sustainable Development is a concept that at its coreis revolutionary, yet unfortunately incredibly difficultto pragmatically define. “Sustainable development isdevelopmentthatmeetstheneedsofthepresent,withoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds”.Sustainableisaconceptthatappearedforthefirst time in1987withthepublicationof theBrundtlandReport, warning of the negative environmentalconsequencesofeconomicgrowthandglobalization,whichtried tofindpossiblesolutions to theproblemscausedbyindustrializationandpopulationgrowth.

An interestingwayof lookingat the issuesathandwithsustainable development is too look at the followingquote, which states “a combination of uncertainty aboutwhattodo,andafeelingofguiltaboutwhatisnotbeingdone,meansthatmanypeopleseemafraidtoexposewhatthey feel is their lack of understanding of sustainabledevelopment.Therefore,itisofteneasiertopretendthatitdoesnotneedtobeaddressed”Itisquiteclearthatbecauseof sustainable development’s uncertain definition people,nations,andgovernmentsseemtoactonitinvaryingways.Yet,forthosethathaveagreedonadefinition,theproblemofimplementationarises.

The Preamble to the 2030 Agenda for SustainableDevelopment, 2016 states :”We are resolved to free thehumanracefromthetyrannyofpovertyandwanttohealandsecureourplanet.Wearedeterminedtotaketheboldand transformative steps which are urgently needed toshifttheworldontoasustainableandresilientpath.Asweembarkonthiscollectivejourney,wepledgethatnoonewillbeleftbehind.”Forthefirsttimeinhistory,anexpanded

vision of development – sustainable development – tookholdofcitizenryandpoliticalleadersalike.Itisavisionofunprecedentedscope,significanceandbalancewithrespectto the three dimensions of sustainable development:economic,socialandenvironmental.

Towards Achieving SDGsThethreebroadpolicyprioritiesthatframeUNDP’ssupporttoachieveinclusiveandsustainablegrowthtailoredtothedevelopmentneedsofcountriesare:

• Integrated planning for inclusive and sustainable growth. Activities include establishing evidencebasedanalysisfornationalplans,promotingeconomicdiversification and sustainable growth, and effectivenaturalresourcemanagement.

• Supporting employment creation, decent work, and redistributive programmes to address poverty, inequality and exclusion.Activitiesincludepromoting decent work; removing barriers in accessto labour market opportunities; improving workingconditions and scaling up redistributive programmesespeciallytosupportthesocialprotectionsystems.

• Mobilizing and scaling up financing for enabling transition to inclusive and sustainable growth. Activities include promoting fiscal policies consistentwith inclusive and sustainable growth objectives;promoting domestic resource mobilization and theadoption of innovative financing mechanisms forenvironmentalsustainabilityandcleanenergy.

EstablishingaGoalforinclusiveandsustainablegrowthinthe2030AgendaisitselfanacknowledgementthatcurrentpatternsofeconomicgrowthhavenotbeencapableofthetransformativechangerequiredtomeettheSDGs.Itisarecognitionofthefactthat,withoutfundamentalchangesinthestructureandpatternofgrowth,risinginequalitiesandexclusionmaywellprevailand,unlesssystemsthatbuildresiliencetoprotecteconomiesandsocietiesagainstcrisesare forthcoming, millions of vulnerable households mayslide rightback intopovertyand,without sustaining theenvironment,economicgrowthitselfmaybecompromised.Achievinginclusiveandsustainablegrowth,however,isnoeasytask.Takingintoaccountdifferentnationalrealities,capacities and levels of development and respectingnational policy and prioritiesmean that there is no one-size-fits-allsolution.Eachcountryfacesspecificchallengesin itspursuitofsustainabledevelopment.Yetallnationsseektobuildstrongeconomicfoundations.Bycommittingourselvestoachievinginclusiveandsustainablegrowth,weexpressalsoacommitmenttoworldofsharedprosperity,to changing unsustainable patterns of production and


17

consumptionandtoensuringthesustainablemanagementofourplanet’snaturalresources.

Role of CMAs in Sustainable Development Burnett and Hansen (2008) posited that managementaccountants are facilitators of decision making withinorganizations. Albelda (2011) calls for managementaccountants to include issues of sustainability into thisfacilitationprocesssothatorganizationscanmakedecisionssurroundingsustainabledevelopment.Manyorganizationstry to integrate social and environmental practices intotheir strategic and operational plans. The managementaccountant is an important facilitator of such integratedactivities.CIMA (2011) also suggested thatmanagementaccountantsmustnowtakeamoreactiveroleinsustainabledevelopment. According to IFAC (2016) 8 from 17 SDGsandtheir17targetshavedirectrelationtotheaccounting.Accountants can influence their achievement. The mostrelevantgoalsfortheaccountantsarethefollowing:12.6,8.3,17.16and17.18.Goal12anditstarget12.6actasabasis for the corporate sustainable development.Theyrelated to incorporation of the sustainable developmentcriterions into the mission, strategy, tactical decisionsand operatingpolicies of business.As the result demandformoretransparentandqualitysustainabilityreporting(SR) is growing. Goal 8.3 provides guidelines for thedevelopmentoftheaccountingprofessionwhichconsolidateeffortsandharmonizeapproachestostandardizationofSR.Multi-stakeholder approach is formedwithinGoal 17.16.Accordingtothisgoalimproveddatacollection,monitoringandaccountabilityarekeyelementsoftheinformationandanalyticalsupportofsustainabledevelopment.

Cost and Management accountants (CMAs) have a critical role in sustainable development and inclusive growth :• As creators of value : Cost and Management

Accountantsplay the leadingrole in thedevelopmentand implementation of strategies, policies, plans,structureandactivitiesof themanagementandsetacoursetocreatesustainabledevelopmentvalues;

• As providers of value : Cost and ManagementAccountantsuseinformationandprovidemanagementwithhigh-qualityreportinghorizonswhichisthebasisof thesustainabledevelopmentstrategy;•keepersofthe value –professional accountants protect natural,social,industrialandfinancialcapitalofthecompany;

• As reporters of values : Cost and ManagementAccountants ensure high-quality reporting forstakeholders through detaied reporting of variousoperational aspects of the functioning of variousactivitieswithinanorganization

This vision of CMAs functional roles and their positionsclearlycorrelateswithgradationsofcorporatesustainabledevelopment. At the strategic level accountants exercisetheirauthorityascreatorsofvalues,attheoperatingleveltheyactprovidersofsustainabledevelopmentvaluesandatthereportingleveltheyactaskeepersandreporters.

ThehistoryoftheCMAprofessionisastoryofrespondingto new market opportunities, including new demands

resultingfromchangesinthelevelandnatureofbusinessactivity fromtheIndustrialRevolutiononwardsandnewlegal requirements. CMAs are often involved with themeasurement,recordingandinterpretationofsustainabilityissues.

Managementaccountinghasafundamentalroletoplayinhelping business to maximise the opportunities involvedfordoinglastinggoodanddrivingbusinessgrowth.That’sbecause theprofession’sverynaturemakes itapowerfulforce for supporting and implementing strategies andprogrammes aligned to the Goals, as well as tracking,analysingandreportingoutcomesandimpacts.ThespecificprofessionalskillsofCMAs–includingingovernance,riskmanagement and control business analysis, and decisionsupport,whichinvolvesmeasuring,reportingandprovidingassuranceonfinancialandnonfinancialdata–willbecomesincreasinglyindemandastheSDGsgaintraction.”

Cost and Management Accountants act as• GuidesandtranslatorsoftheTripleBottomLineideas

usingthelanguageofcorporatesustainability.

• They minimize information asymmetry and assessinvestment risks,provide and test standards ofsustainability accounting, reporting and auditingwithintheemergingbusinessmodel.

• With specific professional skills and involvement ingovernance, risk management, business analysis,decisionsupport,duediligence,CostandManagementaccountantsareideallyplacedtoprovidethealignmentmechanismsandcollaboratewithseniormanagementin producing fully integrated reports, reflectingsustainablestrategieswhichleadtoinclusivegrowth.

Approaches and Tools used by CMAs• Full-cost accounting : (also referred to as true-cost

accounting,totalvalueortotalimpact)bringstogethernon-market goods, such as environmental and socialassets, into the development equation, in order toallow analyzing the costs and benefits of businessand/or policy decisions. The ultimate purpose is nottomonetize nature or people, but rather to translateinvisibleresourcessuchas intellectual,human,socialand natural assets that are not captured in historicfinancialaccountsintoacommoncurrencyforstrategicdecision-makingonimpactanddependenciesthataffectoverallvaluecreation.

• Cost Saving Resource efficiency and cost-saving: opportunities can be identified by routinely collectinginformation on environmental and socially relatedexpenditures and linking them to financial benefitsand environmental and social performance progressandshowhowenvironmentalandsocialexternalcostsdeclineovertimewithcommitmenttosustainability.

• Manage and report on nonfinancial risks : Strategiestomanageandreduceriskcanbenefitfromthe identification of social and environmental risksassociatedwithcurrentfinancialperformanceandwithparticularstakeholdergroups(usingexternalcostsasindicatorsof risk).Withoutadequateandappropriate


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systems to identify and account for such costs, it isunlikelythatsustainabledevelopmentwouldbeabletomeetthedesiredobjectives.

• Management accounting techniques, such as Activity Based Costing, target costing and the Balanced Business Score Card, are mainlydevelopedasareactiontochanginginformationneedsdrivenbyagrowingcompetitiveenvironment.ActivityBased Costing systems measure more accurately thecosts of activities, products, services and customers.Balancedscorecardslinkcurrentdecisionsandactionsto long-term financial benefits.All these approachedcanbeleveragedtodevelopandbuildoperationalandperformancesystemsfordrivingsustainabilityagenda

• Lifecycle Assessment, Lifecycle Cost Assessment, Environmental Impact assessment, and Environmental Externalities Costing : Managementaccountantsplayvitalrolesinaccountingforsustainabledevelopmentintheseareas.

• Governance, supporting decision making :FuturerolesofCMAswouldbe–steeringorganizationtowardsvalue creation through transparency, better controlsystemsandprofessionalism.Economicgrowthisaboutraisingajustandequitablesociety.Goodgovernanceisessentialforeconomicstabilityandgrowth.CMAshaveacriticalroletoplayincreatingstrategiestoimproveand manage various internal and external risks,developinggovernancestructuresincludingmonitoringandadministeringofcompliances.

• Integrative reporting incorporating non-financial as well as financial information : It is concernedwith the maintenance and long-term enhancementof five types of capital that reflect an organization’soverall impact and wealth.Natural, human, social,manufactured and financial capital can be broadlyrelated to the three aspects of the triple bottom line:• Environmental performance is directly related tonatural capital, i.e. the natural resources (energyandmatter)andprocessesusedbyanorganizationindeliveringproductsandservices.•Socialperformancereflectstheorganization’simpactonhumanandsocialcapital,wherehumancapitalincludesthehealth,skills,knowledge and motivation of individuals, and socialcapital is the value added by human relationships,partnershipsandco-operation.•Economicperformancereflectsvalueadditionandreturnsoncapitalemployedandresourcesdeployed.

• High-quality corporate reporting : in ensuringfinancial stability and sustainable development ingeneral and in particular the achievement of theSDGs high quality corporate reporting was officiallyrecognized during 32nd session of UNCTAD’sIntergovernmental Working Group of Experts onInternational Standards ofAccounting andReporting(ISAR).Cost and Management Accountants measure,evaluate and disclose the progress in achievement ofSDGs.

• IFAC recommends some practical ways for CMAs to act in their role as business partners and make

a difference towards a sustainable approach : Identify the environmental impacts and correlationwith the organization’s strategy, business model andperformance;Identifyandintegratesignificantnaturalandsocialcapital issuesintodecisionmakingsystem;Evaluation the benefits of tackling environmentalandsocial issues(costreduction;revenuegeneration);Organizeinternalsystemsandprocessestoensurewhatmatters is measured andmanaged;Link the strategyandresourcestothecreationofvalueforstakeholders;Controlling costs and reducing waste by efficientlymanagement;

• The more focused day-to-day roles played by management accountants will also be diverse and valuable. Primary tasks are likely to include:encouraging businesses to meet SDG requirementsthroughimprovedinnovationcapabilities,emphasisingthe importance of ethical behaviour throughout thevalue chain, focusingmore tightly than ever on bestpractice in governance and stewardship, driving theformationofstrategicpartnerships,helpingbusinessesto base their corporate reports on the six ‘capitals’ ofintegrated reporting: human, social and relationship,intellectual,natural,manufacturingandfinancial.

• CMAs play an important role in ensuring that the company’s business model is sustainable by aligning sustainability activities with strategy andlinkingthemtobusinessdrivers,byprovidingdecisionmakerswith informationabout sustainability factors,so that theycanbe integrated intobusinessplanningandreportingandbysuchintegrationtheycontributeto theadvancementsof theSDGsandthemonitoringandevaluationoftheirimpact.

ConclusionCost and management accountants play an active rolein strategy formulation around sustainability. Manyorganizations try to integrate social and environmentalpractices into their strategic and operational plans. Themanagement accountant is an important facilitator ofsuch integrated activ ities. Early roles of managementaccountants were prescriptive, focusing mainly onpotential cost decreases and flows of economic benefitsto the organization. However, with passage of time, thetraditionalrolesofmanagementaccountantshaveevolved.The relationship between environmental and economicperformance has increased, and so has managementaccountants roles as facilitators of decisionmaking,withnew performance measures and analysis tools whichintegrates environmental issues into their roles. CMAshave a key role to play in facilitating achievement ofSustainabledevelopmentgoalsbyharnessingknowledge,data,analysis,andtechnologytoprovidemanagementtheabilitytotakeinformeddecisions.CMAsLookatthefuture.They are dreamers. CMAs as consultants should advisecompaniesaboutsustainabilityandmakethemunderstandhow to adopt sustainable practices. Their first duty is tolivelikeagoodcitizenandthenasCMA.Theexpectationonbusinessesisatanall-timehigh.CostandManagementaccountants are critical in helping them to integrate the


19

Goalsintogovernance,managementandreportingaswellas in facilitating greater connectivity between social andenvironmentalbenefitandeconomicbenefit.

Inaddition,thispaperprovidesastrongsignalthatCMAsmustmaximizetheirroleinthecompanysoastoprovideinput to management to run the company’s operationswitha focusonachieving theSDGs.Another implicationisthatCMAsmustbepreparedtoincreaseprofessionalismin transferring knowledge to students regarding theirroleinachievingSDGs.Thecurriculummustbeadjustedto the emerging needs related to achieving SustainableDevelopmentGoals.WithastrongcommitmentCMAscanhelpdrivethechangesneededtotransformthisglobeforthebetter.

References • Alessina,A.andD.Rodrik(1994)“DistributivePolicies

andEconomicGrowth”,QuarterlyJournalofEconomics,109:465-490.

• Anand,S.andR.Kanbur(1993)“TheKuznetsProcess

andtheInequality-DevelopmentRelationship”,JournalofDevelopmentEconomics,40:25-52.

• Barrientos, A. and M. Nino-Zarazua (2010) “SocialAssistance in Developing Countries”, MPRA Paper20001:UniversityLibraryofMunich.

• Barro,R.(2000)“InequalityandGrowthinaPanelofCountries”,JournalofEconomicGrowth,5:5-32.

• Kapsos (2005) “The Employment Intensity ofGrowth: Trends and Macroeconomic Determinants”,EmploymentStrategyPapers:ILO:Geneva.

• Lopez, J.H. (2004) “Pro-growth, Pro-poor: Is there aTrade-off?”, Policy Research Working Paper 3378,WorldBank:WashingtonD.C.

• McKinley, T. (2010) “Inclusive Growth Criteria andIndicators: An Inclusive Growth Index for Diagnosisof Country Progress”, ADB Sustainable DevelopmentWorkingPaperSeries

• UNDP (2013) Humanity Divided: ConfrontingInequalityinDevelopingCount

CMA Swami Anand Rishi (M/50) a verysenior member of the Institute, has passedaway.Hewasa fellowmemberof the ICMALondonandIndia.He passed away at the ripe age of 91. Hewas a member of the Theosophical SocietyofIndiasince1963.HewasalsoadiscipleofOsho since 1971. He had varied experiencehavingworkedindifferentindustries(rubber,sugar, chemical, pharma,poultryandhotel).HeretiredasVicePresident(Finance)ofTajInternationalHotels.He has written around 20 books and manyarticles on various spiritual subjects.Prominent among them being his bookon Patanjal Yoga Sutras, Reincarnation,Meditation,Ashtavakraetc.Mayhissoulrestineternalpeace.

OBITUARYWiRC CoAChiNG - oNLiNefor Foundation, Inter & Final

Greetings!

Asallofusareawareaboutthelockdownsituationin the country due to Covid 19 till 14th April2020. In the current situationWIRC is thinkingof providing on line coaching facility to all thebatchesi.e.Foundation,IntermediateandFinal.

Such coaching is to be initiated immediately tohavesomebenefittostudents.

E training is suggested through ZOOM videoconferencingtool.

Basicrequirementsofthetrainingare

1. Laptop/desktopsystem

2. Internetconnectivity

3. PPToflectures/excelsheets/wordsheets

WIRC has started online lectures through zoomapplication at all centres, if any more studentsinterestedtojointheonlinelecturesthroughzoomapplicationtheyareherebyrequestedtocontact/whatsappmessagetoMr.D.G.Vanjari,Sr.Officer,WIRC.Mob.:9892185588/9372071120

CMA Chaitanya MohrirChairman, Students, Members and Chapters Co-ordination Committee.


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DeliberationonGSTorGoodsandServicesTaxwasgoingonforaround20years.Thissingletax(GST)wasintroducedfromJuly1,2017bypassingabillinplaceofnumberofothertaxes (like Central excise duty, Services tax, Additionalcustomsduty,Surcharges,State-levelvalueaddedtaxandOctroi).GSTisknownbytwonames-i.e.GSTforStateandCentralnamedSGSTandCGST,respectively.

The GST Rates as on July 1, 2017 and subsequent amendmentsThe rates were one for State and one for Central GST.Suchrateswerecomparablyonthehighersideinrelationto previous rates.WhenGSTwasfirst introduced it hadfivetaxslabs(0%,5%,12%,18%and28%)forallthegoodsand services. However, petroleum products, alcoholicdrinks,andelectricityarenottaxedunderGST.Theyaretaxed separately by the respective state governments, inaccordancewith earlier tax regime.TheseGST tax slabs

Evolution of GST – July 2017 to March 2020

CMA (Dr.) Subir Kumar BanerjeeMob.:9820113419•E-mail:[email protected]

were substituted by amendments effective from 25thJanuary,2018. Composition of Goods and Services vis-à-visslabsoftaxratesgetschangedwhenanamendmentismade.Theamendmentwereon29Goodsand53Services.GSTRateswere reduced from 28% to 18%, 28% to 12%,18%to12%,18%to5%andfewwerechargedNILGSTandforveryfewproductstherewasincreaseinrates.

4 GST Tax Slab Rates List for Key Different Goods and Services

July,2017 January,2018 March,202012% 5% 5%18% 12% 12%28% 12% 18%28% 18% 28%

Figure 1 - Chart of Latest GST Tax Structure

Source-https://www.kotak.com/en/stories-in-focus/gst-rate-slabs.html

• GST Achievement &Failures So Far• In anymajormove like introduction ofGST, there is

bound to be some teething problem.However, it is abigsteptowardsachieving inEaseofDoingBusinessfor business communities in India and abroad.

Simplificationoftaxstructuresofsuchbigmagnitudeshows political will and proactive attitude of bothCentral andStateGovernments. Introduction ofGSThas brought down tax for consumers and it boostedproduction


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• vis-a-visgrowthoftheindustries.SinceforSME,thereis provision for Turnover based GST like more theproductionlesserthetax,itiswindfallforthem.Doingaway with toll plazas and check posts throughoutIndia have been boon for companies which can nowavoid transitdelays,unnecessarycostsof storingandwarehousing resulting in squeeze in margin. Since

the customs duty on exporting goods has decreased,corresponding ripple effects are reduction of cost ofproduction,strengthenedcompetitivenessandboostofexport.

Attheendofthirdyear,letustakestockofsituationastotheextentofsuccessandfailureinthefollowingchart.

Figure 2 - GST Achievement & Failures


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Source - https://www.pwc.in/assets/pdfs/gst-at-2-years/gst-at-2-years.pdf

Shortfall of GST Revenue Collection of Central and StatesNumerous revision to GST rules and lot of items underexemptionlistarethemainreasonsfortheRs.63,200croreshortfallincompensationcessforFY20.AspertheFifteenthFinanceCommission,morethan40amendmentshavebeendone in GST since it was introduced. So many revision have made the tax structure volatile and compliancebecame cumbersome. These are the main two reasonsfor the shortfall of collection vis-a-vis targets. Centre iscritically reviewing incentives and export benefits fora boost in revenue. Avoidance of Tax is another culpit.

Effortsareonforseamlessreturnfilingprocess,increasingcollection, smooth compliance process and enhancingrevenue and focused compliance management and goodcooperation and co-ordinationbetween central and statetaxadministrations.

Another problem is that the centre has promised tocompensate the states to bridge the gap for shortage incollectionduringJuly2017tillJune2022.Statesarenottryingtheirbesttostoptheloopholesincollections,ensuringsmoothcomplianceandrationalizeGSTsincetheyaresureofguaranteedcompensationofthedeficitofcollection.


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Figure 4 – Trend in GST Collection

Source-https://pib.gov.in/newsite/PrintRelease.aspx?relid=189619Figure 5-Monthly Gross GST Collection from July,2017 till February,2020

Gross GST Collection 2017-18 (Rs in Cr.)

Gross GST Collection 2018-19 (Rs in Cr.)

Gross GST Collection 2019-20 (Upto February)(Rs in Cr.)

April ——— April 1,04,458 April 1,13,865May ——— May 94,016 May 1,00,289June ——— June 95,610 June 99,939July 94,063 July 96,483 July 1,02,083August 90,669 August 93.960 August 98,292September 93,141 September 94,442 September 91,916October 83,346 October 1,00,714 October 95,380November 80,808 November 97,637 November 1,03,492December 86,703 December 94,726 December 1,03,184January 86,318 January 1,02,503 January 1,10,828February 85,174 February 97,247 February 1,05,366March 1,03,458 March 1,06,577 March N.A.***Total 8,03,680 Total 11,77,369 Total 11,24,544

*** March,2020 has not ended & hence Data Not Available at the time of writing this article

Source – Complied by AuthorA. Overhauling of compliances and documentation 1. Review on GST returns MainpurposeoftheGSTstructurewastracingofbuyers’and seller’s invoices for calculation of the outward taxliability of the supplier and whether the recipient isqualifiedforinputtaxcredit.Itwasagoodconcept,butitsapplicabilitywasanightmarefortheGovernmentinviewofIT-relatedissues.

To start with, the Government implemented a return,GSTR3B,whichwastobesubmittedalongwiththereturnforoutwardsupplies(GSTR1),andGSTR2andGSTR3returnswerekeptinabeyance.

A revised GST return system will be effective from 1stOctober2020insteadof1stApril,2020asdecidedearlier.

Also, the applicability of e-invoicing and the QR codehas been postponed to 1st October 2020. To even outteethingproblemsapilotprojecthasbeenoperativesinceOctober 2019. Pro-active involvement of taxpayers andGSTpractitioners inthispilotproject ismust forsmoothoperationofthenewreturnsystem.Inpilotproject,GSTNhasalreadyappliedthefollowingstepswhichwillenabletogivetheircorrectinputtoupgradetheGSTnewreturntool:

a. GSTNewReturnOfflineToolhasbeenputontheGSTPortal

b. InthispilotschemeoftheNewReturnsOfflineTool,FormGSTANX-1,FormGSTANX-2 (withMatchingToolbuilt in it)andatemplate forPurchaseRegister(whichwillbeusedtoimportdataofpurchaseregisterformatching)hasbeenissued.


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Theimportantsalientfeaturesofnewreturnsareasunder:

Figure 6 - salient features of new GST returns

Extension of GSTR-9 and 9C(Latest decision at GST Council Meeting on 14th March,2020 (Quoted from Press release on 14th March 2020)TheGSTR-9&9Cdeadlineispostponedto30June2020forFY2018-19.Also,theturnoverlimitwillbefromRs2croretoRs5croreformandatoryannualreturnfiling.ThetaxpayerswithanaggregateannualturnoveroflessthanRs2croreinFY2017-18andFY2018-19willnotpayanylatefeefordelayedfilingofGSTR-9.

2. Matching concept WhenGSTwas introduced,toensurecomplyingwithTaxmechanism, . Government originated ‘matching concept’foravailingofInputTaxcredit.Todemandtaxcredit,thisidearequiresapurchasertomatchitstaxoutgowiththeGST collected in government exchequer and disclosed bythe seller on the government portal (against its outwardsupplies)everymonth.PurchaserwillberefusedTaxCreditifthereisanyinconsistentorunequaldealingfiledbytheseller. This ideawill guarantee uninterruptedmovementofcreditsalongthevaluechain,boostasupercomplianceatmosphereandwillavoidtaxcrime.IntherevisedGSTreturnschemewhichwillbeeffectivefrom 1st October,2020, Government desires that whennitigritty of transactions of Input Tax credit is put inplace and available to a taxpayer as a result of detailsof transactions uploaded by the suppliers it will beautopopulated‘(UPLOADLOCK-PAY’).Here,recipientwillclickonthebilltheinwardannexure,i.e.‘Accept’,‘Reject’or‘Keeppending’.Ataxpayerwillmatchbetweenitspurchaseregisterandinvoicesonthebasisofinputbyitssuppliersonarealtimebasis.

3. Anti-profiteering Thedefinitionofanti-profiteeringundertheGSTActistocheckthatanybenefitofdecreasingintheGSTisgiventothe customer.While the purpose behind the concept hasbeenclearbuttheapplicationoftheanti-profiteeringrulesis not so easy. The National Anti-Profiteering Authority(NAA)hasbeenestablishedunderSection171oftheGSTAct,2017tomakesurethatthebenefitofdecreaseinrateof

taxisgiventothebuyerbywayofcorrespondingreductioninprices.NAAwasinforcefornearlytwoyearsandfurtherhasbeenrenewedfortwomoreyears,tillNovember2021.However,since there isno specificdos anddonots tofix issues, itneeds clarification from NAA whether to consider pricespikeforinviewofpurebusinessandcommercialreasons.Accordingly,NAAshouldpromptlyclarifyandfine-tunethebenchmarktoavoidambiguitywhatindustriesarefacing.

4. GST AuditThree Types of GST Audita. Turnover-based Audit under Section 35(5) of CGST ActIftheannualturnoverofaregisteredtaxpayerismorethanRs.2croresinafinancialyear,thetaxpayerisrequiredtogethisaccountsauditedbyaCharteredAccountantorCostAccountanteveryyear.Calculationofturnoverwillbeasfollows:Aggregateturnover=Valueofalltaxable(inter-stateandintra-state)supplies+exemptsupplies+exportsuppliesofallgoodsandservicesb. Normal audit/General Audit by Tax Authorities:Commissioner authorized officers of CGST / SGST canconductsuchtypeofGSTaudit.Numbersofthisnatureofauditandmethodofsuchauditcanbedictatedsubsequently.TheCommissionerofficewill send letter15daysprior toaudittotheauditeeandsuchauditshallbefinalisedwithin3monthsfromthedateofcommencement.However,thisperiodof3monthscanbeincreasedbyanothersixmonthsbylogicalcausesrecordedinwritingbyacommissioner.c. Special Audits:ACAorCMAcanconductsuchtypeofauditoftheregistereddealerofhisrecordsprovidedminimumrankedAssistantCommissioner certifies and directs that the values havebeen declared erroneously and/or credits given beyondthenormal limits.However,CA orCMA for such aGSTauditwillhavetobenominatedbythecommissioner.Suchauditwillhavetobecompletedwithinninetydaysandthisninetydaystimecanbeincreasedbyanotherninetydays.OnfinalizationofspecialGSTauditthesummaryofreportaretobeinformedtotheauditeeinFormGSTADT-04.Reference1. https://www.fresherslive.com/news/history-of-gst

2. https://www.kotak.com/en/stories-in-focus/gst-rate-slabs.html

3. https://pib.gov.in/newsite/PrintRelease.aspx?relid=189619

4. https://gstindianews.info/gst-revenue-collection-and-return-filings-status-for-april-2018/

5. https://taxguru.in/goods-and-service-tax/important-salient-features-new-gst-returns-participation-request-during-trial-run.html

6. https://cleartax.in/s/gst-audit-annual-turnover-2-crores

7. https://www.taxmann.com/blogpost/2000001690/types-MarginisdependentuponSalesRealisationandCostofSales.


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MIS Report showing Various Cost Elements as % of Cost of Sales

CMA Rajesh KapadiaE-mail:[email protected]

Annexure-1 – Yearwise Trend of Cost Elements as % of Cost of Sales for Company/for Plant 1/for Product 1YEAR 2018-19(RsLacs) % 2017-18(RsLacs) % 2016-17(RsLacs) %

PARTICULARS

Sales

CostofSales

Margin

BreakUpCostofSales

RawMaterials

Electricity

Steam

CoolingWater

PackingMaterial

Salaries&Wages

ConsumableStores

RepairesExpenses

Depreciation

Insurance

Interest

StationeryforComputers

StationeryforotherOfficeuse

Travelling-Domestic

Travelling-Abroad

BusExpenses

Uniform

Security

LegalandProfessionalFees

Seminar

TelephoneExpenses

BooksandPeriodicals

AuditFees-FinancialAudit

AuditFees-CostAudit

TOTALCOSTOFSALES

MarginisdependentuponSalesRealisationandCostofSales.SoitbecomesimperativetoascertainVariousCostElementswhichmakeupultimateCostofSales.ThiscanbedonebyPreparingReportasmentionedinAnnexure–1.This enables the management to ascertain which Cost Elementsmanagementshould focusontoeithercontrolorreducetheConcernedCostElements.ThisWriteUpdiscussesMajorCostElementswhereManagement canfocus to Monitor, Control and Reduce Respective Cost Element andtherebyUltimateCostofSales.RawMaterialCostUsuallyitdominatesCostofSalesofManyCompanies/IndustriesToMonitor/Control/ReduceItsUsages1) TopurchaseRawMaterialofSuperiorQuality2) ToKeepPlant&MachineryinProperConditionToMonitor/Control/ReduceItsPrices1) OrderinBulkandNegotiateQuantityDiscount IfCompanyhasmore than1 similarPlants requiring similarRaw

Material, Combined PurchaseOrder can be placedwhichmay putcompanyinbetterbargainingcapacity.Companycannegotiatewell

2) ToexploreNewVendors3) Toavoidanyemergencypurchasetherebypayinghigherprices4) ToexplorethepossibilityofPuttingupofownplantElectricity CostItmayalsodominateCostofSalesofManyCompanies/IndustriesToMonitor/Control/ReduceItsUsages1) Plantshouldrunatoptimumcapacity2) SuggestionscanbeinvitedfromEmployeesworkingonShopFloors.

Companycansuitablyrewardanygoodsuggestion.3) PossibilitycanbeexploredtoreplaceexistingPlant&Machinerywith

new Energy Efficient after having carried out proper Cost BenefitAnalysisanditsPayBackPeriod.

ToMonitor/Control/ReduceItsPrices1) Totrytoexplorepossibilityofputtingupowngeneratingplant/wind

mills/solarSteamCost1) Tominimisetransmissionlosses/linelosses2) Explore the possibility toUpgrade theBoilerwithEnergyEfficient

BurnersStores & Spares / Repaires ExpensesIncidence of Expenses with respect to Consumable Stores & RepairesExpensesdependsuponageofplant&machineryandoperatingconditionsofplant&machinery.IfthereisanysubstantialincreaseinexpenditurewithrespecttoeitherConsumableStoresorRepairesExpenses,thenthisincreaseinexpenditureneedstobetracedtoparticularcostcentre/costcentresandreasonsforthesameshouldbediscussedwiththeHeadof thatcostcentreso thatappropriateactioncanbetakentopreventsuchrecurrence.EmphasisshouldbetoprocureitfromOriginalEquipmentManufacturetoensureitsQuality&itsRealiability&Lifespan.Sooverperiodoftime,itwillreduceitscostOrderinBulkandNegotiateQuantityDiscountCommon Purchase Order can be planced for same items required bydifferentplantsandthiswillenablethecompanytonegotiatebetterprice.StationeryExpenseswithrespecttoStationeryforComputer&StationeryforotherOfficeusecanbecontrolledbyenteringintoAnnualRateContractwithconcernedsupplierswhichcanbeeitherforagivenperiodorforagivenquantity.


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RegionalStudent’sCostConvention(RSCC)oftheWesternIndiaRegionalCouncilwasconductedatAurangabadandhostedbyICAI-AurangabadChapter.ThethemeofRSCCwas“75YearsofIndependenceVision2022–RoleofCMA”.ThisYear the conventionwasorganizedaftera longgapandverymuchappreciatedbystudentsandmembers.Wehavereceivedoverwhelmingresponsefromallthechaptersand students.More than 350 Students from 10 differentchaptersparticipated.

Convention was inaugurated by two Industrialists,Chief Guest Hon. Shri. R K Bagla, CMD Bagla Groupof Industries and Guest of Honor Hon. Shri. Atul Save,MLA Aurangabad East. CMA Neeraj Joshi, ChairmanWIRC,CMAAmitApte,ImmediatePastPresident,CMAAshishBhavsar,SecretaryWIRC,CMAManubhaiDesai,Past Chairman WIRC, Under his visionary leadershipWIRCstartedorganizingRSCC,CMAChaitanyaMohrir,Chairman,Students,MembersandChaptersCoordinationcommittee, CMA Parag Rane, Chairman AurangabadChapter & CMA Surendrasingh Deore, Vice Chairman,AurangabadChapterwereonDias.

CMAParagRane gaveWelcomeAddress and sharedhisviews about convention; CMA Chaitanya Mohrir sharedideas about theme of convention. CMA Ashish BhavsarIntroduces dignitaries on the dais. CMA Neeraj JoshisharedhisviewsaboutconventionandactivitiesgoingonatWIRC.CMAAmitApteaddressedtheparticipants.

CMA Manubhai Desai Senior member at the age of 87travelled all the way from Surat to bless the students.Underhisvisionary leadershipWIRChasstarredRSCC.He recently completed 87 Years hence he has donatedRs.87,000toWIRCandhandedoverthechequetoCMANeerajJoshiChairmanWIRC.Heexpressedhiswishthatformtheinterestofthedonatedamountaprizetobegiventotopperstudent.

Hon.Shri.RKBagla,andHon.Shri.AtulSave,guidedtheaudience.During their speech they informedhow aCostAccountantareimportanttoindustriesandalsoputtheirviews about expectations from Industry. Their guidancespeechaddedvaluetoparticipantsknowledge.

OnthisOccasion5revisionbookspreparedbythefacultiesfrom different chapters were released at the hands ofdignitariesonthedais.Ideabehindrevisionbookistohavealltheimportanttopics,formulainconciseformatatonceplacewhichwill behandier to studentsbeforeappearingexamination.

CMAKB Paranjape, very seniormember haswritten a

bookonCostingforthebenefitofstudents.Thisbookwasalsoreleasedatthehandsofdignitariesonthedais.

CMA Kiran Kulkarni, Secretary Aurangabad chapterofferedvoteofthanks.

In the first technical session we had a Mulakhat for 5successful Cost Accountants. Mulakhat Panelist wereCMAAmitApte,ImmediatePastPresident,CMARajeshDeshmukh,Industrialist,CMAAtithiMujamdarandCMAKiranKulkarniRepresenting IndustryandCMASalmanPathan, Young Practicing Cost Accountant. Mulakhatwas Conducted by CMA Amit Shahane, Practicing CostAccountant. All the Panelists shared their experiences,theirstruggle,learningtobecomesuccessfulinthelife.

InthesametechnicalsessionProf.KisanWatniconductedaMotivational lecture for the participants. During hisspeechhehasexplainedhowemotionalintelligencethekeytoprofessionalsuccess.

We have conducted PPT competition for students. 10differentsubjectsweregiventoparticipantsandfirstroundwasconductedatchapter leveland2bestteamsfrom10differentchapterswereparticipatedinthecompetition.Prof.IppearandProf.ChitniswereJudgesforthecompetition.WinningteamsconsistofalltheFemalestudents.

After PPT competition there was a cultural eventparticipated by students from different chapters. Thiseventwasverymuchenjoyedbyalltheparticipants.ThiseventisasymbolthatCMAstudentsareverymuchactivein extracurricular activities. CMA Vinayak Kulkarni &CMAAshishDevdhewereJudgesfortheculturalevent.

ValedictorysessionwaschairedbyHon.Shri.RaghavendraJoshi,CMDRJGroupofIndustries.

CMA Neeraj Joshi, Chairman WIRC, CMA ChaitanyaMohrir, Chairman, Students , Members and ChaptersCoordination committee, CMA Vinayak Kulkarni RCM,CMAParagRane,ChairmanAurangabadChapter&CMAArunJoshi,ManagingCommitteemember AurangabadChapter, CMA Shailendra Singh Rajput, ManagingCommitteememberAurangabadChapterwereonDias.

CMA Parag Rane delivered Welcome Address, CMAChaitanyaMohrir shared summary ofRSCC 2020.CMAArun Joshi Introduced Chief Guest Shri. RaghavendraJoshi. CMAVinayakKulkarni addressed the gathering.CMA Neeraj Joshi Chairman addressed the gatheringduring his speech he appreciated the organization andgivenusefultipstostudents.CMAShailendraSinghRajputofferedVoteofThanks.

Chief Guest Hon. Raghavendra Joshi felicitated PPT

Regional Student’s Cost Convention (RSCC) Report


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competition winners, Cultural competition winners StaffofAurangabadChapter,Volunteersrepresentative.OntheEveofWomen’sdayHon.ChiefguestalsofelicitatedAlltheLadyCMAMemberspresentedattheevent.

InhisspeechHonShriRaghavendraJoshiSirsharedhisviewsaboutCostingandalsosharedhisexperiencehowhebecamesuccessful in life.Healso informedthatIndustrydemandsforaknowledgeable,hardworkingpersonintheareaofAccountsandCosting.HealsosharedthedemandformindustryandexpectationsfromapersonworkinginAccounts and Costing department. His guidance speechaddedvaluetoparticipantsknowledge.

Inaugural and valedictory session was hosted by CMASanvediParagRaneayoungandenthusiasticCostAccountantfromAurangabad.

The RSCC was successfully concluded with a nationalAnthem.

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORYBODYUNDERANACTOFPARLIAMENT)CMABHAWAN12,SUDDERSTREET,KOLKATA–700016.

Telephones : +91-33-2252-1031/1034/1035 +91-33-2252-1602/1492/1619 +91-33-2252-7143/7373/2204Fax : +91-33-2252-7993 +91-33-2252-1026 +91-33-2252-1723Website : www.icmai.in

Ref.No.G/128/4/2020 2ndApril2020

NOTIFICATION

Sub: Extension of time for Continuing Education Programme (CEP) Credit Hours for renewal of Certificate of Practice (COP) for the year 2020-21

AspertheGuidelinesforMandatoryTrainingforallMembersofTheInstituteunderContinuingEducationProgramme(CEP),itismandatoryforthemembersholdingCertificateofPractice(COP)toundergominimummandatorytrainingof15hoursperyearcommencingfrom1stAprilto31stMarchand50hoursinablockof3yearsandformembersabovetheageof65yearsitis7hoursperyearand25hoursinablockof3years.

IftheCOPofmembersisnotrenewedfortheyear2020-21duetoshortfallinCEPhours,itmightcausehardshiptothosememberswhothriveexclusivelyonpracticenotwithstandingthefactthatcomplianceofprescribedminimumrequirementofCEPhoursismandatoryforrenewalofCertificateofPractice.

Inviewoftheabove,ithasbeendecidedbytheCounciloftheInstitutetograntextensionupto30thJune2020tocompletetherequirementofCEPCreditHoursforrenewalofCOPofthemembersfortheyear2020-21.However,fortheCEPhourscreditedduringtheperiod1stApril2020to30thJune2020,membersarerequiredtoinformwhethertheseCEPhoursaretobeaccountedfortheyear2019-20orfortheyear2020-21.

CMA Kaushik Banerjee Secretary

Press Coverage


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about the achievements and forthcoming plans of theTrainingCommittee.

Mr.IntiyazJaleelHon.M.P.ofAurangabadappreciatedtheefforts ofAurangabadChapter for thededicatedServicesof last31yearsgiventothestudents fromruralarea inMarathwadaregion.Hepromisedtosupporttheactivitiesof theChapterandalsohelp forconstructionofproposedCMABhawanoftheAurangabadChapter.

CMANeerajJoshi Chairman–WIRCcongratulated thesuccessful students and assured them full support fromWIRC in near future andmentioned thatCMA studentshave excellent career opportunities of employments inIndiaandabroad.

CMA Sanvedi Rane co-ordinated the program and CMAKiranKulkarni–Secretaryproposedvoteofthanks.

KALYAN AMBERNATHPrize distribution function & celebration of International Women’s day :On6thMarch2020,ChapterorganizedPrizeDistributionFunctionfortheStudentsFoundation,InterandFinalpassingDec. 2019 examination and celebration of InternationalWomen Day at “T.H.M. Auditorium” Ulhasnagar. CMAM.R. Dudani, Chairman of Chapter welcomed the ChiefGuest CA Manya Hari Dudani Practising CharteredAccountants,GuestofHonourC.A.(Prof.)ReshmiGurnanifaculty member Smt. C.H.M.College of Arts Science& Commerce, Special Invitee, Prof. C.A. (Dr.) BhavnaBinwani, Vice Principal, Smt. C.H.M. College of ArtsScience&Commerce.

Function started with lighting of lamp by Chief Guest,and Guest of honor Chairman of Chapter, ManagingCommitteemembersand facultymembersattendingthefunction.CMANeetuKapoorintroducedtheChiefGuest,GuestofHonour,SpecialInviteeandotherdignitories.

On the occasion facultymembers of chapter Prof. AnjaliBijlani, Prof. Jyoti Chand, Prof.CMA Sandhya Kotwani,Prof. CMA Shama Khan, Prof. Savita Punjabi, seniorfaculty fromBharatCollege,Badlapur,and Prof.SanjayPremchandani,werefelicitatedforrecognitionofroleplayedbytheminimprovingexaminationofchapter.

PrizesweredistributedatthehandsofCMAM.R.Dudani,ChairmanofChapter,C.A.ManyaHariDudaniCMAG.B.Shamnani,CMAGopalU.Keswani,andCMANeetuS.Kapoor.OntheoccasionMissRuchitaR.Wadgeri,StudentofChapter,whosecured41stRankatAllIndialevelwasalsofelicitated.

Programmewasco-coordinatedbyMr.RajuP.C.ExecutiveSecretary,Mr.RaviRohraOfficeAssistant,CMADevendraDeshpande andStudent volunteersMr.PankajKukrejaandMr.KamleshG.Kannar.ProgrammewasanchoredbyCMANeetuKapoor,Secretary ofChapter and she alsoproposedvoteofthanks.Programmeendedwithnationalanthem.

CHAPTER NEWSAHMEDABAD

Ahmedabadchapterhadorganizedmembers’meeton13thMarch 2020 at the hotel Fortune park, Ahmedabad. Allcouncilandregionalcouncilmemberswereinvitedtoattendthismeet.Ahmedabadchapterwasfortunatetohavethepresence ofCMABalwinder SinghPresident ICAI,CMABiswarupBasuVicepresidentICAI,CMANeerajJoshiCCMandChairmanWIRC,CMAAshwinDalwadiCCM,CMAChittaranjanChattopadhyayCCM,CMAAshishBhavsarRCMandHON.SecretaryWIRC,ChaitanyaMohrirRCMinthismeet.Morethan85membersofAhmedabadchapterattendedthemeet.ChairmanofAhmedabadchapterCMAHaren Bhatt welcomed all the dignitaries and membersand gave brief introduction of all the dignitaries andfelicitatedPresidentCMABalwindersingh.Afterthatallotherdignitarieswerefelicitatedbyseniormembersofthechapter.WIRCmobileAPPwaslaunchedbypresidentCMABalwinderSingh.AfterthatCMANeerajJoshiChairmanWIRC, briefed about mobile APP and WIRC currentactivities.PresidentCMABalwinderSinghgavebriefideaabouthowcurrentcouncilisactivelyfunctioningoncurrentand pending issues and what they are doing to improvepresenceofourprofession.VicepresidentCMABiswarupBasuandCCMCMAChittarananChattopadhyaythankedAhmedabad chapter for invitation and conveyed best ofluck toAhmedabad chapter.Membersdeliberated on thevarious issues of their concern related to our profession.Mr.P.P.Dave,averysenioremployee,retiringinMarchendwasfelicitatedbyourPresident.

CMAMalharDalwadiHon.Secretarygavevoteofthankstoallthedignitariesandmembersforsparingtheirvaluabletimeandmakingthismeetmostsuccessfulandinvitedallthememberstojoinforthedinner.

AURANGABADFelicitationfunctionofsuccessfulstudentsofFinal,InterandFoundationExaminationsheldinDec.2018,June2019&Dec.2019washeldon7thMarch2020atBanudasraoChavanAuditorium,InstituteofEngineers,Aurangabad.

Hon.M.P.ofAurangabadMr.ImtiyazJaleelwastheChiefGuestfortheprogramme.CMANeerajJoshi,ChairmanofWIRCofICAIwastheGuestofHon.RCMofWIRCCMAChaitanyaMohrirandCMAVinayakKulkarnigracedtheoccasion. In all total 481 successful students in variousexamination levels were felicitated. Twentyone completeCMAswerefelicitatedalongwiththeirfamily.

CMAParagRaneChairmanofAurangabadChapterofICAI,CMA Kiran Kulkarni, Secretary and CMAM.R. Pandit,Chairman, Training & Education Committee welcomedthe Guest. CMA Sanvedi Rane introduced the guest tothe audience. CMA Parag Rane, Chairman-AurangabadChapter briefed about the Activities of the Chapter andCMAM.R.Pandit,Chairman-TrainingCommitteespoke


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Women’s Day Celebration - 8th March 2020

WIRCCelebratedInternationalWomen’sDayon8thMarch2020atThaneSMFC.

Dr.SujataYardi,MasterofScience(Physiotherapy),FIAP,Professor&DeanofCollegeofPhysiotherapyNerul, Mrs.VarshaKolhatkar,AssttCommissionerCustomsandCGST&CMAArtiPatil,ChiefGeneralManager SaraswatCo-op.BankLtd.weretheGuestspeakers.

Topicscovered:

• PreventionofSexualHarassment.

• OnestepForwardwithGenerationNext.

• WomenEmpowerment.

CMANeerajJoshi,ChairmanWIRC,CMADr.AshishThatte,CCM-ICAI,CMAChaitanyaMohrir,Chairman,TaskForceforWomenEmpowerment,WIRC&CMAVinayakKulkarni,ProfessionalDevelopmentCommittee-WIRCwerealsopresentontheoccasion.

LargenumberofWomenCMAsfromMumbai,Pune&NashikparticipatedtheeventwhichwasfollowedbyLunch.

Dr.SujataYardi,MasterofScience (Physiotherapy),FIAP,Professor&DeanofCollegeofPhysiotherapyNerul lightingthe lamp.Alsoseen(LtoR)CMAVinayakKulkarni,Chairman,ProfessionalDevelopmentCommittee-WIRC, CMA Neeraj Joshi, Chairman-WIRC, Mrs. Varsha Kolhatkar, Asst. Commissioner,CustomsandCGST&CMAArtiPatil,ChiefGeneralManager,SaraswatCo-op.BankLtd.


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Glimpses of Felicitation Function organised by Aurangabad Chapter on 7th March 2020

Members Meet at Ahmedabad Chapter held on 13th March 2020

RNI No. 22703/72 Posted at Mumbai Patrika Channel on 10th of every month. Date of Publication is on 10th of every month.Postal Regn. No. MCS/089/2018-20 WPP License No. MR/TECH/WPP-41/South/2018-20

Printed&PublishedbyAshishkumarSureshchandraBhavsar onbehalf of theWestern IndiaRegionalCouncil of the Institute ofCostAccountantsofIndia,PrintedatM/s.SurekhaPress,A20ShalimarIndustrialEstate,Matunga,Mumbai400019.PublishedatWesternIndiaRegionalCounciloftheInstituteofCostAccountantsofIndia,RohitChambers,4thFloor,JanmabhoomiMarg,Mumbai400001.Editor:AshishkumarSureshchandraBhavsar.

Disclaimer1. WIRCdoesnottakeresponsibilityforreturningunsolicitedpublicationmaterial.Unsolicitedarticlesandtransparenciesaresent

inattheowner’sriskandthepublisheracceptsnoliabilityforlossordamage.

2. TheviewsexpressedbytheauthorsarepersonalanddonotnecessarilyrepresenttheviewsoftheWIRCandthereforeshouldnotbeattributedtoit.

3. WIRCisnotinanywayresponsiblefortheresultofanyactiontakenonthebasisofthearticlesand/oradvertisementspublishedinthebulletin.Thematerialinthispublicationmaynotbereproduced,whetherinpartorinwhole,withouttheconsentoftheEditor,WIRC.

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