COST AND WORKS ACCOUNTANTS ACT, 1959

[Act No. 23 of Year 1959]

An Act to make provision for the regulation of the profession of cost and works accountants.

Be it enacted by Parliament in the Tenth Year of the Republic of India as follows: -

Comment: The Act seeks to authorise the establishment of an autonomous Institute of Cost Accountants and to entrust to it the functions of regulating the profession.

CHAPTER I: PRELIMINARY1959

1. Short title, extent and commencement

(1) This Act may be called the Cost and Works Accountants Act, .

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions and interpretation

(1) In this Act, unless the context otherwise requires-

(a) "associate" means an associate member of the Institute;

(b) "cost accountant" means a person who is a member of the Institute.

(c) "Council" means the Council of the Institute;

(d) "dissolved company" means the Institute of Cost and Works Accountants registered under the Companies Act, 1956 (8 of 1956);

(e) "fellow" means a fellow of the Institute;

(f) "Institute" means the Institute of Cost and Works Accountants of India constituted under this Act;

(g) "prescribed" means prescribed by regulations made under this Act;

(h) "President" means the President of the Council;

(i) "Register" means the Register of members maintained under this Act;

(j) "Vice-President" means the Vice-President of the Council;

(k) "year" means the period commencing on the lst day of April of any year and ending on the 31st day of March of the succeeding year.

(2) Save as otherwise provided in this Act, a member of the Institute shall be deemed "to be in practice" when, individually or in partnership with one or more members of the Institute in practice, he, in consideration of remuneration received or to be received-

(i) engages himself in the practice of cost and works accountancy; or

(ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or certification of cost accounting and related statements or holds himself. out to the public as a cost accountant in practice; or

(iii) renders professional services or assistance in or about matters of principle or detail relating to cost accounting procedure or the recording, presentation or certification of costing facts or data; or

(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a cost accountant in practice;

and the words "to be in practice", with their grammatical variations and cognate expressions, shall be construed accordingly.

Explanation : A member of the Institute who is a whole-time salaried employee of any person shall not be deemed to be in practice within the meaning of this sub-section.

CHAPTER II: THE INSTITUTE OF COST AND WORKS ACCOUNTANTS

3. Incorporation of the Institute

(1) All persons whose names are entered in the Register at the commencement of this Act and all persons who may hereafter have their names entered in the Register under the provisions of this Act, so long as they continue to have their names borne on the said Register, are hereby constituted a body corporate by the name of the Institute of Cost and Works Accountants of India, and all such persons shall be known as members of the Institute.

(2) The Institute shall have perpetual succession and a common seal, and shall have power to acquire, hold and dispose of property, both movable and immovable, and shall by its name sue or be sued.

4. Entry of names in the Register

(1) Any of the following persons shall be entitled to have his name entered in the Register, namely,-

(i) any person who was an associate or a fellow of the dissolved company (other than an honorary associate or honorary fellow thereof) immediately before the commencement of this Act, except any such person who is not a permanent resident of India and is not at such commencement practising as a cost accountant in India;

(ii) any person who has passed such examination and completed such training as may be prescribed for members of the Institute;

(iii) any person who, at the commencement of this Act, is engaged in the practice of cost accountancy in India and who fulfils such conditions as the Central Government or the Council may specify in this behalf;

(iv) any person who has passed such other examination and completed such other training without India as is recognised by the Central Government or the Council as being equivalent to the examination and training prescribed for members of the Institute :

PROVIDED that in the case of any person who is not permanently residing in India, the Central Government or the Council may impose such further conditions as it may deem fit.

(v) any person domiciled in India, who at the commencement of this Act is studying for any foreign examination and is at the same time undergoing training, whether within or without India, or, who, having passed such examination, is at such commencement undergoing training whether within or without India:

PROVIDED that such foreign examination and training are recognised by the Central Government or the Council in this behalf.

PROVIDED FURTHER that the person passes the examination and completes his training within five years from the commencement of this Act.

(2) Every person belonging to the class mentioned in clause (i) of sub-section (1) shall have his name entered in the Register without the payment of any entrance fee.

(3) Every person belonging to any of the classes mentioned in clauses (ii), (iii),(iv) and (v) of sub-section (1) shall have his name entered in the Register or application being made and granted in the prescribed manner and on payment of the prescribed entrance fee, which shall not exceed rupees three hundred in any case.

(4) The Central Government shall take such steps as may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (i) of sub-section (1) entered in the Register at the commencement of this Act.

5. Fellows and associates

(1) The members of the Institute shall be divided into two classes designated respectively as associates and fellows.

(2) Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the Register, be deemed to have become an associate member of the Institute and so long as his name remains so entered, shall be entitled to use the letters AICWA after his name to indicate that he is an associate member of the Institute of Cost and Works Accountants.

(3) Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the Register under clause (i) of sub-section (1) of section 4, shall be entered in the Register as a fellow of the Institute.

(4) A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of this Act, or whether partly before and partly after the commencement of this Act, and a member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a cost accountant shall, on payment of the prescribed entrance fee, which shall not exceed rupees two hundred in any case, and on application made and granted in the prescribed manner, be entered in the Register as a fellow of the Institute.

Explanation I: For the purposes of this sub-section, a person shall be deemed to have practised in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practice during that period.

Explanation II: In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which the person has been an associate of the dissolved company immediately before he became an associate of the Institute.

(5) Any person whose name is entered in the Register as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letter FICWA after his name to indicate that he is a fellow of the Institute of Cost and Works Accountants..

6. Certificate of practice

(1) No member of the Institute shall be entitled to practise, whether in India or elsewhere, unless he has obtained from the Council a certificate of practice.

(2) Every such member shall make application in such form and pay such annual fee, for his certificate as may be prescribed, and such fee shall be payable on or before the lst day of April in each year:

PROVIDED that if a member of the Institute who was in practice immediately before the commencement of this Act has made within one month of such commencement an application for the grant of certificate of practice, he shall not be deemed to have contravened the provisions of sub-section (1) by reason of his having practised during the period between such commencement and the disposal of the application.

7. Members to be known as cost accountants

Every member of the Institute in practice shall, and any other member may, use the designation of a cost accountant and no member using such designation shall use any other description, whether in addition thereto or in substitution therefor:

PROVIDED that nothing in this section shall be deemed to prohibit any such member from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute of accountancy, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as cost accountants.

8. Disabilities

Notwithstanding anything contained in section 4, a person shall not be entitled to have his name entered in, or borne on, the Register if he-

(i) has not attained the age of twenty-one years at the time of his application for the entry of his name in the Register; or

(ii) is of unsound mind and stands so adjudged by a competent court; or

(iii) is an undischarged insolvent; or

(iv) being a discharged insolvent, has not obtained from the court a certificate stating that this insolvency was caused by misfortune without any misconduct on his part; or

(v) has been convicted by a competent court whether within or without India, of an offence involving moral turpitude and punishable with imprisonment or of an offence, not of a technical nature, committed by him in his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the Central Government has, by an order in writing removed the disability; or

(vi) has been removed from membership of the Institute on being found on inquiry to have been guilty of professional or other misconduct:

PROVIDED that a person who has been removed from membership for a specified period, shall not be entitled to have his name entered in the Register until the expiry of such period.

CHAPTER III: COUNCIL OF THE INSTITUTE

9. Constitution of the Council of Institute

(1) There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it by or under this Act.

(2) The Council shall be composed of-

(a) not more than twelve persons elected by members of the Institute from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified in this behalf by the Central Government by notification in the Official Gazette; and

(b) not more than four persons nominated by the Central Government.

10. Mode of election to Council

(1) Elections under clause (a) of sub-section (2) of section 9 shall be conducted in the prescribed manner:

PROVIDED that the first election under the said clause shall be held in such manner as the Central Government may specify in this behalf.

(2) Where any dispute arises regarding any such election, the matter shall be referred by the Council to a Tribunal appointed by the Central Government in this behalf and the decision of such Tribunal shall be final:

PROVIDED that no such reference shall be made except on an application made to the Council by an aggrieved party within thirty days from the date of the declaration of the result of the election.

(3) The expenses of the Tribunal shall be borne by the Council.

11. Nomination in default of election

If the members of the Institute fail to elect any member under clause (a) of sub-section (2) of section 9 from any of the regional constituencies that may be specified under that clause, the Central Government may nominate any duly qualified person from such constituency to fill the vacancy, and any person so nominated shall be deemed to be a duly elected member of the Council.

12. President and Vice-President

(1) The Council at its first meeting shall elect two of its members to be respectively the President and the Vice-President thereof, and so often as the office of the President or the Vice-President becomes vacant, the Council shall choose a person to be the President or the Vice-President, as the case may be:

PROVIDED that on the first constitution of the Council a member of the Council nominated in this behalf by the Central Government shall discharge the functions of the President, until such time as a President is elected under the provisions of this sub-section.

(2) The President shall be the Chief Executive Authority of the Council.

(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond his term of office as a member of the Council, and subject to his being a member of the Council at the relevant time, he shall be eligible for re-election:

PROVIDED that the President of the Council at the time of the expiration of its duration shall continue to hold office until a new Council is constituted in accordance with the provisions of this Act.

13. Resignation of membership and casual vacancies

(1) Any member of the Council may at any time resign his membership by writing under his hand addressed to the President, and the seat of such member shall become vacant when such resignation is notified in the Official Gazette.

(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient cause from three consecutive meetings of the Council, or if his name is, for any cause, removed from the Register under the provisions of section 20.

(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall hold office until the dissolution of the Council:

PROVIDED that no election shall be held to fill a casual vacancy occurring within six months prior to the date of the expiration of the duration of the Council, but such a vacancy may be filled by nomination by the Central Government after consultation with the President of the Council.

(4) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Council.

14. Duration and dissolution of Council

(1) The duration of any Council constituted under this Act shall be three years from the date of its first meeting.

(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as the former Council), the former Council shall continue to exercise its functions under this Act until a new Council is constituted in accordance with the provisions of this Act, and on such constitution, the former Council shall stand dissolved.

15. Functions of the Council

(1) The duty of carrying out of the provisions of this Act shall be vested in the Council.

(2) In particular, and without prejudice to the generality of the foregoing power, the duties of the Council shall include-

(a) the examination of candidates for enrolment and the prescribing of fees therefor;

(b) the registration and training of students;

(c) the prescribing of qualifications for entry in the Register;

(d) the recognition of foreign qualifications and training for purposes of enrolment;

(e) the granting or refusal of certificates of practice under this Act;

(f) the maintenance and publication of a Register of persons qualified to practise as cost accountants;

(g) the levy and collection of fees from members, examinees and other persons;

(h) the removal of names from the Register and restoration to the Register of names which have been removed;

(i) the regulation and maintenance of the status and standard of professional qualifications of members of the Institute;

(j) the carrying out, by financial assistance to persons other than members of the Council or in any other manner, of research in accountancy;

(k) the maintenance of libraries and publication of books and periodicals relating to cost accountancy and allied subjects; and

(1) the exercise of disciplinary powers conferred by this Act.

16. Staff remuneration and allowances

(1) For the efficient performance of its duties, the Council, may-

(a) appoint a Secretary who may also, if so decided by the Council, act as Treasurer;

(b) appoint such other persons on its staff as it deems necessary;

(c) require and take from the Secretary or from any other employee of the Council such security for the due performance of his duties as the Council considers necessary;

(d) fix the salaries, fees, allowances and other conditions of service of the Secretary and other employees of the Council;

(e) with the previous sanction of the Central Government fix the allowances of the President, Vice-President and other members of the Council and its Committees.

(2) The Secretary of the Council shall be entitled to participate in the meetings of the Council and the Committees thereof but shall not be entitled to vote thereat.

17. Committees of the Council

(1) The Council shall constitute from amongst its members the following Standing Committees, namely,-

(i) an Executive Committee;

(ii) a Disciplinary Committee; and

(iii) an Examination Committee;

(2) The Council may also form a Training and Educational Facilities Committee and such other committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Act.

(3) The Executive Committee shall consist of the President, and the Vice-President, ex officio, and three other members of the Council elected by the Council.

(4) The Disciplinary Committee shall consist of the President, ex officio, one member to be nominated by the Central Government from amongst the members nominated to the Council by that Government and one member to be elected by the Council.

(5) The Examination Committee shall consist of the President or the Vice-President, ex officio, as the Council may decide, and two other members of the Council elected by the Council.

(6) Notwithstanding anything contained in this section, any Committee formed under sub-section (2), may, with the sanction of the Council, co-opt such other members of the Institute not exceeding two-thirds of the total membership of the Committee as the Committee thinks fit, and any member so co-opted shall be entitled to exercise all the rights of a member of the Committee.

(7) The President shall be the Chairman of every committee of which he is a member, and in his absence, the Vice-President, if he is a member of the committee, shall be the Chairman.

(8) The Standing Committees and other committees formed under this section shall exercise such functions and be subject to such conditions in the exercise thereof as may be prescribed.

18. Finances of the Council

(1) There shall be established a fund under the management and control of the Council into which shall be paid all moneys received by the Council and out of which shall be met all expenses and liabilities properly incurred by the Council.

(2) The Council may invest any money for the time being standing to the credit of the fund in any government security or in any other security approved by the Central Government.

(3) The Council shall keep proper accounts of the funds distinguishing capital from revenue.

(4) The annual accounts of the Council shall be subject to audit by a chartered accountant in practice within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), to be appointed annually by the Council:

PROVIDED that no member of the Council who is a chartered accountant or a person who is in partnership with such member shall be eligible for appointment as an auditor under this sub-section.

(5) As soon as may be practicable at the end of each year, but not later than the 30th day of September of the year next following, the Council shall cause to be published in the Gazette of India a copy of the audited accounts and the Report of the Council for that year and copies of the said accounts and Report shall be forwarded to the Central Government and to all the members of the Institute.

(6) The Council may borrow from a scheduled bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), or from the Central Government-

(a) any money required for meeting its liabilities on capital account on the security of the fund or on the security of any other assets for the time being belonging to it; or

(b) for the purpose of meeting current liabilities pending the receipt of income by way of temporary loan or over-draft.

CHAPTER IV: REGISTER OF MEMBERS

19. Register

(1) The Council shall maintain in the prescribed manner a Register of the members of the Institute.

(2) The Register shall include the following particulars about every member of the Institute, namely,-

(a) his full name, date of birth, domicile, residential and professional addresses;

(b) the date on which his name is entered in the Register;

(c) his qualifications;

(d) whether he holds a certificate of practice; and

(e) any other particulars which may be prescribed.

(3) The Council shall cause to be published in such manner as may be prescribed a list of members of the Institute as on the lst day of April of each year, and shall, if requested to do so by any such member, send him a copy of such list.

(4) Every member of the Institute shall, on his name being entered in the Register, pay such annual membership fee differing in amount according as he is an associate or a fellow as may be prescribed.

20. Removal from the Register

(1) The Council may remove from the Register the name of any member of the Institute,-

(a) who is dead; or

(b) from whom a request has been received to that effect; or

(c) who has not paid any prescribed fee required to be paid by him; or

(d) who is found to have been subject at the time when his name was entered in the Register, or who at any time thereafter has become subject, to any of the disabilities mentioned in section 8, or who for any other reason has ceased to be entitled to have his name borne on the Register.

(2) The Council shall remove from the Register the name of any member in respect of whom an order has been passed under this Act removing him from membership of the Institute.

CHAPTER V: MISCONDUCT

21. Procedure in inquiries relating to misconduct of members of Institute

(1) Where on receipt of information by, or a complaint made to it, the Council is prima facie of opinion that any member of the Institute has been guilty of any professional or other misconduct, the Council shall refer the case to the Disciplinary Committee constituted under section 17, and the Disciplinary Committee shall thereupon hold such inquiry and in such manner as may be prescribed and shall report the result of its inquiry to the Council.

(2) If on receipt of such report the Council finds that the member of the Institute is not guilty of any professional or other misconduct, it shall record its finding accordingly and direct that the proceedings shall be filed, or the complaint shall be dismissed, as the case may be.

(3) If on receipt of such report the Council finds that the member of the Institute is guilty of any professional or other misconduct, it shall record a finding accordingly, and shall proceed in the manner laid down in the succeeding sub-sections.

(4) Where the finding is that a member of the Institute has been guilty of a professional misconduct specified in the First Schedule, the Council shall afford to the member an opportunity of being heard before orders are passed against him on the case, and may thereafter make any of the following orders, namely,-

(a) reprimand the member;

(b) remove the name of the member from the Register for such period, not exceeding five years, as the Council thinks fit:

PROVIDED that where the Council is of opinion that the case is one in which the name of the member ought to be removed from the Register for a period exceeding five years or permanently, it shall not make any order referred to in clause (a) or clause (b), but shall forward the case to the High Court with its recommendations thereon.

(5) Where the misconduct in respect of which the Council has found any member of the Institute guilty is a misconduct other than any such misconduct as is referred to in sub-section (4), it shall forward the case to the High Court with its recommendations thereon.

(6) On receipt of any case under sub-section (4) or sub-section (5), the High Court shall fix a date for the hearing of the case and shall cause notice of the date so fixed to be given to the member of the Institute concerned, the Council and to the Central Government, and shall afford such member, the Council and the Central Government an opportunity of being heard and may thereafter make any of the following orders, namely,-

(a) direct that the proceedings be filed, or dismiss the complaint, as the case may be;

(b) reprimand the member;

(c) remove him from membership of the Institute either permanently or for such period as the High Court thinks fit;

(d) refer the case to the Council for further inquiry and report.

(7) Where it appears to the court that the transfer of any case pending before it to another High Court, will promote the ends of justice or tend to the general convenience of the parties, it may so transfer the case, subject to such conditions, if any, as it thinks fit to impose, and the High Court to which such case is transferred shall deal with it as if the case had been forwarded to it by the Council.

Explanation I: In this section "High Court" means the highest civil court of appeal, not including the Supreme Court, exercising jurisdiction in the area in which the person whose conduct is being inquired into carries on business, or has his principal place of business at the commencement of the inquiry:

PROVIDED that where the cases relating to two or more members of the Institute have to be forwarded by the Council to different High Courts, the Central Government shall, having regard to the ends of justice and the general convenience of the parties, determine which of the High Courts to the exclusion of others shall hear the cases against all the members.

Explanation II: For the purposes of this section "member of the Institute" includes a person who was a member of the Institute on the date of alleged misconduct although he has ceased to be a member of the Institute at the time of the inquiry.

(8) For the purposes of any inquiry under this section the Council and the Disciplinary Committee shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters,-

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) the discovery and production of any document; and

(c) receiving evidence on affidavits.

22. Misconduct defined

For the purposes of this Act, the expression "professional misconduct" shall be deemed to include any act or omission specified in any of the Schedules, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Council under sub-section (1) of section 21 to inquire into the conduct of any member of the Institute under any other circumstances.

CHAPTER VI: REGIONAL COUNCILS

23. Constitution and functions of Regional Councils

(1) For the purpose of advising and assisting on matters concerning its functions, the Council may constitute such Regional Councils as and when it deems fit for one or more of the regional constituencies that may be specified by the Central Government under clause (a) of sub-section (2) of section 9.

(2) The Regional Councils shall be constituted in such manner and exercise such functions as may be prescribed.

CHAPTER VII: PENALTIES

24. Penalty for falsely claiming to be a member, etc.

Any person who-

(i) not being a member of the Institute-

(a) represents that he is a member of the Institute; or

(b) uses the designation, cost accountant; or

(ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practices as a cost accountant;

shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.

25. Penalty for using name of the Council, awarding degrees of cost accountancy, etc.

(1) Save as otherwise provided in this Act, no person shall-

(i) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it as to deceive or as is likely to deceive the public;

(ii) award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute; or

(iii) seek to regulate in any manner whatsoever the profession of cost and works accountants.

(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.

(3) Nothing contained in this section shall apply to any university established by law or to any body affiliated to the Institute.

(4) If the Central Government is satisfied that any diploma or certificate or any designation granted or conferred by any person other than the Institute, which purports to be a qualification in cost accountancy but which, in the opinion of the Central Government, falls short of the standard of qualifications prescribed for cost accountants and does not in fact indicate or purport to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute, it may, by notification in the Official Gazette and subject to such conditions as it may think fit to impose, declare that this section shall not apply to such diploma or certificate or designation.

26. Companies not to engage in cost accountancy

(1) No company, whether incorporated in India or elsewhere, shall practice as cost accountants.

(2) Any contravention of the provisions of sub-section (1) shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction to five thousand rupees.

27. Unqualified persons, not to sign documents

(1) No person other than a member of the Institute shall sign any document on behalf of a cost accountant in practice or a firm of such cost accountants in his or its professional capacity.

(2) Any person contravening the provision of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable with fine which may extend on first conviction to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.

28. Offences by companies

(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in this sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation: For the purposes of this section-

(a) "company", with respect to an offence under section24, section 25 or section 27, means any body corporate and includes a firm or other association of individuals; and with respect to an offence under section 26 means a body corporate; and

(b) "director" in relation to a firm, means a partner in the firm.

29. Sanction to prosecute

No person shall be prosecuted under this Act except on a complaint made by or under the order of the Council or of the Central Government.

CHAPTER VIII: DISSOLUTION OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS REGISTERED UNDER THE COMPANIES ACT, 1956 (1 OF 1956)

30. Dissolution of the Institute of Cost and Works Accountants registered under the Companies Act, 1956

On the commencement of this Act-

(a) the company known as the Institute of Cost and Work Accountants registered under the Companies Act, 1956 (1 of 1956), shall be dissolved and thereafter no person shall make, assert or take any claims, demand or proceedings against the dissolved company or against any officer thereof in his capacity as such officer except insofar as may be necessary, for enforcing the provisions of this Act;

(b) the right of every member to or in respect of the dissolved company shall be extinguished, and thereafter no member of that company shall make, assert or take any claims or demands or proceedings in respect of that company except as provided in this Act.

31. Transfer of assets and liabilities of the dissolved company to the Institute

(1) On the commencement of this Act, there shall be transferred to and vested in the Institute all the assets and liabilities of the dissolved company.

(2) The assets of the dissolved company shall be deemed to include all rights and powers, and all property, whether movable or immovable of the company, including, in particular, cash balances, reserve funds, investments, deposits and all other interests and rights in or arising out of such property as may be in the possession of the dissolved company and all books of accounts or documents of the dissolved company and the liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind then existing of that company.

(3) All contracts, debts, bonds, agreements and other instruments of whatever nature to which the dissolved company is a party, subsisting or having effect immediately before the commencement of this Act, shall be of as full force and effect against or in favour of the Institute, as the case may be, and may be enforced as fully and effectively as if instead of the dissolved company, the Institute had been a party thereto.

(4) If, on the commencement of this Act, any suit, appeal or other legal proceeding of whatever nature by or against the dissolved company is pending, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the Institute of the assets and liabilities of the dissolved company or of any thing contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the Institute, in the same manner and to the same extent as it would or may be continued, prosecuted and enforced by or against the dissolved company if this Act had not been passed.

32. Provisions respecting employees of the dissolved company

(1) Every person employed in the dissolved company prior to the lst day of September, 1958, and still in its employment immediately before the commencement of this Act shall, as from such commencement, become an employee of the Institute, shall hold his office or service therein by the same tenure and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity as he would have held the same under the dissolved company if this act had not been passed, and shall continue to do so unless and until his employment in the Institute is terminated or until his remuneration, terms and conditions of employment are duly altered by the Institute.

(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any employee of the dissolved company to the Institute shall not entitle any such employee to any compensation under that Act or other law, and no such claim shall be entertained by any court, Tribunal or other authority.

CHAPTER IX: MISCELLANEOUS

33. Appeals

(1) Any member of the Institute aggrieved by any order of the Council imposing on him any of the penalties referred to in clause (a) or clause (b) of sub-section (4) of section 21, may, within thirty days of the date on which the order is communicated to him, prefer an appeal to the High Court:

PROVIDED that the High Court may entertain any such appeal after the expiry of the said period of thirty days, if it is satisfied that the member was prevented by sufficient cause from filing the appeal in time.

(2) The High Court may, on its own motion or otherwise, after calling for the records of any case, revise any order made by the Council under sub-section (2) or sub-section (4) of section 21 and may-

(a) confirm, modify or set aside the order;

(b) impose any penalty or set aside, reduce, confirm or enhance the penalty imposed by the order;

(c) remit the case of the Council for such further enquiry as the High Court considers proper in the circumstances of the case;

(d) pass such other order as the High Court thinks fit:

PROVIDED that no order of the Council shall be modified or set aside unless the council has been given an opportunity of being heard and no order imposing or enhancing a penalty shall be passed unless the person concerned has been given an opportunity of being heard.

Explanation : In this section "High Court" and "member of the Institute" have the same meanings as in section 21.

34. Alteration in Register and cancellation of certificate

(1) Where an order is made under this Act reprimanding a member a record of the punishment shall be entered against his name in the Register.

(2) Where the name of any member is removed, the certificate of practice granted to him under this Act shall be recalled and cancelled.

35. Directions of the Central Government

(1) The Central Government may from time to time issue such directions to the Council as in the opinion of the Central Government are conducive to the fulfilment of the objects of this Act and in the discharge of its functions, the Council shall be bound to carry out any such directions.

(2) Directions issued under sub-section (1) may include directions to the Council to make any regulations or to amend or revoke any regulations already made.

(3) If, in the opinion of the Central Government the Council has persistently made default in giving effect to the directions issued under this section, the Central Government may, after giving an opportunity to the Council to state its case, by order, dissolve the Council, whereafter a new Council shall be constituted in accordance with the provisions of this Act with effect from such date as may be specified by the Central Government.

(4) Where the Central Government passes an order under sub-section (3), dissolving the Council, it may, pending the constitution of new Council in accordance with the provisions of this Act, authorise any person or body of persons to take over the management of the affairs of the Institute and to exercise such functions as may be specified in this behalf by the Central Government.

36. Protection of action taken in good faith

No suit, prosecution or other legal proceeding shall lie against the Central Government or the Council in respect of anything which is in good faith done or intended to be done in pursuance of this Act or of any regulations or orders made thereunder.

37. Maintenance of branch offices

(1) Where a cost accountant in practice or a firm of such cost accountants has more than one office in India, each one of such offices shall be in the separate charge of a member of the Institute:

PROVIDED that the Council may in suitable cases exempt any cost accountant in practice or firm of such cost accountants from the operation of this sub-section.

(2) Every cost accountant in practice or firm of such cost accountants maintaining more than one office shall send to the Council a list of offices and the persons in charge thereof and shall keep the Council informed of any changes in relation thereto.

38. Reciprocity

(1) Where any country, specified by the Central Government in this behalf by notification in the Official Gazette, prevents persons of Indian domicile from becoming member of any institution similar to the Institute established under this Act or from practising the profession of cost accountancy or subjects them to unfair discrimination in that country, no subject of any such country shall be entitled to become a member of the Institute or practise the profession of cost accountancy, in India.

(2) Subject to the provisions of sub-section (1), the Council may prescribe the conditions, if any, subject to which foreign qualifications relating to cost accountancy shall be recognised for the purposes of entry in the Register.

39. Power to make regulations

(1) The Council may, by notification in the Gazette of India, make regulations for the purpose of carrying out the objects of this Act, and a copy of such regulations shall be sent to each member of the Institute.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

(a) the standard and conduct of examinations under this Act;

(b) the qualification for the entry of the name of any person in the Register as a member of the Institute;

(c) the qualification required for the purposes of sub-section (4) of section 5;

(d) the conditions under which any examination or training may be treated as equivalent to the examination or training prescribed for members of the Institute;

(e) the conditions under which any foreign qualification may be recognised;

(f) the manner in which and the conditions subject to which applications for entry in the Register may be made;

(g) the fees payable for membership of the Institute and the annual fees payable by associates and fellows of the Institute in respect of their certificates;

(h) the manner in which elections to the Council and the Regional Councils may be held;

(i) the particulars to be entered in the Register;

(j) the functions of Regional Councils;

(k) the regulation and maintenance of the status and standard of professional qualifications of members of the Institute;

(l) the carrying out of research in accountancy;

(m) the maintenance of libraries and publication of books and periodicals relating to cost accountancy and allied subjects;

(n) the management of the property of the Council and the maintenance and audit of its accounts;

(o) the summoning and holding the meetings of the Council and committees thereof, the time and places of such meetings, the procedure to be followed thereat and the number of members necessary to form a quorum;

(p) the manner in which the annual list of members of the Institute shall be published;

(q) the powers, duties and functions of the President and the Vice-President of the Council;

(r) the functions of the standing and other committees and the conditions subject to which such functions shall be discharged.

(s) the terms of office, and the powers, duties and functions of the Secretary and other employees of the Council;

(t) the exercise of disciplinary powers conferred by this Act;

(u) the terms and conditions of service of persons who have become employees of the institute under section 32 of this Act;

(v) the registration and training of students and the fees to be charge therefor and

(w) any other matter which is required to be, or may be, prescribed under this Act.

(3) All regulations made by the Council under this Act shall be subject to the condition of previous publication and to the approval of the Central Government.

(4) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may frame the first regulations for the purposes mentioned in this section, and such regulations shall be deemed to have been made by the Council, and shall remain in force until they are amended, altered or revoked by the Council.

(5) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and, if ,before the expiry date of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.

SCHEDULE I

[Secs. 21(4) and 22]

PART I

PROFESSIONAL MISCONDUCT IN RELATION TO COST ACCOUNTANTS IN PRACTICE

A cost accountant in practice shall be deemed to be guilty of professional misconduct, if he-

(1) allows any person to practise in his name as a cost accountant unless such person is also a cost accountant in practice and is in partnership with or employed by himself;

(2) pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional work, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of deceased partner.

Explanation: In this item, "partner" includes a person residing outside India with whom a cost accountant in practice has entered into partnership which is not in contravention of item (4) of this part.

(3) accepts or agrees to accept any part of the profits of the professional work of a lawyer, auctioneer, broker or other agent who is not a member of the Institute;

(4) enters into partnership with any person other than a cost accountant in practice or a person resident without India who but for his residence abroad would be entitled to be registered as a member of the Institute under clause (iv) of sub-section (1) of section 4 or whose qualifications are recognised by the Central Government or the Council for the purpose of permitting such partnerships, provided that the cost accountant shares in the fees or profits of the professional work of the partnership both within and without India;

(5) secures, either through the services of a person not qualified to be his partner or by means which are not open to a cost accountant, any professional work;

(6) solicits clients or professional work either directly or indirectly, by circular, advertisement, personal communication or interview or by any other means;

(7) advertises his professional attainments or services, or uses any designation or expression other than cost accountant on professional documents, visiting cards, letter heads, or sign boards, unless it be a degree of a university established by law in India or recognised by the Central Government or a title indicating membership of the Institute of Cost and Works Accountants of India or any other institution that has been recognised by the Central Government or may be recognised by the Council;

(8) accepts a position as cost accountant previously held by another cost accountant in practice without first communicating with him in writing;

(9) charges or offers to charge, accepts or offers to accept in respect of any professional employment fees which are based on a Percentage of profits or which are contingent upon the findings or results of such employment, except in cases which are permitted under any regulations made under this Act;

(10) engages in any business or occupation other than the profession of Cost accountant unless permitted by the Council so to engage:

PROVIDED that nothing contained herein shall disentitle a cost accountant from being a director of a company unless he or any of his partners is interested in such company as accountant;

(11) accepts a position as cost accountant previously held by some other cost accountant in practice in such conditions as to constitute under-cutting;

(12) allows a person not being a member of the Institute in practice or a member not being his partner to sign on his behalf or on behalf of his firm, any cost or pricing statements or any other statements related thereto.

PART II

PROFESSIONAL MISCONDUCT IN RELATION TO MEMBERS OF THE INSTITUTE IN SERVICE

A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company, firm or person-

(1) pays or allows or agrees to pay directly or indirectly, to any person any share in the emoluments of the employment undertaken by the member;

(2) accepts or agrees to accept any part of fees, profits or gains from a lawyer, a cost accountant or broker engaged by such company, firm or person or agent or customer of such company, firm or person by way of commission or gratification;

(3) discloses confidential information acquired in the course of his employment otherwise than as required by any law for the time being in force or as permitted by his employer.

PART III

PROFESSIONAL MISCONDUCT IN RELATION TO MEMBERS OF THE INSTITUTE GENERALLY

A member of the Institute whether in practice or not shall be deemed to be guilty of professional misconduct, if he-

(1) includes in any statement, return or form to be submitted to the Council any particulars knowing them to be false;

(2) not being a fellow styles himself as a fellow;

(3) does not supply the information called for or does not comply with the requirements asked for by the Council or any of its Committees.

SCHEDULE II

[Secs. 21(5) and 22]

PART I

PROFESSIONAL MISCONDUCT IN RELATION TO COST ACCOUNTANTS IN PRACTICE REQUIRING ACTION BY A HIGH COURT

A cost accountant in practice shall be deemed to be guilty of professional misconduct, if he-

(1) discloses information acquired in the course of his professional engagement to any person other than the client so engaging him, without the consent of such client, or otherwise than as required by any law for the time being in force;

(2) certifies or submits in his name or in the name of his firm a report of an examination of cost accounting and related statements, unless the examination of such statements has been made by him or by a partner or an employee in his firm or by another cost accountant in practice;

(3) permits his name or the name of his firm to be used in connection with an estimate of cost or earnings contingent upon future transactions in a manner which may lead to the belief that he vouches for the accuracy of the forecast;

(4) expresses his opinion on cost or pricing statements of any business or any enterprise in which he, his firm or a partner in his firm has a substantial interest, unless he discloses the interest also in his report;

(5) fails to disclose in a cost or pricing statement a material fact known to him, which is not disclosed in a cost or pricing statement, but disclosure of which is necessary to make such statement not misleading;

(6) fails to report a material mis-statement known to him to appear in a cost or pricing statement with which he is concerned in a professional capacity;

(7) is grossly negligent in the conduct of his professional duties;

(8) fails to obtain sufficient information to warrant the expression of an opinion or make exceptions which are sufficiently material to negate the expression of an opinion;

(9) fails to invite attention to any material departure from the generally accepted procedure of costing and pricing applicable to the circumstances;

(10) fails to keep moneys of his client in a separate banking account or to use such moneys for purposes for which they are intended.

PART II

PROFESSIONAL MISCONDUCT IN RELATION TO MEMBERS OF THE INSTITUTE GENERALLY REQUIRING ACTION BY A HIGH COURT

A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct, if he-

(1) contravenes any of the provisions of this Act or the regulations made thereunder;

(2) is guilty of such other act or omission as may be specified by the Council in this behalf, by notification in the Gazette of India.

COST AND WORKS ACCOUNTANTS REGULATIONS, 1959

[GSR 611, dated 25th. May, 1959]

CHAPTER I : PRELIMINARY

1. Short title

The Regulations may be called by the Cost and Works Accountants Regulations, 1959.

2. Definitions

In these Regulations, unless the context otherwise requires,-

(a) 'Act' means the Cost and Works Accountants Act, 1959;

(b) 'Annual Meeting' means the first meeting of the council held after lst June in each year;

(c) 'Certificate of practice' means a certificate granted under these Regulations entitling the holder to practise as a Cost Accountant;

(d) 'Form' means a form set out in the Schedule to these Regulations;

(e) 'Registered Student' means a person registered as a student under these Regulations and includes a student registered as such with the dissolved company, immediately prior to the commencement of the Act;

(f) 'Secretary' means the secretary of the council and includes a Deputy or Assistant Secretary or any person acting as Secretary by the direction of the Council;

(g) 'Section' and 'sub-section' mean respectively a section and a sub-section of the Cost and Works Accountants Act, 1959;

(h) 'University' means a University constituted by law in India or any other University recognised by the Central Government.

CHAPTER II : MEMBERS OF THE INSTITUTE

3. Register

The Register of Members of the institute shall be in Form 'A'.

4. Qualification for Members

Subject to the provisions of sections 4 and 8, no person shall be entitled to have his

name entered in the register unless he-

(a) has passed the examinations and completed practical training prescribed in Chapter V; or

(b) possesses qualifications recognised by the Central Government or the Council as equivalent to the tests and practical training referred to in (a) above; or

(c) is eligible under clause (i) or clause (iii) of sub-section (1) of section 4.

5. Qualifications for fellowship

For purposes of sub-section (4) of section 5 an Associate who, for a continuous period of not less than five years immediately before the date of his application has held a position as Chief Cost Accountant or an equivalent appointment, by whatever name designated, in an organisation approved for the purpose by the council shall be deemed to have experience equivalent to the experience acquired as a result of continuous practice for a period of five years as a Cost Accountant.

6. Application for membership

(1) Every person who desires to have his name entered in the register, and any associate who desires to be admitted as a fellow, shall submit an application, together with documentary evidence about his eligibility for membership and the fees prescribed in these Regulations to the Secretary in Form 'B'.

(2) The applicant shall furnish such further information bearing on his application as the council may at any time require from him.

7. Fees

(1) Every person applying for membership of the institute shall pay an entrance fee of Rs. 300:

PROVIDED that an applicant may pay Rs. 100 along with his application and the balance of Rs. 200 in two instalments of Rs. 100 each within the first 12 months and 24 months respectively from the date of his being enrolled as a member.

(2) Every associate applying for admission as a Fellow shall pay an entrance fee of Rs. 200.

(3) An associate shall pay an annual membership fee of Rs. 150 which shall be due and payable on the lst April in each year:

PROVIDED that only half the amount of the annual membership fee shall be payable for the first year by a person admitted on or after the lst October in any year.

(4) A fellow shall pay an annual membership fee of Rs. 300 which shall be due and payable on the lst April in each year:

PROVIDED that an associate who is admitted as a fellow during a year may pay Rs. 150 or Rs. 75 only as membership fee for that year accordingly as he is admitted as a fellow prior to the lst October, or after the lst October, of that year.

(5) Every member in practice shall pay an annual certificate fee of Rs. 100 which shall be due and payable on the lst April in each year.

(6) Effective from lst April l971, a member of not less than sixty years of age who has been a member of the institute for at least fifteen years, and who has retired permanently from professional work or business or from salaried employment, and who produces evidence to the. satisfaction of the council of his age and retirement, shall pay a reduced annual fee of Rs. 10 or Rs. 15, accordingly as at the time of his retirement he is an Associate or a fellow member.

(7) The non-payment of annual membership fee within six months from the date on which it becomes due will render the name of the defaulter liable to be removed from the Register of Members.

8. Refund of fees

Every person whose application for admission to the membership of the Institute or whose application for a Certificate of Practice is not accepted by the Council shall be entitled to a refund of the fees paid by him.

9. Certificate of Membership

(1) If the application is accepted by the Council, the applicant's name shall be entered in the Register and a Certificate of Membership in Form 'C' shall be issued to him.

(2) In the event of the name of a member being removed from the Register under section 20, the Certificate of Membership then held by him shall be forthwith returned to the Secretary.

10. Certificate of Practice

(1) A member of the Institute may apply to the Council for a Certificate entitling him to practise as a Cost Accountant throughout India. Every application for the grant or renewal of a Certificate shall be accompanied by the requisite annual Certificate fee and shall be in Form 'D'. The Certificate shall be issued in Form 'E' and shall be valid until the 30th June of the next year following. On a proper application in Form 'D' for the renewal of the Certificate of practice for the succeeding twelve months, the validity of the Certificate shall be extended from time to time by a Certificate in writing by the Secretary in Form 'F'.

(2) A member who ceases to be in practice shall, not later than one month from the date he ceases to practice, intimate the fact to the council in writing.

(3) A member who ceases to be in practice or whose Certificate of Practice has been cancelled under Regulation 11 shall surrender the Certificates then held by him to the Secretary.

11. Cancellation of Certificate of Practice

(1) A certificate of practice shall be cancelled-

(a) when the name of the holder of the certificate is removed from the Register of Members, or

(b) when the Council is satisfied that such certificate was issued on the strength of incorrect, misleading or false information, or by mistake or inadvertence; or

(c) when a member has ceased to practice:

PROVIDED that reasonable notice shall be given to the member before cancelling his Certificate under clause (b).

(2) The cancellation of a Certificate shall be effective-

(a) in a case falling under clause (a) of sub-regulation (l) from the date on which and during the period for which the name of the holder of the Certificate was removed from the Register of Members; and

(b) In any other case from such date and for such period as the Council may determine.

(3) When a Certificate is cancelled, the date from which and the period for which the Certificate shall stand cancelled, shall be communicated to the member concerned and shall also be notified in the Gazette of India.

CHAPTER III : COMPLAINTS AND ENQUIRIES

12. Complaints and enquiries relating to misconduct of members

(1) Subject to the provisions of this Regulation, all complaints against members of the Institute under Section 21 shall be investigated, and all enquiries relating to misconduct of members shall be held, by the Disciplinary Committee.

(2) A complaint under section 21 shall be made to the Council in Form 'G'.

(3) Every such complaint shall contain the following particulars, namely:-

(a) the acts and omissions which if proven would render the member complained against guilty of any professional or other misconduct;

(b) the oral or documentary evidence relied upon in support of the allegations made in the complaint.

(3A) Every complaint other than a complaint made by or on behalf of the Central or any State Government, shall be accompanied by a deposit of a sum of Rs. 50 which will be forfeited if the council after considering the complaint comes to the conclusion that no prima facie case is made out and that the complaint is either a frivolous one or is made with mala fide intention.

(4) The Secretary shall return a complaint which is not in the proper form or which does not contain the aforesaid particulars to the complainant for representation after compliance with such objections and within such time as the Secretary may specify.

(5) Within sixty days ordinarily of the receipt of complaint under section 21 the Secretary shall,

(a) if the complaint is against an individual member, send a copy thereof to such member at his address as entered in the Register of Members.

(b) if the complaint is against a firm, send a copy of the complaint to the firm concerned at the address of the head office of the firm as entered in the register of Offices and Firms with a notice calling upon the firm to disclose the name of the member concerned and to send a copy of the complaint to such member.

Secretary may allot, forward to him a written statement in his defence verified in the same manner as a pleading in a Civil Court.

(7) If, on a perusal of the complaint and the written statement, if any of the member concerned and other relevant documents and papers, the Council is of the opinion that there is a prima facie case against such member, the Council shall cause an enquiry to be made in the matter by the Disciplinary Committee. If the Council is of the opinion that there is no prima facie case against the member concerned or if the subject matter of the complaint is substantially the same as or caused by a complaint already received against such member, the complaint shall be dismissed and the complainant and the member concerned shall be informed accordingly:

PROVIDED that the Council may before dismissing the complaint, call for any additional particulars or documents connected with the case, either from the complainant or from the respondent or from both, if in its opinion it is necessary to do so.

(8) Every notice issued by the Secretary or by the Disciplinary Committee under this Regulation shall be sent to the member or the firm concerned by registered post with acknowledgement due. If the notice is returned with endorsement indicating that the addressee cannot be found at the address given, the Secretary shall ask the complainant to supply to him the correct address of the member or firm concerned and send a fresh notice to the member or firm at the address so supplied.

13. Information relating to misconduct of members

The procedure prescribed by Regulation 12 shall, so far as may be, apply to any information received under section 21.

14. Procedure in any enquiry before the Disciplinary Committee

(1) It shall be the duty of the Secretary to place before the Disciplinary Committee all facts brought to his knowledge which are relevant for the purpose of an enquiry by the Disciplinary Committee.

(2) A member against whom a complaint is made shall have a right to defend himself before the Disciplinary Committee either in person or through a legal practitioner or any other member of the Institute.

(3) The Disciplinary Committee shall have the power to regulate its procedure in such manner as it considers necessary and during the course of enquiry may examine witnesses on oath, receive affidavits and any other oral or documentary evidence.

(4) Where, during the progress of an enquiry, the Disciplinary Committee undergoes a change of personnel for any reason whatsoever, the respondent shall have the option to have his case heard de novo and the enquiry conducted accordingly.

15. Report of the Disciplinary Committee

(1) The Disciplinary Committee shall submit its report to the Council.

(2) The Council shall consider the report of the Disciplinary Committee and if in its opinion a further enquiry is necessary, may cause such further enquiry to be made and a further report submitted by the Disciplinary Committee and after considering such further report of the Disciplinary Committee, the Council shall proceed in the manner laid down in section 21.

15A. Procedure in hearing before the Council

(1) If the Council, on recording a finding, as required under sub-section (3) of section 21, is of the opinion that there is a case for passing one of the orders specified in clause (a) or clause (b) of sub-section (4) of the said section, it shall-

(a) furnish to the member against whom the complaint relating to the finding has been made, a copy of the report of the Disciplinary Committee and a copy of its finding; and

(b) give him such notice as may be decided by the Council, indicating the order proposed to be passed against him and calling upon him to appear before it on a specified date or dates, or if he does not wish to be heard in person, to send within a specified time such representation in writing as he may wish to make against the proposed order.

(2) The scope of the hearing or of the representation in writing, as the case may be, shall be restricted to the matters concerning the enquiry.

(3) The Council shall after hearing the member concerned ,if he appears in person, or after considering the representation, if any, made by him, pass such orders as it may think fit.

(4) The orders passed by the Council shall be communicated to the complainant and to the member concerned.

16. Notification of removal

The removal of the name of any person from the membership of the Institute shall

be notified in the Gazette of India and shall also be communicated in writing to the person concerned.

17. Restoration of Membership

The Council may on application made to it in Form 'H' by a person whose name has been removed from the Register of Members of the Institute or of the dissolved company, restore his name if he is otherwise eligible to such membership, on payment before such restoration of the balance of entrance fee, if any, and the annual fee for the year during which his name is restored, and, if his name has been removed under clause (c) of sub-section (1) of section 20 or under Article 20(c) of the Articles of Association of the dissolved company all arrears on account of the annual fee subject to a maximum of Rs. 300 and restoration fee of Rs. 25:

PROVIDED that the restoration of the name of a person which was removed under sub-section (2) of section 20 shall be effected in accordance with the orders of the High Court or the Council, as the case may be.

18. Notification of restoration

The restoration of a name to the membership shall be notified in the Gazette of India and shall also be communicated in writing to the person concerned.

CHAPTER IV : REGISTERED STUDENTS

19. Eligibility to take Examinations

Admission to the Intermediate and Final Examinations of the Institute shall be restricted to Registered Students, who shall be required to undergo such theoretical and practical training as the Council may arrange, approve or prescribe and pay such fees for the same as may be prescribed.

20. ¹[Conditions of Registration

Every person applying for registration as a Registered Student shall be required to apply in Form I and produce evidence to the satisfaction of the Council that he possesses one of the following qualifications:-

(a) He has passed a Foundation Course Examination prescribed under these regulations.

(b) He has been conferred a degree from any University or equivalent.

20A. Admission to the Foundation Course Examination

Every person applying for admission to the Foundation Course Examination shall be required to apply in the form prescribed by the Council for the purpose and produce evidence to the satisfaction of the Council that he has-

(a) Completed seventeen years of age on the date of his application; and

(b) Passed the Senior Secondary School Examination under the 10 + 2 scheme of a recognised Board or an Examination recognised by Central Government as equivalent thereto or has passed the National Diploma in Commerce Examination held by the All India Council of Technical Education or any State Board of Technical Education under the authority of the said All India Council, or the Diploma in Rural Service Examination conducted by the National Council of Rural Higher Education.

20B. Fee, papers and syllabus for Foundation Course Examination

No candidate shall be admitted to Foundation Course Examination unless he applies in the prescribed form along with a fee of Rupees One Hundred and Twenty-five only or such fees as may be fixed by the Council from time to time and is otherwise eligible for the examination and then he shall be examined in the following subjects.

FOUNDATION COURSE

PAPER 1: BUSINESS FUNDAMENTALS AND ECONOMICS

(One paper: 3 hours: 100 marks)

Section 1 : Business Fundamentals (50 marks)

Aim: To introduce the candidate to the world of the business and to acquaint him with the basic principles of Economic and Commercial practices.

Level of knowledge: Basic knowledge: basic knowledge

1.Type of business units: Sole proprietorship, partnership companies, Co-operatives, Hindu undivided family, joint Stock Companies, Public Utility Services and State Enterprises.

Company Organisation and Management

2.Type of companies : their formation, incorporation and commencement of business, Memorandum of Association and Articles of Association, Prospectus, shares and debentures, Board of Directors and statutory and general meetings.

3.Business objectives, concept and rationale of social responsibility, Business and its environments, interface with legal, political, economic, social and cultural aspects.

Working systems of Stock Exchange

4.Dealers and brokers, transactions, economic significance, conditions of membership, stock exchange.

Business Communication and Report writing

(5) Preparation of telegraphic message, public notices and invitations, circulars, drafting of advertisements, filing of complaints, letter writing.

Section 2: Economics (50 marks)

1.Definition, scope and subject matter of Economics-a few fundamental concepts like utility, wealth, factors of production, demand and supply, equilibrium, land and the laws of diminishing returns.

2.Labour and population theories, definition of capital and growth of capital, steps in capital formation.

3.Market Forms-Value under perfect competition, value under imperfect competition.

4.National income-Gross National Product, Net National Product, measurement of National Income, difficulties and significance of National Income analysis, economic growth and fluctuations, consumption savings and investments.

Distribution-Income determination and equilibrium relating to rent, wages, interest and profit.

5.Money-Definition and functions of money. Quantity theory of money, inflation, effects of inflation of production and distribution of wealth, control of inflation, money supply, liquidity preference and managerial efficiency, rate of interest and investment. Banking-definition, functions and utility of banking, the principles of commercial banking, multiple credit creation, essentials of a sound banking system, Central Bank-Functions weapons of credit control and the money market.

6.International Trade: Basic features of import export.

7.National and International Financial Institutions like Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI), Export Import Bank (EXIM), Asian Development Bank, International Monetary Fund (IMF), International Bank for Reconstruction and Development (World Bank):

8.The theory of employment-Types of unemployment, concepts of full employment and how it can be achieved.

9.Public Finance-Direct and Indirect Taxes, Canons of Taxation, effects of Taxation on production and distribution. Taxable capacity, deficit financing, Economic systems.

PAPER 2-MANAGEMENT AND ORGANISATION

(One Paper: 3 hours: 100 marks)

Aim : To provide working knowledge on various concepts and functions of management and organisation to the extent necessary to the work of a Cost and Management Accountant.

Level of Knowledge: Basic Knowledge.

Section 1: Management (50 marks)

1. Definition of management : Different schools of management process and functions of management, principles of management. Evolution of management thoughts, recent trends, management as a profession.

2. The process of management covering planning, organising, staffing, directing, motivating, communicating and controlling.

3. Pattern of management :Broad policies and functions, structural pattern of the Board of Directors, delegation of power.

4. Public sector management, concept of public sector, social objectives.

Section 2: Organisation (50 marks)

1. Nature of internal organisation of business enterprise, formal and informal organisation, principles of organisation, (i) grouping of activities (a) typical pattern of grouping by-product, services, location, customers, processes, functions and time, (b) criteria for grouping activities-specialisation, control, co-ordination, attention, economy, creating a network of relationship to determining the authority, delegation, chain of command, authority and responsibility, decentralisation, span of control, (ii) level of authority-staff, kind of staff, nature of staff work, advisory services and control, line and staff relations, (iii) internal relations committees and their roles.

2. Concepts and features: Schools of organisation theory –classical behavioural and systems. Recent trends and approaches, behaviour in organisation, nature, features, foundations and the role of behavioural science. Behaviour process in organisation.

Paper 3: Basic Mathematics and Statistics (100 marks)

Aim: To ensure a basic understanding of quantitative tools and their elementary application to business problems.

Level of knowledge: Basic knowledge

Arithmetic : Averages, mixtures, computation of interest, discounting of bills, percentages, ratios and proportions.

Algebra:

(a) Number systems-real, imaginary, rational and irrational.

(b) Elementary knowledge of sets and the operations on them. Simple applications and solution by the use of Venn diagram. Truth table and its applications to statements.

(c) Indices and surds, variation, Logarithms, permutations and combinations, compound interest.

(d) Solution of system of linear simultaneous equations (3 variables only). Quadratic equations, solution of linear inequalities (by graphical method only).

Mensuration : Area and perimeter of triangles, circles, parallelogram, regular polygon, volume and surface of cube, prism, cylinder, pyramid, core, fustrums and spheres (including zone and segments).

Plain Co-ordinate Geometry (Rectangular Cartesian co-ordinates only). Length of a line segment, section ratio, gradiant of a line, equations of straight line, circles, parabolism. Ellipse and hyperbola (standard forms only).

Elementary statistics: Graphical presentation of statistical data, frequency distribution, measures of central tendency (mean, median, mode), measures of dispersion (range, mean, deviation, standard variance), measures of skewness and kurtosis.

Paper 4: Commercial laws (100 marks)

Aim: To ensure a grasp of fundamental business laws required for the functioning of a cost and management accountant.

Level of knowledge: Basic knowledge

1.The Contract Act, 1872 (9 of 1872)-nature of contract, contractual terms, remedies for breach and elements of contracts.

2.The Partnership Act, 1932 (9 of 1932)-General concepts.

3.The Sale of Goods Act, 1930 (3 of 1930)-General concepts.

4.The Negotiable Instruments Act, 1881 (26 of 1881)- General concepts.

20C. Foundation Course Examination

(1) A candidate shall be declared to have passed in the Foundation Course Examination if he obtains at one sitting a minimum of 40 per cent of the total marks in each paper and an aggregate of 50 per cent of the total marks of all papers in that examination. The Council may however, vary the minimum pass marks at is discretion for any or all the examinations.

(2) A list of successful candidates in an examination shall be published in the Journal of the Institute in such manner as the Council may direct. Each candidate shall be individually informed of his result and also of the marks obtained by him in the paper or papers of the examination in which he appeared. No certificate of pass except mark sheet will be issued to a candidate passing the Foundation Course Examination.

(3) Except as otherwise specifically provided in the foregoing regulations, the provisions regarding conduct of examinations in regulations 36 to 43 shall, so far as may be, apply to the Foundation Course Examination.

(4) The first Foundation Course Examination shall be held in June 1994.

21. Registration Fee

Every person applying for registration shall pay the student registration fee of Rs. 170.

22. Refund of fees

Every candidate whose application for registration is not accepted by the Council shall be entitled to a refund of Student Registration fee.

[Regulations 23 and 23A omitted by Notification No. CWR (1) / 88, dated 31-1-1989]

24. Position of Registered Students

Student registration shall not confer any membership rights nor entitle a person so registered to claim any form of membership of the institute or of a Regional Council. He may, however, borrow books from the library subject to such conditions as the Council may from time to time specify and participate in the activities of the Regional Council in accordance with the rules of the Regional Council.

25. Time limit for Examinations and Cancellation of Registration

(1) A Registered Student will normally be required to complete the Intermediate and Final Examinations of the Institute within a period of seven years from the date of registration failing which his registration shall be liable to cancellation.

(2) The registration of a student shall also be liable to cancellation if he fails to appear at the Intermediate Examination within a period of three years from the date of his registration:

PROVIDED that the sub-regulation (2) shall not apply to those who became Registered students prior to April 1976.

25A ²[Registration de novo

A person whose registration has been cancelled under regulation 25 may apply in Form I along with the required fee to become a Registered Student de novo and on his application being granted, he shall be deemed for all purposes to have been admitted and he shall be entitled to the exemption from individual subjects/stages of the Intermediate or Final Examination, as the case may be, previously secured by him under his former registration.

26. Examination rules

Registered Students shall be required to comply with the rules relating to the examinations which are in force at the time of applying for admission to or appearing in the examinations.

27. Suspension and cancellation of Registration

In the event of any misconduct or breach of any Regulation by any Registered Student, the Council may, if it is satisfied, after such investigation as it may deem necessary and after giving him an opportunity to make his objections, that the complaint is proved, suspend or cancel the registration of the student.

28. Termination of Registration

The registration of a student shall terminate after he has passed the qualifying examinations of the Institute.

28A. Coaching Administration and Training

(1) The Council may arrange for imparting training to Registered Students and for this purpose established and operate a Coaching Administration, makes rules, in connection therewith and charge such fees as may be specified.

(2) The Coaching Administration shall at all times function subject to the control, supervision and direction of the Training and Educational Facilities Committee.

(3) All Registered Students shall be required to undergo such training as may be prescribed before they are admitted to any of the examinations referred to in Chapter V:

PROVIDED, however, that person registered as students prior to lst January, 1965 shall be exempted from this requirement.

CHAPTER IVA : GRADUATES

28B. Grad. CWA

(1) A person who has passed the qualifying examinations of the Institute may, before he is admitted as an Associate Member, apply to the Council for being enrolled as a Graduate of the Institute, and on such enrolment, he shall be entitled to use the descriptive letters "Grad. CWA", subject to his payment of annual subscription of Rs. 75, to indicate that he has qualified in the Final Examination of the Institute.

(2) If a Grad. CWA has paid his annual subscription for a year, and is admitted as an Associate during that year, he shall, notwithstanding anything contained in sub-regulation (3) of Regulation 7, pay Rs. 25 only as annual membership fee for that year, irrespective of his date of admission as an Associate.

(3) Non-payment of annual subscription before 30th September of every year will disentitle a person the use of the descriptive letters "Grad, CWA".

CHAPTER V : QUALIFYING EXAMINATIONS

29. Who can become a member of the Institute

Except as otherwise provided for in the Act or these Regulations, every person wishing to qualify himself for membership of the Institute shall be required to pass the Intermediate and Final Examinations of the Institute, and to complete the practical training, as prescribed in this Chapter:

PROVIDED that those who have passed the Final Examination of the dissolved company shall not be required to pass the corresponding examination of the Institute.

INTERMEDIATE EXAMINATION

30. ³[Admission to and fees for Intermediate Examination

(1) No candidate shall be admitted to the Intermediate Examination unless he is a Registered Student of the Institute and has paid all his dues at least sixty days prior of the commencement of the Examination:

PROVIDED that a candidate registered as a student shall not be admitted to any stage or stages (Group or Groups under old syllabus) of the Intermediate Examination as provided in regulation 31, unless he has produced a certificate from the Director of Studies or the Head of the Coaching Administration, by whatever name designated, or from the head of the Institution recognised by the Council in this behalf and duly approved by the Director of Studies or the Head of the Coaching Administration, as the case may be, to the effect that he has undergone satisfactorily a course of postal or oral tuition for the said Stage or Stages (Group or Groups under old syllabus) of the Intermediate Examination as provided in regulation 31 :

PROVIDED FURTHER that the Examination Committee may on receipt or being in possession, of any information against any candidate regarding guilty of misconduct in using unfair means during the examination or misbehaving in any manner in examination hall decline to admit him to any examination after giving him an opportunity to explain his conduct and after holding such enquiry for the purpose as it may consider necessary.

(2) In the Intermediate Examination, a candidate can appear in Stage I (Group I under old syllabus) or Stage II (Group II under old syllabus) or both if he has completed coaching as mentioned in sub-regulation (1).

(3) Every candidate for admission to the Intermediate Examination shall pay an Examination fee at the rate of Rupees One Hundred and Sixty only per stage or Group (old syllabus) and Rupees Three Hundred and Twenty only for both the stages or Groups (old syllabus) or such fees as may be fixed by the Council from time to time.

⁴[31. Stages, Papers and Syllabus for the Intermediate Examination under the revised syllabus

(1) The first Intermediate Examination under the revised syllabus after the commencement of Cost and Works Accountants (Amendment) Regulations, 1993 shall be held in December, 1994. Students registered on or after lst July, 1994, shall, and students registered prior to lst July, 1994, who may so opt, shall be examined under the revised syllabus and all other students registered prior to lst July, 1994 who are candidates for the Intermediate Examination to be held from December, 1996, shall also be examined under the revised syllabus. The Groups, papers and syllabus for the Intermediate Examination under old syllabus shall be the same as mentioned in this regulation before the date of commencement of the Cost and Works Accountants (Amendment) Regulations, 1993. The last Intermediate Examination under the old syllabus shall be held in June, 1996.

(2) The stages, papers and syllabus for the Intermediate Examination under the Revised syllabus shall be as follows:

INTERMEDIATE EXAMINATION-STAGES I & II

Stage I : Paper I : Financial Accounting

(One paper: 3 hours : 100 marks)

Aim : To examine candidate's ability for application of accounting principles in different situations.

Level of knowledge: Adequate.

1. Basic concepts of book-keeping and accountancy. Definition of accounting and its usefulness, book-keeping and accounting, its principles and practices, classification of accounts.

2. (a)System of book-keeping : Double Entry System, books of prime entry, subsidiary books, recording of cash and bank transactions, preparation of ledger accounts, preparation of trial balance, interpretation and usefulness;

(b) Book Reconciliation Statements-Need for reconciliation: Procedure for reconciliation between cash book and bank pass book and problems relating to the preparation of bank reconciliation statements.

3. Bill of Exchange-Definition, promissory note and bill of exchange, bills receivable, bills payable, drawing, accepting, renewal and retirement of bills, accommodation bills.

4. Concept of Capital-Revenue and deferred revenue expenditure, opening entries, closing entries, adjustment entries and rectification entries. Trading, Manufacturing and Profit and Loss Account and Balance Sheet. Bad Debts and reserve for bad debts-its accounting treatment. Depreciation-its significance and accounting treatment.

5. Concept of single entry of accounting vis-avis double entry system of accounting, their inter-relationship and conversion from single entry system to double entry system. Preparation of receipts and payments accounts and income and expenditure account. Significance of reserve and provisions. Preparation of profit and loss account and balance sheet.

6. Joint Venture and consignment Accounts : Partnership Accounts, admission, retirement and death of partner, dissolution of partnership, piecemeal distribution of assets.

7. joint Stock Company Accounts-Issue, forfeiture and redemption of shares and debentures, profits prior to incorporation and company Profit and Loss Account and Balance Sheet as per provisions of the Companies Act, 1956 (1 of 1956).

Stage I: Paper 2 : Cost Accounting

(One paper: 3 hours: 100 marks)

Aim: To provide in-depth knowledge of the various components of cost and their ascertainment and treatment.

Level of knowledge: Thorough understanding

1. Introduction : Evolution of Cost Accounting and Management Accounting, Cost concepts and cost object, Cost classification, Cost organisation and its relationship with other departments.

2. Elements of cost and cost determination (i) Material cost-purchase procedure, store keeping and stock control, pricing, issue of material and accounting thereof, identification to slow , non-moving and fast moving item. ABC analysis, policies relating to insurance spares, level of inventories and economic order quality. Analysis, investigation and corrective steps for treatment of stock discrepancies- control through other means.

(ii) Labour cost- remuneration methods, monetary and non-monetary incentives schemes, payroll procedures, labour analysis and idle time, measurement of labour efficiency and productivity, analysis of non-productive time and their cost, labour turnover and remedial measures, treatment of idle time and overtime.

(iii) Direct expenses-nature, collection and classification of Direct Expenses and its treatment.

(iv) Overhead: nature, collection and classification.

(a) Production, overheads-distribution, appropriation, absorption by-products, use of pre-determine recovery rates, treatment of under and over-absorption, report for control of overhead cost.

(b) Administration, selling and distribution overheads-analysis, accounting and control, treatment of miscellaneous items in cost accounting.

3. Cost Accounting records : Cost ledgers, reconciliation of cost and financial accounts and integrated accounts, basis of computerisation of accounts.

4. Methods of Costing:

(i) Specific order costing-job, batch and contract, Determination of cost accounting in job, batch and contract, valuation of work progress in job costing, features of contract cost, certification of work done, profit on incompleted contracts, cost plus contracts.

(ii) Operation costing-process and services.

Process costing-treatment of normal and abnormal losses and gains, valuation of Work-in-Progress using First-in-First-out and average methods (equivalent production); interprocess transfer and pricing, concept, accounting for joint products, by-products, waste, scrap, spoilage and detectives.

5. Service or operating costing: Unit costing and multiple costing, application, identification of cost unit and cost determination and control.

6. Techniques of costing

(a) Marginal costing: Basic concepts, marginal costing and absorption costing, Cost-Volume- Profit analysis, breakeven analysis, Limitations of Break Even (BE) analysis, differential cost analysis and relevant cost analysis applications for management decision making (simple types).

(b) Budgetary control : Basic concepts, functional budgets, master budget, flexible budgets.

(c) Standard Costing: Concept and uses, setting of standard cost accounting methods, computation of simple variances relating to material, labour and overheads, relationship standard costing and budgetary controls.

Stage I: Paper 3 : Corporate Laws and Secretarial Practice

(One Paper: 3 hours: 100 marks)

Aim: Undertaking of the basic concepts and legal principles governing the business.

Level of knowledge: Thorough understanding.

Section I: Corporate Laws (50 marks)

The Companies Act, 1956 (1 of 1956)

Definition: Fundamental matters and general frame-work of documents, meetings and proceedings, management of a company operations, mis-management and arrangements, concept of capital, classification of shares and debentures, borrowing of a company, accounts and audit of a company, classification and appointment of an auditor, the powers of Central Government, direct special audit, cost accounting records and cost audit, auditor's report and explanation, preparation and presentation of accounts of government companies and statutory corporations.

The Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969)-The Monopolies and Restrictive Trade Practices Commission, unfair and restrictive trade practices.

The Industrial (Development and Regulations) Act, 1951 (65 of 1951)-Development Councils, licensing for new industrial undertakings, taking over management or control by the Central Government.

The Essential Commodities Act, 1955 (10 of 1955): Powers of Central Government to control, effect seizure and confiscation.

The Foreign Exchange Regulation Act, 1973 (46 of 1973)-General Concepts.

The Sick-Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) and provisions relating to Board for Industrial and Financial Reconstruction-General concepts.

The Apprentices Act, 1961 (52 of 1961), the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), the Workmen's Compensation Act, 1923 (8 of 1923), the Payment of Gratuity Act, 1972 (39 of 1972), the Employees' State Insurance Act, 1948 (34 of 1948)-The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (10 of 1952), the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974), the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981), the Consumer Protection Act, 1986 (68 of 1986)-General concepts.

Section II: Secretarial Practice (50 marks)

Definition of Secretary, his position and importance in the organisation, Directors-their qualifications and disqualifications, powers, duties and liabilities.

Meeting : Kinds of company meetings, meeting of shareholders, statutory and annual general meetings, requisitions and other general meetings.

Preparation of notices, agenda, quorum, proxy, voting, motion, amendments, resolution, adjournment and postponement, explanatory statements and minutes, matters relating to ordinary resolution, special resolution special notice, preservation and maintenance of registers and books, submission of returns to the Registrars of Companies to all for information and inspection procedures ascertaining profits and dividends and declaration of the same to various types of shareholders including mode of payment to residents and non-residents.

Stage I: Paper 4: Direct Taxation

(One Paper: 3 hours: 100 marks)

Aim: To provide in-depth knowledge of tax laws and their impact on management decision and more particularly to emphasise the role of the tax factors in the use of management of accounting techniques.

Level of knowledge: Expert

(i) Direct Tax Laws-A Comprehensive study of Income Tax Act, 1961 (43 of 1961), the Gift Tax Act, 1958 (18 of 1958), the Wealth Tax Act, 1957 (27 of 1957), case laws governing capital and revenue expenditure, deemed income residence concept.

Special problems centring on the concept of assessee, registered firm, Hindu undivided family, Association of persons and trust-minors, Non-resident Indians and avoidance of double taxation.

Problems covering heads of income; Salaries, perquisites, gratuity and retirement benefits, income from house property, capital gains, income from other sources, income from business and profession, problems arising from aggregation of income and carry forward of losses.

(ii) Tax Audit.

(iii) Tax Administration: Appeals, revisions, review rectification and application to Central Board of Direct Taxes.

(iv) Acquisition proceedings: Principles of valuation-movable and immovable property.

(v) Direct Tax planning:Tax implication in planning ,the legal status of business unit, firm, private limited company and public limited company.

Tax implication in (a) receiving foreign collaboration (b) giving collaboration abroad, subsidiaries, outright sale of know-how, equity participation.

Tax aspects of mergers and amalgamations.

New industrial establishment and tax planning.

Tax consideration arising with regard to specific management decisions such as (i) make or buy; (ii) own or lease; (iii) retain or replace; (iv) repair or scrap or return; (v) export versus local sale; (vi) shut down or continue; (vii) expand or contract; and (vii) new capital investment.

Tax incentives and export promotions.

Capital gains and tax planning

Tax aspects of investments

Tax implications in developing capitalisation structure (a) short term loans; (b) deposits from public; (c) term loans; (d) bonus issues; and (e) dividend policy.

State II : Paper 5: Cost Management and Accounting

(One Paper: 3 hours: 100 marks)

Aim : Understanding on costing and management accounting techniques that could be utilised for decision making and control.

Level of knowledge: Thorough understanding.

1. Introduction: Management process and accounting. Management accounting as an extension of cost accounting to serve managerial needs. Managerial Planning and control, scope and role of management accounting, installation and operation of cost.

2. Financial analysis and control :Uses of ratios for analysis of financial results- limitations of conventional accounting statement for analysis of the operating results of public enterprises in India, Utility of value-added statement and contribution approach-funds flow and cash flow analysis.

3. Capital structure:Types and sources of capital including internal source-cost of capital-selecting a desired combination of different components leverage of gearing consideration.

4. Management of liquidity and working capital : Liquidity and profitability relationship, concepts of working capital, need for working capital, management forecasting of working capital. The concepts and use of operating cycle management of inventory, debtors, cash and creditors.

5. Capital budgeting decisions :Objectives and problems, replacement decision, new investments, criteria used, pay back method, Discounted Cash Flow methods,effect of taxation, role of cost of capital-capital rationing-decision under conditions of risks and uncertainty.

6. Cost analysis for decision making- Determining cost behaviour learning curve theory-relevant costs for decisions-irrelevance of past cost. Decision on pricing, optimum product mix, make or buy, lease or buy, shut down etc. Introduction to decision models and uncertainty.

7. Management control tools: Budgeting and standard costing-advanced cost and sales variances-profits variances-analysis, investigation and disposition of variances-management by exceptions-responsibility accounting-Performance budgeting and zero-base budgeting-behavioural aspect in budgeting and standard costing.

8. Uniform costing: Inter-firm comparison.

9. Cost reductions-concepts and techniques including value analysis..

10. Performance appraisal of public enterprise.

Stage II : Paper 6: Auditing

(One paper: 3 hours: 100 marks)

Aim: To provide and in-depth study of the techniques and methods of planning, audit assignments with special emphasis on Internal Auditing.

Level of knowledge: Expert

Section I: Principles of Auditing (50 marks)

1. Evolution of auditing-Major influences of Auditing-Nature and scope of Auditing-Basic concepts of Auditing-Role of Evidence in Auditing.

2. Auditing Techniques and Practices- Generally accepted auditing standards the concept of Materiality in Auditing.

3. Verification of Assets and Liabilities, Fixed Assets, Investments, Inventories. Debtors, Loans and Advances, Cash and Bank Balance, Debentures and Creditors, Provisions for taxation, proposed Dividend and Gratuity-other items in the Balance Sheet, Verification of items in the Profit and Loss Account-Contingent Liabilities-Disclosure of accounting policies, practice. Expenditure during the period of construction. Adjustments for previous year. Provisions of the Companies Act, 1956 (1 of 1956) regarding accounts.

4. Nature of Internal Control Evaluation and Audit of Internal Control-Internal Control questionnaires-Flow Charts-Systems Audit, Internal Control.

5. Auditing-in depth-statistical sampling in Auditing.

6. Use of ratios and percentages for comparisons and analysis of trends-inter- firm and inter-firm comparison.

7. Appointment of statutory Auditors-remuneration, removal, Rights of Statutory Auditors, Duties, of statutory Auditors, joint Auditors, Branch Audits.

8. Audit Report-Report versus Certificate, contents of Reports-Qualifications in the Report.

9. Divisible Profits-relevant provisions of the Companies Act, 1956 (1 of 1956) and the Income Tax Act, 1961 (43 of 1961).

10. Interface between Statutory Auditor and Internal Auditor.

Section II: Internal Auditing (50 marks)

1. Nature and scope of Internal Auditing-Financial versus Operational Audit -Concepts of Efficiency Audit, Propriety Audit, Voucher Audit, Compliance Audit, Pre and Post Audit.

2. Impact of the Manufacturing and other Companies (Auditors' Report) Order, 1988 on the Internal Auditing functions.

3. Organisation of the Internal Auditing function-Selection and Training of Staff-assignment of audit projects-Organisational status of the Internal Auditing functions-Scope for Audit Committees.

4. Planning the Internal Audit Project : Familiarisation-Preparing check list, Internal Control Questionnaires, Audit Programmes.

5. Verification of Evidence-Detailed checking versus sampling plans, statistical sampling as used in Internal Auditing.

6. Flow Chart Techniques.

7. Internal Control-Nature and Scope, Internal Auditor and Internal Controls.

8. Field Work: Collecting Evidences-interviews-Memoranda.

9. Audit Notes and Working papers.

10. Audit Reports-Techniques of Effective Reporting. Follow up of Audit Report.

11. Summary Reports to Top Managements.

12. Communications in Internal Auditing-improving auditor-auditee relationship.

13. Auditing the operations of an enterprise-such as accounting and finance, inventory control, procurement, production, marketing, maintenance, personnel, branches and depots, Research and Development.

14. Internal Auditor and the Investigation of frauds.

15. Auditing the Internal Auditing Function.

Stage II: Paper 7: Indirect Taxation

(One Paper :3 hours: 100 marks)

Aim : To provide in-depth knowledge of indirect tax laws and their impact on management decision and more particularly to emphasis the role of the tax factors in the use of management accounting techniques.

Level of knowledge: Expert

Indirect Tax Laws and Relevant Procedures.

1. (i) The Central Excise including Modified Value Added Tax:

(ii) The Central Sales Tax Act, 1956 (74 of 1956):

(iii) The Customs Act, 1962 (52 of 1962), and

(iv) Excise Audit.

2. The Central Excises and Salt Act, 1944 (1 of 1944). The Central Excise (Valuation) Rules, 1975. The Central Excise Rules, 1944 and Customs and Central Excise Duty Drawback Rules, 1971. Familiarity with the Schedule of the Central Excise Tariff Act, 1985 (5 of 1986), licensing procedures, Statutory forms of Returns and Registers (Central Excise Series) and case law relating to determination of Manufacturing expenses.

3. Procedure for the levy and collection of Central Excise Duties for different Industrial sections viz. (i) Physical control; (ii) Records based control; (iii) Production based control; and (iv) Compounded levy scheme.

4. Adjudication and appellate procedures, offences and penalties, provisions relating to import and export of goods, certification with reference to valuation, consumption, stock and MODVAT. Procedure relating to transportation and warehousing.

5. Tax Planning in the area of Indirect Taxes.

Stage II: Paper 8: Quantitative Methods

(One Paper :3 hours: 100 marks)

Aim: To provide adequate knowledge for application of economic and quantitative methods in business situations.

Level of knowledge: Adequate .

Section I: Mathematical Techniques (40 marks)

(i) Algebra of vectors and matrices and determinants: Addition, subtraction, multiplication and inversion of vectors and matrices, solution of systems of linear equation with the help of matrix algebra.

(ii) Calculus: Variables, constances and functions-graphs of functions-limits of algebraic function simple differentiation of algebraic function-meaning of derivatives-evaluation of first and second order derivatives-partial differentiation-solution of problems involving maxima and minima of algebraic functions.

(iii) Integration (by substitution and by parts): Determining indefinite integrals for simple functions-application of integration to evaluate areas and volume of solids and revolution.

(iv) Optimisation of functions under constraints, Linear programming and simplex method of solution.

Section II : Statistical Techniques (40 marks)

(i) Probabilities: Meaning and definition of probability mutually exclusive and collectively exhausting events, repeated trials, combinatorial analysis. Addition and multiplication rules, Bayes theorem and its application.

(ii) Population and Samples : Sampling methods, uses of random numbers, simulated sampling, concept of sampling distribution and standard errors, confidence intervals for means and percentages, testing hypothesis and uses of z, t, x ² tests.

(iii) Decision making under risks and uncertainty, Decision Tree Analysis.

(iv) Simple regression and correlation.

Section III: Economic Techniques (20 marks)

(i) Demand Analysis: The basis of demand, market demand function, industry demand versus firms demand. The demand curve. Relation between demand function and demand curve. Change and shift in demand. Demand relation and managerial decisions. Theory of consumer behaviour. Substitution and income effects. Price, income and cross elasticities of demand, other demand elasticities. Time impact on elasticity. Price elasticity for derived products. Revenue concepts. Demand estimation.

(ii) Forecasting : Forecasting methodologies. Time series analysis, Trend projection, Barometric or leading indicator method. Index number analysis-composite and diffusion indices. Econometric models, curve fitting and least square methods. Correlation and regression analysis, multiple and partial correlation-input-output analysis, forecasting with input-output tables, criteria for forecasting demand for existing and new products.

(iii) Empirical production function analysis, empirical cost analysis, short and long run cost estimation, factor demand, joint product and multiproduct firm, uncertainty in production functions, profit planning under risk and uncertainty.

32. ²[Exemption from the subjects for appearing in Intermediate Examination

(1) In the case of candidates registered as students on or after lst July, 1994, the Council shall decide the individual subjects from which exemption may be granted to students who have passed such examination of any University or on reciprocal basis of such professional Institutes/Bodies in India or abroad, as may be recognised by the Council in this behalf.

(2) The Council shall also decide the individual subjects /stages of the Intermediate Examination from which candidate who is admitted as a fresh Registered Student under regulation 25A, shall be exempted on the basis of exemption from individual subjects/ stages previously secured by him under his former registration.

(3) As a transitional measure the following exemptions will be allowed:

Any candidate who is registered prior to lst July, 1994 and yet to pass the Intermediate Examination but who has passed or obtained exemption from any of the following papers of the Intermediate Examination under the old syllabus shall be exempted from the corresponding papers of the Intermediate Examination under the revised syllabus as indicated below:

(4) A candidate who has passed in the Intermediate Examination under the old Syllabus shall not be required to pass the Intermediate Examination under the revised syllabus.

A candidate who has obtained exemption or obtained the benefit of carry forward of marks in any of the above papers of Intermediate Examination under the old syllabus shall be entitled to exemption only in the corresponding equivalent papers of the Intermediate Examination under the revised syllabus. However, the benefit of carry forward of marks by "virtue of the result of any examination under the old syllabus shall not be available in any paper of the Intermediate Examination under the revised syllabus.]

32A. Exemptions

(1) A candidate who is registered as a student before 1st July, 1984, and who has passed,

(a) the Intermediate Examination of the Institute of Chartered Accountants of India, England and Wales, Scotland or Ireland or the Intermediate Examination or Parts I and II of the Examination of the Institute of Cost and Management Accountants London, shall be exempted, from the subject Book-keeping and Accountancy.

(b) a degree examination of any University or a diploma/degree examination of the Indian Institute of Science, Bangalore, or any of the Indian Institute of Technology or the Three-year Diploma in Rural Services Examination conducted by the National Council for Rural Higher Education with a paper of at least 200 maximum marks or with at least two papers in Economics or Engineering, shall be exempted from the paper 'Economics' or 'Factory Organisation and Engineering, as the case may be, prescribed in Regulation 32 provided that a minimum aggregate of 50% marks in the concerned subjects of the exempting examination had been obtained.

(c) the Final Examination of the Institute of Company Secretaries of India shall be entitled to exemption from the subjects Business Organisation, Economics, Industrial Law, Mercantile & Company Law and Book-keeping and Accountancy of the Intermediate Examination held under Regulation 32.

(2) In the case of candidates registered as students on or after lst July, 1984, the Council have the power to decide, and shall decide, from time to time, the individual subjects from which exemption may be granted to students who have passed such examination of any University or, on reciprocal basis, of such professional institutes /bodies in India or abroad, as may be recognised by the council in this behalf.

(3) The council shall also have the power to decide, and shall decide, the individual subjects/groups of the Intermediate Examination from which a candidate who is admitted as a fresh Registered Student under Regulation 25A shall be exempted on the basis of exemption from individual subjects /Groups previously secured by him under his former registration.

(4) The council shall also have the power to decide, and shall decide, the individual subjects/Groups from which exemption shall be granted on transitional basis due to commencement of syllabus prescribed in Regulation 31.

(5) The sub-regulations (1) and (4) of this Regulation shall cease to operate from 31st October, 1986 and shall stand deleted from that date and on such deletion the sub-regulations (2) and (3) of this Regulation shall be re-numbered as sub-regulations (1) and (2) respectively, when this sub-regulation shall also stand deleted and the Regulation 32A shall be renumbered as Regulation 32.

²[33. Admission to and fees for Final Examination

(1) No candidate shall be admitted to the Final Examination unless he is a Registered Student and has passed the Intermediate Examination of the Institute or of the dissolved company and unless he has paid all his dues at least sixty days prior to the commencement of the examination:

PROVIDED that a candidate shall not be admitted to any Stage or Stage (Group or Groups under the Old Syllabus) of the Final Examination as provided in regulation 34, unless he has produced a certificate from the Director of Studies or the Head of the Coaching Administration or from the Head of the Institution recognised by the Council in this behalf, duly approved by the Director of Studies or the Head of the Coaching administration, as the case may be, to the effect that subsequent to his passing the Intermediate Examination, he has satisfactorily undergone a course of postal or oral tuition for the said Stage or Stage (Group or Groups under the old syllabus) of the Final Examination as provided in regulation 34.

(2) In the Final Examination a candidate can appear in Stage III (Group I under the old syllabus) or Stage IV (Group II under the old syllabus) or both if he has completed coaching as mentioned in sub-regulation (1).

(3) Every candidate for admission to the Final Examination shall pay an Examination Fee at the rate of Rupees Two Hundred and Forty only per Stage or Group (old syllabus) and Rupees Four Hundred Eighty only for both the Stages or Group (old syllabus) or such fees as may be fixed by the Council from time to time.]

²[34. Groups, Papers and Syllabus for the Financial Examination under the Revised Syllabus

(1) The First Final Examination under the revised syllabus after the commencement of the Cost and Works Accountants (Amendment) Regulations, 1993 shall be held in December, 1994. Students who may pass the Intermediate Examination to be held in June, 1994 or later shall, and students who have passed the Intermediate Examination prior to June, 1994, who may so opt, shall and all other students appearing at the Final Examination to be held from December, 1996 shall be examined under the revised syllabus. The groups, papers and syllabus for the Final Examination under old syllabus shall be the same as mentioned in this regulation before the date of the commencement of the Cost and Works Accountants (Amendment) Regulations, 1993. The. last Final Examination under the old syllabus shall be held in June, 1996.

(2) The Stages, papers and syllabus for Final Examination under the revised syllabus under this regulations shall be as follows:

FINAL EXAMINATION : STAGES III AND IV

Stage III: Paper 9: Advanced Financial Accounting

(One Paper: 3 hours: 100 marks)

Aim: To provide a detailed insight into accounting principles and their application to complex business and non-business situations.

Level of knowledge: Expert

1. Accounting principles, concepts and conventions-measurement of business income-accounting standards-national and international.

2. Valuation of enterprise-valuation of inventories, goodwill and shares.

3. Preparation of company accounts amalgamation, absorption, reconstruction and capital reduction, holding companies, Merger Accounts.

4. Branch and Departmental Accounts-Hire purchase and Instalment Payments Royalty Accounts-Contract Accounts-Investment Accounts.

5. Preparation of Accounts from incomplete records - Self-Balancing Ledger.

6. Accounting in organisations : Farm accounting, hotel accounting - Accounting or non-profit making organisations, e.g., accounting for hospital and educational organisations, accounting for local self-government-Rural and urban.

7. Accounting for bank and insurance companies-accounting for loss of stock, loss of profit and other compensations including marine insurance claims-Electricity Company Accounts.

8. Government Accounting in India : General Principles-comparison with commercial accounting-role of the Comptroller and Auditor General of India and Public Accounts Committee-review of accounts.

Stage III: Paper 10: Information Technology and Computer Applications

(One paper: 3 hours: 100 marks)

Aim: To exercise control and communicate effectively for the exposure of professional accountants to the growing field of computerised information technology and their applications.

Level of knowledge: Basic concepts but not details of technology.

1. Basic concepts of a system : Definition of a system-open and closed system, sub-system, system integration-horizontal and vertical integration. Use of Computer in the process of integration. Input-output and process feed back control, the design of controls concept of boundary, preparation of checklist and analysis of the prerequisite for a proposed system.

2. System design : input and output design layout make up and forms for output, identification for source documents, file design and codification procedures, verification, validation and manual control over input-data, preparation and identification of the file and its controls, the physical security and pass words, output controls, data transmission control, physical security of data within the office life cycle and stages of a system design recording and communicating techniques including flow charts, decision, table and other diagrams.

3. Information and its Processing : Data and information storage and retrieval, characteristics and qualities of goods information, value and source of information, classification of information as strategic, tactical and operational organisation of file, security and maintenance, internal storage in computer-RAM, ROM, PROM, processing capabilities and size of internal storage in a computer, output devices of computer in the form of micro film, graph plotters, line printers, visual display, external storage, media and its use of electronic mail, telex.

4. Distributed data processing: Local area network, time sharing and multi-user system, linkage of main frame to micro computer links, advantages and disadvantages of distributed data processing, distributed processing and system design, future prospects of Local Areas Network (LAN) and Wide Areas Network (WAN).

5. Planning, designing and implementation of management information systems : Hardware, Software and communication technology. A computer system : data presentation for computers micro-electronics (Memory chips), human machine productivity trade off, integrated management information system covering marketing, manufacturing financial and personnel, implementation, evaluation and maintenance of Management Information System (MIS).

Section II: Computer Applications (50 marks)

1. Computer Hardware: Computer and its basic components-input, main store, external storage, processing output and control, Central Processing Unit (CPU) and Arithmetic and Logic Unit (ALU) and their elements and functions, Internal storage and representation of date, Random Access Memory (RAM), Read only memory (ROM) and Programmable ROM (PROM and EPROM). Processing capabilities and internal storage, Binary Operations.

2. Computer generations : Mainframes, mini-computers and micro computers. Characteristics of 8 bit., 16 bit and 32 bit computers and their processing capabilities. Future trend of computer developments.

3. Input and output devices : Different types of input devices and their characteristics (magnetic tape, magnetic disk, Winchester disk, cassette, floppy disk, magnetic ink recognition, optical character recognition, voice data entry), Divert data entry, OCR (Optical Character Recognition). Printers (Line, laser, dot matrix, daisy wheel) VDU (Visual display unit), microfilm, graph plotter, graphic terminal.

4. Preparation and maintenance of files : Concepts of files, records files and characters, temporary and permanent file organisation, file-transfer, updating, security maintenance, form filling and formatted screen, menus, window, variable and fixed length records and fields, methods of access-sequential, direct and dynamic-their characteristics and uses. Magnetic type layout, inter-record gaps, block and inter-block gaps, blocking factor.

5. Computer processing methods : Types of processing methods-(i)batch input and batch processing of all data; (ii) batch input and batch processing of transactions but on line file enquiries; (iii) on-line input, batch processing and on-line enquiries; (iv) on-line input updating and enquiries, real time system and response time.

6. Computer software and programming : Principles of programming stores instructions, application of computer languages FORTRAN, COBOL, BASIC, PASCAL, C. Level of software, software packages, utility softwares and operating system (OS), Bootstrap programmes, Assembler compiler and interpreters, spreadsheet packages, data base management system (DBMS), word processing software package, graphic software, simple programme writing of BASIC only for application in pay roll, inventory and sales analysis.

7. Control and audit aspects of Management Information System: Edit check, error listing, control of system security, audit trial, control of operating efficiency. Auditing in a computerised environment.

8. Computer aided technology: Computer aided design (CAD), Computer aided manufacturing (CAM). Flexible Manufacturing system.

Stage III: Paper 11 : Operations Management and Control

(One Paper: 3 hours: 100 marks)

Objective : To provide a basic understanding of the methods and techniques of production-the economics of effective utilisation of resources and the techniques employed to ensure optimum use of resources.

Level of knowledge: Expert

1. Technology of production techniques : Meaning and implication of technology, different concepts like relevant technology or appropriate technology, high-tech versus low-tech, capital- intensive versus labour-intensive, batch process. Technology forecasting- shape of things to come in the 21st Century. Basic ideas regarding manufacturing techniques including machine tools process technology, productive facilities, productive utilities and manufacturing policies, some broad ideas about the technological aspects involved in the industries covered under the cost audit.

2. Production planning, scheduling and monitoring system : The concept of integrated production planning system, linkage between production planning and sales forecasting, procurement planning and finished goods inventory policy. Actual scheduling of jobs-optimisation concept in terms of productive facilities utilisation and cost minimisation through start-up, change over, etc. Production monitoring system and Management Information System for this purpose, regular review of production planning and monitoring.

3. Production Economics : Analysis of problems involving location, layout multi-shifts product mix, materials handling facilities, utilisation of multi-purpose plants, utilisation of preventive maintenance, utilisation capacity rectification of unbalanced capacity, off-loading of products, stages of production, product plant, process planning, scheduled production stages, controlling quality level, controlling of output costs, products usages and its obsolescence, technological usage and its obsolescence, control of output costs on the basis of its cost of factors of production and utilisation of capacities, scaling of capacities with the help of rationalisation, modernisation, revamping and renovation.

4. Productivity : Meaning and significance of productivity, productivity vis- a- vis absolute production, measurement of productivity-both overall and separately for each factor like man, machine, materials. Productivity and cot productivity improvement techniques, time study, work sampling and other techniques for productivity monitoring, productivity bargaining, tools and techniques, productivity and work ethos as well as quality of work life, job evaluation and merit rating and use of these in productivity of human resources. Cost reduction and value analysis in the context of productivity. Learning curve concepts in the context of productivity.

5. Cost : Implications of multi-shift operations plant shutdown, plant location and expansion, retracting of detectives, automation in productive system utilities management, : placement of machinery and financial impact of technology upgradation and absorption.

Stage III-Paper 12

Project Management and Control (100 marks)

Objectives: To provide export knowledge on formulation, appraisal, financing, administration and control of projects.

Level of knowledge: Expert

1. Project Identification and Formulation : Different types of needs leading to different types of projects under BMRED (Balancing, Modernisation, Replacement, Expansion and Diversification) Consideration involved in decisions under each of these types.

Macro and Micro parameters in project selection, different considerations for project under private, public and joint sectors. Project formulation-preparation of project profile, project report and detailed project report, Broad criteria for pre-investment decisions.

2. Project Appraisal : Different types of appraisal-technical, economic, organisation and managerial, commercial and financial-financial techniques for project appraisal and feasibility, Discounted Cash Flow and non-discounted cash flow methods, social cost benefit analysis and economic rate of return. Non-Financial justification of projects.

3. Project Financing : Pattern of financing, sources of finance, impact of taxation, public loans, small savings, surplus of public enterprises, deficit financing, foreign aid, Public sector project financing, Role of Tax Planning in Project Financing.

4. Project Cost Systems : Projects cost accounting and monitoring, contractor and its cost system, labour and equipment cost, accounting, codification, development of cost data, labour time, reporting, direct measurement of work quantities, labour cost analysis, equipment accounting, activity based cost accounting, production rates for estimates, control of cost computer application to cost control.

5. Project Administration : Progress payments, expenditure planning, project scheduling and net- work planning, use of Critical Path Method (CPM) activities for pay requests, schedule of payments and physical progress, time cost trade off, cash flow preparing, cash forecast and monitoring of fund and other resources, control of groups of projects under one administration and associated problems in sharing resources.

6. Concepts and uses of Project Evaluation and Review Techniques (PERT) cost and PERT-time: Cost as a function of time : Project Evaluation and Review Techniques/Cost mechanisms. Accountants' role in Project Evaluation and review Techniques / Cost budgeting. Determination of least cost duration.

7. Post project evaluation.

Stage IV: Paper 13: Advanced Management Accounting Techniques and Applications

(One Paper :3 hours: 100 marks)

Aim: To provide adequate knowledge on cost accounting techniques with quantitative bias to be applied for effective planning and control of operation and for improvement of decision making process.

Level of knowledge: Advanced knowledge for formulation of problems and solution of the same.

1. Introduction : Evaluation of management accounting-Full cost allocation, corporate objective, profitability and other objective, product services and market mix, information and decision process, quantitative and qualitative factors, reporting for decision making, performance evaluation and its synchronisation with various decision models.

2. Cost allocation: Cost accumulation and allocation, general process of cost allocation and various criteria for decision making, allocation of service department cost interactions amongst service departments-reciprocal methods, allocating cost from one department to other. Joint and by-products cost-joint product problem, treatment of by-product costs, traditional joint cost allocation methods, decision making with joint products, a non-liner programming model for joint cost allocation, decision significance of the joint cost allocation procedures, identifying by-products with mathematical programming methods and accounting methods and accounting for by-products.

3. Quantitative Technique: Business modelling using lined programming, simplex method of solution and sensitivity analysis. Formation of effective matrix and its application to allocation problems (assignments, transportation and travelling salesman), Games theory and its application to marketing problems. Determination of Service level with the help of queueing theory, business modelling using simulation techniques, Replacement models including Discounted Cash Flow-Project planning using network analysis.

4. Cost behaviour and regression analysis: Classification and analysis of data for estimation and cost behaviours, standard analysis of cost behaviour using regression analysis, goodness of fit and economic possibility, significance of independent variables, statistical interference in regression. Learning curve estimating learning curve with cumulative effects of learning on productivity, cumulative average time learning model and incremental unit time on learning model, learning curve and non-linear cost estimation.

5. Cost-Volume-Profit Analysis : Cost-Volume profit assumptions and inter-relationship of cost, volume and profit.

(a) Deterministic models-models on Cost-Volume-Profit analysis, determination of Break-even point including multi-product situations. Cost-Volume-Profit analysis under multiple products, multiple production constraints, Cost-Volume-Profit models and its uses in decision process.

(b) Models under uncertainty : Building of uncertainty models-probability distribution of sale, determination of breakeven, parametric estimates for normal and non-normal distribution. Multi-product Cost-Volume-Profit analysis under uncertainty in prices and costs parameters, expected value of perfect information and sample information.

6. Pricing and decision Process : Opportunity cost, relevance and contribution approach, irrelevance of past cost profit maximising pricing model, full cost pricing, incremental cost and return on investment (ROI) pricing strategic pricing on new product. Full cost pricing-advantages and disadvantages. Measuring the cost of product quality-appraisal cost, prevention cost, internal failure cost, external failure cost, optimal price out decision, expected opportunity losses, policies related to optimum inventory model and opportunity losses., Statistical quality control.

7. Variance for sales, profit and cost analysis : Sales and profit analysis-production mix an yield variances-a de-composition approach to variances-planning and control variances. Cost variance investigation models-materiality insignificance-statistical significance, non-normal probabilities-control charts-formal models for multiple observation-decision models with costs and benefits of investigation, difficulties in analysis of variances.

8. Decentralisation and transfer pricing : Choice of responsibility centre and decentralisation including its merits and demerits, general criteria for transfer pricing outlay cost and opportunity cost under different market situations, multinational and global tax minimisation, transfer pricing, different methods of evaluating transfer pricing-absorption cost, marginal cost, cost plus profit and standard cost including the limitations of these techniques in choosing a profit index, return on investment, concept of residential income and human problems with controls of divisional performance.

9. Current issues in management accounting : Inflation and its effect on managerial decision making-social dimensions of business decisions. Human resources accounting-models and their applications. Programme and performance budgeting, zero base budgeting, social accounting and social reporting and human resource planning and optimisation of employees costs.

Stage IV : Paper 14: Advanced Financial Management

(One Paper: 3 hours: 100 marks)

Aim : To provide a detailed insight into accounting process and their applications in complex business management.

Level of knowledge: Expert

1. Planning Environment : Financial objectives, policies on financing investments and dividends. Financial forecasting, planning and uncertainties, interest rates, inflation, capital gains and losses, exchange control regulation, government credit policies and incentives, statistics on production, price indices, labour, capital market based on published statistical data.

2. Sources of finance (national) : (a) Medium and long term : Venture Capital, seed capital, equity preference, convertible and cumulative preference shares, debentures, convertible debentures, hire purchases, leasing, public deposits, and Institutional finance-Life Insurance Corporation, Unit Trust of India, Industrial Finance Corporation of India, Industrial Credit and Investment Corporation of India, National Industrial Development Corporation, Industrial Development Bank of India, Small Scale Industrial Development Bank of India (SIDBI), State Finance Corporation (SFC), Industrial Rehabilitation Bank of India (IRBI).

Internal sources, related earnings, provisions, etc. Issues in raising finance, legal form of organisation, provisions of the Companies Act, control of capital issues. (b) Short term sources; Trade Credit, Factoring, Bill of Exchange, Bank Loan, Cash Credit, Overdraft.

3. Sources of Finance (International) : Raising funds in foreign markets and investment in foreign projects, exchange rate-risk agencies involved and procedures followed in international financial operation-concepts of balance of trade and balance of payment.

4. Analysis of operating and financial leverages : Concept and nature of leverages-operating risk and financial risk, operating leverages, financial leverages and combined leverages concepts, measures and their interpretations. Operating. leverages and Cost Volume Profit analysis-Earning Before Interest and Tax (EBIT) and Earning Per Share (EPS) analysis-indifference point.

5. Capital structure theories and planning : Concept of capital structure and its perimeters, financial structure and capital structure-simple and complex. Theories of capital structure-net income approach, net operating income approach, traditional and Miller and Modigliani approaches, and their criticism. Factors for capital structure planning. Capital structure trend in private and public sectors, trend in private and public sectors in India.

6. Cost of Capital : Its nature and meaning, relevance of cost of capital in financial decisions, computation of specific cost, selection of weights, overall cost and marginal cost of capital, corporate tax and its impact on cost of capital.

7. Capital budgeting and impact of time lag in analysis of capital utilisation and availability-pay back period, present value and internal rate of return including sensitivity analysis, limitations on capital budgeting. Determination of the cost of capital-risk of uncertainty, risk and return in a portfolio context, capital and pricing model (CAPM), inflation, leasing versus buying income taxes, benefits of accelerated cost recovery system (higher rate of depreciation), investment credits.

8. Working capital management: Operating cycle concept, forecasting, working capital requirements, strategies of financing current assets. Working capital and term loans recommendations of the Tandon Study Group, Monitoring advance management of different components. Working capital management under inflation, new projects and working capital management.

9. Financial services-Leasing, Merchant Banking, Hire-purchase, Cash Purchase, Factory.

10. Advance Financial Analysis and Planning : Financial statements, financial ratio analysis, fund flow and cash flow analysis, leverages, Cost-Volume-Profit analysis financial forecasting, interfirm comparison, financial analysis and aspects of inflation.

11. Dividend and retention policies: Formulating a dividend policy, factors for consideration. Dividend theories-Walter's model, Gordon's model, residual theory of dividend, Miller and Modigliani hypothesis, Indian position in private and public sector in general.

12. Financial management in public sector: Management of accounts receivable and inventories in public sector units, source of fund of public sector units-cost of loans, cost of equity, cost of retained earning and debt-equity ratio. Evaluation and control of capital expenditure-determination of cash flows and cost benefit analysis, Pricing policy of public enterprises, project formulation and implementation, Social cost benefit analysis.

Stage IV: Paper 15: Advanced Management Accounting Strategic Management

(One Paper: 3 hours: 100 marks)

Aim: To cover adequate knowledge of organisation and its environment, formulation and importance of strategic planning in achieving organisational objectives and role of Management Accountant in the control of marketing and strategic planning.

Level of Knowledge: Expert

1. Strategic Planning:

(i) Planning Environment Economics-forecasts, trend and changes-social, political, legal and technological impacts. Distribution channels and competitive forces. Government policies, economic growth and government expenditure. Public and Private sector investment. International trade- prices and Government policies for capacity expansion, new industries, subsidiaries and substitutes. Government role in controlling inflation.

(ii) Strategies : Meaning and implications of corporate planning, long range planning, business policy planning, strategic planning and strategic management. Processes of developing strategic plan-definition of mission, corporate objectives-(Profit gap, sales gap, risk gap and other strategies, SWOT (Strength, Weaknesses, Opportunities and Threats) analysis, target selling, strategy formulation and implementation, monitoring mechanism, strategies for stagnation versus growth, strategies for growth through expansion versus diversification, Acquisition and merger strategy. Strategy of joint venture-both in India and abroad. Marketing strategy as a part of corporate strategy, growth under inflation and protection of shareholders, real capital. Financial objectives, non-financial objectives, resources, analysis and evaluation.

(iii) Model Building: Strategies in the development of models, Delphi Model, econometric, mathematical programming, budgetary and Heuristic Model. Sensitivity analysis and the characteristics of this Model. Limitations in model building vis-a-vis simulation techniques.

2. Marketing:Concept-production orientation vs.market orientation marketing objectives, framework and management of marketing-mix. (ii) Linkage between strategic planning and marketing strategy-both forward and backward, (iii) research and intelligence-sources for and techniques for acquiring information necessary for marketing decision-making, (iv) control or application of management accounting in marketing-analysis of marketing costs and profitability, pricing policies and strategies, budgetary control in marketing evaluation and control of sales activities.

Evaluation of sales promotion and advertisement Distribution cost analysis and control. Evaluation of marketing research and marketing planning.

Contribution analysis and product-line profitability analysis. Product rationalisation including product revamping, product range extension, product elimination and also new product introduction, Evaluation of research information-perfect, imperfect and Bayes' Theorem.

Stage IV : Paper 16: Cost Audit

One Paper: 3 Hours: 100 marks

Aim : To provide an in-depth study of the body of knowledge comprising the techniques and methods of planning and executing as a Cost and Management Audit assignment.

Level of knowledge: Expert

Section I : Cost and Management Audit (50 marks)

1. Nature, objects and scope of cost audit-The concept of efficiency audit, propriety audit, management audit, social audit.

2. Appointment of Cost Auditor-His rights, responsibilities, status. relationship and liabilities-professional and legal under the Companies Act, 1956 (1 of 1956), the Cost and Works Accountants Act, 1959 (23 of 1959).

3. Planning the Audit-Familiarisation with the Industry, the organisation, the production process systems and procedures, list of records and reports, preparation of the audit programme.

4. Verification of records and reports-Utilisation of statistical sampling methods-verification performance and statements maintained under the Cost Accounting (Records) Rules.

5. Evaluation of Internal Control System: Budgetary Control, capacity utilisation, inventory control, management information system.

6. Assessment of the adequacy of the internal audit function.

7. Audit notes and working papers-audit reports to management.

8. The Cost Audit Reports-Contents of the Report, distinction between "Notes and Qualifications" to the Report. Cost Auditor's observations and conclusions.

9. Professional Ethics and Code of conduct.

10. Relationship between the Statutory Financial Auditor, the Internal Auditor and the Statutory Cost Auditor.

11. Cost Accounting (Records) Rules under clause (d) of sub-section (l) of section 209 (issued one year before the examination) and Cost Audit (Reports) Rules issued under section 233B of the Companies Act, 1956 (1 of 1956). Critical study of the rules including the prescribed Annexure and Performa applicable to the industries covered.

12. Review of Cost Audit Report by the Government : Objectives, methods, follow-up actions and disposal of Cost Audit Reports by the Government company and other endusers of the cost audit reports.

13. Comparative Studies between cost audit and financial audit with special reference to disclosure of information to members of Parliament and the general public.

14. Special Penal Provisions for Cost Auditors.

Section II : Cost Audit Leading to other Services (50 Marks)

A. Management Audit

1. Meaning, nature and scope of organisational needs for Management Audit and its coverage over and above other audit procedures.

2. Audit of the Management Processes and functions such as Planning, Organisation, Staffing, Co-ordination, Communication, Direction and Control.

3. Evaluation of Management Information and Control Systems with special emphasis in Corporate Image and Behavioural Problems.

4. Corporate service audit (Customer services) : Product (Research and Development) and import substitution, customers channel (export).

5. Corporate Development and Management Audit, including operational and propriety aspects.

6. Social Cost and Benefit of business enterprises with particular reference to developing countries.

7. Audit of Social responsibility of management.

(B) Other services:

8. (a) Other service to the Management Certification for various purposes-the records to be verified and the safeguard to be taken-the form and content of the certificates.

(b) Cost Audit as an aid to management, Government, shareholders, other external agencies and the public voluntary Cost Audit.

(c) Productivity Audit-Labour, Material and Capital.

(d) Audit of Energy Conservation and Environmental Protection.

(e) Efficiency Audit-audit of sub-systems of an enterprise.

(f) Assessment and quantification of losses under marine, fire and accident policies.

(g) Inventory Audits for Banks and other agencies.]

²[35. Exemption from the subjects for appearing in Final Examination

(1) In the case of candidates registered as students on or after lst July, 1994, the Council shall decide from time to time, the individual subjects from which exemption may be granted to students who have passed such examinations of any University or on reciprocal basis of such Professional Institutes/ Bodies in India or abroad, as may be recognised by the Council in this behalf.

(2) The Council shall also have the power to decide and shall decide the individual subjects/ stages of the final examination from which a candidate who is admitted as afresh Registered Student under regulation 25A shall be exempted on the basis of exemption from individual subjects/stages previously secured by him under his former registration.

(3) Any candidate who has passed or obtained exemption from any of the following papers of Final Examination under the old syllabus shall be exempted from the corresponding papers of Final Examination under the revised syllabus as indicated below:

A candidate who has obtained exemption or obtained the benefit of carry forward of marks in any of the above paper of the Final Examination under the old syllabus shall be entitled to exemption only in the corresponding equivalent papers of Final Examination under the revised syllabus. However, the benefit of carry forward of marks by virtue of the result of any examination under the old syllabus shall not be available in any paper of Final Examination under the revised syllabus.]

⁵[35A. Exemptions

(1) A candidate who is registered as a student prior to lst July,1984, and who has passed,

(a) the Intermediate Examination of the Institute of Chartered Accountants of India, England and Wales, Scotland or Ireland or the Final Examination or Parts Ill and IV of the Examination of the Institute of Cost and Management Accountants London, shall be exempted, from the papers Advanced Accountancy and Taxation prescribed in Regulation 35.

(c) the Final Examination of the Institute of Company Secretaries of India shall be entitled to exemption from the subjects Advanced Accountancy Taxation, Financial Management, and Principles and Practice of Management of the Final Examination held under Regulation 35.

(2) In the case of candidates registered as students on or after lst July, 1984, the Council shall have the power to decide, and shall decide, from time to time, the individual subjects from which exemption may be granted, strictly on reciprocal basis to students who have passed such examinations of such professional institutes /bodies in India or abroad, as may be recognised by the council in this behalf.

(3) The council shall also have the power to decide, and shall decide, the individual subjects/groups of the Final Examination from which a candidate who is admitted as a fresh Registered Student under Regulation 25A shall be exempted on the basis of exemption from individual subjects/Groups previously secured by him under his former registration.

(4) The council shall also have the power to decide, and shall decide, the individual subjects/Groups from which exemption shall be granted on transitional basis due to commencement of syllabus prescribed in Regulation 34.

(5) The sub-regulations (1) and (4) of this Regulation shall cease to operate from 31st October, 1986 and shall stand deleted from that date and on such deletion the sub-regulations (2) and (3) of this Regulation shall be re-numbered as sub-regulations (1) and (2) respectively, when this sub-regulation shall also stand deleted and the Regulation 35A shall be renumbered as Regulation 35.

36. Conduct of Examinations

(1) The examinations shall be conducted in such manner and at such times and places as the Council may direct:

PROVIDED that the qualifying examinations shall be held at least once in each year.

(2) The dates and places of the examinations and other particulars shall be notified in the Journal of the Institute.

37. Application for admission of Examination

Application for admission to an examination shall be made in the prescribed form, copy of which may be obtained from the secretary. Every such application together with the prescribed fee shall be sent so as to reach the Secretary in accordance with direction given by the Council.

38. Refund of fees

(1) The fee paid by, a candidate who has been admitted to an examination, shall not, except as otherwise provided in sub-regulation (2), be refunded.

(2) Where a candidate applies to the Council for transfer of fee to the next examination on the ground that he was prevented from attending an examination by circumstances beyond his control, the Council may permit the fee paid by such candidate to be adjusted towards the fee payable for the next examination only:

PROVIDED that no such application received after the expiry of fifteen days from the last date of the examination shall be considered.

39. Candidates to be supplied with Admission Cards

An Admission Card stating the place, dates at which the candidate will be required to present himself for examination shall be sent to each candidate at the address given by him in his application so as to reach him not less than fourteen days before the commencement of the examination.

40. Examination certificate

Every candidate passing the Intermediate and Final Examination shall be furnished with a certificate to that effect in 'Form J'.

²[41. Examination results

(1) A candidates shall be declared to have passed in an Examination if he has passed in all the Stages or Groups (under the old syllabus) comprised in that examination from which he has not been exempted. A candidate shall be declared to have passed in a Stage or Group (under the old syllabus) of an examination if he gets at one sitting the minimum per cent of the total marks in each paper from which he has not obtained exemption as specified in column II below and an aggregate of 50 per cent of the total marks of all such papers in that Stage or Group (under the old syllabus):

(2) A candidate who is not declared successful in a Stage or Group under the old syllabus of any examination but-

(i) obtains 60 per cent or more of the total marks in any paper or papers shall be exempted in subsequent examinations from that or those papers in which he secured 60 per cent or more marks; or

(ii) obtains 60 per cent or more of the total marks in any paper and a minimum of 40 per cent of the total marks (under the revised syllabus) or 35 per cent of the total marks (under the old syllabus) in each of the remaining papers of that Stage or Group (under the old syllabus), shall be allowed the benefit of carry forward of the actual marks so obtained by him in the papers in which he had obtained 60 per cent, or more marks for the purpose of computing his result in the subsequent examinations:

PROVIDED that if the benefit of exemption or carry forward mentioned in clauses (i) and (ii) above is voluntarily withdrawn by a candidate, he shall not be entitled to such benefit in his future attempts.

(3) A list of successful candidates in an examination shall be published in the Journal of the Institute in such manner as the Council may direct. The names of candidates obtaining distinction in the examination shall be indicated in the list. Each candidate shall be individually informed of his results and also of the marks obtained by him in the paper or papers of the examination in which he appeared:

PROVIDED that in any case where it is found that the result of an examination has been affected by error or fraud or using unfair means during the examination, the Examination Committee shall have the power to amend the result suitably.

(4) A candidate who passes the examination obtaining 70 per cent of the total marks of all the papers of the examination at one sitting shall be deemed to have passed the examination with distinction.

(5) Information as to whether a candidate's answers in any particular paper of any examination have been examined and valued will be supplied to the candidate on his application within a period of thirty days from the declaration of the result accompanied by a fee of rupees fifty only per paper or such fees as may be fixed by the Council from time to time. The fee is only for verifying whether a candidate answers in any particular paper have been examined and valued and not for the revaluation of answers. The marks obtained by the candidates in individual question or in sections of a paper cannot, in any circumstances, be supplied. If, as a result of such verification, it is found that there has been either an omission to examine or value any answer or there has been mistake in the totalling of the marks, the fee for verification shall be refunded in full to the applicant.

(6) After a period of six months from the date of declaration of the result of an examination if a candidate requires a duplicate copy of his marks sheet in respect of that examination, he shall be supplied with a duplicate copy of marks sheet on receipt of an application from him in that behalf on payment of a fee of rupees twenty-five only or such fee as may be fixed by the council from time to time.

42. Disciplinary action against candidates resorting to unfair means

If a candidate is found to have resorted to or attempts to resort to unfair means pertaining to any examination, the Council may on receipt of a report to that effect, and after such investigation as it may deem necessary, take such disciplinary action against the candidate concerned as it think fit.

43. Examiners

The Examination Committee shall maintain a list of approved examiners, from which the examiners will be appointed for a particular examination to set up question papers and value answer papers.

44. Practical Training

(1) A person who has passed the examinations prescribed in this Chapter or the examinations recognised as equivalent thereto shall not be eligible for membership of the Institute unless he has undergone such practical training as the Council may from time to time decide.

(2) For purposes of sub-regulation (1) above, an applicant for membership of the Institute shall be required to produce evidence to the satisfaction of the Council that he has acquired for a period of not less than three years practical experience covering different branches of Costing or Industrial Accounting, viz., Stores, Materials, Labour, Overhead etc., in a responsible position in any one or more Industrial or Commercial or Government units or department:

PROVIDED that in the case of a person who has been admitted to Associate or Fellow Membership of the Institute of Company Secretaries of India, practical training in Cost or Industrial Accounting functions as set out in sub-regulation (2) above for a minimum period of two and a half years may be considered adequate.

CHAPTER VI : POST GRADUATE TRAINING

45. Training for Members

The Council may impart or arrange to impart practical and/or theoretical training through lectures, seminars, summer camps and factory visits and the like, in such subjects as it considers useful for members of the Institute and other persons:

PROVIDED that where such training is followed by examinations and the award of certificates or diplomas in respect thereof, the training shall be conducted and the examinations held in accordance with the provisions of this Chapter.

MANAGEMENT ACCOUNTANCY EXAMINATION

46. Scheme of Management Accountancy Examination

(1) The Management Accountancy Examination shall comprise two Parts, viz., Part I and Part II and a candidate shall be deemed to have passed the Management Accountancy Examination when he has qualified in both Parts I and II. Part I of the Management Accountancy Examination shall consist of two Groups, viz., Group I of 200 marks and Group II of 300 marks. A candidate shall ordinarily be declared to have passed in a Group of Part I, if he obtains at one sitting a minimum of 50 per cent of the total marks in each paper and in aggregate 55 per cent of the total marks of all the papers in that Group. The Council may however vary the minimum pass marks at its discretion for all the examinations.

(2) No candidate shall be admitted to Part II of the Management Accountancy Examination unless he has passed Part I of the said examination. Part II of the examination shall comprise submission of a Thesis of 200 marks and a Viva-Voce Test of 100 marks. A candidate shall be declared to have passed in Part II of the examination if he obtains a minimum of 50 per cent of the total marks in the Thesis and a minimum of 50 per cent marks in the Viva-Voce Test. Failure to obtain the minimum pass marks either in the Thesis or in the Viva-Voce Test will necessitate re-submission of the Thesis with modifications and improvements made therein or of another Thesis followed in either case by a Viva-Voce Test as prescribed in this Chapter.

(3) A candidate who has passed in Group I or in Group II of the Management Accountancy Examination prior to April 1974 after being examined under the syllabus then in force shall not be required to pass in Group I or in Group II, as the case may be, of Part I of the Management Accountancy Examination to be held after April 1974.

47. Admission to Part I of Management Accountancy Examination and Admission fee

(1) No candidate shall be admitted to Part I of the Management Accountancy Examination unless a minimum period of one year has elapsed between the date of his enrolment as a member of the Institute and the first day of the month of the examination.

(2) A candidate shall be admitted to any or both Group of Part I at any one sitting.

(3) A candidate for admission to Part I of the examination shall pay a fee of Rs.80 for both Groups; or Rs. 45 for any one Group.

(4) Regulations 36 to 39,42 and 43 shall, so far as may be, apply to the examination held under this chapter.

48. Papers and Syllabus for Part I of Management Accountancy Examination

Candidates for Part I of the Management Accountancy Examination shall be examined in the following groups and subjects.

GROUP 1

Paper 1 : Management Accountancy

(One Paper: 3 hours: 100 Marks)

Higher treatment of the topics covered in 'Financial Management' paper of the Final Examination syllabus, in addition, the following topics:

Capital: Problems of capitalisation, requirement, sources, period and application, capital Reserves, Reserves for specific and general contingencies. Return on capital Depreciation policies, Insurance for safety to guard against a loss of property or income, and to comply with statutory obligations. Problems of the change of purchasing power of money on business finance.

Forecasting: Forecasting and its relation to regulation of capital for short, medium and long term periods. Relationship between sales, production and other functional budgets, Cash forecasts.

Control: Comparisons of current and short-period costs with standard costs, and Examination of deviations. Periodical or ad hoc statements to examine progress or compliance with laid down plans. Relating figures to responsibilities. Measurement of productivity and efficiency. Relating business policy to national policy indicating social obligations of the individual undertaking.

Reporting : Presentation of annual accounts :.Company Laws requirements- meaningful display of financial data. Financial and Cost Accounting analysis reporting for managerial control.

Paper 2: Advanced Management Techniques

(One Paper: 3 hours : 100 Marks)

What Management is ? Objectives and Functions of Management. Process and Organisation for Management.

Production, Planning and Control: Objectives, Planning, routing, scheduling dispatching. Progress Control; Inspection and Quality Control. Economic Batch Quantity. Tools, Jigs, Fixtures and Tool- room; Maintenance; Material Management and Inventory Control; Standardisation, Simplification and Specialisation; Interchangeability. Shipping: Job Estimating (For quotations): internal Transportation; Research, Development and Design. Operational Research; Value Analysis and Value Engineering; Organisation and Methods. Latest techniques of taking managerial decision. Product- pricing. Intra-Company Transfers. Inter-firm Comparison. Cost Reduction.

Group II

Paper 3: Industrial Relations and Personnel Management

(One Paper: 3 hours: 100 Marks)

Public Relations : Industrial laws and rules. Government Departments. Local Authorities. Chambers of Commerce. Trade Associations. Technical and professional bodies. Trade Unions. Public Relations Department: Interpretation of labour policies and programmes to employees and to the outside public; Maintenance of good relations with public organisations, like newspapers, radio, Government agencies and consumer organisations.

Industrial Psychology: Principles and methods of Industrial Psychology. Individual differences in regard to general intelligence and smartness, intellectual and manual attainments and special aptitudes. Improvements effected by improved working conditions. Character, personality and temperament. Psychology and technique of interview. Guidance in and selection of vocations. Psychological aspects of industrial education and training, work incentives and work study. Industrial accidents and accident proneness. Environment-physical, mechanical and organisational. Fatigue, monotony and boredom; decreasing fatigue and occupational hazards. Psychology of the working group. The morale of the workman. Factors constituting the morale: pay: security; personal interest in work; status in the Industry; treatment as a human being; importance attached to employee-opinion. Beneficial leadership of persons in authority.

Employment of Personnel: Sources of labour supply (from within the organisation as well as from outside sources). Procedure for employment; interview; recommendations; personnel investigation; tests and physical examination. Job specifications, terms of employment, wage scales.

Labour Relations: Transfer, promotion, demotion, discharge, lay off and quit of staff. Labour-Management conflict, its evil effects and remedies. Wage Boards, Joint Councils, etc. Employer-Employee co-operation in (i) scrap reduction; (ii) quality maintenance of products. Labour turnover. Collective Bargaining. Management and Labour Union; Security of the Union, the Worker and the Employer. Labour absenteeism. Effects of labour legislations. Case law developing through Industrial Appellate Tribunal Awards, Emphasis on Standing Order and Departmental Procedure. Employee Training-Apprenticeship training; ordinary training for jobs; tests for accident-proneness; Foreman's Manual; Training for clerical staff.

Employee Counselling: Offering advice to an employee about his personal problems and difficulties, even apart from those relating to his employment. Safety-causes and costs of accidents. Occupational diseases. Accident frequency rate. Safety programmes.

Health and Recreation: Sanitary measures; hygienic (baths, lavatories, etc.) and medical series (first aid, hospitalisation, surgical benefits and other free medical services); recreation clubs and other games and sports arrangements. Health insurance schemes.

Employee Services: Government life insurance; Canteen or Cafeteria; Company's or Employees' Co-operative Stores; Retirement and Pension plans; Holidays with pay; Provident Funds and Gratuities; Housing Loans; Co-operative Credit Societies; Employee publications; Creches for children of women employees; Suggestive Systems; etc.

Method Study : Definition and objectives. Analysis of operations. Operation process chart recording steps of work. Analysis of Flow Process Chart. Improvements in factory layout and organisation. Steps in motion analysis. Motion economy. Layout of work-place. Man and Machine Chart analysis. Factory tools and equipments. Elimination of waste. Studies in fatigue. Working Conditions. Human problems relating to workmen and management.

Time Study: Definitions and objectives. Organisation and personnel. Equipment. The technique of making a study. Skill, effort and working conditions. Securing Standard times. Computing standard allowances, Preparations, idle-time, fatigue and working conditions. Standard data and their uses.

Wage Principles: Underlying principles of wage payments. Job evaluation; Merit Rating. Time and piece work payments. Bonus Schemes. Utility of and principles governing incentive schemes. Individual and group incentive schemes. Miscellaneous financial and non-financial incentive to improve output and efficiency.

Paper 4: Marketing Organisation and Methods.

(One Paper: 3 hours: 100 marks)

Marketing Functions : Sales, Sales promotion including publicity and advertisement; Market Research; Sales Planning, Forecasting, Market Analysis and Method of Distribution; Price Policy.

Sales Budget : Formulation of sales policy and marketing activities, Sales promotion including advertising. Wholesale and retail sales and sales direct to consumers, sales planning and channel of distribution. Determination of selling price. Types of retail stores; Single unit, Multiple Shops, Departmental Stores, Consumers' Co-operative, House-to-house selling and mail order business. Sale of raw materials through produce exchanges. Village Fairs, Market Research.

Sales Organisation : United control under the Sales Manager filtering through operational and functional managers. Breakdown into areas and branches. Sales programmes and campaigns. Travelling salesmen and representatives. After-sale services. Training of Salesmen and Servicemen. Selling remuneration: Salary, commission, brokerage, bonus and other contributions, besides actual travelling and other more direct selling expenses. Public contracts.

Control of Sales : Maintenance of records of customers, travellers and territorial results. Statistics, correspondence and instructions to despatch department and factory. Co-ordination with other divisions of the enterprise: Purchase, Store-keeping Design, Production and Transportation. Comparison of achievements against targets. Export Promotion-Government Incentives. Export -Import policy-trade agreements.

Paper 5 : Economic Planning and Development

(One paper: 3 hours: 100 marks)

Definition of Economic Planning: Objectives, limitations and essentials of planning; Communistic vs. Democratic Planning; Imperative and indicative planning; planning in backward areas. Different aspects of economic development: Economic consideration; Financial aspects; sources of finance.

Economic Planning and Development in India: Mixed Economy. Five-year Plans and industrial developments. Specific areas of economic and industrial development: Small-scale and large-scale industries; Nationalisation. Appraisal of achievements; Deficit financing; Inflation; Taxation and public debt; Financial Institutions; Problems of population explosion and economic growth; Food problem and food policy; Agricultural developments; Tariff policy; Foreign Exchange Control; Foreign private investments; Climate and policy of Foreign investment; Foreign Trade Policy.

49. Declaration of Results

(1) A list of successful candidates in Part I of the Management Accountancy Examination shall be published in the Journal of the Institute in such manner as the Council may direct and each candidate shall also be individually informed of the marks obtained by him in each paper of Part I:

PROVIDED that in any case where it is found that the result of an examination has been affected by error, malpractice, fraud, improper conduct or in any other way, the Examination Committee shall have the power suitably to amend such result and to make such declaration as the Committee Considers necessary.

(2) Information as to whether a candidate’s answers in any particular paper or papers of Part I of any examination have been examined and valued will be supplied to the candidate on his forwarding within a month of the declaration of the result of Part I, an application accompanied by a fee of Rs. 10 for any or all papers. The fee is only for verifying whether a candidate's answers in any particular paper or papers have been examined and valued, and not for the revaluation of answers. The marks obtained by the candidates in individual questions or in sections of a paper cannot, in any circumstances, be supplied. If as a result of such verification, it is discovered that there has been either an omission to examine or value any answer or answers or there has been a mistake in the totalling of the marks, the fee for verification shall be refunded in full to the candidate.

50. Thesis and Viva-Voce

(1) Candidate who has passed Part I of the Management Accountancy Examination shall submit a Thesis on a subject to be approved by the Examination Committee. He shall submit in English five typewritten or printed copies of the Thesis in such manner as the Examination Committee may direct.

(2) The Examination Committee may make special rules in connection with submission of Thesis and a copy thereof shall be forwarded to the writer of the Thesis for their adherence.

(3) Every candidates submitting a Thesis shall do so with a fee of Rs. 100 which shall not be refundable.

(4) The Examination Committee shall have the Thesis duly examined either by it or by reference to a Board appointed by it and the result of the examination shall be communicated to the candidate. The decision of the Committee in this behalf shall be final.

(5) The copy-right to the Thesis submitted by a candidate shall vest with the Council who may make such use of it as may be necessary.

(6) A candidate who has attained the required standard in the Thesis shall be required to appear at a Viva-Voce Test before an Interview Board to be appointed by the Examination Committee.

(7) If a candidate sails to obtain the minimum pass marks either in the Thesis or in the Viva-Voce Test, he may at his option resubmit either the same Thesis with modifications and improvements made therein or submit another Thesis and on his attaining the required standard therein, he shall be required to appear at another Viva-Voce Test as provided in the Regulations.

(8) The marks obtained by a candidate in Part II of the examination shall not be intimated to him unless he is declared successful in both the Thesis and the Viva-Voce Test.

51. Examination Certificate and qualifying letters

Every candidate passing the examination under this Chapter shall be awarded a Certificate to the effect in Form J and shall be entitled to use the letters "DIP.MA" after his name to indicate that he has passed the Management Accountancy Examination of the Institute.

CHAPTER VII :- ELECTIONS

52. Dates of election

The following dates relating to the election of members to the Council, namely, the last date for the receipt of nominations, the last date for the withdrawal of nominations, the dates or dates of polling, the last date for receipt of voting papers by post, the date or dates of counting of votes, and the date of declaration of results, shall be fixed by the Council and notified by it in the Journal of the Institute at least three months before the date on which the counting of votes commences.

53. Members eligible to vote

(1) Every member of the Institute shall be entitled to vote in any election to the Council by the constituency to which according to his professional address he belonged on a date immediately five months prior to the date on which the list of members eligible to vote in any election is published, provided that his name has been borne on the Register of Members continuously for a period of not less than five months immediately prior to the date of publication of the list of members eligible to vote in that election and provided further that on lst October of the year previous to that in which the election is held, his entrance fee, annual membership fee and other dues for and in respect of the year previous to that in which the election is held, are not in arrears.

(2) A member whose name stands removed from the Register of Members on the date on which he has to cast his vote shall not be entitled to vote at the election notwithstanding that his name has been published in the list of voters.

54. Qualifications of members to stand for election

⁶[(1)] Only Fellows whose names are contained in the list of voters published under Regulation 56 and who are eligible to vote at the election, shall be eligible to stand for election to the Council from the Constituencies in which their names are included.

⁷[(2) Notwithstanding anything contained in sub-regulation (1), a fellow shall not be eligible to stand for election as, or for being a member to the Council if,-

(a) he has held office as a member of the Council during three consecutive terms, whether full or part; or

(b) he is employed by or under the Institute.

Explanation 1 : For the purpose of this rule, one term of office of an elected member to the Council shall be the duration of any Council constituted under section 14 of the Act.

Explanation 2: A fellow who has ceased to hold office as a member of the Council as aforesaid continuously for two consecutive terms shall again be eligible to stand for election to the Council under sub-regulation (1) from the constituency in which his name is included.]

⁸[55. Number of members to be elected

(1) The number of members to be elected from each regional constituency shall be one member for such number of members in the constituency as may be determined by dividing the total number of members as determined in accordance with sub-regulation (4) by twelve (hereinafter referred to as the maximum number of members) to be elected to the Council in pursuance of sub-section (2) of section 9 of the Act:

PROVIDED that each constituency shall have at least one person elected therefrom to the Council.

(2) In case the resultant number of members for each constituency, after having added up in terms of absolute number without considering the fraction, is less than the maximum number of members, the fraction in respect of a region with the highest fraction shall be counted as one. In case the total is still less than the maximum number of members, the fraction in respect of the region with the next highest fraction shall be counted as one. This procedure shall be continued until the total number of members becomes equal to the maximum number of members.

(3) In case the resultant number of members for each constituency, after having added up is less than the maximum number of members and where there are more than one regional constituency with exactly the same fraction, the constituency with a higher number of members shall have precedence in the matter of conversion of the fraction into one.

(4) The total number of members referred to in sub-regulation (1) shall be determined with reference to the number of members whose names are borne on the Register of Members of the Institute on a date immediately five months before the date on which the list of members eligible to vote in any election, is published.

Explanation: For the purposes of this regulation where the proviso to sub-regulation (1) becomes applicable, the procedure contained in sub-regulations (1) and (2) shall be gone through after-

(i) deducting the number of members in such constituency from the number of members referred to in sub-regulation (4); and

(ii) deducting the number of one person, to be elected in pursuance of the said proviso, from the maximum number of members to be elected to the Council.]

56. List of Voters

(1) At least three months before the date fixed for commencement of counting of votes in an election, the Secretary shall prepare-

(a) a list of members of Institute in each constituency eligible to vote showing inter alia distinctly and separately-

(i) whether any particular member is an Associate or a Fellow;

(ii) the polling area or polling booth to which the voters is attached and in which he should exercise his franchise, if the Secretary decides that his voting shall be in polling booth, and not by post, under the powers vested in him under Regulation 63B.

(iii) the location of the polling booth and polling area for which each such booth has been selected; and

(iv) whether any particular member is entitled to vote by post under regulation 63N; and

(b) (1) Issue a notice mentioning the number of members to be elected and calling for nominations for candidates for election before a specified date which shall not be less than fourteen days from the date of publication of the notice.

(2) The Secretary shall send a copy of the List of Voters and a copy of the notice referred to in clause (b) of sub-regulation (1) to each member of the Institute irrespective of whether he is a voter or not.

(3) The address published in the list of members eligible to vote will be final for determining the manner in which member will be entitled to cast his vote or the constituency or the polling booth to which he will belong for purposes of casting his vote:

PROVIDED that if a member attached to a particular polling booth in a city where more than one polling booth have to be set up, finds that it would be difficult for him to vote at the polling booth to which he is attached, he may, at the discretion of the Secretary, be permitted to vote at another polling booth in the same city. Application in this behalf stating the reasons for the request must reach the Secretary at least 45 days before the date of polling.

57. Nomination of candidates

(1) Every nomination of a candidate shall be in Form K duly signed by the Candidate and by the proposer and seconder, both of whom shall be persons entitled to vote in the election and shall be forwarded by registered post only, addressed to the Secretary by name so as to reach him on or before the specified date.

(2) Every candidate for election shall pay a fee of Rs. 300 which shall not be refundable in any circumstances except as hereinafter provided:

PROVIDED that not more than one such payment need be made by any one candidate in respect of his candidate for any one election:

PROVIDED FURTHER that in the event of his nomination not being accepted as valid as hereinafter provided, the fee of Rs. 300 paid by him shall be refunded to him in full.

58. Withdrawal of candidature

Any candidate may withdraw his candidature by notice in writing addressed to the Secretary by name and by registered post so as to reach him before 3 O'clock on the fifteenth day succeeding the date fixed for the receipt of nomination papers. No person who has thus withdrawn his candidature shall be allowed to cancel his withdrawal. The withdrawal of candidature shall be intimated by the Secretary to the other candidates standing for election in the constituency. Any candidate who withdraws his candidature in accordance with this Regulation will be entitled, on an application made by him in this behalf, to the refund of half the amount of fee deposited by him under Regulation 57.

59. Security of nominations

(1) The Secretary shall scrutinise the nomination papers of all candidates other than those whose candidature has been withdrawn under Regulation 58 and shall endorse on each nomination paper his decision accepting or rejecting it and if rejects it, he shall record in writing a brief statement of his reasons for so rejecting it and shall communicate the same by registered post to the candidate concerned.

(2) The Secretary may refuse or reject any nomination if he is satisfied:

(a) that the candidate was ineligible to stand for election;

(b) that the proposer or seconder was not qualified to subscribe to the nomination of the candidate in Form K;

(c) that there has been a failure to comply with any of the provisions of Regulation 57;

(d) that the signature of any candidate or of the proposer or seconder is not genuine or has been obtained by force or fraud;

(e) that the candidate or the proposer or seconder has not paid any of the fees due and payable to the Council for and in respect of the year preceding the year in which the election is held; or

(f) that on the date of security of the nomination the name of the candidate or the proper or seconder stands removed from the Register of Members:

PROVIDED that nothing contained in clause (b), (c), (d), (e) or (f) shall be deemed to authorise the refusal or rejection of the nomination of any candidate on the ground of any irregularity in respect of a nomination of the candidate if he has been duly and validly nominated by means of the another nomination in respect of which no irregularity has been committed.

60. Appeal

(1) A candidate whose nomination has been refused or rejected by the Secretary, or a candidate who is of the opinion, and holds evidence to establish, that a nomination of another candidate in his constituency has been wrongfully accepted by the Secretary as valid, may, within fifteen days from the date on which such rejection, refusal or acceptance of nominations is communicated to the candidates concerned, prefer an appeal to the President against such refusal or rejection or acceptance. The appeal shall be heard by a Committee appointed by the Council of this purpose which shall be known as Appeal Committee. The Appeal Committee shall comprise of three person from out of a panel of names, no exceeding eight, chosen in order of preference to be approved for the purpose by the Council. The persons to be appointed on the Appeal Committee need necessarily be members of the Institute. No persons shall, however, be appointed on the Appeal Committee if he is a candidate standing for election or any of his near relatives has filed nomination for election.

Explanation: The expression "near relative" shall mean and include father, mother, husband, wife, son, daughter, first brother, or first sister.

(2) The Appeal Committee so appointed shall have powers to inspect any document, examine any witness, record any evidence, receive affidavits and grant adjournments and shall exercise much other powers as may be necessary for efficient and faithful performance of the duties. The decision of the Appeal Committee shall be final.

(3) If, on an appeal, the decision of the Secretary in rejecting or refusing a nomination is reversed by the Appeal Committee, the award of the Appeal Committee shall be extended to such other nominations, as may be specified by the Appeal Committee, which had previously been rejected or refused by the Secretary on the same or similar grounds, even though no appeal had been preferred in respect of those other nominations. If, however, the decision of the Secretary in accepting a nomination as valid is reversed on appeal, the award of the Appeal Committee shall not be extended to similar other cases of acceptances unless appeal against those acceptances had been preferred.

61. List of valid nominations

(1) On completion of the scrutiny of nominations as provided under Regulation 59, the Secretary shall forthwith prepare a list of valid nominations for the constituency and cause such list to be sent by registered post to each candidate in that constituency whose nomination has been accepted as valid. The list shall contain the full names in alphabetical order and the addresses of the validly nominated candidates in the constituency.

(2) If a candidate dies or otherwise ceases to be a member before the date or dates of polling fixed for the election but after the date fixed for the withdrawal of candidature under regulation 58 and his nomination is or has been accepted as valid, the election in his constituency shall be conducted among the remaining candidates and no fresh proceedings with reference to the election of members in the constituency in which such member was a candidate shall be commenced.

62. Candidates deemed to be elected if their number is equal to or less than the number of persons to be elected

If the number of candidates validly nominated in any constituency is equal, or becomes, by reason of the death or cessation of membership of one or more candidates before the counting of votes for the election, equal to or less than the number of persons to be elected for such constituency, then such candidates shall be deemed to be elected and the Secretary shall declare all such candidates duly elected; and where the number of such candidates in that constituency is less than the number of persons to be elected for that constituency, the Secretary shall commence fresh proceedings for the election of the remaining number of members to be elected from that constituency.

63. Admissible number of votes to each voter

Each voter shall have one vote only. A voter in giving his vote-

(a) must place on his ballot paper the figure l in the square opposite the number of the candidate for whom he votes, and

(b) may in addition, place on his ballot paper the figure 2 or the figure 2 and 3 or 2,3, and 4 and so on, in the squares opposite the names of other candidates in the order of his preference.

63A. Mode of elections

Except as otherwise provided, the elections shall be conducted by poll and every vote in any election, shall cast his vote personally in the booth provided for the purposes, unless a voter is allowed in respect of any election to cast his vote by post as hereinafter provided.

63B. Polling booths

The Secretary shall set up such number of polling booths at such places as he deems necessary, provided that, within an area covered by a radius of eight kilometers from each booth, there are not less than fifteen members according to their professional address as given in the list of members eligible to vote.

63C. Polling officer

The Secretary shall appoint a polling officer for each polling booth and may also appoint such other persons as he may deem necessary to assist the polling officer. The polling officer shall, in addition to performing any other duties imposed upon him by these Regulations be in general charge of all arrangements at the polling booth and may issue orders as to the manner in which persons shall be admitted to the polling booth and generally for the preservation of peace and order at or in the vicinity of the polling booth.

63D. Secret chamber and ballot paper

(1) There shall be a secret chamber or chambers in each polling booth and such chamber shall be so arranged that where a voter records his votes on the ballot paper, no other person can see how he has voted.

(2) The ballot paper shall contain a list of candidates standing for election in an constituency and shall bear the seal of the Council.

63E.Presence of candidates at polling booths

Any candidate for election in a constituency shall be entitled to be present at the pooling booths in that constituency and to appoint not more than two members for each polling booth as his authorised representatives to be present on his behalf at the polling booths in that constituency:

PROVIDED that the candidate shall send to the Secretary by name so as to reach him at least thirty days before the date fixed for the poll at that constituency an intimation by registered post of his intention to appoint such authorised representatives for the purpose, clearly indicating the full name, membership number and address of each of the authorised representatives and the number of the polling booth at which each of them will be present:

PROVIDED FURTHER that not more than one authorised representative shall be present at a time at each polling booth.

63F. Voting to be in person and not by proxy

Voting shall be by ballot and every person entitled to record his vote by ballot and wishing to record his vote, shall do so in person and not by proxy.

63G. Identification of voters

(1) The polling officer may employ at the polling booth such persons as he thinks fit to assist him in identifying the voters or for any other purpose.

(2) At any time before a ballot paper is delivered to a voter, the polling officer may of his own accord, if he has reason to doubt the identity of the voter or his right to vote at the polling booth, and shall, if so required by a candidate or his authorised representatives, put to the voter such questions as he may deemed necessary with a view to establishing the identity of that voter.

(3) Every voter shall be required to sign the marked copy of a signature form provided by the Secretary.

(4) If the polling officer is not satisfied as to the identity of the person claiming to be a voter, he may refuse to allow such person to vote in the election.

63H. Record to be kept by polling officer

(1) The polling officer shall at the time of delivery of the ballot paper place against the name of the voter in the list of members eligible to vote a mark to denote that the voter has received a ballot paper. he shall also keep a record of the ballot papers supplied to the voters in such manner as the Secretary may direct.

(2) In deciding the right of a person to obtain a ballot paper under this Regulation, the polling officer at any polling booth may interpret any entry in the list of members eligible to vote so as to overlook merely clerical or printing error, provided that he is satisfied that such person is identical with the voter to whom such entry relates.

63-I. Manner of recording of votes after receipt of ballot paper

On receiving the ballot paper the voter shall forthwith proceed into the Secret chamber set apart for the purpose and shall record his votes on the ballot paper in the manner specified in Regulation 63. He shall thereafter fold the ballot paper, leave the secret chamber and insert the ballot paper in the ballot box provided for the purpose in presence of the polling officer. The ballot box should be so constructed that a ballot paper can be inserted thereinto during the poll but cannot be withdrawn therefrom without the box being unlocked or the seals being broken.

63J. Return of ballot paper by a voter

(1) If a voter after obtaining a ballot paper for the purpose of recording his votes decides not to use the same, he shall return the ballot paper to the polling officer and the ballot paper so returned shall then be marked as 'cancelled-returned' and kept in a separate envelope set apart for the purpose and a record shall be kept by the polling officer of all such ballot papers.

(2) If any ballot paper which has been issued to a voter for the purpose of recording his votes, is found left by the voter at the secret chamber at the end of the day when the polling officer inspects the secret chamber, whether votes have been recorded in it or not, it shall be dealt with in accordance with the provisions of sub-regulation (1) as if it had been returned to the polling officer.

63K. Hours of polling

(1) Every polling booth shall be kept open on the day or days appointed for recording of votes from 8.30 hours to 18.30 hours.

(2) If the polling at any polling booth cannot take place on the day or days appointed for recording of votes, or is interrupted or obstructed for any sufficient cause, or the ballot box used at a booth is tampered with or is accidentally or deliberately destroyed, lost or damaged, the polling officer or the Secretary, as the case may be, may adjourn the polling to a subsequent date, or the Secretary may declare the polling at the booth void and decide to have a fresh polling, respectively.

(3) If a polling is adjourned or declared void under sub-regulation (2), the Secretary shall, as soon as may be possible, appoint the place where the polling shall be subsequently conducted and the time, date or dates, as the case may be, for the said polling booth. Also he shall not proceed with counting of votes relating to the election in a constituency, until the polling at all the polling booths in that constituency has been completed.

(4) The place, date or dates and the time of polling appointed under sub-regulation (3) shall be notified individually to the candidates and to the voters concerned.

(5) The polling officer shall close the polling booth at the end of the day, or if the polling is for more than one day, at the end of each day, at the hour appointed under sub-regulation (1) and no voter shall be admitted thereto after that hour:

PROVIDED that all voters present within polling booth before it is closed, shall be entitled to have their votes recorded:

PROVIDED FURTHER that where the number of voters within a radius of eight kilometers at any polling booth exceeds 300, the polling booth shall be kept open for two consecutive days during the same timings as mentioned in sub-regulation (1).

(6) The polling officer shall, as soon as practicable after the close of the poll or after its close on each day if the polling is for more than one day, in the presence of any candidates or their authorised representatives who may be present, seal the ballot box within his own seal and the sales of such candidates or authorised representatives as may desire to affix their seals thereon. He shall also make separate packets of:

(i) the unused ballot papers;

(ii) the returned ballot papers;

(iii) the marked copy of the list of members eligible to vote; and

(iv) any other paper directed by the Secretary to be kept in a sealed cover;

and seal each such packet with his own seal and the seals of such candidates or authorised representatives as may desire to affix their seals thereon. He shall arrange for the safe custody of the ballot box and such packets.

(7) Before commencement of polling on the second day, wherever the polling is to take place for more than one day, the polling officer shall, after the seals on the ballot box and packets referred to in sub-regulation (6) are examined by him and by the candidates or their authorised representatives who may be present, remove in their presence the seals on the ballot box and packets for use during the course of that day.

(8) The ballot box and packets referred to in sub-regulation (6) shall be accompanied by an account of ballot papers showing the total number of ballot papers received, issued, unissued and returned, as also the number of ballot papers which should be found in the ballot box. This account shall be forwarded to the Secretary by the polling officer.

63L.Transport of ballot papers and their custody

The Secretary and the polling officers shall make adequate arrangements for safe custody of the ballot papers and for safe transport to the headquarters of the Institute of all packets or boxes and other papers referred to in Regulation 63k. The Secretary shall also be responsible for their safe custody until the commencement of counting of votes.

63M. Voting by members employed on duty at polling booth

The polling officer, the persons appointed by the Secretary to assist the polling officer, or the authorised representatives referred to in Regulation 63E, who are voters for any constituency and who by reason of their being on duty at a polling booth, are unable to be present and to vote at the polling booth where they are entitled to vote, may send to the Secretary by name so as to reach him at least thirty days before the date fixed for the poll at the constituency, application for permission to vote at the polling booth where they will be on duty. If the Secretary is satisfied that the claim is just, he may, notwithstanding anything contained in this Chapter, allow the application and permit the voter to vote at the polling booth where he will be on duty to act as polling officer or to assist the polling officer or as authorised representative of a candidate:

PROVIDED that such permission shall not be granted to more than one authorised representative of a candidate in respect of each polling booth, such authorised representative being specifically nominated for the purpose by the candidate himself.

63N. Eligibility to vote by post

Every member whose name is included in the list of members eligible to vote published under the provisions of sub-regulation (1) of Regulation 56 and whose name is not attached to any polling booth and every member who is residing outside India, shall, notwithstanding anything contained in this Chapter, be entitled to vote by post:

PROVIDED that a member who is entitled to vote by poll may be allowed at the discretion of the Secretary to vote by post if by reason of there being a permanent change in his address from the address published in the list of members eligible to vote to another village, town or city beyond a radius of eight kilometers, he is unable to exercise his vote by poll at the polling booth allotted to him. Application in this behalf, with proper verification of the contents of the application by the member concerned, should be sent to the Secretary by name so as to reach him at least 30 days before the date of polling. Any misuse of this concession, or any misstatement of false verification in this behalf will render the member concerned liable for disciplinary action under Regulation 70:

PROVIDED FURTHER that a member who is actually residing beyond a radius of eight kilometers from the polling booth allotted to him on the basis of his professional address may at the discretion of the Secretary also be given the concession provided in the foregoing proviso on the same terms and conditions.

64. Eligibility to vote by poll by a voter entitled to vote by post

A voter entitled to vote by post under Regulation 63N may however be allowed by the Secretary to vote by poll at any particular polling booth to be specified by him within his regional constituency, provided he makes an application to that effect in writing duly addressed and forwarded to the Secretary by name by registered post so at to reach him at least 45 days before the date of polling.

65. Ballot papers to be sent by post

At least 21 days before the date for starting of counting of votes, the Secretary shall send by registered post to the address of voter entitled to vote by post under Regulation 63N, the ballot paper together with a letter explaining the manner in which it shall be filled up, and specifying the date and hour by which it must reach the Secretary.

65A. Ballot papers to be returned after recording votes thereon

Every voter on receiving his ballot papers sent under Regulation 65 shall, if he desires to vote at the election, record his votes thereon in the manner specified in Regulation 63 and then send it to the Secretary by name and by registered post so as to reach him before 3.00 p.m. on the date fixed in this behalf. A voting paper not addressed to the Secretary by name and not delivered by registered post shall be disregarded.

Explanation: For the purpose of this Regulation if voting papers relating to two or more members are posted in one and the same envelope, all such voting papers shall be disregarded.

65B. Issue of undelivered and fresh ballot papers

When a ballot paper and other connected papers sent by post under Regulation 65 are lost or damaged in transit or for any reason returned undelivered, the Secretary may reissue them by registered post or deliver them or cause them to be delivered to the voter on his applying for the same, if the Secretary is satisfied with the reasons for such loss, damage or return of the ballot paper and other connected papers.

65C. Grounds for declaring ballot papers invalid

A ballot paper shall be invalid if-

(a) a voter signs his name or writes any word or figures or makes any marks on it by which the ballot paper becomes recognisable, or by which the voter can be identified; or

(b) it does not bear the seal of the Council; or

(c) the figure 1 is not marked in the square opposite the name of any of the candidates; or

(d) the figures 1 is set opposite the names of more than one candidate; or

(e) the figure 1 and some other figure are set opposite the name of the same candidate; or

(f) it is unmarked or void for uncertainty.

66. Definitions

In this Chapter, unless there is anything repugnant in the subject or context-

(a) 'continuing candidate' means any candidate not elected and not excluded from the poll at any given time;

(b) 'first preference' means the figure 1; 'second preference' means the figure 2, and 'third preference' means the figure 3, set opposite the name of any candidate, and so on;

(c) 'unexhausted paper' means a ballot paper on which a further preference is recorded for a continuing candidate;

(d) 'exhausted paper' means a ballot paper on which no further preference is recorded for a continuing candidate, provided that a ballot paper shall also be deemed to be exhausted in any case in which-

(i) the names of two or more candidates, whether continuing or not, are marked with the same figure and are next in order of preference; or

(ii) the name of the candidate next in order of preference, whether continuing or not, is marked by a figure not following consecutively after some other figures on the ballot paper or by two or more figures;

(e) 'original vote' in regard to any candidate means a vote derived from a ballot paper on which a first preference is recorded for such candidate;

(f) 'transferred vote' in regard to any candidate means a vote, the value or part of the value of which is credited to such candidate and which is derived from a ballot paper on which a second or subsequent preference is recorded for such candidate;

(g) 'surplus' means the number by which the value of the votes of any candidate, original or transferred, exceeds the quota.

66A. Appointment of time for counting of votes

The Secretary shall appoint the time for counting of votes on each date at the headquarters of the Institute and shall give notice of such time in writing to all candidates.

67. Counting of votes

(1) On the date at the time and place appointed under Regulation 66A, the Secretary shall for purposes of counting of votes in respect of a constituency-

(a) open the covers containing the postal ballot papers received by him under Regulation 65A, and shall take out the ballot papers from each such cover, record the number thereof in a statement and make a separate packet of such ballot papers;

(b) allow the candidates or their authorised representatives present at the counting an opportunity to inspect the ballot boxes and packets received from the polling officers and their seals for satisfying themselves that they are in order; and

(c) proceed as follows:

If he is satisfied that the ballot boxes and packets which have been received are in order, he shall take up the counting of the ballot papers contained in the ballot boxes. If he finds that any of the ballot boxes has been tampered with, he shall not count the ballot papers contained in such box for purposes of election. He shall, however, keep a record of such ballot papers for purposes of election petitions, if any.

He shall open the ballot boxes found to be in order, take out the ballot papers therefrom, count them and keep a record of their number in a statement. To these he shall add the postal ballot papers. He shall then examine the ballot papers and reject those which are invalid. He shall thereafter divide the valid ballot papers into parcels according to the first preference recorded for each candidate and count the number of papers in each parcel.

(2) In carrying out the Regulations hereinafter contained, the Secretary shall-

(a) disregard all fractions, and

(b) ignore all preferences recorded for candidates already elected or excluded from the poll.

(3) For the purpose of facilitating the processes prescribed by the Regulations hereinafter contained, each valid paper shall be deemed to be the value of one hundred.

(4) The Secretary shall add together the values of the papers in all the parcels and divide the total by a number exceeding by one the number of vacancies to be filled and the result increased by one shall be the number sufficient to secure the return of a candidate (hereinafter called the quota).

(5) If at any time a number of candidates equal to the number of persons to be elected has obtained the quota, such candidates shall be declared elected, and no further steps shall be taken.

(6) Any candidate, the value of whose parcel, on the first preference being counted, is equal to or greater than the quota, shall be declared elected. If the value of the papers in any such parcel-

(a) is equal to the quota the papers shall be set aside as finally dealt with;

(b) is greater than the quota the surplus shall be transferred to the continuing candidates indicated on the voting papers as next in the order of the voters' preference in the manner prescribed in the following sub-regulations.

(7) If and whenever as the result of any operation prescribed by these Regulations a candidate has a surplus, that surplus shall be transferred in accordance with the provisions of this sub-regulation:

(a) If more than one candidate has a surplus, the largest surplus shall be dealt with first and the others in order of magnitude:

PROVIDED that every surplus arising on the first counting of votes shall be dealt with before those arising on the second counting and so on.

(b) Where two or more surpluses are equal, the Secretary shall decide, as hereinafter provided, which shall first be dealt with.

(c) If the surplus of any candidate to be transferred arises from original votes only, the Secretary shall examine all the papers in the parcel belonging to the candidate whose surplus is to be transferred, and divide the unexhausted papers into sub-parcels according to the next preferences recorded thereon. He shall also make a separate sub-parcel of the exhausted papers. He shall then ascertain the value of the papers in each sub-parcel and of all the unexhausted papers. If the value of the unexhausted papers-

(i) is equal to or less than the surplus, he shall transfer all the unexhausted papers at the value at which they were received by the candidate whose surplus is being transferred.

(ii) is greater than the surplus, he shall transfer the sub-parcel of unexhausted papers, and the value at which each paper shall be transferred shall be ascertained by dividing the surplus by the total number of unexhausted papers.

(d) If the surplus of any candidate to be transferred arises from transferred as well as original votes, the Secretary shall re-examine all the papers in the parcel last transferred to the candidate, and divide the unexhausted papers into sub-parcels according to the next preferences recorded thereon. He shall thereupon deal with the sub-parcels in the same manner as is provided in the case of the sub-parcels referred to in clause (c).

(e) The papers transferred to each candidate shall be added in the form of a sub-parcel to the papers already belonging to such candidate.

(f) All papers in the parcel or sub-parcel of an elected candidate not transferred under this sub-regulation shall be set aside as finally dealt with.

(8) If after all surpluses have been transferred, as hereinbefore provided, less than the number of candidates required had been elected, the Secretary shall exclude from the poll the candidate lowest on the poll and shall proceed as follows:

(a) He shall distribute the unexhausted papers of the excluded candidate among the continuing candidates according to the next preferences recorded thereon. Any exhausted papers shall be set aside as finally dealt with.

(b) The papers containing original votes of an excluded candidate shall first be transferred, the transfer value of each being one hundred.

(c) The papers containing transferred votes of an excluded candidate shall then be transferred in the order of the transfers in which and at the value of which he obtained them.

(d) Each of such transfers shall be deemed to be a separate transfer.

(e) The process prescribed by this sub-regulation shall be repeated on the successive exclusions one after another of the candidates lowest on the poll until the last vacancy is filled either by the election of a candidate with the quota or as hereinafter provided.

(9) If as the result of a transfer under these Regulations the value of the votes obtained by a candidate is equal to or greater than the quota, the transfer then proceeding shall be completed, but no further papers shall be transferred to him.

(10) If after the completion of any transfer under these Regulations the value of the votes of any candidate shall be equal to or greater than the quota he shall be declared elected. If the value of the votes of any such candidate-

(a) shall be equal to the quota, the whole of the papers on which such votes are recorded shall be set aside as finally dealt with;

(b) shall be greater than the quota, his surplus shall thereupon be distributed in the manner hereinbefore provided, before the exclusion of any other candidate.

(11) When the number of continuing candidates is reduced to the number of vacancies remaining unfilled, the continuing candidates shall be declared elected. When only one vacancy remains unfilled and-

(a) if the value of votes of some one continuing candidate exceeds the total value of all the votes of the other continuing candidates together with any surplus not transferred, that candidate shall be declared elected;

(b) if there are only two continuing candidates, and those two candidates have each the same value of votes and no surplus remains capable of transfer, one candidate shall be declared excluded under the next succeeding sub-regulation and the other declared elected.

(12) If, when there is more than one surplus to distribute, two or more surpluses are equal, or if at any time it becomes necessary to exclude a candidate and two or more candidates have the same values of votes and are lowest on the poll, regard shall be had to the original votes of each candidate and the candidates for whom fewest original votes are recorded shall have his surplus first distributed, or shall be first excluded, as the case may be. If the values of their original votes are equal the Secretary shall decide by lot which candidate shall have his surplus distributed or be excluded.

68. Appointment of scrutinizers

The Secretary shall appoint not more than four persons who are neither members of the Council nor candidates for election to act as scrutinizers of the voting papers and to assist the Secretary generally in counting the vote.

68A. Presence for candidate at the time of counting votes

Any candidate for election shall be entitled to be present in person or to appoint a member of the Institute as a representative to be present on his behalf at the time of counting of votes.

69. Notification of the declaration of results

The names of all candidates declared elected shall be notified by the Council in the Journal of the Institute.

69A. Saving

(1) The decision of the Secretary shall be final in all matters not only in regard to the application of any of the provisions of he Regulations contained in this Chapter but also in respect of all other matters not specifically covered by these provisions

(2) No election shall be deemed to be invalid merely because of the accidental omission to send, or delay in sending, a ballot paper to a voter, or the accidental non receipt of, or delay in receiving, a ballot paper by a voter or any other accidental irregularity or informality in the conduct of the election.

70. Disciplinary action against member in connection with conduct of elections

A member of the Institute shall be liable for disciplinary action by the Council if he adopts one or more of the following practices with regard to the election to the Council, namely:

(1) Bribery, that is to say, any gift, offer or promise by a candidate or by any other person with the connivance of a candidate, of any gratification to a person whomsoever, with the object, directly or indirectly, of inducing-

(a) a member to stand or not to and as; or to withdraw from being, a candidate at an election; or

(b) a voter to vote or refrain from voting at an election, or as a reward to-

(i) a member for having so stood or not stood, or for having withdrawn his candidature; or

(ii) a voter for having voted or refrained from voting.

Explanation: For the purposes of this clause the term "gratification" is not restricted to pecuniary gratifications or gratifications estimable in money, but includes all forms of entertainment and all forms of employment for reward; but it does not include the payment of any expenses bona fide incurred at, or for the purpose of, any election.

(2) Undue influence, that is to say, any direct or indirect interference or attempt to interfere on the part of a candidate or of any other person with the connivance of the candidate with free exercise of any electoral right:

PROVIDED that a declaration of policy or a promise of a particular action or the mere exercise of a legal right without intent to interfere with an electoral right shall not be deemed to be interference within the meaning of this clause.

(3) The publication by a candidate or by any other person with the connivance of the candidate of any statement of fact which is false, and which he either believes to be false or does not believe to be true, in relation to the personal character or conduct of any candidate, or in relation to the candidature or withdrawal of any candidate, being a statement reasonably calculated to prejudice the prospects of that candidate's elections.

(4) The obtaining or procuring or abetting or attempting to obtain or procure by a candidate or by any other person with the connivance of a candidate, any assistance for the furtherance of the prospects of the candidate's election from any person serving under the Government of India or the government of any State other than the giving of vote by such person, if he is a member of the Institute entitled to vote.

(5) The hiring or procuring, whether on payment or otherwise, of a vehicle by a candidate or by any other person with the connivance of a candidate, for the conveyance of voters.

(6) The canvassing for votes, or soliciting the vote of any other, or persuading any voter not to vote for any particular candidate, or persuading any voter not to vote at the election, or exhibiting any notice or sign board (other than an official notice) relating to the election, by a candidate or by any other person with the connivance of a candidate within a distance of 200 meters from a polling booth.

(7) Any act specified in clauses (1) to (6), when done by a member of the Institute who is not a candidate or a member acting with the connivance of a candidate

(8) The receipt of, or agreement to receive, any gratification whether as a motive or a reward-

(a) by a member for standing or not standing as, or withdrawing from being, a candidate; or

(b) by any member whomsoever for himself or any other person for voting or refraining from voting, or for inducing or attempting to induce any voter to vote or refrain from voting, or any candidate to withdraw his candidature.

(9) Contravention or misuse of any of the provisions of this Chapter or making any false statement knowing it to be false or without knowing it to be true while complying with any of the provisions of this Chapter.

70A. Dispute regarding election

(1) On receipt of an application under sub-section (2) of section 10 of the Act, the President shall refer the matter to the Tribunal within thirty days of the receipt of the application.

(2) At the time of giving its decision, the Tribunal shall also pass an order in regard to the costs. If the Tribunal satisfied that an application made under sub-section (2) of section 10 of the Act was not founded on a valid ground, the Tribunal may award the costs to the Institute.

CHAPTER VIII : MEETINGS AND PROCEEDINGS OF THE COUNCIL

71. Meetings of the Council

The Council shall meet at least once in every six months at such time and place as the President may determine.

72. Notice of Council meeting

Notice of the time and place of an intended meeting shall be sent to the registered address of every member of the Council not less than twenty-one days before such meeting and such notice shall so far as practicable contain a statement of the business to be transacted at such meeting, provided that in the case of a special meeting, the President may inform the members of the subject-matter for discussion at the meeting.

(2) Notwithstanding any thing contained in sub-regulation (l), the President may call an extraordinary meeting of the Council in any emergency, giving such shorter notice as circumstance may permit.

73. Special meetings of Council

A special meeting of the Council may, at any time, be called by the President or in his absence by the Vice-President, or at the request in writing addressed to the Secretary by at least 26 per cent of the members of the Council for the time being.

73A. Postponement of meetings

Any meeting of the Council, which is called to be held on a particular date or dates, may be postponed by the President to a subsequent date or dates, if in his opinion, such postponement is warranted, which may also include change of time and place of the meeting. Notice of the postponed meeting shall be sent to the registered address of every member of the Council not less than seven days before such postponed meeting. The business to be transacted at the postponed meeting shall be same as was intended for the original meeting, unless any other business is admitted by the Chairman of the postponed meeting.

74. Chairman of Council

At all meetings of the Council, the President, or in his absence the Vice-President, shall be the Chairman, or, in the absence of both, the Chairman shall be elected from among those present:

PROVIDED that, at the first meeting of any Council, the President of the outgoing Council, or in his absence its Vice-President, shall act as the Chairman until such time as a President is elected under the provisions of sub-section (1) of section 12.

75. Quorum at meeting

(1) One-third of the total number of members of the Council shall constitute the quorum for a meeting.

(2) If, at the time appointed for a meeting, a quorum is not present, and if a quorum is not present on the expiration half an hour from the time appointed for the meeting, the meeting shall stand adjourned to such future date as the President may appoint:

PROVIDED that, where a meeting has been adjourned for want of quorum, any business which was intended to be transacted at the original meeting may be transacted at such adjourned meeting notwithstanding that there is no quorum.

76. Passing of resolution at meeting

At all meetings of the Council, in the event of a difference of opinion, the vote of the majority shall prevail unless otherwise required by the Act or these Regulations, and in case of equality of votes, the Chairman shall have a casting vote in addition to his original.

77. Adjournment of meeting of Council

Subject to the Provisions of these Regulations, the Chairman of any meeting of the Council may, with the consent of the meetings, adjourn the meeting from time to time and from place to place but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. No notice needs be given of an adjourned meeting unless it be so directed in the resolution for adjournment.

78. Record of minutes

Minutes shall be kept of all resolutions and proceedings of the meetings of the Council, which shall be approved by the members and signed by the Chairman of the meeting.

79. Passing of resolution by circulation

(1) The President may, in emergent cases, circulate papers among the members of the Council for decision of any question:

PROVIDED that, where four members of the Council require that any question should be decided at a meeting, the President shall withdraw the papers from circulation and have the question decided at a meeting of the Council.

(2) Where the papers relating to any question are circulated among the members, a period of ordinarily not less than ten days, commencing from the date of circulation of the papers shall elapse before any decision is arrived at on the question.

(3) Every resolution passed by circulation of papers shall be communicated to all the members of the Council.

CHAPTER IX : STANDING AND OTHER COMMITTEES

80. Time and place of meeting

(1) The Chairman of a Committee may at any time and shall, on written requisition of any two members of the Committee, call a meeting of the Committee.

(2) The meeting of a Committee shall be held at such place and at such time as its Chairman may direct.

(3) A notice of not less than seven days of every such meeting shall ordinarily be given to every member of the Committee.

(4) Any meeting of a Committee which is called to be held on a particular date or dates may be postponed by the Chairman or the Committee to a subsequent date or dates, if, in his opinion, such postponement is warranted, which may also include changes of time and place of the meeting. Notice of the postponed meeting shall be sent to the registered address or every member of the Committee not less than seven days before such postponed meeting. The business to be transacted at the postponed meeting shall be same as was intended for the original meeting, unless any other business is admitted by the Chairman of the postponed meeting.

81. Quorum

(1) No business shall be transacted at a meeting of a Committee unless there are present at least three members in the case of the Executive Committee, and two members in other cases, including the Chairman, provided that in the case of Committees formed under sub-section (2) of section 17 the Council shall determine the quorum for the Committee.

(2) In the event of there being no quorum within half an hour of the time fixed for the meeting, the meeting shall stand adjourned to a date, time and place specified by the Chairman of the Committee:

PROVIDED that, where a meeting of a Committee has been adjourned for want of a quorum, any business which was intended to be transacted at the original meeting may be transacted at such adjourned meeting, notwithstanding that these is no quorum.

82. Procedure for transaction of business

(1) The business of a Committee shall ordinarily be transacted at meeting of the Committee, provided that the Chairman may in emergent cases circulate papers among the members of the Committee for the decision of any question:

PROVIDED FURTHER that, where any two members of the Committee require that any question should be decided at a meeting, the Chairman shall withdraw the papers from circulation and have the question determined at a meeting of the Committee.

(2) When the papers relating to any question are circulated among the members, a period of not less than ten days, commencing from the date of circulation of the papers shall elapse before any decision is arrived at on the question.

(3) Every resolution passed by circulation of papers shall be communicated to all the members.

83. Casting vote

All questions before a Committee shall be decided by a majority of votes. In the event of equality of votes, the Chairman shall have a casting vote.

84. Minutes

(1) The Secretary of the Council shall be the Secretary for each Committee, unless the Council otherwise directs.

(2) The Secretary shall maintain a record of all the business transacted by the Committee either the circulation of papers or at a meeting of the Committee.

85. Executive Committee

The Executive Committee shall perform the following functions, namely:-

(a) maintenance of the office of the Council and for this purpose the Executive Committee may employ, suspend, discharge or re-employ the necessary staff on such terms and conditions as it may deem fit;

(b) maintenance of proper accounts of all receipts and payments on behalf of the Council and the matters in respect of which receipts and payments take place and of all the property, securities, debts, funds and liabilities of the Institute;

(c) maintenance of the Register of Members of the Institute, and all other statutory Registers which are prescribed by the Act or these Regulations from time to time;

(d) control and custody of the property, assets and funds of the Institute;

(e) investment of the surplus funds of the Institute in Government securities approved by the Council or other securities approved by the Central Government, and to vary such investments from time to time;

(f) disbursements from the funds of the Institute for expenditure both revenue and capital within the estimates previously sanctioned by the Council:

PROVIDED that, in emergent cases, expenditure in excess of the estimates previously sanctioned by the council may be incurred by the committee but such excess expenditure should be brought to the notice of the council at its next meeting; and

(g) enrollment of associates, admission of fellows, removal and restoration of names of members, cancellation of Certificate of Practice, issue of Certificates of Membership, prosecution of members on the findings of the Council, granting permissions for Cost Accountants in practice or firms of such Costs Accountants to have a branch office in India without being in separate charge of a member of the Institute until the Council decides the matter and publication of list of members.

86. Examination Committee

(1) The Examination Committee shall exercise all the functions of the Council in regard to holdings of the examinations, admissions thereto, appointment and selection of examiners, and declaration of results and other connected matters. It shall also have full powers to fix the remunerations of the examiners, assistant examiners, superintendent of examinations and others, and deal with other matters arising out of the holding of examinations.

(2) The Examination Committee shall be responsible for the maintenance of proper standard of conduct at the examinations.

87. Training and Educational Facilities Committee

The Training and Educational Facilities Committee shall perform the following functions, namely:-

(a) Registration of students.

(b) Maintenance of the Register of students, and such other registers as may be prescribed.

(c) Provision of proper facilities to Registered Students to obtain coaching in the subjects in which they are to be examined by the Council.

(d) Arrangements for the training of candidates sent by any Department of the Central or any State Government, Chamber of Commerce or any other public or private organisation and to do all things in connection therewith.

(e) Purchase of books, magazines, equipments and the like for the Library and arranging for its proper running and maintenance.

(f) Suggesting to the Council from time to time modifications to the existing syllabi for the qualifying examinations of the Institute and recommending suitable books for the guidance of candidates.

87A. Professional Development Committee

The Professional Development Committee shall perform the following functions, namely:

(1) Maintaining contacts with the various departments of the Central and State Governments and other public and privates bodies with a view to enlisting their support in the furtherances of the interest of the members of the Institute;

(2) Making representations to the Central and State Governments in connection with matters of professional and business interest with a view to raising the standard and status of the profession;

(3) Arranging for intercourse among the members of the Institute by regular meetings, conferences, seminars, talks and lectures for the acquisition and dissemination of useful information in connection with the profession of accountancy;

(4) Propagating amongst the members of the Institute the advisability and the necessity of observing the rules of professional etiquette and the provisions of the Act and the Regulations;

(5) Publication, issue and circulation of books, pamphlets and other literatures on matters of professional interest except Journal and research publications;

(6) Offering suggestions to the Council for amendment of various Acts, both Central and State, for betterment of the profession;

(7) Doing such things as may be considered necessary for general upliftment of the status of the Institute and the profession of cost accountancy and all other things which are incidentals or conducive to the attainment of the above objectives.

87B. Research and Publications Committee

The Research and Publications Committee shall perform the following functions, namely:-

(1) Carrying out research work on costing and allied subjects and giving guidance in and encouragement of research by members in various topics of interest to the profession;

(2) Publication of research pamphlets and other literature on behalf of the Institute subject to approval of the Council;

(3) Making recommendations to the Council on any or all matters relating to research and publications;

(4) Engagement of research personnel and in case of remunerated posts, subject to the sanction of the Council;

(5) Incurring expenses within the limits previously sanctioned by the Council for the performance of the above functions;

(6) Carrying out such other functions as may be entrusted from time to time by the Council.

87C. Journal Committee

The Journal Committee shall be responsible for the publication of the Journal which shall be the official organ the Institute and for the maintenance of its proper standard and shall perform all the functions in connection therewith.

88. Council's power of review not affected

Nothing in this Chapter shall affect the power of the Council to review any decision of any Standing or other Committee.

CHAPTER X : MISCELLANEOUS

89. Location of the office of the Council

The headquarters of the Council shall be located at Calcutta.

90. Administration of the Institute

The Council shall be in charge of the administration of the Institute and the Regional Councils.

91. Custody of Common Seal

The Common Seal of the Institute shall be in the custody of the Secretary.

92. Affixing of Common Seal

All instruments on which the Common Seal is required to be affixed by or under any law shall be so affixed and countersigned by the Secretary.

93. Maintenance of accounts

It shall be the duty of the Secretary to maintain or cause to be maintained proper accounts of the receipts and expenditure of the Institute.

94. Audit of accounts

The Council, not less than two months before the date of each Annual Meeting, shall deliver to the auditors the accounts of the last year and the auditors shall examine such account and report thereon, not less than one month before the date of the meeting. The auditors shall be entitled to ask for any information or explanation regarding the accounts from the Secretary and such information or explanation shall be supplied to them in so far as may be available at the time.

95. Appointment of auditors

The. auditors shall be elected at the Annual Meeting of the Council from among candidates who have been duly nominated by two members of the council; each such information shall be signed by the members nominating and by the candidate, and shall be deposited at the office of the Council at least three days before the meeting. The auditors who are in office shall be deemed to be nominated at each Annual Meeting unless they have intimated to the Secretary their desire not to be re-elected.

96. Auditors

The Council shall determine the remuneration, if any to be paid to the auditors elected at the Annual Meeting. In the event of any vacancy occurring in the office of auditor between two Annual Meetings or in the event of a vacancy not being filled up at any Annual Meeting the said vacancy may be filled up by the Executive Committee and a person so becoming an auditor shall hold office until the next Annual Meeting, but shall be eligible for election:

PROVIDED that during the period of such vacancy the continuing auditor, if any, may act alone.

97. Retirement of auditors

The auditors shall retire at the Annual Meeting of the Council next after the meeting at which they were elected, but shall be eligible for re-election.

98. Powers and duties of the President and Vice-President

The President shall exercise such powers and perform such duties as are conferred or imposed on him by the Act or these regulations, or as may be delegated to him by the Council from time to time.

The President may direct any business to be brought before the Council or any Committee for consideration.

If the office of the President is vacant or if the President for any reason is unable to exercise the powers or perform the duties of his office, the Vice-President shall act in his plea and shall exercise the powers and perform the duties of the President.

99. Powers and duties of the Secretary

Subject to the general supervision of the President and the Committee concerned, the Secretary shall exercise and perform, in addition to the powers and duties specially assignee to him in the Act or these Regulations, the following powers and duties, namely:

(a) Being in charge of the Office of the Institute as its Executive Head, managing it and attending to all correspondence.

(b) Removal from the membership owing to death and restoration to membership and issuing notification therefor.

(c) Sanctioning and renewing of Certificates of Practice for associates and fellows and cancelling Certificates of Practice at the request of members.

(d) Granting of permission to members to be engaged in other occupations besides the practice of the profession of accountancy within the categories permitted by the Council under regulation 111.

(e) Maintenance of registers, documents and forms as required by the Act and these Regulations.

(f) Being in charge of all the property of the Institute.

(g) Making necessary arrangements for receiving moneys due to the Council and also issuing receipts therefor.

(h) Incurring of all revenue expenditure within the limits sanctioned by the Council or the Committees and incurring capital expenditure or purpose of purchasing books for the library of the Institute within the limit sanctioned by the Council or the Committees.

(i) Causing proper accounts to be maintained and delivering of account books, or furnishing information to the auditors appointed by the Council for the purpose of audit of the accounts of the institute.

(j) Making all other payments as sanctioned by the Council, Committees or the President.

(k) Payment of salary and allowances to the members of the staff, granting of leave to them; and sanctioning their increments within the prescribed scales subject to the approval of the President.

(l) Exercise of disciplinary control over the staff except dismissal which should have the sanction of the President.

(m) Admitting candidates to the examinations held under hence Regulations and making all necessary arrangements for the conduct of the examinations.

(n) Refunding or transferring of fees received in accordance with these Regulations for the examinations, enrolment, issue of Certificates of Practice and allied matters.

(o) Registering and noting of suspension, cancellation or termination of registration of students.

(p) Permitting Registered Students to engage in other occupation as approved by the Council or the Committees.

(q) Signing and issuing of: (i) all notifications as provided in clauses (b) above; (ii) all other notifications on behalf of the Council, subject to the approval of the President.

(r) Signing Vakalat Namas on behalf of the Council, appointing Solicitor of Advocates on behalf of the Council, and filling papers in Courts on behalf of the Council, subject to the approval of the President.

(s) Calling of such information and particulars as he may consider necessary in furtherance of the above duties.

(t) Performing such other duties and functions as are incidental and ancillary to and may be required for the performance of the above duties and exercising such other powers as may be delegated by the Council, a Committee or the President from time to time.

100. Indemnity from losses and expenses

The members of the Council, the auditors, the Secretary and other Officers of the Council shall be indemnified by the Institute against all losses and expenses incurred by them in the bona fide discharge of their respective duties.

101. Method of payment of fees

All fees prescribed under these Regulations shall be made payable to the Secretary in such manner as the Council may direct:

PROVIDED that, until other direction is given by the Council, payments made to the Institute by Demand Drafts, cheques, Money Orders or Postal Orders, duly crossed and drawn in favour of the Secretary, payable in Calcutta, and payments made to him in cash at Calcutta shall be deemed to be payments made to the Council.

102. Issue of Duplicate Certificates

(1) In the event of the loss by the holder of a Certificate in any of the Forms 'C', 'E', 'F' and 'J', the Council may, on application made in this behalf, duly supported by an affidavit of the applicant to the effect that he was in possession of such a Certificate and had lost it, issue a copy thereof to him on payment of a fee of Rs. 10 for a duplicate copy of a Certificate in Form 'C', 'E' or 'F' and of Rs. 5 for a duplicate copy of a Certificate in Form 'J'.

(2) Where any such Certificate is damaged or mutilated, the Council may, on application made in this behalf, issue duplicate copy thereof on receipt of the fee prescribed is sub-regulation (1) and on return of the damaged Certificate.

103. Proof of service of notice

All notices required by the Act or these Regulations to be given to members shall be forwarded by post to such address as may last have been registered with the Institute, and in proving that such notice has been given, it shall be sufficient to prove that such notice was properly addressed and put in the post.

104. Publication of list of members

In publishing the list of members under sub-section (3) of section 19, the Council may indicate in such manner as it thinks fit the associates and fellows who are in practice and those who are not in practice. A copy of the list shall be sent free of charge to all members who make a request for it to the Secretary, all Registrars of Companies, all Regional Directors under the Department of Company Law Administration, the Ministry of Commerce and Industry, and such other bodies as the Council may specify. Copies of the list shall also be made available to all other persons at such reasonable price as the Council may fix.

105. Members to supply information

For the purpose of publication of the list referred to in Regulation 104, the Council may require the members to supply any information regarding present address, place of business, partners, whether practising or not, and the like. If the members fails supply the information in time, the list may be drawn upon such information as the Council may possess.

106. Branch office

Every Cost Accountant in practice or a firm of such Cost Accountants maintaining more than one office at the commencement of the Act shall send within three months thereafter to the Council a list of offices and the persons in charge thereof. Any change in regard to any branch office or offices shall also be intimated to the Council forthwith.

107. Offices not in charge of members

Where a Cost Accountant in practice or a firm of such Cost Accountants has any office in India at the commencement of the Act which is not in separate charge of a member of the Institute, he or it shall take steps within six months from such commencement to regularise the position by obtaining exemption from the Council or otherwise.

²[108. Prior approval of the Council to use own name or trade name or firm name

(1) Every Cost Accountant in practice in his own name or trade name and every firm of such Cost Accountants shall, before commencement of practice or formation of the firm, as the case may be, whichever is earlier, submit to the council in Form 'L' appended with these regulations the particulars of his office or the firm for approval to use own name or a trade name or a firm name.

(2) A trade name or firm name shall be restricted to the names of the proprietor or partners or a name which is already in use and may include, and confirm to, the names of the members as may appear in the Register of Members.

(3) A trade name or firm name may be used in the following manners, namely:-

(a) Full surname of the members or full name indicating their surname; or

(b) Full first name of the members or initials of full name or first name; or

(c) Combination of first name, middle name, initials and surname of the members or expansion thereof; or

(d) Distinguishing part of the name as is commonly known; or

(e) Combination of names or surnames of the partners; or

(f) Part of the name of the proprietor or partners; or

(g) Suffix & Co. or & Associates or their equivalents; or

(h) Any other name or surname by which a member is also known subject to the production of an affidavit or other evidence to the satisfaction of the Council.

(4) A trade name or firm name shall not be allowed to be used where-

(a) A member seeks to use a part of his surname; or

(b) Suffixes are used like '& Partners', '& Fellows' & 'Others' and '& Sons'; or

(c) It bears the name of God, Goddess or deity which has no relationship with the names or surnames of members; or

(d) It is a descriptive trade name or firm name; or

(e) It indicates or aims at publicity;

(f) Similar or nearly similar name is already being used and is entered in the Register of Offices and firms; or

(g) It is not desirable, in the opinion of the Council, to allow the use of such name.

(5) The Council may approve a trade name or firm name and shall maintain a Register of offices and firms for entering therein the trade name or firm name so approved and the particulars finished in Form 'L' appended with these regulations.

(6) Any subsequent change in the particulars submitted in Form L (appended with these regulations) shall be informed to the Council by the Cost Accountant or the firm of Cost Accountants so as to reach the Council within thirty days from the date on which the change is effected.

(7) Where the same trade name or firm name has been registered by the Council in the case of two or more members or firms, the Council may allow the use of such name by that firm alone who or which was registered first in the Register of offices and firms and may direct all other to alter the name in such a manner as the Council may consider proper and to inform the Council about the attention within one hundred and eighty days from the date of issue of directions.

(8) No member shall practise under a trade name or firm name-

(a) unless such name is approved by the Council under sub-regulation (5); or

(b) in respect of which a direction is issued by the Council under sub-regulation (7), after the expiry of one hundred and eighty days from the date of issue of the direction.]

109. Particulars of Nationality

Every member of the Institute shall submit to the Council particulars regarding his nationality and shall also intimate to the Council any subsequent change in such particulars not later than thirty days from the date of such change.

110. Place of business in India

It shall be obligatory on a member of the Institute to have a place of business in India in his own charge or in charge of another member of the Institute. Particulars of such place of business shall be supplied by the member to the Council initially and whenever there is a change of such place of business:

PROVIDED, however, that the Council may in the case of a persona not covered by the proviso to section 4(1)(iv), allow a member to specify a place of business in India whether he has business in India or not which is neither in his own charge nor in charge of another member of the Institute, and in that event, such place shall be deemed to be the place of business for the purposes of section 21 and his professional address for purposes of sub-regulation (6) of Regulation 7 and Regulation 53. Particulars of any change of such place of business shall be furnished to the Council whenever there is a change:

PROVIDED FURTHER that in the case of a member who is a salaried employee of a Cost Accountant in practice or a firm of such Cost Accountants in practice, the place of business of his employer(s) shall be deemed to be his place of business for the purposes of section 21.

111. Cost Accountants in practice not to engage in any other business or occupation

A Cost Accountant in practice shall not engage in any business or occupation other than the profession of accountancy unless it is permitted by a general or specific resolution of the Council:

PROVIDED that a Cost Accountant in practice who at the commencement of the Act was engaged in any business or occupation other than the profession of accountancy may continue to engage himself in such business or occupation up to the 30th June, 1964.

111A. Other functions of a Cost Accountant in practice

Without prejudice to the discretion vested in the Council in this behalf a Cost Accountant in practice may act as a Trustee, Executor, Administrator, Arbitrator, Receiver, Appraiser, Valuer Adviser, Secretary or as a Secretarial Consultant, as a representative for financial matters including taxation and may take up an appointment that may be made by the Central or State Governments, Courts of Law, Labour Tribunals or any other legal authority.

112. ⁹[***]

113. Constitution or reconstitution of firms to require ¹⁰[***] approval

(1) After the commencement of the Act, no firm of Cost Accountants shall be constituted or reconstituted except with the previous approval of the ¹¹[Council].

(2) The ¹¹[Council] shall not refuse to accord approval to the constitution or reconstitution of a firm under sub-regulation (1), unless it is of the opinion that the terms of the partnership agreement permit, directly or indirectly, the doing of anything by the firm or any partner thereof which amounts to professional misconduct in relation to a Cost Accountant in practice, or that the terms and conditions of the proposed partnership are not fair and reasonable or that, having regard to the circumstances of the case, the constitution or the reconstitution of the proposed partnership would not be in the interests of the general public.

CHAPTER XI : REGIONAL COUNCILS

114. Constitution of Regional Councils

(1) The Central Council may by notification in the Journal of the Institute, constitute a Regional Council for any region, which shall be known by such name as may be specified in such notification.

(2) A regional Council shall consist of-

(a) the elected members of the Central Council representing the region;

(b) the nominated members of the Central Council belonging to the region;

(c) not less than five members who shall be elected by the members of the Institute representing the region from amongst themselves at the rate which shall bear the same proportion to twenty-five as the number of members in the region bears to the number of members in all the regions, fractions exceeding half being counted as one and fractions equivalent to or less than half being omitted:

PROVIDED that if the number of members elected to Regional Council is less than the number of persons to be elected to that Regional Council, the remaining vacancies may be filled up by co-option by the Central Council from amongst the members to be nominated in this behalf by the Regional Council concerned. A member so co-opted shall hold office till the expiry of the duration of the said Regional Council.

Explanation: The professional address of a member of the Institute as entered in the Register of Members or, in the case of a member of the Central Council, his professional address as furnished at the time of his election or nomination to the Central Council, shall determine the region which such member represents.

115. Regional Register of Members

(1) Every Regional Council shall maintain a Regional Register of Members in which shall be entered the names and other particulars of all the members of the Institute representing the region.

(2) The name of any such member whose name has been removed from the Register of Members of the Institute shall forthwith be removed also from the concerned Regional Register of Members.

116. Functions of the Regional Councils

(1) The Regional Councils shall advise and assist the Central Council in carrying out provisions of the Act.

(2) In particular, the Regional Councils may:

(i) provide facilities for intercourse among members of the Institute in the region by regular meetings, arrangement of talks and lectures and for the acquisition and dissemination of useful information in connection with the profession of accountancy;

(ii) advise the Central Council on all matters referred to them by the said Council and offer such other help as may be required.

(iii) make representations to the Central Council in connection with matters of professional and business interest in the region and offer suggestions for raising the standard and status of the profession;

(iv) maintain a Regional Register of Members, and the Register of Students in the region;

(v) supply routine information to members or to the prospective candidates for examinations;

(vi) propagate among the members the advisability and necessity of observing the rules of professional etiquette and the provisions of the Act and these Regulations;

(vii) collect news from the members of the profession for publication in the Journal of the Institute;

(viii) recommend on their own motion, or on a reference by the Central Council, names for inclusion in the panel of examiners;

(ix) consider and recommend to the Central Council books which may be considered useful for candidates intending to appear for the Intermediate and Final examinations of the Institute;

(x) arrange, if desired by the Central Council, for coaching candidates for the aforesaid examinations in the various centers of the region;

(xi) maintain contacts with the various departments of Governments of the States within the region with a view to enlisting their support in the furtherance of the interest of the members of the Institute;

(xii) run study-circles and refresher course camps for the benefit of the Registered Students and members of the Institute;

(xiii) constitute a permanent research sub-committee for carrying out research work and for giving guidance in and encouragement of research by members in various topics of interest to the profession;

(xiv) maintain a library and reading-room for the use of the members;

(xv) maintain an Employment Exchange for securing suitable employment for qualified cost accountants and finding suitable qualified cost accountants for employers;

(xvi) organise a student section for the benefit of the Registered Students preparing for the Institute's examinations;

(xvii) carry out such other functions as may be entrusted from time to time by the Central Council.

117. Election of the Regional Council

(1) Every member of a Regional Constituency shall be entitled to vote in, and stand for, any election to the Regional Council of the Region to which according to his professional address he belonged on a date immediately five months prior to the date on which the list of members eligible to vote in and stand for that election is published, provided his name has been borne on the Regional Register of Members continuously for a period of not less than five months immediately prior to the date of publication of the list of members eligible to vote in and stand for that election and provided further that on lst October of the year previous to that in which the election is held, his entrance fee, annual membership fee and other dues for and in respect of the year previous to that in which the election is held are not in arrears:

PROVIDED that a member of the Institute in the region whose name stands removed from the Register of Members maintained by the Central Council on the date of election shall not be eligible either to vote in on stand for the election notwithstanding the fact that his name has been published in the list of voters, if any.

(2) Every person standing for the election to the respective Regional Council shall pay a fee of Rs. 150 to the Central Council.

(3) Notwithstanding anything contained in sub-regulation (1), a member of a regional Council shall not be eligible to stand for election as, or for being a member to any Regional Council if,-

(a) he has held office as a member of the Council or any Regional Council during three consecutive terms, whether full or part; or

(b) he is employed by or under the Institute.

Explanation 1: For the purposes of this rule, one term of office of an elected member to the Council shall be the duration of any Council constituted under section 14 of the Act and one term of office of an elected member to the Regional Council shall be the duration of the Regional Council constituted under regulation 121 of the said Regulations.

Explanation 2: A member, who has ceased to hold office as a member of the Council or Regional Council as aforesaid continuously for two consecutive terms shall be eligible to stand for election to Regional Council under sub-regulation (1).

118. Conduct of elections

The elections to the Regional Councils shall be held by the Central Council and the Regulations in Chapter VII relating to elections to the Central Council shall, so far as may be, apply to elections to the Regional Councils, except that in the case of a candidate who is validly nominated for election to the Central Council as well as to a Regional Council and who is deemed and declared elected to the Central Council under the provisions contained in Regulation 62, he shall not be deemed to be a candidate for purposes of election to that Regional Council and accordingly his name shall not be included in the voting paper relating to the elections to the said Regional Council and that the fee paid by him under Regulation 117 shall not be refunded.

119. Disputes regarding election

Where any dispute arises regarding any election to any of the Regional Councils, the matter shall be referred within thirty days from the date of election to the President of the Central Council and his decision shall be final.

120. Vacancies

(1) A member of a Regional Council may at any time resign his membership by writing under his hand addressed to the Chairman of the Regional Council and the seat of such member shall become vacant when such resignation is notified in the Journal of the Institute.

(2) If an elected member of a Regional Council is elected to the Central Council such member shall cease to be a member of the Regional Council and the vacancy so caused may be filled up by co-option by the Central Council from amongst the members nominated in this behalf by the Regional Council concerned. A member so co-opted shall hold office till the expiry of the duration of the said Regional Council.

(3) Any casual vacancy in the first Regional Council constituted by the Central Council under the provisions of sub-regulation (3) of Regulation 114 may be filled up by co-option by the Central Council and any casual vacancy in the subsequent Regional Council may be filled up by the Regional Council concerned. A member so co-opted shall hold office till the expiry of the duration of the said Regional Council.

(4) If an elected or a co-opted member of a Regional Council changes his professional address from the regional constituency from which he was elected or to which he was elected or to which he belonged at the time of co-option, as the case may be to any other constituency, such member shall cease to be a member of the Regional Council and the vacancy so caused may be filled up by co-option of another member by the Regional Council concerned. A member so co-opted shall hold office till the expiry of the duration of the said Regional Council.

(5) Notwithstanding anything contained in these Regulations, an elected or co-opted member of a Regional Council shall be deemed to have vacated his seat if he is declared by the Regional Council to have been absent without sufficient excuse from three consecutive meetings of the Regional Council or if his name is, for any reason, removed from the Regional Register of Members under the provisions of these Regulations and the vacancy so caused may be filled by co-option of another member by the Regional Council concerned. A members so co-opted shall hold office till the expiry of the duration of the said Regional Council.

121. Duration of Regional Council

(1) The duration of a Regional Council shall be three years from the date of constitution of the Regional Council which shall be specified by the Central Council by a notification in this behalf in the Journal of the Institute:

PROVIDED that the Central Council may, if in its opinion circumstances so warrant, extend or shorten the life of a Regional Council by a like notification.

(2) On the expiry of the duration of a Regional Council, a new Regional Council shall be constituted in the manner provided in these Regulations.

122. Officers of the Regional Council

(1) Every Regional Council at its first meeting after its first constitution and in subsequent years at the first meeting of the Regional Council after the Annual General Meeting of the Regional Constituency, shall elect from amongst its members a Chairman, a Vice-Chairman, a Secretary and a Treasurer thereof, and so often as any of these offices become vacant, the Regional Council shall choose another person from among its members to hold that office. The said office bearers shall hold office until the first meeting of the Regional Council after the Annual General meeting of the Regional Constituency:

PROVIDED that the retiring office-bearers shall be eligible for re-election to any of the offices of the Regional Council if they continue to be members of the Regional Council.

(2) The first meeting of the Regional Council referred to in sub-regulation (l) shall be called and held within one month from the date of its constitution or from the date of the Annual General Meeting of the Regional Constituency, as the case may be.

If within half an hour from the time appointed for the said first meeting of the Regional Council referred to hereinbefore, a quorum as mentioned in Regulation 75 is not present, the said first meeting shall, notwithstanding anything contained in that Regulation, stand adjourned to the same day in the next week at the same time and place and at such adjourned meeting of the Regional Council, the members present, whatever their number, shall form the quorum and shall have power to transact all the business, which could properly have been transacted by the original meeting had the necessary quorum been present.

123. Chief Executive authority

The Chairman of a Regional Council shall be the Chief Executive Authority of the Regional Council.

124. Functions of Secretary of the Regional Council

The Secretary of the Regional Council shall be responsible for the performance of general duties of the office of the Regional Council under the guidance of the Chairman or, in his absence, the Vice- Chairman. The Secretary of the Regional Council may if there is no Treasurer act as Treasurer also. The Treasurer shall cause proper accounts to be maintained of the moneys received and expended, and of the assets and liabilities of the Regional Council.

125. Continuance in office

On the expiration of the duration of a Regional Council, the Chairman, Secretary and Treasurer for the time being, shall discharge the duties and functions of the Chairman, Secretary and Treasurer respectively as provided in this Chapter until such time as the next Regional Council is constituted and its Chairman, Secretary and Treasurer elected under the provisions of this Chapter take over charge of their respective duties.

126. Other staff

For the purpose of carrying out its functions, a Regional Council may appoint such staff and servants for its office as it may from time to time consider necessary.

127. Committees of the Regional Council

(1) The Regional Council at a meeting shall constitute a Students’ Facilities Committee and such other Committees as the Central Council may direct and may constitute any other Committee as it deems necessary for the purpose of carrying out the provisions of these Regulations.

(2) Constitution of Committees - Each of the Committees shall consist of the Chairman or the Vice-Chairman of the Regional Council, ex-officio, as the Regional Council may decide and not less than two other members of the Regional Council elected by that Council:

PROVIDED that, in the case of any Committee constituted at the direction of the Central Council, out of the members to be elected, one shall be nominated by the Central Council from amongst the members of the Central Council representing the region:

PROVIDED, however, that notwithstanding anything contained in these Regulations, any Committee formed under this Regulation may with the sanction of the Regional Council co-opt one member of the Institute belonging to the region as a member of the Committee and any member so co-opted shall entitled to exercise all the rights of a member of the Committee:

PROVIDED FURTHER that the Regional Council may sanction such co-option for not more than two of its Committees:

PROVIDED FURTHER that the Students' Facilities Committee shall consist of not less than three members of the Regional Council and shall have the power to co-opt not more than two persons who shall be either Registered Student or "Grad. CWA". Any person so co-opted shall be entitled to exercise all the rights of a member of the Committee.

128. Chairman of Committee

A Regional Council shall elect a member of the Committee to be the Chairman of the Committee:

PROVIDED that in the case of any Committee constituted at the direction of the Central Council, unless otherwise nominated by the Central Council, the Chairman or the Vice-Chairman of the Regional Council, as the case may be, shall be the Chairman.

129. Term of Office

Every member of a Committee shall hold office until the first meeting of the Regional Council after the Annual General Meeting of the Regional Constituency, but subject to his being a member of the Regional Council, he shall be eligible for re-election.

130. Meetings

The provisions regarding meetings of the Committees of the Central Council in Regulations 80 to 84 shall, so far as may be, apply to the meetings of the Committees of the Regional Councils.

131. Finances and Accounts of the regional council

(1) No regional council shall borrow money without the prior approval of the Central Council.

(2) In addition to any grants-in-aid that the Central Council may make to it, a Regional Council may raise on a voluntary basis such additional subscriptions in respect of particular activities from the participating members as it may consider justified.

132. Expenditure from fund

The funds of a Regional Council shall be employed for such purposes as may from time to time be sanctioned by the Regional Council:

PROVIDED that no funds thereof shall be applied, either directly or indirectly, for payment to the members of the Regional Council except for reimbursing them for any expenses incurred by them in connection with the business of the Regional Council in the region concerned.

133. Audit

The accounts of a Regional Council shall be audited every year by a Chartered Accountant in practice or a firm of such Chartered Accountants appointed by the Regional Constituency at its Annual General Meeting and the accounts together with the audit report and the report of the Regional Council shall be sent to the members in the respective regions at least 14 days before the date of the Annual General Meeting of the Regional Constituency and shall be placed for adoption before the Annual General Meeting of the Constituency:

PROVIDED that the auditors for the first year shall be appointed by the Regional Council. The year will be from lst April to 31st March of the next year.

134. Audit report

A copy of the audited accounts and the report of the Regional Council as adopted by the Annual General Meeting shall be sent to the Central Council not later than one month after the date of the Annual General Meeting.

135. Meetings of the Regional Councils

The provisions of Chapter VIII shall apply to the meetings of the Regional Councils, mutatis mutandis, except that a notice of not less than ten days shall be given for meetings of the Regional Councils.

136. Annual General Meetings of the members of Regional Constituencies

(1) A Regional Council shall convene on or before 31st July of every year an Annual General Meeting of the Regional Constituency.

(2) The business at an Annual General Meeting shall be to receive the report of the Regional Council, to adopt the accounts, to appoint auditors and to transact such other business as may be brought before the meeting with the permission of the Chairman.

137. Extraordinary General meetings

(1) A Regional Council may, as often as it considers necessary, and shall on requisition made in writing by at least 20 per cent of the total number of members on the Regional Register convene an Extraordinary General Meeting. Any such requisition shall specify the object for which the meeting is called, shall be signed by the members making the same and shall be delivered at the office of the Regional Council.

(2) When a requisition is made under sub-regulation (1), the Regional Council shall convene an Extraordinary General Meeting within six weeks after the receipt of such requisition.

138. Notice of meeting

At least 14 days' notice of every general meeting specifying the date, place and hour of such meeting and in case of special business, the general nature of such business shall be given.

139. Notice of proposals

Every member of the Institute on the Regional Register shall be entitled to table any proposals or resolutions for the consideration of a General Meeting of the members:

PROVIDED that such proposals and resolutions are received by the Secretary of the Regional Council at least 10 days before the date of the meeting. Any such proposals received, after the prescribed time will be treated as proposals for the next following meeting of the members unless admitted by the Chairman of the earlier meeting.

140. Chairman

The Chairman or in his absence the Vice-Chairman of the Regional Council shall be the Chairman of the General Meetings of the Regional Constituency. In the absence of both, the members may elect any one of the members present as Chairman of the meeting.

141. Quorum

Ten members shall form the quorum for a meeting. No business shall be transacted at any General Meeting unless the requisite quorum be present at the commencement of the business.

142. Adjournment

If within half an hour from the time appointed for the meeting, a quorum is not present, the meeting, if convened upon a requisition from members, shall be dissolved, and in any other case shall stand adjourned to the same day in the next week at the same time and place; and at every such adjourned meeting, all businesses which could properly have been transacted at the original meeting may be transacted, whether there is the quorum or not.

143. Decisions to be by majority

All decisions at all meetings shall be taken by a majority of votes of the members present and voting. In case of equality of votes, the Chairman shall have a casting vote in addition to his original.

144. Who can vote

No person shall be entitled to vote at the meeting of the members of the Regional Constituency unless his name is on the respective Regional Register and he is not in default towards payment of his annual subscription.

145. Dissolution of the regional council

(1) Notwithstanding anything contained in these Regulations, the Central Council-

(a) may, if it considers necessary so to do, dissolve a Regional Council after giving an opportunity to it to state its case; and

(b) shall dissolve a Regional Council if not less than three-fourths of the members on, the Regional Register have passed a resolution to that effect at a General Meeting.

(2) Upon the dissolution of a Regional Council and until a new Regional Council is constituted, the functions of the Regional Council shall be discharged by the Central Council.

CHAPTER XII : CHAPTERS OF COST ACCOUNTANTS

¹²[146. Chapters of cost accountants

(1) The Council may, by Notification in the Journal of the Institute, constitute Chapters of Cost Accountants and for that purpose make Bye-laws in connection there with.

(2) In particular and without prejudice to the generality of the foregoing powers, such Bye-laws may provide for conditions for constitution of Chapters.

(3) A Chapter so constituted, shall, at all times, function subject to the control, supervision and direction of the Regional Council operating in the area and shall carry out such directions as may from time to time be issued by the Regional Council.

(4) The Council may, at any time, if it considers necessary to do so, dissolve a Chapter after giving it an opportunity to state its case.

SCHEDULE

FORM A : REGISTER OF MEMBERS OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

(See Regulation 3)

FORM B : APPLICATION FOR ADMISSION AS ASSOCIATE /FELLOW OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

[See Regulation 6]

To

The Secretary to the Council of

The Institute of Cost and Works Accountants of India,

12, Sudder Street, Calcutta-16.

Sir,

I beg to apply for admission as an Associate/Fellow of the Institute of Cost and Works Accountants of India. I hereby declare that I am not subject to any of the disabilities stated in section 8 of the Cost and Works Accountants Act, 1959. The required particulars are furnished below:

1. Name in full ...............................

(Block letters)

2. Name in short with surname at the end ...................

3. Father's name ..............................

4. Date of birth ¹³ ..................

5. Nationality ......................

6. ¹⁴Details of Qualifications ¹⁵

(a) Educational ................

(b) Professional ..............

7. Period of residence in India .......................

8. If not an Indian citizen, please state whether Certificate of Indian domicile has been obtained ..... ............................

9. Permanent residential address ...............................

10. Present residential address ...................................

11. Occupational/Professional address .............................

12. Number and date of admission as Associate (if applicable) ..................

13. (a) The year and month in which the applicant passed the Final Examination held under the Cost and Works Accountants Regulations, 1959, and ............

(b) Roll No. at that Examination .......................

(c) Student Registration Number ..................... OR

(a) The year and month in which the applicant passed the Final Examination held by the Institute of Cost and Works Accountants, Calcutta, (the dissolved company) and ................

(b) Roll No. at that examination .......................

(c) Student Registration Number ...................... OR

(a) The year and month in which the applicant passed such Examination as is recognised as equivalent to the Final Examination held under the Cost and Works Accountants Regulations, 1959, along with the particulars of the Examination and ...................

(b) Roll No., if any, at that Examination ......................

14. Details of practical training, if any, taken by the applicant.

15. Nature and place or places of business in India. (See Regulation 110)..................

16. Whether the applicant is in charge of the place mentioned at 15? If not, the name(s) and membership number(s) of the member(s) of the Institute who is (are) in charge of that (those) place(s) and his (their) address(es).

...............................................

(Applicants not in practice within the meaning of section 2(2) of the Cost and Works Accountants Act, 1959 need not give these particulars.)

17. Period for which the applicant has been continuously is practice as a Cost Accountant.

18. If the applicant is a paid assistant to a Cost Accountant in practice or in a firm of such Cost Accountants, name of the Cost Accountant or the firm and from which date.

19. If the applicant holds a salaried employment other than that covered by 18 above, full particulars thereof:

(i) Name and address of present employers ..................................................................

(ii) Paid-up and working capital ...................................................................................

(iii) Particulars of factories and their address .................................................................

...................................................................................................................................

....................................................................................................................................

(v) Nature of business ...................................

(v) Sales turnover .........................................

(vii) Total number of employees ....................................

(vii) Number of employees engaged .............................

(a) in factory ............................

(b) in costing work ...................

(viii) Period of service with dates ......................................

(ix) Official designation of present employment ..................................

(x) Date appointed to present Post ` .......................

(xi) Whether in complete charge and authority of the whole costing work ..........................

...................................................

(xii) Relative position to that of the Chief Superior Officer .................................................

(xii) Whether in head office or in factory. (Please give details) ...........................................

20. Details of positions held with present employers and brief particulars of duties in respect of each position. (This statement should be attested officially by the applicant's employers/superiors initialled by one other person, preferably a member of the Institute, by way of verification. If the applicant so desires, this statement may be given on a separate sheet of paper.)

21. (a) Particulars of items, if any, of Cost and Management Accounting work done outside the costing department, e.g. pay-roll accounting, stock verification, etc. and the applicant's role in connection therewith

.......................................................................................................................

(b) Functional responsibility of cost department in regard to (a) above.

........................................................................................................................

22. Particulars of applicant's previous employers (insofar as relevant to applicant's claim to have had at least three years' (in case of Fellowship-five years') practical experience of Cost and Management Accountancy). (Particulars in respect of each organisation in which the applicant served should be furnished duly attested by the employers concerned under their official seal and initialled by one other person, preferably a member of the Institute. If the candidate so desires, this statement may be given on separate sheets of papers.)

(i) Name and address of the organisation ..................................................................

(ii) Paid up and working capital .............................

(iii)Particulars of factories and their address .................................................................

(iv) Nature of business .......................................................................................................

..........................................................................................................................................

(v) Sales turnover ...........................

(vi) Total number of employees .........................................

(vii) Number of employees engaged ..................................

(a) in factory .............................

(b) in costing work ...................

(viii) Period of service with dates ................................................

(ix) Whether in head office or in factory. (Please give details)

.......................................................................................................................

23. Details of positions held with past employers and brief particulars of duties in respect of each position. (This statement should be attested officially by the applicant's employers/superiors and initialled by one other person, preferably a member of the Institute, by way of verification. If the applicant so desires, this statement may be given on separate sheets of papers)

24. An applicant for advancement to Fellowship is required to give the following further details, in respect of each portion held by him during the last five years, duly attested by his present/past employers concerned under their official seal:

(a) Brief note on Cost/Management Accounting system in vogue.

(b) Whether the post is the highest in Costing and if not, the relative position to the highest post ..................................................

(c) An Organisation Chart, showing the relative position of the applicant in management hierarchy (both administratively and functionally), with special reference to the Cost and Management Accounts Department, in respect of each position held during the last five years

25. Whether the applicant intends to practise as a Cost Accountant under the cost and Works Accountants Act, 1959? ...............

26 Whether the applicant intends to continue the engagement at 18 or 19 above in addition to practice? ..............

27. Whether the applicant is engaged in any other business or occupation not covered by 18 or 19 above? If so, full particulars thereof .............................(Applicants not in practice within the meaning of section 2(2) of the Cost and Works Accountants Act, 1959 need not give these particulars.)

28. Whether the applicant was at any time debarred from practising as an accountant? If so, the reason and period of suspension.

II. I give below the names and addresses of three persons to whom reference may be made. (Two of the referees should be persons having personal knowledge of the applicant's training and experience and one should preferably be a member of the Institute).

1. ................................................................................................................................................

2. ...............................................................................................................................................

3. ...............................................................................................................................................

III. I hereby undertake that if admitted as an Associate/Fellow of the Institute I will be bound by the provisions of the Cost and Works Accountants Act, 1959, and the Regulations framed thereunder or that may hereafter from time to time be made pursuant to the said Act.

IV (i) I also send herewith a sum of Rs. ................. being my entrance fee of Rs................. and annual membership fee of Rs. ................ for the year .................

¹⁶[(ii) A sum of Rs. 100 is also forwarded for the annual Certificate of Practice for the period ending 30th June ..............

Place : Yours faithfully.

Date: Signature

FORM C : CERTIFICATE OF MEMBERSHIP

[See Regulation 9]

No ........

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

(Emblem)

This is to certify that ........................ of ......................... was admitted as an Associate/Fellow of the Institute of Cost and Works Accountants of India on the..................... day of.................... one thousand nine hundred and .................

Given by the Council under the Common Seal of the Institute of Cost and Works Accountants of India.

This the ................. day of ......................19.......

Seal President

Secretary

FORM D : APPLICATION FOR THE ISSUE OR RENEWAL OF A CERTIFICATE OF PRACTICE

[See Regulation 10]

To

The Secretary to the Council of

The Institute of Cost and Works Accountants of India,

12, Sudder Street, Calcutta-16.

Sir,

I have already sent*/ am enclosing a cheque/draft No. ............... dated ................... ¹⁷ for Rs. 100 towards the fee for the Certificate of Practice for the period / year ending 30th June ................. which may be issued to me / renewed at an early date.

¹⁷2. I declare that I am not engaged in any other business or occupation besides the profession of Accountancy. If and when I intend to be so engaged, I shall obtain the prior permission of the Council.

¹⁷3. I am engaged in other occupation as ............... and propose to continue to be so engaged in addition to the practice of Accountancy for which the permission has already been obtained/ applied for, vide your / my letter No. ......... dated ..............

4. I undertake that as and when I cease to be in practice I shall duly inform the Council as required by the Cost and Works Accountants Regulations, 1959.

¹⁷5. I hold Certificate of Practice for the period ending 30th June ..............

Yours faithfully,

Place: Signature

Date: Membership Number

FORM E : CERTIFICATE OF PRACTICE

[See Regulation 10] No. .........

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

(Emblem)

This is to certify that ...............of ............... an Associate / a Fellow Member of the Institute, is entitled to practise as a Cost Accountant in India. The certificate is valid from the........................ day of ............. 19........ to the 30th June 19......... inclusive and thereafter subject to the renewal in the prescribed form.

Given under the Common Seal of the Institute of Cost and Works Accountants of India, this .......... day of ........... 19........

Seal President

Secretary

FORM F : RENEWAL OF CERTIFICATE OF PRACTICE

[See Regulation 10]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

(Emblem)

This is to certify that the validity of the Certificate of Practice No. .................. dated ................... issued in favour of ............. of ................. an Associate/ a Fellow of the Institute has been extended upto and inclusive of 30th June 19............

Place: By the Authority of the Council

Date: Secretary

FORM G : COMPLAINT

[See Regulation 12]

BEFORE THE COUNCIL OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

Section 21

Between Petitioner

And Respondent

Petitioner's address:

Respondent's address:

Particulars of complaint in paragraphs consecutively numbers:

Particulars of evidence, oral and documentary, if any, to substantiate the complaint:

Signature

Verification

I, .................. the petitioner, do hereby declare that what is stated above is true to the best of my information and belief.

Verified today the ........ day of ........... 19........ at

Signature

FORM 'H' : APPLICATION FOR RESTORATION TO MEMBERSHIP OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

[See Regulation 17]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

To

The Secretary to the Council of

The Institute of Cost and Works Accountants of India,

12, Sudder Street, Calcutta-16.

Sir,

I beg to apply for restoration of my name to the membership of the Institute of Cost and Works Accountants of India. A also hereby declare that I am not subject to any of the disabilities stated in section 8 of the Cost and Works Accountants Act 1959. The required particulars are furnished below:

1. Name in full (in Block Letters).

2. Father's name.

3. Date of birth.¹³

4. Nationality.

5. General Educational Qualifications.¹⁴

6. Period of residence in India.

7. If not an Indian citizen, please state whether Certificate of Indian Domicile has been obtained.

8. Permanent residential address.

9. Present residential address.

10. Professional address.

11. Membership Number prior to removal.

12. Reasons for and date of removal¹⁸

13. Nature and place or places of business in India.

14. Whether the applicant is in charge of the place or places mentioned at 13. If not, the name(s) and membership number(s) of the members of the Institute who is (are) in charge of that (those) place(s) and his (their) address(es).

15. If the applicant is a paid assistant under a Cost Accountant in practice or in a firm of such Cost Accountants, name of the Cost Accountant of the firm and from which date.

16. If the applicant holds a salaried employment other than that covered by 15 above, full particulars thereof.

17. Whether the applicant intends to practise as a Cost Accountant under the Cost and Works Accountants Act, 1959.

18. Whether the applicant intends to continue the engagement at 15 or 16 above in addition to practice.

19. Whether the applicant is engaged in any other business or occupation not covered by 15 or 16 above; if so, full particulars thereof.

20. Whether the applicant was at any time debarred from practising as an accountant and if so, the reasons and period of suspension.

II. I hereby undertake that if my name is restored to the Membership and if admitted as a member of the Institute I will be bound by the provisions of the Cost and Works Accountants Act, 1959, and the Regulations framed thereunder or that may hereafter from time to time be made pursuant to the said Act.

III (i) I also send herewith a sum of Rs.... being (a) the balance of entrance fee of Rs....... (b) the arrears on account of the annual fee of Rs......... (c) the restoration fee of Rs. 25 and (d) the annual membership fee of Rs....... for the year........

(ii) A sum of Rs............. is also forwarded for the annual Certificate of Practice.

Place: Yours faithfully,

Date: Signature

FORM I : APPLICATION FOR REGISTRATION AS A STUDENT

[See Regulation 20]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

To

The Secretary to the Council of

The Institute of Cost and Works Accountants of India,

12, Sudder Street, Calcutta-16.

Sir,

I beg to apply for Registration as a Student of the Institute of Cost and Works Accountants of India. The required particulars are furnished below:

1. Name in full (in Block Letters)

2. Address

3. Age and date of birth¹³

4. Occupation in full.

5. Educational Qualifications¹⁴

6. Father's Name.

7. In case the applicant was previously admitted as a Registered Student of the Institute or of the dissolved company, and if at any time such Registration was cancelled, discontinued or otherwise terminated:-

(a) The date of previous Registration.

(b) The former Registration Number.

(c) The reasons for cancellation, discontinuance, etc.

II I hereby declare that the particulars furnished above are true to the best of my knowledge and belief and should it at any time be proved that the said particulars were untrue, I agree to my Registration being cancelled without any obligation on the part of the Institute to refund any fee or subscription paid by me to the Institute. I also hereby undertake that, if enrolled as a Registered Student of the Institute, I will be bound by the provisions of the Cost and Works Accountants Act, 1959, and the Regulations framed thereunder or that may hereafter from time to time be made pursuant to the said Act.

III I also send herewith a sum of ¹⁹[Rs. ............ ] being the Student Registration Fee.

Place: Yours faithfully,

Date: Signature

FORM J : EXAMINATION CERTIFICATE

[See Regulation 40 & 51]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

This is to certify that .......... of .......... has passed (............. ) the .............. Examination held by the Institute of Cost and Works Accountants of India in the month of .............. 19.

Given under the Common Seal of the Institute of Cost and Works Accountants of India, this ......... day of ......... 19.......

SEAL Secretary

FORM K : NOMINATION OF A CANDIDATE FOR ELECTION TO THE COUNCIL OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

[See regulation 57]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

We, the undersigned Members of the Institute of Cost and Works Accountants of India, being qualified to vote in the election of members to the Council of the Institute by the ..........constituency , do hereby nominate ........... who is a Fellow Member of the Institute belonging to that constituency, as a candidate for the election to be held on the ........... 19.

(1) Signature of proposer

Enrolment No.

Address

(2) Signature of seconder

Enrolment No.

Address

I, ............... being a Fellow Member of the Institute belonging to the constituency, agree to stand for the election by the constituency to be held on the ............ 19.

I send herewith the fee of Rs. 300 to the Council by Cash/Demand Draft on ...............

Signature of candidate

Address

Dated this ........... day of ..............

FORM L : PARTICULARS OF OFFICES AND FIRMS

[See Regulation 108]

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA

1. Name of Firm / Cost Accountant's trade name.

2. Name(s) of the Proprietor / Partners of the firm with his / their Membership Number (s).

3. Date from which the partnership was entered into.

4. Address of the Head Office of the Firm / Cost Accountant.

5. Addresses of the Branch Offices of the Firm / Cost Accountant, if any.

6. Name of the member with the Membership Number who is in charge of each of the offices.

7. Names of the members of the Institute (with their Membership Numbers) who are working as paid assistants in the Firm/ under the Cost Accountant.

Place: Signature of the Cost Accountant/Firm of Cost Accountants.

Date:

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