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Chief Minister of Gujarat Shri Narendrabhai Modi had recently launched a water conservation movement. 51 major check-dams would be constructed through public participation in the dry and barren land of Kutcha-desert. Chief Minister gave a call to replicate the success-saga of Israel for Kutcha.
Convener of water-management committee for Saurashtra and Kutcha regions, Shri Anantbhai Dave has sought approval from State Government to construct 694 small check-dams. Under Sardar Patel Sahbhagi Jal sanchay Yojana 149 big size check-dams are to be constructed on 29 rivers of the district. State Government has earmarked Rs 138.79 crores for the project. Out of that, Chief Minister Kick started the project of 51 big-sized check-dams for 8 Talukas of Kutcha district today. Construction work is likely to be completed between June to Dec-2009, and it will benefit 11500 hectares of land.
From his residence, Chief Minister interacted with the villagers of five villages, villages are -Kera-Bhuj, Moti Rayan- Mandavi, Nundhatad- Abdasa, Chandroda-Anjar, and Chobari- Bhachau had had the privilege to share the glory. He also appealed to de-silt existing check dams' of district, which needs de-silting .It will also augment water storage capacity of check-dams. The de-silted soil can be spread in to farms, as it is highly fertile in quality. He added, “Water is not produced in factories, water is a Prasad from god. We must use it in a judicious and economic manner.”
Mekan-Dada, a renowned saint of Kutcha had predicted that Kutcha would become Kashmir of our state. Water of Narmada, Sindhu and Saraswati would flow from the land of Kutcha. Chief Minister reminded about the dream of Mekan-Dada.
Panchayat Minister Shri Narottambhai Patel outlined the theme of water conservation movement.
Shri Anantbhai Dave, Minister of State Shri Vasanbhai Aahir, M.P.Shri Pushpadan Gadhvi, and MLAs had also taken part from different villages.
Secretary of Water Resource Department Shri N.B.Desai, Principal Secretary –Panchayat Shri Varesh Sinha, and Rural development Commissioner Shri Vipul Mitra remained present during Tele- Conference.
Accountants and auditors prepare, analyse and verify financial reports for businesses and government organisations. The accounting department figures profits for the company, prepares its taxes and keeps track of the cost of running the company. The auditors check those calculations to verify their accuracy.
Chartered Accountants maintain the records of financial transactions which every organization is required to keep by law. They keep records of the income and expenditure of the company and form the basis of the annual accounts. A firms account books need to be audited by a qualified accountant, and certified to be ‘true and fair’ giving full view of the company’s affairs. Only qualified Chartered Accountants are legally allowed to audit a company’s books. Public sector organizations must have their accounts checked by an appointed firm of accountants. Chartered Accountants are members of the Institute of Chartered Accountants of India. Only members of this Institute can call themselves Chartered Accountants. Under the Companies Act, Chartered Accountants in professional practice are authorized to audit company accounts.
Nature of Work
Chartered Accountants are found to be working in private practice or as employees in a firm. The range of work in private practice can vary enormously according to the size and place(city) of practice. If it is a large practising firm there is greater specialization of individual accountants within the organization. Accountants may specialize in the following disciplines :
Financial accounting
Financial accounting deals with keeping financial records. The main tasks are operating accounts, doing internal audits, dealing with wages and salaries, paying accounts and sending out invoices, and coping with tax. Trainee accountants can expect to spend time carrying out the full range of basic accounting tasks, and go on to, for instance, interpreting accounts; later to supervising, controlling and organising expenditure and income, etc. It includes compiling daily, monthly and yearly management accounts for directors.
Auditing
An important part of the work of most Chartered Accountants consists of examining and verifying the accounts of their employers or clients and then certifying that the accounts are a true and fair account of the company’s financial state.
Statutory Audit
Statutory audits are required as per the Company Act by both the private and public sector. Statutory auditors are appointed by share holders for private companies and by the central government on advice of the Comptroller & Adjutant General for the public sector, LIC, financial institutions etc.
Internal Audit
Internal auditing is rapidly growing in importance. As computer systems make information available when required, decisions can be based on actual data. Internal auditors examine and evaluate their firms’ financial and information systems. They keep track of management procedures, and internal controls to ensure that records are accurate and controls are appropriate to protect against fraud and waste. They also review - evaluating the efficiency, effectiveness of company operations and compliance with corporate policies and procedures.
Compulsory tax Audit
Tax auditors review financial records and other information provided by taxpayers to determine the appropriate tax liability. Government departments have tax auditors who may be appointed to audit the taxpayers accounts. All income tax assessees require to get a tax audit by a chartered accountant.
Certification & Audit
CA’s audit the accounts of those who are given loans by banks, issue certificate for tax purposes, and involve themselves in import export certification.
Computers are widely used in accounting and auditing. Accountants summarize transactions in standard formats for financial records, calculate projected financial ratios, or organize data in special formats for financial analysis.
Cost accounting
Cost accounting deals with the complex business of working out what particular operations, jobs, products really cost to produce, taking into account all the relevant factors and not just labour and materials, all the ‘overheads’ and less obvious costs too. It extends to budgeting and budgetary control, forecasting further needs and costs (for instance, looking ahead to rising or falling energy prices), monitoring expenditure to see that costs are not over-shooting, and providing reports, etc., for management accounting. It involves analysing and comparing costs, translating information from non-financial managers into financial terms, and explaining financial information for them.
Tax management
Tax managers specialize in optimising the firm’s financial structure, to ensure the company pays as little as is legal in terms of taxes. Increasingly they have to cope with taxation on an international scale, and with the tax laws of different countries. They look at the tax implications of new plans, changes in company structures, in fact any major decision. They advise on the tax effect of performance goals, which includes pricing policies.
Tax management relates not only to direct taxes e.g income tax but to indirect taxes such as sales tax, agricultural income tax, entertainment tax etc.Tax planning is an important component of this function.
Consultancy
Consultancy is a challenging opening for bright and ambitious young CAs. Business today needs right information and CAs can provide effective information management related to accounting. Consultancy may involve management accounting, aspects of accounting which are used to formulate policies and for assessing resource utilization. Internal audits, often required statutorily, are also done by consulting firms for either determining operational efficiency of the departments or for ensuring that capital purchases are economical.
Consultant’s functions relate to the following areas :
Corporate law advice - CAs carry out company audits and are experts at corporate law. While in some firms company secretaries deal with corporate legal advice, many firms get advice on company formation and structure, liquidation and financial aspects from CAs.
Project planning and finance - Procuring finances for business needs expertise ; CAs are trained to advise on financial sources and prepare project reports.
Investigation - Firms need assessment on specific aspects of business, e.g., share valuation for takeovers, issue of capital shares, amalgamation with other firms. Consultant CA’s undertake this function too.
Business advice - When a company wishes to expand and acquire larger shareholding, there is need for expert analysis of the profitability of such a venture, as well as its long term benefits. CAs have a fair judgement of this and are often asked for advice on these matters as well as profit improvement, joint venture programmes, etc.
Secretarial Work- Since business enterprises today have to comply with many legal regulations secretarial practice and procedures become important for the enterprise. Chartered accountant form an integral part of this function.
Information Systems- Data processing in business enterprises has become critical to efficient functioning. Chartered accountants specialising in information systems management seem to have become popular in the business sector.
CA in the industry
In the industry you will find MBAs, technologists and CAs as well. In the industry the work of a CA varies according to the size of the firm. CAs are generally found in the higher positions of the accounting department and in the finance division at all levels, In the accounting section they are involved with book keeping, ledgers, vouchers, maintaining budgetary controls, depositing excise tax, sales tax and income tax for the industry, payments and collections, and bank and financial institutional dealings etc. In the finance department the CAs are involved with planning and financial strategies. In small firms the account and finance functions are performed by the same department.
Management accounting
Management Accounting is a task senior chartered accountants perform. They collect, organize, collate and analyse information from all parts of the organization, including the financial departments. This data helps them to make regular critical analysis of past and present financial performance with projections for the future.
Other functions
Finance departments, in large organizations, have to prepare prospectuses for share issues. Finance departments may also be responsible for managing pension funds and long-term investments, investigate prospective investments, and do the preparatory work on the possibility of taking over another company. In some, usually smaller, organizations, the chartered accountant may carry out the legal responsibilities of the Company Secretary. Appointment can be as financial controller also - in a small unit first, and later in large units and organizations.
Work Environment
Accounting is essentially a desk job. Although computer work has replaced paperwork to a considerable extent the job yet can be routine. Concentration and attention to detail are critical. Public accountants experience considerable pressure as deadlines have to be met during the tax period. The job involves considerable stress as they are responsible for managing finances with no margin for error. Self employed accountants and those working for private firms work for longer hours. Public accountants visit the offices of clients while conducting audits. Accountants and auditors employed by large firms and government agencies travel to clients’ places of business, branch or government offices. Self-employed accountants work at home. The majority of accountants, auditors and tax specialists often work long hours.
Personal Characteristics
Accountants must have good numerical ability and should enjoy working with numbers. An analytical mind to interpret data, a logical and methodical approach helps them present their findings accurately. An ‘innovative’ approach towards performance and presentation of work goes a long way in ensuring success. The ability to think differently and to work out newer solutions is required. High standards of professional conduct or ‘ethics’ in the performance of duties is expected. This is because there is a great amount of responsibility on a CA, towards the society, shareholders and the government, hence integrity is one of the most desirable qualities. A CA has to be ‘insightful’. He should have the ability to find the underlying truth and the capacity to take both, a macro and micro view of things. Good verbal and written expression helps while discussing financial matters with people who do not have a financial background. During financial year closing work hours could be demanding. Business acumen to generate clientele is vital. Accountants must be attentive to detail, patient and industrious.
Employment Avenues
The opportunities in this profession are related to the economic growth of the country. Chartered ered Accountants have varied work options:-
---Independent professional practice is one of the most popular options
-- Employment with a Chartered Accountants firm
-- Capital market services
-- Employment with business houses and industry
-- Employment with consultancy firms
70% Chartered Accountants work in public practice and the remaining are engaged in services in trade and industry. Chartered accountants are engaged in the following kinds of activities in varied set ups:-
-- Preparing project reports and feasibility studies
-- Market research
-- Management accounting, cost analysis
-- Budget planning, working capital management, and inventory control
-- Salary structures and incentive plans
-- Policy planning, organisational planning, growth and diversification
-- Securities consultancy
-- Registrar for an issue of shares and other securities
-- Auditing for quality, energy and environment.
Rapid economic change has led to the opening up of new avenues for CAs. Areas such as technology , risk consulting ( forex, treasury and commodity risks), management information system and management consultancy are offering employment. With the coming of multinationals, the demand for CAs has increased.
Today sucess in the accounting field calls for understanding of broader areas such as e-commerce, business application development and information systems' security. CAs are required to guide the firm/employer through financial systems conversion, upgrades and enterprise application and development.
Earnings
A fresh CA in a medium sized CA firm can earn Rs.1.2- 1.8 lakhs a year while the scales can be higher(4-6lakhs) in the industry.
Experience of 10-15 years can fetch Rs 35-40lakhs
Senior CAs with over 15 years of experience in Private companies get Rs 40- 50 lakhs.
Government scales are standard.
Note: Payscales can change from time to time and job to job.
In the current competitiveness of global markets Cost and Management Accountants have assumed an important role. Cost and Management accountancy has been intimately interwoven into the fabric of management services. The professional expertise of the cost and management accountant aids in stabilising budget and standards, evaluating operating efficiency and effectiveness of production and service managements, formulating the profit planning programme, guiding the managerial decisions and identifying accountability for cost and profit variance. The World Trade Organisation’s policies and regulations regarding global trade necessitates cost structuring.
Multi product ventures has made it essential for operating managers to know the exact cost of each product, for pricing and also for monitoring, planning, controlling group performances of man machine combinations. This is needed to ensure that the expenditure per unit of products or services are the best minimum. While financial accounting aims at ‘accounting for’ the money, cost accounting provides a system for effective utilization of money. The cost accounting system provides the management with an effective system of appraisal and evaluation of investments and alternatives in monetary terms. World over cost accountants are known as management accountants.
Cost accountancy may also be used in unconventional areas of audit such as energy audit, management audit, environment audit etc.
Nature of Work
A Management Accountant collects, organises, collates and analyses information from all parts of the organisation, including all the financial departments. In large organisations, this information may be based on computer based systems designed to maintain detailed and up-to-date records. This makes regular critical analyses of past and present financial performance with projections for the future possible.
Cost and management accountants provide accurate assessments and hence influence decisions. Cost auditing is useful as it provides an evaluative data of a company’s past performance, current product profile offering suggestions for suitable product pricing.
Management accountants monitor all costs involved in making a product or providing a service, from raw materials and labour cost to transport, administrative costs, overheads on buildings, etc. They analyse sales trends. By monitoring performance and efficiency, they can spot and report on problems, provide figures on which to base future pricing policies, and suggest ways of economizing by analysing costs and implications of different production methods.
Budget control
Making regular cost reports for a factory, working out why one set of costs have suddenly risen and what to do about it - is another typical area of responsibility.
This enables companies to develop a competitive edge in their quality of products, customer service, brand image and the like. The ultimate advantage is in maximisation of profits and production which means increased returns to share holders and more funds for investment.
Cost and Management Accountants also act as
-- Executors, administrators, appraisers, valuers, secretarial consultant
-- Tax consultants
-- Advisors in company matters, mergers, acquisitions
-- As key persons in the preparation of feasibility studies, strategic planning of projects at the client’s premises.
Work Environment
Cost and Management Accountancy like other accountancy jobs is a desk job. The work conditions are typical of accountants profession. The job demands concentration and analytical thinking skills and hence can be quite demanding. Coordination with other professionals requires good communication skill and the ability to work with a group.
Personal Characteristics
Analytical and judgemental skills are the most important requirements . Since CMAs apply their knowledge for assessing different kinds of situations and suggesting the right kind of cost prescriptions, an objective outlook is very necessary. Strong awareness of global economic environment is mandatory.
Employment Avenues
Increase in awareness about contributions cost accountants can make to attain business objectives has accentuated the demand for cost accountants in all sectors of the economy. The topmost positions companies can offer to experienced professionals are that of a Managing director, Finance Director, Financial Controller, Chief Accountant, Cost Controller, Marketing Manager, Chief Internal Auditor.
Cost consultancy and teaching offer good work options. Graduates with ICWAI qualification can register for an M. Phil or Ph D programme in commerce. Cost and management accountants work in the All India cadre known as Indian Cost Accounts Service (ICAS).