SHIKSHARTHI - ALMANAC 1

THE EDITORIAL BOARD
HOW TO WRITE FOR
US
SHIKSHARTHI
TUSHAR GUPTA (NEW DELHI)
AKHAND PRATAP SINGH
CHAUHAN (BHOPAL)
G. VINOD KUMAR REDDY
(BANGLORE)
SANDHYA IPPLI
(VISHAKHAPATNAM)
JINENDER GUPTA (JAIPUR)
AASTHA KUNDRA (CHANDIGARH)
AKSHAY BANSAL (NEW DELHI)
ABHISHEK YELNE (AMRAVATI)
THINKING..ACTING..WINNING
Those interested for writing for us
may share their articles at
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which will be reviewed by our
panel and then published after
due compliances.
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This is something that all of us know but only a few realize. Our mission
is to spread knowledge using this magazine as our instrument. We wish
to publish an edition every three months and each edition will cover a
wide range of topics catering to the needs of both students and
professionals.
For the students we will include all updates related to examinations, a
detailed discussion of one topic from our syllabus. Also included will be
entrepreneurial ideas and information about important events and
conventions. In this Edition to current students we hope to reach out to
prospective students, those who do not know what being Chartered
Accountant entails. The current edition has a total of five articles
compiled by some of the best authors aimed at creating awareness
among the readers about this field of education.
We hope that you enjoy this edition and look forward to any feedback
and comments which you may have.
VISION: “TO INFLUENCE, EDUCATE, ENTERTAIN AND HELP TOWARD THE
ECONOMIC PROGRESS AND ENDEAVORS OF INDIAN COMMERCE
FRATERNITY AS A FAMILY.”
MISSION: “TO BE PREEMINENT RESOURCE FOR THE QUALITY
REPORTING AND ANALYSIS OF THE CONTEMPORARY TRENDS THAT
IMPACT EVERY INDIVIDUAL.”
We hope to positively influence the way in which people think and help
to change any negative ideologies that are unfavorable to the progress
of our fraternity.
We plan on delivering first class initiatives on commerce sector. Our
goal is to embody the character, the voice, and the spirit of its readers
because your SHIKSHARTHI is unique.
SHIKSHARTHI endeavors to have a long life cycle reaching,

IN THIS ALMANAC #1
INTERVIEW WITH CA JAY CHHAIRA, CCM ICAI INTERVIEW WITH CS REEMA JAIN, AUTHOR AND
PUBLIC SPEAKER
FORENSIC
AUDITING
LIFE IN A
METRO
CORPORATE
SOCIAL
RESPONSIBILITY
TRANSFER
PRICING
STOCK MARKET FOR BEGINNERS
RESERVATION SYSTEM IN INDIA
SOMETIMES!!!!!! The Pathetic We
Are…..

MESSAGE TO THE READERS
BEHIND ME IS INFINITE POWER,
BEFORE ME IS ENDLESS POSSIBILITY,
AROUND ME IS BOUNDLESS OPPORTUNITY!
THE SHIKSHARTHI TEAM DELVES INTO CREATING A COMPETITIVE, ADROIT YOUTH
ABREAST WITH THE LATEST IN THEIR FIELD. THIS HANDY MAGAZINE ASPIRES TO
BRING TO THE STUDENTS AND THE OTHER STAKEHOLDERS OF THE FINANCE
WORLD, THE LATEST IN BREVITY.
WE UPHOLD THE VISION OF OUR PRIME MINISTER SHRI. NARENDRA MODI WHO
FORSEES INDIA AS BRIMMING WITH ENDLESS OPPORTUNITIES BY THE VIRTUE OF
IT HAVING MAJORITY OF YOUTH POPULATION AS A DEMOGRAPHIC FEATURE.
WE ENCOURAGE STUDENTS AS WELL AS THE CA MEMBERS TO UPGRADE THEIR
SKILLS, KNOWLEDGE AND UNDERSTAND THE WHY OF THINGS AND DEVELOP
GENRAL SKEPTICISM.
WE HEREBY BRING FORWARD THE FIRST EDITION OF SHIKSHARTHI, WILL
DELIVER KNOWLEDGE ON THE LATEST MATTERS BUT WITH A DIFFERENCE SO AS
TO MAKE IT CONCEPTUAL AND EASIER TO DIGEST. RATHER THAN STATING
FACTS, WE FOCUS ON OPINIONS.
WE FOCUS ON THE IMPACT OF THE “FACT” AND THE NEED FOR THE “FACT”.
HAVE A VISION.
IT IS THE ABILITY TO SEE THE INVISIBLE.
IF YOU CAN SEE THE INVISIBLE, YOU CAN ACHIEVE THE IMPOSSIBLE!
WE ASPIRE TO INSPIRE, TO MOTIVATE THE YOUTH WHO ARE THE TORCH BEARERS
OF UPCOMING SUPERPOWER- “INDIA”.
WE BELIEVE IN MOVING FORWARD WITH THE MASSES. HENCE, WE INVITE OUR
READERS TO CONTACT US, DISCUSS WITH US, CONTRIBUTE THEIR IDEAS IN THE
FORM OF ARTICLES AND ALSO GIVE THEIR VALUABLE FEEDBACK.
WHEN EVERYTHING SEEMS TO BE GOING AGAINST YOU, REMEMBER THAT THE
AIRPLANE TAKES OFF AGAINST THE WIND, NOT WITH IT. SHIKSHARTHI AIMS TO
CREATE “WINNERS”. FOR WINNING YOU NEED TO START “ACTING” AND HERE IS
“SHIKSHARTHI” THAT GIVES YOU A PLATFORM TO ACT.
WISHING “HAPPY LEARNING” TO ALL!
TEAM SHIKSHARTHI

CA JAY CHHAIRA
Q1) Sir to being with, I would want to know
what the institute’s roadmap is for the
students.
First and foremost thing is on the roadmap for
the students it is the prerogative of the
president, the vice president and the Chairman
BOS to speak more on that. They are the right
people. But Institute always take proactive
steps for the members, the students and the
profession overall. So about the students, about
the future our endeavors shall be developing
curriculum that will be suitable to the
requirements of the industry of the profession
and looking at the major changes happening
worldwide.
Along with the curriculum will we see that
students get better practical training. Also we
will try to consolidate GMCS, OP and IT and
make it much more flexible and student
friendly, imparting better knowledge.
Furthermore our syllabus should be designed in
such a way that we will like to see that our
students get global acceptance once they get
qualify.
Q2) I heard somewhere that CA Examination
are going to get tougher and also that there is
a lot of changes in the CA Curriculum expected.
Also the result is going down. Can you please
share some of your thoughts?
He is Central Council Member of ICAI, Surat. He
is the Chairman of Committee on Advance
Management Accounting, ICAI. He has been
awarded: Shri Venkat Raman Award by
President of India. He is musician and painter
by heart. He loves travelling and photography.
B.Com., LL.B., F.C.A., A.C.M.A., M.F.C.,
M.B.A.(Fin.), M.F.M., M.A.(Eco.),
M.Bk.M., P.G.D.F.M., D.B.F., D.B.M.,
M.Phil.(Mgt.), A.D.B.A., D.I.M.,
M.B.A.(Inv.),M.Com.(CIM), P.G.D.I.M.,
A.D.M.A.(London),P.G.D.I.B.,
D.I.S.A.(ICAI)

The exams are never tougher or easier. There
should be some particular standard. When a
person is going for CA Curriculum, then he is
mentally prepared that he has to give
examination of particular standard. So
benchmarking the standard is essential time to
time. Now, what used to be CA exams in 1950’s
cannot be the same in 1985’s and so in 2015. So
with the passage of time we look at what is the
requirement of the industry, the government,
the economy, business community. So in
accordance with that we have to set new
standards new benchmark. While setting these
standards we don’t think about making the
paper tougher or easier or passing more
number of students or less. Our focus is one
person who reach the standard, who meets the
expectations of the outer world should clear.
Q3) There is rumor that ICAI Slashes results.
The question itself is the answer that it is a
rumor, it is not a fact. The council always go by
regulations. And the CA Regulations don’t
permit us of reducing marks of any students. As
opposed to that if we find that papers were
unduly lengthy or with ambiguous answers or
the questions were out of the syllabus or
something like that, then in that case we come
in and we increase the marks proportionately.
So, curtailing the results can never be from the
side of the institute. This is purely a rumor. Can
we just imagine that the central council
members sitting at the top can they do
something wrong to the students. If we don’t
want students to pass how will we permit them
to enter the profession. The institute always
want more and more better people to get to
this course. We are not a particular college or
institute who has physical premises. If we go to
some physical college where there is only 100
seats so they have to curtail the result. We are a
distance learning course. So we don’t have any
reason to curtail the result.
Q4) In which college do you study CA? We are
often asked this question. Why CA is not a
regular college?
First and foremost thing is we are an institute
and not an association. ICAI is a regulatory like
reserve bank or SEBI. We are constituted under
the act of parliament. So it’s very good that we
are very focused. While the other universities
focuses on number of aspects. We are focused.
What we want is a generalized person or a
specialized person. We are the specialist. One
important thing that britishers said is that A
penny of practice is much more than pound of
theory. Our institute is much more focused on
practical knowledge rather than classroom
training which can held at the client’s place
which you do through the way of articleship.
Our system is distance more. Along with this we
are providing the requisites say IT Training,
GMCS and at the same time enriching them via
articleship.
Q5) We CA Students normally understood as
that they do hard core study only, So under
the pressure of this we forget other things. In
your opinion what should be our proper
consideration?
Well see this is just true only with a few people.
There are all different type of people. There are
people who all totally book worm and there are
people who are every dynamic. You will find so
many CA Students into so many extracurricular
activities. Don’t you find chartered accountants
very good with dance and music. There are so
many people. Today we have so many ca
students who are good with their studies and
along with those other activities. Citing this
example for a few will be a good idea.
Q5) We have observed amongst the students
that they just do study but there is no proper
goal after becoming CA. Sir what’s your view?

Goal setting is a very essential thing. Vision
mission strategy is key thing. Whatever we
visualize, we actualize. It’s an old saying.
Chartered Accountants have got great
potential. They can go to practice, Industry and
at the same time they can go to
entrepreneurship. If we look in the past they
are very few chartered accountants and that’s
why if we look 3 decades back most of the
chartered accountants were going into practice.
If we look in the past 1 decade many CA are
going into industry. And maybe what I feel is in
the times to come, Indian economy is changing
there will be more and more chartered
accountants going into entrepreneurship. So I
personally feel that CA in practice, industry and
as well as entrepreneurship. We must promote
all the three. Let the person who completes CA
looks into his skills and on the basis of his skill
set he decide whether to go into practice or
industry or entrepreneurship. Yes by the way of
GMCS/Orientation/ IT Training we should see
our CA students must develop goal setting.
Though goal setting is very much personal and
depends person to person. It is the domain of
the student to set his goal.
Q7) Yesterday I was told by a member of the
institute that even if you have a little
approach/reference. It’s easy for you to
become a GMCS/ORIENTATION faculty. So my
question to you, Is GMCS and ITT are really
bringing out students abilities?
Board of Studies can better answer this; I am
not the member of board of studies as of now.
There are some benchmarks, some standards
led down by BOS for becoming the faculties at
GMCS or Orientation. What you are telling
might be true. See we have a number of
branches and number of chapters and so many
organizing units. Maybe at some of the units
this might have happened in a few cases. We
are a membership of 250000. So it might be
possible in 150 branches. This might be true.
But we have a feedback system. And we even
discuss that this feedback system has to be
more strengthen and on the basis of that we
should select only that faculties who are much
more acceptable, much more competent and
knowledgeable.
Q8) We are still competing with top B-School
grads in presentation and skills, being the best
in finance. Placement package of our institute
is little bit low in comparison of top B school.
Where’s the gap which we CA Students should
fulfill to accomplish the par competitive
scenario.
First and foremost thing is the base of
comparison has to be correct. They have their
own thought process. They are into
management. They might go into marketing,
finance. We are focused on very clearly on
profession. Now you will find some chartered
accountants maybe getting lower package than
a top B-School grad and on the same hand you
will find some CA performing very well. It very
much depends upon person to person. Yes! We
CA are technically very strong. The student has
to take own initiative to groom himself. He has
to become more presentable. Our
communication skills have to be further
improved along with public speaking. We don’t
have to be compared with any B-School. We
have a premium position.
Q9) With due respect Sir to you and CA, there
are few CA involved in frauds, misstatements
and even allegedly sexual harassment! How
safe is it for girl CA Student and what measures
is our institute taking?
Let us understand one thing; there are black
ships in all the professions. Let it be lawyers,
doctors, Chartered Accountants, politicians etc.
So we can’t be extinct from all these things. No!
We read in newspaper in Delhi about a case and

we start believing it. But we have to understand
that it happened with one amongst a crore
population. These are stray cases. I don’t say CA
doing wrong is right. But if Chartered
Accountants are wrong, we have a very strict
disciplinary mechanism. If a CA is guilty about
anything, Disciplinary committee takes action
against him. Ultimately CA is a human being and
a human being is full of emotions. So
sometimes he might go wrong. But because of
this entire profession cannot be blamed. As far
as females are considered, they are very safe
and I would say the safest profession and it
gives flexibility.
Q10)Your Biggest Asset and Strategy in crises?
The biggest asset is Way of Thinking, not only
me but for every human being because its your
thoughts who creates you.
I don’t think there is any crises. In life there is
something good things happening to you and at
the same time there some bad thing happening
to you, so you term it as crises.
Q11) If you were not a Chartered Accountant,
you wouldn’t have been?
If I was not a CA, I would have been a singer or
painter.
Q11) A film that has left an impact on you.
Actually there are many.
 Lage Raho Munna Bhai MBBS
 3 idiots.
Your message for our readers!!
I am no one to give message. But still I would say that you have to live, live very passionately and the
person who really enjoys his books. Since your readers are students, the message to them would be if
you are studying just for passing exams then you doing half work. Then you cant be successful. But if
you’re studying with such an interest that you and your accounts becomes one identity, it will be such a
beautiful and amazing. You’ll enrich your life. Then there is no doubt on success.

CORPORATE SOCIAL RESPONSIBILTY
BY: TEAM SHIKSHARTHI
India is a country of myriad contradictions. On
the one hand, it has grown to be one of the
largest economies in the world, and an
increasingly important player in the emerging
global order, on the other hand, it is still home
to the largest number of people living in
absolute poverty (even if the proportion of poor
people has decreased) and the largest number
of undernourished children. What emerges is a
picture of uneven distribution of the benefits of
growth which many believe, is the root cause of
social unrest. Corporate Social Responsibility is
that whatever we do today will have an impact
on future generations. It’s not just my kids or
your kids or somebody else’s. It’s future
generations. We should not hope that the walls
we build to protect ourselves will be tall enough
to protect our children. Only with very
conscious effort we can make the world for
them a better place to live…even if we address
our most selfish needs we have to address the
needs of the next generation. That’s what CSR is
about.
Section 135, Companies Act 2015
The Companies Act 2013 is enacted in phases. As many as 98 sections were notified wef from 12th
September 2013 and 183 sections wef 1st April 2014. Section 135 of the act deals with corporate social
responsibility. The act clearly states that the provisions are applicable to following companies:
 NET WORTH OF Rs. 500 CRORE OR MORE
 TURNOVER OF Rs. 1000 CRORE OR MORE
 NET PROFIT OF Rs. 5 CRORE OR MORE
For every financial year, CSR spending would be computed as 2% of the average net profits made by the
company during every block of three preceding financial years.
 Net Profit for the section 135 and CSR rules shall mean net profit before tax as per books of
accounts and shall not include profits arising from branches outside India.
 For this purpose, the average Net Profit will be calculated in accordance with the Section 198
of the Companies Act, 2013.
Calculation of Net Profit
As per Rule 2(f): “Net profit” means the net
profit of a company as per its financial
statement prepared in accordance with the
applicable provisions of the Act, but shall not
include the following, namely :-
(i)Any profit arising from any overseas branch
or branches of the company whether operated
as a separate company or otherwise;
(ii)Any dividend received from other companies
in India, which are covered under and
complying with the provisions of section 135 of
the Act.

Provided that net profit in respect of a financial
year for which the relevant financial statements
were prepared in accordance with the
provisions of the Companies Act, 1956 shall not
be required to be recalculated in accordance
with the provisions of the Act. Provided further
that in case of a foreign company covered
under these rules, net profit means the net
profit of such company as per profit and loss
account prepared in terms of clause (a) of sub
section (l) of Section 381 read with Section 198
of the Act.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE MANDATE
The Corporate Social Responsibility Committee is appointed by the Board of Directors to assist the Board
in carrying out its responsibilities in respect of health, safety, environment and corporate social
responsibility. The Committee will be composed of at least three directors as designated by the Board
from time to time. It must comprise of 3 or more directors with at least one independent director,
Composition to be disclosed in the annual Board of Directors’ report.
Functions of CSR Committee:-
Formulate and recommend to the board, a
corporate social responsibility policy which shall
indicate the activities to be undertaken by the
company.
Recommend the amount of expenditure to be
incurred on activities.
 Monitor the corporate social responsibility
policy from time to time.
 Preparing the transparent monitoring
mechanism to ensure the proper
implementation of the activities undertaken by
the company
ROLE OF THE BOARD
The Board of every company referred to above
shall after taking into account the
recommendations made by CSR Committee:
 Approve the CSR Policy for the company
and disclose contents of such Policy in
its report and also place it on the
company’s website, and
 Ensure that the activities as are
included in CSR Policy of the company
are undertaken by the company, and
 Ensure that the company spends, in
every financial year, at least two per
cent of the average net profits
 If the Company fails to spend such
amount, the Board shall, in its report
specify the reasons for not spending
the amount.
“Average net profit” shall be calculated in accordance with the provisions of section 198 of the
Companies Act 2013.
CONTENTS OF CSR POLICY
The CSR Policy of the company shall include:-
 Projects and programs that are to be undertaken.

 A list of CSR projects/programs which a company plans to undertake, which may also focus on
integrating business models with social and environmental priorities and processes in order to
create shared value, specifying modalities of execution in the areas / sectors chosen and
implementation schedules.
 CSR Policy of the company should provide that surplus arising out of the CSR activity will not
be part of business profits of a company.
 CSR Policy would specify that the corpus would include the following:
a). 2% of the average net profits,
b). any income arising there from
c). surplus arising out of CSR activities.
Format of Reporting
 Format for the annual report on CSR initiatives to be included in the board report by qualifying
companies.
 Provide a brief outline of the company’s CSR policy including the statement of intent reflecting
the ethos of the company, broad areas of CSR interest and an overview of activities proposed to
be undertaken.
 Indicate the web-link to the CSR Policy. The Policy should include the full list of projects /
activities / programs proposed to be undertaken by the company.
 The composition of the CSR Committee.
Content of the Reporting
 Average Net Profit of the company for last 3 financial years.
 Details of CSR activities/projects undertaken during the year:
 Total amount to be spent for the year
 b) Amount carried forward from earlier years
 c) Amount spent during the year
 d) Amount carried forward for the year.
 To be signed by CEO/Managing Director / Director or Chairman CSR Committee.
 A Responsibility statement, of the CSR Committee, that the CSR policy implementation and
monitoring thereof is, in letter and spirit, in compliance with CSR objectives.
CSR via Sec. 8 companies
Where a company has set up an organization
which is registered as a Trust or Section 8
Company, or Society or Foundation or any other
form of entity operating within India to
facilitate implementation of its CSR activities in
accordance with its stated CSR Policy, the
following shall apply: the contributing company
would need to specify the projects/programs to
be undertaken by such an organization, for
Utilizing funds provided by it; the contributing
company shall establish a monitoring
mechanism to ensure that the allocation is
spent for the intended purpose only;
Why is the CSR clause of the new Companies
Act, 2013 so critical for SMEs?
By requiring companies, with a minimum net
profit of 5 crore INR, to spend on CSR activities,
the Companies Act, 2013 is likely to bring in

many SMEs into the CSR fold. This will usher in a
fresh set of challenges to a sector that is
increasingly being asked by its B2B customers to
comply with environmental and social
standards, while remaining competitive in
terms of price and quality. Thus, SMEs will have
to quickly learn to be compliant with these
diverse set of requirements and it is hoped that
this handbook will facilitate their ability to
comply with the CSR clause of the Companies
Act, 2013.
“No Success or achievement in material terms is worthwhile unless it serves the needs or interests of
community” said by J.R.D TATA

UNION BUDGET 2015-16
The Finance Minister said: Kucch Toh Phool Khilaaye Hai Humne.. Kucch Aur Khilane Hai
Dikkat Yah hai ki Raho mei Kae Kaante Purane hai
On the other hand: 2015 Budget will further reignite our growth engine, signalling the dawn of a
prosperous future .- Narendra Modi
Prime Minister Narendra Modi lauded and applauded the Budget, calling it a ‘progressive, positive,
practical, pragmatic and prudent’ one. The Budget 2015 had a distinct focus on farmers, youth, poor,
neo-middle class and the ‘Aam Nagrik’. “It delivers on growth, equity & job creation, Bankruptcy law,
Accidental insurance, Wealth Tax Abolishment, Moving towards GST, FMC merging with SEBI. It is one
which will take our economy closer to Development, Magnanimous Development!
However, an adequate roadmap and framework is required to turn the same into reality. Intention
alone stands nowhere, it requires action.
To some extent, it seems more as a “pro-corporate budget”. It seems more as a bundle of promises.
There are several hopeful things about the budget. But it would have been better if the service tax hike
had been avoided.
This is an extra Long Term budget and it significantly favors the Aged. In Management theory, we all
know that extra long term has no meaning and guarantee unless it is properly supported by short term
benefits and growth. In a way, it can also be termed as the Growth Strategy of this government.
DRAMATIC AMENDMENTS AND CERTAIN ANOMALIES in the FINANCE BILL, 2015
1. Assessees who Love cash transactions shall
have to face tough tax proceedings.
2. Property related transactions are to be
routed through the BANKING CHANNEL only.
Previously, the Rokda deal was the concept.
3. BLACK MONEY HOLDERS may “resort” to
“SLEEPLESS” NIGHTS. Black money shall be
curbed now by means of establishment of a bill.
But, was the current regime not good enough
or was it facilitating pooling out of money from
the nation or into it?
4. If you don’t maintain your books, papers,
documents and records properly, the
Department shall now record the same, without
your knowledge.
5 . Instead of providing relief and reducing
corporate tax by 5%, they should have
encouraged CSR policy and swachh bharat
abhiyaan and these must have been provided
100% deduction of expenditure.
Budget disappoints on energy factor
The expectation were really high on this front,
however, the delivery was pretty much
moderate. Increase in Clean Energy Cess,
setting up of five new ultra mega power
projects,

 Coal-based power generation plants will
see costs increase across the board due
to higher cess.
 Companies that have merchant power
capacities and no power-purchasing
agreements (PPAs) will be affected the
most.
 Push for large power projects may see
cautious response from existing
companies, as many of their power
projects are suffering from non-
remunerative PPAs and low interest
from electricity boards.
 The allocated petroleum subsidy may
fall short if international crude oil prices
rise sharply and lead to higher losses on
selling fuel below cost (or under-
recoveries).
Tax Free Bonds are back?
As expected one of the key areas of focus this
year was infrastructure spending. Along with an
incremental expenditure of Rs.70,000 crore by
the government in infrastructure projects for
2015-16, the finance minister proposed
establishing National Investment and
Infrastructure Fund with an annual flow of
Rs.20,000 crore. In another attempt to boost
the infrastructure sector, finance minister has
proposed to bring back the tax-free bond.
Tax-free bonds are secured, redeemable, non-
convertible debentures issued by government
entities to individuals and institutional investors
to mobilize funds needed for projects in the
infrastructure development sector. These are
long-term in nature with maturity periods
ranging from 10 to 20 years and the interest
earned on these bonds is tax free for the
holder.
The interim budget of 2014, the last one for the
Congress-led government, was silent on these
bonds. We haven’t seen fresh money being
raised through these bonds so far in FY15. The
proposed issue of such bonds in Budget 2015
can restart this product. Investors looking for
regular income will find use for these bonds.
Foreign investors can bring in large funds for
these bonds but since they may have to pay tax
on these bonds in their own countries, the
interest from them isn’t high.
Infrastructure Hogs the Limelight:
Clear direction to improve ease of doing
business and develop infrastructure. Sustained
commitment to housing will boost demand for
dwelling units, and rationalization of REIT
operations will help ailing real estate companies
improve cash flows. New projects in roads,
ports, railways with new public-private
partnership models and with clearances in
place, will revive interest and widen base of
construction firms. It will also improve demand
for capital goods, cement and steel.
What do the markets want ?
It’s not that the budget did not have anything creditworthy; it’s just that there’s a big difference
between pre-budget expectations of the market and what was actually delivered. Thankfully, the
finance minister has been far more reasonable with estimates on revenue receipts. The positives are:
- The growth estimated for both direct and indirect taxes are far lower compared to the overly
optimistic estimates in the previous budget. Ease of doing business
- The deferment of GAAR (General Anti-Avoidance Rules),
- The clarity on non-applicability of minimum alternate tax (MAT) on foreign institutional investors
- Pass-through status for alternative investment funds (AIFs)
- A proposed new bankruptcy law
- The proposed reduction in taxation of companies
- Policy stance favoring investments in productive assets such as equities (by encouraging pension
savings), and away from assets such as gold.

- Measures to curb the use of cash in real estate transactions and the general effort to stamp out the
use of black money
The 4,44, 200 announced by FM.
Tax Benefits that can be claimed by an individual in addition to the tax exemption:
Deductions under 80C Rs.1,50,000
Deductions under 80CCD for contribution to NPS Rs. 50,000
Interest on house property loan Rs. 2,00,000
Exemption with new transportation allowance of Rs. 1,600 per
month
Rs. 19,200
New deductible health insurance premium: Rs. 25,000
Total Rs. 4,44,200
Benami Property Transaction Bill
A “comprehensive new law to track black money” would be framed. There will be rigorous
imprisonment of 10 years under black money law. A new structure including e-filing and tracking down
is the abiding commitment of Mr. Finance Minister.
Clean Ganga Fund and Swachh Bharat Kosh
100 percent tax exemption in Corporate Social Responsibility activities for Clean Ganga Fund and
Swachh Bharat Kosh has been announced. However, the wish-list was of CSR spending be allowed as
deduction or weighted deduction for the purpose of computing tax liability.
Increase of Service Tax
Service Tax Rate has been increased from 12.36 to 14%. Where exemptions or abatements were
expected, what has come in this mixed bag is taxation of basic amenities, treating even the basic
amenities as luxury. A cup of coffee at the nearby shop, a beauty service or a movie at the nearby
multiplex, may become a dream for many, for whom it was first a source of relaxation or entertainment.
This would also heavily affect the pockets of college-goers for whom such activity was fun.
Amusement and entertainment events, construction contracts for ports/ airports and services of mutual
fund agents are proposed to be exempted in service tax law. Also service tax exemption has been
extended to Cold Storage Housing and Varishtha Bima Yojana. This will impact in reducing agricultural
prices a bit and senior citizens to get insurance done in a cheap way. The implications of applying tax on
all services provided by Government to business entities needs to be analysed in the context of rights
and license fee arrangements.
Excise Duty
Excise duty has also undergone a round off in rate from existing 12.36% to 12.5% including cess.
Government plans to reduce Manufacturing cost across all sectors. However, rates have been reduced
to promote manufacturing in sectors such as electronics, renewable energy, electronic and footwear. In
fact tax on footwear of more than Rs. 1000 will be reduced to 6% to boost leather industry. While the
petroleum duty rates have been restructured (Rs. 2/liter to Rs.8/liter), there is no change in the net

incidence. Tobacco Products got costlier as tax on them increased as Excise duty on tobacco increased to
Rs70/Kg from Rs60/Kg. Clear energy Cess increased from 100% to 200% per metric ton of coal to finance
GREEN ENERGY FUND.
Customs Duty
The median rate of customs duty has been increased from 28.85% to 29.44%. Proposals have been
made for rationalization of duty inversion with intent to promote manufacturing in India which had
been on a decline in the recent past. Custom duty on commercial vehicles increased to 40% from 10%.
Tax on Domestic Manufacturing and import reduced to support Made in India and in these cases its
100% exemption. Removal of SAD on IT Products is to boost IT Products.
CENVAT
This budget gives increase in the duration of time-limit for availing Input Tax Credits from 6 months to 1
year is a great change. This should provide industry, a much required flexibility and time, to ensure that
there are no credit leakages on account of timelines. As much as Rs.4 Lakh Crores is in litigation.
Multiple options have been provided to foreclose matters in dispute by payment of reduced penalties, a
good proposition to help taxpayers reduce litigation.
Ease of Doing Business
A key proposal for quick registration process and digital maintenance of electronic records by assessee
which reflects the Government’s commitment to provide ease of doing business in India. Approvals for
14 regulatory bodies shall stand subsumed at one portal – Ebiz Portal.
GST
It shall finally be implemented from 01.04.2016.
CONCLUSION
It seems overall as a Straight and a blunt budget which can indeed be a game-changer if implemented
on a strict note. Budget 2015 has laid a strong message, that of setting a growth agenda as well as that
of simplification and rationalization. The expectation now from the Government is to work single-
mindedly on this target, paving way for the much awaited transformation in the tax regime.
This is written by Reema Jain & Associates, a firm of Practicing Company Secretaries, based in
New Delhi, India.
They can be reached at: reema@reemajainassociates.com

The MONK-This piece of Art is sketched by Ms. Shreya Sharma. She is into sketching
since last decade. She is pursuing Bachelors in Commerce from University of Delhi. She can be reached
at: sharmashreya0401@gmail.com

FORENSIC AUDIT
By: Team SHIKSHARTHI
The concept of Financial Auditing may be defined as “a concentrated audit of all the
transactions of the entity to find the correctness of such transactions and to report whether
or not any financial benefit has been attained by way of presenting an unreal picture”.
Forensic auditing aims at legal determination of whether fraud has actually occurred. In the
process, it also aims at naming the person(s) involved (with a view to take legal action).
Application of forensic audit
Forensic Accounting and Audit may be applied in the following areas besides fraud
detection:
(a) Conducting due-diligence (especially for segment wise profitability analysis)
(b) Business valuation
(c) Management auditing
(d) Assessing loss before settling insurance claims.
Distinction between Statutory Audit and Forensic Audit
S.NO P A R T I C U L A R S S T A T U T O R Y A U D I T F O R E N S I C A U D I T
1. Objective Express opinion as to ‘true & fair’
presentation
Determine correctness of the
accounts or whether any fraud has
actually taken place.

2. Techniques ‘Substantive’ and ‘compliance’
procedures.
Analysis of past trend and substantiveor ‘in de
3. Period Normally all transactions for the
particular accounting period.
No such limitations. Accounts
may be examined in detail from
the beginning.
4.
Verificationofstock,estimationofrealizablevalueofcurrentassets,
provisions/ Liability estimation, etc.Relies on the management certificate/representation of management.Independent verification of suspected/selected
5. Off balance-sheet items Used to vouch the arithmetic accuracy
& compliance with procedures.
Regularity and propriety of these
Transactions/contracts are examined.
6. Adverse findings, if any Negative opinion or qualified
opinion expressed, with/without
quantification.
Legal determination of fraud and
naming persons behind suchfrauds.
Detection Techniques
Forensic auditing should focus on significant transactions – both as reflected in financial
statements and off balance sheet items The techniques mainly are ‘Critical Point Auditing’
and ‘Propriety Auditing’.
(A) Critical Point Auditing:
Critical point auditing technique aims
at filtering out the symptoms of fraud
from regular and normal transactions
in which they are mixed or concealed.
For this purpose, financial statements,
books, records, etc. are analyzed
mainly to find out:
(i) Trend-analysis by tabulating
significant financial transactions
(ii) Unusual debits/credits in accounts
normally closing to credit/debit balances
respectively
(iii) Discrepancies in receivable or
payable balances/inventory as evidenced
from the non reconciliation between
financial records and corresponding
subsidiary records.
(iv)Accumulation of debit balances in
loosely controlled accounts
(v) False credits to boost sales with
corresponding debits to non-existent
personal accounts
(vi)Cross debits and credits and inter-
account transfers
(vii) Weaknesses/inadequacies in
internal control/check systems, like
delayed/non-preparation of bank
reconciliation statements, etc.
(B) Propriety Audit:
Propriety audit is conducted by Supreme
Audit Institutions (SAI) to report on
whether Government accounts, i.e., all
expenditure sanctioned and incurred are

need-based and all revenues due to
Government have been realized in time
and credited to the government account..
In conducting the propriety audit, “Value
for Money audit” technique aims at
lending assurance that economy,
efficiency and efficacy have been achieved
in the transactions for which expenditure
has been incurred or revenue collected is
usually applied. The same analogy, with
modifications to the principles of
propriety of public finance, applies in
forensic audit to establish fraudulent
intentions if any, on the part of the
management. Financial frauds are results
of wasteful, unwarranted and unfruitful
expenditure or diversion of funds by the
investigated entity to another entity.
Examination methods:
(a) Tests of reasonableness:
 Check weaknesses in internal
controls
 Identify questionable transactions
– indicating wide fluctuations from
the normal onesand not, in
general, related to main objectives.
 Review questionable transaction
documents for peculiarities, like
improper account, classifications,
pricing, invoicing, or claims, etc
(b) Historical Comparisons
 Develop a profile of the entity
under investigation, its personnel
and beneficiaries, using available
information.
 Identify questionable accounts,
account balances, and
relationships between accounts,for
finding out variances from current
expectations and past
relationships.
 Gather and preserve evidence
corroboratingasset losses,
fraudulent transactions,
andfinancial misstatements.
Off-Balance Sheet Transactions:
There are certain transactions not prima
facie discussed in the financial statements
and nor suitable disclosures made. Since
these are intangible in financialstatement,
or auditor may not consider these as
significant or material, no
statement/qualification is normally made
in auditors’ report. These may
encompass:
1. Significant purchases/sales of raw
materials and/or finished goods

with only a particular dealer or
group companies of such vendor.
2. Pattern of consumption of major
raw materials/components,
indicating excess consumption.
3. Over/under-invoicing for capital
goods, raw-materials/components,
services, etc. as comparedto
normal arms’ length prices for the
same. (both in related party
transactions and in general)
Alteration (amendment and
deletion) of contractual terms, to
pass on otherwise accrued benefit,
to holding/group companies.
4. Diversion of funds through group
companies andsetting off such
debits asexpenditure in
accountswith proper authorization
before closure ofaccounts to avoid
detection.
5. Cost over–runs in major capital
expenditure without
corresponding benefit or
convincing reasons.
6. Justifications for non-maintenance
of certain basic records, on
technical grounds, but with
intention to defraud.
Aspects to be covered
Objective of forensic audit is to find whether or not a fraud has taken place. Forensic
auditor shall have to examine voluminous and in totality, records and witnesses, if
permitted by law. Proper documentation is vital in substantiating the findings. The
outcome shall focus on the following, in case of frauds:
 Proving the loss
 Proving the responsibility for the loss
 Proving the method/motive
 Establishing guilty knowledge
 Identifying other beneficiaries.
Conclusion:
Forensic auditing combines legalities alongside the techniques of propriety, regularity,
investigative, and financial audits. The main aim is to find out whether or not true
business value has been reflected in the financial statements and whether any fraud has
taken place. It differs, altogether, in form and content from the statutory audits of financial
statements. It may be beneficially applied in other areas where due diligence exercise is
required to be carried out.

International Transaction in Transfer Pricing
Transfer Pricing in India: Trends and History
India has embraced Transfer Pricing in 2001. Indian regulations have been generally in line with OECD
principles.
Indian TP regulations are known for detailed documentation requirements. Steep penalties up to 4% of
the value of transaction are levied in case of non-compliance.
India has been reported to be the Second toughest Transfer pricing jurisdiction in the world by
renowned magazine TP week. India is only behind Japan.
Key Sections in Transfer Pricing
Transfer pricing in India is contained in a distinct Chapter X titled Special Provisions relating to Avoidance
of Tax .It contains sections from 92 to 94A.
The Sections 92 to 92F exclusively dealing with Transfer pricing. They have been enacted with intent to
lay down the statutory framework which proscribes the shifting of profits otherwise taxable in India to
other countries using the veil of intra group transactions.
Section 92 is the pivotal section which lays
down that
Any income from an international transaction
shall be computed having regard to arm’s
length price.
Allowance for any expense or interest arising
out of an international transaction also shall be
computed having regard to arm’s length price
as clarified by the explanation.
What is Arm’s Length Price?
Section 92F (ii) defines that
Arm’s length price means a price applied or
proposed to be applied in a transaction
between persons other than associated
enterprises in uncontrolled conditions.
The origin and meaning of Arm’s length price is
interesting.
Conditions for
adopting ALP
Two or more
Enterprises
Enterprises are
Associated
International
Transaction

PART I International Transaction
Section 92B (1)defines the Meaning of
International Transaction:
a. Transaction between
b. two or more associated enterprises
c. either or both of whom are non-
residents,
In the nature of:
d. purchase, sale or lease of tangible or
intangible property,
e. or provision of services,
f. or lending or borrowing money,
g. or any other transaction having a
bearing on the profits, income, losses or
assets of such enterprises,
And includes:
Mutual agreement or arrangement
between two or more associated
enterprises for the allocation or
apportionment of, or any contribution
to, any cost or expense incurred or to
be incurred in connection with a
benefit, service or facility provided or to
be provided to any one or more of such
enterprises
Deemed International Transaction 92B (2)
Any transaction between enterprise and
other than associated enterprise shall be
deemed as international transaction if:
 There is prior agreement between
other person and enterprise
 Enterprise or associated enterprise
or both of them are non-resident
Section 92B has been amended with
retrospective effect from assessment year
2002-03. The explanation to Section 92 clarifies
that international transaction includes:
a) the purchase, sale, transfer, lease or
use of tangible property
b) the purchase, sale, transfer, lease or
use of intangible property
c) capital financing
d) provision of services
e) a transaction of business restructuring
or reorganization, irrespective of the
fact that it has bearing on the profit,
income, losses or assets of such
enterprises at the time of the
transaction or at any future date
PART II Two/More Enterprises
“Enterprise” means a person (including a permanent establishment of such person) who is, or has been,
or is proposed to be, engaged in
a) any activity, relating to the production, storage, supply, distribution, acquisition or control of
articles or goods, or
b) Any IPR of which the other enterprise is the owner or in respect of which the other enterprise
has exclusive rights,
c) or the provision of services of any kind,

d) in carrying out any work in pursuance of a contract
e) in investment
f) provision of loan
g) business of acquiring, holding, underwriting or dealing with shares, debentures or other
securities of any other body corporate,
Whether such activity or business is carried on, directly or through one or more of its units or divisions
or subsidiaries, or whether such unit or division or subsidiary is located at the same place where the
enterprise is located or at a different place or places
Transfer Pricing: Introduction
A significant volume of global trade nowadays
consists of international transfers of goods and
services, capital and intangibles (like IPR) within
a MNE group. Such intra‐group trade is growing
steadily and arguably accounts for more than 30
percent of all international transactions.
It becomes important to establish the right
price, called the “transfer price”, for
intra‐group, cross‐border transfer of goods,
intangibles and services.
Transfer pricing is the general term for the
pricing of cross‐border, intra‐firm transactions
between related parties. It is the setting of
prices at which transactions occur involving the
transfer of property or services between
associated enterprises, forming part of an MNE
group.
The effect of transfer pricing is that the parent
company or a specific subsidiary tends to
produce insufficient taxable income or
excessive loss on a transaction.
According to the Government Accountability
Office, a five-story building called “Ugland
House” in Cayman Islands is home to nearly
twenty thousand(18,857 ) corporations. That’s
impressive, especially for such a small edifice.
(Perhaps it has supernatural half-floors and
space-time defying “mind tunnels”)
Ugland House’s distinction pales next to that of
Corporate Trust Center, 1209 North Orange
Street in Wilmington, Delaware. According to
one investigation, the same address is home to
217,000 corporations.
PART III Associated Enterprises:
Meaning of Associated Enterprise Section 92A
Associated Enterprise is an enterprise which participates, directly or indirectly, or through one or more
intermediaries, in the management or control or capital of the other enterprise; or
Similar persons participate in management, control or capital of an enterprise.
Two enterprises shall be deemed to be associated if during any time of the year:

(a) one enterprise holds, directly or
indirectly, shares carrying not less than
26% of the voting power in the other
enterprise; or
(b) any person or enterprise holds, directly
or indirectly, shares carrying not less
than 26% of the voting power in each of
such enterprises; or
(c) a loan advanced by one enterprise to
another constitutes not less than 51%
of the book value of the total assets of
the other enterprise; or
(d) one enterprise guarantees not less than
10% of the total borrowings of the
other;
(e) more than half of the board of directors or members of the governing board, or one or more
executive directors or executive members of the governing board of one enterprise, are
appointed by the other enterprise;
X Ltd
India
Y Inc
Singapore
X
Ltd
Y Ltd
Z inc
X Ltd
India
BV: 1200 Cr
Y Inc
UK
BV: 1500 Cr
X Ltd
India
Loans : 500 Cr
Y Inc
USA
Loans: 800 Cr
X Ltd
India
5 member
board
Y Inc
USA
2 member board
Holds 51% of Capital
A
E
Advances Loan of 700 Cr Guarantees Loans of 95 Cr
Appoints 4 Directors or 1 ED

(f) more than half of the directors or
members of the governing board, or
one or more of the executive directors
or members of the governing board, of
each of the two enterprises are
appointed by the same person or
persons;
(g) the manufacture or processing of goods
or articles or business carried out by
one enterprise is wholly dependent on
the use of any IPR, of which the other
enterprise is the owner or in respect of
which the other enterprise has
exclusive rights;
(h) 90% or more of the raw materials and consumables required for the manufacture or processing
of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by
persons specified by the other enterprise, and the prices and other conditions relating to the
supply are influenced by such other enterprise;
P Ltd
Q Ltd
7 member
board
R Inc
4 member
board
Y Inc
Sweden
X Ltd
Owner of IPR
Y Inc
X Ltd
Supplier
Appoints 4 directors
or 1 ED
Wholly dependent on IPR
Appoints 3 directors or 1 ED
A
E
Supplies > 90% RM, FG

(i) the goods or articles manufactured or processed by one enterprise, are sold to the other
enterprise or to persons specified by the other enterprise, and the prices and other conditions
relating thereto are influenced by such other enterprise;
(j) and (k)
One enterprise is controlled by Another enterprise is controlled by
Individual Individual or Relative or Jointly
HUF HUF or member of HUF or jointly
A Ltd
B Inc
Supplier
C Inc
Determines
Prices
A Ltd
Seller
B Ltd
A Ltd
Seller
B Inc
C Inc
Determines
Prices
Supplies > 90% RM,
FG
Associated Enterprises
Sells Goods
Associated Enterprises
Price and other
conditions influenced

(l) Where one enterprise is a firm, association of persons or body of individuals, the other enterprise
holds not less than 10% interest in such firm, association of persons or body of individuals;
(m) Otherprescribed relationship of mutual interest(Nothing prescribed)
Conclusion
With businesses focused on erasing the physical borders, International business will be in vogue.
Taxation cannot be an overriding factor in making investment decisions. A survey conducted by Ruding
Committee revealed that almost half of multinationals in EU consider tax rates on business profits to
determine the location. Being armed with adequate knowledge is the only way a prospective CA can
deal daily with international taxation issues.
By: NANDITH Y.K.M.D
NANDITH is all Indian Topper in CA-CPT, CA-IPCC, CWA-FOUNDATION AND
CWA-INTER. He is pursuing his Industrial Training with SIFY TECHNOLOGIES. He
is a great CHEF and Gardner by heart.
He can reached at; ykmdnandith@gmail.com

STOCK MARKET- FOR BEGINNERS
Mr. Rakesh Jhunjhunwala, a qualified Chartered
Accountant, is regarded as the ace investor of
India or I should the ‘Badshah of Dalal Street’ or
‘The Warren Buffett’ of India. He started trading
in stock market when he completed his CA in
1985 (when BSE Sensex was at 150) with about
Rs.5000. His net worth as on January 2, 2015 is
a massive USD 1 billion. You can guess how
powerful the man is, that on January 30, 2015
he bought 30 lakhs shares of Man
Infraconstruction and the stock had a rally of
about 11%. So how did it all happen? Yes,
stock market.
Why I started this article with Mr. Rakesh
Jhunjunwala is because I want you to get a little
motivated, it was to give you guys a little push
towards stock market. It is nothing wrong
investing in stock market. All we have to do is
just have some financial literacy and analysis. So
this article of mine is dedicated to people who
are new or are interested in stock market or I
should the potential investors of our country.
The figure given below shows the structure of
capital market in India.
A stock exchange is a trading platform where
buyers and sellers can meet to transact in
securities. However it should not be confused
with stock market. A stock market represents
the companies that list equity shares for public
investors to buy and sell.
Some basic terminology that is used in stock
market is briefly defined below:
 Ask Price: The price you are asked to
pay when you buy a stock
 Bear market: Period of time when
prices in the market are generally
declining
 Bid: Highest price a buyer is willing to
pay for a stock.
 Blue chip: Stocks of leading and
nationally known companies
 Bull market: period when stock prices
are rising.
 Contract note: Details of a transaction
in a stock exchange sent by your broker.
CAPITAL MARKETS
PRIMARY
MARKET
SECONDARY
MARKET
THE NEW ISSUE
MARKET
STOCK
EXCHANGE e.g.
BSE & NSE
STOCK MARKET- FOR
BEGINNERS

 Day High: Highest price that a security
has traded during the day
 Day low: Lowest price that a security
has traded during the day
 Delivery: Type of trading where
investors pay the money for the stock
and you can hold the stock as long as
you want to.
 Fair value: The true value of stock.
 Intraday: Trading that takes place for
that very particular day and there is no
delivery.
 Limit Order: An order to buy or sell
stock at a specified price.
 Market Capitalization: Valuation of the
company based on its current market
price multiplied by the number of
shares outstanding.
 Settlement Date: Date when a
securities buyer must pay for a
purchase or a seller must deliver the
securities.
 Stop Loss: A price you order below
which you cannot afford losses. This is a
safe game. As soon as the market price
reaches the specified price or below
that, the order gets triggered.
Stock market for many is gamble but the reality
is far from that. I won’t say it’s riskless place of
investment but is the only place which gives you
huge gains. Whenever I say huge gains, I mean
gain only when invested for a long term. Shares
not only provide you with annual income in the
form of dividend but it also help in capital
appreciation.
If making you aware of stock market was my
responsibility , it is also my responsibility to
protect your investment (capital). Being a
Warren Buffett fan I would state one of his
quotes. He says “there are only two rules to
investing, first always try to protect your capital
and second, never forget the first one”. This is a
wonderful piece from him. What people
generally do is they get greedy and their greed
sometimes takes a downturn and they suffer
huge losses. Below are some tips to consider
before you invest in stock market:
 Fundamental analysis: One of the biggest mistakes some investors make is they invest in
companies they don’t even know about, their growth potential, the sector which it belongs to
etc. Try to analyze their balance sheet and profit & loss and their annual report as well. Never
invest in business you cant understand.
 Don’t be a complex man: Never try to get into too much analysis as extra analysis is paralysis.
Try to keep as simple as you can, know some basic companies try to study them and then invest.
 Be a long term investor: I always advice beginners to invest for a longer term. It has always
been proved that equity market give best return when invested over for 10 to 20 years.
According to the report of a leading brokerage firm, the Indian equity markets have given 17%
return in last 10 years. Forever is a good holding period. Avoid trading in intraday.
 Be fearful when others are greedy and greedy when others are fearful: Once again a Warren
Buffett quote.
 Don’t be afraid of losses: Never be afraid of losses, always create a stop loss.

 Always look after your portfolio: Be updated with your portfolio. Your portfolio is like a tree,
keep watering it.
 Make yourself aware: There many applications available which keep you updated about
economy and stock market like moneycontrol, ET markets etc, download them.
 Read books: I would also suggest you to read some good books on stock market like Beating the
Street by Peter Lynch, Rich Dad Poor Dad.
A stock exchange is a barometer of our
economy, more importantly it is a barometer of
our life, of our consumption. If you ask your
parents how did they live their lives when they
were in their twenties, they’ll surely say, we did
not have facilities you enjoy today. So what do
we do now, we consume more. Our
consumption increased i.e. our purchasing
power increased and so did the growth of our
economy. Anticipating how will our economy be
20 years from now, I would say it will certainly
better than what it is today. We will consume
more, have more facilities, our spending will
increase (investments too). Hence our economy
will grow and what is the barometer of our
economy, STOCK EXCHANGE. So what are you
waiting for? Go call a broker, open a DEMAT a/c
and start investing because it’s your life, make it
large.
However some people would still tend to be a
little risk averse, they would still be a little
hesitant about getting in to stock market. No
problem, I have got a solution to this too. To get
a better view of how market works, which
sector gives best returns, which one is risky and
most importantly to know the pattern of
investing, I will advise you to invest in
Systematic Investment Plan (SIP) mutual funds
for not much but 1.5 to 2 years i.e. long term
(as said above). You can investment as less as
Rs. 500 or Rs. 1000 a month. Understanding
this, I would recommend you the following
mutual funds.
 HDFC Growth Fund
 HDFC Short term Opportunities Fund
 HDFC Cash management Fund
 UTI Opportunities Fund
HAPPY INVESTING!!!
Jayant Makkar, a CA Final student, is senior
writer at CA Connect India. Jayant's main area
of interest is in the field of core finance.
Graduated from Delhi University in 2013, he
has successfully completed two modules of
NCFM.
Jayant can be reached
at: jayantmakkar1692@gmail.com

SOMETIMES!!!!!! The Pathetic We Are…..
(For Mothers……..)
The journey of those 9 months, those sleepless
eyes in the shivering nights, tears trickling down
the cheeks and the lips constantly uttering
those words “Don’t worry, Mumma’s here”…..
The one who is a security blanket covering you
with the bundle of emotions, the one who
would defy all the odds just to watch her kid
perform and repeat to herself “That’s my child”,
the one who puts you on the road of your
dreams, the one who always sits besides you
and say “ho jaega beta, tension mat le” when
you are in a mess with your heavy
accounts/costing text books, the one whose
eyes would constantly stare the doors till you
arrive in front of her, the one who would have
stains on her clothes but will put well-ironed
clothes in your cupboard, the one who
encourages you to grab the opportunities to
stand at the top, the one who boosts you to go
for a bang and the one who would herself sleep
without having food but will manage all big and
little things for you……..
The priceless, the inspiring, the selfless, the
essence of each one’s life…….. “Humari Maa,,,,,
Pyari Maaaaa,,,, Mumma…..”
But Sometimes!!!! The Pathetic You Are…….
In the hectic schedules you are struck in, the
tiring articleship, scary exams, overloaded text
books, classes over here and there, you usually
forget the lady out there at your homes. Yes, I
am talking about the “Mothers”.
Actually you have taken her for granted and
why ?????
Just because she loves you more than her life…
And frankly speaking you are getting cruel
towards her, disrespects her, use unpleasant
words with her but believe me you will be
shaken when you will see her tears when she
cries in alone. And ofcourse the reason being
you!!!!!
And I ask you…. Why do we do this???? Just
because she can’t be as cool as you are or
because she cares for you even at sacrificing her
own life..
You people frustrated for your own reasons
and took it out on your mother by the shouts,
the anger, the exortion and treating her like
your slave….
And yeah!! She won’t utter a single word and
won’t rather revert back even though you
hurted her till the end, She would be the one
who will stand by your side when the whole
world is against you.
You took her wrong when she scolds you, not
realizing that she cares for you and wants your
well being by pointing out your silly mistakes to
make you a worthy human and for your
betterment. And you know what, you never
knew what kind of pain she herself goes
through when she scolds you and punish you
for the wrongs.
The most disgusting thing about today’s era….
You feel ashamed of introducing your mother to
your friends, just because she can’t
communicate in english or because she is not so
“cool” if I say it in your words. She is your
mother who makes you, who build you to stand
on your feet, so take her as a pride of your life.
You hide things from her… I ask Why???? And
for this you may have your own different
reasons but mark it people, she is the one on
Earth, who will support you till her last breath

and will correct you for all your odds and will
act as your advocate, always… And she is the
best friend you can ever have…!
Those who lose their fathers, she is the one
who act as a backbone of the whole family and
specially to her kids. But her own kids turn out
to be deaf for all her pains, for all her happiness
calls. Just think about it, that this lady is left
with empty hands after sacrificing all her
comforts and giving whole her life for her kids
and the kids surprisingly don’t even bother.
What you need to do is… go for a movie with
her, get her all she deserves, spend the
weekend with her, sing with her, dance for her
like the craziest, give her joy, make her laugh till
the end, the loud laugh, give her the reason,
plenty of reasons to celebrate and make her
feel that she is your world….
Stop being self centered, cool dude and the
crazy gals
Crush away your attitude
Stop being arrogant
And give her what she deserves and desires..
##### When I say “Mummy”, her innocent face
strikes in front of my eyes, the one “Jisse main
din ki har baat nai btau, toh my night would
become nightmare for me”.. Those words “Koi
baat ni,,, it’s all gud” made my life… Yes..!!
Sometimes even I am rude to her and freak out
my frustration on her.. May be because I can’t
freely express my emotions but she is the one
who captures the most special place in my
life….. Thanks for being there,,, always!!
#Mummy #Sorry for Everything………
Each day should be celebrated as Mother’s Day
because only because of her we are part of this
world. Salute to all the ladies out there, the
young and the aged mothers, working mothers
and housewives, married mothers and single
ones, those with money and without and for
those without whom life would have been
insufferable…. Thank you ladies for being the
world of our lives….
GOD CAN’T BE EVERYWHERE, SO HE PROVIDED
US WITH THE MOTHER…
RESPECT HER BECAUSE YOU CAN’T HAVE
ANOTHER….!!!!
Diksha Gupta, a CA and CS Final student, is
Article Assistant at APRA & Associates. She is
very active in Co-Curricular activites such as
slogan writing and public speaking.
Diksha can be reached
at: dikshagupta422@gmail.com

Reservation System In India
By: Team SHIKSHARTHI
Indian society had a great disparity problem
between the high class and low caste people at
the time of independence. To improve that
situation our govt. started reservation policy,
keeping the present scenario in mind, time
changed but that reservation policy didn’t got
altered. Moreover it very shameful that this
reservation policy is being misused by some
sections of society. This policy is embedded in
our country’s system from top to bottom. The
people who comes in general category are
suffering at the end of day. During admissions
in college, we see a percentage criterion is
entirely different for general category and
reserved category. General category child
scores 90% marks but still he doesn’t get
admission in good college, on the other hand
reserved quota child scores 75 % marks and
gets admission in a good college. Apart from
this, in govt. jobs also , placement or promotion
are not done on merit basis rather here also
reservation criteria is hampering talented
individuals.
My question to govt. is:-
>if these backward classes are not financially
sound then why are we not giving them
monetary help in the forms of scholarships??
>why during admissions they are given
percentage grace ,as a 12th
pass child
irrespective of caste stands in a same position.
>Why talented individuals are not given priority
in jobs irrespective of general and reserved
quota.
This article is not written to create any dispute
between any caste, rather I am saying when all
caste, religion are equal then why admissions in
colleges and jobs in govt. sector are not being
done on a common base, that is performance
and only performance.
Friends if we really want to help these
backward classes, then we must not make them
dependent on reservation system. We must
make them realize their true worth and
capabilities as humans and this can only be
done if they are not given any privilege in
performance.
Going to the root of the problem is the only way
to solve this very serious issue. Reservation
quotas should be seized for the families where
one of the family member has availed this
quota and elevated to higher education,
selection in jobs and allotment of houses. It is
observed that even a doctor, selected in quota
system in MBBS is still enjoying services on
account of quota and on highest post of system
and his child is also seeking a seat through this
same quota system.
I strongly object to this system. This system was
approved and placed for elevation of certain
sections of country’s population, but we can’t
play with the future of country in this highly
technologically sensitive and knowledge based
competitive world. We have to give priority to
genuine talent and develop skills, and then only
we can confidently march in the direction of
progress.

Here are some facts and figures to support my article.
Present caste-based reservation system of Union Government
Category as per Government of India Reservation Percentage as per Government of India
Scheduled Castes (SC) 15%
Scheduled Tribes (ST) 7.5%
Other Backward Classes (OBC) 27%
Total constitutional reservation percentage 49.5%
The intake in each course as calculated for the Delhi University is as follows:
OBC 27%
SC &ST 22.5%
General 51.5%

Life in a metro, No, I din’t mean the
movie….. I meant literally!
Sitting besides an old aunty who is constantly
gazing in my phone is something I would not
want at this point of time! (I guess she read
that, now she is not looking.)
Thanks to Mr. Subramanium, the network of
metro all over the city has made life easier
rather convenient for travelling from one corner
to the other corner. Having said that, and after
forgetting my headphones at home, I do realize
that one can find every sort and people from
almost every place on earth! Mind it, I said
earth.
(Aunt’s eyes fixed on my phone again, just more
curious now)
Oh Okay, so who all do we have here, an old
man like he was born to do the whole work of
the office, a couple i.e. a very pretty girl with
not so pretty boyfriend, the good villagers, the
bad villagers, a smart ass guy and a bunch of
school going or I would say school coming kids.
That’s the view from my seat. You know, one
can tell that a guy and a girl is a couple by the
way they stand in the metro. The guy tries to
protect his girl from every possibility of touch
offered by the other commuters.
I mean, oh Okay, u love her a lot and care for
her but this is too much. If you are so worried
why not just let her go in the women’s coach?
Just a wild thought; why not reserve a coach
only for couples. Just double the price, they
would spend that much to spend so called
quality time in the metro;
Some of these village people amaze me, I mean
when they know that they have fewer resources
then why do u guys keep on producing kids??
There is a family, a small heightened husband, a
very slim wife, one child in her hand, one child
holding her another hand, one child with all the
luggage and one with the food stuff, including
whatever material could be fitted in small
polythene! Polythene was banned, right?
(Confused) this reminds me the best nature of
Indians, whenever there is a ban on something,
we do find a way to earn from that order of the
government.
Like polythene’s were banned so that the
environment can be saved. I went to Shopping
and normally paper bags are given, but that guy
was like if you want a polythene, pay some
extra amount!!!
I mean, dude, how the hell do u expect me to
carry the clothes of my whole family in my
hand?? Obviously I’ll need to carry a bag, but
then you have to pay extra!
I don’t know who came up with the idea of a
woman coach, I mean what did he
want? A glimpse of all the beauties all
together?? And the coach chosen in the 1st

coach of the metro. Why can’t it be the last
coach? I really doubt if the driver has a hidden
camera in that coach!
If someone announced in the metro that a
bomb is activated, I m sure people will
not be as perturbed as they would be when
they would come to know that next
station in Rajiv Chowk!
I just got out of the metro and I don’t know
how….? It was as if I was being carried
outside with the flow and people are stupid
enough to go to spas for the
massage. Come in the metro from Rajiv Chowk
to Kashmere Gate and you will get
the best massage of your life and that too
freee!!!
Today I realized a very big disadvantage of
having an impressive height, especially if
you travel in a metro.
I am standing and in front of me is a short man
and thanks to the growing public,
he is coming more close to me. I so wish he was
a woman! Anyhow, his head was
just below my nostrils and I could actually smell
his oily hair.
Thou normally I would have either moved away
(whatever distance would be possible) or just
died of lack of oxygen but it was different. He
had some masala flavored oil, when the
fragrance went inside my nostril. I could think of
nutcrackers and masala peanuts!
I could not believe my brain hormones or
whoever is responsible for the saliva, I
had water in my mouth!
I was like wtf!! I said to my brain, go home
you're drunk! :p
But thankfully I was saved from the atrocities as
I got out at the next station
miraculously!
Amidst such people, be grateful to god that you
can breathe!
I really wonder, that the number of coaches in a
metro is directly proportional to
the number of people travelling in it daily!
here were only 4 coaches when it first started
running, then went up to 6 and now 8!
The time is not far away when you would find
people cooking in the metro itself,
or people coming inside to sell their portable
juicers and very soon washrooms will be added
and food stalls killing each other to sell their
packed popcorns!!!
Sometimes, I think why not build our own
metro. There will be a very huge
investment but just see the number of people
travelling daily, all that would be
recovered just in an year! And then just make
way for the profits! :p
I know, very unrealistic, but then thoughts do
creep in! ;)
Everyday we have a new experience all
together. One day you forget your
headphones and you would find that life has so
much to offer!
Feeling relaxed after the massage.
Mayank Goyal, CA final and CS final student,
Working for "Taxanalytics" in transfer pricing
department. He often conducts SIP sessions
in CS executive level. Besides this he is a
Public speaker.
He can reached at: bruuuaaah@gmail.com

CS Reema Jain
Q .1) What was the scenario when you entered
professional career and currently going
through and what you expect in next 5 years
according to the current economic situation
and looking at the holistic view?
When I entered the profession our core area
was corporate and allied laws. So the hullabaloo
was going on that the companies act is about to
enter, the rules were in the process of being
formation, I would say. Moreover twice or
more than that the parliament had approved
half way through the companies bill 2011 and
finally companies act 2013 was about to come
down the line . So at that point of time initially I
did feel or the professionals at large did feel
that we are going to be at loss or profit,
basically it was a confusing kind of state initially.
But once when the rules crept in the month of
September 2013, there after everyone was at
par and till date that is the status that is
maintained in every professional especially in
co. secretary profession. So the current scenario
and the scenario when I entered is a difference.
That was the confusing state for all
professionals, today every professional in our
society or professional groups is at par except
for the experience of previous act.
Next five years people want many more
amendments to come especially for the private
co. to raise capital and infuse capital apart from
increasing their authorized share capital,
deposits wanted area, considering 31st
march,
that’s one point that strikes my mind because
of return of deposits and penalties that flowing
along with it and apart from that ease of
business is going forward soon with modi govt.
as So next 5 years problem adaptability and
there after regular compliances under co. act
2013 is what being a CS want to see Indian
economy.
Q.2) Ease of business would affect CS work?
What do you think that way?
Ease of business would reduce compliance
work and make easy the procedures that what I
agree but I am simply against the view which

says that CS or a CS should be hired for
certification purpose and filing documents only
. primary area though being Co. act , Is Opinions
, drafting, representations, certification is max
5-10 %.ease of business would be 5-10% of that
CA , CS work, rest 90% is still with us, for that 5-
10 % also the co. needs to understand over the
years what are changes in compliance coming ,
sink is this year was transition year, next year is
the following year and of course with many
more regulations coming up our role would
evolve to be higher and increasing its expanse
over the years. Because to understand any
provision you need CS and for compliance also
you need CS. Though ease of business shall
reduce 5-10% task but for regular tasks of
professionals would not be affected.
Q.3) Few months back there was protest by
ICSI fraternity against parliament rules and
regulations , and it has heard that scope of CS
would be reduced and students coming for CS
course would think twice opting for CS, so
what do think of it.
I say by gones are by gone, the situation then,
being a member obviously I did go once or
twice to see what’s going on, but then what
came as a product was that secretarial audit,
came up, appointment of key managerial
persons, that inclusion of CS at specified limit in
a co. came up and opened up certain more
avenues. The certification which again
contribute around 5-10% for the job of CS in
practice, again increased over time.
That process or protest you were saying in April,
May or June 2014 certainly a bygone now. The
institution and I must say the sister institution
that is the ICAI, ICMAI, or again ICAI( cost
accountants), they are all joining hands they are
all taking it forward, the representations are still
going on different aspects though not in so
much in limelight because that was the time
when suddenly every three hours ,particular set
of rules and notifications would be notified by
the govt. and they would say that we are
notifying in next two days so with those things
erupting up ,if I tell u that you have an exam
tomorrow for your ca final and your course is
entirely left up and you do not know anything
,that would be a mind in that you might take
decision in haste and things would happen.
Q.4) Personal opinion for CS and CA?
Ans. Great. As a CA audits, prepares accounts,
do taxation and on the other hand whenever
they require legal opinion on company and
allied laws ,representation at CLB , secretarial
audit they come to CS. So everyone has its own
relevance and students opting to both hats off.
Q.5) Agreeing with your opinion you talk about
secretarial audit, CA‘s are also equally efficient
with thing also.
Ans. Absolutely good then in that case there
was a certain point why at the time of role out
of direct tax code bill last year when CS were
being included in define of accountant, ICAI
recommended that CS don’t know accounts and
they should remove them from the definition of
it. I am really not against either of the institute
but primarily come to my mind when you talk
about secretarial audits the primary things you
talk is five particular corporate laws.

Q.6) But as you say both courses are good and
one can peruse both courses simultaneously
but when we enter in corporate culture, we
can practice only one. We can get certificate of
practice of CA/CS. Are we not limiting scope as
a professional?
If I am absolutely aware of the fact are you
seeing financial of a company? My answer is
yes. There you might be seeing that certain
percentage requirement is shareholding is
getting included in schedules to the accounts of
a company. You are following schedule 3. So
automatically it is a part of companies act .now
when it is part of co. act and CS is seeing that so
he should be aware of the laws that are
requiring appointment regarding appointment,
accounts, SFIO. On similar lines if I am CS and I
am performing secretarial audit.
When I am talking about FEMA I should
understand what are the consequential
amounts and differences and if I understand AS
11 that will add up to it. Point number 2 if I am
CS and I am looking into financials of a co. I
know section 188 dealing with related party
transactions , I know what all transactions has
to be entered into it but when I present it
before the board of directors of a company
which is a listed entity and which is mandatory
requirement under the listing agreement ,that
these documents has to be presented before
BOD.
If I am talking about section 188, if I have an
understanding of AS 18 related party
transactions, I can give them the effect of it
when I sit as a CS along with BOD in a meeting.
So obviously knowledge helps you but student
understand what is your further goal and what
is happening these days that everyone is
mugging up things, you taking up everything in
your head, but what is required is
channelization of them in a particular direction.
If you are a ca looking after the stat audit, co.
act compliances you need to check and in the
listing entity there is a corporate governance
report under listing agreement of SEBI
regulations and companies act. If you are doing
ca you are having basic knowledge but if a CS
has it will help you in your CA field.
Q.8) Individual is only paid for one degree in
corporate?
It is somewhat right but I have seen people
getting promotion by getting second degree
they get some kind of appraisal, this is one
motivating factor. For students it will increase
level of motivation, and this world is
competitive .in this world either you do
specialization with high level of package, if not
there your degrees would define your level of
knowledge.
Q.9) How to get competitive advantage in
CA/CS?
On this point right now I must say corporate
world seeing many changes and evolutions. Last
2013 co. act came and 1st
April was applicable
on all co. with lot of regulations. Right now FM
has come up with that IFRS would be applicable
from 2016.
And GST coming, read about GST,CFA and CPA
if you want to go foreign, IFRS would help you
to do conversion, placing of details in the
financial statements of a co. would be easy to
understand. So do this type of course that will
help you to get good exposure and understand
which course is helping you to move ahead. So
crux is you can do GST, valuation and IFRS
would help you to stand out in market.

Q.10). What did you do to remain focused
some failures in professional exam?
Family, teachers, her mentor, and prior to that
you have to think I have done this and I will do
this. And I will work for my dreams and not for
fulfilling somebody’s other dreams.
Q.11) what can be done to bring ca at par with
MBA’S in presentation skills and even towards
personality development?
ICAI is giving you platform such as conventions,
elocutions and seminars as well and if you
utilize your 3 years towards these competitions,
anchoring, coordinating events ,so if you have
the zeal, there are enough opportunities to
develop your personality.
Q.12) Even rank 1 is not getting as such very
high package? I don’t want to disclose package
but what is the problem?
Rank is not directly proportional to knowledge
in the exam hall when you are writing you can
write things what you have studied. Your
practical aspect comes forward when you sit in
interview ,when you handle people ,dealing
with people, understanding how they are trying
to manipulate you and there after raise
question to u, shall define whether you qualify
for particular interview or not. I don’t say rank 1
holder is not intelligent or he made it by fluke
and hats off this guy that he cleared with flying
colors and moreover he is an ideal to many
people , but your job, profession, choice of
career, directly link your interest and amount of
dedication towards your work
Message to readers.
Well I am too young to say to pass the message. Your effort itself towards combining your initiate,
motivation, and spreading awareness is itself appreciable and to others I will say keep reading it.
THIS MAGAZINE IS UNDER COPYRIGHT.
ANY THING COPIED FROM IT SHALL BE
PROSECUTED UPTO DELHI AREA.

SHIKSHARTHI - ALMANAC 1

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