How to pass CS Final - New syllabus: Interview with Ms.Ranjitha

It has been an year since New Syllabus is introduced. Honestly speaking, we rarely come across some one who has completed CS Professional program in New syllabus. One such rare person who wrote CS Professional in New syllabus & cleared is Ms. Ranjitha.

We asked her some questions on New Syllabus for the benefit of those doing CS Professional program.

·         Congrats for passing CS Professional in New syllabus. Did you clear all modules of CS Final in single attempt or how did you attempt it?

I wrote the first two modules during December 2014 and the third module this June. I cleared them all in a single attempt.

·         Would you advise people studying some other course or working to write 3 modules together or few modules only at a time?

I split and wrote due to personal reasons. However, I’ll always advise people to write all the three modules together even for the categories of people you mentioned due to the benefit of carry over and a possibility of a rank provided that they spend an hour studying every day, during weekends and a minimum of 12 hours per day of preparation during 20-25 days before the exams. If this is not possible, they may split and write but still it requires hard work because of the loss of carry over benefit. Plus the six months delay in getting membership will have a huge impact. The choice depends on the immediate needs of the person. In conclusion, it’s always better to write them together.

·         How was the New syllabus in general? Course content and examination….

The new syllabus content is vast however beneficial to students in various aspects especially with respect to Tax paper. Students may find the introduction of ITSA paper uncomfortable but its syllabus is very small and if spent 3 hours a day, you can finish it in 12 days. The elective papers are interesting and even though they are open book exams, reasonable amount of preparation is inevitable.

·         What kind of preparation is required for Electives?

One need to certainly read the elective paper in advance, though it is an open book system. Only if the questions are direct, open book system will help. If the questions are indirect, we can answer only if we have read the book well.

·         How different was the question paper pattern in new syllabus?

The question paper pattern is the trickiest part of new syllabus. The conversion of external choice to internal choice leaves us with no choice but to study the whole syllabus. There are no objective questions which indicate that time management is going to be highly important. Many of my friends couldn’t finish the paper and that’s one mistake you should never do. Most questions are for 4 or 5 marks. So it’s better to give your answers point-wise or using flow charts to save time and simultaneously make a good presentation.

·         How much preparation (in terms of time) is required to clear CS Professional?

Generally, for all 9 papers, 3-4 months of preparation is required but it changes from person to person. First two months, 6 hours and the next two months a minimum of 12 hours preparation is required. Asking more questions on a particular subject and finding out answers will help in effective preparation.

·         What are the books that you used mainly for Problem oriented papers (FM, Tax, etc)? Which one you will recommend?

I used my Coaching institute material and the ICSI material for my preparation. I used Bangar and Bangar for tax since I did the third module separately and had ample time but it is vast and I feel it is too much for CS exams. Based on the past new syllabus question papers, we can say that the ICSI material is sufficient to clear both FM and Tax papers.

·         What are the reasons students struggle a lot in FM & Tax and how  can they overcome it?

The problem could be the strategy used. They are not completely problem-oriented. In case of FM paper at least 50% questions shall be theoretical. In Tax paper also questions of 20-25 marks are from the theory part (Appeals, procedures, penalties, etc.). Finish the theory portion a soon as possible. Concentrate on all the problems given in the ICSI material. Work out the problems of a minimum of 15 past exam question papers. People who have time constraints can use Bangar and Bangar book only for problems. The problems in tax and FM are simpler in new syllabus and this amount of preparation will suffice in my opinion.

·         Was the Institute study material useful? If so, for which subjects they can be relied upon?

Students must go through Institute material simultaneously no matter what book they use. For modules 2 and 3, Institute study material is more than sufficient and a must.

·         Any specific tips to clear FM?

As I told earlier, if people have difficulty in working out problems, they can concentrate completely n theory first and then try work out problems as much as possible. Understanding the concept behind the working of problems is more important than working out more number of problems. Studying the theory part is essential to understand the logic and concept behind every problem.

·         Any specific tips to clear Tax?

70 marks allotment to Indirect tax is a boon to New syllabus students. Given that the problems asked in IDT are simple in nature and the 20-25 marks theory part will be highly useful, I’ll recommend preparing IDT in an exhaustive manner first. Questions on amendments during the previous 6 months can always be expected. Tax requires a lot of time and a minimum of two revisions.

·         Do you think that the valuation in exams is very strict?

Yes the valuation has been strict especially in case of new syllabus. The question paper pattern demands an exhaustive preparation and the manner of valuation demands concise and to the point answers

·         Why people take long time to clear ACS Professional nowadays? How can it be overcome?

The question paper pattern requires the students to study all the chapters. Smart work plus hard work only will bear fruits. So students should learn all the chapters and when it comes to law papers clear interpretation is absolutely necessary. Giving only the answer to the question asked and presenting it in a manner which poses no difficulty to the examiner to understand are prime requisites.

·         Did you study entire material/ book or did you leave any chapter or portion?

I studied the entire material and it is highly recommended.

·         How many times you revised? How many revisions are required to clear?

I revised the first two modules once and the third module twice. I’ll recommend two revisions for all subjects to be sure about clearing.

·         Is there any paper that you may say as Scoring paper?

I think the papers in Second module are all easy and one can score well.

·         What are the other things that you would like to share for clearing CS professional exams

First few days of preparation will be dull. So to avoid these ineffective hours spent, students can start even earlier and be casual in the beginning. Also, it is not completely necessary that you stay away from all entertainment like movies or hanging out with friends. Pushing yourself too much will make this course a punishment. Enjoying what you learn is the most important thing. By virtue of my Guruji, company Law became my entertainment when I wanted a way out from dull papers like FM or Corporate Governance. So all things said, a passion towards the course will go a longer way than every strategy recommended by me. All the best to all the students. Thank you.

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How to prepare for Electives, FM & Tax - Chat with seniors

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WAYS TO CRACK CS PROFESSIONAL EXAMS- ADVICE FROM SENIOR

Privileges & Exemptions available to Pvt Ltd Companies

Exemptions for

Private Limited Companies

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Although a couple of privileges enjoyed by the private companies under the Companies act 1956 have been withdrawn the following privileges are still available for private companies.

Section	Particulars
3	Number of Members: Minimum – 2 Maximum 200
43	Share capital of a company can be of any kind if the memorandum or articles of association of the private company so provides.
47	The voting right of the shareholders need not be as per the act if the memorandum or articles of association of the company so provides.
62 (1)(a) and 62(2)	For further issue of shares capital a letter of offer shall be sent to the members specifying the number of shares offered and limiting a time not being less than seven days not exceeding fifteen days from the date of offer within which the offer if not accepted shall be deemed to have been declined.
62 (1) (b)	On passing an ordinary resolution instead of special resolution, shares can be issued to employees under a scheme of employees’ stock option.
Sec 67	There is no restriction for a private company to purchase its own shares if: -          No other body corporate has invested any money in that share capital -          If borrowings from banks or financial institution or body corporate is less than twice its paid up share capital or fifty crore rupees which ever is lower and -          Such company is not in default in repayment of such borrowings subsisting at the time of making transactions under this section
73 (2)	Restriction on acceptance of deposits from members shall not apply to a private company having 50 or less members if moneys accepted from members is:  not exceeding 25% of aggregate paid up capital and free reserves  or  100 % of paid up capital which ever is more
101 to 107 and 109	the following sections shall not apply to a private company if the articles otherwise specify: 101 – 107  Notice and explanatory statement for the general meeting, quorum for the meeting, chairman of the meeting, proxies, restriction on voting rights, voting by show of hands 109 – demand for poll
103	Quorum for the meeting: 2 members personally present
117 (3)(g)	Resolutions passed under section 179(3) need not be filed with the MCA by a private company. Section 179 (3): certain powers to be exercised by the board only at the board meeting
131	Board’s report: The private company  is exempted from providing the following information in the board’s report: -      Declaration from independent directors on annual basis -      Composition of audit committee -      Report details of establishment of vigil mechanism -      Directors’ Responsibility Statement: o   Declaration by the directors on the adoption and functioning of adequate internal financial controls by the company -        -      Annual Return o   Secretarial Audit Report o   Statement on the annual evaluation by the board of its performance and that of its committees and its directors o   Cost audit report o   Ratio of remuneration to each director o   A report on corporate governance
141 (3)(g)	The restriction of the number of companies in which a person or partner who is full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, shall not be appointed or reappointed  in more than 20 companies shall not apply to a private company
160	The restriction on the retiring director standing for directorship is not applicable to a private company
162	A single resolution shall be passed for the appointment of two or more persons as directors at the general meeting
180	Restriction on the powers of the board to carry on the following transactions shall not apply to a private company whose: -      borrowings from banks or financial institutions is not more than twice of their paid up capital or Rs. 50 crore whichever is lower                               And -      In whose share capital no other body corporate has invested money Transactions (a)   to sell, lease or otherwise dispose of the whole or substantially the whole ofthe undertaking of the company (b)   to invest otherwise in trust securities the amount of compensation receivedby it as a result of any merger or amalgamation; (c)    to borrow money, where the money to be borrowed, together with the moneyalready borrowed by the company will exceed aggregate of its paid-up share capitaland free reserves, apart from temporary loans obtained from the company’s bankers inthe ordinary course of business (d)    to remit, or give time for the repayment of, any debt due from a director
188	The restriction in carrying on a transaction between the related parties is not applicable to a private limited company
196 (4) and (5)	The approval of the terms and conditions of appointment of MD/ WTD by the shareholders and the activities done by them before the appointment in the general meeting shall not apply to a private company
203 (3)	There is no restriction on a whole-time key managerial personnel holding office in more than oneCompany.
204	Secretarial Audit is not applicable to a private limited company

Sanka Indrani, Company Secretary

Achuthan R, Company Secretary

Place of Keeping Books of Accounts : What you need to know...

PLACE OF KEEPING BOOKS OF ACCOUNT, OTHER RELEVANT BOOKS & PAPERS AND FINANCIAL STATEMENT

INTRODUCTION

As per Section 128 of the Companies Act, 2013, every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting.

Books of Accounts include the following

ü  Records maintained in respect of all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place.

ü  Records maintained in respect of all sales and purchases of goods and services by the company.

ü  Records maintained in respect of the assets and liabilities of the company.

ü  Records maintained in respect of the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section.

Note:

Books of accounts also include the Cost Records maintained by the Company.

 Relevant books and papers include the following

      

Books of account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form.

Branch Office includes the following

Any establishment described as Branch Office by the company.

In case of Foreign Company

It is required to keep at its principal place of business in India, the books of account, with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in India.   

ALTERNATIVES AVAILABLE FOR THE COMPANY

A Company can keep all its books of account and other relevant books and papers and financial statement for every financial year including its branch office or office.

          Option – 1

At the registered office of the Company.

Option – 2

At such other place in India as the Board of Directors may decide.

         

PROCEDURAL ASPECTS INVOLVED FOR KEEPING BOOKS OF ACCOUNTS IN A PLACE OTHER THAN THE REGISTERED OFFICE OF THE COMPANY

The Following are the procedure involved in keeping books of account and other relevant books and papers and financial statement for every financial year including its branch office or offices in the place other than the Registered Office of the Company:

Step: 1

To Obtain Board Consent either through Physical Board Meeting or Board Meeting through video conferencing or through circular resolution.

Step: 2

To file notice with Registrar of Companies in E-form AOC – 5 within seven days from the date of decision taken by Board by specifying the full address of the place where the books of accounts, records etc are to be kept including the details pertaining to police station under whose jurisdiction the place of the address at which the books of account are to be maintained falls.

Note:

A company having a branch office in India or outside India can keep their book of accounts, records etc relating to the transactions effected at the branch office at that office and proper summarised returns shall be periodically sent by the branch office to the company to its registered office or other place where the books of accounts or records are kept.

Period of Keeping Books of Accounts:

Books of account of the company relating to a period of not less than eight financial years immediately preceding a financial year, or where the company had been in existence for a period less than eight years, in respect of all the preceding years together with the vouchers relevant to any entry in such books of account shall be kept in good order.

However, in case of any investigation has been ordered in respect of the company under Chapter XIV, the Central Government may direct that the books of account may be kept for such longer period as it may deem fit.

Penalty For Non – Compliance:

Managing director, the whole-time director in charge of finance, the Chief Financial Officer, person of a company charged by the Board shall be

Punishable with a imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees or with both.

Comparison of Provisions in Companies Act, 1956 and 2013:

Particulars	Section 163 of Companies Act, 1956	Section 128 of Companies Act, 2013
Register and Returns – Place of Keeping	Within the city, town or village in which the registered is situated by passing a Special Resolution in General Meeting.	At any place in India by Boards Approval.
Books of Accounts – Place of Keeping	At any place in India by Boards approval.	At any place in India by Boards Approval.

FLAWS IN COMPANIES ACT, 2013

Under the New Companies Act, 2013, the Corporate are provided with the freedom of fixing the place at which the Books of accounts, records, registers of the Company to be kept at any place in India without obtaining any prior approval from the shareholders of the Company and we feel that it shall indirectly effect the interest of the shareholders at large in case of a Listed entity whose shares are listed in the recognised stock exchange.

Further we feel that it may not be practically possible for a shareholder to visit the place other than the registered office of the Company to access the register and records of the Company.

FREQUENTLY ASKED QUESTIONS

1.      Whether the Minutes, Statutory Registers and Records of the Company are required to be maintained for more than 8 (Eight) Years?

As per sub section 5 of section 128 of the Companies Act, 2013, the books of accounts of every company relating to a period of not less than 8 (Eight) financial years immediately preceding a financial year shall be maintained.

However with regard to minutes and statutory registers and records it shall be maintained by the company since inception, since the minutes and statutory records are the principal documents of the company that needs to be maintained and preserved.

2.      Can a Company keep its part of Books of Accounts and other papers in some other place in India other than the registered office of the Company?

Yes, the Company has the option to prepare, preserve and maintain the Books of Accounts and other papers in any place in India other than the Registered Office of the Company after obtaining the Board’s Approval. Provided the Board Resolution shall clearly specify that such part of the books and papers shall be kept at those places respectively.

3.      Can a Company keep its Books of Accounts and other papers in multiple places in India?

Yes, there is no such restriction under the provisions of Section 128 of CA, 2013 and rules framed thereunder, for keeping the Books of Accounts and other papers in multiple places in India.

However the Board Resolution shall clearly specify that such part of the books and papers shall be kept at those places respectively.

REAL TIME CASE STUDY

        What would be the remedy available for a listed/limited company, when a shareholder of the company walks in to the registered office of the company for inspection of statutory registers and records, when the company had kept its statutory registers and records in any other place other than the registered office?

As per the provisions of section 171 of the CA, 2013, every shareholder of the company has the right to inspect the statutory registers and records of the company during the business hours and is entitled to take extracts there from and copies thereof of the registers.

In such a case where the shareholder has visited the registered office of the company where the records are kept at such place other than registered office, the company shall explain the shareholder that the registers and records are being maintained in such place other than the registered office and shall guide the shareholder to go to such place and inspect the registers and records.

BY

CS K VINOTH

CS D HEM SENTHIL RAJ