Institute of Cost and Works Accountants of India

Infobox Company
company_name = The Institute of Cost & Works Accountants of India (ICWAI)
company_type = List_of_accountancy_bodies
foundation = flagicon|India [India] (1959)
location = Kolkata, flagicon|India [India]
key_people =
industry = Accountancy and Finance
members = 40000

homepage = [http://www.myicwai.com www.myicwai.com]

The Institute of Cost and Works Accountants of India (ICWAI) is the only recognized statutory professional organisation and licensing body in India specialising exclusively in Cost and Management Accountancy.

Location

The head office is situated at 12, Sudder Street, Kolkata 700 016 and operates through four regional councils (Kolkata, Chennai, Delhi and Mumbai), as well as through a number of important chapters situated elsewhere in India and abroad.

Objectives of the Institute

*To develop the Cost and Management Accountancy function as a powerful tool of management control in all spheres of economic activities.
*To promote and develop the adoption of scientific methods in cost and management accountancy.
*To develop the professional body of members and equip them fully to discharge their functions and fulfill the objectives of the Institute in the context of the developing economy.
*To keep abreast of the latest developments in the cost and management accounting principles and practices, to incorporate such changes are essential for sustained vitality of the industry and other economic activities.
*To exercise supervision for the entrants to the profession and to ensure strict adherence to the best ethical standards by the profession.
*To organise seminars and conferences on subjects of professional interest in different parts of the country for cross-fertilisation of ideas for professional growth.
*To carry out research and publication activities covering various economic spheres and the publishing of books and booklets for spreading information of professional interest to members in industrial, education and commercial units in India and abroad.

Employment opportunities

Members of the Institute are occupying high echelons like Chairman, Managing Director, Finance Director, Chief Executive, General Manager, Finance Manager, etc. in many Public and Private sectors organisations and also in the Government

Ministry of Corporate Affairs Government of India has tabled the bill for amending the law governing the three professional institutes. The amendments are expected to make the management of corporate affairs more fair, credible and lawful.

Amendment in 2003

The Companies (Amendment ) Bill,2003 has the following provisions:

99. After section 215 of the principal Act, the following section shall be inserted, namely : 215A. (1) Every public company having paid up share capital of three crore rupees or more as may be prescribed shall appoint a whole-time qualified accounts officer to be known as the chief accounts officer, who shall either be a member of the Institute of Chartered Accountants of India constituted under the Chartered Accountants Act, 1949 or a member of the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 and such accounts officer shall be responsible for the proper maintenance of the books of account of thecompany, and shall ensure proper disclosure of all required information indicated in the prospectus or any other offer document, and also ensure compliance of the provisions of this Act relating to the accounts of the company.

Proposal of Change of Name

The Committee for Change of Name Of the Institute of ICWAI has written a letter to Hon’ble Minister of Corporate Affairs, Mr Shri Premchandji Gupta proposing for Change a name to "The Indian Institute of Cost & Management Accountants".

The Committee reckons

"The change in the name will be recognition of attaining a level of International standard in the professional fields. To explore full advantage of service potentials of professionals of the ICWAI universally, it is requested that the Institute be renamed as “Indian Institute of Cost and Management Accountants” which will reflect brand name “Indian” along with Indian Institute of Management, Indian Institute of Technology, Indian Institute of Science, Indian Space Research Organization, Indian Medical Association, etc. This will also help the Institute while negotiating mutual recognition agreements as required under WTO Provisions."

Government department

There is an existing Cost Accounting Service in Central Govt. named as Indian Cost Accounts Service, which is at par with the Class I Services of the Government of India.Company Bill 2003 withdrawn from the House the New concept paper shows the following provisions:

Concept paper on company Bill(likely to be taken in monsoon session of parliament)Definition:

(17) “Chief Accounts Officer” means the chief accounts officer, of a company appointed under sub-section (1) of section 88, by whatever name called;-Cost accountant referred in the concept rules as a person entitled for this post.(19) “Cost Accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;6. Incorporation of Companies(1) There shall be presented to the Registrar of the state, under whose jurisdiction the registered office of the company is to be situate, the following for registration:(a) the memorandum of association of the company;(b) its articles of association ;(c) a declaration by an Advocate defined under Advocate’s Act, or a Secretary or a Chartered Accountant, or a Cost Accountant in whole-time practice, in India who is engaged in the formation of a company, or by a person named in the Articles as a Director, Manager or Secretary of the company, that all the requirements of this Act and rules have been complied with in respect of registration and matters precedent or incidental thereto.60. Special Audit(1) Where the Central Government is of the opinion,—(a) that the affairs of any company are not being managed in accordance with sound business principles or prudent commercial practices; or(b) that any company is being managed in a manner likely to cause serious injury and damage to the interest of the trade, industry or business to which it pertains; or(c) that the financial position of any company is such as to endanger its solvency; or(d) that contravention of the provisions of this Act in relation to the maintenance of accounts of the company or in the conduct of audit have eroded the faith and confidence in the proper management of the company; or(e) that the management of the company is being conducted in any manner prejudicial to the interests of holders of securities or development of securities market or creditors of the company or the public interest;(f) the management of the company has indulged in insider trading or market manipulation, the Central Government may, at any time, by order, direct that a special audit of the company’s accounts as it may consider necessary, shall be conducted either by a chartered accountant or a cost accountant or a firm of such professionals, as the case may be, or by the company’s auditor himself, for such period or periods, as may be, specified in the order and the auditor so appointed shall be referred to as a Special Auditor.

The special auditor shall have the same powers and duties in relation to the special audit as an auditor of a company has under section 59.Provided that the special auditor shall instead of making his report to the members of the company make the same to the Central Government.

61. Cost Audit

(1) Where in the opinion of the Central Government it is necessary so to do in relation to any company required under clause (d) of sub-section(8) of section(2) to include in its books of account the particulars referred to therein, the Central Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959).

(2) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 56

(3) The auditor under this section shall be appointed at the General Meeting of the company in accordance with the provisions of section 56 and subject to conditions as may be prescribed and the auditor shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under section 58 who shall make his report to the Central Government in such form and within such time as may be prescribed and shall also at the same time forward a copy of the report to the company.

(4) The Central Government may direct the conduct of cost audit subject to such condition and order such action on the report as it may consider necessary.

(5) If default is made in complying with the provisions of this section, or any of the directions given by the Central Government under sub-section (4), the company and every officer of the company who is in default are punishable under the Act.

"'NATIONAL COMPANY LAW TRIBUNAL

101. Constitution of National Company Law Tribunal"'

The Central Government shall, by notification in the Official Gazette, constitute a Tribunal to be known as the National Company Law Tribunal to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this Act or any other law for the time being in force.The applicant or the appellant may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or the Official Liquidator or Company Liquidator as the case may be or any officer authorized by the Central Government to present his or its case before the Tribunal or the Appellate Tribunal, as the case may be.

Explanation— For the purposes of this section, “legal practitioner” means an advocate defined under the Advocate’s Act.

(1) The liquidator in a winding up by the Court shall have power, with the sanction of theCourt,-(a) to institute or defend any suit, prosecution, or other legal proceeding, civil or criminal,in the name and on behalf of the company;(b) to carry on the business of the company so far as may be necessary for the beneficialwinding up of the company;(c) to sell the immovable and movable property and actionable claims of the company bypublic auction or private contract, with power to transfer the whole thereof to any person orbody corporate, or to sell the same in parcels;(d) to raise on the security of the assets of the company any money requisite;(e) Appoint one or more Chartered Accountants or Company Secretaries or CostAccountant or legal practitioner entitled to appear before the Tribunal under section120 to assist him in the performance of his duties.Sec8888. Appointment of Chief Accounts Officer(1) Every public company having paid up share capital of such amount as may beprescribed shall appoint a whole-time qualified accounts officer to be known as thechief accounts officer, who shall be qualified as prescribed and such accounts officershall be responsible for the proper maintenance of the books of account of thecompany, and shall ensure proper disclosure of all required information indicated inthe prospectus or any other offer document, and also ensure compliance of theprovisions of this Act relating to the accounts of the company. The Chief AccountsOfficer appointed shall also be responsible for the preparation of the annual accountsof the company.(2) Any default in complying with the provisions of this section is punishable underthe Act."'Section 88"'1.Every company having paid up share capital of rupees five crore and above shall appoint chief financial officer, who shall possess one or more of the following qualifications:-

a. Cost Accountant

b. Chartered Accountant

Practice

Cost accountants can practice in the following areas:
*In mandatory Cost Audit under Section 233 (B) of the Companies Act, 1956.
*Certification under Export & Import Policy.
*Excise Audit under Section 14A of the Central Excise Act and Special
*Audit of Certification Of manufacturing account as per Customs Act.
*VAT audit in eighteen states.
*Consultancy Assignments.

Academic opportunities

The Association of Indian Universities {AIU} resolved on May 28, 1991 that Bachelor Degree holders, who have passed ICWAI Final Examination be allowed by the Indian Universities to register for M.Phil. and Ph.D. in Commerce and allied disciplines. Since then the Institute is approaching different Universities to make necessary provision in their respective Rules so that Members of our Institute having Graduation qualification can register themselves for Ph.D. courses in Commerce and allied areas. Till now the Institute is in receipt of approval from 35 Indian Universities. Recently, in response to our letter No. DS-3{UL}/11/2000 dated November 17, 2000 to AIU it has been clarified by AIU {vide their letter No.EV/II{2}/2000/179741 dated November 29, 2000} that recognition awarded by AIU is generally accepted by the Universities in our country.

As the Final Examination of the Institute of Cost and Works Accountants of India has already been recognized by AIU, they do not anticipate any difficulty to be faced by the ICWAI candidates in the matter of acceptance of their qualification as sufficient for registering for Ph D/M Phil. All India Council for Technical Education decided that Fellow members of our Institute will be treated at par with the persons holding Ph.D. degree as far as appointment in the posts of Professor, Associate Professor, Reader, Asst. Professor and Lecturer in Professional/management Institutes are concerned.

tudent organization

Students of the institute are active and make themselves appear in almost all nation level events. One such student organisation which is run by students themselves is FESCA (Forum for Elite Students of Cost Accounting). FESCA was founded in 1996 in SIRC (Southern India Regional Council) of ICWAI to represent the students of ICWAI. One of their main events, which is conducted annually is COR (Cost O' Rhythm).

External links

* [http://www.icwai.org ICWAI]
* [http://fesca.cwa.googlepages.com/home FESCA - Forum for Elite Students of Cost Accounting]
* [http://www.mca.gov.in/MinistryWebsite/dca/actsbills/actsbills.html MCA - Bill of Amendments]
* [http://docs.google.com/View?docid=dg88xmmz_15gvjnsp Letter for Change of Name to Minister of Corporate Affairs, GOI]