The updated and more coherent version of this blog is available at
www.poweryourpreparation.blogspot.com
Please visit the same
The information contained above has been cited from sources deemed to be reliable but is neither all-inclusive nor guaranteed to be entirely accurate. Recommendations made reflect my current judgement as regards the ideal strategies for CA Final . The same, however, are subject to change without notice. I have made certain forward looking statements which are based on expectations,estimates and projections . These are subject to inherent risks and uncertainties. In the event of the same materialising ,actual results could differ materially from those anticipated.Readers are therefore, advised to exercise due caution in this regard
Thursday, March 06, 2008
Wednesday, March 05, 2008
Paper 8 : Indirect Taxation
Really have nothing subtantial to speak about this subject. It is more of procedure based. Just like Amitabh Bacchan in Kabhie Khushi Kabhi Gum (K3G) .."Keh Diya Toh Bas Keh Diya"
For the time being I wanna address just one crucial question which people keep on asking ......
Whether one should opt for tuitions for this subject?????
The answer is a very dicey one and there are a number of factors at play.
It all depends on your articleship exposure ..say whether you have actually seen a RG 23A and stuff in your life....This would determine whether the concepts of Cenvat Credit would strike you instaneously or whether you need a hypothetical set of numbers to drill into your grey cells these basic concepts.
Again your comfort level with theory is also crucial.Some people find it convenient to mug up if a theory is read out aloud and explained by a teacher.
Please try to strike a balance between the time you spend shuffling between tuitions in the last lap of your preparation and the benefits you reap out of the exercise.
Thats it for the time being
For the time being I wanna address just one crucial question which people keep on asking ......
Whether one should opt for tuitions for this subject?????
The answer is a very dicey one and there are a number of factors at play.
It all depends on your articleship exposure ..say whether you have actually seen a RG 23A and stuff in your life....This would determine whether the concepts of Cenvat Credit would strike you instaneously or whether you need a hypothetical set of numbers to drill into your grey cells these basic concepts.
Again your comfort level with theory is also crucial.Some people find it convenient to mug up if a theory is read out aloud and explained by a teacher.
Please try to strike a balance between the time you spend shuffling between tuitions in the last lap of your preparation and the benefits you reap out of the exercise.
Thats it for the time being
Wednesday, February 27, 2008
Paper 7 : Direct Taxation
Welcome to the world of taxation where you never know what goes on in the mind of Mr. P. Chidambaram. So what might have appear to the untrained eye as an inadvertent silly mistake or an error of omission/commission could be possibly be a deliberate act of mischief on part of the mandarins in the Finance Ministry!!
If for the purposes of the Income Tax Act, they want a donkey to be called a horse, they have every right to have their wishes fulfilled. The deeming fiction created by legislation often catches you unawares.
More to go
Section 115WA of the Income Tax Act
In addition to Income Tax, there shall be charged for every AY additional income tax in respect of fringe benefits provided or deemed to have been provided by an employer to his employees
So the question which areises is whether FBT is applicable in cases where an eligible employer has got only one employee in his establishment.
I am dead sure that you will be tempted to reply in the negative.
Here's the googly for you
The 111 year old "General Clauses Act" has an interesting segment which goes as follows
In all Central Acts and Regulations, unless there is anything repugnant in the subject or context:—
Words in the singular shall include the plural, and vice versa.
Howzatt????
And mind you this was only the tip of the iceberg.....
In legal parlance...the list of such centreshocks can at best be illustrative but never exhaustive....
Before I proceed any further, I need to emphasise that there is a subtle difference between studying taxation :
1)For your bread and butter (I mean in case you want to pursue it as a career post-qualification) and
2)Just for the CA Final exam itself.
While it is highly recommended that you pursue your study of this subject with intense zeal and enthusiasm, a more practical view would be to considet DT as simply Paper VII with 100 marks at stake, out of an aggregate total of 800, which comes to 12.5 % of the CA Final portfolio.
So you need to accordingly decide on the time you are going to spend on this subject. There is no point being gripped by DT mania and have a craving to master the entire gamut of legislative histories, judicial interpretations, case laws and section numbers.
From an examination perspective, you got to be pragmatic and simply move on...
Analyse everything from the cost vis a vis returns perspective !!
Is the time you would need to spend to master a particular topic worth the marks involved ???
Case Studies
Only when the tide goes out does one understand who had been swimming naked...rite?
In CA Final, there are subjects like Auditing where you can always punch in some global gyaan , topics like QT where you need to blindly follow a prescribed algorithm and snatch away marks from the examiner.
But this subject belongs to a different league altogether.
Taxation belongs to those who dare to think beyond the obvious.
It is an amalgamation of a theory as well as a practical paper.
While you need to be thorough with the provisions, an integrated approach needs to be followed while solving the sums.
e.g. while solving a problem which is apparently based only on application of Section 80 IC, you need to be alive to the possibility of Minimum Alternate Tax (MAT) creeping in like a hidden monster and wreak havoc.
Similarly you got to connect a problem based on Section 80QQB (Royalty Income of Authors) with the stipulations of Section 91 (Double Taxation)in specific cases.
However, contrary to popular perception, all you need to win this battle is tons of conceptual clarity.
Some case studies are simply meant to be beyond comprehension of the general student fraternity. They are like the popular 'Thums Up' advertisiments wherein it would be fatal to try performing the tricks yourself. They are only meant to be watched and enjoyed.
Dont lull yourself into believing that you are infallible and would be able to solve each and every sum entirely .I think that would be demanding too much out of yourself and would only diminish your self confidence in the long run.
Taxation teachers owing to paucity of time discuss only the phooljhudis(fireworks) in the class but that should not lead you to get the wrong impression that the entire question paper would be laced only with these literally impossible sums. Trust me , besides a couple of phooljhudis, there would be cakewalks plethora in any question paper.
Just learn the trick from each case study and simply move on instead of getting emotionally bogged down by them.
Professionals make things look easy because they have mastered the fundamentals of whatever they do. In a short timespan of just 4 months which is availbale to you, even if you study taxation 24*7 , you will invariably fail miserably in becoming an expert. It is so vast.But certainly you will end up screwing your 8 subject CA Final preparation in the process.
Don't endeavour to get expert knowledge. Just try to scrape through with functional knowledge.
However, a large number of sums are always worth an honest attempt and there is no point simply jotting down the solutions in your exercise book and bringing them home to appreciate their beauty for the rest of your lifetime.
Exercise your mental faculties a bit . Occassionally take a stance ..whether in the class or at home practising problems.
If you can't be a galloping horse, at least don't turn yourself into a sleepy cow.
Again a lot many students have this strange habit of literally verifying from a standard textbook like VKS, whether what is written in their tuition teacher's study material is correct or not. They are on Cloud Nine if they are able to spot out a contradiction between the two. Trust me, the exercise is simply not worth the effort. These contradictions which surface can be ignored on materiality grounds from an examination perspective. On the contrary, you could end up losing your precious preparation time in the process and become all the more confused.I don't think any wise student should want to have his concepts clouded by controversies.
Wealth Tax is simply 10-15 marks handed over to you on a platter. The most challenging aspect is the House Property Valuation sum. The rest of it, I believe is manageable and could easily facilitate implementation of the "Well Begun Is Half Done" maxim, both during your preparation as well as in the exam hall.
For the Sections 80IA and the 80IBs or the 10As and the 10Bs, I am sure that each time you study them , you will get lost in the murky waters. The ideal way out would be preparing a chart instead.
for e.g. 10A , 10AA, 10B and 10BA along the column headings
12-13 conditions ranging from that of used plant and machinery to that of furnishing a return u/s 139(1) could be plotted along the rows.
All you need to do is put either a cross or a tickmark in each cell or punch in the relevant year say 1999-2000 for 10A ......04-05 for 10AA etc. in the unabsorbed depreciation and b/f loss not set off till row.
Acronyms like I am Builder for 80IAB could work.
Depreciation in PGBP, Assessment Procedure and Non Resident are the three most difficult segments of the syllabus offering infinite potential to the examiner to act malicious.
While there is no fool-proof strategy for them, I am sure that repeated reading of the provisions would slowly help you recover from the initial shock.
Beware of certain inherent fineprints. You need to be be extra cautious with expressions like " AO must put on record a new fact" , "revised return steps into the shoes of the original return" and "erroneous and prejudicial to the interests of revenue ". About a dozen odd mutations of the same story would inadvertently come as a bolt from the blue to you.Can't help it dude??? You have to have this reality with a pinch of salt and hope that ultimately you are able to crack the examination problem (either by your own intellect/through hall collection).
In Assessment Procedure, the plethora of time limits like "12 months from the end of the month in which return is filed" applicable to proceedings under different sections would irritate. Try preparing a chart for them.
The Non Resident chapter could make you utter the Veer Zaara song "Ye Hum Aa Gaye Hain Kahaan???"
The sea of tax rates at the very outset of the chapter would confuse even the most patient of the lot.
The most difficult sum I found was one pertaining to a Non Resident Indian where there is an option to choose between two alternative taxation structures for income from Specified Assets.
Again the Dividend Stripping/Bonus Stripping segment is an eyesore. It is not feasible to expect that in the examination hall amidst all the tension and pressure of performance, you will remain as cool as a cucumber to identify that Section 94(7)...Bonus Stripping would override all other provisions and would prevail over Dividend Stripping ....and then again apply the Section 73 condition ....If you try something like "Mein Bhool Jayungaa" stuff..its nothing but application of the Von Restorff Effect. With a bit of conceptual understanding as to why this section was inserted, things will be relatively simpler.
Try small stories say titled "Teen Muhinaa Pehle Nau Muhinaa Baad" ....i.e. 3 mnths before 9 mnths later for time limits of Dividend Stripping
The only thing tricky in the TDS chapter is the exceptions to each section .You have no choice except to simply mug them up and then try to apply them in case studies like joint application of Section 40(a)(i)(a)with Section 194A w.r.t. zero coupon bonds.
Finally PGBP and CG
These are the most interesting ...but simultaneously the most voluminous of the lot. Before emabarking on their pursuit, just have a look at the scanner and do some Cost Benefit Ratio Analysis and then decide the time you are going to spend.
Only the most recent case laws and that too at the Supreme Court level are the most relevant. If you are lucky enough you could get one from the ICAI's website in your term like we did (although I had not known about it)
Finally a bit on the examination
DT is an attempt all questions affair. So you really can't afford to skip any topic, even say the minnows like Shipping Companies in the course of preparation or revision on exam eve.
Again don't hastily jump to conclusions after cursory glances at questions.
In Nov'07, we had so stupidly read the first expression of Question 1 which indicated that it was a Partnership sum..
Since it had featured as a Compulsory Question in May'07, we had taken it lightly and now there ran a chill down our spine. Only in the last 15 minutes, when we actually read the whole question, did we realise that the expression PQR & Co was a mirage. It was actually a PGBP sum.
Again don't be stupid enough to commit silly mistakes like considering the basic exemption limit for a corporate assessee or applying a surcharge of 10 % for a foreign company. You might be giggling rite now when you read this but it could actually happen amidst the exam hall tension and anxiety. So better steel your nerves dude
The study of Taxation is an endeavour to win the war. Don't be fussy about winning each battle.
Best of Luck
If for the purposes of the Income Tax Act, they want a donkey to be called a horse, they have every right to have their wishes fulfilled. The deeming fiction created by legislation often catches you unawares.
More to go
Section 115WA of the Income Tax Act
In addition to Income Tax, there shall be charged for every AY additional income tax in respect of fringe benefits provided or deemed to have been provided by an employer to his employees
So the question which areises is whether FBT is applicable in cases where an eligible employer has got only one employee in his establishment.
I am dead sure that you will be tempted to reply in the negative.
Here's the googly for you
The 111 year old "General Clauses Act" has an interesting segment which goes as follows
In all Central Acts and Regulations, unless there is anything repugnant in the subject or context:—
Words in the singular shall include the plural, and vice versa.
Howzatt????
And mind you this was only the tip of the iceberg.....
In legal parlance...the list of such centreshocks can at best be illustrative but never exhaustive....
Before I proceed any further, I need to emphasise that there is a subtle difference between studying taxation :
1)For your bread and butter (I mean in case you want to pursue it as a career post-qualification) and
2)Just for the CA Final exam itself.
While it is highly recommended that you pursue your study of this subject with intense zeal and enthusiasm, a more practical view would be to considet DT as simply Paper VII with 100 marks at stake, out of an aggregate total of 800, which comes to 12.5 % of the CA Final portfolio.
So you need to accordingly decide on the time you are going to spend on this subject. There is no point being gripped by DT mania and have a craving to master the entire gamut of legislative histories, judicial interpretations, case laws and section numbers.
From an examination perspective, you got to be pragmatic and simply move on...
Analyse everything from the cost vis a vis returns perspective !!
Is the time you would need to spend to master a particular topic worth the marks involved ???
Case Studies
Only when the tide goes out does one understand who had been swimming naked...rite?
In CA Final, there are subjects like Auditing where you can always punch in some global gyaan , topics like QT where you need to blindly follow a prescribed algorithm and snatch away marks from the examiner.
But this subject belongs to a different league altogether.
Taxation belongs to those who dare to think beyond the obvious.
It is an amalgamation of a theory as well as a practical paper.
While you need to be thorough with the provisions, an integrated approach needs to be followed while solving the sums.
e.g. while solving a problem which is apparently based only on application of Section 80 IC, you need to be alive to the possibility of Minimum Alternate Tax (MAT) creeping in like a hidden monster and wreak havoc.
Similarly you got to connect a problem based on Section 80QQB (Royalty Income of Authors) with the stipulations of Section 91 (Double Taxation)in specific cases.
However, contrary to popular perception, all you need to win this battle is tons of conceptual clarity.
Some case studies are simply meant to be beyond comprehension of the general student fraternity. They are like the popular 'Thums Up' advertisiments wherein it would be fatal to try performing the tricks yourself. They are only meant to be watched and enjoyed.
Dont lull yourself into believing that you are infallible and would be able to solve each and every sum entirely .I think that would be demanding too much out of yourself and would only diminish your self confidence in the long run.
Taxation teachers owing to paucity of time discuss only the phooljhudis(fireworks) in the class but that should not lead you to get the wrong impression that the entire question paper would be laced only with these literally impossible sums. Trust me , besides a couple of phooljhudis, there would be cakewalks plethora in any question paper.
Just learn the trick from each case study and simply move on instead of getting emotionally bogged down by them.
Professionals make things look easy because they have mastered the fundamentals of whatever they do. In a short timespan of just 4 months which is availbale to you, even if you study taxation 24*7 , you will invariably fail miserably in becoming an expert. It is so vast.But certainly you will end up screwing your 8 subject CA Final preparation in the process.
Don't endeavour to get expert knowledge. Just try to scrape through with functional knowledge.
However, a large number of sums are always worth an honest attempt and there is no point simply jotting down the solutions in your exercise book and bringing them home to appreciate their beauty for the rest of your lifetime.
Exercise your mental faculties a bit . Occassionally take a stance ..whether in the class or at home practising problems.
If you can't be a galloping horse, at least don't turn yourself into a sleepy cow.
Again a lot many students have this strange habit of literally verifying from a standard textbook like VKS, whether what is written in their tuition teacher's study material is correct or not. They are on Cloud Nine if they are able to spot out a contradiction between the two. Trust me, the exercise is simply not worth the effort. These contradictions which surface can be ignored on materiality grounds from an examination perspective. On the contrary, you could end up losing your precious preparation time in the process and become all the more confused.I don't think any wise student should want to have his concepts clouded by controversies.
Wealth Tax is simply 10-15 marks handed over to you on a platter. The most challenging aspect is the House Property Valuation sum. The rest of it, I believe is manageable and could easily facilitate implementation of the "Well Begun Is Half Done" maxim, both during your preparation as well as in the exam hall.
For the Sections 80IA and the 80IBs or the 10As and the 10Bs, I am sure that each time you study them , you will get lost in the murky waters. The ideal way out would be preparing a chart instead.
for e.g. 10A , 10AA, 10B and 10BA along the column headings
12-13 conditions ranging from that of used plant and machinery to that of furnishing a return u/s 139(1) could be plotted along the rows.
All you need to do is put either a cross or a tickmark in each cell or punch in the relevant year say 1999-2000 for 10A ......04-05 for 10AA etc. in the unabsorbed depreciation and b/f loss not set off till row.
Acronyms like I am Builder for 80IAB could work.
Depreciation in PGBP, Assessment Procedure and Non Resident are the three most difficult segments of the syllabus offering infinite potential to the examiner to act malicious.
While there is no fool-proof strategy for them, I am sure that repeated reading of the provisions would slowly help you recover from the initial shock.
Beware of certain inherent fineprints. You need to be be extra cautious with expressions like " AO must put on record a new fact" , "revised return steps into the shoes of the original return" and "erroneous and prejudicial to the interests of revenue ". About a dozen odd mutations of the same story would inadvertently come as a bolt from the blue to you.Can't help it dude??? You have to have this reality with a pinch of salt and hope that ultimately you are able to crack the examination problem (either by your own intellect/through hall collection).
In Assessment Procedure, the plethora of time limits like "12 months from the end of the month in which return is filed" applicable to proceedings under different sections would irritate. Try preparing a chart for them.
The Non Resident chapter could make you utter the Veer Zaara song "Ye Hum Aa Gaye Hain Kahaan???"
The sea of tax rates at the very outset of the chapter would confuse even the most patient of the lot.
The most difficult sum I found was one pertaining to a Non Resident Indian where there is an option to choose between two alternative taxation structures for income from Specified Assets.
Again the Dividend Stripping/Bonus Stripping segment is an eyesore. It is not feasible to expect that in the examination hall amidst all the tension and pressure of performance, you will remain as cool as a cucumber to identify that Section 94(7)...Bonus Stripping would override all other provisions and would prevail over Dividend Stripping ....and then again apply the Section 73 condition ....If you try something like "Mein Bhool Jayungaa" stuff..its nothing but application of the Von Restorff Effect. With a bit of conceptual understanding as to why this section was inserted, things will be relatively simpler.
Try small stories say titled "Teen Muhinaa Pehle Nau Muhinaa Baad" ....i.e. 3 mnths before 9 mnths later for time limits of Dividend Stripping
The only thing tricky in the TDS chapter is the exceptions to each section .You have no choice except to simply mug them up and then try to apply them in case studies like joint application of Section 40(a)(i)(a)with Section 194A w.r.t. zero coupon bonds.
Finally PGBP and CG
These are the most interesting ...but simultaneously the most voluminous of the lot. Before emabarking on their pursuit, just have a look at the scanner and do some Cost Benefit Ratio Analysis and then decide the time you are going to spend.
Only the most recent case laws and that too at the Supreme Court level are the most relevant. If you are lucky enough you could get one from the ICAI's website in your term like we did (although I had not known about it)
Finally a bit on the examination
DT is an attempt all questions affair. So you really can't afford to skip any topic, even say the minnows like Shipping Companies in the course of preparation or revision on exam eve.
Again don't hastily jump to conclusions after cursory glances at questions.
In Nov'07, we had so stupidly read the first expression of Question 1 which indicated that it was a Partnership sum..
Since it had featured as a Compulsory Question in May'07, we had taken it lightly and now there ran a chill down our spine. Only in the last 15 minutes, when we actually read the whole question, did we realise that the expression PQR & Co was a mirage. It was actually a PGBP sum.
Again don't be stupid enough to commit silly mistakes like considering the basic exemption limit for a corporate assessee or applying a surcharge of 10 % for a foreign company. You might be giggling rite now when you read this but it could actually happen amidst the exam hall tension and anxiety. So better steel your nerves dude
The study of Taxation is an endeavour to win the war. Don't be fussy about winning each battle.
Best of Luck
Tuesday, February 12, 2008
Paper 6 : MICS
Hichkiya dilakar ye kaisi uljhan badha rahe ho,
Aankhen band hain phir bhi nazar aa rahe ho,
Bus itna bata do humein,
Yaad kar rahe ho ya apni yaad dila rahe ho!!!
MICS has this expectional power to torment you even in your dreams.As a matter of fact, I used to feel scary about the idea of even waking up in the morning as MICS was lined up as the first thing to be studied as per the routine suggested by the wise people around.Each morning you would wake up to the shock of find your memory under severe distress.Because no matter how many times you read it, all that remained was a hazy hazy picture .It seemed as if you were reading it for the first time in your life. 'My Intelligence Completely Stolen'..the auto-suggestion sinks in so inadvertently.Can't help it dude!!!!!!
Wise men have opined that the advantage of a bad memeory is that one enjoys several times the same good things for the first time.What a joke..at least not applicable to MICS!!!!!!!
The entire subject is a memory based melodrama. The question paper simply tests your ability to mug up this intricately designed, high sounding crap.Some people are exceptional at rattofying but lesser mortals like us used to shiver at the mere idea of retaining those enigmatic points wrapped in a riddle surrounded by mystery.
The examiner does not test your conceptual clarity at all. All that he shouts vociferously is "Tum mujhe points do..main tumhe marks doonga"
So what's the way out of this ruckus. Imagine MICS as a monster..a monster who's standing in between you and the prestigious & money spinning CA degree.Be dead determined that the Davids , residing deep inside you ,are going to defeat the Goliaths challenging your future prospects with a smirk writ all over their face.
Whenever you feel inclined to give up and cite the cliched story .."Humko kuch yaad nahi ho raha", just imagine the feat to be accomplished by someone you violently hate..that someone could be anyone..for e.g. your ex-crush who is also pursuing CA, lets say, at the Inter level.The moment you realise that she'll turn out to be academically more qualified in life than you simply because she managed to notch up a miraculous 40 in the MICS paper which you couldn't, even after your 5th attempt;your gloomy memory will suddenly start rocking.
Hey that was just for fun....will not work out in reality.
Actually the problem is that we have had no exposure whatsoever to Systems Audit in our articleship and so concepts like SDLC and CASE sound like Latin and Greek to us.The initial 6 chapters are awesome and so is the chapter on ERP . But what about the rest??? The opinion is unanimous across the student fraternity!!!
Try this
Around 15-20 four hour of brainstorming sessions with a friend in an equally dismal state of affairs as you are, are extremely productive..especially towards the end of the preparation. My friend Varun and myself used to critically analyse each paragraph overcoming all the fear psychosis. We relate them to our day to day life (for e.g. the activity scheduling for buying a new shirt). We simulated the worst case scenarios . We used to talk like "Yaar, at least this should be the bare minimum we need to remember to cover up our lack of depth ".So we had strategies in store for even eventualities involving a complete memory breakdown in respect of individual answers.We used to devise interesting acronyms..I've mentioned some towards the end.
This coupled with strategy number 2 should work like a magic bullet to scare away the devilish fear factor.
Get hold of a friend who's taking CA Finals the next term.since he has just initiated this tumultous journey, he's comparatively fresh on the enthusiasm front and would readily agree to attending your lectures.He would be simply instructed to keep on nodding his head with the glint in his eye at its usual crest. You will feel that you at least know something as compared to the dumbo across and this will enable your self-confidence to zoom to stratospheric levels.
Use all creative tricks a professor uses to make the topic interesting for his students. Like voice mutations ...singing multi-multi-multi-multi as a rhyme for an answer for Features of ERP...
Making a thing outstanding through Von Restorf Effect. For betetr chances of long term memory retention, a difficult topic should "stand out like a sore thumb" .e.g. if a person examines a shopping list with one item highlighted in bright green, he will be more likely to remember the highlighted item than any of the others.This distinctiveness may also come out in the form of humor (however silly it may be).
Its a battle where stakes are high and you need to employ every weapon in your arsenal to emerge victorious.
Items to be left
Chapter on Design of Computerised Applications.
Remember Aamir Khan in a super flop movie Daulat ki Jung , released in the early 90s. Miraculously, when he just saw a map depicting the secret route to the treasure and then tore away the paper ;eventually succeeding in guiding the entire gang to the glittering diamonds in a far-off hilly cave.
On similar lines, this particular chapter makes a valiant effort to drill into your arteries and veins absurd diagrams, albeit logical. Analyse the scanner and you'll find a sureshot 10 marks questions each term .But unless you've got a photogenic memory, you'll land up losing this Daulat Ki Jung.However this question can be eliminated via the choices offered.
The ERP chapter needs to be studied only till Post Implementation Blues. Beyond that is all nonsense. At the best, mug up five names of ERP Vendors.
CASE Tools is again a chapter which torments but is important for at least a 5 mark question in the exam. At least get a superficial knowledge of the vague concepts ..like what is a CASE Tool!!!
You may also consider leaving out the questions asked in your immediately preceding term. Its a quite a safe risk ..if I can frame it that way.Lolz
Finally the acronyms
Try this for Heading No 8.3 Output Design
CFMFTV (I am dead sure that you will remember it)
C: Content
F: Form
M :Media
F :Format
T :Timeliness
V :Volume
Try this for Heading No 8.18 Coding Methods
Individuals suggest permanent expansion in a convenient space
Individuality
Suggestive
Permanence
Expandability
Convenience
Space : Brevity as regards the number of characters involved in the code.
Infinite stories can be framed for each answer.
Heading No. 13.25
Try this absurd story
Unauthorised Intrusion hoga toh Energy Variation ki wajah se Fire lagegi. Fire Bhujane ke liye jab tak Water aayega , kaafi Pollution ho chuka hooga .
While I have cited some potentially useful ones, you could try and devise some more on similar lines.Trust me it will be fun.
All the best once again for My Intelligence Completely Stolen .
Group II rocks!!! lolz
Aankhen band hain phir bhi nazar aa rahe ho,
Bus itna bata do humein,
Yaad kar rahe ho ya apni yaad dila rahe ho!!!
MICS has this expectional power to torment you even in your dreams.As a matter of fact, I used to feel scary about the idea of even waking up in the morning as MICS was lined up as the first thing to be studied as per the routine suggested by the wise people around.Each morning you would wake up to the shock of find your memory under severe distress.Because no matter how many times you read it, all that remained was a hazy hazy picture .It seemed as if you were reading it for the first time in your life. 'My Intelligence Completely Stolen'..the auto-suggestion sinks in so inadvertently.Can't help it dude!!!!!!
Wise men have opined that the advantage of a bad memeory is that one enjoys several times the same good things for the first time.What a joke..at least not applicable to MICS!!!!!!!
The entire subject is a memory based melodrama. The question paper simply tests your ability to mug up this intricately designed, high sounding crap.Some people are exceptional at rattofying but lesser mortals like us used to shiver at the mere idea of retaining those enigmatic points wrapped in a riddle surrounded by mystery.
The examiner does not test your conceptual clarity at all. All that he shouts vociferously is "Tum mujhe points do..main tumhe marks doonga"
So what's the way out of this ruckus. Imagine MICS as a monster..a monster who's standing in between you and the prestigious & money spinning CA degree.Be dead determined that the Davids , residing deep inside you ,are going to defeat the Goliaths challenging your future prospects with a smirk writ all over their face.
Whenever you feel inclined to give up and cite the cliched story .."Humko kuch yaad nahi ho raha", just imagine the feat to be accomplished by someone you violently hate..that someone could be anyone..for e.g. your ex-crush who is also pursuing CA, lets say, at the Inter level.The moment you realise that she'll turn out to be academically more qualified in life than you simply because she managed to notch up a miraculous 40 in the MICS paper which you couldn't, even after your 5th attempt;your gloomy memory will suddenly start rocking.
Hey that was just for fun....will not work out in reality.
Actually the problem is that we have had no exposure whatsoever to Systems Audit in our articleship and so concepts like SDLC and CASE sound like Latin and Greek to us.The initial 6 chapters are awesome and so is the chapter on ERP . But what about the rest??? The opinion is unanimous across the student fraternity!!!
Try this
Around 15-20 four hour of brainstorming sessions with a friend in an equally dismal state of affairs as you are, are extremely productive..especially towards the end of the preparation. My friend Varun and myself used to critically analyse each paragraph overcoming all the fear psychosis. We relate them to our day to day life (for e.g. the activity scheduling for buying a new shirt). We simulated the worst case scenarios . We used to talk like "Yaar, at least this should be the bare minimum we need to remember to cover up our lack of depth ".So we had strategies in store for even eventualities involving a complete memory breakdown in respect of individual answers.We used to devise interesting acronyms..I've mentioned some towards the end.
This coupled with strategy number 2 should work like a magic bullet to scare away the devilish fear factor.
Get hold of a friend who's taking CA Finals the next term.since he has just initiated this tumultous journey, he's comparatively fresh on the enthusiasm front and would readily agree to attending your lectures.He would be simply instructed to keep on nodding his head with the glint in his eye at its usual crest. You will feel that you at least know something as compared to the dumbo across and this will enable your self-confidence to zoom to stratospheric levels.
Use all creative tricks a professor uses to make the topic interesting for his students. Like voice mutations ...singing multi-multi-multi-multi as a rhyme for an answer for Features of ERP...
Making a thing outstanding through Von Restorf Effect. For betetr chances of long term memory retention, a difficult topic should "stand out like a sore thumb" .e.g. if a person examines a shopping list with one item highlighted in bright green, he will be more likely to remember the highlighted item than any of the others.This distinctiveness may also come out in the form of humor (however silly it may be).
Its a battle where stakes are high and you need to employ every weapon in your arsenal to emerge victorious.
Items to be left
Chapter on Design of Computerised Applications.
Remember Aamir Khan in a super flop movie Daulat ki Jung , released in the early 90s. Miraculously, when he just saw a map depicting the secret route to the treasure and then tore away the paper ;eventually succeeding in guiding the entire gang to the glittering diamonds in a far-off hilly cave.
On similar lines, this particular chapter makes a valiant effort to drill into your arteries and veins absurd diagrams, albeit logical. Analyse the scanner and you'll find a sureshot 10 marks questions each term .But unless you've got a photogenic memory, you'll land up losing this Daulat Ki Jung.However this question can be eliminated via the choices offered.
The ERP chapter needs to be studied only till Post Implementation Blues. Beyond that is all nonsense. At the best, mug up five names of ERP Vendors.
CASE Tools is again a chapter which torments but is important for at least a 5 mark question in the exam. At least get a superficial knowledge of the vague concepts ..like what is a CASE Tool!!!
You may also consider leaving out the questions asked in your immediately preceding term. Its a quite a safe risk ..if I can frame it that way.Lolz
Finally the acronyms
Try this for Heading No 8.3 Output Design
CFMFTV (I am dead sure that you will remember it)
C: Content
F: Form
M :Media
F :Format
T :Timeliness
V :Volume
Try this for Heading No 8.18 Coding Methods
Individuals suggest permanent expansion in a convenient space
Individuality
Suggestive
Permanence
Expandability
Convenience
Space : Brevity as regards the number of characters involved in the code.
Infinite stories can be framed for each answer.
Heading No. 13.25
Try this absurd story
Unauthorised Intrusion hoga toh Energy Variation ki wajah se Fire lagegi. Fire Bhujane ke liye jab tak Water aayega , kaafi Pollution ho chuka hooga .
While I have cited some potentially useful ones, you could try and devise some more on similar lines.Trust me it will be fun.
All the best once again for My Intelligence Completely Stolen .
Group II rocks!!! lolz
Thursday, January 31, 2008
Paper 5: Costing
Socrates was once asked ..."What is the cure for love at first sight??"
The philosopher replied ..."Take a close second look. It helps."
This precisely should be one's approach to the Costing paper . You don't have to Lose Your Hair trying to flirt with Seema....I mean ..CIMA....
She is simply not worth it...Would throw attitude and I reiterate, tons of it......At the end you will feel frustrated ,ruing the time you have been wasting on her.I feel, one should spend precious time only on those type of sums that he would be able to solve confidently, if asked in the examination. Generally, we have a tendency to get overawed by certain hi-fi sums ....(refer those 1.5 page CIMA(Chartered Institute of Management Accountants, London) sums in the study mats of reputed teachers.In our desperation, we make an attempt to commit them to memory with the faint hope that we will be able to vommit them on the paper. But what is the point dude ? I can assure you that in the examination hall; amidst all the tension, you will not feel like even having a look at them...
If you are able to solve a particular sum applying your logic spontaneously,only then would it be worth putting in the effort ..But if not...Chak De ......Be practical and remember that there are smarter strategies in store for swimming against the tide.
Usually, they set up a difficult Question No 1, which is compulsory in nature ..A student who falls into this devious trap at the very outset of the three hours, may end up screwing up his results.They need to be attempted at the fag end.
What would be the ideal way out of this predicament ???
The underlying approach, on a macro level, should be as follows:
Full marks on the minnows .....there will certainly be plenty of them in any paper..you simply have to patiently search for them in the question paper.
Besides you can always score some part marks on the teasers....the CIMA sums
BELIEVE ME IT'S IMPORTANT NOT TO GET BOGGED DOWN BY THE HYPE AND HOOPLA SURROUNDING THE COSTING PAPER !!B COZ THIS MAY EVENTUALLY PROVE TO BE VERY COSTLY IN TERMS OF THE DAMAGE INFLICTED ON YOUR SELF-CONFIDENCE.
QT is your best friend.Assigment and Simulation are a cakewalk. But you need to be wary of committing silly mistakes while applying the mechanical rules. Plus there are certain typical sums who's basic logic needs to remembered e.g.the travelling salesman problem on Assignment asked in Nov'07.
Transporation is a bit difficult as regards the kind of problems which test your understanding of the concept of
a)solution feasibility (Number of occupied cells in relation to the number of rows and columns in the matrix)
b)profit maximisation objective problems to be solved via minimising the opportunity cost.
PERT/CPM is a teaser, especially the Crashing part..your self-confidence would also crash for a moment. But over a period of time, repeated practice would help you get out of that initial shock. Please remember that in the exams, a very comprehensive problem on Crashing is rarely asked.You can comfortably sail through even if you can solve the simpler ones...like merely identifying the alternative possibilities to reduce project duration.The intricacies which are ofetn tested include among others the folowing:
a)While Latest Finish Time(LFT)is Earliest Finish Time(EFT)+Path Duration(t) ....Earliest Start Time(EST) = Latest Start Time(LST)-t.These formulaes may be a bit confusing,especially if you don't understand their logic..even i am not very sure whether i have jotted down the right ones here.
b)The practical application of the Float concept.
Also prepare for some 2-3 marks theory on say Resource Levelling, Resource Smoothing and stuff.
Learning Curve again is an easy battle.All the sums are simply formulae based. Some fineprints are required to be understood,say,the observation that learning curve would apply to even the trial production of samples ..
Plus some smart shortcuts .....these are nothing but slight mutations of the basic formulae to enable a student to arrive at quicker solutions.
Linear Programming(LP) is another scoring portion, especially if you get a sum based on the Graphical Method. Simplex Method is also the examiner's favourite. But the problem with Simplex Method is that expect its name, nothing is simple about it. Although quite a lot of intellectuals argue that it is a very easy technique, I had to attend my tuition classes twice to understand it properly. The horseshoe rule is a sure shot winner.If you understand it, Simplex Method may actually be a simpler, much simpler affair.
Remember that it is not necessary that you stick to Mr. Alok Chakravorty's approach for all problems. Teachers like Mr. Anil Shah sometimes offer QT approaches which are much simpler and time-effective.
Costing Theory coupled with QT will be your saviour in those papers meant to dodge students. Once you solve the QT sums correctly and then move on to attempt 35-40 marks of theory,it would would boost your confidence by leaps and bounds in the examination hall.And for certainty, you will scrape through this paper if you are not able to attempt a major chunk of the remaining portion.
The only problem with Costing theory is that it is difficult to remember. For retention, repetition is the key.
As regards the study material: try Anil Shah's Mat which encapsulates the whole thing in 50 odd pages. Compared to the other available options in Calcutta,the best part in Anil Shah's Mat is that the content is very well drafted, the thought process applied does not intimidate and you will not have to glean tits and bits of questions scattered across the dozens of pages in the entire mat of AC.
Some theory stuff ,like Transfer Pricing, is very logical and appeals instantly to your senses whereas the ilk of Value Chain Analysis are not exactly friendly.
Can't help it dude..Simply mug up the points,although I do agree that it is easier said than done. For this segment, you can adopt an interesting approach for rattofying which I've explained in the section on MICS.
Now coming to the segment that hits students below the belt.
Let's start with Standard Costing. This chapter is often taught in a manner so as to create a fear psychosis in the minds of students, so as to kill their enthusiasm and pride regarding their hitherto acquired knowledge of costing.The impression one gets is that Costing is a spiralling web.
I believe that the mechanical approach is rather unnecessary. Before you embark on this potentially tumultous journey, fasten your seat belts.A sea of formulae is going to catch you unawares.
Try this to mitigate the phobia
Material Cost Variance(MCV) = Budgeted Cost for Actual Output-Actual Cost
Now if I want to split my analysis of this variance into the pricing and the consumption efficiency components, I need to keep rates unchanged for a part of the story.
So I introduce ..let's say an absurd expression ..Actual Input*Budgeted Rate into my computation
So my original formula becomes
MCV = Budgeted Cost for Actual Output-[Actual Input*Budgeted Rate ]+[Actual Input*Budgeted Rate] -Actual Cost
Clubbing the first part, I get ;
Material Usage Variance(MUV)= Budgeted Cost for Actual Output-Actual Input*Budgeted Rate
and the remaining fragment is :-
Material Price Variance(MPV)=Actual Input*Budgeted Rate -Actual Cost
So isn't is so easy to understand ????MCV=MUV+MPV ....
To generate the order of the variances , please remember the acroynm CUP Cost Usage Price
Similarly you can prepare logical approaches for all the formulaes....at least for a superficial working knowledge.
If you want to remember all the formulaes like Calendar Variance and stuff ; my heartiest wishes are with you..you are a stud, a gem, God's gift to Mankind etc etc.
The next part of Std Costing is also taught very mechanically...
I am talking about the methods of accounting, namely,Single Plan,Partial Plan and Integrated Plan.
Sadly no memory aids were offered to us by our teachers ...So I had to devise some of them on my own to dispel the confusion that arises as regards the manner in which the variances are to be disposed off ..Don't you get pyched up!!!!!!!
Partial Method is where we are lazy to think and apply our brains partially ..so all the variances are dumped in one place .
In contrast, in the Singular Method, each individual in the organisation is singularly held responsible for his failures. Since Material Price Variance(MPV) arises because of the Purchase Manager's fault, so this anomaly ideally should not affect the Store Ledger Control(SLC) a/c .
Therefore, all units purchased enter SLC at standard rates.
Plus the organisation suffered on the entire quantity purchased in the period and not just that consumed. So Quantity to be considered is to be correctly chosen while calculating MPV under this plan.
Similar will be the approach as regards the opening as well as the closing stock...Just remember mechanically that they appear at standard rates in the SLC a/c.
The bottomline is that you just need to devise some stupid/intelligent ways to remember .The ends are important and not the means!!!!Also it will be useful if you simply prepare a proforma format for all the above mentioned accounting methods ...and go through it continuously.
Reconciliation sums are not easy but at least they appeal to your IQ. Some golden rules on this are to be kept in one place just like Valuation of Goodwill & Shares in Accountancy. Then life will be a smooth sailing.
Decision Making is my favourite ......I really love those Relevant Costing sums although you may not agree with me on this ..The chapter simply demands a Marwaari approach to taking business decisions . What is gone is bygone...i.e. its a sunk cost Life's future decisions cannot be affected by poor decisions taken by the organisation in the past (of spending exorbitant sums as Overheads).So in the present moment while you evaluate future strategies, say Make or Buy; you simply have to ignore overheads if they are charged/absorbed/added/recovered/applied etc. In Decision Making, we keep on making mistakes on the Overheads front and beware of them.Any cost that is fixed in nature, even if it is expressed in relation to a variable cost ..say Overheads as 200% of Direct Wages is irrelevant..They are to are to be simply ignored while attempting Relevant Costing sums and a note needs to be attcahed at the end of the solution.
ABC Analysis has the privilege of being considered the most notorious topic, although I find the rationale cited by most doomsayers to be quite absurd. Once just the two concepts of cost pools and cost drivers are crystal clear to you, trust me you will be able to solve a majority of the sums.Waise; Seema nahi patne wali...koshish bhi mat karna
Transfer Pricing again goes on similar lines.Sounds complicated but is actually not.
Problems on the Service Sector Costing are easy enough and you will be very lucky to get these types in your question paper.
Random topics like JIT,MRP, LIfe Cycle Costing don't merit much of a botheration.They are rather simple and scoring,especially when you compare them with the monsters.
Just keep one thing in mind. Costing demands a lot of your mental presence. You need to have an eye for detail and be alive to the possibilites of simple follies playing spoilsport
All the best!!
The philosopher replied ..."Take a close second look. It helps."
This precisely should be one's approach to the Costing paper . You don't have to Lose Your Hair trying to flirt with Seema....I mean ..CIMA....
She is simply not worth it...Would throw attitude and I reiterate, tons of it......At the end you will feel frustrated ,ruing the time you have been wasting on her.I feel, one should spend precious time only on those type of sums that he would be able to solve confidently, if asked in the examination. Generally, we have a tendency to get overawed by certain hi-fi sums ....(refer those 1.5 page CIMA(Chartered Institute of Management Accountants, London) sums in the study mats of reputed teachers.In our desperation, we make an attempt to commit them to memory with the faint hope that we will be able to vommit them on the paper. But what is the point dude ? I can assure you that in the examination hall; amidst all the tension, you will not feel like even having a look at them...
If you are able to solve a particular sum applying your logic spontaneously,only then would it be worth putting in the effort ..But if not...Chak De ......Be practical and remember that there are smarter strategies in store for swimming against the tide.
Usually, they set up a difficult Question No 1, which is compulsory in nature ..A student who falls into this devious trap at the very outset of the three hours, may end up screwing up his results.They need to be attempted at the fag end.
What would be the ideal way out of this predicament ???
The underlying approach, on a macro level, should be as follows:
Full marks on the minnows .....there will certainly be plenty of them in any paper..you simply have to patiently search for them in the question paper.
Besides you can always score some part marks on the teasers....the CIMA sums
BELIEVE ME IT'S IMPORTANT NOT TO GET BOGGED DOWN BY THE HYPE AND HOOPLA SURROUNDING THE COSTING PAPER !!B COZ THIS MAY EVENTUALLY PROVE TO BE VERY COSTLY IN TERMS OF THE DAMAGE INFLICTED ON YOUR SELF-CONFIDENCE.
QT is your best friend.Assigment and Simulation are a cakewalk. But you need to be wary of committing silly mistakes while applying the mechanical rules. Plus there are certain typical sums who's basic logic needs to remembered e.g.the travelling salesman problem on Assignment asked in Nov'07.
Transporation is a bit difficult as regards the kind of problems which test your understanding of the concept of
a)solution feasibility (Number of occupied cells in relation to the number of rows and columns in the matrix)
b)profit maximisation objective problems to be solved via minimising the opportunity cost.
PERT/CPM is a teaser, especially the Crashing part..your self-confidence would also crash for a moment. But over a period of time, repeated practice would help you get out of that initial shock. Please remember that in the exams, a very comprehensive problem on Crashing is rarely asked.You can comfortably sail through even if you can solve the simpler ones...like merely identifying the alternative possibilities to reduce project duration.The intricacies which are ofetn tested include among others the folowing:
a)While Latest Finish Time(LFT)is Earliest Finish Time(EFT)+Path Duration(t) ....Earliest Start Time(EST) = Latest Start Time(LST)-t.These formulaes may be a bit confusing,especially if you don't understand their logic..even i am not very sure whether i have jotted down the right ones here.
b)The practical application of the Float concept.
Also prepare for some 2-3 marks theory on say Resource Levelling, Resource Smoothing and stuff.
Learning Curve again is an easy battle.All the sums are simply formulae based. Some fineprints are required to be understood,say,the observation that learning curve would apply to even the trial production of samples ..
Plus some smart shortcuts .....these are nothing but slight mutations of the basic formulae to enable a student to arrive at quicker solutions.
Linear Programming(LP) is another scoring portion, especially if you get a sum based on the Graphical Method. Simplex Method is also the examiner's favourite. But the problem with Simplex Method is that expect its name, nothing is simple about it. Although quite a lot of intellectuals argue that it is a very easy technique, I had to attend my tuition classes twice to understand it properly. The horseshoe rule is a sure shot winner.If you understand it, Simplex Method may actually be a simpler, much simpler affair.
Remember that it is not necessary that you stick to Mr. Alok Chakravorty's approach for all problems. Teachers like Mr. Anil Shah sometimes offer QT approaches which are much simpler and time-effective.
Costing Theory coupled with QT will be your saviour in those papers meant to dodge students. Once you solve the QT sums correctly and then move on to attempt 35-40 marks of theory,it would would boost your confidence by leaps and bounds in the examination hall.And for certainty, you will scrape through this paper if you are not able to attempt a major chunk of the remaining portion.
The only problem with Costing theory is that it is difficult to remember. For retention, repetition is the key.
As regards the study material: try Anil Shah's Mat which encapsulates the whole thing in 50 odd pages. Compared to the other available options in Calcutta,the best part in Anil Shah's Mat is that the content is very well drafted, the thought process applied does not intimidate and you will not have to glean tits and bits of questions scattered across the dozens of pages in the entire mat of AC.
Some theory stuff ,like Transfer Pricing, is very logical and appeals instantly to your senses whereas the ilk of Value Chain Analysis are not exactly friendly.
Can't help it dude..Simply mug up the points,although I do agree that it is easier said than done. For this segment, you can adopt an interesting approach for rattofying which I've explained in the section on MICS.
Now coming to the segment that hits students below the belt.
Let's start with Standard Costing. This chapter is often taught in a manner so as to create a fear psychosis in the minds of students, so as to kill their enthusiasm and pride regarding their hitherto acquired knowledge of costing.The impression one gets is that Costing is a spiralling web.
I believe that the mechanical approach is rather unnecessary. Before you embark on this potentially tumultous journey, fasten your seat belts.A sea of formulae is going to catch you unawares.
Try this to mitigate the phobia
Material Cost Variance(MCV) = Budgeted Cost for Actual Output-Actual Cost
Now if I want to split my analysis of this variance into the pricing and the consumption efficiency components, I need to keep rates unchanged for a part of the story.
So I introduce ..let's say an absurd expression ..Actual Input*Budgeted Rate into my computation
So my original formula becomes
MCV = Budgeted Cost for Actual Output-[Actual Input*Budgeted Rate ]+[Actual Input*Budgeted Rate] -Actual Cost
Clubbing the first part, I get ;
Material Usage Variance(MUV)= Budgeted Cost for Actual Output-Actual Input*Budgeted Rate
and the remaining fragment is :-
Material Price Variance(MPV)=Actual Input*Budgeted Rate -Actual Cost
So isn't is so easy to understand ????MCV=MUV+MPV ....
To generate the order of the variances , please remember the acroynm CUP Cost Usage Price
Similarly you can prepare logical approaches for all the formulaes....at least for a superficial working knowledge.
If you want to remember all the formulaes like Calendar Variance and stuff ; my heartiest wishes are with you..you are a stud, a gem, God's gift to Mankind etc etc.
The next part of Std Costing is also taught very mechanically...
I am talking about the methods of accounting, namely,Single Plan,Partial Plan and Integrated Plan.
Sadly no memory aids were offered to us by our teachers ...So I had to devise some of them on my own to dispel the confusion that arises as regards the manner in which the variances are to be disposed off ..Don't you get pyched up!!!!!!!
Partial Method is where we are lazy to think and apply our brains partially ..so all the variances are dumped in one place .
In contrast, in the Singular Method, each individual in the organisation is singularly held responsible for his failures. Since Material Price Variance(MPV) arises because of the Purchase Manager's fault, so this anomaly ideally should not affect the Store Ledger Control(SLC) a/c .
Therefore, all units purchased enter SLC at standard rates.
Plus the organisation suffered on the entire quantity purchased in the period and not just that consumed. So Quantity to be considered is to be correctly chosen while calculating MPV under this plan.
Similar will be the approach as regards the opening as well as the closing stock...Just remember mechanically that they appear at standard rates in the SLC a/c.
The bottomline is that you just need to devise some stupid/intelligent ways to remember .The ends are important and not the means!!!!Also it will be useful if you simply prepare a proforma format for all the above mentioned accounting methods ...and go through it continuously.
Reconciliation sums are not easy but at least they appeal to your IQ. Some golden rules on this are to be kept in one place just like Valuation of Goodwill & Shares in Accountancy. Then life will be a smooth sailing.
Decision Making is my favourite ......I really love those Relevant Costing sums although you may not agree with me on this ..The chapter simply demands a Marwaari approach to taking business decisions . What is gone is bygone...i.e. its a sunk cost Life's future decisions cannot be affected by poor decisions taken by the organisation in the past (of spending exorbitant sums as Overheads).So in the present moment while you evaluate future strategies, say Make or Buy; you simply have to ignore overheads if they are charged/absorbed/added/recovered/applied etc. In Decision Making, we keep on making mistakes on the Overheads front and beware of them.Any cost that is fixed in nature, even if it is expressed in relation to a variable cost ..say Overheads as 200% of Direct Wages is irrelevant..They are to are to be simply ignored while attempting Relevant Costing sums and a note needs to be attcahed at the end of the solution.
ABC Analysis has the privilege of being considered the most notorious topic, although I find the rationale cited by most doomsayers to be quite absurd. Once just the two concepts of cost pools and cost drivers are crystal clear to you, trust me you will be able to solve a majority of the sums.Waise; Seema nahi patne wali...koshish bhi mat karna
Transfer Pricing again goes on similar lines.Sounds complicated but is actually not.
Problems on the Service Sector Costing are easy enough and you will be very lucky to get these types in your question paper.
Random topics like JIT,MRP, LIfe Cycle Costing don't merit much of a botheration.They are rather simple and scoring,especially when you compare them with the monsters.
Just keep one thing in mind. Costing demands a lot of your mental presence. You need to have an eye for detail and be alive to the possibilites of simple follies playing spoilsport
All the best!!
Monday, January 28, 2008
Paper 4 : Law ......oops........ CLSP
There is no special strategy needed to prepare for Law. The book authored by Munish Bhandari simply rocks. Its awesome with its most striking feature being that it is exactly exam-oriented. The answers are drafted in the exact fashion expected by the ICAI examiner. You are not required to even touch the scanner. Past 10 year Problems from CA Examinations have been solved entirely here.
I am not singing sonnets in praise of the writer but i simply acknowledge the fact that by adopting a student-friendly approach,he has has made life a lot easier for us.
Pls remember that the most challenging aspect of the Law syllabus is the sheer volume..it is indeed very interesting .But handling so many Acts , given the time constraint we face , invariably becomes difficult at times . Studying during the 4 mnths/Revising all of them on the eve of the examination becomes a Herculean task. One needs to therefore plan accordingly.
I had made the mistake of spending too much time on Directors . Consequently, I couldn't revise SEBI, SCRA and Producer Companies.
On top of that, in Nov'07, they had goofed us by asking questions on Foreign Companies (after 8 years) , Sole Selling Agents and Miscellaneous Provisions of the Companies Act (never asked before). These were topics that I had left entirely. Questions were there on drafting resolutions pertaining to Managerial Remuneration also. So do have a glance at the Problems from Secretarial Segment also given in Munish Bhandari right at the end of each chapter.
The lesson I learnt was that you need to ensure that the whole syllabus is covered thoroughly and can't take wild risks.
In the topic on Directors , some sections , needless to mention, are very important :- 295,297,299,300 .Mastering the topic well , requires an integrated approach to be followed while studying.
One challenge that you will face is the confusion as regards the applicability of each section. While private companies are excluded from the ambit of quite a many provisions, it is important that you understand the technicalities, in case the question is cunningly based on this particular fineprint. Prepare a chart if you can . The appendix of Munish Bhandari is also quite useful.
Anything that is apparently insignificant, will assume catastrophic proportions in the examination hall. Intricacies like the definition of a calendar year as per the Companies Act mentioned in the chapter on Accounts and Audit ,need to be understood .Why lose unnecessary lose marks!
Again SEBI Guidelines are tough to remember over a long span of time . Try to study the chapter towards the end. Plus even if you can't remember it totally, try as much as you can .One gets step marking even in theory papers.
SCRA is crap. It is too boring .Demutualisation and Corporatisation of stock exchanges are relevant concepts. But since this chapter is totally procedure based, it really does not excite. Try preparing flowcharts for depicting the flow of documents
(Stock Exchange ---------------> SEBI------------------------> Broker)
application / opportunity to be heard
Topics like Competition Act need to be studied partly only ...as the entire Act has still not been notified by the Central Government.The applicable clauses are mentioned in the footnote on page 1 of the chapter in Munish Bhandari.
Interpretation of Statutes is a cakewalk . You get a sureshot 8 marks question from that. The topic is interesting .It will help you in Direct Taxation interpretations also ...e.g. the subtle distinction between 'and' vis a vis 'or'.....'shall' vis a vis 'must'. I don't think that one needs to mug up the Latin terms. Just develop a basic familiarity with them , in case the question is drafted that way.
I am not singing sonnets in praise of the writer but i simply acknowledge the fact that by adopting a student-friendly approach,he has has made life a lot easier for us.
Pls remember that the most challenging aspect of the Law syllabus is the sheer volume..it is indeed very interesting .But handling so many Acts , given the time constraint we face , invariably becomes difficult at times . Studying during the 4 mnths/Revising all of them on the eve of the examination becomes a Herculean task. One needs to therefore plan accordingly.
I had made the mistake of spending too much time on Directors . Consequently, I couldn't revise SEBI, SCRA and Producer Companies.
On top of that, in Nov'07, they had goofed us by asking questions on Foreign Companies (after 8 years) , Sole Selling Agents and Miscellaneous Provisions of the Companies Act (never asked before). These were topics that I had left entirely. Questions were there on drafting resolutions pertaining to Managerial Remuneration also. So do have a glance at the Problems from Secretarial Segment also given in Munish Bhandari right at the end of each chapter.
The lesson I learnt was that you need to ensure that the whole syllabus is covered thoroughly and can't take wild risks.
In the topic on Directors , some sections , needless to mention, are very important :- 295,297,299,300 .Mastering the topic well , requires an integrated approach to be followed while studying.
One challenge that you will face is the confusion as regards the applicability of each section. While private companies are excluded from the ambit of quite a many provisions, it is important that you understand the technicalities, in case the question is cunningly based on this particular fineprint. Prepare a chart if you can . The appendix of Munish Bhandari is also quite useful.
Anything that is apparently insignificant, will assume catastrophic proportions in the examination hall. Intricacies like the definition of a calendar year as per the Companies Act mentioned in the chapter on Accounts and Audit ,need to be understood .Why lose unnecessary lose marks!
Again SEBI Guidelines are tough to remember over a long span of time . Try to study the chapter towards the end. Plus even if you can't remember it totally, try as much as you can .One gets step marking even in theory papers.
SCRA is crap. It is too boring .Demutualisation and Corporatisation of stock exchanges are relevant concepts. But since this chapter is totally procedure based, it really does not excite. Try preparing flowcharts for depicting the flow of documents
(Stock Exchange ---------------> SEBI------------------------> Broker)
application / opportunity to be heard
Topics like Competition Act need to be studied partly only ...as the entire Act has still not been notified by the Central Government.The applicable clauses are mentioned in the footnote on page 1 of the chapter in Munish Bhandari.
Interpretation of Statutes is a cakewalk . You get a sureshot 8 marks question from that. The topic is interesting .It will help you in Direct Taxation interpretations also ...e.g. the subtle distinction between 'and' vis a vis 'or'.....'shall' vis a vis 'must'. I don't think that one needs to mug up the Latin terms. Just develop a basic familiarity with them , in case the question is drafted that way.
Paper 3 : Auditing
Advising someone on how to go about preparing for auditing is a tricky affair as I had adopted a very risky strategy.Luckily the gambit worked for me .But the same may not work for you. Actually it all depends on the question paper.
Audit would always involve some element of guesswork. Invariably, you will be forced to dream up answers in the examination hall.Can't help it dude!!!That is the way things go henceforth.
The chapters to be studied from the book by G Sekar are
Professional Ethics
It would be gr8 if you could cite the applicable clause number in your answers. To remember that ....one can prepare a chart that contains the 32-33 odd clauses. In fact, the author has prepared one page summaries at the beginning of each segment. Even the notifications forming part of the Second Schedule segment on the cap on non-audit fees etc are also worth a read. They are asked very frequently in the exams.
Company Audit I
Company Audit II
Audit Report
From Company Audit, there are a lot of potential case studies that can be asked .
Try mentioning the relevant section , say 227(3)(e) in the paper ..Maybe your effort may not necessarily translate into higher marks but it would certainly show your preparation in good light. Impression always helps a student to be marked on a higher scale by a fussy examiner, in a subjective paper like audit.
You should also try drafting qualifications in Auditors Report.Quite a many of such situations are illustrated in the book.
Questions based on the clauses of CARO are interesting and you will be able to relate them to your practical audit exposure. Also remember the applicability of CARO . Sometimes the questions are based simply on this aspect ...say the "Turnover threshold" of Rs 5 crores ...They test whether you know that turnover includes sale of goods as well as services rendered, whether sales is taken as net of excise or not and stuff.
Accounting Standards and the Guidance Notes will be covered by your Paper 1 preparation.
And there are some 34-35 AAS ..Trust me they would not appeal to you much ...they appear to be kind of esoteric when you read them .......moreover, the sheer volume would irritate. For starters, I think one should try to remember the AAS number and the title.
There is a book by Snow White Publications that captures each AAS in the form of a flowchart/block diagram and the presentation is immensely helpful.
One could go through the ICAI compiler to get a hang of the answering pattern which they expect in a question based on the AAS segment.
Again if your communication skills are good..you can attempt the question to draft stuff like Engagement Letter, with references to the corresponding AAS contents forming an integral part of your answer.
This is the technical stuff that needs to be studied. You can comfortably attempt a substantial part of the paper, if you are well versed with the chapters mentioned above.
The rest of the course is miscellaneous.
Accha there is a topic Banking and Insurance . Honestly speaking, I simply left it .No point doing it .Because most of the times, they spring up new surprises from these topics..like verifying advances to a dotcom company. And all the books like V K Agarwal delve on the past questions. To cover all potential questions , you need to study G Sekar.......Can't comment on whether that's viable/feasible.
Remember the clauses of Form 3CD of Tax Audit.Refer the scanner for what kind of questions can be expected from here.
Get some general gyan on topics like Cost Audit, EDP audit , Stock Exchange, Due Diligence etc from any book you get ....include whatever you know in any answer you frame in the exam . Be smart enough to ensure that you don't convey the impression that you are actually lacking depth in a particular segment.Also your articleship experience will also help in framing logical gupshup.Auditing is one paper where each student's face beams with smiles when he comes out. Because our education system has made us so used to filling pages with general crap.
The examiner also understands that.He's been facing this since ages.
Audit would always involve some element of guesswork. Invariably, you will be forced to dream up answers in the examination hall.Can't help it dude!!!That is the way things go henceforth.
The chapters to be studied from the book by G Sekar are
Professional Ethics
It would be gr8 if you could cite the applicable clause number in your answers. To remember that ....one can prepare a chart that contains the 32-33 odd clauses. In fact, the author has prepared one page summaries at the beginning of each segment. Even the notifications forming part of the Second Schedule segment on the cap on non-audit fees etc are also worth a read. They are asked very frequently in the exams.
Company Audit I
Company Audit II
Audit Report
From Company Audit, there are a lot of potential case studies that can be asked .
Try mentioning the relevant section , say 227(3)(e) in the paper ..Maybe your effort may not necessarily translate into higher marks but it would certainly show your preparation in good light. Impression always helps a student to be marked on a higher scale by a fussy examiner, in a subjective paper like audit.
You should also try drafting qualifications in Auditors Report.Quite a many of such situations are illustrated in the book.
Questions based on the clauses of CARO are interesting and you will be able to relate them to your practical audit exposure. Also remember the applicability of CARO . Sometimes the questions are based simply on this aspect ...say the "Turnover threshold" of Rs 5 crores ...They test whether you know that turnover includes sale of goods as well as services rendered, whether sales is taken as net of excise or not and stuff.
Accounting Standards and the Guidance Notes will be covered by your Paper 1 preparation.
And there are some 34-35 AAS ..Trust me they would not appeal to you much ...they appear to be kind of esoteric when you read them .......moreover, the sheer volume would irritate. For starters, I think one should try to remember the AAS number and the title.
There is a book by Snow White Publications that captures each AAS in the form of a flowchart/block diagram and the presentation is immensely helpful.
One could go through the ICAI compiler to get a hang of the answering pattern which they expect in a question based on the AAS segment.
Again if your communication skills are good..you can attempt the question to draft stuff like Engagement Letter, with references to the corresponding AAS contents forming an integral part of your answer.
This is the technical stuff that needs to be studied. You can comfortably attempt a substantial part of the paper, if you are well versed with the chapters mentioned above.
The rest of the course is miscellaneous.
Accha there is a topic Banking and Insurance . Honestly speaking, I simply left it .No point doing it .Because most of the times, they spring up new surprises from these topics..like verifying advances to a dotcom company. And all the books like V K Agarwal delve on the past questions. To cover all potential questions , you need to study G Sekar.......Can't comment on whether that's viable/feasible.
Remember the clauses of Form 3CD of Tax Audit.Refer the scanner for what kind of questions can be expected from here.
Get some general gyan on topics like Cost Audit, EDP audit , Stock Exchange, Due Diligence etc from any book you get ....include whatever you know in any answer you frame in the exam . Be smart enough to ensure that you don't convey the impression that you are actually lacking depth in a particular segment.Also your articleship experience will also help in framing logical gupshup.Auditing is one paper where each student's face beams with smiles when he comes out. Because our education system has made us so used to filling pages with general crap.
The examiner also understands that.He's been facing this since ages.
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