NEW CA EDUCATION SYSTEM – NEED FOR RE-ALIGNMENT AND GEARING UP

The CA education structure has recently been significantly modified by permitting tenth Grade pass students to join the course and to appear for Common Entrance Examination (CPT) immediately after 12th and to join article trainee of 3.1/2 years thereafter. This has reduced the overall time to complete the chartered accountancy course by more than 2 years and now it would be possible for the new entrants to qualify as a Chartered Accountant within 4 years from the date of their passing their 12th examination.
The inflow of new entrants in chartered accountancy has increased very significantly. As compared to about 35,000 students joining CA course every year, now, within last 6 months more than 1,25,000 students have joined the CA course. The following issues have emerged and are to be strategically addressed by the practicing chartered accountants, members of the profession, students and the Institute of Chartered Accountants of India:

• There is a wide gap between expectations of the Principal (Practicing Chartered Accountant) imparting practical training and the delivery capability of CPT students. Even seniority with which CPT students who undertake practical training is to be increased significantly. 
• A large number of CA firms have so far decided not to entertain undergraduate trainees. Their apprehensions include no prior knowledge of basic audit & taxation principles, non seriousness of CPT students, diversion of attention of CPT students to graduation as well as PCC (CA intermediate) examination as well as devotion of substantial time towards coaching classes.
• The ability of adequate seats for training article students is currently an issue as most of the mid-size firms have exhausted their entire entitlement already. A proposal is under consideration of the Institute to substantially increase the training entitlement to Chartered Accountants. 
• Apprehension of undergoing dummy training by the students on a large scale, arising out of attraction towards full time graduation course in colleges, has to be addressed effectively
• The intensive coaching by private coaching institutions has become prevalent at school level as well as in various entrance examinations. A similar trend has developed in respect of Chartered Accountancy Course wherein for the CPT (entrance examination), PCC (intermediate) as well as for final examination, the students are opting to undertake private coaching intensively. A large number of these coaching institutions, across the country, are providing such coaching even during office hours i.e. the period during which the students are supposed to undergo practical training. There is a direct conflict created between coaching and training. The backbone of our profession has been practical training of the CA students and the practical exposure during such training pave the way for successful career for Chartered Accountants
• A number of students are opting to give full preference to examination oriented coaching without giving adequate emphasis on their overall development as Business Managers and as world class professionals. At the same time the practical training is being ignored. It is important for the profession of Chartered Accountants to ensure that such wrong direction is not taken by the students community as a whole and necessary checks and balance has to be developed in the system so that this menace can be checked. 

The incoming new generation of CA students is the future of the profession and all of us have to provide them all necessary support psychologically, technically as well as emotionally including a sincere attempt to develop professional ethics,  capability, respect for seniors, devotion to the cause of the profession and development of the economy . It may also be important to develop a keen aggression in the students to learn and deliver during their education and training so that it provide necessary backbone to the practicing CA profession and the requirement. It is possible to address these issues on the basis of a strategic approach and active participation of all concerned. The Institute of Chartered Accountants of India need to consider -

• To impart 3 weeks to 6 weeks special class room session to CPT past students to train them and equip them mentally, psychologically as well as academically to undertake practical training with practicing chartered accountant firms.
• To address the issue of dummy training by providing a mechanism of detailed reporting requirement by article students in respect of actual practical training undertaken through online mechanism on a periodical basis, to be countersigned by the Principal concerned. The students joining CA course must be required to give a periodic affidavit and undertaking that they are diligently carrying out their training effectively. In case of false declaration, a clear cut provision of cancellation of the training period may be prescribed.
• The CPT examination should be strengthened significantly to ensure that the admission in our course is more tough so that, of the students who are actually admitted, a significant majority i.e. 80% - 90% of them should be able to qualify the intermediate examination (PCC) as well as the final examination of the Institute.
• The mandatory coaching for CA intermediate as well as for CA final should be provided by the Institute through its Regional Councils and Branches besides accredited Institutions. A part of this mandatory coaching should be on residential basis to enable development of professional trades and personalities of internationally best level for our profession to march ahead in competition as compared to the best Management Schools in the country and the global market places.
• Private coaching institutions are to be monitored to ensure that they do not impart coaching to students of PCC (intermediate) as well as CA final during the working hours of their training. It may be appropriate to accredit (register) these private coaching institutions so as to enable the Institute to monitor their quality, infrastructure, fee scales as well as delivery timings to the benefit of the profession of Chartered Accountants. These coaching institutions are providing significant contribution currently to the CA students and the Institute’s support will further sharpen their delivery capabilities and will ultimately improve the performance of the CA students. 

Delhi Master Plan – A dilemma of Chartered Accountants
The Master Plan of Delhi 2021 has permitted professionals to operate from residential areas in Delhi subject to a maximum 50% area of dwelling unit / plot being occupied for residential purpose. The occupants are required to pay only a conversion charge (which is nominal) and a substantial one-time charge for parking charges ranging from Rs. 1.5 lakh to Rs. 4.5 lakh depending on the area of their occupation. The last date for this payment was 30th June 2007. The NIRC of the Institute of Chartered Accountants of India, at the behest of the Regional Council Members and Central Council Members filed a Writ Petition before the Hon’ble Delhi High Court challenging this levy. The Hon’ble Delhi High Court has granted a stay till 30th July 2007.

The major issues to be decided in this regard include:

• A clear-cut declaration is required that these charges are not leviable for those who are occupants of the premises for a period before 1962 for commercial / professional purpose.
• The Government is levying hefty parking charges without providing any proper infrastructure for parking. Even a concrete plan is not being promised in this direction.
• Why should there be a last date for payment of such charges? Professional will keep on establishing their profession hereafter also, how can this benefit be denied to those who establish themselves after 30th June, 2007?
• In case a professional pay charges in a locality (A) and later on he shift to locality (B) whether these charges will be again payable.
• In case some other professionals occupy the vacated premises in locality (A) as above, will he be entitled to the benefit of parking charges earlier paid for the same premises by another professional who was occupying the premises earlier.

There are number of grey areas and even it is not fully clear:

• Whether the rest of the building has to be occupied by the Chartered Accountant himself for residential purpose or anybody else could be occupying the same for residential purpose? 
• What will happen if a part of the building is vacant.
• Whether there is some special treatment for Basements being used by professionals
• What is the position if more than one professional occupy a building

This matter is to be pursued with Municipal Corporation, urban development Ministry and with the Hon’ble court to get solution and clarity to the aforesaid issues. We congratulate NIRC and Central Council Members for taking an initiative in this regard, which is to be further, strengthened for the benefit of the professionals. We request the ICAI to also actively support the fight against discrimination with CA community in respect of Service Tax levy. We are committed for active support including protest ! Dharana! Satya Grah!