2
VOLUME NO. XXIII
EDITORIAL ADVISORY BOARD
FEBRUARY 2006
CENTRAL COUNCIL MEMBERS
CHAIRMAN PRESIDENT S. BALASUBRAMANIAN H.M. CHORARIA VICE-PRESIDENT MEMBERS PREETI MALHOTRA (MS.) (In alphabetical order) MEMBERS V. K. AGARWAL (In alphabetical order) DR. GIRISH AHUJA BIPIN S ACHARYA V. K. BHASIN BHASI N NESAR AHMAD G. R. BHATIA MAHESH ANANT ATHAVALE RENU BUDHIRAJA (MS.) RITA DIXIT (MS.) DR. K.N. CHANDRASEKHARAN PILLAI DATLA HANUMANTA RAJU RAKESH CHANDRA S.D. ISRANI (DR.) DELEP GOSWAMI P. P. ZIBIJOSE T. V. NARAY N ARAYANASWAM ANASWAMY Y Y S MALIK PROF. R. S. NIGAM PRADEEP K. MITTAL R. K. PANDEY R. NARAYANAN SAVITHRI PAREKH (MS.) SAVITHRI PAREKH (MS.) DEEPA SRIVASTA SR IVASTAVA VA (MS.) R. RAVI EDITOR & PUBLISHER AMIT KUMAR SEN N. K. JAIN V. SREEDHARAN SREEDHAR AN SECRETARY & CHIEF EXECUTIVE OFFICER N. K. JAIN
Annual Subscription Rs. 50 Single Copy Rs. 5.00 Edited, printed and published by N.K. Jain Jain for the Institute Institute of Company Secretaries of India, 'ICSI House', 22, Institutional Area, Lodi Road, New Delhi - 110003 Phones : 24617321-24, 24644431-32, 41504444 Grams : Compsec Fax : 91-11-24626 91-11-24626727 727 E-mail :
[email protected] Web : http://www.ic http://www.icsi.edu si.edu Printed at Daily Tej Pvt. Ltd. 8-B, Bhadurshah Z. Marg, New Delhi. Phones : 23317911, 23731750, 23314410. The Institute is not in anyway responsible for the result of any action taken on the basis of the advertisements published in this Bulletin.
H I G H L I G H T S
From the President
03
Academic Guidance
05
Legal World
18
Students Services
22
Students Quiz
27
– Prize Winners
28
Schedule of Training Orientation Programmes
30
SMTP Organised by HQ/RCs/Chapters
31
Schedule of Academic Development Programmes
31
News and Announcements
32
Student Company Secretary
1
February 2006
As per Company Secretaries Regulations, 1982 (amended from time-to-time) every student apart from passing the final examination of the Institute is also required to possess the practical experience and undergo practical training or be exempted therefrom before becoming eligible to the Associate Membership of the Institute. Students who do not possess practical experience are required to undergo compulsorily 15 months Management/Apprenticeship training. Most of the students commencing training are not aware of Activities
the significance and methodology of training, business environment, corporate culture, communication and behavioural aspects. Keeping in view the above factors, the Council of the Institute has decided that students requiring to undergo training should compulsorily compulsor ily attend five days’ Training Orientation Programme (TOP) before they are sponsored for training. It has also been decided that henceforth henceforth students will be sponsored for training in the companies or with company secretaries in practice as per the following schedule.
Session–1
Session – 2
Session – 3
Registration of students for 15 months’ Training
January 1 to January 10
March 01 to March 10
June 01 to June 10
September 01 to September 10
Organisation of TOP
January 15 to January 24
March 15 to March 24
June 15 to June 24
September 15 to September 24
Campus Interview
January 25 to January 31
March 25 to March 31
June 25 to June 30
September 25 to September 30
Commencement of Training
February 01 Onwards
April 01 Onwards
July 01 Onwards
October 01 Onwards
April 30* Next Year
June 30* Next Year
September 30* Next Year
December 31* Next Year
Completion of Training
Session - 4
* If the student avails extra leave, the training will be extended accordingly. accordingly.
Training Orientation Programme is a part of the Management/Apprenticeship training and is based on Guru Shishya Parampara. Training Orientation Programme Programme will not only expose the students to the business environment and corporate functioning but would also help them in acquiring the desired skill and confidence. The Regional Councils will organize the Training Orientation Programme from 15th to 24th of the four fixed months i.e. January, March, June & September. For effective interaction and participation, not more than 40 students would be enrolled in each TOP. TOP. A fee of Rs. 400/ - per participant will be charged. The following topics will be included in the programme : 1. Im Impo port rtan ance ce of of Trai Traini ning ng 2. Perso Personali nality ty Devel Developmen opmentt- Dress Code & How How to carry oneself 3. Tim ime e Mana Manage geme ment nt 4. Mea Meanin ning g of Pro Profes fessio sional nals s 5. Of Offi fice ce Cu Cult ltur ure e 6. Co Comm mmun unic icat atio ion n Ski Skillll — Writing ability — Drafting of letters — Speaking ability 7. Group discu discussion ssion,, Drafting Drafting of Minutes, Minutes, Notice Notices, s, Resolutions etc. 8. How to quali qualify fy profes professio sional nal exami examinat nation ion 9. Ma Mana nagi ging ng un unde derr cri crisi sis s
Student Company Secretary
10. Usefulness Usefulness of reading reading newspaper newspapers s 11. Sel Self-a f-asse ssessm ssment ent — SWOT analysis — Career prospects — Personality 12. Writ Writing ing of curricul curriculum um vitae vitae 13. Intervie Interview w Technique echniques s 14. Career Planning 15. Computer-Internet/E-mail 16. File management 17. Organis Organisation ation structure, structure, role and functioning functioning of Competition Commission of India, CLB/NCLT, CLB/NCLT, ROC, Stock Exchange, SEBI, RBI, DRT 18. Usefulness of Professional Professional Development Programmes. 19. Cod Code e of Cond Conduct uct 20. Fut Future ure Prosp Prospect ects s For helping the students to identify Companies or Company Secretaries in practice for undergoing training, the Regional Councils would also arrange Campus Interviews, immediately on conclusion of each TOP for on-the-spot selection of candidates. Such Campus Interviews will be organized during the four fixed months from March 25 to 31; June 25 to 30; September 25 to 30 and January 25 to 31. All students intending to commence Management/ Apprenticeship training are advised to contact the respective Regional Councils for enrolling themselves for TOP. TOP. Only on successful completion of TOP, TOP, students would be sponsored for training by the Institute.
2
February 2006
As per Company Secretaries Regulations, 1982 (amended from time-to-time) every student apart from passing the final examination of the Institute is also required to possess the practical experience and undergo practical training or be exempted therefrom before becoming eligible to the Associate Membership of the Institute. Students who do not possess practical experience are required to undergo compulsorily 15 months Management/Apprenticeship training. Most of the students commencing training are not aware of Activities
the significance and methodology of training, business environment, corporate culture, communication and behavioural aspects. Keeping in view the above factors, the Council of the Institute has decided that students requiring to undergo training should compulsorily compulsor ily attend five days’ Training Orientation Programme (TOP) before they are sponsored for training. It has also been decided that henceforth henceforth students will be sponsored for training in the companies or with company secretaries in practice as per the following schedule.
Session–1
Session – 2
Session – 3
Registration of students for 15 months’ Training
January 1 to January 10
March 01 to March 10
June 01 to June 10
September 01 to September 10
Organisation of TOP
January 15 to January 24
March 15 to March 24
June 15 to June 24
September 15 to September 24
Campus Interview
January 25 to January 31
March 25 to March 31
June 25 to June 30
September 25 to September 30
Commencement of Training
February 01 Onwards
April 01 Onwards
July 01 Onwards
October 01 Onwards
April 30* Next Year
June 30* Next Year
September 30* Next Year
December 31* Next Year
Completion of Training
Session - 4
* If the student avails extra leave, the training will be extended accordingly. accordingly.
Training Orientation Programme is a part of the Management/Apprenticeship training and is based on Guru Shishya Parampara. Training Orientation Programme Programme will not only expose the students to the business environment and corporate functioning but would also help them in acquiring the desired skill and confidence. The Regional Councils will organize the Training Orientation Programme from 15th to 24th of the four fixed months i.e. January, March, June & September. For effective interaction and participation, not more than 40 students would be enrolled in each TOP. TOP. A fee of Rs. 400/ - per participant will be charged. The following topics will be included in the programme : 1. Im Impo port rtan ance ce of of Trai Traini ning ng 2. Perso Personali nality ty Devel Developmen opmentt- Dress Code & How How to carry oneself 3. Tim ime e Mana Manage geme ment nt 4. Mea Meanin ning g of Pro Profes fessio sional nals s 5. Of Offi fice ce Cu Cult ltur ure e 6. Co Comm mmun unic icat atio ion n Ski Skillll — Writing ability — Drafting of letters — Speaking ability 7. Group discu discussion ssion,, Drafting Drafting of Minutes, Minutes, Notice Notices, s, Resolutions etc. 8. How to quali qualify fy profes professio sional nal exami examinat nation ion 9. Ma Mana nagi ging ng un unde derr cri crisi sis s
Student Company Secretary
10. Usefulness Usefulness of reading reading newspaper newspapers s 11. Sel Self-a f-asse ssessm ssment ent — SWOT analysis — Career prospects — Personality 12. Writ Writing ing of curricul curriculum um vitae vitae 13. Intervie Interview w Technique echniques s 14. Career Planning 15. Computer-Internet/E-mail 16. File management 17. Organis Organisation ation structure, structure, role and functioning functioning of Competition Commission of India, CLB/NCLT, CLB/NCLT, ROC, Stock Exchange, SEBI, RBI, DRT 18. Usefulness of Professional Professional Development Programmes. 19. Cod Code e of Cond Conduct uct 20. Fut Future ure Prosp Prospect ects s For helping the students to identify Companies or Company Secretaries in practice for undergoing training, the Regional Councils would also arrange Campus Interviews, immediately on conclusion of each TOP for on-the-spot selection of candidates. Such Campus Interviews will be organized during the four fixed months from March 25 to 31; June 25 to 30; September 25 to 30 and January 25 to 31. All students intending to commence Management/ Apprenticeship training are advised to contact the respective Regional Councils for enrolling themselves for TOP. TOP. Only on successful completion of TOP, TOP, students would be sponsored for training by the Institute.
2
February 2006
Every day you make progress. Every step may be fruitful. Yet there will stretch out before you an ever-lengthening, ever-ascending, ever-improving path. You know you will never get to the end of the journey. But this, so far from discouraging, only adds to the joy and glory of the climb. — Sir Winston Churchill Dear students, I am indeed greatly honoured to be elected as the President of this premier professional body of the country. country. I would like to express my heartfelt thanks for the confidence my colleagues on the Council and all of you have shown in me by electing me to this post. I am very much aware of the responsibility it carries. carries. I accept this honour with a great sense of mission and responsibility and feel extremely happy to address my maiden communication to you. During my tenure, I would like to work with you in a spirit of openness and it will be my endeavour to improve upon the initiatives taken and strengthen all student related activities with the active involvement of Regional Councils/Chapters and with the excellent cooperation of the Secretariat of the Institute whose dependable support has always been a cornerstone of our work. Your continued trust and support will be my most important asset. Company Secretaries in the dynamic global competitive environment have to shoulder greater responsibilities to stay competitive and aim for excellence in their professional professional career. career. Company Secretaries have the capability capability to perform beyond Company Law has been recognized almost by all the sectors. This requires working relentlessly to expand horizons of your knowledge so as to have an in-depth perception of major management functions as well as understand the needs of industry. Industry requires professionals professionals who have vision and capability to lead the organization efficiently. It is therefore, imperative that Company Secretaries keep themselves fu lly prepared in terms of competence and knowledge to meet the challenges that lie ahead in terms of quality of service and professional excellence. To explore more employment opportunities and new areas of practice, it will be my endeavour to impress upon Government, Regulatory Authorities and Chambers of Commerce to recognise the competence and expertise of Company Secretaries as independent corporate professional who can provide advice and objectivity not only in the decision making process of the corporate boards, but also management, administration and governance of companies. Besides, it is equally important to acquire important soft skills which a professional must possess to achieve success in his professional career. Some of these important soft skills are communication skills, computational skills and IT skills, presentation skills: motivational skills, interactive skills, interview skills reading and writing skills. From the Institute’s side efforts are already on to include training programmes for students to enable them to acquire these life skills. Whenever and wherever opportunity arises, I advise you to take benefit of such programmes in order to make your professional lives successful. Mostly professional organizations whether at its inception or afterwards adopt a mission to be pursued to achieve professional excellence. The product of an organization reflects the values it practises and the vision with which it pursues its mission. An early completion of the revision of the syllabus syllabus and remodelling of the training requirements requirements shall therefore be of utmost importance importance in my priority list. The contents of the syllabus and training training should be formulated in such a manner that reflect the needs of the developing corporate paradigm. Similarly, implementation of E-learning project and preparation of interactive CD Rom on important subjects by experts for students would be on priority of my agenda.
Student Company Secretary
3
February 2006
Friends, self development is the best development as we are the architects of our destiny. The statement gains more relevance when applied to the student community as it is in their hands to shape their destiny particularly in the rapidly changing global business environment. Therefore, right from the joining the CS Course, you have to prepare yourselves to adapt to the changing environment and develop the vision to face the challenges of the change boldly. Moreover, during my tenure it will be my endeavour to pursue vigorously the agenda for creating awareness about the Company Secretaryship course course in much more effective ways with more vigor and zeal. It would require concerted efforts on the part of all of us to be able to attract greater number of students. The Institute has various Chapters and Satellite Chapters spread all over the country to serve the students and members besides enhancing the visibility of the profession and create desired awareness about the Company Secretaryship course in their adjoining areas. To To achieve better results, results, they require require better infrastructure infrastructure facilities. My efforts would continue, towards strengthening the infrastructure and communications facilities upto Satellite Chapter level, so as to ensure that they are able to provide single window services services to our students and members. I wish all our extended arms, i.e., Regional Councils, Chapters and Satellite Chapters to act, as Customer Care Centres, providing value added efficient services. I am pleased to inform you that CCRT of the Institute is organizing its 15 th Residential Secretarial Modular Training Programme at ICSI- CCRT, Navi Mumbai commencing from 18 th March, 2006 to 2 nd April, 2006. Registration will be on first-come-first–served basis. The 15 th Residential SMTP has been planned with special emphasis on Management Subjects and time-tested and well appreciated methodologies on imparting training. Attending Residential SMTP at CCRT will be an experience by itself for you as it provides all the facilities enabling students to interact with the expert faculty,, senior academics and corporate leaders. faculty On this note, I would like to conclude by stating that to achieve excellence in your professional career you have to work with determination, determination , perseverance and vision. Face the challenges bold ly and be a winner in this global race of competition. Friends, I am conscious of the fact that you must be eagerly waiting for the results that will be declared by the Institute on 25 th February 2006 at 4.00 p.m all over India. I wish all those who appeared in the December 2005 examinations the best of luck. With best wishes, Yours sincerely,
(H M Choraria)
[email protected]
Kolkata February 14, 2006
Student Company Secretary
4
February 2006
A CADEMIC GUIDANCE State Industrial Relation Machinery ensures its enforcement. The position of enforcement of Minimum Wages Act, 1948 in different States/UTs during 2003-04 is shown in Table-5.2. The Government has initiated the process of examining certain amendments to the Minimum Wages Act, 1948 with a view to make the provisions more worker friendly.
HUMAN RESOURCES MANAGEMENT & INDUSTRIAL RELA TIONS RELATIONS
The Payment of Wages Act, 1936 was enacted to regulate payment of wages to workers employed in Industries and to ensure a speedy and effective remedy to them against illegal deductions and/ or unjustified delay caused in paying wages to them. The Act ensures that no deductions, which are unauthorized, shall be made from the wages of the employees. The specific day for paying the wages is 7th day of the month in case of industries employing less than 1000 workers.
W AGES* A brief write up on wages has been given herein below for the information of the students covering the Minimum Wages Act, Payment of Wages Act and the Payment of Bonus Act. Statistical information on statewise range of mimimum wages as well as enforcement of Minimum Wages Act, 1948 in different States/Union Territories has also been given. Generally statistical information is not easily available. Students will definitely find the information useful.
The existing wage ceiling of Rs.1600/- p.m. was fixed way back in 1982 and depreciation of money since then has resulted in narrowing down of its applicability. Keeping this end in view, a Bill named “The Payment of Wages (Amendment) Bill, 2004” to enhance the wage ceiling upto Rs.6500/- as well as to improve upon certain other features, was introduced in the Rajya Sabha on 16th May, 2002. The Bill was there from referred to the Standing Committee on Labour & Welfare. The Standing Committee has inter-alia recommended for periodic revision of the wage ceiling by way of notification instead of the legislation method. The Ministry has decided in consultation with the Ministry of Law & Justice to accept most of the recommendations of the Standing Committee on Labour & Welfare and accordingly an official amendment to the Bill namely The Payment of Wages (Amendment) Bill 2004 was considered and passed by Rajya Sabha on 02.12.2004. The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 provides for regulation of conditions of service of working journalists, non-journalists newspaper and news-agency employees. Section 9 and 13 of the Act, inter-alia, provide for constitution of two Wage Boards for fixing or revising rates of wages in respect of working journalists and non-journalist newspaper and news-agency employees respectively. According to the Act, a Wage Board shall consist of the following: 1. Two persons representing employers in relation to newspaper establishments; 2. Two persons representing Working Journalists/non-journalists and 3. Three independent persons, one of whom shall be a person who is, or has been a judge of High Court or the Supreme Court and who shall be appointed by the Government as the Chairman of the Wage Boards. The Act does not lay down the periodicity for constituting the Wage Board. The Government, in September 1994 constituted two Wage Boards - one for the working journalists and the other for the non jour nali sts news pape r and news agen cy emp loye es und er the common Chairmanship of Justice Rajkumar Manisana Singh. The Wage Boards submitted their final recommendations to the Government on 25.07.2000. The Government accepted these recommendations with some minor modifications and decisions of the Government were notified in the Gazette of India (Extraordinary) on 05.12.2000 and 15.12.2000 respectively. However, the recommendations are required to be implemented by the State Governments under the provisions of the Act. All States and Union Territories have been asked to take following steps for implementing the recommendations of the Wage Boards:
As of now there is no uniform and comprehensive wage policy for all sectors of the economy in India. Wages in the organized sector are determined through negotiations and settlements between employer and employees. In unorganized sector, where labour is vulnerable to exploitation due to illiteracy and having no effective bargaining power, minimum rates of wages are fixed both by Central and State Governments in the scheduled employments falling within their respective jurisdictions under the provisions of the Minimum Wages Act, 1948. The Act binds the employers to pay to the workers the minimum wages so fixed from time to time. On the recommendation of the 8th Standing Labour Committee, the Minimum Wages Bill was introduced in the Central Legislative Assembly on 11.04.1946 to provide for fixation of minimum wages in certain employments. The Minimum Wages Bill was passed by the Indian Dominion Legislature and came into force on 15th March 1948. Under the Act both State and Central Government are “Appropriate Governments” for fixation/ revision of minimum rates of wages for employments covered by the Schedule to the Act. The minimum rate of wages also include Special Allowance i.e. Variable Dearness Allowance (VDA) linked to Consumer Price Index Number, which is revised twice a year effective from April and October. The Central Government and Twenty-five States/UTs have adopted VDA as a component of minimum wage. The 28th Indian Labour Conference in 1985 recommended a national basic subsistence level wage below which no wages may be fixed regardless of the nature of work, nature of employment and other considerations. In the absence of uniformity in minimum wages the Central Government adopted the concept of national floor level minimum wage and fixed it at Rs.35/- per day in 1996, based on the recommendation of the National Commission on Labour in 1991 and subsequent increase in the price level. The Central Government raised the national floor level minimum wage to Rs.40/- per day in 1998 and further to Rs.45/- w.e.f. 01.12.1999 and Rs.50/- per day w.e.f. 01.09.2002 keeping in view the rise in consumer price index. The national minimum wage has last been revised upwards to Rs.66/- per day with effect from 01.02.2004 on the basis of the recommendations of Central Advisory Board. The range of wages for the unskilled workers as fixed/revised in respect of employments covered under Central and State sphere are at Table 5.1. Minimum Wages under Central sphere are enforced through Central Industrial Relations Machinery (CIRM). Under the States, the * Compiled by Archana Kaul, Education Officer, The ICSI.
Student Company Secretary
5
February 2006
A CADEMIC GUIDANCE (i)
Creation of special cells in the state/Union Territories to oversee the progress of the implementation of awards. (ii) Constitution of a Tripartite Monitoring Committee to monitor the progress of implementation. (iii) Gearing up of the State Labour Enforcement Machinery for speedy implementation of the recommendations. (iv) Submission of quarterly progress reports to the Ministry on implementation of the recommendations commencing from the quarter ending 31.03.2001. A Central Level Monitoring Committee has also been constituted under the Chairmanship of Labour & Employment Adviser for reviewing the implementation of the recommendations. Other members of the Committee are Joint Secretary of Ministry of Information and Broadcasting, Chief Labour Commissioner (Central) and Director-incharge of Wage Board Section in the Mi nistry as the Member Secreta ry. Four meetings of the Committee were held on 08.03.2002, 13.11.2002, 06.06.2003 and 28.01.2004 wherein it was decided that Chief Labour Commissioner (Central) through his Regional Labour Commissioners (Central) would liaise with State Governments with regard to effective implementation of the awards, following which there has been overall improvement in performance. It has also been decided that Central Monitoring Committee should visit various States where the implementation of the award is not satisfactory. The first round of visit scheduled for Assam and West Bengal was made during 10-12th July 2003 to review the implementation of the Award. In pursuance of the Directions of the Central Government, so far information about 1211 Newspaper Establishments have been received from the State Governments/Union Territories. Out of 1211 Newspaper Establishments, only 333 (27.5%) have fully and 101 (8.34%) have partially implemented the Award. 777 Newspaper Establishments (64.2%) have not yet implemented the recommendations of the Manisana Wage Board. Out of 35 States/ Union Territories, only 19 States/Union Territories are sending quart erly progress report regularly. 10 States /Union Territories are not at all furnishing the quarterly progress re[port even after repeated reminders. The recommendations of the wage Board are not applicable to 7 States/Union Territories because either there is no newspaper establishment or the Newspaper establishments are very small. 18 States/ Union Territories have formed Tripartite Committees to oversee the implementation of the recommendations.
consultation with other concerned Departments/Ministries. Table- 5.1
Centre/States/ UTs.
(1)
(2)
1.
No. of Scheduled Employments
Lowest and Highest rates of minimum wages per day (in Rupees)
(3)
(4)
(5)
(i) Agriculture (ii) Stone Mines for stone breaking and stone crushing
1
94.04
104.89
1
76.12
192.11
(iii) Construction &
40
58.96
71.12
(iv) Loading/ Unloading & Ash Pit cleaning in Railways
2
56.71
81.70
(v) Security Service
1
Centre Sphere
Mining
The Payment of Bonus Act, 1965 provides for payment of bonus to employees. According to the Act, “employee” means any person (other than an apprentice) emp loyed on a salary or wage not exceeding Rs.3500 per mensem in any industry to do any skilled or unskilled, manual, supervisory, managerial, administrative, technical or clerical work for hire or reward. However, according to Section 12 of the Act, the bonus payable to employees whose salary or wage exceeds Rs.2500 per mensem, has to be calculated as if his salary or wage were Rs.2500 per mensem. The above wage ceilings under Section 2(13) and Section 12 of the Act respectively were last revised vide Payment of Bonus (Amendment) Ordinance, 1995 promulgated on 09.07 1995 and made effective from 01.04.1993. The proposal regarding amendment to the Payment of Bonus Act, 1965 to enhance eligibility limit from Rs.3500/- to Rs.5000/- and calculation ceiling from Rs.2500/- to Rs.3500/- had been under consideration of the Government. Meanwhile, the Second National Commission on Labour (NCL) has submitted its report recommending enhancement in the ceilings for reckoning entitlement and for calculation of bonus to Rs.7500/- and Rs.3500/- respectively. As per Second National Commission on Labour recommendations, a proposal for amendment in Payment of Bonus Act, 1965 so as to raise the eligibility ceiling from Rs.3500/- to Rs.7500/- p.m. and the calculation ceiling from Rs.2500/- p.m. to Rs.3500/- p.m. is under consideration in
Student Company Secretary
Sl. No.
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jharkhand Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim
25 26 27 28 29 30
Tamil Nadu Tripura Uttar Pradesh Uttaranchal West Bengal Andaman & Nicobar Islands Chandigarh Dadra & Nagar Haveli Daman & Diu Delhi Lakshadweep Pondicherry
31 32 33 34 35 36
6
70.00 70.00 (Draft (Draft Notification) Notification) 65 45.00 110.00 25 39.87 42.11 67 50.00 63.00 74 45.18 64.62 36 52.87 79.13 20 60.00 94.00 52 50.00 99.20 47 87.29 88.29 24 65.00 65.00 61 64.73 64.73 18 45.00 45.00 72 56.30 97.07 40 67.14 169.04 36 54.56 82.58 67 45.00 169.04 15 66.00 66.00 24 70.00 70.00 3 84.00 84.00 37 50.00 50.00 83 52.50 52.50 60 82.65 82.65 61 73.00 74.00 The Minimum Wages Act has been extended to Sikkim w.e.f. 01.10.2004. 65 52.15 125.20 12 50.00 53.00 65 58.00 105.07 62 58.00 106.31 55 62.42 203.86 6 100.00 124.42 44 43 71 29 3 5
100.00 84.00 50.00 110.10 52.00 45.00
100.00 84.00 60.00 110.10 52.00 65.00
February 2006
A CADEMIC GUIDANCE Table-5.2
Sl No.
Name of the State/UTs
(1)
(2)
1.
Andhra Pradesh
2.
Assam
3.
Bihar
4.
Goa
5.
No. of No. of inspections irregularities made detected
No. of irregularities rectified
No. of Claims filed
No. of Claims settled
No. of Amount of fine Person Realised Prosecuted in rupees
(3)
(4)
(5)
(6)
(7)
(8)
(9)
52204
506
404
19820
15293
1185
134573
2831
584
416
14
13
-
600
297439
55996
55491
24590
2057
54
4800
1038
3202
140
9
15
36
29900
Gujarat
60299
52769
29552
1878
477
522
698375
6.
Haryana
5212
-
-
2928
193
829
4136805
7.
Jammu & Kashmir
931
221
81
-
-
146
13600
8.
Maharashtra
39585
52001
22475
33
116
94
119735
9.
Manipur
118
31
9
-
-
-
-
10.
Meghalaya
633
-
-
-
-
-
-
11.
Orissa
29798
23535
12212
57
2
214
12750
12.
Rajasthan
7681
266
113
293
239
251
80990
13.
Sikkim
14.
Uttaranchal
15.
West Bengal
16.
A & N Islands
17.
The Minimum Wages Act has been extended to Sikkim w.e.f.1.10.2004. 3322
1045
388
223
177
334
26960
28478
6710
6340
215
2
1
64250
234
1170
1124
24
21
3
7500
Chandigarh
62
23
23
38
33
11
7500
18.
Dadra & Nagar Haveli
71
28
28
1
-
04
-
19.
Daman & Diu
295
-
-
-
-
-
-
20.
Pondicherry
8589
-
-
-
-
—
-
Note:-
1.
The information has not been received from the States of Chhattisgarh, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Nagaland, Punjab, Tamil Nadu, Tripura, Uttar Pradesh, Delhi. 2. Information received from Arunachal Pradesh, Mizoram, Lakshadweep is stated to be Nil. Source: Annual Report of Ministry of Labour 2004-2005 In this regard, Registrars to the Issue are required to ensure that for refund through any mode of electronic transfer of funds, the relevant electronic data file is transferred to the Clearing System within the time period specified in the Guidelines and obtain necessary confirmation for records. They are also required to simultaneously send individual intimation to the applicants giving details of the bank where refunds shall be credited alongwith the amount and expected date of electronic credit of refunds. Suitable instructions regarding various modes of despatch of refund orders are also required to be incorporated in the application form, abridged prospectus and the prospectus/letter of offer in consultation with the Lead Manager/s.
STUDY UPDATES1
SEBI, vide its circular no SEBI/CFD/DIL/DIP/18/2006/20/1 dated January 20, 2006 has amended SEBI (DIP) Guidelines, 2000 to provide for various modes of making refunds to the applicants viz ECS (Electronic Clearing Service)/ Direct Credit/ RTGS (Real Time Gross Settlement)/ NEFT (National Electronic Funds Transfer) . The applicants residing in 15 centres where clearing houses are managed by the Reserve Bank of India (RBI), will get refunds through ECS only except where applicant is otherwise disclosed as eligible to get refunds through direct credit & RTGS.
The Prevention of Money Laundering Act, 2002 (PMLA) has been brought into force with effect from 1 st July 2005. Necessary Notifications / Rules under the said Act have been published in the Gazette of India on 1st July 2005 by the Department of Revenue, Ministry of Finance, Government of India.
1. Prepared by Sonia Baijal, Asst. Director, The ICSI.
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A CADEMIC GUIDANCE IPO grading is positioned as a service that provides ‘an independent assessment of fundamentals’ to aid comparative assessment that would prove useful as an information and investment tool for investors. Moreover, such a service would be particularly useful for assessing the offerings of companies accessing the equity markets for the first time where there is no track record of their market performance.
As per the provisions of the Act, every banking company, financial institution (which includes chit fund company, a co-operative bank, a housing finance institution and a non-banking financial company) and intermediary (which includes a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary associated with securities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992) shall have to maintain a record of all the transactions; the nature and value of which has been prescribed in the Rules notified under the PMLA. Such transactions include:
All cash transactions of the value of more than Rs 10 lakhs or its equivalent in foreign currency.
All series of cash transactions integrally connected to each other which have been valued below Rs 10 lakhs or its equivalent in foreign currency where such series of transactions take place within one calendar month.
4. How will IPO grading meet this requirement? As mentioned above, the IPO grade assigned to any issue represents a relative assessment of the ‘fundamentals’ of that issue in relation to the universe of other listed equity securities in India. This grading can be used by the investor as tool to make investment decision. The IPO grading will help the investor better appreciate the meaning of the disclosures in the issue documents to the extent that they affect the issue’s fundamentals. Thus, IPO grading is an additional investor information and investment guidance tool.
5. Who will carry out the IPO grading ?
All suspicious transactions whether or not made in cash. SEBI has laid down the minimum requirements / disclosures to be made in respect of clients. The intermediaries are required to specify additional disclosures to be made by clients to address concerns of Money Laundering and suspicious transactions undertaken by clients, according to their requirements.
Credit Rating agencies (CRAs) registered with SEBI will carry out IPO grading.
6. Does SEBI have a role in the grading exercise? No. SEBI does not play any role in the assessment made by the grading agency. The grading is intended to be an independent and unbiased opinion of that agency.
All intermediaries are advised to ensure that a proper policy framework as per the Guidelines on anti-money laundering measures is put into place within one month from the date of the circular. The intermediaries are also reqired to designate an officer as ‘Principal Officer’ who would be responsible for ensuring compliance of the provisions of the PMLA.
7. Is this IPO grading mandatory? No. IPO grading is optional.
8. How would the grading be indicated? It is intended that IPO fundamentals would be graded on a five point scale from grade 5 (indicating strong fundamentals) to grade 1 (indicating poor fundamentals). The grade would be read as:” Rating Agency name “ IPO Grade 1 viz CARE IPO Grade 1, CRISIL IPO Grade 1 etc.
1. What is ‘IPO grading’? IPO grading (initial public offering grading) is a service aimed at facilitating the assessment of equity issues offered to public. The grade assigned to any individual issue represents a relative assessment of the ‘fundamentals’ of that issue in relation to the universe of other listed equity securities in India. Such grading is assigned on a five-point point scale with a higher score indicating stronger fundamentals.
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9. For how long would the assigned grade be valid? The assigned grade would be a one time assessment done at the time of the IPO and meant to aid investors who are interested in investing in the IPO. The grade will not have any ongoing validity.
10. How can a company get its IPO graded? The company needs to first contact one of the grading agencies and mandate it for the grading exercise. The agency would then follow the process outlined below. Seek information required for the grading from the company. On receipt of required information, have discussions with the company’s management and visit the company’s operating locations, if required. Prepare an analytical assessment report Present the analysis to a committee comprising senior executives of the concerned grading agency. This committee would discuss all relevant issues and assign a grade Communicate the grade to the company along with an assessment report outlining the rationale for the grade assigned. Though this process will ideally require 2-3 weeks for completion, it may be a good idea for companies to initiate the grading process about 6-8 weeks before the targeted IPO date to provide sufficient time for any contingencies. The contact details of the grading agencies are as under: 1. The Credit Rating Information Services of India Ltd. (CRISIL) CRISIL House, 121-122, Andheri-Kurla Road, Andheri(E) Mumbai – 400 093 Tel : + 91 (22) 6913001 – 09, Fax : + 91 (22) 6913010 Email:
[email protected]
How is IPO grading different from an investment recommendation?
Investment recommendations are expressed as ‘buy’, ‘hold’ or ‘sell’ and are based on a security specific comparison of its assessed ‘fundamentals factors’ (business prospects, financial position etc.) and ‘market factors’ (liquidity, demand supply etc.) to its price. On the other hand, IPO grading is expressed on a five-point scale and is a relative comparison of the assessed fundamentals of the graded issue to other listed equity securities in India. As the IPO grading does not take cognizance of the price of the security, it is not an investment recommendation. Rather, it is one of the inputs to the investor to aiding in the decision making process. All other things remaining equal, a security with stronger fundamentals would command a higher market price.
3. What is the requirement for IPO grading? SEBI has been taking a pioneering role in investor protection by increasing disclosure levels by entities seeking to access equity markets for funding. This has caused India to be amongst one of the more transparent and efficient capital markets in the world. However, these disclosures demand fairly high levels of analytical sophistication of the reader in order to effectively achieve the goal of information dissemination. 2. Downloaded from SEBI website (www.sebi.gov.in)
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Fitch Ratings India Private Ltd. 15th Floor, Nirmal, Nariman Point,Mumbai 400 021. Tel : + 91 (022) 56370920-23, Fax : + 91 (022) 56370924 ICRA Ltd. Kailash Building, 4th Floor, 26, Kasturba Gandhi Marg, New Delhi 110001. Tel : + 91 (11) 3357940 – 50, Fax : + 91 (11) 3357014 Email:
[email protected] Credit Analysis & Research Ltd. (CARE) Godrej Coliseum, 4th Floor, Somaiya Hospital Road, Eastern Express Highway, Sion (E), Mumbai 400 022 Tel : + 91 (22) 55543456, Fax : + 91 (22) 55543457 Email:
[email protected]
Question 3 The articles of the company PQR Ltd. provide for the appointment of an alternate director. X, a director of PQR Ltd. while proceeding on a long foreign tour, appointed Y as his alternate to act for him during his absence. Whether the appointment of Y by X is valid? Answer In term of Section 312, no director shall assign his office to any other person. If he does, the assignment shall be void. As per section 313, the Board is empowered to appoint an alternate director in place of a director who is absent for a period of 3 months or more from the State in which the Board meetings are ordinarily held. Board can appoint an alternate director only if it is authorized by the articles or by a resolution passed at a general meeting. The appointment of Y as an alternate director by X would amount to assignment of office which is prohibited by section 312 and therefore the appointment of Y as an alternate director is void. Further, as an alternate director is appointed by the Board of directors and not by the director in whose place he is appointed (i.e., the original director), the Board can appoint ‘Y’ or any other person as an alternate to X.
10. Does the company have to accept the grade assigned? CRAs have to forward the names and details of IPOs graded by them on monthly basis to SEBI/ Stock Exchanges for uploading on their website for public information. As such the company which has opted for IPO grading, does not have a choice in accepting or rejecting the grade. The IPO grading given by CRAs, shall form part of the prospectus for the IPO.
11. What can the company do if it is not satisfied with the grade assigned by the grading agency?
Question 4
The company has no choice in this regard. If it has opted for IPO grading, the same needs to be disclosed in the Prospectus.
What is meant by small shareholders’ director?
12. Who would pay for the grading exercise?
Since directors are elected by majority shareholders, small shareholders do not get any representation on Board and their interests are often neglected. To avoid this lacuna, a provision has been inserted for electing a director by small shareholders. Section 252 of the Companies Act, 1956 provides that a public company having : (a) a paid-up capital of five crores or more (b) one thousand or more shareholders, may have a director elected by small shareholders in the manner prescribed. “Small shareholders” shall mean a shareholder holding shares of nominal value of twenty thousand rupees or less in the aforesaid public company.
Answer
The cost of grading IPOs shall be borne from investor protection funds administered by Stock Exchanges or from IEPF administered by Ministry of Companies Affairs.
F AQ s ON COMP ANY LA W AQs LAW DIRECTORS DIRECTORS Question 1 How is the appointment of first directors made? Answer The Articles of Association of a company may name the individuals who will be the first directors of the company. If articles of association do not name the first directors, then subscribers to memorandum of association, who are individuals, will be deemed to be the first directors by virtue of Section 254 of the Companies Act, 1956. Section 254 states that in default of and subject to any regulations in the Articles of a Company, subscribers of the memorandum who are individuals shall be deemed to be the directors of the company, until the directors are duly appointed in accordance with the provisions of Section 255.
Question 5 Can a director appoint a proxy to attend a Board Meeting? Answer A director cannot appoint a proxy to attend a Board Meeting as proxies are not allowed at Board Meetings. Accordingly, no director is authorized to send his representative to attend and vote for him at Board Meetings. However, in accordance with the terms of Loan Agreements with Financial Institutions, the Institutions may reserve the right to send their representative when their Nominee Director is unable to attend Board Meetings.
Question 2 Who is an alternate director? Answer
Question 6
An alternate director simply means a director appointed by the Board of Directors of a company to act for a regular director during his absence for a period of not less than three months from the State in which meetings of the Board are ordinarily held. [Section 313] . ‘State’ means a State in which Board Meetings are ordinarily held and not necessarily the State where the registered office of the company is situate. Absence from the State where the registered office is situate will not, unless it is also the State wher e Board Meetings are ordinarily held, enable the appointment of an alternate director. ‘Period of not less than three months’ indicate a “continuous” period. Hence, there should not be any break in the absence of the original director from the State in which meetings of the board of directors of the company are ordinarily held, if provisions of Section 313 are to be brought into play.
Student Company Secretary
What will be the consequences if a person acts as a director without obtaining qualification shares? Answer The Companies Act, 1956 does not prescribe any academic or professional qualification for directors. Also, the Act imposes no share qualification on the directors. So, unless the company’s Articles contain a provision to that effect, a director need not be a shareholder unless he wishes to be one voluntarily. But the Articles usually provide for a minimum share qualification. If a director fails to obtain his qualification shares as required by the Articles of the company, within 2 months, he vacates office automatically on the expiry of 2 months from the date of his
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A CADEMIC GUIDANCE appointment (Section 283). If he acts as director after the expiry of said two months without taking qualification shares, he shall be liable to fine upto Rs.500 for every day between such expiry of two months and the last day on which he acted as a director (Section 272). Question 7
A company incorporated in 2000 had a provision in its Articles that a director should hold 200 shares of the value of Rs.10 each as qualification shares. At an AGM in 2003, an ordinary resolution was passed increasing the share qualification to 600 shares. The company then issued notice to the directors who did not hold 600 shares to acquire additional shares within one month. M, a director, who was asked to acquire additional qualification shares, received the notice. Advice. Answer The alteration in the articles is invalid because : (a) Special resolution required to alter the articles is not passed. (b) It violates the provisions of Section 270 of the Companies Act, 1956. Sub-section (2) of Section 270 provides that any provision in the articles of the company shall be void in so far as it requires a person to obtain qualification shares within a shorter time than two months after his appointment as such. Section 270(3) provides that the nominal value of these shares must not exceed Rs.5000 or nominal value of one share where it exceeds Rs.5000. Any provision requiring a director to hold as qualification shares more than the said amount is invalid. Hence, M need not purchase additional qualification shares. Question 8 P was a director of XYZ Ltd. The shareholders of the company by altering its Articles of Association made compulsory qualification for directors to be at least graduate with immediate effect. P who was not graduate was asked to quit. Advise P. Answer The Companies Act, 1956 does not lay down any specific academic qualification for appointment as a company director. Section 274 specifies the circumstances in which a person cannot be appointed as a director of a company, which does not include any educational qualification. Compulsory qualification fixed by the company in its Articles is violative of Section 274. Unlike a private company, a public company cannot provide for additional disqualifications as laid down in sub-section (3) of Section 273 and hence P need not quit. Question 9 Should a director who has attained the age of 65 years cease to serve on the Board of the Company? Answer No age limit for Directors has been laid down in the Companies Act, 1956 except the limit of 70 years for a Managing/whole-time Director specified in Schedule XIII. However, Company Boards are at liberty to fix an age limit for their Executive as well as Non-Executive Directors. Question 10 One of the directors has not attended any of the last four Board meetings. Does it amount to vacation of office? Answer Section 283(1)(g) of the Companies Act, 1956 provides that a director shall vacate his office in case he absents himself from three consecutives meetings of the Board of directors or from all meetings of the Board for a continuous period of three months, whichever is longer, without obtaining leave of absence from the Board.
Student Company Secretary
Accordingly, the Director shall not vacate office, if: three months have not elapsed (i.e. last 4 Board meetings were held within a period of three months); or (ii) the director has obtained leave of absence from the Board. Thus, the Board should check whether any of the above conditions has been complied with or not. If not, the director is liable to vacate his office. Question 11 (i)
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P, a director in a PSU is a nominee director of State Government. Whether any general notice is required to be given by him regarding companies in which he is interested? Answer The nominee directors appointed by the Government stand on the same footing as other directors of the company. The duties, responsibilities and obligations of all the directors are uniformly controlled by the provisions of the Companies Act, 1956 and the articles of association the company. As per Section 299, every director who is in anyway, directly or indirectly, interested in a contract or arrangement shall disclose the nature of his interest. The provisions of Section 299 also apply to a director nominated by the Government [Department Letter No.8/299/ 63-PR, dated 20.9.1963]. Therefore, directors nominated by the State Government or by the Central Government under Section 408 are required to disclose the nature of their interest in any contract or arrangement in accordance with the provisions of Section 299. Question 12 ‘X’ was appointed as a Managing Director for life by the Articles of Association of a private company incorporated on 1 st June 2003. The articles empowered ‘X’ to appoint a successor. ‘X’ appointed by will ‘G’ to succeed him after his death. Can ‘G’ be Managing Director after the death of ‘X’? Answer Section 312 prohibits assignment of his office by a director and such assignment shall be void. However, in case of private companies, the appointment of successor does not amount to assignment of office. The Supreme Court in Oriental Metal Pressing Works Pvt. Ltd. v. Bhaskar Kashinath Thakur (1961), 31, Com Cases 143 held that where in the case of a private company a managing director who was holding his office for life and was empowered by the Articles to appoint a successor, appointed by will ‘G’ to succeed him as managing director after his death, the “appointment” of the successor i.e. ‘G’ will not come within the prohibition of Section 312. Question 13 Whether appointment of additional directors can be made where such appointment makes the number of non-rotational directors more than one-third of total strength of directors? Answer Section 260 provides that nothing in Sections 255, 258 or 259 shall affect any power conferred in the Board of Director by the articles to appoint additional directors. Accordingly, the Board may appoint additional directors even though the inclusion of such additional directors in the category of non-rotational directors will make the number of non-rotational directors more than one-third of the total number of directors. The condition is that the maximum strength fixed for the Board by the articles shall not be exceeded. Question 14 Which directorships are excluded from calculation of total number of directorships which can be held by a person? Answer Section 278 of the Companies Act, 1956 lays down that
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A CADEMIC GUIDANCE directorships in the following companies shall be excluded for the purpose of calculation of the permissible maximum limit: (a) a private company which is neither a subsidiary nor a holding company of a public company; (b) an unlimited company; (c) an association not carrying on business for profit or which prohibits the payment of a dividend; (d) a company in which a person is only an alternate director.
Question 15 Can D who is a director in 14 public limited companies accept directorships of : (i) ABC Pvt. Ltd., which is the holding company of a public limited company; and (ii) RM company which is an unlimited company. Answer (i)
Directorship of D in ABC Pvt. Ltd. will be counted within the limit of 15 companies prescribed under Section 275 of the Companies Act, 1956. Section 278 excludes a private company which is not a subsidiary or holding company of a public company while calculating the directorships. Since, it is a holding company of a public limited company, it will be counted within the limit. (ii) RM Company is an unlimited company which is excluded under Section 278. Therefore, it shall not be included in the limit of 15 companies and hence D can accept the directorship in RM Ltd. also.
Question 16 What is sitting fee and how much of it should be payable? Answer Sitting fee is payable to a director for each meeting of the Board of Directors or a committee thereof. Rule 10B of the Companies (Central Government’s) General Rules and Forms, 1956 provides that for the purpose of the proviso to Section 309(2), the amount of remuneration by way of fee for each meeting of the Board of Directors or a committee thereof, shall be as under: (a) Companies with a paid-up Sitting fees not to exceed the sum share capital and free of twenty thousand rupees. reserves of Rs.10 crore and above or turnover of Rs.50 crore and above. (b) Other companies Sitting fees not to exceed the sum of ten thousand rupees.
Question 17 Mr. X, the Managing Director sends his notice of resignation. Discuss the validity and its effect. Answer The resignation of a director takes effect immediately without any need for its acceptance where the articles do not contain any provision relating to resignation of directors or where the articles allow the directors to resign at any time. However, a managing director cannot resign by merely sending his resignation. His resignation becomes effective only when the company accepts the resignation and relieves him from the office. This is because he occupies two positions viz. one that of a director and other that of an employee of the company. An employee cannot resign at his pleasure by giving notice. Instead, his resignation is required to be approved and accepted by the company to relieve him from his duties and responsibilities. [Achutha Pai v. ROC (1966) 36 Comp. Cas. 598] Mr. X, the Managing Director therefore, cannot resign merely by giving notice.
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Question 18 X, who was appointed as a Director at the last annual general meeting resigned. The Board filled up the casual vacancy by appointing Y. But within a few days of his becoming Director, Y died. Can the Board fill up the casual vacancy by appointing Z in place of Y in the next Board meeting? Answer Section 262 of the Companies Act, 1956 provides that in the case of a public company or a private company which is a subsidiary of a public company, if the office of any director appointed by the company in general meeting is vacated before the expiry of his term of office in the normal course, the resulting casual vacancy may, subject to any regulations in the Articles of the company, be filled by the Board of directors at a meeting of the Board. The Board of directors is empowered to fill a casual vacancy only in respect of a director appointed by the company in general meeting. If a casual vacancy arises in the office of a director appointed in the casual vacancy under Section 262, there is no casual vacancy within the meaning of Section 262 and cannot be filled up by the Board of directors. Consequently, Board cannot appoint Z in place of Y. Z may, however, be appointed as an additional director. Question 19
A, one of the shareholders of a company, filed a civil suit in a Court for removal of directors B, C & E. Is the suit maintainable? Answer A civil court has no jurisdiction to entertain a suit for removal of a director since the matter relates to the internal management of the company which is governed by the Companies Act, 1956. [ Khetan Industries Pvt.Ltd. v. Manju Ravindra Prasad Khetan (1995) 16 CLA 169 (Bom)]. Section 284 has given to the shareholders necessary powers to remove a director and thus a civil court has no jurisdiction to entertain a suit for removal of a director. Refer Question No.5 of ‘FAQ’s on Directors’ in November 2005, page 10 issue of Student Company Secretary Bulletin. As the question is silent on the provision contained in the Articles of Association of the company regarding the retirement of directors of the company. Therefore the answer to the said question is reframed as below:
Question 20 Total strength of the Board of Directors of your company is ten. How many directors are liable to retire by rotation at the next annual general meeting? Answer As per section 255(1) of the Companies Act, 1956, if the Articles provide for retirement of all directors at the every Annual General Meeting, then all the directors (i.e. all the ten directors) shall be persons liable to retire by rotation at the next Annual General Meeting. If Articles do not provide for the retirement of all directors at every annual general meeting, then in the case of a public company or a private company which is a subsidiary of a public company, not less than 2/3rd of total number of directors shall be persons liable to retire by rotation. The 2/3rd of 10 shall be 6.66 i.e. 7 directors. Section 256(1) of the Companies Act, 1956 provides that at the first annual general meeting held after the appointment of first directors in accordance with Section 255 and at eve ry subsequent annual general meeting, one-third of such of the directors for the time being as are liable to retire by rotation, or if their number is not three or a multiple of three, then the number nearest to one-third, shall retire from office. Of these 7 directors liable to retire by rotation, nearest to 1/3rd shall be 2 directors. Accordingly, 2 directors shall retire by rotation at the next annual general meeting.
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T AX LA WS/DIRECT AND INDIRECT LAWS/DIRECT T AXA AXATION-LA W AND PRACTICE AXATION-LA TION-LAW
Section 10 has been amended in the following manner with effect from the 1st day of April, 2006,— (a) In sub-clause (ii) of clause (4), the second proviso has been omitted; (b) in clause (6BB), the words, figures and letters “entered into after the 30th day of September, 2005” has been substituted for the words, figures and letters “ente red into after the 31st day of March, 2005”; This has been done so as to allow the said exemption in respect of all such agreements entered on or after 1st October, 2005. (c) In sub-clause (c) of clause (10D), in the second proviso, the words, brackets, figures and letters “Explanation to sub-section (3) of section 80C or the Explanation to sub- section (2A) of section 88, as the case may be” has been substituted for the words, brackets, figures and letter “Explanation to sub-section (2A) of section 88”; (d) In item (fa) of Clause (15)(iv), the words, figures and letters “before the 1st day of April, 2005” has been omitted; (e) In proviso to clause (15A), the words, figures and letters “the 1st day of October, 2005” has been substituted for the words, figures and letters “the 1st day of April, 2005”,.
Students appearing in Tax Laws (to the extent of topics covered in the Syllabus) and Direct and Indirect Taxation-Law and Practice Papers of Intermediate and Final Examination may take note of the following changes in the Direct Tax portion, made by the Finance Act 2005 applicable for June 2006 Examination.
(a) In section 2 of the Income-tax Act, with effect from the 1st day of April, 2006, in clause (7), sub-clause (a), for the words “assessment of his income or assessment of fringe benefits “, the words “assessment of his income “ has been substituted; This has been done so as to provide that the term “assessee” shall also include every person, being an employer in respect of whom any proceeding under the Act has been taken for the assessment of the fringe benefits in respect of which he is assessable. Also, after clause (23A), the following new clause (23B) has been inserted, namely:— ‘(23B) “fringe benefits” means any fringe benefits referred to in section 115WB;’; (b) In Proviso to clause (42A), the words “or a zero coupon bond” has been inserted after the words, brackets, figures and letter “clause (23D) of section 10”. This change has been made so as to treat zero coupon bond held not for more than twelve months as a short-term capital asset. (c) In clause (43), the words, figures and letters “and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA” has been inserted after the words “the aforesaid date”. Above change has been made so as to provide that the term “tax” shall include the fringe benefit tax chargeable under the new section 115WA. (d) in clause (47), a new sub-clause (iva) has been inserted after sub-clause (iv), which reads— “(iva)the maturity or redemption of a zero coupon bond; or”; (e) A new clause (48) has been inserted after the existing clause (47) and the Explanation relating thereto, which reads— ‘(48) “zero coupon bond” means a bond— (a) issued by any infrastructure capital company or infrastructure capital fund or public sector company on or after the 1st day of June, 2005; (b) in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital company or infrastructure capital fund or public sector company; and (c) which the Central Government may, by notification in the Official Gazette, specify in this behalf. Explanation : For the purposes of this clause, the expressions “infrastructure capital company” and “infrastructure capital fund” shall have the same meanings respectively assigned to them in clauses (a) and (b) of Explanation 1 to clause (23G) of section 10. Prepared by Yogindu Khajuria, AEO, The ICSI.
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In sub-section (1A), after clause (ii), the following proviso has been inserted with effect from the 1st day of April, 2006, namely:— “Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub-section (1) of section 139.”.
In section 16 of the Income-tax Act, clause (i) has been omitted with effect from the 1st day of April, 2006.
In clause (2), for the existing sub-clause (vi), new sub-clause (vi) has been substituted, with effect from the 1st day of April, 2006, namely:— “(vi) the value of any other fringe benefit or amenity (excluding the fringe benefits chargeable to tax under Chapter XII-H) as may be prescribed:”. This change has been made to provide that the value of any other fringe benefit or amenity which may be prescribed, shall exclude those fringe benefits which are chargeable to tax under Chapter XII-H . This amendment is therefore consequential in nature.
In section 32 of the Income-tax Act, in sub-section (1),— (a) for the existing clause (iia), the following new clause (iia) has been substituted with effect from the 1st day of April, 2006, which reads— ‘(iia) in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction under clause (ii): Provided that no deduction shall be allowed in respect of— (A) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or
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A CADEMIC GUIDANCE (B) any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest-house; or (C) any office appliances or road transport vehicles; or (D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any one previous year;’; (b) In clause (iii), in the Explanation, in clause (2), the words, brackets, letter and figures “an Indian company or in a scheme of amalgamation of a banking company, as referred to in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949) with a banking institution as referred to in sub-section (15) of section 45 of the said Act, sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of that Act, of any asset by the banking company to the banking institution” has been substituted for the words “an Indian company”,.
In sub-section (4), the words, brackets, letter and figure “so much of such sale proceeds which represent the amount credited to the reserve account and utilised for the purposes mentioned in clause (c) of sub-section (3)” has been substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2004 for the words, “such sale proceeds”,. This has been done so as to provide that only so much amount of the sale proceeds which represent the amount credited to the reserve account and utilized for acquisition of the ship would be deemed to be the profits.
(ii) “period of life of the bond” means the period commencing from the date of issue of the bond and ending on the date of the maturity or redemption of such bond; (iii) “infrastructure capital company” and “infrastructure capital fund” shall have the same meanings respectively assigned to them in clauses (a) and (b) of Explanation 1 to clause (23G) of section 10; Also, after the existing clause (xii), a new clause (xiii) has been inserted, namely:— ‘(xiii) any amount of banking cash transaction tax paid by the assessee during the previous year on the taxable banking transactions entered into by him. Explanation : For the purposes of this clause, the expressions “banking cash transaction tax” and “taxable banking transaction” shall have the same meanings respectively assigned to them under Chapter VII of the Finance Act, 2005.’. This has been done to provide deduction in respect of banking cash transaction tax paid by the assessee during the year on the taxable banking transactions entered into by him. Explanation to this section provides that for the purposes of this clause the expressions “banking cash transaction tax” and the “taxable banking transaction” shall have the same meanings respectively assigned to them under Chapter VII of the Finance Act 2005.
In clause (a), after sub-clause (ib), a new sub-clause (ic) has been inserted with effect from the 1st day of April, 2006, namely:— “(ic) any sum paid on account of fringe benefit tax under Chapter XII-H;”.
In clause (5) to sub-section (2AB), the figures, letters and words “31st day of March, 2007” has been substituted with effect from the 1st day of April, 2006 for the figures, letters and words “31st day of March, 2005”,. This change has been made to provide that deduction under the said sub-section shall be allowed with regard to such expenditure incurred upto 31st March, 2007.
A new clause (viaa) has been inserted after the existing clause (via), which reads— ‘(viaa) any transfer, in a scheme of amalgamation of a banking company with a banking institution sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949 (10 of 1949), of a capital asset by the banking company to the banking institution. Explanation : For the purposes of this clause,— (i) “banking company” shall have the same meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (ii) “banking institution” shall have the same meaning assigned to it in sub-section (15) of section 45 of the Banking Regulation Act, 1949 (10 of 1949);’. Above amendment has been made so as to provide that the provisions of Section 45 shall not be applicable in respect of any transfer of a capital asset by a banking company to a banking institution in a scheme of amalgamation of such banking company with such banking institution sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949. The Explanation to this section defines the meaning of expressions “banking company” and “banking institution” used in clause (viaa).
In sub-section (1), the words “in connection with his voluntary retirement” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2004 for the words “at the time of his voluntary retirement”,. Above change has been made so as to allow the whole expenditure incurred by the assessee in making payment to the employee in connection with his voluntary retirement either in the year of retirement or in any subsequent year, each part payment being entitled to deduction in five equal annual instalments beginning from the year in which such part payment is made to the employee.
In sub-section (1), with effect from the 1st day of April, 2006, a new clause (iiia) has been inserted after clause (iii), which reads:— ‘(iiia) the pro rata amount of discount on a zero coupon bond having regard to the period of life of such bond calculated in the manner as may be prescribed. Explanation : For the purposes of this clause, the expressions— (i) “discount” means the difference between the amount received or receivable by the infrastructure capital company or infrastructure capital fund or public sector company issuing the bond and the amount payable by such company or fund or public sector company on maturity or redemption of such bond;
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In sub-section (1)(iii), in sub-clause (e), after the words, brackets, figures and letter “or clause (via)”, the words, brackets, figures and letters “or clause (viaa)” has been inserted.
A new sub-section (3) has been substituted for the existing subsection (3), with effect from the 1st day of April, 2006, namely:—
February 2006
A CADEMIC GUIDANCE “(3) Where the cost of the long-term specified asset has been taken into account for the purposes of clause (a) or clause (b) of subsection (1),— (a) a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a deduction from the income with reference to such cost shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.”. This has been done in order to provide that where the cost of the long term specified asset has been taken into account for the purposes of exemption under this section, a deduction from the income with reference to such cost shall not be allowed under new Section 80C.
A new sub-section (3) has been substituted for the existing subsection (3), with effect from the 1st day of April, 2006, namely:— “(3) Where the cost of the specified equity shares has been taken into account for the purposes of clause (a) or clause (b) of sub-section (1),— (a) a deduction from the amount of income-tax with reference to such cost shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a deduction from the income with reference to such cost shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.”.
After existing Section 72A of the Act, a new Section 72AA stating the provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases has been inserted, namely: ’72AA. Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases.— Notwithstanding anything contained in sub-clauses (i) to (iii) of clause (1B) of section 2 or section 72A, where there has been an amalgamation of a banking company with any other banking institution under a scheme sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949 (10 of 1949), the accumulated loss and the unabsorbed depreciation of such banking company shall be deemed to be the loss or, as the case may be, allowance for depreciation of such banking institution for the previous year in which the scheme of amalgamation was brought into force and other provisions of this Act relating to set-off and carry forward of loss and allowance for depreciation shall apply accordingly. Explanation : For the purposes of this section,— (i) “accumulated loss” means so much of the loss of the amalgamating banking company under the head “Profits and gains of business or profession” (not being a loss sustained in a speculation business) which such amalgamating banking company, would have been entitled to carry forward and set-off under the provisions of section 72 if the amalgamation had not taken place; (ii) “banking company” shall have the same meaning assigned to it in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (iii) “banking institution” shall have the same meaning assigned to it in sub-section (15) of section 45 of the Banking Regulation Act, 1949 (10 of 1949); (iv) “unabsorbed depreciation” means so much of the allowance for
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depreciation of the amalgamating banking company which remains to be allowed and which would have been allowed to such banking company if amalgamation had not taken place.’. This amendment provides that where a banking company has been amalgamated with a banking institution under a scheme sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949, the accumulated loss and unabsorbed depreciation of the amalgamating banking company shall be deemed to be the loss or the allowance for depreciation of the banking institution with which the banking company has been amalgamated and all the provisions contained in the income-tax Act relating to set-off and carry forward of loss and unabsorbed depreciation shall apply accordingly.
In sub-section (4), the words “four assessment years” has been substituted with effect from the 1st day of April, 2006 for the words “eight assessment years”.
After section 80B of the Income-tax Act, new Section 80C providing for deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. has been inserted with effect from the 1st day of April, 2006, which reads: ’80C.—(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees. (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee— (i) to effect or to keep in force an insurance on the life of persons specified in sub-section (4); (ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause (xii), on the life of persons specified in sub-section (4): Provided that such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; (iii) by way of deduction from the salary payable by or on behalf of the Government to any individual being a sum deducted in accordance with the conditions of his service, for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum so deducted does not exceed one-fifth of the salary; (iv) as a contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies; (v) as a contribution to any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of any person specified in sub-section (4); (vi) as a contribution by an employee to a recognised provident fund; (vii) as a contribution by an employee to an approved superannuation fund; (viii) as subscription to any such security of the Central Government or any such deposit scheme as that Government may, by notification in the Official Gazette, specify in this behalf; (ix) as subscription to any such savings certificate as defined in clause (c) of section 2 of the Government Savings Certificates Act, 1959 (46 of 1959), as the Central Government may, by notification in the Official Gazette, specify in this behalf; (x) as a contribution, in the name of any person specified in sub-
February 2006
A CADEMIC GUIDANCE section (4), for participation in the Unit-linked Insurance Plan, 1971 (hereafter in this section referred to as the Unit-linked Insurance Plan) specified in Schedule II of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (xi) as a contribution in the name of any person specified in subsection (4) for participation in any such unit-linked insurance plan of the LIC Mutual Fund notified under clause (23D) of section 10, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xii) to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation or any other insurer as the Central Government may, by notification in the Official Gazette, specify; (xiii) as subscription to any units of any Mutual Fund notified under clause (23D) of section 10 or from the Administrator or the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xiv) as a contribution by an individual to any pension fund set up by any Mutual Fund notified under clause (23D) of section 10 or by the Administrator or the specified company, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xv) as subscription to any such deposit scheme of, or as a contribution to any such pension fund set up by, the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987) (hereafter in this section referred to as the National Housing Bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xvi) as subscription to any such deposit scheme of— (a) a public sector company which is engaged in providing longterm finance for construction or purchase of houses in India for residential purposes; or (b) any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (xvii)as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,— (a) to any university, college, school or other educational institution situated within India; (b) for the purpose of full-time education of any of the persons specified in sub-section (4); (xviii)for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of— (a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or (b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or (c) repayment of the amount borrowed by the assessee from— (1) the Central Government or any State Government, or (2) any bank, including a co-operative bank, or (3) the Life Insurance Corporation, or
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(4) the National Housing Bank, or (5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or (6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or (7) the assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or (8) the assessee’s employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society; or (d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee, but shall not include any payment towards or by way of— (A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a cooperative society has to pay for becoming such shareholder or member; or (B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or (C) any expenditure in respect of which deduction is allowable under the provisions of section 24; (xix) as subscription to equity shares or debentures forming part of any eligible issue of capital approved by the Board on an application made by a public company or as subscription to any eligible issue of capital by any public financial institution in the prescribed form. Explanation : For the purposes of this clause,— (i) “eligible issue of capital” means an issue made by a public company formed and registered in India or a public financial institution and the entire proceeds of the issue are utilised wholly and exclusively for the purposes of any business referred to in sub-section (4) of section 80-IA; (ii) “public company” shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956); (iii) “public financial institution” shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956); (xx) as subscription to any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board on an application made by such mutual fund in the prescribed form: Provided that this clause shall apply if the amount of subscription to such units is subscribed only in the eligible issue of capital of any company. Explanation : For the purposes of this clause “eligible issue of capital” means an issue referred to in clause (i) of the Explanation to clause (xix) of sub-section (2). (3) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy other than a contract for a deferred annuity as is not in excess of twenty per cent of the actual capital sum assured.
February 2006
A CADEMIC GUIDANCE Explanation : In calculating any such actual capital sum assured, no account shall be taken—
(i) of the value of any premiums agreed to be returned, or (ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. (4) The persons referred to in sub-section (2) shall be the following, namely:— (a) for the purposes of clauses (i), (v), (x) and (xi) of that subsection,— (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and (ii) in the case of a Hindu undivided family, any member thereof; (b) for the purposes of clause (ii) of that sub-section, in the case of an individual, the individual, the wife or husband and any child of such individual; (c) for the purpose of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual. (5) Where, in any previous year, an assessee— (i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance,— (a) in case of any single premium policy, within two years after the date of commencement of insurance; or (b) in any other case, before premiums have been paid for two years; or (ii) terminates his participation in any unit-linked insurance plan referred to in clause (x) or clause (xi) of sub-section (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contributions in respect of such participation have been paid for five years; or (iii) transfers the house property referred to in clause (xviii) of sub-section (2) before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, or receives back, whether by way of refund or otherwise, any sum specified in that clause, then,— (a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, referred to in clauses (i), (x), (xi) and (xviii) of sub-section (2), paid in such previous year; and (b) the aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year. (6) If any equity shares or debentures, with reference to the cost of which a deduction is allowed under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a period of three years from the date of their acquisition, the aggregate amount of the deductions of income so allowed in respect of such equity shares or debentures in the previous year or years preceding the previo us year in which such sale or transfer has taken place shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year. Explanation : A person shall be treated as having acquired any shares or debentures on the date on which his name is entered in relation to those shares or debentures in the register of members or of debentureholders, as the case may be, of the public company. (7) For the purposes of this section,—
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(a) the insurance, deferred annuity, provident fund and superannuation fund referred to in clauses (i) to (vii); (b) unit-linked insurance plan and annuity plan referred to in clauses (xii) to (xiiia); (c) pension fund and subscription to deposit scheme referred to in clauses (xiiic) to (xiva); (d) amount borrowed for purchase or construction of a residential house referred to in clause (xv), of sub-section (2) of section 88 shall be eligible for deduction under the corresponding provisions of this section and the deduction shall be allowed in accordance with the provisions of this section. (8) In this section,— (i)
“Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (ii) “contribution” to any fund shall not include any sums in repayment of loan; (iii) “insurance” shall include— (a) a policy of insurance on the life of an individual or the spouse or the child of such individual or a member of a Hindu undivided family securing the payment of specified sum on the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the event of such person dying before the said stipulated date; (b) a policy of insurance effected by an individual or a member of a Hindu undivided family for the benefit of a minor with the object of enabling the minor, after he has attained majority to secure insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf; (iv) “Life Insurance Corporation” means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956); (v) “public company” shall have the same meaning as in section 3 of the Companies Act, 1956 (1 of 1956); (vi) “security” means a Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944); (vii) “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); (viii) “transfer” shall be deemed to include also the transactions referred to in clause (f) of section 269UA.’. This amendment is consequential in nature.
A new sub-section (3) has been substituted for the existing Subsection (3) with effect from the 1st day of April, 2006, which reads: “(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section,— (a) a rebate with reference to such amount shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006; (b) a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.”. This change has been made so as to provide that where any amount paid or deposited by the assessee, has been allowed as a deduction under the aforesaid section, a deduction with reference to such amount shall not be allowed under Section 80C.
[... To be continued in March, 06 Issue of this Bulletin.]
February 2006
A CADEMIC GUIDANCE
ATTENTION STUDENTS!
It has been observed that some of the enrolment applications/letters received from the students are either unsigned or bear different signatures from time to time.
TRAINING It has been observed that the students opting for undergoing 15 months training with Company Secretaries in whole-time Practice are submitting the Contract of Apprenticeship and other relevant documents and registration fees to the Institute after a considerable period of time. As per the Training Guidelines, the students should submit the underlisted documents within 15 days from the commencement of training to enable the institute to take their training on record with effect from the date of execution of Contract. (i) Contract of Apprenticeship in duplicate on a non-judicial stamp paper of requisite value as applicable to the particular State, where the contract is executed. The Contract should be executed by both the parties viz., the trainee and the Company Secretary in wholetime Practice. (ii) Statement of Particulars to be submitted in duplicate for registration as a trainee (Part A & B). (iii) Rs. 50/- being the Registration Fee. If the aforesaid documents/information is not received within the stipulated time, the training shall not be taken on record.
All the students are, therefore, advised to maintain uniformity in their signatures on all the correspondence with the Institute including student identity card and enrolment application for appearing in the examination.
Applicability of Latest Finance Act and other changes for Company Secretary June 2006 Examination.
All the students may kindly note that for the June 2006 Examination session, in respect of Direct Taxes, the applicable Assessment Year shall be 2006-07 (Previous year 2005-06). Thus, they will have to study Finance Act, 2005 for June 2006 examination. Further, as per the syllabus students are required to update themselves about all the Circulars, Clarifications, Notifications issued by CBDT & Central Government, which come in to effect on or before 6 months prior to the date of the respective Examination. Gift Tax Act has been excluded from the scope of examination from June 1999 session onwards unless otherwise informed. Students appearing in the ‘Tax Laws’ (Indirect Tax portion to the extent of topics covered in the syllabus) and ‘Direct and Indirect Taxation-Law and Practice’ (Indirect tax portion) paper of the Intermediate and Final Courses respectively may please take note of the following changes applicable for June, 2006 Examination: 1. All changes made by the Finance Act, 2005. 2. All Circulars, Clarifications/Notifications issued by CBE&C/ Central Government which became effective six months prior to the date of examination.
TRAINING DIARY Every student sponsored for 15 months' training either in a company or under a company secretary in practice, is essentially required to maintain a Training Diary brought out by the Institute. The trainees are required to record all activities/jobs undertaken on daily basis in the Training Diary during the entire period of training. The Training Diary can be purchased from the Headquarters and the Regional Offices located at EIRC, NIRC, SIRC, WIRC and also at the Chapter Offices at Ahmedabad, Bangalore, Chandigarh, Jaipur, Hyderabad and Pune. The cost of a Training Diary is Rs. 100/-. The Training Diary is being sent to students by Un-registered and Registered post only at the following rates. 1.
Unregistered Parcel
=
Rs. 40/- per diary
2. Registered Parcel = Rs. 55/- per diary Students are advised to maintain the Diary as per the Training Guidelines and submit the same to the Training Department along with the Training Completion Certificate.
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February 2006
LEGAL WORLD Compiled by T.K.A. Padmanabhan, FCS, Advocate, New Delhi.
SHERNO INVESTMENT & FINANCE LTD v. REGISTRAR OF COMPANIES [(2006) 70 CLA 21 (Guj)] Jayant Patel,J. [Decided on 6.9.2005] Companies Act, 1956 - Sections 21 read with section 394 - Amalgamation of companies - Scheme provided for change of name of transferee company - Scheme sanctioned by the court - company filed the order of the court with ROC - ROC refused to effect change of name and insisted that procedure laid down under section 21 should be followed - Whether the contention of the ROC is valid - Held, No. Brief Facts : The applicant company filed the sanction order of the court with the ROC and requested him to issue a certificate of incorporation by incorporating the change of name in accordance with the scheme sanctioned by the court. The ROC insisted that the company should follow the procedure laid down under section 21 of the Act and refused to effect the change of name. It is pertinent to point out here that the ROC took the same objection before the court when the petition for sanction of the scheme of amalgamation came up before the Court and the court dismissed the objection of the ROC and sanctioned the scheme which provided for the change of name of the transferee company. The applicant company moved the court against the refusal of the ROC. Decision : Application allowed. Reason : It appears that when the scheme which was proposed is on the basis of the resolution of the company, the same can be the basis, together with the sanction order passed by this court and in the event such meeting is dispensed with by this court while sanctioning the scheme under section 394, mere reference to the order of this court will be sufficient. In any event, such format cannot be validly pressed in service as against the implementation of the order of this court sanctioning the scheme for amalgamation. It would be for opponent to correct the format accordingly and to issue the necessary certificate by implementing the order already passed by this court. In the result, the only answer would be that it is not open to the Registrar of Companies to raise objection for change of name, which is part of the scheme of amalgamation duly sanctioned by this court on the ground that separate procedure under section 21 of the Act is not followed or is required to be followed.
THE UP STOCK EXCHANGE ASSOCIATION LTD v. VEGPRO FOODS & FEEDS LTD [(2005) 6 COMP LJ 397 (ALL)] Sunil Ambwani, J. [Decided on 29.8.2005] Companies Act, 1956 - Section 433 (10(e) - Read with section 22(1) of the SICA -Respondent company registered with BIFR - Failed to pay annual listing fees to the petitioner association - petitioner filed winding up petition against the respondent - Whether maintainable - Held, No. Brief Facts :The respondent company was listed with the petitioner. The respondent became a sick company and a reference was made to the BIFR under the SICA. The respondent did not pay the annual listing fee to the petitioner. The petitioner filed a winding up petition against the respondent company on the ground that in spite of the statutory demand notice, dues towards annual listing fees had remained unpaid. The respondent company resisted the petition on the ground that the petitioner had not obtained the permission from the BIFR to file the winding up petition. Decision : Petition dismissed.
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Reason : The bar under section 22(10) of the SICA is applicable as soon as the reference under section 15(1) of the Act is registered by BIFR and in such case, no company petition to wind up such company, shall lie or proceed with, subject to exception that it may be instituted or proceeded with the sanction of the BIFR or as the case may be, by the Appellate Authority. In the present case, the petitioner has not applied to the BIFR for permission to file company petition, and as such, no exception can be taken. The company petition is accordingly dismissed with liberty to the petitioner to either apply to BIFR for permission to file a company petition to wind up the respondent company or await the conclusion of the proceedings before the BIFR.
JUMGO COTTON ENTERPRISES v. RAYALASEEMA MILLS LTD [(2005) 6 COMP LJ 355 (AP)] S.Ananda Reddy, J. [Decided on 20.4.2005] Companies Act, 1956 - Section 433 Winding up - Inability to pay debts - Agreements between the parties required reconciliation of petitioner’s claim with the books of accounts of the respondent company - Alleged claims were not reconciled - Whether there is ascertained and determined debt entitling the petitioner to maintain the winding up petition - Held, No. Brief facts : Petitioner firm along with its sister concerns and the respondent company had many cross dealings. An agreement was entered into between the parties on 16.2.1997 where in the respondent company agreed to pay the amounts due to the petitioner to its sister concern. Later this agreement was amended and fresh agreements were entered into by them on 19.1.2000 and 21.3.2001. These agreements stipulated that claims of the petitioner firm should be reconciled with the books of accounts of the respondent company. The alleged claim of the petitioner was not reconciled with the books of account of the respondent company. The respondent company failed to pay the petitioner firm and the petitioner filed a winding up petition based on these agreements and also claiming that there was a running account between the parties up to 23.3.2002. The respondent company resisted the petition on the grounds that there was no ascertained and determined debt and that it was time barred. Decision : Petition dismissed. Reason : The petitioner claims that it is entitled to make a demand even with reference to its sister concern with regard to the amount of liability from the respondent. Though there was a reference to the same in the earliest agreement dated 16.2.1997, there is no subsequent reference to the same in later agreements dated 19.1.2000 and 21.3.2001. With reference to the interest claimed by the petitioner firm, there is no specific provision under the later agreements and finally according to the petitioner the last agreement was entered into on 21.3.2001 and thereafter, there was a running account, which was continued up to 31.5.2002. But no material was placed on record showing that there was any running account till 31.5.2002 between the parties. The copies of the accounts filed for the broken periods show that the account continued till 23.3.2002 and thereafter, there is only a letter of the petitioner firm dated 9.5.2002 under which the petitioner claimed only a sum of Rs.12, 82,000 and not the amount of Rs.95, 15,697 which the petitioner had shown as liability in the statutory notice. Further, even during the alleged running account between the parties, there is no communication from the respondent admitting any liability. In addition all the agreements stipulate that alleged claims of the petitioner firm are required reconciliation with the books of the respondent company. Admittedly there is no such reconciliation made. When once there is no reconciliation of the claims of the petitioner with the books of the respondent company, it is difficult to accept the claim of the petitioner that there is an ascertained and determined debt. When there is no ascertained and determined debt, the petitioner cannot maintain a winding up petition. In addition, even assuming that the running account continued up to 23.3.2002, if the said debt is taken into account even from that date also, the claim is barred by limitation, as
February 2006
LEGAL WORLD three year period had elapsed by the date the company petition was taken up for hearing. Since no winding up order is passed within the period of three years from the alleged date of running account between the petitioner and the respondent, (even assuming it to be true) the present claim is barred by limitation.
APPAREL EXPORT PROMOTION COUNCIL v. PRABHATI PATNI & ANR [125(2005) DLT 511] Badar Durrez Ahmed, J. [Decided on 1.12.2005] Arbitration and Conciliation Act, 1996 - Section 34 - Challenge of award - Contract between the parties confers exclusive jurisdiction on Jaipur court - Arbitration proceedings held in Delhi and award made - Whether courts in Delhi have jurisdiction to entertain the petition - Held No. Brief Facts : The petitioner and the respondent had entered into a contract and exclusively reserved the jurisdiction to the courts of Jaipur, besides providing for arbitration to resolve disputes that may arise from the contract. Disputes arose between them and the same was referred to arbitration. Arbitration proceedings were held in Delhi and the arbitral award was made in Delhi. Dissatisfied with the award, the petitioner challenged the award in the High Court of Delhi and the Respondent challenged the award by filing an objection petition in the district courts of Jaipur. The respondent objected to the petition of the petitioner contending, inter alia, that the Delhi court had no territorial jurisdiction to entertain the petition of challenging the award. The petitioner contended that since the arbitration was held in Delhi and the award was made in Delhi, courts in Delhi had jurisdiction to entertain the objection petition. Decision : Petition dismissed. Reason : Where two or more competent courts have jurisdiction to entertain a matter, if the parties by contract agree to fix jurisdiction in only one of them, then such a contract or agreement would have to be held to be valid. The consequences thereof would be that the court on which the jurisdiction was conferred by agreement would be the only court entitled to exercise such jurisdiction. Assuming that this court otherwise has jurisdiction, in view of Clause 7 of the agreement, such jurisdiction has been excluded by agreement between the parties and only the Courts at Jaipur would have jurisdiction in the matter. In view of the discussions above, it becomes clear that even if this Court had jurisdiction, assuming for the moment that conduct of the arbitration proceedings and making of the award confers jurisdiction, the same is expressly excluded in view of the ouster clause i.e.Clause 7 referred to above.
M.ETHIRAJULU V.RANGAM ADINARAYANA & ORS [(2005) 128 Comp Cas 703 (AP)] T.Ch.Surya Rao, J. [Decided on 17.2.2005] Negotiable Instruments Act, 1881 - Sections 8, 9, 138 and 142 - Drawer issuing cheque to second accused (SA) - SA giving the cheque to the complainant towards the payment of sarees purchased - Complainant not recording the endorsement on the reverse of the cheque - Cheque dishonoured - Complainant bringing action against the drawer and SA - Trial court took cognizance of the offence - whether tenable - Held No. Brief Facts : The petitioner, who is the first accused in the complaint, had issued a cheque to the second accused. The second accused purchased silk sarees from the first respondent and made the payment therefor giving the cheque issued by the petitioner to him for discharging the liability with the permission of the petitioner. However, the first respondent did not record the endorsement on the reverse of the cheque. On presentation the cheque was dishonoured and the first respondent filed a complaint under section 138 of the Negotiable Instruments Act [the NIA] .
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Against the petitioner and the second accused. The petitioner contended before the Trial court that since the endorsement was not made on the reverse of the cheque as required under the NIA the first respondent was not a holder or holder in due course and no action was maintainable against him qua the cheque. However, the trial court took cognizance of the offence. Against this the petitioner moved the High court for quashing the proceedings. Decision : Petition allowed. Reason : Under section 8 of the NIA, mere possession of the cheque is not sufficient to become the holder and one can become a holder only when the conditions specified are satisfied. No endorsement is made on the reverse of the cheque which enabled the first respondent to possess it in his own name so as to receive or recover the contents thereof from the parties thereto. Therefore, the first respondent cannot be considered to be a “holder” much less a ‘holder in due course”. Under section 138 of NIA, it is only the payee or holder in due course who can file a complaint on dishonour of the cheque. The first respondent not being a holder in due course cannot maintain the complaint.
COMMISSIONER OF CENTRAL EXCISE v. SIVANESAN & CO [2005(190) ELT 236(Tri-Chennai)] P.G.Chacko (J) & T.K.Jayaraman (T). [Decided on 22.9.2005)] Central Excise Act, 1944- Duty exemption - SSI units - Two partnership firms in the same name but with additional partner besides having common partners – Brand name jointly owned by the partners - Assessee firm used the brand name in its products and claimed duty exemption - Revenue denied exemption on the ground of use of brand name of ano ther person- Whether denial of duty exemption is valid - Held, No. Brief Facts : There were two partnership firms in the name of M/s. Sivanesan & Co having common partner and the second firm had additional partner. Both the firms are SSI units engaged in the manufacture of pressure cookers and they used the brand name “PREMIER” and also the logo”SS” on their clearances. The partners jointly owned the brand name. The revenue denied duty exemption to the assessee firm on the ground that it had used the brand name of another person. The first appellate authority allowed the appeal of the assessee and the Revenue came in appeal before the Tribunal. Decision : Appeal dismissed. Reason : We have gone through the records of the case carefully. There are actually two partnership firms in the name M/s. Sivanesan & Co. In the case of the second partnership firm viz M/s. Sivanesan & Co the additional partner, mother of Shri.Sivanesan who is a partner in the respondent firm along with his sister in law Smt.K.Parvati. Both the partnership firm used the brand name of “PREMIER” along with the logo “SS” in respect of the products cleared by them emphasized that when the brand name is jointly owned, each person is owner of the brand name. In this view, in the present case, we cannot say that the respondents were using the brand name of another person. Moreover, the Commissioner (Appeals) has given a finding that even if the clearances of both the units are clubbed together, they will come within the exemption limit provided in the Notification. In these circumstances, we do not find any infirmities in the impugned order of the commissioner (Appeals). The Revenue appeal is rejected.
MAHINDRA & MAHINDRA LTD v. COMMISSIONER OF CENTRAL EXCISE [2005(190) ELT 301(Tri-Del LB)] Justice J.K.Abichandani (P), K.C.Mamgain (T) & M.V.Ravindran (J). [Decided on 18.11.2005] Central Excise Act, 1944 - Sections 2(f) and 3 - Manufacture and excisability - Fabrication and erection of steel structure - Materials like angles, rods, plates, tubes used - assessee did not pay excise
February 2006
LEGAL WORLD duty on the erection of structure - Revenue considering the erected structure as excisable goods levied excise duty - Whether the stand of Revenue is tenable - Held, yes. Brief Facts : Batch of appeals raising a common issue was disposed of by the Larger Bench of the Tribunal under a common order. In the case of Elcon Engineering Ltd v. CCE , 1999(107) ELT 337 (Tri-Del) it had been held that there was no manufacture of goods involved in making of structural components by processing structural materials and that the goods were not marketable and therefore no excise duty could be levied. This judgment was set aside by the Constitution Bench of Supreme Court [2003 (152) ELT A88 (SC)] and remanded to the Tribunal for fresh consideration in the light of Tariff head 73.08. The tariff head 73.08 pertains to structures and related structural goods made of steel which came into force w.e.f.1.3.1988. Issue: Whether the structurals are new and identifiable goods?
Whether structurals are produced as a result of manufacture of processes? Whether structurals are marketable? Decision & Reasons : There can be no dispute over the proposition that immovable property, be it immovable steel structure embedded on earth or a constructed building, cannot be subjected to excise duty which applies to excisable goods i.e.to movables. In the making of an immovable structure or building are used a variety of movables. Raising iron and steel structures like sheds involves fabrication work and many of the articles used in raising the structure come into existence through fabrication as per the pre determined design to be fitted into the structure that is to be raised. For example, roof frame may be fabricated for the roof structure of a shed. Such fabrication of frames may be done at construction site or at some factory premises. The iron and steel frames fabricated at the factory premises away from the site of construction would be brought to the site for their use in erecting the structure. Both the frames pre-fabricated and brought to the site and frames fabricated at the site of erection are goods manufactured. There will be variety of parts of structures of iron and steel that can be fabricated either at the site or at some factory premises away from the site. The iron and steel raw material such as angles, rods, plates, tubes etc are used in making part of structures and they acquired a distinctly different shape to suit the structural design. Unlike in liquid mixtures, the raw material of iron and steel or wood will retain their identity, but it is precisely their being cut and designed, punched and fitted to make an article commercially known that involves manufacture of an article distinct from the angles, tubes, plates etc used in it.
Mere drilling holes or mere cutting jobs in isolation may not by themselves involve manufacture of an article, but, converting raw material like angles, tubes, plates etc to bring about a distinct commodity will surely amount to manufacture as it is not “mere’ drilling holes or cutting, but the activity is aimed at bringing about a distinct commodity. It is only for the purpose of valuation of the parts of structures used in erecting the designed structure, that the quantities of raw material such as angles, rods, tubes, plates etc used for the purpose and their value were considered for working out the duty evasion. The entire exercise of projecting the matter as if mere angles, rods, tubes or plates that went into the making of the designed structure were being subjected to excise duty is misconceived and misleading. When a part of structure is prepared and disassembled, the members thereof will be angles, rods etc prepared for the use in such structure. These are not angles or plates merely cut or drilled without reference to a particular structure. The later part of Heading 73.08 would apply to the members such as plates, rods, angles etc that are prepared for use in structures or their parts in their preassembled or disassembled state of an identifiable article of the types of the parts of structures covered under Heading 73.08.
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COMMISSIONER OF CENTRAL EXCISE v. S.KUMARS LTD [2005(190) ELT 145(SC)] Ruma Paul & H.K.Seema, JJ. [Decided on 21.11.2005] Central Excise Act, 1944 - Section 4 - Central Excise (Valuation) Rules, 1975 - Assessee processing grey fabrics of own and received from merchant manufacturers who were its group concerns - Assessee paid duty on the goods received from merchant manufacturers on cost+ processing charges+ manufacturing profit while duty on its own processed goods was paid on whole sale market price - Revenue rejected the valuation of the assessee and demanded differential duty with respect to goods processed for merchant manufacturers as the transaction was between related persons - Whether the stand of the Revenue tenable - Matter remanded back to Tribunal Brief Facts : The assessee is a processor of grey fabric besides being manufacturer and trader. The assessee received fabrics from its group concerns for job processing. The assessee paid excise duty on the processed fabric on wholesale price of the merchant manufacturers up to 28.2.1989 in accordance with the decision rendered in Empire Industries Ltd v. UOI (1985) 3 SCC 314. With effect from 1.3.1989 the assessee adopted two methods for paying excise duty. For the processed fabric of its own the duty was paid on the whole sale price and for the fabrics supplied by other merchant manufacturers the duty was paid based on the value comprising of cost of the fabric + processing charges+ manufacturing profit. Obviously this value was less than the wholesale price of the merchant manufacturers. The assessee adopted this later method with respect to job processed fabrics based on the judgment rendered in Jaguar Prints v. UOI (1989) 3 SCC 488[Ujagar Prints II] and as explained Ujagar Prints v. UOI (1989) 3 SCC 531[Ujagar Prints III]. The Revenue rejected the valuation of the assessee and levied duty at the whole sale price charged by the merchant manufacturers on the ground that all the merchant manufacturers who gave fabrics for processing were group concerns of the assessee and that the ratio of Ujagar Prints III does not apply to transaction between related parties. The assessee challenged the levy before the Tribunal which upheld the assessee’s contention.the Revenue appealed to the Supreme Court. Decision : Appeal allowed. Matter remanded to Tribunal for fresh adjudication. Reason : We do not agree that Ujagar prints III would apply even to a processor who is not independent and, as alleged in this case, the merchant manufacturers and the purchasing traders are merely extensions of the processor. In the latter case, the processor is not a mere processor but also a merchant manufacturer who purchases/ manufactures the raw material, processes it and sells it himself in the wholesale market. In such a situation, the profit is not of a processor but of a merchant manufacturer and a trader. If the transaction were between related persons, the profit would not be normally earned within the meaning of Rule 6(b)(ii). If it is established that the dealings were with related persons of the manufacturer the sale of the processed fabric would not be limited to the formula prescribed by Ujagar Prints III but would be subject to excise duty under the principles enunciated in Empire Industries as affirmed in Ujagar prints II , incorporating the arms length principle. Since the Tribunal, in our opinion, wrongly upheld the respondent’s contention that the formula in Ujagar Prints III would apply in full measure, it is now necessary for the Tribunal to consider whether the respondents were related persons and whether the Respondent No.1 would be entitled to claim discounts or could exclude the advertisement expenses incurred by the dealers. We therefore allow the appeals and remand the matter back to the Tribunal for the purpose of determining the nature of the alleged relationship between the Respondent no.1 and other respondents.
February 2006
LEGAL WORLD GOOGLE ONLINE INDIA (P) LTD IN RE [(2006) 3 STT (AAR –New Delhi)] Justice S.S.M.Quadri (C), Somnath Pal (M) & B.A.Agrawal (M). [Decided on 13.12.2005] Finance Act, 1994 - Service Tax - Section 96C - Advance ruling - Applicant proposing to provide internet web based search service free of cost and also sell advertisement space/slot on Google search site on payment of charges - Whether the proposed service is advertisement service - Held, Yes. Brief Facts : The applicant is the wholly owned Indian subsidiary of USA based Google International LLC. The parent company is in the business of providing internet web based search service free of cost and also provides advertisement space/slot to clients to display the names of their websites on its sites on payment of charges. The applicant also proposes to provide similar service free of charge as well as to sell advertisement space slots on the Google search site to advertisers/clients in India and Pakistan, Nepal and Sri Lanka also. The applicant sought an advance ruling on its proposed activity as to its nature whether it would be either of (1) Advertisement Service (2) Computer Network Service (3) Business Auxiliary Service (4) any other taxable service. Decision : Proposed service is advertising service. Reason : It is a common ground that the applicant would be providing (1) service free of charge, and (2) service on payment of charges, and that it is a commercial concern. That the applicant would be providing/selling space for display or exhibition of advertisement is not the 3 subject matter of the controversy and this is enough to satisfy the requirements of the term ‘advertising agency”. However, what is asserted by the applicant is that it will not be providing any service connected with the display or exhibition of advertisement. This has been controverted by the commissioner in his additional comments who referred to websites (1) http:// services.google.com/ ads/inquiry/en and (2) http://adwords.google.com/select/
jumpstartwelcome . The websites support the plea that the applicant proposes to provide not only the value added service to its clients who advertise with it with respect to display of an advertisement but would also provide services with respect to preparation of an advertisement and that its sales representative would personally help clients to design the advertisement in case the proposed expenditure is more than $ 4000 a month and where a client or an advertiser would be spending more than $30 in a month, it has jump start offer where the campaign is personalized and its sales representative would help treat a campaign via e-mail. The applicant would also have a say on the content of the advertiser’s advertisement to be displayed on the applicant’s web page in case such contents are found to be not in line with their editorial policy. From the service to be offered by the applicant, we are of the view that the applicant would not merely be selling the slot on website but would also be assisting in preparation of advertisement and displaying/exhibiting advertisement; thus, it squarely falls within the meaning of advertising agency. It is also clear that it is proposing to provide to a client service in relation to making, preparation, display and exhibition of an advertisement. In fact, without prejudice to the factual position stated above, any service to a client connected with even any one or more of the four activities mentioned above, would be sufficient to bring the commercial concern providing such service, within the ambit of the definition of advertising agency. This has been made clear in the Ministry of Finance, letter F.No.341/ 43/96-TRU, dated 31.10.1996 in the context of the definition of ‘Advertising Agency” to the effect that the “scope of the service which is included in the tax net extends not only of any service connected with making, preparation of advertisements but also includes any service connected with display or exhibition of advertisements”. Therefore, it follows that the service provided by the applicant clearly falls within clause (9e) of sub-section (105) of section 65 of the Act which has a very wide coverage inasmuch as it means any service provided or to be provided by an advertising agency to a client in relation to advertisement, in any manner.
A leading Company Secr etaries etaries Fir m in Mumbai Dealing with Mutual Fund, FEMA, RBI, IPR, Banking, Legal, FIPB, Companies Act, etc. requires Intermediate and students pursuing CS Course as Trainees
TRAINEES/APPRENTICE TRAINEES Interested Candidates Please send their resume at : Box No. 125 C/o Student Company Secretary The Institute of Company Secretaries of India 22, Institutional Area Lodi Road New Delhi-110003
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February 2006
STUDENTS SERVICES
(a) Supply of ‘Student Company Secretary’ bulletin will be discontinued from March, 2006 onwards.
Foundation : Rs.500 (Lumpsum) Intermediate : Rs.400 (Per group) Final : Rs.300 (Per group) Students seeking paperwise exemption for the first time (on qualification basis) are required to remit the exemption fee @ Rs.100 per subject in addition to the examination fee on or before the last date.
(b) Response sheets will not be accepted even if submitted and coaching completion certificates will not be issued (after the expiry of registration period)
Registration of students registered upto and including March, 2001 stands terminated on expiry of five-year period on 28th February, 2006 leading to the following immediate consequences :
They are advised to apply for registration de novo/extension of registration as per the guidelines published in this bulletin. (Students whose registration is valid upto February, 2006 are however, eligible to appear in June, 2006 examination without seeking extension of registration/registration de-novo subject to fulfilling other requirements laid down in the regulations.)
Change of address, if any, should be intimated to the Institute by sending a separate letter in this regard. While intimating the change in their mailing address, the students are advised to invariably quote the PIN CODE number alongwith the student registration number, name and full postal address with city, state in capital letters.
In terms of regulation 43 of Company Secretaries Regulations, 1982, students who have passed/completed both groups of the Intermediate examination upto and including June, 2005 are eligible to appear in all the three groups or in combination thereof in any two groups of the Final examination to be held in June, 2006 under New Syllabus, subject to completion of coaching and fulfilling other conditions as laid down in the regulations.
PIN CODE is required to be mentioned for quick delivery of the mail. Students may, therefore, check up the computerised mailing address as printed on the ‘Student Company Secretary’ bulletin. In case, it does not carry or carry the wrong PIN CODE number, the same may be intimated immediately quoting student registration number and full postal address with Postal Index Number so that it could be incorporated in the computerised mailing list.
All the students appearing in the examination must hold Identity Card in the manner prescribed by the Institute, if not already obtained at the time of seeking registration. For obtaining the Identity Card, students are advised to obtain a proforma from the Headquarters/ Regional Offices of the Institute and send it again to the Institute duly filled up and attested as per instructions given in the prospectus/ registration letter. Students who have so far not obtained Identity Cards are advised to write to the Institute immediately. The students should carry their Identity Cards without fail for appearing in the Institute’s examination. If the Identity Card already issued has been lost or mutilated, student should send a request for obtaining duplicate Identity Card together with the mutilated Identity Card/Identity Card proforma duly filled in and attested together with Rs. 50/- towards duplicate Identity Card fee.
Students who have passed/completed both groups of Intermediate examination are advised to seek compulsory enrolment for undergoing coaching for the Final course on payment of Rs.4200/- towards postal tuition fee. Please note that a student is admitted to the final examination only after a minimum period of nine calendar months has elapsed since his/her passing the Intermediate examination and subject to completion of coaching and fulfillment of other requirements.
Student Company Secretary
In terms of regulation 33 of the Company Secretaries Regulations, 1982, students registered upto and including August, 2005 are eligible to appear in both groups of the Intermediate examination to be held in June, 2006 subject to completion of coaching and fulfilment of other conditions laid down in the regulations. However, candidates registered as students upto and including the month November, 2005 are eligible for appearing in any one group in June, 2006 session (i.e. either in Group-I or Group-II) subject to fulfilment of other conditions as laid down in the regulations.
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The last date for receipt of applications for enrolment to the June, 2006 examination, complete in all respects, together with the requisite examination fee in the Institute, is 27th March, 2006 (25th & 26th March, 2006 being holidays). However, enrolment applications accompanied with late fee of Rs. 100/-, if received, in the Institute after the closing date, but on or before 10th April, 2006 (9th April, 2006 being a holiday) will be entertained. Students who could not be enrolled in the earlier examination owing to late receipt of enrolment application, cancellation of registration etc. and whose examination fee was kept at credit, are advised to send fresh enrolment applications requesting therein for the adjustment of amount at their credit together with the balance of examination fee, if any. Formal application along with the original letter issued by the institute showing credit amount, must reach the Institute on or before the closing date as otherwise such students shall not be enrolled for appearing in June, 2006 examination. No other remittance/letter/query should be clubbed with the enrolment application/examination fee.
(a) The paperwise exemption is granted only on the basis of specific request received in writing from a registered student along with the attested photocopies of marks sheets for all parts of the Degree/examination (on the basis of which the paperwise exemption is sought) and the exemption fee @ Rs. 100/- per paper. It is one time payment and not to be remitted for availing of paper wise exemption in every session of examination during the validity of registration period. (b) The application for claiming paperwise exemption must reach
February 2006
STUDENTS SERVICES
(c )
(d)
(e)
(f) (g)
(h)
(i)
(j)
the Institute on or before the last date for submission of enrolment application i.e. 25th March and 25th September for June and December examinations respectively and with a late fee of Rs. 100/-, the application can be accepted upto 9th April and 10th October respectively. The paperwise exemption once granted holds good during the validity of registration period or passing/completing the examination, whichever is earlier. The paperwise exemption is cancelled only on receipt of a specific request in writing from the student concerned on or before the last date for submission of the enrolment application. If any candidate appears in the exempted paper(s) of examination without receiving the written confirmation from the Institute, but by making personal representation, appeal, request, etc., at the Examination Centre at the last moment, his/her appearance in such paper(s) shall automatically be treated as cancelled. It may be noted that candidates who apply for grant of paper wise exemption or seek cancellation of paper wise exemption already granted, before the last date of submission of enrolment applications for a particular examination, must see and ensure that they receive written confirmation from the Institute at least 15-20 days prior to the commencement of the examination. Candidates who would presume automatic grant or cancellation of paper wise exemption without obtaining written confirmation on time and absent themselves in any paper(s) of examination and/or appear in the exempted paper(s) would do so at their own risk and responsibility and the matter will be dealt with as per the above guidelines. Exemption once cancelled on request in writing shall not be granted again under any circumstances. The candidates who have passed either group of the Intermediate/Final examination under the old syllabus, may claim the paperwise exemption in the corresponding subject(s) of new syllabus indicating the basis of exemption as “APO” in the appropriate column of the enrolment application. In case the paperwise exemption has already been granted on the basis of qualification or the candidates is eligible for grant of exemption on the basis of securing 60% or more marks, a photocopy of the letter/marks-sheet issued by the Institute should be enclosed with the enrolment application while claiming such exemption, failing which the same may not be granted for the ensuing examination. No exemption fee is payable for availing paperwise exemption on the basis of “APO” or on the basis of securing 60% or more marks in the Institute’s examination. Paperwise exemption fee is payable only when the exemption is to be availed on the basis of qualification(s) specified for the purpose.
At times queries are received by the Institute from the students with regard to filling up of examination forms for want of issue of coaching completion certificate. It is clarified that students (i) who are undergoing oral coaching, and (ii) students who have submitted or re-submitted their response sheets and/or would be submitting or re-submitting the response sheets within the stipulated period, are eligible to fill up the examination forms for the respective session of examination Such students need not withhold the submission of their enrolment application for want of coaching completion certificates. The students concerned are advised to make a note in the application form to the effect that they are undergoing oral coaching/have submitted response sheets and are awaiting coaching completion certificates. Since there cannot be any change with regard to the closing date for submission of examination forms, students
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need not wait for the issue of coaching completion certificates for filling up their examination forms. They are advised to mention against the appropriate column in the enrolment application form that coaching completion certificates are being awaited. Students who were issued with limited permission letters, for appearing in December, 2005 examination, are advised to submit the deficient response sheets immediately as such students, if failed, will not be allowed to appear in June, 2006 examination, unless they are issued with the regular coaching completion certificate(s) for the group(s) for which limited permission letter was issued. Students who secure 35% or more marks in aggregate and 30% marks in individual paper in a group in December, 2005 examination, are advised to submit photocopy of the marks sheet for the issue of Coaching Completion Certificate, if eligible.
The last date for receipt of response sheets, including resubmission, if any, from the students who wish to be enrolled for the June, 2006 examination is 28.02.2006. Students are advised to send the response sheets to the Institute in a regular flow without waiting for the last date. The last date mentioned above is just an indicator for students who suitably plan their submission. This will not only give the Institute reasonable time to get the response sheets evaluated in time but also an opportunity to the students to resubmit the response sheets in which they have failed to obtain a minimum of forty per cent marks. Students are advised to get acknowledgement from the Institute for the response sheets sent by attaching a self addressed stamped post card. It may be noted that credit is given for the response sheets received in the Institute on or before the stipulated due date, as above. Name of student, registration number, subject, test paper number, number of sheets used and postal address with PIN code number should be written on the title sheets attached with each response sheet. The above information may also be indicated on the first , middle and last pages of each response sheet besides mentioning the Registration Number on each page on the right hand corner on top. It will facilitate early evaluation and return of the evaluated response sheets. It may be noted that no response sheet will be entertained by the Institute in the absence of above information. Accordingly, no credit will be given to students of such response sheets received by the Institute. Students are also advised to write the subject/paper, number of sheets used and examination correctly on the title sheet before sending the response sheets to the Institute. Similarly, relevant title sheets may be appended with them. There are separate title sheets for Foundation, Intermediate and Final course. Even when the response sheets are sent in a bunch, complete particulars are to be given on each title sheet and first, middle and last pages of each response sheet. No cognizance of the response sheets will be taken if the student fail to comply with the above instructions. It is emphasized that separate title sheets are to be attached with each response sheet. Students are aware that the Institute has made arrangements for acceptance of response sheets for Foundation, Intermediate and Final Course in its Regional/Chapter Offices in Ahmedabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Jaipur, Kanpur, Mumbai, Madurai and Pune. Students located in and around these cities are advised to contact and submit their response sheets in the respective Regional/Chapter offices.
While making any correspondence regarding examination, the students are advised to quote the following particulars for taking prompt action :
February 2006
STUDENTS SERVICES i) Name in full (ii) Student Registration number (iii) Stage of examination (Intermediate/Final) (iv) Group opted (v) Centre opted (vi) Particulars of fee remitted, i.e. Demand Draft (printed) number, date , amount, name of the bank and its branch (vii) Date and mode of despatch of enrolment application and their complete address with PIN code, telephone number, mobile number or e-mail address. In case of any specific problem/complaint regarding registration, post-registration, students services and postal/oral coaching, students may contact personally or write to Sohan Lal, Joint Director and for academic guidance and suggestions, if any, students may write to V K Aggarwal, Principal Director, at the Institute’s address.
A TTENTION STUDENTS ATTENTION
1. (a) Last date for receipt of Examination 27.03.2006* application in the Institute (b) With a late fee of Rs. 100 10.04.2006 (09.04.2006 being a holiday) 2. Examination fees Foundation Rs.500 (Lumpsum) Intermediate Rs.400 (Per group) Final Rs.300 (Per group) 3. Last date for seeking paperwise 27.03.2006* exemption 4. Last date for seeking extension of 27.03.2006* registration/registration de-novo *(25 & 26-03-2006 being holidays)
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Notes :
I. II.
III. IV. V. VI. VII.
Examination fee is payable on groupwise and not on paperwise basis for intermediate/Final examinations as above. The students who have submitted/ would be submitting all the response sheets within the stipulated time, may submit their enrolment applications for appearing in the examination pending issue/receipt of the coaching completion certificates. But coaching completion certificate would be issued only when they have successfully completed the coaching for the group(s) concerned. Please note that unsigned, incomplete and applications not filled in their own handwriting by the students will not be accepted. No change of group(s) will be allowed after submission of the enrolment application. No request for change of medium for writing the examination will be entertained after submission of the enrolment application. No cutting and over writing is to be done in the examination form. No request for grant/cancellation of paperwise exemption shall be entertained after the last date i.e. 25th March/25th September for June/December examination respectively.
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VIII. No request / correspondence for withdrawal of application from appearing in the examination or adjustment of amount for the next examination shall be entertained after submission of the examination form under any circumstances.
Students are, therefore, once again advised to fill in the new and revised enrolment applications/examination forms ‘EXA’ carefully to avoid last moment problem for themselves as well as for the Institute. IX. All the students appearing in the examination are required to
Student Company Secretary
enclose the photocopies of the following documents with their enrolment application forms : 1. Letter granting the paperwise exemption (wherever paperwise exemption has been granted on the basis of qualification) 2. Marks-sheet for availing paperwise exemption on the basis of securing 60% or more marks in the earlier examination of the Institute. 3. Original letter issued by the Institute showing the credit balance, if any, for adjustment towards the examination fee. 4. Coaching Completion Certificate, if already issued from the Institute. 5. It is again emphasised that students who have already been granted exemption in any paper included in the group for which the enrolment has been sought, must indicate in the appropriate column of the enrolment application and enclose a photocopy of the letter issued by the Institute granting such exemption. Similarly, in those cases where the student has applied for exemption for the first time, the same must also be indicated in the appropriate column of the enrolment application form along with the attested photocopies of the relevant marks sheets and the exemption fee. 6. In case, student is interested in cancellation of exemption which has already been granted to him, a separate request should be made for the same along with the enrolment application. Please note that once paperwise exemption is cancelled, it shall not be restored/reviewed under any circumstances. 7. No exemption fee is payable for availing of paperwise exemption on the basis of “APO” (already passed under old syllabus) or securing 60% or more marks in the Institute’s examination. Mode of Payment : All fees and other dues payable to the Institute may be remitted only by crossed demand draft drawn in favour of “The Institute of Company Secretaries of India”, payable at New Delhi. Students Identity Card : All the candidates appearing in the Company Secretaries Examination are advised to timely complete necessary formalities for obtaining their identity cards duly countersigned by the issuing authority of the Institute as per instructions published in the prospectus "Career in Company Secretaryship – A Handbook”.
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Applicants must affix/paste their latest photograph in the application form Applicants are also required to mention their particulars, viz., name, student registration no., examination application no. , stage of examination, group and examination centre on the reverse of the Demand Draft to be sent along with the application form towards examination fee. In cases involving adjustment of credit amount, the original documents in support of the contention showing the exact credit amount is to be attached with the application. Please enclose only relevant documents for availing exemption, etc. All enclosures should be stapled in one bunch and clipped with the application. Please mention registration no., name, centre, stage, group and application form no. on the first page of the bunch. Students need not hesitate to seek any further information/ clarification/assistance with regard to the above from either of the following: Sohan Lal, Joint Director (Students Services) Tele : 24602622(D)/41504444 (Extn. 511) E-Mail :
[email protected]
February 2006
STUDENTS SERVICES
Results of the Foundation Course, Intermediate and Final examinations of the ‘company secretaries’ held in December, 2005 are scheduled to be declared at 4.00 P.M. on Saturday, the 25th February, 2006. As in the past, the results will be displayed simultaneously on the Notice Boards at the Institute’s Headquarters, Offices of the Regional Councils and Chapters, and Examination Centres. The results along with break-up of subjectwise marks will also be available on Institute’s Website www.icsi.edu on 25th February, 2006 after 4.00 P.M. The result-cum-marks statements will be despatched to all candidates latest by 03rd March, 2006. Meanwhile, if there has been any change in the mailing address of a candidate, he/she should immediately intimate the same enclosing a self-addressed envelope of 23 cms. x 11 cms. size for posting his/her result-cum-marks statement at the changed address. Further, any candidate who does not receive his/her result-cum-marks statement by 13th March, 2006, should immediately write to the Sr. Director (Exams.) for issuing duplicate marks statement giving relevant particulars, i.e., his/her name, student registration number, stage of examination and group(s) in which he/she appeared, roll number, examination centre along with a self-addressed stamped envelope worth Rs.5/-.
The Institute would be issuing Admission Certificate carrying the scanned photograph and signature of the examinees for appearing in June, 2006 session of examination. The candidates interested to appear in June, 2006 session of examination are necessarily required to fill up the new and revised enrolment application form ‘EXA’ which has been specifically designed taking in to account the state of art technology. The new examination forms would be available with the Institute. The students concerned may obtain the requisite application form by sending a crossed demand draft of Rs.30/-(including postage). These forms can also be obtained from the Regional Councils and Chapters on cash payment of Rs. 20/-. Students may please note that the photo copies of the examination forms will not be accepted by the Institute. The following precautions are to be taken by the students while filling up the new form: The instructions, guidelines and code list printed in the form must be carefully gone through before filling up the form The applications are to be filled up by the applicants themselves with the help of black ballpoint pen There should not be any corrections/cuttings/over-writings in the form All information and particulars are to be given in the boxes/ space earmarked for the purpose Handwriting must be legible and all entries are to be filled up in capital letters. While every care would be taken by the Institute in processing the examination forms through the scanning system and the students would be advised if there is any short -comings in the application forms, it is imperative that the students would also make sure that they have filled up the examination form, correctly.
Queries are often being received by the Institute with regard to the option of medium for pursuing the Company Secretaryship Course. It is clarified that the students may opt for pursuing the course in English/Hindi medium. However, the study material at present is available in English medium only. In any case, the students can enjoy the facility of submitting their response sheets to the test papers under the Postal Tuition Scheme in English or Hindi medium. Similarly, they can opt to write the Institute’s main examination in English or Hindi Medium. As regards writing of examination, the option is to be exercised while filling up the examination form as and when the students intend to appear in the examination. This option is to be exercised on group wise basis and not on individual basis. Answering to test papers and writing examination partly in English and partly in Hindi medium is not permissible.
Next examination for the Foundation Course, Intermediate and Final, scheduled in June, 2006, will be held from Friday, the 02nd June, 2006 to Saturday, the 10th June, 2006, as per the Time-Table and Programme published on the back inside cover page of this issue. The last date for receipt of enrolment application for June, 2006 examinations in the Institute together with the requisite examination fee is 27th March, 2006 (25 th ,and 26 th March, 2006 being holidays) and with late fee of Rs.100/- upto 10th April, 2006. (9 th April, 2006 being holiday). Important : Candidates should note that non-receipt/delayed receipt of result-cum-marks statement, response to result queries, verification of marks, etc., will not be accepted as valid and sufficient reason for seeking any relaxation or not complying with the requirements of regulations and/or last dates for submission of enrolment applications for the next examinations. Therefore, the candidates in their own interest are timely advised to keep track of important announcements, last dates and observe the time schedule.
E-MAIL ADDRESS OF THE STUDENTS Those students who are having e-mail address may communicate the same to the Students Services Section at
[email protected] which will facilitate quick and economic communication from the Institute’s side. The e-mail address may be sent in the following format. Name : _______________________________ Registration No. : _______________________________ E-mail Address : _______________________________
Student Company Secretary
In terms of regulation 46 (2) of The Company Secretaries Regulations, 1982, as in force, a candidate can seek ‘Verification of Marks’ in any subject(s) of December, 2005 examination within one month from the date of declaration of results. The application for verification of marks should be made on a plain paper, in candidate’s own handwriting together with requisite fee @ Rs.100/- per subject within 30 days from the date of declaration of results, i.e., upto 27th March, 2006 (25 th and 26 th March, 2006 being holidays) . Candidates are advised not to club any other query/matter or remittance along with request for verification of marks to facilitate an early reply. After completion of verification process, candidates are communicated outcome of the verification of marks, normally within 2-3 weeks’ time. However, if a candidate does not receive any communication by 20th April, 2006, he/she should write to the Sr. Director (Exams.) giving relevant details – (i) his/her name; (ii) student registration number; (iii) stage of examination and roll number; (iv) name of the subject(s) in which verification of marks was sought; (v) date of application and mode of its despatch; (vi) amount of verification fee and mode of its remittance, viz., Bank Draft No., date of issue of Bank Draft, Name of drawee and drawer bank; and (vii) complete postal address along with PIN Code.
25
February 2006
Candidates are allowed to use Hindi as an optional medium for writing all papers of the Foundation (except the ‘English & Business Communication’ paper), Intermediate and Final examinations on the following conditions: (i) option of Hindi medium for writing the examination is to be exercised for all papers of an examination OR a particular group of examination, and not for any individual paper(s) in the enrolment application form each time for appearing in the examination; (ii) option once exercised is irrevocable for that particular session of examination; (iii) answer books of candidates who write part of papers/answers in one medium and the remaining part in other medium are liable to be cancelled without any notice; (iv) candidates who have exercised option of Hindi Medium in their examination enrolment form for writing Foundation examination and Group-I of Intermediate examination will be provided Question Papers printed both in English and Hindi (except for ‘English & Business Communication’ paper of Foundation examination which will be printed/required to be answered in English only). The Question Papers for Group-II of the Intermediate examination and all papers of Final examinations will be printed/supplied in English only; (v) if a candidate writes his answers in Hindi Medium without exercising such an option in the enrolment application form, he/ she may not be given credit for his/her answers; (vi) candidates opting Hindi Medium for the examination must write HINDI MEDIUM in bold letters on the top of the cover page of Answer Book No.1 and 1B, as the case may be; and (vii) candidates opting Hindi Medium for the examination may, if they so desire, write answers to practical questions, headings quotations, technical and legal terms, sections, rules, etc., in English medium.
The Institute awards “Merit Scholarships” and “Merit-cumMeans Assistance” to students for pursuing Intermediate and Final Courses on the basis of their meritorious performance in the Institute’s examinations and/or merit-cum-need basis on their passing Foundation and Intermediate examinations respectively, as per the criteria stipulated under the “Merit Scholarships (Company Secretaryship Course) Scheme, 1983” and “Merit-cum-Means Assistance (Company Secretaryship Course Scheme), 1983”. In pursuance of para 7 of the “Merit Scholarships (Company Secretaryship Course) Scheme, 1983”, 15 Nos. of scholarships are awarded each for Intermediate and Final examinations per session only to registered students, purely in order of merit, from amongst the candidates who appeared and passed in all the subjects of their respective examination, at first attempt, in one sitting, without claiming exemption in any subject, on all-India basis and subject to fulfilling other terms and conditions as stipulated in the said scheme. Accordingly, students who pass the Foundation examination, December, 2005 and wish to be considered for award of Merit Scholarships should get themselves registered with the Institute for pursuing Intermediate Course within 3 months from the date of declaration of results to become eligible for award of Scholarship. In pursuance of para 8 of the “Merit-cum-Means Assistance (Company Secretaryship Course) Scheme, 1983”, 15 Nos. of financial assistance are awarded each for Intermediate and Final examinations per session, only to registered students. According to the scheme, a candidate has to apply in the prescribed form obtainable from the Institute free of cost, and submit his/her application within a specified date as notified from time to time. Any candidate applying for financial assistance should have passed all papers of the Foundation/Both Groups of Intermediate examination, at first attempt, in one sitting, without claiming exemption in any subject. If the candidate is employed or having an independent source of income, in that case his/ her individual income should not be more than Rs.1,00,000/ - per annum and if he/she is dependent on his/her parents/ guardian/spouse, then the total combined income from all sources should not be more than Rs.1,50,000/- per annum, besides fulfilling other terms and conditions as stipulated in the said scheme. Students who pass the Foundation examination, December, 2005 must get themselves registered with the Institute for pursuing Intermediate Course within thre e months from the date of declaration of results to become eligible for award of this financial assistance. A separate notification inviting applications for award of “Merit-cum-Means Assistance” will be published in th e March/ April and September/October issue of “C.S. Foundation Course Bulletin” and “Student Company Secretary” Bulletin.
Student Company Secretary
26
February 2006
Sl. Region No. Northern Region 1. Intra Infotech Limited 704, 7th Floor, Deepali Building 92, Nehru Place New Delhi-110019
2.
Kampsax India (P) Limited 809, Phase-V, Udyog Vihar Gurgaon-122016, Haryana 3. Panasonic India Private Limited C-52, Phase-II NOIDA-201301 Western Region 4. Radhakrishna Hospitality Services Pvt. Ltd. 6-7, Jyoti Wire House 23A, Shah Industrial Estate Off. Veera Desai Road Andheri (West), Mumbai-400053 5. Lotus India Asseet Management Company Pvt. Ltd. 5th Floor, Khetan Bhavan 198, J.T. Road, Churchgate Mumbai-400020 6. Enercon (India) Limited Kolsite House, Plot No. 31 Shah Industrial Estate Veera Desai Road Andheri (West), Mumbai-400053 7 . Aryaman Financial Services Ltd. 208, Maker Chambers-V 2nd, Floor, Nariman Point Mumbai-400021 8. ISMT Limited Lunkad Towers, Viman Nagar Pune-411014 9. Lazard India Private Limited 20th Floor, Express Towers Nariman Point Mumbai-400021 Eastern Region 10. Ashika Stock Broking Ltd. "Trinity", 226/1, A.J.C. Bose Roa d 7th, Floor, Kolkata-700020 11. Apeejay Securities Pvt. Ltd. Apeejay House 15, Park Street Kolkata-700016 12. Tide Water Oil Co. (India) Ltd. Yule House 8, Dr. Rajendra Prasad Sarani Kolkata-700001 Southern Region 13 . Kerala Ayurveda Pharmacy Ltd. Athani-683585 Aluva, Kerala
14. TNT India Private Limited 82/1, Richmond Road Bangalore-560025
Training Period
15 Months Train ing
Stipend (Rs.)
1.
Suitable 2.
15 Months Training
Suitable
15 Months Training
25003000
3.
4. 15 Months Training
Suitable 5.
15 Months Training
750010000
03 Months Practical Training
Suitable
6.
M. RAMA KRISHNA 301, Akshya Apts 8-3-841, Yellareddyguda HYDERABAD-500073 K.G. MOHAN 'Sreyas', Thekkumbhagom Tripunithura, Ernakulam Distt. KERALA-682301 ANSHUL JAIN 103A, Shyam Anukampa 0-11, Ashok Marg C Scheme,JAIPUR-302001 S. VENKITARAMAN C/o Singhania & Partner B-92, 9th Floor, Himalaya House 23 K.G. Marg, NEW DELHI-110001 REKHA N AMBAWAT 452-A, J.S.S. Road, Shanti Sadan Opp. Dr. Vighas Street, 2 nd Floor Flat No. 202, Chira Bazar Road MUMBAI-400002 NITIN KOCHHAR X-26 (Basement) Hauz Khas NEW DELHI -110016
PCSA-1318
PCSA-1319
PCSA-1320
PCSA-1321
PCSA-1322
PCSA-1323
ATTENTION STUDENTS!
15 Months Training
Suit able
15 and 03 Months Practical Training 15 Months Training
30005000
Students writing answers to response sheets for the Test Papers 1/2006 to 5/2006 of paper Direct and Indirect Taxation – Law and Practice of Final course may please note that in Part A of all test papers, they are required to write answer to Question No. 1, which is compulsory and any one Question from the rest of the two Questions i.e., either Question No. 2 or Question No. 3 respectively.
ATTENTION!
The telephone number 51504444 of the ICSI Headquarters has been changed and the new number is 41504444.
Suitable
15 Months Training
35005000
15 Months Training
Suitable
PRIZE QUERY A proprietary concern in India is rendering professional services to a company abroad. The foreign company desires to allot shares in it in lieu of the fees payable to the proprietary concern for professional services rendered. Can this proprietary concern accept the allotment of shares?
CONDITIONS 15 Months Training
2500
03 Months Practical Training 15 Months Training
Suit able
Student Company Secretary
1. Answer should not exceed one page typed in double space. The answer sheet should contain the name, registration number and address of the student. 2. Last date for receipt of answer is 16 th March, 2006 . 3. Two prizes (a first and a second) in kind will be awarded to the best answers and the names of the contributors will be published in the Bulletin. 4. The envelope should be superscribedStudents Query , February 2006 and addressed by name to N.K. Jain, Secretary & Chief Executive Officer , The Institute of Company Secretaries of India, ‘ICSI House’, 22, Institutional Area, Lodi Road, New Delhi-110003.
60008000
27
February 2006
QUIZ - PRIZE WINNERS QUIZ - P RIZE WINNERS May 2004 QUERY Section 11A of the Central Excise Act, 1944 was amended retrospectively. Is such a retrospective amendment Valid? WINNERS First Prize : None eligible Second Prize : (Joint Winners)
A. Vishnu Priya (Regn. No. SRO258027/02/03), D/o Narayan, A Opp. Gandhi Nagar Park, Darji Eranna Compund, Gandhi Nagar, Bellary-583103, Karnataka R. Pattu Rathi, (SRO 246083/09/2002), 5/286, Annai Indhira Nagar, 1st Street, Tuticorin 628002, Tamilnadu ANSWERS Second Prize [1] Introduction : Amendments are inserted in an Act in order to cover certtain loopholes of that particular section and to achieve the objectives of the Act & to cover new area of activity. Like wise Sec. 11A of Central Excise, Act, 1944 was amended retrospectively in order to achieve the object of recovering the non-levied or paid, short levied or paid, or erroneously refunded excise duty, even if department had approved, accepted or assessed value or rate of duty & in order to make good the wrongly assessed excise duty due to any reasons where the excise officer is of opinion that the duty paid is not correct due to difference in valuation, classification or rate of duty. Amendment inserted by the Finance Act, 2000, with retrospective effect from 17.11.1980 in section 11A of the Central Excise Act, 1944.
[Whether or not such non-levy or non-payment, short levy or short payament or erroneous refund, as the case may be, was on the basis of any approval, acceptance or assesment relating to the rate of duty on or valuation or excisable goods under any other provisions of this Act or the rule made there under.] Case wherhe loophole was covered by inserting amendment with retrospective effect. In the case of SAIL (Steel Authority of India Limited) of Durgapur (M.P.), the SAIL had been paying the excise duty in the previous period at a rate of 15% (assumed figure) as stated by the Commissioner was transferred & a new Commissioner was placed, he was of the opinion that the SAIL should actually pay the excise duty at the rate of 20% (assumed figure) where it was paid only 15% (assumed figure). The opinion of new Commissioner was challeged by SAIL where the court held that SAIL is not bound to pay the amount specified by the new Commissioner. The Finance Act, 2000 inserted amendment with retrospective effective from 17.11.1980 whereby the SAIL was bound to pay the duty specified by the new Commissioner even though the court's decision was in SAIL's favor. Thus the loophole was covered by giving retrospective effect to the amendment made by which the person shall be served with the notice to show cause even if department had approved, accepted or assessed value or rate of duty paid by him during previous period. Constitutional validity : It even has the constitutional validity to make the Act, insert amendments. Conclusion : Therefore, the amendment with retrospective effect of Section 11A of Central Excise Act, 1944 is valid, (1) in order to recover the non-levied or not paid or short levied or short paid or erroneously refunded excise duty during the previous period. (2) to make good the wrongly assessed excise duty. (3) to achieve the objectives of the Act.
Student Company Secretary
28
[2] The given question "Is a retrospective Amendment valid under Section 11A of the Central Excise Act 1944 (Recovery of duties not levied or not paid or short levied or short paid or erroneously refunded) was raised in a decided case namely Easland Combines v. Collector of Central Excise 2003(1) reported in Student Company Secretary, May 2003. Facts : The Central Excise Act, 1944 amended Section 11A with retrospective effect. In Collector of Central Excise v. Cotspun Ltd : 1999 (113) the Supreme Court considered two of its earlier decisions in Rainbow Industries (P) Ltd v. Collector of Central Excise 1994 6 SSC 563 and Ballarpur Industries Ltd v. Assistant Collector of Customs and Central Excise (1995) Supp. 3 SSC 429. The conflicting decisions of these two cased made the Parliament to amend Section 11A of the Act of fill in the lacuna pointed out by the Supreme Court interpreting rule 10 as it existed. Certain actions under Section 11A of the Act was validated with retrospective from 17.11.1980 (i.e. the day on which Section 11A was introduced in the Act) stating that it was necessary to overcome certain judicial pronouncements. Decision : Rejecting the contents the Supreme Court held that the amendment had changed the entire basis of the judgement in Cotspun's case. Also the differential duty could not be recovered on the ground that it was a short levey and Rule 10 then would have no application.
By giving retrospective effect to Section 11A the legislature had empowered the Cental Excise Officer to set at naught the erroneous approval of assessment order and the concerned office could issue notices in respect of all proceedings pending with the department till then. The conditions on which the judgement in Cotspun were based, were altered fundamentally. Hence the amended section 11A was invalid because the levey of Excise Duty on the basis of the approved assessment order being the correct levy it cannot be accepted.
November 2004 QUERY BC Limited a manufacturer of excisable goods produced also waste in the course of manufacture of the excisable goods. The revenue levied excise duty on the waste also. Will this stand to legal scrutiny? WINNERS First Prize :
Ajay Trimbak Kokate (Regn. No. WRO367185/07/2004), A/102, Suryadarshan Soc., Murbad Road, Kalyan (W) 421301 Dist Thane. Second Prize :
Maanas Srivastava (Regn. No. CGO317236), 124/141 Block-C, Govind Nagar, Kanpur 208006. ANSWERS First Prize Opinion : Excise duty is levied on the goods manufactured which are specified in the schedules of the central excise, which are marketable. If goods are not marketable they are not chargeable to Excise even though they are specified in the Schedule as per Bhor Indutries Ltd v. C.C.EX.
The Long Legal battle on the dutiability of waste and scrap was settled by the Supreme Court by its decision in Khandelwal Metal & Engineering Works v. U.O.I by holding that not withstanding that process waste and scrap arose as intermediate products or byproducts out of final products, nevertheless such process waste and scrap, if marketable, would be chargeable to duty in view of the incorporation of the specific sub-headings in various chapters of the
February 2006
QUIZ - PRIZE WINNERS revised Traiff. The apex court held that process waste and scrap was a commerically distinct and identifiable product and has commerical value. Hence, such waste and scrap were chargeable to duty, if covered in the Traiff. Hence the position as it currently stands is that all process waste and scrap, if incorporated in the tariff and if marketable, would be chargeable to duty. However, the Supreme Court in Indian Aluminium Co. Ltd.'s case has held that refuse, ashes and rubbish are different from waste and scrap and though they may fetch a value, they are not marketable and hence not excisable goods. In that case, Aluminium dross was considered to be a refuse. Following the decision in Khandelwal’s case, the tribunal, in Tata Iron & Steel Co. Ltd v. CCE , has held that a waste product is excisable if classified under the central excise tariff. In CCE v. Oswal Vanaspati & Allied Industries , it was held that spent earth is excisable goods in the fact it is classifiable under a particular subheading of the Central Excise Tariff. It is important to note here that as the excise duty is on the manufacture, the waste and scrap actually generated in the course of manufacture alone is chargeable to duty and the waste and scrap generated without any process is not liable to excise duty. For example Resin packed in drums was purchased as input by a factory and Modvat credit availed. After emptying the drums, they are collected and sold as waste/scrap without payment of duty. Merely emptying drums/barrels of its contents will not amount to manufacture as no new commercially different product has emerged. In this case of BC Limited the issue is of dutiability of waste. Here BC Limited can make an appeal if waste generated is not different from refuse, ashes, rubbish as decided by Supreme Court in UOl v. Aluminium Co. Ltd . Second Prize Central Excise Act, 1944 does not contain any specific provisions with respect to levy of excise duty on waste and scrap. Section 3 is
the charging Section of Central Excise Act, 1944 which imposes duty on excisable goods manufactured or produced in India. As waste and scrap are not manufactured but arise as a result of manufacture or final product, therefore, generally there should not be levied any tax on waste and scrap. For clear position reference has to be given to some case laws. In case of Modi Rubber Ltd ., it was held that even though the waste was capable of fetching some amount of sale it would not be chargeable to excise duty. Later on in Asiatic oxygen Ltd . v. CCE , it was held that question as to whether waste would be charged to duty or not would depend upon:
Whether a process of manufacture has taken place.
Whether the waste generated is marketable.
However, when the new tariff was introduced in 1985, individual subheadings were incorporated under the relevant chapters, in order to charge excise on waste and scraps. For example, under Chapter 39 relating to plastics, entry 39 - 15 specifies waste and’ scrap of plastic goods’. In Khendelwal Metal and Engg. Works v. UOI the Supreme Court held that notwithstanding that waste and scrap arose as intermediate product chargeability to duty would arise if it was marketable. The scrap would be liable to duty if it is known in commercial parlance by that name and has an established market. In Greysham v. CCE , it was held that waste and scrap of steel arising during manufacture is dutiable, as it is marketable and specifically mentioned in tariff. The waste and scrap will not be 'excisable goods’ unless they are specified in Central Excise and Tariff Act,1985. Hence, every waste and scrap that is sold is not necessarily a marketable commodity as known to commerce and which it may be worthwhile to trade in. Thus dross and skimming arising during manufacture of Aluminum is not excisable goods. Therefore, in the light of above the waste, which is produced by BC LIMITED, is only taxable if it is marketable and excisable i.e. mentioned in Central Excise and Tariff Act,1985 (CETA).
Attention Students!
SUBSCRIPTION TO CHAR TERED CHARTERED ARY SECRET AR Y Students may perhaps be aware that the Institute has been bringing out a monthly journal Chartered Secretary for corporate professionals for the last over thirty-five years. The journal is rated to be one of the best professional journals consistently maintaining high standards in providing Government notifications, legal decisions and analytical and informative articles. The journal is not only important for corporate professionals, members of the Institute and lawyers but is equally important for students for keeping them well informed about the latest changes and developments.This in turn will not only help the students to write their examinations well but will also help them to step into the professional world with confidence. The “Legal World” section provides all the latest and important cases, the “From the Government” column provides changes/ amendments in various statutes/Laws/Rules etc. and the “Articles” section provides informative and analytical articles on contemporary topics. The annual subscription of the journal is Rs. 500/-for members whereas the same is supplied at a concessional annual subscription of Rs. 300/- to the Registered Students of the Institute. It is in the interest of the students to subscribe to the Journal. Students interested in receiving the monthly journal ‘Chartered Secretary’ may send a Demand Draft favouring the Institute of Company Secretaries of India for an amount of Rupees 300/- and forward the same to :
Joint Director (Publications) The Institute of Company Secretaries of India 22, Institutional Area, Lodi Road, New Delhi-110003.
Student Company Secretary
29
February 2006
STATUS OF TRAINING (Period from 01-01-2006 to 31-01-2006) 15 Months Training with Company/Company Secretary in Practice and 03 Months & 15 days Practical Training STAGE-I Biodata of the students sent to the companies/company secretaries in practice for consideration
STAGE-II Students sponsored for training
APPLICATIONS
CASES
Pending as on 31.12.05
Received during the month
Forwarded for consideration (upto 31.01.06)
Pending as on 31.01.06
Pending as on 31.12.05
Received during the month
No. of students who have been actually taken for training (upto 31.01.06)
15 Months in Companies
NIL
33
18
15
NIL
38
24
14
15 Months with CS in Practice
NIL
4
4
NIL
NIL
15
15
NIL
NIL
47
47
NIL
Training Type
3 Months in Company/ 15 Days in Optional Area 2. Exemption 1. Number 2. Number 3. Number 4. Number
of of of of
applications pending as on 31.12.2005 applications received for exemption exemptions granted pending applications as on 31.01.2006
: : : :
Pending as on 31.01.06
NIL 24 24 NIL
SCHEDULE OF TRAINING ORIENTATION PROGRAMMES (TOP) Organised by
EIRC of the ICSI NIRC of the ICSI
Date
04.04.2006 to 08.04.2006 27.03.2006 to 31.03.2006
Chandiga rh Chapter of NIRC of the ICSI Jaipur Chapter of NIRC of the ICSI Kanpur Chapter of NIRC of the ICSI SIRC of the ICSI
21.05. 2006 to 25.05.2006 22.03.2006 to 26.03.2006 11.03.2006 to 15.03.2006 14.03.2006 to 18.03.2006 Hyderabad 07.03.2006 Chapter of SIRC to of the ICSI 11.03.2006 Bang alore 06 .03.200 6 Chapter of SIRC to of the ICSI 10.03.2006
Venue of the Programme
Contact Address
EIRO Premises
Executive Officer, EIRO of the ICSI, ICSI-EIRC Bldg., 3-A, Ahiripukur 1st Lane, Near Beck Bagan Nursing Home, Kolkata-700019 ❏ Tel. : 22832973/ 22816541❏ Fax No. : 033-22816542 ❏ E-mail :
[email protected] Executive Officer, NIRC of the ICSI, ICSI-NIRC Bldg., Plot No. 4, Prasad Nagar Institutional Area, Rajendra Place, New Delhi-110005 ❏ Tel. : 25763090/ 25767190❏ Fax No. : 25722662 (Code No. 011) ❏ E-mail :
[email protected],
[email protected] Secretar y, Chandigarh Chapter of NIRC of the ICSI, GGDSD College, Sector32C, Chandigarh-160047❏ Tel. : 0172-2661840
NIRO Premises
To b e announced
Chapter Premises
Kanpur Chapter Premises
SIRC Premises Chapter Premises
Chapter P remises
Executive Officer, Jaipur Chapter of NIRC of the ICSI, A-5/A, Institutional Area, Jhalana Doongri, Jaipur-302004 ❏ Tel. : 0141-2707236/2707736❏ E-mail :
[email protected] The Chairman, Kanpur Chapter of NIRC of the ICSI, 118/90, Gumti Plaza, Kaushalpuri, Gumti No. 5, Kanpur-208012 ❏ Tel. : 0512-2296535 ❏ Fax : 0512-2212767 ❏ E-mail :
[email protected] &
[email protected] Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam, Chennai-600035 ❏ Tel. :044-28279898/28268685 ❏ Fax No. : 044-28268685 E-mail :
[email protected]/
[email protected] P rog ra mm e C o- or di na to r, Hy de ra ba d C ha pt er of SI RC of th e I CS I, 6-3-609/5, Anand Nagar Colony, Khairatabad, Hyderabad-500004❏ Tel. : 23399541/23396494 ❏ Fax No. : 040-23325458 ❏ E-mail :
[email protected] Executive Officer, Bangalore Chapter of SIRC of the ICSI, Sher iff Chambers, 3rd Floor, Rear Block, 14, Cunningham Road, Bangalore - 560052 ❏ Tel. : 080-22286574/22287158 ❏ Fax No. : 22261861 ❏ E-mail :
[email protected],
[email protected]
The schedule of other TOPs proposed to be organized during 2006 is as under : SIRC : 04.09.2006 to 08.09.2006 Bangalore Chapter : 04.09.2006 to 08.09.2006
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February 2006
SMTP ORGANISED BY H.Q./REGIONAL COUNCILS/CHAPTERS ELIGIBILITY OF PARTICIPANTS : ICSI Final passed candidates. SMTP COURSE CONTENTS: Module I-Filling and Filing of Forms under the Companies Act, 1956. Module II-Practical and Procedural Aspects of Convening and Conducting Board Meetings & Annual General Meetings and Related Aspects. Module III-Managing Public Issues. Module IV-Loan Documentation, Joint Ventures & Foreign Collaborations, Raising Finance through EURO Issues and Export & Import Procedures and Documentation. Module V-Practical and Procedural Aspects relating to Appearance before CLB/Under SICA, Consumer Protection Act and Case Studies in RTP/UTP. In addition, the participants would be exposed to case studies and mock board/general meeting, etc. Organised by
Dates & Duration
Venue of Programme
NIRC of the ICSI
03.03.2006 to 18.03.2006
NIRC Premises
Chand igarh Chapter of NIRC of the ICSI Jaipur Chapter of NIRC of the ICSI SIRC of the ICSI
To be announced
Ban galore Chapter of SIRC of the ICSI
30 .04.2006 to 14.05.2006 01.03.2006 to 18.03.2006 08.03.2006 to 24.03.2006 1 3.03.2 006 to 29.03.2006
Hyderabad Chapter of SIRC of the ICSI
13.03.2006 to 29.03.2006
Chapter Premises
WIRC of the ICSI
10.03.2006 to 26.03.2006
CCRT of the ICSI
18.03.2006 to 02.04.2006 (Residential SMTP)
ICSI-CCRT Plot No. 101, Sector 15 Institutional Area CBD Belapur Navi Mumbai-400614 ICSI-CCRT Plot No. 101, Sector 15 Institutional Area CBD Belapur Navi Mumbai-400614
Contact Address
Executive Officer, NIRC of the ICSI, ICSI-NIRC Bldg., Plot No. 4, Prasad Nagar Institutional Area, Rajendra Place, New Delhi-110005 ❏ Tel. : 25763090/ 25767190❏ Fax No. : 25722662 (Code No. 011) ❏ E-mail :
[email protected],
[email protected] Secretar y, Chandigarh Chapter of NIRC of the ICSI, GGDSD College, Sector32C, Chandigarh-160047❏ Tel. : 0172-2661840
Chapter Premises
SIRC Premises
Chapter Premises
Executive Officer, Jaipur Chapter of NIRC of the ICSI, A-5/A, Institutional Area, Jhalana Doongri, Jaipur-302004 ❏ Tel. : 0141-2707236/2707736❏ E-mail :
[email protected] Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam, Chennai-600035 ❏ Tel. :044-28279898/28268685 ❏ Fax No. : 044-28268685 E-mail :
[email protected]/
[email protected] Executive Officer, Bangalore Chapter of SIRC of the ICSI, Sheriff Chambers, 3rd Floor, Rear Block, 14, Cunningham Road, Bangalore - 560052 ❏ Tel. : 080-22286574/22287158 ❏ Fax No. : 22261861 ❏ E-mail :
[email protected],
[email protected] Programme Co-ordinator, Hyderabad Chapter of SIRC of the ICSI, 6-3-609/5, Anand Nagar Colony, Khairatabad, Hyderabad-500004❏ Tel. : 23399541/23396494 ❏ Fax No. : 040-23325458 ❏ E-mail :
[email protected] Joint Director, WIRO of the ICSI, 13 Jolly Maker Chambers No. 2, First Floor, Nariman Point, Mumbai-400021❏ Tel.:22047580/22021826/22844073/ 22047569❏ Fax No. : 022-22850109 ❏ E-mail :
[email protected]/
[email protected]
Programme Co-ordinator, SMTP, CCRT of the ICSI, Plot No. 101, Sector-15 Institutional Area, CBD Belapur, Navi Mumbai-400614 ❏ Tel. : 27577814-16 (STD Code : 022) ❏ Fax No. : 022-27574384❏ E-mail :
[email protected]
The schedule of other SMTPs proposed to be organised by NIRC, SIRC & Bangalore Chapter during 2006 is as under : NIRC : (1) 26.04.2006 to 12.05.2006 (2) 30.05.2006 to 15.06.2006 (3) 01.07.2006 to 19.07.2006 (4) 01.08.2006 to 19.08.2006 (5) 04.09.2006 to 20.09.2006 SIRC : (1) 26.07.2006 to 11.08.2006 (2) 12.09.2006 to 28.09.2006 Bangalore Chapter : 11.09.2006 to 27.09.2006
SCHEDULE OF ACADEMIC DEVELOPMENT PROGRAMMES (ADP) Every student of the Institute who has been sponsored for 15 months training with effect from 01.0 7.2004 either in a company or under a Company Secretary in Practice is compulsorily required to attend and complet e 25 Hours Academic Development Programmes (ADP). The duration of each ADP would be eight hours and those who have attended three such programmes would be deemed to have attended 25 Hours ADP. Fee Rs. 250/- per participant per ADP. The Schedule of ADPs proposed to be organized by Regional Councils/Chapter is as under : Organised by
Day & Date
NIRC of the ICSI
15.04.2006
Venue of the Programme NIRO Premises
SIRC of the ICSI
29.04.2006
SIRO Premises
Hyderabad 09.04.2006 Chapter of SIRC of the ICSI
Chapter Premises
Student Company Secretary
Contact Address
E xec ut ive O ff ic er, NI RC of th e I CS I, IC SI -N IR C B ld g. , P lo t N o. 4 , P ra sad Nagar Institutional Area, Rajendra Place, New Delhi-110005 ❏ Tel. : 25763090/ 25767190❏ Fax No. : 25722662 (Code No. 011) ❏ E-mail :
[email protected]/icsi@et h.net Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam, Chennai-600035 ❏ Tel. :044-28279898/28268685 ❏ Fax No. : 044-28268685 E-mail :
[email protected]/
[email protected] Programme Co-ordinator, Hyderabad Chapter of SIRC of the ICSI, 6-3-609/5, Anand Nagar Colony, Khairatabad, Hyderabad-500004❏ Tel. : 23399541/ 23396494 ❏ Fax No. : 040-23325458 ❏ E-mail :
[email protected]
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February 2006
NEWS AND A NNOUNCEMENTS
From 16.1.2006 to 20.1.2006 the Regional Council conducted its 12 th Training Orientation Programme. The programme was inaugurated by S. Gangopadhyay, Past President, The ICSI. Santosh Kumar Agarwala, Chairman, TEFC of EIRC in his welcome address stated that by virtue of statutory provisions the company secretaries get the unique opportunity to interact with the Board of Directors of a company. He said that before a student commences training he should be able to appreciate the corporate culture and need an attitudinal transformation from being a student to a professional. The programme is supposed to groom them accordingly. He advised the students to keep themselves abreast with latest amendments to be able to meet professional challenges. He narrated some experiences of his early days in the profession to boost the morale of the participants. Rajesh Poddar, the then Vice Chairman in his address emphasised the need for training for building a sound professional. He advised the students to take note of what will be taught and to interact with the faculties to clear their doubts during the programme. He also advised the participants to study them carefully and preserve it for future life. He was hopeful that inputs provided in such orientation would definitely help a lot. S. Gangopadhyay while addressing the participants stated that the CS curriculum is able to build a solid backbone of knowledge in the students, what is required to give a final touch in the making of a professional is the training. Practice makes a man perfect. He said that pleasing personality and right professional attitude is the need of the hour. He urged the participants to utilize the TOP platform to equip themselves for their forthcoming training days. Every professional must have undergone training to be able to learn the practical ways of trade. He also added that the TOP will motivate the students to utilize the training to the fullest and urged upon them to regard their seniors at workplace as Guru and learn from them. He was sure that after attending the training orientation programme the students will be able to think , talk, behave , dress and work like professionals. Subrata Kumar Ray, the then Secretary, EIRC spoke about the concept of TOP. He advised the students to be humble enough to accept their ignorance and learn while undergoing training. At the valedictory session of the Training Orientation Programme held on 20.1.2006 Subrata Kumar Ray, Vice Chairman, EIRC said that mere study is not enough, some sharpening of skills is also necessary. He stated that students should be careful in writing correct English. Such orientation programme help the students in this regard and the students should be modest enough to seek knowledge and that there is no shortcut to hard work. Ashok Kumar Parekh, Secretary, EIRC advised the students to inculcate professional attitude right from the beginning. He was of the opinion that such programmes will be of immense help for the students in grooming their right attitude towards working in the industrial houses.
On 31.1.2006, the students of the Chapter visited the local IGNOU Study Centre to watch the nation wide ICSI LIVE panel discussion on GD-II on ‘MCA-21’. During the live panel discussion students of the Chapter raised telephonic queries on the topic, which were clarified by the panelists. U.C. Mishra, Junior Assistant coordinated with the IGNOU center and also accompanied the students to visit the IGNOU studio at Bhubaneswar.
Mahesh Shah, Past President of the ICSI was the chief guest of the valedictory session who apart from the valedictory address also distributed TOP Completion Certificates to the eligible students. He also advised the students to keep themselves updated on day- today basis. B HUBANESWAR C HAPTER
On 31.01.2006, the Chapter organised a career awareness
Student Company Secretary
programme at P.G. Department of Commerce, Utkal University, Bhubaneswar. Prof. R.K. Bal and Prof. J.K. Parida, of the Commerce Department attended the programme. S.S. Sonthalia, Vice Chairman and D.M. Rao, Managing Committee Member of the Chapter addressed the students on the occasion. In his welcome address, Prof. R.K. Bal hoped that all students from the P.G Department of Commerce must have a fair knowledge about the Company Secretary course and its future prospects as one of the pioneering professional courses in India to-day. He lauded the efforts of the ICSI, Bhubaneswar Chapter for bringing awareness among the students on CS course. S.S. Sonthalia, Vice Chairman is his address advised the students to choose CS course as a career option to become a corporate leader. He said that they have come here to apprise the students about the position and the role of a Company Secretary in public sector as well as in the private sector and also as an independent practitioner. D.M. Rao, Member of the Managing Committee explained the students the admission procedure, various fee structure, course contents, syllabus, coaching & library facilities and other programmes conducted by the ICSI on regular basis for the benefit of the students. He advised the students to contact the Chapter office for admission and other procedural aspects. He also informed the students about the construction of new office building of the Chapter, wherein all infrastructural facilities will be created and provided to the students. Multimedia presentation on CS course supplied by the Institute was shown to the students during the programme through LCD projector. Institute's published brochures were also distributed among the students. U.C. Mishra, Chapter Official arranged the entire programme in coordination with the P.G Department of Commerce of Utkal University. Again on 10.01.2006, the Chapter organized a Career Awareness Programme at Banki Autonomous College, Dist: Cuttack, Orissa wherein S.S. Sonthalia and D.M. Rao, addressed the students and the faculty members of the college. Dr. S.K. Pattnaik, Principal & Dr. S.N. Padhi, HOD, Commerce in his welcome address advised the students that the ICSI is a very reputed Institute in India providing company secretaryship course, which is one of the prestigious professions in the country today. They appreciated the efforts of the ICSI, Bhubaneswar Chapter for bringing awareness among the students of different colleges of Orissa, which will definitely help them in planning their future career. While S.S. Sonthalia, spoke about the Institute, role & functions of the Company Secretary, its future prospects & job opportunities, D.M. Rao, spoke about the course curriculum, admission procedure, various fees, training procedure, date of examination and declaration of results, library, system of coaching and other student related facilities being provided by the Institute on regular basis. They advised the students to start the course right from 10+2 level. Institute's published pamphlets explaining CS Foundation and Intermediate Course, Role of Company Secretary and FAQ on Company Secretaries Course were distributed among the participating students and lecturers of the college. U.C. Mishra, Chapter official arranged and co-coordinated the programme.
On 8.12.2005 the Valedictory Function of the 99th SMTP was held
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February 2006
NEWS AND A NNOUNCEMENTS at ICSI-NIRC Building, New Delhi. P.K. Bhalla, Executive Director, Mawana Sugars Ltd. was the chief guest who gave a brilliant piece of advice to the young budding professionals. The academic knowledge is to be put to practice then the success follows. Success demands hard work and patience. It does not come overnight. Communication skill is an important element of success. There is no school to teach that. The Chief Guest also impressed upon the participants that there is huge world of opportunities ahead but there is no bed of roses. One has to strive hard and grab the opportunities. Earlier G.P. Madaan complemented the participants on their successful completion of training. In his opening remarks, he drew the attention of the participants that we are passing through the era of merger/ amalgamation. Those who develop expertise in this field will yield high rewards. Innumerable developments are taking place globally. India, as a part of globalization is making strides in economic progress. Limited Liability Partnership is being introduced. Corporate tax collections have gone up by 25% despite losses by oil majors. All these developments augur well for the Professionals. Satwinder Singh emphasized the need for embracing the change that demands updation. Life is a school of learning. A company secretary is holding a core position and one can climb high if one learns to apply the knowledge. The function concluded with the distribution of certificates to the participants
On 27.12.2005 the 100th SMTP conducted by the Regional Council was inaugurated at ICSI-NIRC Auditorium, New Delhi. Deepak Kukreja in his opening remarks appreciated the efforts made by the participants to reach this last leg of training. He advised them to ex pand their horizon of knowledge by day to day updation. Hitender Mehta in his welcome address apprised the participants of the opportunities and challenges open to the professionals. He also impressed upon the participants that SMTP is a platform to strengthen their professional skill and to provide an opportunity to interact with faculty in their respective fields of expertise. The other area covered by the SMTP is personality development – a sine qua non for personal growth. He urged all the participants to realize and fully utilize entry level statutory recognition. Yogesh Gupta hailed the event of 100th SMTP of NIRC as a memorable one. The experience in SMTP is altogether different from others, rich benefits can be reaped by interacting with the faculty. S Kumar expressed his happiness over conducting of 100th SMTP. He cautioned the participants that the globalization, liberalisation and privatization cast more responsibilities on the professionals. Knowledge comes, no doubt from books, but ready information comes from Senior colleagues of the profession. He strongly urged the participants to make every endeavour to interact with the faculty during the last 15 days of training. S Kumar also gave some tips to the participants. Nesar Ahmad elaborated on the opportunities available to the CS profession especially in the practising area. He also assured that the Institute would make all the efforts to improve the visibility of the profession. India is now being considered as global hub for services. we should be a part of that service sector boom. G P Madaan extended his warm welcome to the participants of 100th SMTP. G P Madaan was full of compliments for the participants. India is on the threshold of economic explosion. The concept of limited partnership, Right to Information Act, the Companies (Amendement) Bill, all augur well for the profession. In conclusion he asserted that there are opportunitie s but one should be able to seize them. Exchange of ideas enhances the abilities. On 28.12.2005 the Regional Council conducted a moot court competition for its students at ICSI-NIRC auditorium, New Delhi. A.K. Soni, Advocate, Supreme Court acted as the judge whereas Shikha Goel and Latika Aggarwal were the student counsels for the petitioners while Aditya Singhal and Aashima were the counsels for the respondents.
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F ARIDABAD C HAPTER
The Chapter in collaboration with DAV Institute of Management Faridabad (Haryana) proposes to conduct Oral Coaching Classes for Foundation and Intermediate Courses of the Institute for June 2006 examinations. For admission and other details contact DAV Institute of Management, NH3, NIT, Faridabad 121005. Co-ordinators : Gaurav Arora-Faridabad Chapter of the ICSI (Mobile : 9891332610); Juhi Kohli – The DAV Institute of Management (Mobile : 9810344129). J AIPUR C HAPTER
On 22.1.2006 the Academic Development Programme conducted by the Chapter was held at its premises. Arunima Bhatanagar speaker of the First session addressed on Listing of Securities and participants were informed about the procedure and rules. In the 2nd session Amrita Khandelwal apprised the participants about IPO through Book Building procedure. In the 3rd session Mayank Sharma informed in detail the skills of making an effective presentation and thereafter a mock group discussion was held.
On 16.1.2006 the refurbished Library of The ICSI – SIRC situated at ICSI-SIRC House, Chennai was inaugurated by R. Ravi, the then President, The ICSI. The well furnished Library with latest books of professional relevance also had two computers exclusively for the use of Library Members which were donated by M/s. Surana & Surana, International Attorneys, Chennai. R. Ravi and R. Sridharan, then Chairman, SIRC also spoke on the occasion. B ANGALORE C HAPTER
On 1.12.2005 and 2.12.2005 the Chapter conducted two different Career Counselling Programmes at Christ College, Bangalore. Over 150 students on the first day and over 200 students on the second day of the 2nd year Pre-University stream attended the programmes. The first programme was addressed by Sangeetha Flora, Executive Officer of the Chapter Office while J. Sundharesan, then Chairman of the Chapter addressed on the second day. The speakers explained in detail the course offered by the Institute and eligibility criteria for the course, examination, requirements of training etc. She also highlighted the importance of making the right career choice so as to be successful in life. She then spoke about the role of a Company Secretary and importance of the profession of Company Secretary in the changing economic scenario. She also highlighted the opportunities available to anyone who has completed a Company Secretaryship course. She further enumerated the emerging areas of practice and the changing role of a Company Secretary. She also focused on what would be the mindset and preparation required from a student who wanted to pursue the Company Secretaryship Course. Brochures containing brief details of the Company Secretaryship Course were distributed to the participants. Sangeetha Flora clarified the various doubts and issues raised by the participants on both the days. C OIMBATORE C HAPTER
On 4.1.2006 the Chapter inaugurated the June 2006 session of Foundation, Intermediate Group-I & Group-II Oral Coaching Classes. G. Vasudevan, G. Balasubramaniam and R. Maheswaran, faculties gave a detailed account of the course contents and training requirements.
February 2006
NEWS AND A NNOUNCEMENTS On 10.1. 2006 the Chapter organized an interactive session with R.Sridharan, then Chairman, SIRC relating to recent developments in the profession. He described new avenues of practice for Company Secretaries and other opportunities available in the wake of economic growth in the country. H YDERABAD C HAPTER
On 28.1.2006 the Chapter organized a Career Awareness Programme for ‘Dharmavaram Handloom Silk Sarees Manufactures & Merchants Sangham Association officials’ at the request of the Association. V.Ahalada Rao, Chapter Chairman welcomed the gathering and explained about the Institute, Company Secretaryship Course, difference between the regular course and professional course, role & importance of the Company Secretary to the corporate world, system of imparting oral coaching, examination pattern etc. through a presentation. KK Rao, Chapter Treasurer explained the functions of Private Companies, Public Companies and Non-profit organisations (Companies under Section 25 of the Companies Act, 1956). He also highlighted the role played by Company Secretaries in Companies. Again during the month of January 2006 the Chapter conducted a number of Career Awareness Programmes which were as under : On 3.1.2006 the Career Awareness Programme was held at Government Degree College for Women. S.Bala Chandra, company secretary addressed the gathering; on 4.1.2006 the programme was held at Kesav Memorial Degree College. V.Ahalada Rao, the then Vice-Chairman of the Chapter addressed the gathering; on 6.1.2006 at Dr.Ambethkar Degree College, AV Syamala , Member, SIRC addressed the gathering; on 7.1.2006 at RK Degree College, Kamareddy for B.A I, II year students, B.Sc I, II & III year students, on 9.1.2006 at Karshak Engineering College V. Ahalada Rao, addressed the gathering, on 16.1.2006 at Government Jr. College, S.Bala Chandra Company Secretary addressed the gathering; on 20.1.2006 at Signodia Degree College, V.Ahalada Rao & Ajay Kishen Company Secretary addressed the gathering; On 24.1.2006 at Ideal Jr. College. V. Ahalada Rao and A. Ravi Shankar, Company Secretary, addressing the gathering; On 25.1.2006 at Agarwal Jr. College for Boys, Radha Krishna Women’s College for 1 year students and at Durgaprasad Banwalarlal Girls Jr. College. Datla Hanumanta Raju, Council Member, the ICSI addressed the gathering; on 28.1.2006 at AV College, V. Ahalada Rao, Mahipal Reddy & Ajay Kishan,Company Secretaries addressed the gathering; On 30.1.2006 St.Ann’s Jr.College, Dr.P.V.S. Jagan Mohan Rao, past President, the ICSI addressed the gathering. M ADURAI C HAPTER
On 20.1.2006 the Chapter conducted a career awareness programme at Mangayarkarasi College for Women Arts Science College Madurai, for B.Com I & III year, BBA I & III year students. V.S.Krishnamurthy, Vice Chairman of the Chapter explained about the Institute, Course structure of foundation and Intermediate levels, course fees, subjects, admission procedures, examination details etc. He also explained the company secretary course in employment and in practice. Pamphlets of the Foundation and Intermediate course were distributed among the students, Institute’s CD was screened through LCD presentation. Nearly 250 students attended the programme.
From 17.1.2006 to 21.1.2006 the Regional Council organised its 12th Training Orientation Programme (TOP) at CCRT, Navi Mumbai. Fifty Six candidates enrolled and completed, the programme successfully. Antony Paul, Joint Director CCRT was the Co-ordinator of the programme. On 17.1.2006 at the inaugural session, S.N.Ananthasubramanian,
P ALAKKAD S ATELLITE C HAPTER
On 10.1.2006 the Palakkad Satellite Chapter of SIRC of the ICSI was inaugurated by R.Ravi, then President, the ICSI in the august presence of S.S. Moni, Managing Director, Malabar Cements Ltd. Palakkad who was the Chief Guest of the function, R. Sridharan, then Chairman, SIRC of the ICSI and in the presence of a good
Student Company Secretary
audience notably, Chairmen of Palakkad Branch of SIRC of the ICAI & ICWAI and members of professions. The Chief Guest spoke about the growing awareness of professional ethics in the Corporate Management and the key roles company secretaries have been playing in this sphere. R. Ravi in his address stated that the Institute has adopted a new “Vision and Mission” considering the four key developments in corporate world viz. Corporate Governance, Technology, Globalisation and Public-private partnership. He stated that the new vision of the Institute is of a global leader with commitment in development of professionals, specialized in corporate governance and global leadership, but not a global dominance. He also spoke about the various efforts taken by the Institute to bring company secretarial services under the service secretoral classification list of the WTO and Internationalisation of company secretary profession. R. Ravi explained the MOU signed between the ICSI and the Institute of Chartered Secretaries and Administrators, UK. He further stated that Federation of Company Secretaries with its Secretariat ICSI has been constituted with participation of the Institutes of Bangladesh, Kenya and Pakistan so that the global brand Company Secretary would help the profession to work unitedly at the WTO and such other multi lateral forums. He also spoke about Information Technology as well as IT enabled services where company secretaries can play their role for establishment of 100% export oriented units for IT and BPO industries, foreign collaboration, and joint venture agreements etc. He opined that in this age of globalisation, a company secretary can render services in Multinational Regulatory Framework and Corporate Governance, Business Process Outsourcing, Commercial Arbitration, Fund Raising, Intellectual Property Rights, Legal and Compliance Management etc. Ravi spoke about the in principle agreement between the professions of ICSI, Chartered Accountants and Cost and Works Accountants for a multi disciplinary partnership and he stated that this will be realized soon after suitable amendments to the Acts governing these professions are approved. He stated that in order to increase competency to appear before the national Company Law Tribunal and the Competition Commission, it is proposed to invigorate efforts to develop deeper skills and expertise of the members of the Institute. He viewed that the registration granted by the Ministry of Company Affairs to the Institute under the aegis of investor education and protection fund is a significant and major milestone. He also lauded the New Company Law (Irani Committee Report) for the importance given to the profession of company secretaries. S. Sridharan in his key note address explained the salient features of the profession and the par excellence of this profession. A Managing Committee of the Chapter was constituted and following office bearers have been elected : M. Damodaran – Chairman ; P.K. Padmanabhan, Vice Chairman and Sec retary and Faroz Khan,Treasurer. A press conference was addressed by the President in the Afternoon. Sreedharan, Damodaran, Padmanabhan and Feroz Khan were present at the press conference. A meeting of HODs of the leading colleges in Palakkad and a students meet were also held in the afternoon. Sreedharan, elaborately explained about the profession of Company Secretaries at the students meeting.
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February 2006
NEWS AND A NNOUNCEMENTS the then Chairman, WIRC addressed the participants emphasizing on personality development, communication and other soft skills. He also stressed the importance and relevance of Training. Earlier Paul explained the modalities and the structure of the Five day’s programme.
WIRC’s Celebration of Silver Jubilee Year of the Institute as a Statutory Body. D OMBIVLI C HAPTER
A galaxy of senior /experienced company secretaries and other professionals addressed the participants on various subjects like Personality Development, Communication & Presentation Skills; Use of Information Technology in work areas especially company secretaries, Code of Conduct & Ethics, Office Culture & Organizational Behaviour, Drafting of documents –Minutes, Notices, Resolutions, Functioning of Stock Exchanges, CLB, ROC, SEBI, RBI etc. and practical aspects of Company Secretary’s work. One session on Group Discussion with practical tips and example was also arranged. Besides, interactive sessions on Corporate Governance & Clause 49 and SSB were also organized. The Co-ordinator also explained the procedures & formalities regarding Training Requirements under CS Regulations. On 21.1.2006 at the valedictory session Arvind Guadana, Chairman WIRC and A. Lahiri, Dean CCRT were the guest speakers who addressed the gathering highlighting the importance of interaction with senior members/other professionals so as to gain more knowledge which is a must to cope up with increasing demands of varied nature of professional work/assignments. During the session, Training Completion Certificates were distributed to all the eligible candidates.
From 16 to 18.12.2005 the Chapter participated in “Career Fair 2005” organized at Pragati College Dombivli. The Chapter set up informative stall and displayed banners about prospects of company secretary in employment and self employment, eligibility requirement for entry in to the profession of company secretaries and various facilities available at the Chapter. Around 1500 visitors including prospective students, parents, professors and principals of various colleges visited the stall.
From 3.12. 2005 to 18.12.2005 the Regional Council conducted its 68th Secretarial Modular Training Programme at CCRT, Navi Mumbai. In all 22 candidates enrolled and successfully completed the 15 days programme.The programme was inaugurated by S.N. Ananthasubramanian, then Chairman WIRC. During the fifteen days’ programme senior and experienced company secretaries and other professionals experts addressed the participants on various subjects such as Corporate Governance , IPO, ADR, GDR, Forex & Treasury Management, Joint Venture & Foreign Collaboration etc. to name a few. Participants were also exposed to practical and procedural aspects of working of company secretary especially convening and conducting of AGMs and Board meetings and appearance before CLB. During the programme visits to Stock Exchange and Share Depositories were organised. Special sessions were also organized on Commodity Exchange Leadership and Financial Statement Analysis-Case studies. On 18.12.2005 participants were divided into three groups presented their group projects on the following subjects: 1. IPO; 2. IPR and 3. Arbitration. Out of the above three project presentations, the presentation made by Group I on IPO was adjudged as the best one. Tanay Kasera was selected as Best presenter and Manish Acharya as the Best Participant of the whole programme. S.R.Halbe, Practising Company Secretary was the chief guest at the valedictory session. S.N.Ananthasubramanian, requested the participants to give genuine feedback about the training programme which will enable WIRC to revise the contents of the programme in future. V.Sitapathy, Regional Council Member also addressed the participants exhorting them to enroll in the Company Secretaries Benevolent Fund. He also urged the participants to take full advantage of various professional development programmes conducted by the Regional Council/Chapters. The Chief Guest distributed the Course Completion Certificates and Silver Jubilee Commemorative Medallion to all the participants of the programme. The Special Medallion was issued as a part of
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On 16.12.2005 S.N. Ananthasubramanian, then Chairman, WIRC inaugurated the stall. Apart from Office bearers of the Chapter and WIRC, Srividya Iyer, the faculty for Foundation Course oral coaching, Nandlal Bafna, then Chairman , Anand Kumashi, then Vice Chairman, Sateesh Wadagbalkar, then treasurer, Mahesh Hurgat, the then Programme Committee Chairman of the Chapter, Rajesh Mittal, Member of the Managing Committee contributed and guided the visitors about admission requirements, prospects of the course and future of the company secretary. I NDORE C HAPTER
On 5.1.2006 the Chapter organized a whole day programme for the students at Indore. About 40 students took part in the programme and made it a grand success. The highlights of the programme were as follows: The Quiz session included questions on Corporate Laws, General Economic Knowledge. Some questions having funny answers were also included in it. The students were totally involved in the session and gave innovative answers to the funny questions. In the special performance session every student including members of the Chapter present had to give a special performance on the specific item of performance allocated to them and every body performed at its best. This trend of innovativeness and enjoyment continued with an Ad-Made Show where the reams of students were at their best. With an intention that every student present should win at least one prize around 70 prizes were distributed to the winners of various competitions. Kaushal Agrawal, then Chapter Secretary along with Rajesh Lohiya, Shilpesh Dalal, Manish Jain, Tanay Kasera, Nitisha Kasera, Rahul Singh and Mukesh Gupta inaugurated the programme and they were the judges jointly or severally for all the above competitions. All the passed out students of June 05 session of Examination present were given a token of appreciation. Mukesh Gupta was felicitated for his meritorious achievement. Gupta presented views about his study by which he got 5 th Rank in Final Exam of June 05 session. For achieving special recognition in SMTP. Rahul Singh and Tanay Kasera got special prizes. Best anchor female award was given to Neha Asawa and for male to Gorav Jain. A special prize was given to Ruchi Khandelwal for her active participation in the whole programme. In the open House various suggestions of the students were noted. Kaushal Agrawal, appreciated the contributions of this programme organization committee comprising Neha Asawa, Rahul Singh, Abhishek Shukla, Mukesh Gupta, Rishabh Jain, Praveen Jain, Jyotsna Choudhary, Vaibhav Jain, Harpriya Singh, Pramod Jain and Ruchi Khandelwal. On behalf of the Chapter Kaushal Agrawal expressed his sincere thanks to the studens, members of the sub-committee present and those who were not present but actively involved in the success of the programme and also to the sponsors who provided valuable contribution to the Chapter for the programme. The programme was given wide coverage in the leading newspapers also. Dainik Bhaskar, Nai Dunia, Chowtha Sansar etc. published detailed report along with photos of the programme.
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1. 2. 3.
4.
All students are required to appear in the Final Examination to be held in June, 2006 under the New Syllabus only. Their Student Registration Code Nos. have also been changed from CG/EG/NG/SGIWG to CR/ER/NR/SR/WR and the identity cards already issued to them will hold good under the new syllabus as well. With a view to mitigate the hardship to the students who have already passed any one Group of the Final Examination under the Old Syllabus that they will have to appear in more number of papers on switch over to the New Syllabus, the Council reconsidered and decided that a candidate at the Final Level shall be exempted on the basis of having passed/secured exemption in papers under the syllabus specified in Part - III of Schedule CCA on switch over to the new syllabus specified in Part - III of Schedule CCB and the following scheme of exemption shall be applicable to him: Papers passed/exempted under the syllabus specified in Part - III of Schedule CCA
Exemption from papers under the syllabus specified in Part-III of Schedule CCB
1 Financial Management
Financial, Treasury& Forex Management
2 Management Control and Information
Human Resource Management and Industrial Relations
3 Corporate Tax Management - Direct Taxes
Direct & Indirect Taxation - Law & Practice
4 Corporate Tax Management - Indirect Taxes
Banking & Insurance-Law & Practice
5 Corporate Laws & Practice - I
Advanced Company Law & Practice
6 Corporate Laws & Practice - II
Corporate Restructuring -Law & Practice
7 Corporate Laws & Practice - III
Secretarial Practice relating to Economic Laws and Drafting and Conveyancing
8 Secretarial and Management Audit Secretarial, Management & System Audit As per the revised scheme of exemptions approved as above, a student who has passed Group I or Group - II of the Final Examination under the Old Syllabus comprising of four papers will be exempted from the four papers under the New Syllabus and shall be required to appear in the remaining papers as per the following details:
Particulars of the Group Passed under Old Syllabus
Papers in which the student shall be entitled for the Exemption under the New Syllabus (as per revised scheme)
Remaining Papers in which student will be required to appear under the New Syllabus (as per revised scheme)
Group-I
Group-II
Group-I
1. 2. 3.
1. Financial Treasury & Forex Management 2. Banking & Insurance— Law and Practice Group-III 1. Direct & Indirect Taxation— Law & Practice 2. Human Resource Management and Industrial Relations
1. Advanced Company Law & Practice 2. Secretarial Practice relating to Economic Laws and Drafting & Conveyancing 3. Secretarial Management & Systems Audit Group-II 1. Corporate Restructuring— Law & Practice Group-III 1. WTO-International Trade, Joint Ventures & Foreign Collaborations
Group-I 1. Advanced Company Law & Practice 2. Secretarial Practice relating to Economic Laws and Drafting & Conveyancing 3. Secretarial Management & Systems Audit Group-II 1. Corporate Restructuring— Law & Practice
Group-II 1. Fi na nc ia l, Tre as ur y an d Fo re x Management 2. Banking & Insurance—Law & Practice
4.
Financial Management Management Control & Information Corporate Tax Management— Direct Taxes Corporate Tax Management— Indirect Taxes
Group-II 1. Corporate Laws & Practice-I 2. Corporate Laws & Practice-II 3. Corporate Laws & Practice-III 4. Secretarial & Management Audit
5. 6.
Group-III 1. WTO-International Trade, Joint Ventures & Foreign Collaborations 2. Direct and Indirect Taxation— Law & Practice 3. Human Resource Management and Industrial Relations
Students who have completed coaching for both groups of the Final Course under the Old Syllabus will be exempted from undergoing coaching in all the three groups under the New Syllabus. However, students who have completed coaching in a single group/subject(s) will also be eligible for the corresponding exemption as per table given under para (3) above. All the students of Final Old Syllabus (Under the Compulsory Switchover Category) will be enrolled for June 2006 session of Examination as per the above guidelines. The paper wise exemption(s) will be printed & mentioned on the Admit Card as well as in the Attendance Sheet. In case of any discrepancy, the same may be brought to the notice of the Institute immediately or may contact Sohan Lal, Joint Director or T.P. Balasubramanian, Desk Officer on Tele No. 41504444 Extn. 511/515.
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