CS EXECUTIVE SYLLABUS APPLICABLE FROM JUNE 15 ONWARDS

CS EXECUTIVE SYLLABUS APPLICABLE FROM JUNE 15 ONWARDS

CS Executive Syllabus Applicable From June 15 Onwards 

Module 1

1.      Company Law

2.      Cost and Management Accounting

3.      Economic and Commercial Laws

4.      Tax Laws and Practice

Module 2

1.      Company Accounts and Auditing Practices

2.      Capital Markets and Securities Laws

3.      Industrial, Labour and General Laws

Module 1 DETAILED CS Executive Syllabus June 15 Onwards

PAPER 1: COMPANY LAW (100 Marks)

Level of Knowledge: Expert Knowledge
Objective: To acquire knowledge and develop understanding of the regulatory framework of companies with reference to various provisions of Companies Act and its schedules, rules, notifications, circulars, clarifications there under including case laws and Secretarial standards.
Contents:
1. Introduction

·         Historical Development of Concept of Corporate Law in India

·         Company-Definition, Meaning, Nature and its Characteristics

·         Nature and Forms of Business

·         Company vis-à-vis other Forms of Business

·         Concept of Corporate Personality, Corporate Veil, Limited Liability and Citizenship

2. Incorporation and its Consequences

·         Types of Companies and their incorporation

·         Promoters-Meaning, Position, Duties, Rights, Responsibilities and Liabilities

·         Formation of Companies – Procedural Aspects

·         Memorandum of Association & Articles of Association and their Alteration

·         Contracts and Conversion of Companies

·         Commencement of Business

·         Doctrine of Ultra-Vires, Constructive Notice, Indoor Management, Alter Ego

3. Financial Structure

·         Concept of Capital and Financing of Companies – Sources of Capital; Classes and Types of Shares; Equity Shares with Differential Rights; Issue of Shares at Par, Premium and Discount; Forfeiture and Surrender of Shares; Bonus Issues; Rights Issues; Issue of Sweat Equity Shares; Employees Stock Option Scheme; Private Placement; preference shares and other forms of securities

·         Alteration of Share Capital – Reduction of Capital; Buy-Back of Shares

·         Prospectus– Definition; Abridged Prospectus; Red-Herring Prospectus; Shelf Prospectus; Information Memorandum; Contents, Registration; Misrepresentations and Penalties

·         Debt Capital- Debentures, Debenture Stock, Bonds;Recent Trends and Dynamics of Corporate Debt Financing; Debenture Trust Deed and Trustees; Conversion of and Redemption of Debentures

·         Securing of Debts- Charges; Creation, Modification and Satisfaction of Charges

·         Allotment and Certificates- General Principles and Statutory Provisions related to Allotment; Minimum Subscription; Irregular Allotment; Procedure of Issue of Share Certificates and Warrants.

4. Membership in a Company

·         Modes of Acquiring Membership

·         Rights and Privileges of Members, Register of Members

·         Dematerialisation and Rematerialisation of Securities

·         Transfer and Transmission of Securities in Physical and Dematerialized forms

·         Nomination

5. Management and Control of Companies

·         Directors-Types, Director’s Identification Number (DIN), Appointment/Reappointment, Qualifications, Disqualifications, Vacation of Office, Retirement, Resignation and Removal of Managing and Whole-Time Directors and Manager

·         Role and Responsibilities of Directors

·         Powers and Duties

·         Loans to Directors

·         Remuneration of Directors

·         Office or Place of Profit

·         Contracts in which Directors are Interested

·         Board of Directors and its Committees

·         Company Secretary – Appointment, Role and Responsibilities

·         Company Secretary as a Key Managerial Personnel

·         Meetings:

·         Meetings of Board and Committees – Frequency, Convening, Proceedings, Video Conferencing of Board/Committee(s); Resolution by Circulation; Minutes and Evidence

·         General Meetings – Kinds of Meetings; Law, Practice and Procedure Relating to Convening and Proceedings at General and Other Meetings; Notice, Quorum, Chairman, Proxy, Voting including Voting through Electronic Means; Resolutions, Circulation of Members’ Resolution, etc.; Postal Ballot; Recording, Signing and Inspection of Minutes

·         Distribution of Powers of a Company – Division of Powers between Board and General Meetings; Acts by Directors in Excess of Authority; Monitoring and Management

·         Sole Selling and Buying Agents- Meaning, Appointment and Reappointment, Removal; Powers of Central Government and Rules Framed for the Purpose.

6. Investments, Loans and Deposits

·         Law relating to making investments in and granting loans to other bodies corporate and giving guarantees and providing security

·         Acceptance of Deposits, Renewal, Repayment, Default and Remedies

7. Accounts and Audit

·         Books of Accounts

·         Financial Statements

·         Auditors-Appointment, Resignation and Removal; Qualification and Disqualification; Rights, Duties and Liabilities

·         Audit and Auditor’s Report

·         Cost Audit and Special Audit

8. Dividends

·         Profit and Ascertainment of Divisible Profits

·         Declaration and Payment of Dividend

·         Treatment of Unpaid and Unclaimed Dividend

·         Transfer of Unpaid and Unclaimed Dividend to Investor Education and Protection Fund

·         Board’s Report and Disclosures- Contents and Annexure to Board’s Report

·         Directors’ Responsibility Statement-Preparation and Disclosures

·         Compliance Certificate – Need and Objective; Issue and Signing by Practising Company Secretary

·         Corporate Governance Report

9. Registers, Forms and Returns

·         Statutory Books and Registers prescribed under various provisions of the Company Law – Maintenance, Authentication, Place of Keeping and Inspection

·         Filing of various Forms and Returns with the Authorities

·         Procedure and Penalties for Delayed Filing

·         Annual Return – Nature and Significance; Contents; and Certification by Practising Company Secretary

10. Inspection and Investigation

·         Inspection of Documents

·         Powers of the Inspector

·         Seizure of Books And Documents

·         Inspector’s Report l Power of the Registrar of Companies

·         Investigation into Affairs of the Company

11. Majority Rule and Minority Rights

·         Law relating to Majority Powers and Minority Rights

·         Shareholder Remedies-Actions by Shareholders; Statutory Remedies; Personal Actions

·         Prevention of Oppression and Mis-Management

12. Merger, De-merger, Amalgamation, Compromises and Arrangements – An Overview

13. Producer Companies

·         Concept, Formation, Functioning and Dissolution

14. Limited Liability Partnerships

·         Concept, Formation, Membership, Functioning and Dissolution

15. Application of Company Law to Different Sectors

·         Banking

·         Insurance

·         Others

16. Offences and Penalties

·         Introduction

·         Officer in Default

·         Penalties

17. Compounding of Offences

18. Winding up of Companies – An Overview

·         Concept and Modes

19. Striking Off Name of Companies

20. An Introduction to E-Governance and XBRL

PAPER 2: COST AND MANAGEMENT ACCOUNTING (100 Marks)

Level of Knowledge: Working Knowledge

Objective: To acquire knowledge and understanding of the concepts, techniques and practices of cost and management accounting and to develop skills for decision making.

Contents:

1.      Introduction to Cost and Management Accounting

·         Cost Accounting: Evolution, Meaning, Objectives and Scope

·         Concepts of Costs, Classifications and Elements of Cost

·         Cost Centre and Cost Unit

·         Methods and Techniques of Costing

·         Cost Accounting Standards

·         Installation of a Costing System

·         Practical Difficulties in Installing a Costing System

·         Role of Cost Accountant in Decision Making

·         Management Accounting: Evolution, Meaning, Objectives and Scope

·         Tools and Techniques of Management Accounting

·         Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management

·         Conflicts in Profit versus Value Maximisation Principle

·         Role of Management Accountant in Decision Making

2.      Material Cost

·         Materials Control – Concept and Techniques

·         Procurement Procedures and Documentation: Methods of Purchasing; Procedure of Purchases, Stores and Issue of Material; Stock Verification

·         Methods of Pricing of Material: FIFO, LIFO, Simple Average, Weighted Average

·         Accounting and Control of Material Losses, Wastage, Scrap, Spoilage and Defectives

·         Inventory Management: Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC Analysis; Stock Verification and Perpetual Inventory

3.      Labour Cost

·         Labour Cost

·         Meaning and Classification of Labour Costs

·         Accounting and Control of Labour Costs

·         Time Keeping and Time Booking

·         Attendance and Payroll Procedures, Time Recording, Overtime and Idle Time

·         Labour turnover and Remedial Measures l Efficiency Rating Procedures; Remuneration Systems and Incentive Schemes

4.      Direct Expenses and Overheads

·         Direct Expenses: Meaning, Nature, Collection, Classification and Treatment of Direct and Indirect Expenses

·         Overheads: Meaning, Nature, Collection and Classification Functional Analysis: Factory, Administration, Selling, Distribution, Research and Development

·         Behavioural Analysis: Fixed, Variable, Semi variable and Step Cost Allocation, Apportionment, Absorption and Control of Overheads

·         Preparation of Cost Sheet

5.      Activity Based Costing (ABC)

·         Meaning, Importance, Characteristics

·         Elements and Steps involved

·         ABC vs. Traditional Costing

·         Uses and Limitations

6.      Cost Records

·         Cost Ledgers – Integrated Accounts and Non-Integrated Accounts

·         Reconciliation of Cost and Financial Accounts

7.      Costing Systems

·         Unit and Output Costing

·         Job Costing: Job Cost Cards, Collecting Direct Costs, Allocation of Overheads and its Applications

·         Batch Costing: Features and Applications

·         Contract Costing: Features, Distinction between Job and Contract Costing, Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for Plant Used in a Contract, Contract Profit and Accounting Entries

·         Process Costing: Features, Applications and Types of Process Costing, Process Loss, Abnormal Gains and Losses, Equivalent Units, Inter-Process Profit, Joint Products, By-Products and Accounting

·         Service Costing: Features and Applications, Unit Costing and Multiple Costing, Application, Identification of Cost Unit and Cost Determination and Control

8.      Marginal Costing

·         Meaning, Advantages, Limitations and Applications

·         Breakeven Analysis

·         Cost-Volume Profit Analysis

·         P/V Ratio and its Significance

·         Margin of Safety

·         Absorption Costing: System of Profit Reporting and Stock Valuation

·         Difference between Marginal Costing and Absorption Costing

·         Income Measurement under Marginal Costing and Absorption Costing

9.      Standard Costing

·         Definition, Significance and Applications

·         Various Types of Standards

·         Installation of Standard Costing System-for Material, Labour, and Overhead

·         Variance Analysis for Materials, Labour and Overheads and Accounting Treatment of Variances

·         Benchmarking for Setting of Standards

·         Variance Reporting to Management

10.  Budget, Budgeting and Budgetary Control

·         Budget Concept, Manual

·         Fixed and Flexible Budgets

·         Preparation and Monitoring of Various Types of Budgets

·         Budgetary Control System: Advantages, Limitations and Installation

·         Zero Base Budgeting

·         Programme and Performance Budgeting

11.  Cost Accounting Records and Cost Audit

·         Nature and Scope of Cost Audit

·         Cost Accounting Records and Cost Audit under Companies Act,1956

·         Purpose, Scope and Advantages of Cost Audit

·         Implementing Authorities of Cost Audit

·         Cost Audit Techniques and Programmes

·         Cost Audit Report

·         Cost Auditor – Appointment, Rights and Responsibilities

12.  Analysis and Interpretation of Financial Statements

·         Financial Statements: Nature, Attributes, Objectives, Importance, Limitations

·         Recent Trends in presenting Financial Statements

·         Financial Statements Analysis: Types, Methods, Objectives, Limitations

·         Ratio Analysis: Accounting, Uses, Classification, Advantages, Limitations

·         Cash Flow Statement

·         Fund Flow Statement

·         Difference between Cash Flow and Fund Flow Statement

·         Management Reporting

PAPER 3: ECONOMIC AND COMMERCIAL LAWS (100 Marks)

Level of Knowledge: Part A- Advance Knowledge

Part B- Working Knowledge

Objective: To acquire knowledge and understanding of Economic and Commercial Laws.

Contents:

PART A: (70 Marks)

1.      Foreign Exchange Management

·         Objectives and Definitions under FEMA, 1999

·         Current Account Transactions and Capital Account Transactions

·         FDI Policy

·         Foreign Direct Investment in India and Abroad

·         Acquisition and Transfer of Immovable Property in India and Abroad

·         Establishment of Branch, Office etc. in India

·         Export of Goods and Services

·         Realization and Repatriation of Foreign Exchange

·         Authorized Person

·         Penalties and Enforcement

·         Foreign Contribution (Regulation)Act, 2010

·         Foreign Contributions and Hospitality

·         Exemptions

·         Powers of Central Government

·         Adjudication, Appeal and Compounding

·         Offences and Penalties

2.      Foreign Trade Policy and Procedures

·         Main Features

·         Special Focus Initiatives

·         Served from India Scheme

·         Export Promotion Council

·         Vishesh Krishi and Gram Udyog Yojana

·         Focus Market Scheme; Focus Product Scheme; Duty Exemption and Remission Schemes; Advance Authorization Scheme; DFRC; DEPB; EPCG, etc.

·         EOUs, EHTPs, STPs, BPTs and SEZs

3.      Competition and Consumer Protection

·         Concept of Competition

·         Development of Competition Law

·         Competition Policy

·         Competition Act, 2002 – Anti Competitive Agreements, Abuse of Dominant Position, Combination, Regulation of Combinations, Competition Commission of India; Appearance before Commission and Appellate Tribunal, Compliance of Competition Law

·         Consumer Protection Act, 1986

·         Consumer Protection in India

·         Genesis of the Law and Objects

·         Rights of Consumers

·         Nature and Scope of Remedies

·         Appearance before Consumer Dispute Redressal Forums

4.      Intellectual Property Rights

·         Introduction – GATT, WIPO and TRIPS

·         Concept and Development of Intellectual Property Law in India

·         Law and Procedure Relating to Patents, Trade Marks and Copyrights

·         Geographical Indications

·         Design Act

·         Overview of Laws Relating to Other Intellectual Property Rights

·         Intellectual Property Appellate Board

5.      Law relating to Arbitration and Conciliation

·         Introduction to UNCITRAL MODEL LAW

·         Law of Arbitration in India

·         Types of Arbitration

·         Appointment of Arbitrators – Procedure

·         Judicial Intervention

·         Venue – Commencement

·         Award – Time limit, Enforceability, Interest

·         Recourse against Award – Appeals

·         Conciliation and Compromise

·         International Commercial Arbitration; Foreign Awards

·         Arbitration Agencies – ICADR, ICA, Chambers of Commerce, Professional Arbitrators

·         Alternate Disputes Resolution

6.      Law relating to Transfer of Property

·         Important Definitions

·         Types of Properties

·         Movable and Immovable Property

·         Properties which cannot be Transferred

·         Rule Against Perpetuities

·         Lis Pendens

·         Provisions Relating to Sale

·         Mortgage, Charge, Lease, Gift and Actionable Claim

7.      Law relating to Stamps

·         Methods of Stamping

·         Consequences of Non-Stamping and Under-Stamping

·         Impounding of Instruments

·         Construction of Instruments for Determination of Stamp Duty Payable

·         Adjudication

·         Allowance and Refund

·         Penal Provisions

·         Concept of E-Stamping

8.      Law relating to Contract

·         Contract – Introduction

·         Legality of Objects

·         Standard Form of Contract

·         Multinational Agreement

·         E-Contracts

·         Strategies and Constraints to enforce Contractual Obligations

·         Special Contracts: Indemnity and Guarantee; Bailment and Pledge; Law of Agency

9.      Prevention of Money Laundering

·         Genesis

·         Prevention of Money Laundering Act, 2002

·         Concept and Definitions, Various Transactions, etc.

·         Obligations of Banks and Financial Institutions

·         RBI Guidelines on KYC

PART B: (30 Marks)

10.  Law relating to Essential Commodities, Weights and Measures

·         Overview of Essential Commodities Act, 1955

·         Objects

·         Powers of Central Government

·         Seizure and Confiscation of Essential Commodities

·         Summary Trial

·         The Legal Metrology Act, 2009

11.  Law relating to Societies

·         General Concept Relating to Registration of Societies

·         Property of Societies

·         Suits by and against Societies

·         Enforcement of Judgment against Societies

·         Dissolution of Societies

12.  Law relating to Trusts

·         General Concept relating to Trusts

·         Creation of Trust

·         Duties and Liabilities of Trustees

·         Rights and Powers of Trustees, Disabilities of Trustees

·         Rights and Liabilities of the Beneficiary

13.  Industries Development and Regulation

·         Objects and Definitions

·         An Overview of Industrial Policy

·         Regulatory Mechanism under IDRA

·         The Micro, Small and Medium Enterprises Development Act, 2006

14.  Law relating to Pollution Control and Environmental Protection

·         Concept of Sustainable Development, Bio Diversity and Carbon Credit

·         Government Policy Regarding Environment

·         Law Relating to Prevention and Control of Air Pollution and Water Pollution

·         Environment (Protection) Act, 1986

·         National Green Tribunal

·         Appearance before Environment Tribunal/Authority

·         Public Liability Insurance Act, 1991

15.  Law relating to Registration of Documents

·         Registration of Documents – Compulsory and Optional

·         Time and Place of Registration

·         Consequences of Non-Registration

·         Description of Property

·         Miscellaneous Provisions

PAPER 4: TAX LAWS AND PRACTICE (100 Marks)

Level of Knowledge: Working Knowledge

Objective: To acquire expert knowledge of practical and procedural aspects relating to Direct Tax Laws, Service Tax and VAT.

Contents:

PART A: INCOME TAX AND WEALTH TAX (70 Marks)

1.      Basics and Definitions – Income Tax Act , 1961

·         Background, Concept and Mechanism of Income Tax

·         Definitions, Concept of Income, Previous Year, Assessment Year, Distinction between Capital and Revenue Receipts and Expenditure, Residential Status

·         Basis of Charge and Scope of Total Income

2.      Incomes which do not form part of Total Income

3.      Computation of Total Income under Various Heads: Salaries, Income from House Property, Profit and Gains of Business or Profession, Capital Gains, Income from Other Sources

4.      Income of Other Persons included in Assessee’s Total Income; Aggregation of Income and Set Off or Carry Forward of Losses; Various Deductions to be made in Computing Total Income, Rebates and Relief’s; Applicable Rates of Taxes and Tax Liability

5.      Taxation of Individuals including Non-Residents, Hindu Undivided Family, Firms, LLP, Association of Persons, Cooperative Societies, Trusts, Charitable and Religious Institution

6.      Classification and Tax Incidence on Companies; Computation of Taxable Income and Assessment of Tax Liability, Dividend Distribution Tax, Minimum Alternate Tax and Other Special Provisions Relating to Companies

7.      Tax Deduction at Source, Tax Collection at Source, Recovery and Refund of Tax; Provisions of Advance Tax

8.      Provisions concerning Procedure for Filing Returns, Signatures, EFiling, Assessment, Reassessment and Settlement of Cases, Special Procedure for Assessment of Search Cases, E-Commerce Transactions, Liability in Special Cases, Collection and Recovery of Tax; Refunds, Appeals and Revisions; Penalties Imposable, Offences and Prosecution

9.      Tax Planning & Tax Management

·         Concept of Tax planning, Tax planning with reference to setting up a New Business; Location; Nature of Business; Tax Holiday, etc. Tax Planning with regard to Specific Management Decisions such as Mergers and Takeovers; Employees’ Remuneration; Voluntary Retirement; Tax Planning with reference to Financial Management Decisions such as Borrowing or Investment Decisions; Reorganization or Restructuring of Capital

10.  Wealth Tax Act, 1956

·         Background, Concept and Charge of Wealth Tax

·         Assets, Deemed Assets and Assets Exempt from Tax

·         Valuation of Assets, Computation of Net Wealth

·         Return of Wealth Tax and Provisions concerning Assessment

11.  Basic Concepts of International Taxation

·         Residency Issues; Source of Income; Tax Havens; Withholding Tax, Unilateral Relief and Double Taxation Avoidance Agreements Controlled Foreign Corporation, Advance Rulings and Tax Planning, Authority for Advance Rulings

12.  Transfer Pricing

·         Concepts, Meaning of International Transactions

·         Computation of Arm’s Length Price & Methods

·         Documentation and Procedural Aspects

13.  General Anti Avoidance Rules (GAAR)

PART B:  SERVICE TAX AND SALES TAX (30 Marks)

14.  An Overview of Service Tax: Background, Negative List Approach, Taxable Services, Administrative Mechanism, Registration and Procedural Aspects, Rate and Computation of Tax, Levy, Collection and Payment of Service Tax

15.  An Overview of Value Added Tax: Legislative Background, Concept of VAT, Declared Goods, Administrative Mechanism, Registration and Procedural Aspects, Rate and Computation of Tax, Levy, Collection and Payment of VAT

Central Sales Tax; Tax on Inter- State Trade and Exports – Registration, Preparation and Filing of E-Returns, Rates of Tax, Assessment and Refunds

PAPER 5: COMPANY ACCOUNTS AND AUDITING PRACTICES (100 Marks)

Level of Knowledge: Advance Knowledge

Objective: To acquire knowledge and understanding of the concepts, principles and practices of company accounts and auditing in accordance with statutory requirements.

Contents:

PART A: COMPANY ACCOUNTS (70 Marks)

1.      Share Capital

·         Issue of Shares: at Par, at Premium, at Discount, on Conversion and for consideration other than Cash; Forfeiture and Re-issue of Shares, Buyback of Shares, Redemption and Conversion of Preference Shares, Bonus Shares, Rights Issue, ESOPs, ESPS, Sweat Equity Shares

·         Alteration of Share Capital

·         Underwriting of Shares

2.      Debentures

·         Issue of Debentures: at Par, at Premium, at Discount and for consideration other than Cash

·         Accounting Treatment and Procedures

·         Redemption of Debentures

·         Conversion of Debentures into Shares

3.      Final Accounts of Companies

·         Conceptual Framework, Preparation and Presentation of Financial Statements, Schedule VI, Interpretation and Scrutiny of Balance sheet

·         Treatment of Profit Prior to Incorporation, Preoperative and Preliminary Expenses

·         Preparation of Final Accounts under Company Law

4.      Corporate Restructuring

·         Concept and Accounting Treatment as per AS

·         Methods of Amalgamations Accounting

·         The Pooling of Interests Method

·         The Purchase Method

·         Consideration

·         Treatment of Reserves, Goodwill and Pre- Acquisition & PostAcquisition Profit

·         Accounting in the books of Transferor and Transferee

·         Merger and De-merger

·         Acquisition of Business

·         Internal Reconstruction

5.      Consolidation of Accounts

·         Holding and Subsidiary Companies – Accounting Treatment, Disclosures and Consolidation of Accounts

6.      Valuation of Shares and Intangible Assets

·         Valuation of Shares, Methods of Valuation, Price Earning Multiple Valuation, Discounted Cash Flow (DCF) Method

·         Valuation of Intangibles: Brand, Goodwill and IPRs

7.      Liquidation of Company

·         Preparation of Statement of Affairs including Deficiency /Surplus Account

8.      Corporate Financial Reporting

·         Various Requirements of Corporate Reporting

·         Value Added Statements: Economic Value Added (EVA), Market Value Added , Shareholders’ Value Added

9.      Accounting Standards l Relevance and Significance

·         National and International Accounting Standards and Authorities

·         Adoption, Convergence and Interpretation of Internationa

·         Financial Reporting Standards (IFRS) and Accounting Standards in India

PART B: AUDITING PRACTICES (30 Marks)

10.  Auditing Concepts

·         Nature, Scope and Significance of Auditing

·         Basic Principles Governing an Audit

·         Overview of Auditing and Assurance Standards- National and International

11.  Types of Company Audit

·         Statutory Audit

·         Internal Audit

·         Branch Audit

·         Joint Audit

·         Special Audit

·         CAG Audit

12.  Internal Audit

·         Forms of Audit – Propriety Audit, Compliance Audit and Efficiency Audit

·         Nature, Scope and Techniques of Internal Audit; Functions and Responsibilities of Internal Auditors; Organisational Status of Internal Auditing Function, Internal Audit vis-à-vis Statutory Audit

13.  Internal Control

·         Nature, Scope And Elements

·         Internal Control distinguished from Internal Check and Internal Audit

·         Techniques of Internal Control System, Flow Charts, Internal Control Questionnaires

·         Steps for Internal Control and Audit Evaluation

·         Audit Testing – Need For Sampling and Various Approaches to Statistical Sampling

·         Inter-Firm and Intra-Firm Comparisons – Ratio And Trend Analysis; Audit In Depth

14.  Review of Internal Control

·         Review of Purchasing Operations

·         Review of Efficacy of Management Information System

·         Review of Selling and Distribution Policies and Programmes

·         Review of Manufacturing Operations

·         Review of Personnel Policies

·         Appraisal of Management Decisions

15.  Audit Engagement and Documentation

·         Audit Procedures: Audit Plan, Audit Programme, Vouching and Verification

·         Documentation: Audit Working Papers and Files

·         Sampling, Test Checking, Techniques of Test Checks

PAPER 6: CAPITAL MARKET AND SECURITIES LAWS (100 Marks)

Level of Knowledge: Expert Knowledge

Objective: To acquire knowledge and understanding of securities laws and the regulatory framework of capital markets.

Contents:

PART A: CAPITAL MARKET (60 Marks)

1.      Overview of Capital Market

·         Indian Capital Market

·         Authorities Governing Capital Markets in India

·         Profile of Securities Market

·         Securities Market Reforms and Regulatory Measures to Promote Investor Confidence

·         Features of Developed Capital Market: IOSCO

·         Overview of Depository System in India

2.      Capital Market Instruments and Rating

·         Capital Market Instruments: Equity, Debentures, Preference Shares, Sweat Equity, Non-Voting Shares, Share Warrants

·         Pure, Hybrid and Derivatives

·         Rating and Grading of Instruments: Concept, Scope and Significance, Regulatory Framework

·         Rating Agencies in India, Rating Methodologies

3.      Securities Market Intermediaries

·         Primary Market and Secondary Market Intermediaries: Role and Functions, Merchant Bankers, Stock Brokers, Syndicate Members, Registrars, Underwriters, Bankers to an Issue, Portfolio Managers, Debenture Trustees, Foreign Institutional Investors, Depositories, Depositories Participants, Custodians, Credit Rating Agencies, Venture Capitalists

4.      Market Infrastructure Institutions – Stock Exchanges

·         Functions and Significance of Stock Exchanges

·         Operations and Trading Mechanism of Stock Exchanges

·         Settlement of Securities, Stock Market Indices, Risk Management, Surveillance Mechanism at Stock Exchanges, Straight through Processing

·         Demutualization of Stock Exchanges

·         SME Exchange

5.      Debt Market

·         Debt Market: Instruments, Listing, Primary and Secondary Segment

6.      Money Market

·         Growth of Money Market in India : Structure and Institutional Mechanism

·         Money Market Instruments: Treasury Bills, Commercial Bills, Commercial Paper, Factoring Agreements & Discounting of Bill

7.      Mutual Funds

·         Mutual Fund: Introduction, Definitions, Schemes, Risks Involved, Setting Up of Mutual Funds, Role in Financial Market

·         Advantage of Investment in Mutual Fund

·         Concept of Trustee and Asset Management Company

·         Legal & Regulatory Framework

·         Offer Document, Accounting Valuation & Taxation

·         Investment Management: Equity & Debt Portfolio, Measuring & Evaluating Mutual Fund Performance

·         Investor’s Rights and Obligations

8.      Venture Capital

·         Concept of Venture Capital

·         Registration, Investment Conditions and Restrictions

·         Foreign Venture Capital Investors

·         Private Capital Funds

9.      Collective Investment Schemes

·         Regulatory Framework

·         Restrictions on Business Activities

·         Submission of Information and Documents

·         Trustees and their Obligations

10.  Resource Mobilization in International Capital Market

·         Listing of Securities Issued Outside India

·         Foreign Currency Convertible Bonds

·         Global Depository Receipts

·         American Depository Receipts

·         External Commercial Borrowings

·         Procedure for Issue of Various Instruments

11.  Indian Depository Receipts

·         Indian Depository Receipts: Procedure for Making Issue of IDRs, Conditions for Issue of IDRs, Listing of IDRs

PART B: SECURITIES LAW (40 Marks)

12.  Securities Contracts (Regulation) Act, 1956

13.  SEBI Act, 1992

·         Objective, Power and Functions of SEBI

·         Securities Appellate Tribunal, Appeals, Appearance before SAT

14.  Depositories Act, 1996

·         Definitions, Setting up of Depository, its type, Role and Functions

·         Depository Participants

·         Admission of Securities

·         Difference between Dematerialization & Rematerialisation

·         Depository Process

·         Inspection and Penalties

·         Internal Audit and Concurrent Audit of Depository Participants

15.  Issue and Listing of Securities

·         Listing of Securities

·         Issue of Capital and Disclosure Requirements (ICDR)

·         Procedure for Issue of Various Types of Shares and Debentures

·         Employee Stock Option Scheme and Employee Stock Purchase Scheme

·         Delisting of Securities

16.  Regulatory Framework relating to Securities Market Intermediaries

·         Primary Market and Secondary Market Intermediaries: Role and Functions, Merchant Bankers, Stock Brokers, Syndicate Members, Registrars, Underwriters, Bankers to an Issue, Portfolio Managers, Debenture Trustees, Foreign Institutional Investors, Custodians, Credit Rating Agencies, Venture Capitalists

17.  An Overview of Law relating to Insider Trading and Takeovers

PAPER 7: INDUSTRIAL, LABOUR AND GENERAL LAWS (100 Marks)

Level of Knowledge: Working Knowledge

Objective: To acquire knowledge and understanding of securities laws and the regulatory framework of capital markets.

Contents:

PART A: INDUSTRIAL AND LABOUR LAWS (60 Marks)

1.      Factories Act, 1948

·         Object and Scope

·         Application and Major Provisions of the Act

2.      Minimum Wages Act, 1948

·         Object and Scope

·         Application and Major Provision of Minimum Wages Act

3.      Payment of Wages Act, 1936

·         Object and Scope

·         Application and Major Provisions of the Act

4.      Equal Remuneration Act, 1976

·         Object and Scope

·         Application and Major Provisions of the Act

5.      Employees’ State Insurance Act, 1948

·         Object and Scope

·         Application and Major Provisions of the Act

6.      Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

·         Object and Scope

·         Application and Major Provisions of the Act

7.      Payment of Bonus Act, 1965

·         Object and Scope

·         Application and Major Provisions of Payment of Bonus Act

8.      Payment of Gratuity Act, 1972

·         Object and Scope

·         Application and Major Provisions of Payment of Gratuity Act

9.      Employees Compensation Act, 1923

·         Object and Scope

·         Application and Major Provisions of the Act

10.  Contract Labour (Regulation and Abolition) Act, 1970

·         Object and Scope

·         Application and Major Provisions of the Act

11.  Maternity Benefit Act,1961

·         Object and Scope

·         Application and Major Provisions of the Act

12.  Child Labour (Prohibition and Regulation) Act, 1986

·         Object and Scope

·         Application and Major Provisions of the Act

13.  Industrial Employment (Standing Orders) Act, 1946

·         Object and Scope

·         Application and Major Provisions of the Act

14.  Industrial Disputes Act, 1947

·         Object and Scope

·         Application and Major Provisions of the Act

15.  Trade Unions Act, 1926

·         Object and Scope

·         Application and Major Provisions of the Act

16.  The Labour Laws Exemption from Furnishing Returns and Maintaining Register by Certain Establishments Act, 1988

·         Object and Scope

·         Application and Major Provisions of the Act

17.  Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

·         Object and Scope

·         Application and Major Provisions of the Act

18.  Apprentices Act, 1961

·         Object and Scope

·         Application and Major Provisions of the Act

19.  Labour Audit covering the above Acts and those Industry specific Acts

PART B: GENERAL LAWS (30 Marks)

20.  Constitution of India

·         Broad Framework of the Constitution of India: Fundamental Rights, Directive Principles of State Policy

·         Ordinance Making Powers of the President and the Governors

·         Legislative Powers of the Union and the States

·         Freedom of Trade, Commerce and Intercourse

·         Constitutional Provisions relating to State Monopoly

·         Judiciary, Writ Jurisdiction of High Courts and the Supreme Court

·         Different Types of Writs – Habeas Corpus, Mandamus, Prohibition, Quo Warranto and Certiorari

·         Concept of Delegated Legislation

21.  Interpretation of Statutes

·         Need for Interpretation of a Statute

·         General Principles of Interpretation

·         Internal and External Aids to Interpretation

·         Primary and Other Rules

22.  An Overview of Law relating to Specific Relief; Limitation and Evidence

23.  Code of Civil Procedure

·         Elementary Knowledge of the Structure of Civil Courts, their Jurisdiction

·         Basic Understanding of Certain Terms – Order, Judgment and Decree, Stay Of Suits, Res Judicata

·         Suits by Companies, Minors

·         Basic Understanding of Summary Proceedings, Appeals, Reference, Review and Revision

24.  Indian Penal Code and Criminal Procedure Code

·         Important Definitions and Salient Features, Mens Rea

·         Cognizable and Non-Cognizable Offences, Bail, Continuing Offences, Searches,

·         Limitation for taking Cognizance of Certain Offences

25.  Right to Information

·         Salient Features of the Right to Information (RTI) Act, 2005

·         Objective

·         Public Authorities & their Obligations

·         Designation of Public Information Officers (PIO) and their Duties

·         Request for Obtaining Information

·         Exemption from Disclosure

·         Who is excluded

·         Information Commissions (Central & State) and their Powers

·         Appellate Authorities

·         Penalties

·         Jurisdiction of Courts

·         Role of Central/State Governments