The Institute of Cost Accountants of India (Statutory body under an Act of Parliament)

Ahmedabad Chapter

NEWS LETTER October to December 2017

CMA Ashish Bhavsar CMA K. M. Mehta CMA Haren P. Bhatt CMA Utkarsh Yagnik CMA Malhar A Dalwadi Chairman Vice Chairman Secretary Jt. Secretary Treasurer

9924128804 9427353969 9424306442 9904669969 814 1738585

Editorial Board CMA Haren P. Bhatt CMA Malhar A Dalwadi I CMA Pradip H. Desai I

CMA Mitesh I. Prajapati CMA Uttam Bhandari Chairman Member Member Member Member

CMA H. C. Shah CMA Rajendra Patel Member

Events Diwali get to gather (28'" October 20 17)

Pledge Integrity Pledge (30th October 20 I 7)

Placement Activities ( I Otn November 20 17)

ICAl-CMA AHMEDABAD

Rashtriya Ekta Diwas Shapath (3 I <t October 20 17)

Dear Members and Students I feel happy and proud to communicate first time to you as a chairman of the prestigious chapter ICAI - Ahmedabad Chapter. On behalf of managing committee of Ahmedabad chapter, I express my sincere thanks to all the members for electing us as a managing committee member of the chapter for the term 20 17 - 19. I also express my sincere thanks to all managing committee members for expressing confidence in me and e lecting me as Chairman of ICAl-Ahmedabad Chapter. I also congratulate CMA K. M. Mehta, CMA H. P. Bhatt. CMA Utkarsh Yagnik and CMA Malhar Dalwadi for being e lected as Vice-Chairman, Secretary, Jt. Secretary and Treasurer respectively. I also Congratulate CMA Vinod Savaliya immediate past chairman of the chapter and his team for successful completion of the term 20 I 5- 17. Grand Success of Golden Jubilee Celebration of the Chapter and Regional Cost Convention 2017 are the major achievement under his able leadership. I feel proud to be part of his team. I am confident his expert guidance and vast experience is always helpful to the new team, chapter and profession.

New team Ahmedabad will try level best to take the prestigious Ahmedabad chapter and the profession to newer heights. Team Ahmedabad has set the following mission to be achieved during our tenure: I ) Create Awareness about CMA Brand, 2) Increase Student Strength of the chapter, 3) Provide placement opportunity to fresh as well as experience CMAs, 4) Increase members strength of the chapter and 5) O rganising seminars, CEP programmes and workshop for the benefit of members and students.

To achieve the mission, Team Ahmedabad has started working through various sub committees.

We witnessed high voltage election of Gujarat Assembly for 20 17. I Congratulate all elected Ml.As. My heartiest congratulations to Shri Vijay Rupaniji and Shri Nit in Patel for being selected as Chief Minister and Deputy Chief Minister of vibrant state Gujarat.

The Ministry of Corporate Affairs had notified The Companies (cost records and audit) Amendment Rules, 20 17 on 7th December 2017. Amendments are mainly in FORM CAA- I and FORM CRA-3 to aligned cost records and cost audit report with Indian Accounting Standards. The MCA had also notified The Companies (cost records and aud it) Second Amendment Rules, 20 17 on 20th December 20 17. "Customs Tariff Act Heading (CTA Heading)" is substituted "Central Excise Tariff Act Heading (CETA Heading)" in the second amendment rules. The proposed amendments have been made due to enactment of GST

As per the tradition of Ahmedabad chapter. Diwali get-to -gather of members and students was organised on 28th0ctober 2017. Large number of students and members along with their family jo in Diwal i get­to-gather and enjoyed lot.

The chapter had o rganised campus placement fo r June 2017 and December 20 16 pass out fresh CMAs on I 0th November 2017. Around 7Leading corporate groups and practicing CMA firm had joined the campus. Around 28 fresh CMAs from both the term participated in Campus. Out of that I 0 CMAs got the job oppor1unity. Detailed report on the campus placement is given in this newsletter.

Recently the December 20 17 term exams were conducted. This exam was last attempt for 20 12 syllabus. I wish best luck to all students, who appeared in the exam, for positive result.

Inauguration of new oral coaching batch for January 20 I 8. to June 2018

m ICAl-CMAAHMEDABAD

From Chairman's Desk te rm and prize dist ribution for merito rious student will be organised on 09th January 20 I 8 .

Students are the backbone of the chapter and the Institute. To Create awareness about CMA brand and to increase student's strength is important mission of our team. For that, we have started career counselling programmes at various schools, colleges and private coaching classes. I appeal members to join our mission and provide us your good contact to reach at various schools. colleges, private coaching classes or any social gatherings to enable us to create awareness about CMA brand. Your small init iative will help the chapter to fulfil our mission.

Members are also backbone of the chapter and the Institute. The Chapter is committed to arrange various seminar, Work Shop and CEP programmes for the benefit of the members. To equipped members about GST, chapter had arranged workshop on GST for I 0 days before implementation of GST Looking to the overwhelming response from the member. chapter had arranged 3 batches of workshop. The chapter had also opened GST help desk for 14 days for the benefit of Traders, professional and common man between 0 1st July 2017 to 14th July 20 17. Various CEP Programmes on GST were also arranged after implementation of GST. On 7th December 2017, CEP Programme was arranged on latest changes in GST On the directives of HQ. chapter had arranged workshop on "Competition Law: Cartel Enforcement & Leniency" on I I th November 20 17 at AMA Shri Nandan Kumar - Joint Directo r (Economics) faculty of work shop had given insight about the Competition Law.

I am happy to inform you that, the chapter has formed CMA Ladies Wing for providing platform to Lady CMAs for development of there skills. CMA Illa Patel is the Chairperson and CMA Koushlya Melwani is the Co­Chairperson. First programme of the Ladies Wing is "Women Professionals & Entrepreneurship". The details of the same will be given soon. I request lady C MAs to join the programme to make it a grand success.

The chapter is also committed to increase member strength of the chapter. There are many pass out CMAs w ho are eligible for membership, however for any of the reason they have not opted for membership of the institute . We request all of them to become member and be part of this prestigious institute. I also request members to motivate non-members to become members of the institute. The detail process for Associate membership is given in this newsletter. In case of any query or confusion, you can contact to the chapter office.

W IRC is holding Regional Cost Convention every year. This year Regional Cost Convention is called National Seminar. It will be held on I 0th& I Ith February 20 18 at Mumbai with a theme "CMAs Partner in -Vision 2022- for Vibrant India" . I request members and students to join for national seminar to make it a grand success.

The institute is launching Certificate Course on GST Which will be held on Saturday and Sunday at various locations. Ahmedabad is one of the location. I request members to join the course. Details about the course is available on lnstitute's website .

We Gujaratis are known for celebrating festivals. I wish you and your family members a happy and joyful festive season of Uttarayan, Republic day, Maha Shivratri and Holi-Dhuleti.

I wish all a very positive and prosperous new year 20 I 8. May this new year bring lots of happiness for you and your family members.

With Warm Regards

CMA Ashish Bhavsar

Oct-Dec 2017

Brief Profile of Office Bearers CMA Ashish Bhavsar Chairman

CMAAshish Bhavsar a fellow member of I CAI, is academically sound and dynamic person. aged 39 years. He has completed his Cost Accountancy in the year 200 I, with I I 'h rank at national level in the final examination of The Institute of Cost Accountants of India (I CAI).

He has obtained his graduation as well as post-graduation degree in commerce stream from Gujarat University. He is a practicing Cost and Management Accountant since last 15 years. He is founder partner of Ashish Bhavsar & Associates a cost and management accountants firm. He has wide experience in the cost and management which includes costing system design. MIS development. preparation of cost records as per the companies act, cost audit of cost records as per the companies act etc.

CMA Kanaiyalal Mehta Vice Chairman

Associated Member with more than three decades of rich experience in the industrial field in Mid-level position. Worked with I NOX Air Products Ltd (for more than 30 yrs). one of the leading Industrial Gases Company having more than 25 manufacturing units, as a Cost Accountant.

Experience in developing. implementing and monitoring cost accounting system in Fox-Pro and SAP from entry level to reporting level. Practical experience in Financial Accounting, Central Excise, VAT and Service Tax.

At present. he is providing honorary services in Blind People's Association. one of the leading organization working for all types of disabilities. He is also Executive Member.

CMA Haren Bhatt --------------------------------.. Secretary I Chairman : Editorial & Website Committee

CMA Harenkumar Bhatt an associate member of ICAI. He is having 3 I years of rich experience in Pharmaceutical industry in the area of Costing, Pricing. Budgeting, MIS. Finance, Accounts, Cost records, Export incentives. Sales control and its co-ordination etc.

He has served the industries in the different capacity as Controller - Costing and Sales Administration in Dishman Pharmaceuticals and Chemicals ltd. from 2007 to 2015. Genenal Manager-(API -Finance) in Cadila Healthcare Ltd from 1995 to 2007. Manager Costing in Cadila Laboratories Ltd from 1984 to 199 5. Cost Assistant in Ramakrishna mills and Navjivan mills from 1981 to 1984.

• After his last job with Dishman Pharma. he has established own firm named as "MOVE-EXTRA:' which helps in sourcing Pharmaceutical and Chemical materials.

CMA Utkarsh Yagnik Jt. Secretary

Associate member of the Institute having experience of more than seven years in the fields of: Banking I Credit Risk Management I Finance Modeling &Analysis I Costing &Accounting I Teaching

Obtained CMAqualification and completed post-graduation in Commerce from Gujarat University in 20 I 0 Currently working with Yes Bank Ltd as Sr. Manager - Credit Risk Management and handling North & Central Gujarat Region. Past associations include Standard Chartered Bank and CARE Ratings

CMA Malhar Dalwadi "freasurer I Chairman : Finance Committee

CMA Malhar Dalwadi Fellow member of ICAI. He is one of the young partners of M/s. Dalwadi & Associates, Cost Accountants, he belongs to a family having three generations in Cost and Management Accounting profession.

He has obtained his graduation in commerce stream as well as post-graduation degree Master in Business Administration from Gujarat University.

He is having practical exposure of around seven years in the field of Cost & Management Accountancy and wide exposure in the area of statutory cost accounting prevailing in India and Information Technology services. He is actively leading teams in handling various assignments pertaining to Cost audit, Cost Compliances, Management Information Systems. Budget Preparations. Cost Accounting System Implementation, Providing services to the pharmaceuticals companies for the matters relating to N PPA and DPCO, etc.

ICAl-CMA AHMEDABAD

Managing Committee

CMA Upesh Shah

Meml5er.

9825900026 ums.shah@yahoo.com

CMA Pradip Desai

Ex. Officio - RCM

98256 15468 phdesai I 956@gmail.com

CMA Vinod Savaliya Invitee

98250257 16 vinodsavalia@yahoo.com

CMA llaben Patel

Invitee

9824017842 ilapatel I 957@yahoo.co.in

CMA Mitesh Prajapati

Meml5er.

9428480333 mitesh. prajapati3008@gmail.com

CMA Ashwin Dalwadi

Chairman: Professional Development

93270 12175 ashwin@cmadalwadiasso.com

CMA K. D. Shah Invitee

9227259055 kiranshah@torrentpower.com

CMA Rajendra Patel Invitee

9998023323 csrajendra. patel@gmail.com

CMA Uttam Bhandari

Meml5er.

98243665 1 I uttambhandari@hotmail.com

CMA P. D. Modh

Chairman: Oral Coadi1ng

9727767574 pdmodh I 151@gmail.com

CMA H. C. Shah

Invitee

9375037 150 hcs2552@yahoo.com

CMA Amit Modh

Invitee

997903795 1 advartmodh@gmail.com

CMA Manish Analkat Chairman : Computer & Soft Skill

9825599473 mba7 I 03@yahoo.co.in

CMA Prof. S. S. Shah

Chairman : Training & Placement

9824339003 ssshah_ hl@yahoo.co.in

CMA R. B. Kothari

Invitee

99252 10288 gmf@ugvcl.in

Hetvi P. Patel

Student' Rep

8200 125970 hetvipate12348@gmail.com

Oct-Dec 2017

Reverse Charge Mechanism under Goods and Service Tax in India CA CMA Fenil Shah E-mail: hello@cafenil.in

The ultimate aim of GST act and demonetization has been to curb the black money and get the people of India in a proper legalized channel base wherein there are next to negligible ways to create or utilize the black money. It is a fact that none of the economy has ever been or ever be able to curb black money I 00%, but a reduction of I% in black money circulation does result into increase of I% in clean money circulation, but the hidden effect of it is that a) the money which gets deposited into bank can get utilized for further loans. b) money which is given as loan to the business houses helps them to grow. c) money given on loan to friends I business partners helps everyone to grow, in addition to increase in spending by the younger people of youngest country of the world. Spending is the power which has been ruling, and which will be ruling the world economies over the next centuries to come.

Goods and Services Tax has got implemented in India from I" July, 20 17 covering all types of goods and services whether provided directly or indirectly for a consideration or without a consideration except Petroleum Products, Alcohol, sale of land, subsequent sale of building. actionable claims, and many other services which have been specified in the act, and notifications released there under.

An economy dependent on only fortune 500 companies can never survive forever as the perks which they can get for being big hunks of the economies can result into the negative impact of the economy; and also can squeeze out the money; time; energy and efficiency of the people of the economy and fill the pockets of the only few fortune 500 companies.

If the act is implemented in the same manner, than it would mean that any person dealing in whatsoever goods or services, wi ll be required to get registered under GST. and will result into legal activities and maintenance of records for all businesses which can result into hindrance in growth of small and medium enterprises. To boost the small and medium enterprises section 22 of the Act provides that Persons having aggregate turnover ofless than Rs. 2 Millions (Rs. I Million for special category states (specified under sub-clause (g) of clause 40 of article 279A of the constitution of India) are not required to get registered under GST keeping in provisions of the sections 2 4, and relevant notification released.

Till date, no one has ever been able to know or share about the amount of black money stashed somewhere (e.g. Swiss Banks, Tax Havens), invested in some manner (e.g. Real Estate). or in circulation. GST would have been able to curb some of this black money with the help of act and rules thereof; but at the very same time it is essential for us, to not let the clean money economy go down. It has to be a situation wherein black money economy goes down and clean money economy takes the benefit of additional circulation and overall economy growth happens. which can be used for ultimate economy development, and making India a Super-power.

We all know that Indians are known as "jugaado". To let the

ICAl-CMA AHMEDABAD

jugaad happen and also have an idea of the economy which is not covered under the GST, section 9 (3) and section 9(4) has been inserted. These are the two powerful sections of the act, which can help in having an idea of the economy which is not covered underGST.which had been implemented from !"July, 20 17;and after numerous requests from businesses and on the basis of recommendation of the GST Council vide Notification No. 38/20 17 - Central Tax(Rate) dated 13"' October, 2017; Reverse Charge Mechanism under section 9( 4) is removed ti ll 3 I" March, 20 18.

What is Reverse Charge Mechanism?

Generally. the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

So, a scenario wherein the supplier of goods or services isn't registered under GST, but the person who is recipient of goods or services if registered under GST, has to pay GST as if he has received the supply from registered person. Putting this into an example:

Scenario I:

Mr. Hiren, ofValsad buys Stainless Steel Nuts and bolts worth Rs. 0.2 Million (without Insurance and Freight) from Mr. Kumar, of Vadodara.

The goods are transported from Mr. Kumar's factory in Vadodara, to the factory of Mr. Hiren situated at Valsad in the truck owned by Mr. Kanubhai on I O"' September, 2017.

Mr. Kanubhai has raised a bill of Rs. I 0,000/- to Mr. Hiren for transportation of goods from Vadodara to Valsad.

Mr. Kanubhai is a Goods Transport Agency (GTA) and he is not having any other source of income. The recipient of GTA services is required to pay GST on reverse charge basis; thus, Mr. Kanubhai hasn't taken registration under GST Act.

In this case, since Mr. Hiren is recipient of services of Mr. Kanubhai, he is liable to pay Tax on Reverse charge basis in the month in which service is availed viz. September.

This tax is to be paid by Mr. Hiren through his cash ledger while filing of return for the month of September, and the input credit of tax paid of Rs. 500/-(5% of Rs. I 0,000/-) will be received by Mr: Hiren inthe month of October, 20 17.

Conclusion: This scenario is covered u/s 9(3) of the CGST /SGST (UTGST) and u/s 5(3) of the IGST Act. This section provides for specified services, in which the service provider isn't required to collect tax from recipient of service and pay to the government. but the recipient of service is required to pay tax on behalf of service provider and getthe input credit of the same.

GST is a Consumption based tax, and to take care that the tax paid by Mr. Hiren doesn't add up in the cost of the goods, input tax credit is given to Mr. Hiren. But at the very same time, with this compliance, government mechanism now has a database of what is the total revenue earned by transport industry (area­specffic, person-specific, goods-specific): which when utilized in a proper manner, can help to find out the transactions which aren't properly reported to government through either of the Direct or Indirect Tax mechanism.

Note: This section is still in place and it includes number of seNices like • Goods Transport Agency,

Import of Goods, • SeNices from Advocate, • Arbitral liibunal. • Sponsorship seNices, • SeNices of government or local authority excluding renting,

postal. road, rail transport, etc. • SeNice by a director to the company

Insurance agents Recovery agents

• Vessel seNices used for import of goods • Transfer or permitting use or enjoyment of Copyright activity

of Author, Music, Composer, Photographer, artist, etc. Radio Taxi or passenger transport seNices.

And goods like: • Cashew nuts (not shelled or peeled) • Bidi wrapper leaves • Tobacco leaves • Supply of lottery by state government. UT, or any local

authority • Silkyarn

Scenario2:

Continuing with the same example as given in scenario I , Mr. Kumar is also not registered under GST. as he is having aggregate turnover of Rs. I Million in FY 20 16 - 2017 and of Rs. 0.3 Million in FY 2017-2018, as of IO'" September, 2017; on which he is selling goods to Mr. Hiren.

In this case, since Mr. Hiren is recipient of goods from Mr. Kumar, who is not registered under GST by taking benefit of section 22, read along with section 24. Thus, the goods supplied by Mr. Kumar are without any GST. The bill issued by Mr. Kumar to Mr. Hiren of Rs. 0. 2 Million will be without any GST.

This scenario gets covered u/s 9( 4) of the CGST /SGST (UTGST) and u/s 5( 4) of the IGST Act: which has got omitted till 31 " March, 20 18.

Reverse charge mechanism says that a person who is registered under the act, if receives any supply from a person who is not registered under the act, has to pay tax on reverse charge basis and he shall avail the input credit of the tax paid by him in the next month.

So, in our scenario Mr. Hiren is required to paytax@ 12% on Rs. 0.2 Million viz. Rs. 24,000/-on reverse charge basis in the month of September, 20 17; and he shall be eligible for claiming of input credit of Rs. 24,000/- paid on RCM basis.

Conclusion: This scenario is covered u/s 9( 4) of the CGST /SGST (UTGST) and u/s 5( 4) of the JGST Act. This section provides that every registered person has to pay GST to the government for every supply of taxable goods or seNices.

Section 9(4) helps in identifying the volume of economy which isn't registered under GST, in addition to bringing a relief to small business units of complying with the various provisions of the Act.

As said earlier, section 9( 4) is the section which can help in curbing of black economy and making India a manufacturing hub which shall in addition to providing ease of doing business, doesn't let the consumers of the country get burdened with cascading of taxes and improvise spending in clear economy resulting into India becoming a stronger economy.

CA CMA Fenil Shah E-mail: hello@cafenil.in

OBITUARY ICAI Ahmedabad Chapter's Managing Committee Members, Members & Staff deeply mourn the demise of Sh ri Navin Kumar Bhandari Associate Member (M-2 4 5 54) who left for heavenly abode on 2"" Nov 20 17 attheageof 47 years.

CMA Navin Bhandari

He was born on 5"' April 1970. He was practicing cost accountant and learned professional of Banking and financial sector plus having gain knowledge of stock market being proprietor and running own Share and Stock firm and also active participant of all programs of Ahmedabad Chapter.

Managing Committee Members, Members and Staff of Ahmedabad Chapter PRAY ALMIGHTY that his soul may rest in eternal peace.

'~bsence and death are the same - only that in death there is no suffering." Theodore Roosevelt

Oct-Dec 2017

Comparison between The Companies (Cost Records and Audit) Amendment Rules, 2017 & The Companies (Cost Records and Audit) Amendment Rules, 2014 Compilation by : CMA Ashish Bhavsar & CMA Malhar Dalwadi

Para

I . Material Cost

2. Employee Cost

3. Utilities

4. Direct Expens

5. Repairs and Maintenance

6. Fixed Assets and Depreciation

Point No Amendment Rules, 2017 Amendment Rules, 2014

( e) Spare parts shall be recognised as property, plant and equipment when they meet the definition of property, plant and equipment and depreciated accordingly. Otherwise, such items shall be classified as inventory.

Spares which are specific to an item of equipment shall not be taken to inventory, but shall be capitalized with the cost of the specific equipment. Cost of capital spares and or insurance spares, whether procured with the equipment or subsequently, shall be amortised over a period, not exceeding the useful life of the equipment.

(k)

(b)

(I)

(1)

(h)

(n)

(b)

Subsidy or grant or incentive and any such payment received or receivable with respect to any material cost shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Issues shall be valued using appropriate method as per the provisions contained in the accounting standard applicable for the time being in force.

Subsidy or Grant or Incentive and any such payment received or receivable with respect to any material shall be reduced from cost for ascertainment of the cost of the cost object to which such amounts are related.

Issues shall be valued using appropriate assumptions on cost flow, e.g. First-in-First-out, Last-in-First-out, Weighted Average Rate. The method of valuation shall be followed on a consistent basis.

Employee Cost shall be ascertained taking into account the Employee Cost shall be ascertained taking into account the gross pay including all allowances payable along with the cost to gross pay including all allowances payable along with the cost to the employer of all the benefrts. including the cost of theemployerofall the benefits. retirement benefits charged in the financial statements in an accounting period. In case of companies to which Indian Accounting Standards apply, any re-measurement of such costs recognised in other comprehensive income shall not form part of the employee cost.

Subsidy or grant or incentive and any such payment received or Any Subsidy. Grant, Incentive or any such payment received or receivable with respect to any employee cost shall be reduced receivable with respect to any Employee cost shall be reduced from cost of the cost object in the financial year when such for ascertainment of cost of the cost object to which such subsidy or grant or incentive and any such payment is amountsarerelated. recognised as income.

Subsidyorgrantor incentiveandanysuchpaymentreceivedor Any Subsidy or Grant or Incentive or any such payment receivable with respect to any cost of utilities shall be reduced received or receivable with respect to any cost of utilities shall from cost of the cost object in the financial year when such be reduced for ascertainment of the cost to which such subsidy or grant or incentive and any such payment is amountsarerelated. recognised as income.

Subsidyorgrantorincentiveandanysuchpaymentreceivedor Any Subsidy or Grant or Incentive or any such payment receivable with respect to any direct expenses shall be reduced received or receivable with respect to any Direct Expenses from cost ofthe cost object in the financial year when such shall be reduced for ascertainment of the cost of the cost object subsidy or grant or incentive and any such payment is to which such amounts are related. recognised as income.

omited

Subsidy or grant or incentive and any such payment received or recervable with respect to repairs and maintenance activity shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

The depreciation and amortisation shall be the amount recognised as an expense for the year in the financial statements, which shall be measured as per the provisions contained in Schedule II of the Companies Act, 2013 and the accounting standards applicable for the time being in force. The amount of Depreciation and Amortisation not recognised as expense in the financial statements shall be treated as a non-cost item.

High value spare, when replaced by a new spare and is reconditioned, which is expected to result in future economic benefrts, the same shall be taken into stock. Such a spare shall be valued at an amount that measures its service potential in relation to a new spare which amount shall not exceed the cost of reconditioning the spare. The difference between the total of the cost of the new spare and the reconditioning cost and the value of the reconditioned spare should be treated as repairs and maintenance cost.

Subsidy or Grant or Incentive or amount of similar nature received or receivable with respect to repairs and maintenance activity, if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related.

"Depreciation and Amortisation shall be measured based on the depreciable amount and the useful life. The residual value of an intangible asset shall be assumed to be zero unless: I) there is a commitment by a third party to purchase the asset at the end of its useful life: or ii) there is an active market for the asset and:a. residual value can be determined by reference to that market; and b. it is probable that such a market will exist at the end of the asset's useful life. c. The residual value of a f1Xed asset shall be considered as zero if the entity is unable to estimate the same with reasonable ..

ICAl-CMA AHMEDABAD

Para 6. Fixed Assets

and Depreciation

7. Overheads

8. Administrative Overheads

I 0. Royalty and Technical Know-how

I I . Research and Development Expenses

12. Quality Control Expenses

13. Pollution Control Expenses

14. Service Department Expenses

IS. Packing Expenses

16. Interest & Financing

Charges

Point No (d)

(e)

(h)

(e)

(d)

(b)

(g)

(p)

(n)

(h)

(I)

(a)

Amendment Rules, 201 7 Impairment loss on assets shall be excluded from cost or production/service.

Spare parts. stand-by equipment and servicing equipment shall be recognised as property. plant and equipment when they meet the definition of property, plant and equipment and depreciated accordingly. Otherwise, such items shall be classified as inventory.

Following PARAs ©, (d), (e), (I), (g), (h), (i), (k), (I), (m), (o), (p), (q), (r), (t), (u) & (v) ommited from Rules, 2017 as compared to Rules, 20 14

Amendment Rules, 20 14 Impairment loss on assets shall be excluded from cost of production.

Spares purchased specifically ror a particular asset, o r class of assets, and which would become redundant if that asset or class of asset was retired or use of that asset was discontinued, shall form part of that asset. The depreciable amount of such spares shall be allocated over the useful life of the asset.

Subsidy or grant or incentive and any such payment received or Any subsidy or Grant or Incentive or amount of similar nature receivable with respect to overheads shall be reduced from received or receivable with respect to overheads shall be cost of the cost object tn the financial year when such subsidy reduced for ascertainment of the cost of the cost object to or grant or incentive and any such payment is recognised as which such amounts are related. income.

Subsidy or grant or incentive and any such payment received or receivable with respect to any administrative overheads shall be reduced rrom cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable with respect to amount of royalty and technical know-how fee shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable with respect to any quality control cost shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable with respect to pollution control activity shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable withrespect to any service cost centre shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable with respect to packing material shall be reduced from cost of the cost object in the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Subsidy or grant or incentive and any such payment received or receivable wrth respect to packing material shall be reduced rrom cost of the cost object m the financial year when such subsidy or grant or incentive and any such payment is recognised as income.

Issue of packing materials shall be valued using appropriate method as per the provisions contained in the accounting standard applicable for the time being in force.

Finance costs are interest and other costs incurred by an entity in connection with the financing arrangements and shall be measured in accordance with the accounting standards applicable for the time being in force.

Any Subsidy or Grant or Incentive or any amount of similar nat ure received o r receivable w ith respect to any Administrative overheads shall be reduced for ascertainment of the cost of the cost object to which such amounts are related.

Any Subsidy or Grant or Incentive or any such payment received or receivable with respect to amount of Royalty and Technical Know-how ree shall be reduced to measure the amount of royalty and technical know- how fee.

Subsidy or Grant or Incentive or amount of similar nature received or receivable with respect to Pollution Control activity, if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related.

Subsidy or Grant or Incentive or amount or similar nature received or receivable with respect to Pollution Control activity. if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related.

Subsidy or Grant or Incentive or amount of similar nature received or receivable with respect to Pollution Control activity, if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related.

Any Subsidy or Grant or Incentive or any such payment received or receivable with respect to packing material shall be reduced for ascertainment of the cost to which such amounts are related.

Any Subsidy or Grant or Incentive or any such payment received or receivable with respect to packing matenal shall be reduced for ascertainment of the cost to which such amounts are related.

Issue of packing materials shall be valued using appropriate assumptions on cost flow, namely: First In First Out, Last In First Out, Weighted Average Rate. The method of valuation shall be followed on a consistent basis.

Interest and Financing charges are costs incurred by an enterprise in connection with the borrowing of fund or other costs which in effect represent payment for the use of non­equity fund.

( d) Subsidy or grant or incentive and any such payment received or Subsidy or Grant or Incentive or amount of similar nature receivable with respect to finance costs shall be reduced from received or receivable with respect to Interest and Financing cost of the cost object in the financial year when such subsidy Charges, if any, shall be reduced to ascertain the net interest or grant or incentive and any such payment is recognised as and financing charges. income.

Oct-Dec 201 7

PART-A I. General

Information

I . General Information

PART- D

Point No

10

11

Amendment Rules, 20 17

Level of rounding used in cost statements (in INR) -Absolute/thousands~acs/crores

"Whether Indian Accounting Standards are applicable to the company - Yes/No"

Amendment Rules, 2014

Level of rounding used in cost statements - Absolute/ thousands~acs/crores

Reporting currency or entity-INR

4. Financial Position and Ratio Analysis (for the company as a whole)

NOTES ADD

" I ) In this table, in case of companies to which Indian In this rule these notes were not available Accounting Standards apply:a) Share Capital shall mean 'Equft:y Share Capital'b) Reserves and Surplus shall mean 'Other Equity.'c) Long Term Borowings shall mean'Borrowing under Non-Curent Liabilities'd) NetFixed Assets shall mean the sum total of 'Property, Plant and EquiPment', 'CaPital Work in Progress', 'Goodwill', 'Other intangible assets', 'Intangible assets under development' and 'Biological assets other than bearer Plants'."

The Companies (cost records and audit) Second Amendment Rules, 20 17 ~ '!lo ti• 'ta•-3l00-l199 REGO. NO. 0 . L.-330%'99

:1 ••~a I~·~"" ~he <Ga~ette of ..3ndia

li. 111121 No. J012J

3'llT1m11T

EXTRAORDINARY

qf'l U-"JVW 3-311~ (I )

PART 11-Scdfon 3-Suh-.sec:lion ti}

vrfwmil~ PUBLISHED BY AIJTHORrt"Y

"'~. 'i"""· ~ 20, 2017/~ 29 , 1939 Nt: W DEi.Hi. WP.ONESDA Y, OECEMllER 20. 2017/ AGRA HA YAN A 29, 1939

MINISTRY 01' CORPORATE AFFAIRS

NOTIFICATION

New Delhi , 1ho 20th De<:embcr. 2017

G.S.K- 1526(E).-1.n exercil)C or1he powen:; cQnlC1·1·cd by :-.ub-,.ections (I) and (2) or .~"'Ct ion 469 ~ind scc1ion 1~8 or the Companies Act. 2013 (18 of 2013) (hcroinurtet referred as the Ac1). the Ccnm1I Government her.:by makt.s 1.he following rule~ funhcr to mncm.l the Companie...; (CO~I rcc..X>rds and audit) Rules. 2014. namcly:-

1. These rules may be called the Companies foost records and audit) Second Amcudmcn1Rules.2017.

1. In 1he Companiei, (cos1 record:; and :1udit) Ruleto:. 2014 (he1·eio:lner referred tons the l}l'incipal rules), in rule 2, for clause (na) the fol lowing clause ~hall be S"ubsrituu:d and :-.hall b~ deemed lO have been bubMitutcd with e.ffec1from1hc I" day of July. 2017, namely:·

tan) '·Customs Tariff Act Heading .. means the heading as referred to in the Additional Notes in I.he First Schedule 10 1hc Cus1oms Tori ff Ac1. 1975 (51 of 1975).

3. In t.he princi1>al rules. in 111h; 3, for tbc words '"Central Excise Tariff Acl Hcadingn, occurring 31 bolh Lhc places., the words :'Customs Tariff Acl Heading" shall be substhu1cd and s:haJI be deemed to have been subS1i1U1ed wilh effec1 from the 1• day of July. 2017.

4. l111he princi1}flJ rules. in the Annexurc. in Form CRA-2. Fonn CRA·3 and f<>rm CRA-4. for the word~ 1'CE1'A Heading". 'vhere ... er it occurs. the words "CTA Heading" shall be sub.~cituted and shall be deemed to have been suhsritmed with effect from the I.! day of July. 2017.

IF. No. 1140/201 >-CL-VJ

AMARDEEP SINGH BHATIA. J1. Secy.

Explanatory Memorandum: h is cenHied thtu no person is being adver~ly affected by ghring re1rospecdve effect m this noiific.mion. The proposed ::unendme.ms ha,·e been mad~ on accoun1 or enactment of d>eCen1ral Goods and Service.< Tax Ac1. 2017 ( 12 of 2017).

Nole : The princi1)aJ rules Wt!re pttbli5hed in the Gazeue of India, fxtrnordinary. Pan JL Section 3, Sub-sectit)n Ci). ~·idt numl)e.r G.S.R. 425(B). d:ued llle 30111 J I.Ille. 2014 and runended l 1idc number G.S.R. Ol(E), diOlcd 1hc 31• December, 2014 and 1•ide number G.S.R. 486(E). dale<I 1hc 12°' lune. 2015 And ride number G.S.R. 6')5(E). da1ed 1he 14" July. 2016 and 1•ide number G.S.R. 1498(E). dMcd 1he 7'' Dc-ccmber. 2017.

RAKESH SUKUL

Uplc>:ii:le..1 bi 0 11.":. <>f Pril'iliug ;i1 G•Yo'<mn\1; 111 <>f lndi:1 ~. Rio_g R(l(t(l, M:t)'lkpuri. New 01.ihi~11C)()µ 11.nd Publi.sbcd by lbe Controller of POOli1.'4ILions, Oclh1· 11()0.5-t

ICAl-CMA AHMEDABAD

~.:::

Central government has notified "Public Procurement (Preference to Make in India), order 2017" on 15th June ,2017. This order is issued pursuant to Rule I 53(iii) of general Finance Rules 2017.Para 9(b) of the order stipulates that if the procurement is for a value in excess of Rs. I 0 crores ,the local supplier is required to provide certificate from the Statutory Auditor/ Cost Auditor( in case of the company) or from a Practising Cost Accountant I Chartered

(Other than the

Accountant Company) giving percentage of local content.

Achievements

CMA Neeraj Jangid CMA Young Achiever Award-2016 under the Category of Public-Service Sector (Large-male)

CMA Hetal Shah Certificate of merit for ''CMA Achievers Award-20 16 under the Category of Private-Manufacturing Sector (Large-male)

CMA Hiranand Savlani Certificate of mer it for CMA CFO Award-2016 under the

Category o f Private- Manufacturing-(Large - Male)

CMA (Dr. ) Paresh Shah, ( M/ 7386) Co-chair the Technical Session on the theme of "Entrepreneurship, Industry Perspectives and Strategy" in International Conference On Management Cases" j ointly arranged by George Masons University, Schar School o f Po l icy and Government , Virginja, USA and BIMTECH, India. The session has been chaired along w ith senior Prof. (Dr.) Paivi Eriksson, Professor of management in the Business School at the University of Eastern Finland Business : School: Aalto University and University of Tampere in Finland and also presented a case entitled "Financial Decision Making Strategy" in the theme of "Organization Decision Making'' in International Conference on Management Cases".

for clearing Insolvency & Bankruptcy Professional exam

CMA George Samuel CMA Dakshesh Chokshi CMA J B Mistri

O ct-Dec 201 7

Campus Placement ... A bridge between an industry and

Final CMA examination passed students.

CMA Prof. S. S. Shah Chairman : Training & Placement

Educating, Preparing and positioning the students in an Industry for their professional carrier is primary object of our institute. With this object WIRC pioneered the activities of campus placement and based on the success, our Institute initiated to organize it as a regular feature forthe final examination passed students at four metro cities oflndia. In the year 2013, I gotthe privilege to have first campus placement at our chapter with the special approval from our institute along with other venues. Since then our chapter is regularly organizing campus placement for our students.

This year the Management Committee of Ahmedabad chapter has nominated me to be a Chairman of Students Training and Placement Committee and within a fortnight of taking over charge first campus under the new team was organized on IO'" November, 20 17. We are indebted to the companies and members of our institute who have helped to organize the campus placement in a short notice period. Really on my personal behalf and on behalf all the members of Students Training and Placement Committee and on behalf of Ahmedabad chapter I am heartily thankful to the companies and members who have contributed making campus a successful event.

Briefing session for the students was organized on the day of the campus and our chapter chairman CMA Ashish Bhavsar presided over as a chairman of the session. Prof. CMA SS.Shah in a lucid language explained to the students about the history of the campus and how one should be prepared for the campus and what one should keep in mind while answering the questions during the campus. He also explained about the importance of campus for the students and conveyed a strong message to the students that you all are ambassador of our chapter and in turn of our institute and hence one should strive for excellence and be excellent performer. He added that you have now an opportunity to apply the theory you have learned for practical problems and in a process you must cultivate the attitude of penetration in a process of learning in any of the organization irrespective of the domain of the work assigned. CMA Ashish Bhavsar explained in brief the practical areas where CMA's can play an important role in an industry to exhibit the excellence and how the campus can play an important role in your new journey towards corporate world. CMA K. M. Mehta, the Vice Chairman of the chapter in his concluding remarks said that chapter is a platform between an industry and students and we will put our best efforts to arrange such campus on a frequent basis. CMA Haren Bhatt passed vote of thanks.

In a session of the company presentation, the representatives of six companies very nicely explained to the students the profiles of their respective company, their expectations from the students, their requirements and the process they will follow for selection. In this session RCM CMA Pradip Desai, CMA Vinod Savalia, CMA MalharDalwadi, expressedtheirviews on campus.

The following table summarizes the details of the campus outcome.

Name of the company No. of students selected

Astral Pipes Ltd. 4

Care Ratings Ltd. 2

Sahjanand Laser technology Pvt. Ltd. 2

Diligent Tech India Pvt. Ltd.

Tata Motors Ltd.

Cadila Healthcare Ltd.

Kiran J Mehta & Co.

ICAl-CMA AHMEDABAD

I

I

Confirmation awaited

Confirmation awaited

DON'T STUDY TO EARN STUDY TO LEARN

WHAT YOU LEARN TODAY IS WHAT YOU WILL

BECOME TOMORROW ...

List of participants selected CMAs in Campus Placement

Jamin Baheti

e L&T Construction

jay N Patel

~ ~~~~

Mohammadyasin Ansari

~Dili~~nt

ATWIRC

.

• .

. I ., ..

~· ~ -~

.I.. I ,

Shweta A Suchdev

e L&T Construction

Kuldeep Parmar

.t-. ~~~~

Nisha Divakar

TATA MOTORS

Parth Rakeshkumar Thakar

··~ I WU T~HOl001' tTD

Viraj V Soni

e L&T Construction

Vimal Nagar

A ASTRAL -~,!! .. __

Meetali A Shekhavat

~~Ratings l'mfecsk11UI RitJ. Opu:iom

Vivek Dhirenbhai Vyas

MohitAhuja

~vedanta

Sweta Nileshkumar Modi

~ ~~~~

Ahesanali Asamdi

~~Ratings 1•mfC11.-lmul R 1t,\; Opnh111

- ·\­Congratulation for successful completion of June-2017 Examinations

Ankit Bharatkumar Tapiawala Rank21"

Shweta Anantkumar Suchdev Rank 43'd

Jay Kishorekumar Rajwan Rank 30"'

Soham Pradipkumar Makwana Rank 33'd

FOUNDATION PASS INTERMEDIATE COMPLETE PASS FINAL COMPLETE PASS

S.NO. NAME OF STUDENT S.NO. NAME OF STUDENT S.NO. NAME OF STUDENT

I Shingala Kishan Dhanjibhai I Priyesh Rajeshbhai Gohel I Ahesanali Kausharali Asamdi 2 Ashish Surendra SiMh Raiout 2 Bhaumik Mukeshbhai Gaiiar 2 Faivaz Mahmmadhanif Chauhan

3 Manisha Deepak Agarwal 3 Bhavesh Kirtikumar Tailor 3 Gaurangi Natvarlal Patel 4 Yashna Ashishkumar Soni 4 Darshit Nileshkumar Shah 4 Gaurav Vinayak Lahane

5 Bushra Badreaalam Saleh 5 litendra Hiralal Kalal 5 Jay Nimeshbhai Patel

6 Purvesh Nikulkumar Khatri 6 Jyoti Mukeshkumar Choithani 6 Krishna Bharatkumar Shah

7 Honey Jugalkishor Keila 7 Kamlesh Harishbhai Ramchandani 7 Mauli Jigneshkumar Desai 8 Julee Nareshbhai Khatri 8 Karishma Ghanshyambhai Lohana 8 Rajvi Bhadreshkumar Modi 9 Dheeraj Jagdishbhai Pawar 9 Kavita Jethalal Aswani 9 Mohammadyasin Ayazahmed Ansari 10 Maherbanali Hasamali Palsaniya 10 Ketankumar Kanaiyalal Vankani 10 Nidhi Manishkumar Shah

II Mahima Vinoclbhai Patil II Krishna Narendrabhai Jani 11 Ni~ar Rajendrakumar Thaker

12 Hussain Abbas Maknoiia 12 Mahesh Ghughabhai Solanki 12 Parth Rakeshkumar Thakar 13 Sumit Umashankar Sharma 13 Mayur Harsukhbhai Savalia 13 Shefali Chetankumar Parikh 14 Hirai Mansukhbhai Pankhaniva 14 Nidhi Vasantbhai Thakkar 14 Sweta Nileshkumar Modi

15 Uttamkumar Manaharbhai Hirapara 15 Shaily Ketankumar Shah 15 Ved Ajaybhai Desai

16 Satyndra Bhagwansahay Meena 16 Vinay Kumar Marda 16 Viraj Vijaybhai Soni 17 Dharangee Kiritkumar Patel 17 Vrajesh Jayeshbhai Mehta 17 Vivekkumar Dhirenbhai Vyas

18 Mukesh Gordhanbhai Rajpurohit 18 Heena Tikam Keswani 18 Harshil Shaileshkumar Shah

19 Honey K Patel 20 Rishabh Pankaj Jain

19 Soham Pradipkumar Makwana 20 RArun Gokul

19 Hitenkumar Champaklal Parmar 20 Jaimin Dilipkumar Shah

21 Rahul Dineshbhai Chauhan 21 Sakina Huzaifa Lokhandwala 21 Kuldeep Jesangbhai Parmar

22 Bhadauria Kishan Sin2h R 22 Abhishek Jagdishbhai Khatri 22 Nisha Naresh Divakar

23 Asha Mahendrasinh Raol 23 Gita Jayantilal Ramoliya 23 Viraj Sanjaykumar Patel

24 Sabera Banu Akbar Bhai Malpara 24 Jay Kishorekumar Rajwani 24 Bhavik Rameshbhai Mathukiya

25 Dhirai Santoshbhai Kaore 25 Kishan Sushi! Agarwal 25 Jhanvi Javesh Buch

26 Mahima laS1adishbhai Patel 26 Sanket Ketanbhai Shah 26 Kuldeep Vijaykumar More

27 Rashmi Singh 27 Shalin Atulbhai Chaudhari 27 Gaurav Sandeep Bajpai 28 Fatema Sugra Jahidmiya Bukhari 28 Ankit Bharatkumar Tapiawala 29 Madhu Kajal Hiteshkumar 29 Chirag lshvarlal Pandya

30 Shweta Anantkumar Suchdev

Welcome New Members Member Ship No. Member Name Member Ship No. Member Name

42730 jagdishbhai Maganlal Gurjar 43280 Riddhi Parth Pandya 4275 1 Panka' Maheshkumar Raval 43287 Hareshkumar Sham'ibhai Suthar 42754 Hasit Mahendra Chokshi 43426 Bhailalbhai Keshavlal Panchal 42777 Shaileshkumar Hiralal Rathod 43506 A ush San·a Shah 42835 Sagar Popat Dhiwar 436 12 Anjanikumar Neeraj 429 12 Vinodkumar Ramnave· Yadav 436 13 Dhara Niranjankumar Jani 43077 Da aben Nanubhai Patel 43638 jimis Satisbhai Shah 4308 1 Dhaval Girishbhai Shah 43642 Poonam Laxmishankar Nawani 43 156 Nikhil Rathi 43655 Harshil Shaileshkumar Shah 43 188 Manish Kanubhai Vachheta 43657 Hardik Bhu endrabhai Chokshi 43277 Megha Hardik Dawda

ICAl-CMA AHMEDABAD

Events

Workshop on 'Competition Law:

Cartel Enforcement & Leniency' (I I •h November, 2017)

(at AMA-Ahmedabad Management Association)

GST - Current Scenario & Issues (OT" December 2017)

UPCOMING EVENTS

I . Discussion on Draft CAS4 Lead by CMA Ashwin Dalwadi Date : I 1-01-2018 Thursday Time : 6.00 pm to 8.30 pm CEP Hours : 2 Fees : ~ 200/- (Incl. GST)

2. Lecture Meeting on The Companies (cost records and audit) Second Amendment Rules, 2017 Speaker I Presenter - CMA Ashish Bahvsar Date : 20-01-2018 Saturday Time : 6.00 pm to 8.30 pm CEP Hours : 2 Fees : ~ 200/- (Incl. GST)

3. Rendezvous with Insolvency Professionals CMA Dakshesh P Choksi , CMA George Samuel & CMAJ B Mistri, Date : 22-01-2018 Monday Time : 6.00 pm to 8.30 pm CEP Hours : 2 Fees : ~ 200/~ (Incl. GST)

First ever an Exclusive program by CMA Ladies

W~Y(NG Women Professionals & Entrepreneurship'

by Shaina Shah, Chartered Accountant, an actress and editor, Painter and CSR &

Business Head at ICECD - International Centre for Entrepreneurship and Career Development

Other Details will be given soon ...

Venue: Chapter Office, Navrangpura, Ahmedabad.

Oct-Dec 20 17

Process for Application & Renewal of Membership

t!i; ;1 tij!iiM~ijil;Hi iM:J; M: ii~

® www.icmai.in

Member Section ® ® Online Membership

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Scan Documents > Occupational Address

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If undelivered, Please Return to : The Secretary,

/'r"~\ THE INSTITUTE OF COST = : ACCOUNTANTS OF INDIA ~ 5:1 AHMED ABAD CHAPTER 402/403, Shoppers Plaza Unit - Ill, 4th Floor, Opp. Municipal Market, C.G. Road, Navrangpura, Ahmedabad-380 009. p : 079-2640 3616, 2640 9561

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