Rs.

5/- (Single Copy)

Volume : XXV
Pages 1 - 48
April 2008

INSIDE
u From the President
u Academic Guidance
u Legal World
u Student Services
u News and Announcements

4
Visit our Website : www.icsi.edu

GUIDELINES FOR SEEKING EXTENSION OF
REGISTRATION
EXECUTIVE PROGRAMME EXAMINATION
No extension of registration will be allowed to any student if he/she has
not passed/completed the Executive Programme (Inter) examination during
the validity of registration period. All such students will have to seek
registration de novo only.
PROFESSIONAL PROGRAMME EXAMINATION
1. Students whose registration expires between 28th/29th February and
31st May and between 31st August and 30th November will be allowed
extension of time without payment of extension of registration fee for the
limited purpose of appearing in the ensuing June or December exami-
nation, respectively, as the case may be.
2. Registration of a student may be extended beyond a period of five
years on year-to-year basis for appearing in the Professional Pro-
gramme (Final) examination:
(i) if he/she has completed postal/oral coaching and has been issued
with coaching completion certificate for all modules (groups) of
the Professional Programme examination (Final) under new sylla-
bus during the validity of the previous registration period or has
passed at least one module (group) of the Professional Programme
(Final) examination under the New Syllabus during the validity of
the previous registration period as the case may be; and
(ii) makes an application for extension of registration period along with
requisite fee within six months from the date of expiry of registration
or within six weeks of the declaration of results of the last examina-
tion in which he/she appeared, whichever is later.
3. Extension of registration shall be granted for one year at a time on pay-
ment of extension of registration fee of Rs. 500 per annum, arrears of fee,
if any, under the previous registration and service charges @ Rs. 150 per
module (group) for which the student has not been issued with the coach-
ing completion certificate for the Professional Programme (Final).
4. On the students application for extension of registration being accepted
by the Institute, the extended period will be counted in continuation of
his previous registration. He/she will also continue to bear the same
registration number.
5. No candidate will be allowed more than two extensions including the
extension, if any, already availed under old/new syllabus for completing
Professional Programme (Final) examination under the new syllabus.
6. A student who completes the Professional Programme (Final)
examination (of the Institute) during the extended period of registration
will be required to comply with the practical experience and practical
training requirements as stipulated under Company Secretaries
Regulations, 1982 and guidelines framed there under in this regard.
7. Study material will not again be supplied on seeking extension of registration.
However, it can be had on payment of Rs. 160 per subject.
8. A student, on being granted extension of registration, shall be eligible
to get the Student Company Secretary from the month next to the
month in which his application for extension of registration is accepted
by the Institute.
9. The Secretary - on being satisfied that application of any of the
guidelines cause undue hardship to a candidate - may relax any of the
said guidelines by recording reasons in writing.
GUIDELINES FOR REGISTRATION DE NOVO
(Registration de novo pursuant to regulation 22 read with sub-
regulation (2) of regulation 24.)
(A) Guidelines for candidates seeking registration de novo within
two years of the expiry of previous registration.
1. A person whose registration has been cancelled on expiry of five-
years period or otherwise may within two years of cancellation of
former registration seek registration de novo on payment of the
following fees:
(i) Registration fee: Rs.1500 (w.e.f. 1.4.2008)
(ii) (a) Where a student has not completed coaching for both
modules (Groups) of Executive Programme (Intermediate)/
all modules (Groups) of Professional Programme (Final),
balance of Rs.5,000 of the postal tuition fee if enrolled for
Executive Programme (Intermediate) or balance of Rs.
7,500, if enrolled for Professional Programme (Final), as
the case may be, after adjusting the amount paid on this
account earlier. However, credit for having completed
coaching in a particular module (Group) may be given if
the coaching completion certificate has not been issued
due to invalid registration or any other reason.
(b) Postal tuition fee of Rs 5,000 in the case of students
who have passed the Executive Programme
(Intermediate) examination but not enrolled for the
Professional Programme (Final).
(c) Arrears of postal tuition fee, if due, under former
registration where the students have been issued with
coaching completion certificate(s) for both modules
(Groups) of Executive Programme (Intermediate)/ all
modules (Groups) of Professional Programme (Final)
as the case may be.
2. On the student being registered do novo he will be given credit
for the oral or postal tuition completed during the validity of his
previous registration in the corresponding paper(s) of the new
syllabus. Such a student shall not be supplied with the study
material afresh. Study material can however be obtained on
payment of Rs. 160 per subject. Student Company Secretary
will be sent free of cost during the validity period of registration
de novo from the month subsequent to the month in which the
student was registered de novo.
(B) Guidelines for candidates seeking registration de novo after two
years of the expiry of previous registration.
1. A person whose registration has been cancelled or has termi-
nated on expiry of five-year period and has not sought registra-
tion de novo within two years of the expiry of former registration
may seek registration de novo within 5 years of the cancella-
tion/termination of his former registration on payment of the fol-
lowing fees:
(i) Registration fee Rs. 1500
(ii) Exemption fee for
(a) Foundation Programme Rs. 500
(b) Executive Programme (Inter) Rs. 500
Examination (if already
passed)
(iii) Paperwise exemption fee
(a) Executive Programme (Inter) Rs. 100 per paper
(b) Professional Programme (Final) Rs. 100 per paper
(iv) Where a student has not completed coaching for both mod-
ules (Groups) of Executive Programme (Inter)/ all modules
(Groups) of Professional Programme (Final), balance of Rs.
5,000 of the postal tuition fee, if enrolled for Executive Pro-
gramme (Inter) or balance of Rs. 7,500 if enrolled for Pro-
fessional Programme (Final), as the case may be. How-
ever, credit for having completed the coaching in a particu-
lar module may be given if the coaching completion certifi-
cate has not been issued due to invalid registration or any
other reason.
(v) Rs. 7,500 in the case of students who have passed the
Executive Programme (Inter) but not enrolled for the
Professional Programme (Final).
(vi) Arrears of postal tuition fee, if due, under former registration
where the students have been issued with coaching completion
certificates for both modules (Groups) of Executive Programme
(Inter)/all modules (Groups) of Professional Programme (Final).
2. On the student being registered de novo, he will be given credit
for the oral or postal tuition completed during the validity of his
previous registration in the corresponding paper(s) at the new
syllabus. Such a student shall not be supplied with the study
material afresh. Study material can however be obtained on pay-
ment @ Rs. 160 per subject. Student Company Secretary will be
sent free of cost during the validity period of registration de novo
from the month subsequent to the month in which the student
was registered de novo.
3. The registration de novo will be valid for a period of five years
from the month in which the student has been registered de novo.
(C) No candidate shall be registered as a student de novo if he ap-
plies after five years of the expiry of the former registration. He
may seek fresh registration as a student and no credit for the
fees paid or examination passed under the former registration
will be admissible on his registration as a fresh student under
any circumstances.
 Volume No. XXV
Student Company Secretary ISSN 0972-2874
April 2008

4
ANNUAL SUBSCRIPTION Rs. 50
SINGLE COPY Rs. 5.00
Edited, printed and published by
N.K. Jain for the Institute of
Company Secretaries of India,
'ICSI House', 22, Institutional
Area, Lodi Road,
New Delhi - 110003
Phone : 24617321-24,
24644431-32, 41504444
Grams : Compsec
Fax : 91-11-24626727
E-mail : info@icsi.edu
Website : http://www.icsi.edu
Printed at Daily Tej Pvt. Ltd.
8-B, Bahadurshah Zafar Marg,
New Delhi
Phone : 42225134, 42225111
The Institute is not in anyway
responsible for the result of
any action taken on the basis
of the advertisements
published in this Bulletin.

l From the President 03

l Academic Guidance 05
l Legal World 27
l Schedule of SMTPs 29
l Student Services 30
l Schedule of TOPs 31
l Schedule of ADPs 38
l News and Announcements 39
l Schedule of Fees (w.e.f. 01.04.2008) 48

Student Company Secretary 1 April 2008

 Five Week - Part Time Course in Capital Markets
exclusively for
Members of ICSI and/or its registered Students
at
highly Concessional rates
at Mumbai
Date of Commencing : May 5, 2008
Timings : Monday- Friday : 6.00 PM to 7.30 PM, Saturday : 10.00 AM to 5.00 PM
Venue : 19th Floor, P J Tower, Dalal Street, Mumbai 400001
Course Contents : This high end programme has been designed to cover macro economics and its relation
with capital markets, Pricing & Valuation of equity, Book building, Mutual Funds, Exchange traded funds,
Trading & Settlement BOLT, Surveillance, Listing on BSE, Role of derivatives, Futures and Options, Commodities
Market, Rules, Bye laws & Regulations of SEBI Act, FEMA & Money Laundering Act, Fundamental Analysis,
Technical Analysis, Project Appraisal & Project Finance, Avenue of Finance, ADR, GDR and QIP, Buyback and
Delisting of Shares, Mergers & Amalgamation, Corporate Governance, Securitisation of Assets, etc.
Fee : Rs. 8000 plus 12.36% service tax (i.e., DD of Rs. 8989) in favour of Bombay Stock Exchange Ltd payable at
Mumbai plus a Cheque/DD of Rs.1500 in favour of Institute of Company Secretaries of India payable at
Mumbai, aggregating Rs. 10,489.
Eligibility : The programme is exclusively for Members of ICSI and/or its Registered Students who have
passed their Intermediate Examination.
Attendance : 75% attendance is compulsory and the participants will have to undergo a test to be conducted
at the conclusion of the course for getting the certificate.
Programme Credit Hours : Members of the Institute are entitled for TEN Programme credit hours.
ADP Hours : Students of the Institute are entitled for TWENTY FIVE Academic Development Programme
Credit Hours.
Programme Director
Shri B Narasimhan, Council Member, The ICSI
Phone : 22838497 ; Mobile : 9322946627/9820142331 ; e-mail : bn@karvy.com
Registration : Request for registration alongwith fee by way of demand draft drawn in favour of Bombay Stock Exchange
Ltd. payable at Mumbai may please be sent to Mr. C V S Mani, Desk Officer , Western India Regional Council of the
Institute of Company Secretaries of India, 13, Jolly Maker Chambers No. II (1st Floor), Nariman Point, Mumbai 400
021; Phone : 22047604, 22047569; fax 22850109, e-mail : wircicsi@gmail.com; wiro@icsi.edu, or to Shri C Vasudevan,
General Manager - Knowledge Management, 18th Floor P J Tower, Dalal Street, Mumbai 400001, Ph. No 22721864,
e-mail : c.vasudevan@bseindia.com;

Student Company Secretary 2 April 2008

 From The President

No matter what the level of your ability,

you have more potential than you can
ever develop in a lifetime.
James T. McCay

Dear students,
We experience a sense of cheerfulness and contentment when we do our important tasks
single mindedly, and complete the same to the best of our capability. This is the sign of a true
professional who has to be focused and clear-headed. This principal is a key to great success,
esteem, status, and sustainable happiness in life. If you have disciplined yourself to this habit,
it will in your professional career help you to achieve your targets successfully making you
feel happy and giving you a feeling of winner.
If you are yet to build up this habit, then you as would-be professionals must imbibe this habit right from pursuing the CS
Course. You must learn to develop the habit of setting clear priorities and discipline yourself to start on without delay.
Prioritising is a way of placing in order of priority what needs doing and when. The skill of prioritising the tasks plays an
important role in professional career and is an important aspect of all decision-making. Your ability to select your important
tasks and then to get started on those tasks and complete them both speedily and perfectly has more impact on your
professional success.
The habit of setting priorities, overcoming procrastinations, and getting on with your important tasks is a mental and
physical skill. These habits can be learned through practice and repetition. Practice is key to mastering any skill for practice
makes a man perfect. Our mind grows stronger and more capable with use. With practice, you can learn any behaviour or
develop any habit that you consider either desirable or crucial.
We as human beings have a tendency to frame mental picture of ourselves i.e. we visualize ourselves as the person we
intend to be in future. It has a powerful effect on our behavoiur and it largely determines our performance on the outside. All
improvements in our outer life begin with improvements on the inside, in our mental picture. You being the students of this
vibrant profession, you should also frame a mental picture to achieve excellence in your professional career. The task is not
easy. It requires hard work and dedication followed by an unsatisfied quest and thirst for knowledge. This is important not
only when you are pursuing the CS Course but also when you join the profession later. Instead of confining yourselves to
reading only the Study Material provided by the Institute, you should also make it a habit to read economic dailies, journals,
recommended books and other books relating to economy and business, etc. Plan your day, spend maximum time on
tangible, positive issues. The list is not exhaustive but merely illustrative. This will not only increase your knowledge base
but will also help you in building your thinking ability and impressive personality.
Friends, I am sure that after taking a break you must have reactivated yourselves to start preparing seriously for the
ensuing examinations. You will certainly enjoy the fruits of your hard work sooner or later provided you do your duty
honestly and earnestly. Avoid halfhearted or peripheral approach towards the examination and prepare thoroughly so as to
have comprehensive knowledge about the subject. While preparing for the examination, apart from reading Study Material,
Bare Acts and References, you should read Chartered Secretary, Student Company Secretary Bulletin, Economic dailies
and other professional journals. This will keep you informed and up-to-date with the emerging trends in economy, trade,
industry and management as well as help in perceiving changes taking place in various laws. As mentioned earlier, this is
important not only from the examination point of view but later in professional life also where you will be guiding the
destinies of corporates in the changing global economic environment. If you change your attitude towards study, you will be
able to make the studiousness an enjoyment and an enthusing experience. See that you develop habits that propel you to
master your subjects. It is often said that it is the attitude that determines the altitude you reach.
Reference to questions asked in the previous examinations would also be beneficial. Guideline Answers and Suggested
Answers published by the Institute will certainly help you to have an idea as to how the answers are to be presented to the
questions. It is advisable to develop the habit of writing in your own language, whatever you study for the examination. This
will increase your retention power and improve your writing skills. Successful students would always practise writing answers
to previous question papers in examination conditions at home and compare their answers so written with Guideline Answers.

Student Company Secretary 3 April 2008

 From The President
They would then redo the exercise and follow this practice until they are happy with their own written expression and
knowledge content expected by the examiner. Practice makes one perfect. Success follows hard practice.
Further, to assist you in your efforts and to enable you to know your deficiencies and perform better in the ensuing
examinations, a detailed write-up containing observations of the examinees performance in Dec. 2007 examinations based
on examiners' comments is published in this issue. These observations would be helpful to you in understanding the level
of knowledge expected from the students of the Company Secretary Course while writing answers to their questions.
Moreover, as you are aware, the Institute has set up Oral Coaching Centers at almost all important cities /towns of our
country to provide classroom teaching facilities. I advise you to join Oral Coaching Classes to supplement your home study
programme. Further, attending Oral Coaching Classes will provide you an opportunity to interact with the faculties and help
you to improve your communication skills through interactive learning. Furthermore, you should also avail of the library
facilities provided at the Regional Councils/ Chapters and Satellite Chapters. In addition, the Institute has constituted
professional help centers all over the country providing guidance to the students on resolving study and career related
problems.
Regional Councils and A Grade Chapters are organizing SMTP from time to time for the students who have passed their
final examination and completed all other training requirements. I advise you to join the SMTP and have the privilege of
becoming a Member of the Institute.
That apart, the Institute organizes Residential Secretarial Modular Training Programme (RSMTP) at CCRT Navi Mumbai.
In this context, I am pleased to inform you that CCRT is organizing 22nd Residential SMTP at ICSI- CCRT, Navi Mumbai
commencing from April 18 to May 3, 2008. The 22nd Residential SMTP has been planned with special emphasis on
Management Subjects and time-tested and well-appreciated methodologies on imparting training including an input on
Yoga and Meditation in the morning hours. In addition to the subjects covered in any SMTP, there will be programes in the
evening on topics of practical and general managerial relevance. I advise you to avail of this unique opportunity. 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 academicians and corporate leaders.
I would like to emphasize that training plays an important role in shaping the professional career of the students. Training
enhances knowledge and skills of the students so that they can effectively handle various organizational positions in their
professional career.
Friends, I am pleased to inform you that Hooghly Chapter was inaugurated in the Eastern Region, the region which has
an enormous untapped potential for growth and development. I was happy to witness a soothing cheer and curiosity about
the profession among the members and students from Hooghly. I am confident that the new Chapter at Hooghly would
serve the students and members residing in and around the area more efficiently.
I am pleased to inform you that the 36th National Convention will be held in Goa from 6th to 8th November, 2008. You
may suggest a suitable Theme and its sub-themes for the National Convention and to block the dates in your diaries in
order to make the convention a grand success.
Let me conclude by stating that you have unlimited ability to learn and develop new skills, habits, and abilities. When you
train yourself, through repetition and practice, to overcome procrastination and get your targets/tasks of any size completed
in time and speedily, you will move yourself onto the fast track in your life and career and step on the accelerator.

With best wishes,

Yours sincerely,

Delhi (CS KEYOOR BAKSHI)

April 12, 2008 president@icsi.edu

Student Company Secretary 4 April 2008

 Academic Guidance
ACADEMIC GUIDANCE
COMPANY ACCOUNTS
ACCOUNTING STANDARDS1
STANDARDS
The following is the gist of AS 30 and 31 and IFRS 7 and 8 issued
by ICAI and IASB respectively:
(AS) 30 Financial Instruments: Recognition and
Measurement
The objective of this Standard is to establish principles for
recognising and measuring financial assets, financial liabilities and
some contracts to buy or sell non-financial items.
A financial asset or financial liability at fair value through profit or
loss is a financial asset or financial liability that meets either of the
following conditions:
(a) It is classified as held for trading and (b) Upon initial recognition
it is designated by the entity as at fair value through profit or loss.
An entity should recognise a financial asset or a financial liability
on its balance sheet when, and only when, the entity becomes a party
to the contractual provisions of the instrument. An entity should
derecognise a financial asset when, the contractual rights to the cash
flows from the financial asset expire.
If an entity transfers a financial asset in a transfer that qualifies for
derecognition in its entirety and retains the right to service the financial
asset for a fee, it should recognize either a servicing asset or a servicing
liability for that servicing contract.
If a transfer does not result in derecognition because the entity has
retained substantially all the risks and rewards of ownership of the
transferred asset, the entity should continue to recognise the transferred
asset in its entirety and should recognise a financial liability for the
consideration received. In subsequent periods, the entity should
recognise any income on the transferred asset and any expense
incurred on the financial liability.
If an entity neither transfers nor retains substantially all the risks
and rewards of ownership of a transferred asset, but retains control
of the transferred asset, the entity continues to recognise the
transferred asset to the extent of its continuing involvement. The
extent of the entitys continuing involvement in the transferred asset
is the extent to which it is exposed to changes in the value of the
transferred asset.
A regular way purchase or sale of financial assets should be
recognised and derecognised using trade date accounting or settlement
date accounting. An entity should remove a financial liability (or a part
of a financial liability) from its balance sheet when, and only when, it is
extinguished i.e., when the obligation specified in the contract is
discharged or cancelled or expires. An exchange between an existing
borrower and lender of debt instruments with substantially different terms
should be accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial liability or a
part of it (whether or not attributable to the financial difficulty of the
debtor) should be accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. The
difference between the carrying amount of a financial liability (or part of
a financial liability) extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities
assumed, should be recognised in the statement of profit and loss.
When a financial asset or financial liability is recognised initially,
an entity should measure it as follows:
(a) A financial asset or financial liability at fair value through profit or
loss should be measured at fair value on the date of acquisition
or issue.
1. Compiled by M A Joseph, Deputy Director, The ICSI
Student Company Secretary
(b) Short-term receivables and payables with no stated interest rate
should be measured at original invoice amount if the effect of
discounting is immaterial.
(c) Other financial assets or financial liabilities should be measured
at fair value plus/ minus transaction costs that are directly attrib-
utable to the acquisition or issue of the financial asset or financial
liability.
After initial recognition, an entity should measure financial assets,
including derivatives that are assets, at their fair values, without any
deduction for transaction costs it may incur on sale or other disposal,
except for the following financial assets:
(a) loans and receivables
(b) held-to-maturity investments
(c) investments in equity instruments that do not have a quoted
market price in an active market and whose fair value can
not be reliably measured and derivatives that are linked to
and must be settled by delivery of such unquoted equity in-
struments, which should be measured at cost.
An entity should not reclassify a financial instrument into or out of
the fair value through profit or loss category while it is held or issued.
A gain or loss arising from a change in the fair value of a financial
asset or financial liability that is not part of a hedging relationship should
be recognised, as (a) a gain or loss on a financial asset or financial
liability classified as at fair value, (b) a gain or loss on an available-for-
sale financial asset should be recognized directly in an appropriate
equity account. An entity should assess at each balance sheet date
whether there is any objective evidence that a financial asset or group
of financial assets is impaired.
If there is objective evidence that an impairment loss on loans and
receivables or held to- maturity investments carried at amortised cost
has been incurred, the amount of the loss is measured as the difference
between the assets carrying amount and the present value of estimated
future cash flows (excluding future credit losses that have not been
incurred) discounted at the financial assets original effective interest
rate (i.e., the effective interest rate computed at initial recognition).
The carrying amount of the asset should be reduced either directly or
through use of an allowance account. The amount of the loss should
be recognised in the statement of profit and loss.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized (such as an
improvement in the debtors credit rating), the previously recognised
impairment loss should be reversed either directly or by adjusting an
allowance account. The reversal should not result in a carrying amount
of the financial asset that exceeds what the amortised cost would
have been had the impairment not been recognised at the date the
impairment is reversed. The amount of the reversal should be
recognised in the statement of profit and loss.
If there is objective evidence that an impairment loss on short-term
receivables carried at original invoice amount has been incurred (i.e.,
some of the short-term receivables may not be recoverable), the amount
of the loss is measured as the difference between the receivables
carrying amount and the undiscounted amount of estimated future cash
flows (excluding future credit losses that have not been incurred). The
carrying amount of the receivables should be reduced either directly or
through use of an allowance account. The amount of the loss should be
recognised in the statement of profit and loss.
When a decline in the fair value of an available-for-sale financial
asset has been recognised directly in the appropriate equity account
and there is objective evidence that the asset is impaired, the
cumulative loss that had been recognised directly in the equity account
should be removed from the equity account and recognised in the
statement of profit and loss even though the financial asset has not
been derecognised. If the hedged item is a non-financial asset or
non-financial liability, it should be designated as a hedged item (a) for
5 April 2008
 Academic Guidance
foreign currency risks, or (b) in its entirety for all risks, because of the
difficulty of isolating and measuring the appropriate portion of the cash
flows or fair value changes attributable to specific risks other than
foreign currency risks.
Hedging relationships are of three types: (a) fair value hedge: a
hedge of the exposure to changes in fair value of a recognised asset
or liability or an unrecognised firm commitment, or an identified portion
of such an asset, liability or firm commitment, that is attributable to a
particular risk and could affect profit or loss.
(b) cash flow hedge: a hedge of the exposure to variability in cash
flows that (i) is attributable to a particular risk associated with a
recognised asset or liability (such as all or some future interest
payments on variable rate debt) or a highly probable forecast
transaction and (ii) could affect profit or loss. (c) hedge of a net
investment in a foreign operation as defined in AS 11.
Hedges of a net investment in a foreign operation, including a hedge
of a monetary item that is accounted for as part of the net investment,
should be accounted for similarly to cash flow hedges:
(a) the portion of the gain or loss on the hedging instrument that is
determined to be an effective hedge should be recognised di-
rectly in the appropriate equity account; and
(b) the portion of the gain or loss on the hedging instrument that is
determined to be an ineffective hedge should be recognised in
the statement of profit and loss.
The gain or loss on the hedging instrument relating to the effective
portion of the hedge that has been recognised directly in the equity
account should be recognised in the statement of profit and loss on
disposal of the foreign operation.
(AS) - 31- Financial Instruments: Presentation
The objective of this Standard is to establish principles for presenting
financial instruments as liabilities or equity and for offsetting financial
assets and financial liabilities.
A financial instrument is any contract that gives rise to a financial
asset of one entity and a financial liability or equity instrument of another
entity.
A financial asset is any asset that is:
(a) cash;
(b) an equity instrument of another entity;
(c) a contractual right:
(i) to receive cash or another financial asset from another en-
tity; or
(ii) to exchange financial assets or financial liabilities with an-
other entity under conditions that are potentially favourable
to the entity; or
(d) a contract that will or may be settled in the entitys own equity
instruments and is:
(i) a non-derivative for which the entity is or may be obliged to
receive a variable number of the entitys own equity instru-
ments; or
(ii) a derivative that will or may be settled other than by the ex-
change of a fixed amount of cash or another financial asset
for a fixed number of the entitys own equity instruments. For
this purpose the entitys own equity instruments do not in-
clude instruments that are themselves contracts for the future
receipt or delivery of the entitys own equity instruments.
A financial liability is any liability that is:
(a) a contractual obligation:
(i) to deliver cash or another financial asset to another entity;
or
(ii) to exchange financial assets or financial liabilities with an-
other entity under conditions that are potentially unfavour-
able to the entity; or
Student Company Secretary
(b) a contract that will or may be settled in the entitys own equity
instruments and is
(i) a non-derivative for which the entity is or may be obliged to
deliver a variable number of the entitys own equity instru-
ments; or
(ii) a derivative that will or may be settled other than by the ex-
change of a fixed amount of cash or another financial asset
for a fixed number of the entity s own equity instruments. For
this purpose the entitys own equity instruments do not in-
clude instruments that are themselves contracts for the future
receipt or delivery of the entitys own equity instruments.
An equity instrument is any contract that evidences a residual interest
in the assets of an entity after deducting all of its liabilities. Currency
(cash) is a financial asset because it represents the medium of exchange
and is therefore the basis on which all transactions are measured and
recognised in financial statements. A deposit of cash with a bank or
similar financial institution is a financial asset because it represents the
contractual right of the depositor to obtain cash from the institution or to
draw a cheque or similar instrument against the balance in favour of a
creditor in payment of a financial liability. Financial instruments include
primary instruments (such as receivables, payables and equity
instruments) and derivative financial instruments (such as financial
options, futures and forwards, interest rate swaps and currency swaps).
The issuer of a financial instrument should classify the instrument,
or its component parts, on initial recognition as a financial liability, a
financial asset or an equity instrument in accordance with the substance
of the contractual arrangement and the definitions of a financial liability,
a financial asset and an equity instrument. When a derivative financial
instrument gives one party a choice over how it is settled, it is a financial
asset or a financial liability unless all of the settlement alternatives
would result in it being an equity instrument.
The issuer of a non-derivative financial instrument should evaluate
the terms of the financial instrument to determine whether it contains
both a liability and an equity component. Such components should be
classified separately as financial liabilities or equity instruments. If an
entity reacquires its own equity instruments, those instruments should be
deducted from equity. No gain or loss should be recognised in statement
of profit and loss on the purchase, sale, issue or cancellation of an entitys
own equity instruments. Such treasury shares may be acquired and held
by the entity or by other members of the consolidated group. Consideration
paid or received should be recognised directly in equity.
Interest, dividends, losses and gains relating to a financial
instrument or a component of financial instrument that is a financial
liability should be recognised as income or expense in the statement
of profit and loss. Distributions to holders of an equity instrument should
be debited by the entity directly to an appropriate equity account, net
of any related income tax benefit. Transaction costs of an equity
transaction should be accounted for as a deduction from equity net of
any related income tax benefit.
A financial asset and a financial liability should be offset and the net
amount presented in the balance sheet when, and only when, an entity:
(a) currently has a legally enforceable right to set off the recognised
amounts; and (b) intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
IFRS-7 - Financial Instruments: Disclosures
IFRS 7 deals with the disclosure requirements in relation to all
risks arising from financial instruments (with limited exemptions), and
applies to any entity that holds financial instruments. The level of
disclosure required depends on the extent of the entitys use of financial
instruments and its exposure to financial risk.
The Standard retains many of the disclosure requirements currently
within IAS 32 and IAS 30. However, there have been some editorial
changes to the existing requirements as well as some additional
disclosure requirements added.
The overriding objective of the Standard is that preparers should
6 April 2008
 Academic Guidance
provide disclosures that enhance a users understanding of the entitys
exposures to financial risks and how the entity manages those risks.
To this end, the Standard requires an entity to disclose:
l information on the significance of financial instruments to the
entitys financial position and performance;
l the nature and extent of risk exposures arising from financial in-
struments (quantitative disclosures); and
l the approach taken in managing those risks (qualitative disclo-
sures).
IFRS - 8 - Operating Segments
IFRS 8 applies to the separate or individual financial statements of
an entity (and to the consolidated financial statements of a group with
a parent):
l whose debt or equity instruments are traded in a public market;
or
l that files, or is in the process of filing, its (consolidated) financial
statements with a securities commission or other regulatory or-
ganisation for the purpose of issuing any class of instruments in
a public market.
However, when both separate and consolidated financial statements
for the parent are presented in a single financial report, segment
information need be presented only on the basis of the consolidated
financial statements.
An operating segment is a component of an entity:
l that engages in business activities from which it may earn rev-
enues and incur expenses (including revenues and expenses re-
lating to transactions with other components of the same entity);
l whose operating results are reviewed regularly by the entitys chief
operating decision maker to make decisions about resources to
be allocated to the segment and assess its performance; and
l for which discrete financial information is available.
IFRS 8 requires an entity to report financial and descriptive
information about its reportable segments. Reportable segments are
operating segments or aggregations of operating segments that meet
specified criteria:
l its reported revenue, from both external customers and
intersegment sales or transfers, is 10 per cent or more of the
combined revenue, internal and external, of all operating seg-
ments; or
l the absolute measure of its reported profit or loss is 10 per cent
or more of the greater, in absolute amount, of (i) the combined
reported profit of all operating segments that did not report a loss
and (ii) the combined reported loss of all operating segments that
reported a loss; or
l its assets are 10 per cent or more of the combined assets of all
operating segments.
If the total external revenue reported by operating segments
constitutes less than 75 per cent of the entitys revenue, additional
operating segments must be identified as reportable segments (even if
they do not meet the quantitative thresholds set out above) until at least
75 per cent of the entitys revenue is included in reportable segments.
Disclosures include:
l general information about how the entity identified its operating
segments and the types of products and services from which
each operating segment derives its revenues;
l information about the reported segment profit or loss, including
certain specified revenues and expenses included in segment
profit or loss, segment assets and segment liabilities and the basis
of measurement; and
l reconciliations of the totals of segment revenues, reported segment
profit or loss, segment assets, segment liabilities and other material
items to corresponding items in the entitys financial statements.
Student Company Secretary
l some entity-wide disclosures that are required even when an entity
has only one reportable segment, including information about each
product and service or groups of products and services.
l Analyses of revenues and certain non-current assets by geo-
graphical area with an expanded requirement to disclose rev-
enues/assets by individual foreign country (if material), irrespec-
tive of the identification of operating segments.
l information about transactions with major customers.
l considerable segment information at interim reporting dates.
TAXATION
TAXATION OF COOPERA
TAXATION TIVE
COOPERATIVE
2
SOCIETIES
With the promulgation of the 42nd Constitutional Amendment 1976,
India formally embarked on a policy of socialistic pattern of development.
Cooperative Societies plays an important role in this regard.
Under Section 2(19) of the Income Tax Act, Cooperative Society
means a society registered under the Co-operative Societies Act, 1912
or under any other law for the time being in force in any state for
registration of the Co-operative Societies
Types of Cooperative Society:
(1) Cooperative Housing Society
These societies are generally found in big towns, engaged in
building houses. But under section 27(iii) of the Act, where any house
property is allotted or leased by such society to any of its member as
under the house building scheme, it is the member who will be treated
as the owner of the aforesaid house and therefore, be liable to pay tax
on the income of such house property even though the legal ownership
of the house is retained by the society for the time being.
(2) Urban Consumers Cooperative Society:
It means a society for the benefit of the consumers within the
limits of a municipal corporation, municipality, municipal committee,
notified area committee, etc.
(3) Cooperative Society engaged in Industrial or other
activities:
Such cooperative societies own and run industrial undertaking or a
ship or a hotel.
A Regional Rural Bank is also deemed to be a Co-operative Society
vide Circular no.319, dated January 11, 1982.
Determination of Taxable Income:
1. First ascertain income under different heads of Income.
2. Clubbing provisions under Sections 61-64 applies to Cooperative
Societies.
3. Current and brought forward losses can be adjusted under
Sections 70-80.
4. The total income so arrived is the Gross Total Income (GTI)
5. From the GTI, following deductions are permissible under Sections
80C to 80U. They are, Sections 80G, 80GGA, 80GGC, 80-IA, 80-
IAB., 80-IB, 80-IC, 80JJA and 80P.
The resulting sum is the net income.
Computation of Tax Liability:
1. Find out the Income Tax Rate applicable.
2. Less: Deduction under Section 88E.
3. Find out (1) (2)
4. Add: Education Cess @ 3%.
5. Balance.
2. Prepared by Amit Kumar Das, Education Officer, The ICSI.
7 April 2008
 Academic Guidance
6. Less: Rebate under Sections 86, 90, etc.
Deductions in respect of Co-operative Societies (Section 80P):
(1) Under Section 80P(2)(a) :
In case of Co-operative Society engaged in :
(i) Carrying on Banking business or providing credit facilities to its
members, or
(ii) a cottage industry or;
(iii) marketing of agricultural produce grown by members; or
(iv) purchase of agricultural implements, seeds, live stocks, or other
article intended for agriculture or
(v) Processing agricultural produce of its members without aid of
power, or
(vi) Collective disposal of labour of its members or
(vii) matters relating to fisheries.
The whole amount so spent, be exempt. However, there is some
restrictions regarding voting rights under clauses (vi) and( vii).
(2) Under Section 80(P)(2)(b):
In case of a Co-operative Society, being a primary society engaged
in supplying with, oilseeds, fruits or vegetables raised or grown by its
members to:
(i) Federal Co-operative Society for the purpose of Clause (b) or
(ii) Government or local Authority; or
(iii) A Government Company under Section 617 of the Companies
Act, 1956, engaged in this kind of business. The whole amount
spent in such business, be exempt.
(3) In case of a Co-operative Society engaged in activities other than
those mentioned in Clauses (a) and (b), either independently of or in
addition to all or any of the activities so specified so such of its profits
and gains attributable to such activities and does not exceed :
(i) For Consumer Co-operative Society Rs.1,00,000.
(ii) In any other case Rs.50,000.
(4) In respect of interest or dividends derived by the Co-operative
Society from its investments with any other Co-operative Society
from investment with any other Co-operative Society, the whole
of such amount be exempt.
(5) Amount derived by Co-operative Society by letting out godowns
or warehouses for storage, processing or marketing of
commodities.
(6) In case of Co-operative Society not being housing society or urban
consumer society or in transport business or manufacturing
operations with the aid of power, where Gross Total Income does
not exceed Rs.20,000.
From the Assessment Year 2008-09, Section 80P(4), will not apply
to any Co-operative Bank other than primary agricultural credit society
or a primary cooperative agricultural and rural development bank.
Tax Rates (relevant for the Assessment Year 2008-09):
In case of every Co-operative Society,
(1) Where the total income does 10% of Total Income
not exceed Rs.10,000
(2) Where the total income exceeds Rs.1000 plus 20% of the
Rs.10,000 but not exceed amount by which the total
Rs.20,000 income exceeds Rs.10,000.
(3) Where the total income exceeds Rs.3,000 plus 30% of the
Rs.20,000 amount by which the total
income exceeds Rs. 20,000
Some Important Case Laws:
(i) In the case, U.P. Co-operative Lane Union Federation v. CIT (1999)
237 ITR 574/103 Taxmann 376(SC), the honble Supreme Court
observed the meaning of expression members cannot be
extended to include the members of a primary Co-operative
Society which is a member of the federated Co-operative Society
seeking exemption.
Student Company Secretary
(ii) The provision of section 80(P)(2)(c) will apply to a Co-operative
Society letting out building (may be shops) even if such income is
computed under the head Income from House Property- Film
Nagar Co-operative Society Ltd. v. ITO (2004) 91 ITD 27 (Hyd.)(SC).
(iii) A society supplying coal and diesel to its members who are
manufacturers of bricks and tiles is not a consumer Co-operative
Society. A consumer society means a registered society which
has its principal object to supply materials for the consumption of
the members. Consumption does not include consumption of
raw material for manufacturing purposesTamilNadu Brick & Tiles
Manufacturers Industrial Services Co-operative Society Ltd. v.
CIT (2003) 129 Taxman 343 (Mad.).
(iv) The whole of the income derived by a Co-operative Society from the
letting of godowns or warehouses for storage, processing or facilitating
the marketing of commodities is deductible under Section 80P(2)(e)
CIT v. District Co-operative Federation (2004) 27 ITR 22 (All.)
(v) Making profit by investments of surplus funds of the bank is
intimately connected with its regular business operations and
hence the income arising out of such investments is also required
to be considered as a part of Income from banking business
Electro Urban Co-operative Credit Society Ltd. v. ITO (2002) 256
ITR (AT) 2 Cal. (AT).
(vi) Interest on securities, subsidies from Government and dividend
received by the assessee, a Co-operative Society carrying on
banking business, where business income of the assessee and
the assessee was entitled to deduction- [CIT v. Ramanathapuram
Dist. Co-operative Central Bank (2002) 255 ITR 423 (SC).
(vii) Selling commodities to members being effected under a scheme
of Hire Purchase Agreement cannot be considered to be offering
a credit facility- (Madras Auto Rickshaw Drivers Co-operative
Society v. CIT (2001) 249 ITR 330(SC).
COMPANY LAW/COMPANY SECRETARIAL PRACTICE/
ADVANCED COMPANY LAW AND PRACTICE
STUDY UPDATES3
UPDATES
Students appearing in Company Law, Company Secretarial Practice
and Advanced Company Law and Practice papers of Intermediate and
Final Examination may take note of the following changes in the
Companies Act, 1956 and the rules, thereon, made by the Ministry of
Corporate Affairs during the last one year (to the extent of topics covered
in the syllabus), which are applicable for June, 2008 Examination:
l Quality Review Board Notified: the Central Government has
constituted a Quality Review Board consisting of the specified
persons. The terms and condition of service and allowances of
the Chairperson and Members of the Quality Review Board shall
be governed by the Company Secretaries Procedures of Meetings
of Quality Review Board, and Terms and Conditions of Service
and allowances of the Chairperson and Members of the Board,
Rules, 2006. [MCA Notification No: G.S.R. 490 (E) (13-Jul-07)]
In accordance with Section 29B of the Company Secretaries Act,
1980, the Quality Review Board shall perform the following functions:
(a) to make recommendations to the Council with regard to the
quality of services provided by the members of the Institute;
(b) to review the quality of services provided by the members of
the Institute including secretarial services; and
(c) to guide the members of the Institute to improve the quality
of services and adherence to the various statutory and other
regulatory requirements.
3. Prepared by Deepa Khatri, Asstt. Education Officer, under the guidance of
Alka Kapoor, Deputy Director, The ICSI.
8 April 2008
 Academic Guidance
l Public financial Institutions notified: the Central Government
has notified the following further institutions as public financial
institutions in exercise of the powers conferred by Sec. 4A(2) of
the Companies Act, 1956, namely:--
- Tamil Nadu Urban Finance and Infrastructure Development
Corporation Limited.
- Kerala Power Finance Corporation Limited.
[vide MCA Notification No: S.O.1583 (E) (20-Sep-07)] and
- Kerala State Power and Infrastructure Finance Corporation
Limited [vide MCA Notification No: S.O.2007 (E) (29-Nov-
07)
l Order of the Company Law Board under Section 141 of the
Companies Act, 1956 regarding extension of time for filing
documents by companies and levy of additional fee: Vide this
Circular, in the cases, where filing of the particulars or the
registration/ modification of the charge or the intimation of payment
or satisfaction thereof did not take place within a period of 60 days
and 30 days respectively (as provided in the provisions of the
Companies Act, 1956), the Central Government can extend the
time up to a period not exceeding 300 days from the date of event,
on levy of additional fee as prescribed under Section 611(2) of the
Companies Act 1956.. [MCA Circular No: 13/2007 (27-Sep-07)]
l Amendments in Schedule VI of the Companies Act, 1956: the
Central Government has made the following amendments in
Schedule VI of Companies Act, 1956 [vide MCA Notification
No: G.S.R. 719 (E) (16-Nov-07)] :
1. In the said Schedule, in "Part I Form of Balance-Sheet, under
heading-A. Horizontal Form",
(1) in the first column relating to "Instructions in accordance with
which liabilities should be made out", for the second paragraph
appearing against the sub-heading "CURRENT LIABILITIES
AND PROVISIONS", occurring in the second column, the
following paragraph shall be substituted, namely:--
"The following shall be disclosed under notes to the accounts:--
(a) the principal amount and the interest due thereon (to be
shown separately) remaining unpaid to any supplier as at
the end of each accounting year;
(b) the amount of interest paid by the buyer in terms of section
16 of the Micro, Small and Medium Enterprises Development
Act, 2006, along with the amount of the payment made to
the supplier beyond the appointed day during each
accounting year;
(c) the amount of interest due and payable for the period of
delay in making payment (which have been paid but beyond
the appointed day during the year) but without adding the
interest specified under the Micro, Small and Medium
Enterprises Development Act, 2006;
(d) the amount of interest accrued and remaining unpaid at the
end of each accounting year; and
(e) the amount of further interest remaining due and payable
even in the succeeding years, until such date when the
interest dues as above are actually paid to the small
enterprise, for the purpose of disallowance as a deductible
expenditure under section 23 of the Micro, Small and Medium
Enterprises Development Act, 2006.
2. in the second column, relating to "Liabilities", under the heading
"current liabilities and provisions", after item (2), the following sub-
items shall be substituted, namely:--
(a) total outstanding dues of micro enterprises and small
enterprises; and
(b) total outstanding dues of creditors other than micro
enterprises and small enterprises.
3. In the "Notes" embodying General Instructions for preparation of
balance sheet, for item (q), the following shall be substituted, namely:-
(q) the terms ''appointed day'', ''buyer'', ''enterprise'', ''micro
enterprise'', ''small enterprise'' and ''supplier'', shall be as defined under
Student Company Secretary
clauses (b), (d), (e), (h), (m) and (n) respectively of section 2 of the
Micro, Small and Medium Enterprises Development Act, 2006.
l Companies (Central Government's) General Rules and Forms
(Third Amendment) Rules, 2007: the Central Government has
amended Rule 4A of Companies (Central Governments) General
Rules and Forms, 1956. [vide MCA Notification No: G.S.R.720
(E) (16-Nov-07)]
This Notification has substituted rule 4A. In accordance with the
substituted rule 4A: The promoters of a company which is to be
registered under a proposed name or of a company seeking to change
its name may make an application in Form 1A to the Registrar of
Companies of the State in which the registered office of the proposed
company is going to be situated or of the company is situated.
The application shall be accompanied by a fee of rupees five
hundred only. The Registrar shall cause to examine the application as
to whether the changed name or the name with which the proposed
company is to be registered, as the case may be, is undesirable within
the meaning of section 20. In case the name is undesirable, he may
reject the same or ask for resubmission of the application with new
names or calls for further information, ordinarily within three days of
receipt of the application (earlier time period was not specified).
The applicants shall be given only upto two opportunities for re-
submission of their proposal against the fee paid in the first instance for
name availability after the original application is filed. However, the applicant
will be at liberty to file fresh application along with prescribed fee.
Where the Registrar of Companies informs the company or the
promoters of the company that the changed name or the name with
which the proposed company is to be registered, as the case may be,
is not undesirable, such name shall be available for adoption by the
said company or by the said promoters of the company for a period of
sixty days (earlier, six months) from the date the name is allowed.
The applicant may apply for extension for retention of such name
for a further period of thirty days (earlier, six months) on payment of
fifty per cent of the fee prescribed for the application at the initial stage.
No further extension will be granted after expiry of ninety days from
the date the name is allowed in the first instance. The name allowed
shall lapse after expiry of sixty or ninety days, as the case may be,
from the date it is allowed first.
l Registration fees for Section 25 Companies shall be as per
the provisions of section 611 of the said Act read with
Schedule X thereto: the Central Government had earlier ordered
that the fees payable for registration, as a company with limited
liability, of an association not for profit which is licensed under
section 25 of the said Act, shall be fifty rupees.
Now the Central Government has rescinded the order. Hence, the
fees for registration of such companies shall be as per the provisions
of section 611 of the said Act read with Schedule X thereto. [MCA
Notification No.: S.O. 2218(E), dated the 28th December, 2007]
l Section 303(2) has become applicable to the companies
licensed under section 25: the Central Government had earlier
granted exemption from applicability of section 303(2) to the
companies licensed under section 25. It means such companies
were not required to file form no. 32 in respect of any change
among its directors, managing director, manager or secretary.
Now the abovesaid exemption has been withdrawn and hence every
company existing on the date of coming into force of the order is
required to file Form 32 of the Companies (Central Governments)
General Rules and Forms, 1956 in respect of any change among its
directors, managing director, manager or secretary that has occurred
after the date of filing of Form DIN-3 under Rule 6 of the Companies
(Director Identification Number) Rules, 2006. [MCA Notification No.:
S.O. 2219 (E), dated the 28th December, 2007]
Substitution of forms 18, 21 and 23 Companies (Central
Government's) General Rules and Forms (Second Amendment)
Rules 2007: the Central Government has substituted Forms 18, 21 and
23 vide the Companies (Central Government's) General Rules and Forms
(Second Amendment) Rules 2007. [MCA Notification No: G.S.R.500
(E) (24-Jul-07)]. The revised forms are given on the next page:
9 April 2008
 Academic Guidance

Student Company Secretary 10 April 2008

 Academic Guidance

Student Company Secretary 11 April 2008

 Academic Guidance

Student Company Secretary 12 April 2008

 Academic Guidance

Student Company Secretary 13 April 2008

 Academic Guidance

Student Company Secretary 14 April 2008

 Academic Guidance

Student Company Secretary 15 April 2008

 Academic Guidance
FAQS ON BOARDS REPORT4
REPORT
1. What is Boards Report under the Companies Act,
1956?
Section 217 of the Act enjoins upon the Board a responsibility to
make out its report to the shareholders and attach the said report to
every balance sheet which is laid before the shareholders at the annual
general meeting, in pursuance of section 210. The said report is known
as Boards Report.
2. What are the provisions for signing and dating of the
Boards Report under the Act?
Section 217(4) provides that the Boards Report and any addendum
thereto should be signed by the Chairman of the Board if he is
authorised in that behalf by the Board and, where he is not so
authorized, by not less than two directors of the company, one of whom
shall be a managing director, where there is one.
The Boards Report may bear the same date as that of the auditors
report but it could be dated later than the date of the auditors report if,
in the case of any reservation, qualification or adverse remark contained
in the auditors report, the Board has responded with its comments
and given full information and explanation in its report.
3. Explain the provisions for filing of Boards Report.
Section 220 provides that after the balance sheet and the profit
and loss account have been laid before the company at an annual
general meeting, three copies of the balance sheet and the profit and
loss account along with all documents required to be annexed or
attached thereto should be filed with the Registrar of Companies within
30 days, along with the prescribed fees in accordance with the Schedule
X of the Companies Act, 1956. The Boards Report has to be attached
to the balance sheet.
In the case of listed companies, the full version of the annual report,
including the Boards Report, should be filed on EDIFAR, the electronic
data information filing and retrieval website.
4. Apart from disclosures required under the Companies
Act, what are the other matters which should be
included in the Boards Report?
The matters to be included in the Boards Report have been laid
down in Section 217 of the Companies Act, 1956. Apart from this,
Sections 212, 219, 220, 222, 292A and 383A of the Companies Act,
1956 also prescribe the provisions in relation to the Boards Report.
The Boards Report of companies whose shares are listed on a
stock exchange must include additional information as specified in
the Listing Agreement. Further, the Reserve Bank of India Act, 1934,
the Securities and Exchange Board of India Act, 1992 and the
regulations, directions, guidelines, circulars, etc. issued there under,
necessitate certain additional disclosures to be made in the Boards
Report.
5. Explain the term Directors Responsibility
Statement.
Section 217(2AA) provides that the Boards Report should include
a Directors Responsibility Statement, indicating therein:
(i) that accounting standards had been followed in the preparation
of annual accounts and/or explanation for material departures
from accounting standards;
(ii) accounting policies are selected and applied consistently, and
judgments and estimates are made that are reasonable and pru-
dent so as to give a true and fair view of the state of affairs at the
end of the financial year and profit / loss of the company during
the year;
(iii) directors have taken proper and sufficient care for (i) maintenance
of accounting records as per law, (ii) safeguarding assets of the
4. Prepared by Deepa Khatri, under the guidance of Alka Kapoor, Deputy
Director, The ICSI.
Student Company Secretary
company, and (iii) preventing and detecting fraud and other ir-
regularities; and
(iv) directors have prepared the annual accounts on a going concern
basis.
The Board should, as a good corporate practice, certify that the
financial statements do not contain any materially untrue or misleading
statements or omit any material fact. The cross reference of accounting
policies as mentioned in financial statements of the company should
also be highlighted in the Boards Report.
Any material departures, as mentioned in clause (i) above, should
be conspicuously stated and the directors should carefully identify
materiality of the departure from the accounting standards.
The Directors Responsibility Statement should form part of the
Boards Report and should not be given as an annexure to it.
6. What is Management Discussion and Analysis Report
(MDAR)?
In accordance with the Clause 49 of the listing agreement, the
MDAR should either form part of the Boards Report or be given as an
addition thereto in the annual report to the shareholders. The MDAR
should include a discussion on the following matters within the limits
set by the companys competitive position:
- Industry structure and developments
- Opportunities and threats
- Segment-wise or product-wise performance
- Outlook
- Risks and areas of concern
- Internal control systems and their adequacy
- Discussion on financial performance with respect to operational
performance
- Material developments in human resources/industrial relations
front, including number of people employed.
MDAR should be considered and approved by the Board in a
meeting of the Board and not through resolution passed by circulation.
It is desirable that MDAR is signed in the same manner as the Boards
Report.
7. What are the provisions with regard to explanation
in response to auditors qualifications?
Section 215(3) provides that the balance sheet and profit and loss
account should be approved by the Board before they are signed on
behalf of the Board and before they are submitted to the auditors for
their report thereon.
Section 217(3) provides that the Board shall be bound to give full
information and explanation in its report on every reservation,
qualification or adverse remark contained in the auditors report on
the annual financial statements.
In case the auditors remarks are not available to the Board at the
time of its consideration and authentication of the balance sheet and
profit and loss account under Section 215(3), the Board should meet
again to consider the reservations or qualifications made in the auditors
report and give explanations to the said reservations or qualifications
in the Board's report. [Department of Company Affairs Letter No.8/
22(215)/76-CL-V, dated 16.8.78]
It is desirable that the directors provide an explanation for each
qualification contained in the auditors report/compliance certificate
alongwith an unbiased version of the circumstances necessitating the
qualifications, likely impact of qualifications on the reported figures
and the corrective measures that are proposed to be taken.
The Boards Report should also contain a confirmation of the follow-
up action taken by the directors on qualifications made in respect of
accounts for previous years.
16 April 2008
 Academic Guidance
8. What is Compliance Certificate?
As per sub-section (1) of Section 383A of the Companies Act, 1956,
every company not required to employ a whole-time secretary under
Sub-section (1) and having a paid-up share capital of ten lakh rupees
or more shall file with the Registrar a certificate from a secretary in
whole-time practice in such form and within such time and subject to
such conditions as may be prescribed, as to whether the company
has complied with all provisions of the Act and a copy of such
certificate shall be attached with Boards report referred to in
Section 217.
Accordingly, every company having a paid-up share capital of
rupees ten lakhs or more but less than rupees two crores is required
to file with the Registrar of Companies a Compliance Certificate from
a Secretary in Whole-time Practice. A copy of such certificate is also
required to be attached with Boards report.
9. What is the scope of Compliance Certificate?
The scope of Compliance Certificate comprises of certification of
the compliance of various requirements under the Companies Act and
the Rules thereunder.
10. Write down the penalty for non-filing of Compliance
Certificate with the Registrar of Companies.
Where a company fails to comply with the requirement of filing the
Compliance Certificate with the ROC or attaching a copy of such
certificate with Boards Report, in terms of Sub-section (1A) of Section
383A, the company and every officer of the company who is in default
shall be punishable with fine which may extend to Rs. 500 for every
day during which the default continues.
11. What is the penalty for issuing false Compliance
Certificate?
Section 628 deals with penalty for false statements. According to
this section, if in any return, report, certificate, balance sheet, prospectus,
statement or other document, any person makes a statement-
(a) which is false in any material particular, knowing it to be false; or
(b) which omits any material fact, knowing it to be material;
he shall be punishable with imprisonment for a term which may
extend to two years and shall also be liable to fine.
SECURITIES LAWS & REGULATION OF FINANCIAL MARKETS
A. Major Developments in the Securities Markets During
2007-085
I. Primary Securities Market
(A) Introduction of Fast Track Issues (FTIs)
Considering the need to enable well established and compliant
listed companies to access Indian primary market in a time effective
manner through follow-on public offerings and rights issues, it was
decided by SEBI to enable listed companies satisfying certain specified
requirements to make Fast Track Issues. The various requirements
for being eligible to issue shares under fast track Issues has been
discussed in detail under the heading Fast Track Issues.
(B) Amendments to Equity Listing Agreement
1. Insertion of New Clause 43A
New Clause 43A has been added to the listing agreement,
requiring the companies to file deviations in the use of public
issue proceeds and to appoint monitoring agency to monitor
utilisation of proceeds etc.
2. Clause 49(sub Clause (II)(D) and (IV)(D)) has been amended
covering the following:
5. Prepared by Sonia Baijal, Asst. Director, The ICSI
Student Company Secretary
(a) The issuer company is required to place the monitoring
report in respect of utilisation of issue proceeds filed
with it by monitoring agency before the Audit
Committee.
(b) The issuer company shall be required to inform material
deviations in the utilisation of issue proceeds to the
stock exchange.
(c) The issuer company is required to make the material
deviations/adverse comments of the Audit Committee/
Monitoring Agency, available to the public through
advertisement in newspapers.
3. Insertion of New clause 52
(a) SEBI has decided to phase out EDIFAR gradually in
view of a new portal viz. Corporate Filing and
Dissemination System (CFDS) put in place jointly by
BSE and NSE at the URL www.corpfiling.co.in.
(b) Accordingly the listed companies are required to file
information with the stock exchange only through
CFDS.
(c) The compliance officer, appointed under Clause 47(a)
and the company shall be responsible for ensuring the
correctness, authenticity and comprehensiveness of
the information, statements and reports filed under this
clause and also for ensuring that such information is in
conformity with the applicable laws and listing
agreement. [Clause 52(1)(b)]
(C) Grading of IPO has been made mandatory. IPO grading (initial
public offering grading) is a service aimed at facilitating the
assessment of equity issues offered to public. The details are
covered separately under the head IPO Grading.
(D) SEBI (Central Listing Authority) Regulations has been repealed.
II. Secondary Securities Market
(A) Short Selling and Securities Lending and Borrowing
In order to provide a mechanism for borrowing of securities to enable
settlement of securities sold short, it was decided to put in place a full-
fledged securities lending and borrowing (SLB) scheme for all market
participants in the Indian securities market under the over-all framework
of Securities Lending Scheme, 1997.
(B) Introduction of mini derivative (Futures & Options) contract
on Index (Sensex & Nifty)
Mini derivative contract on Index (Sensex and Nifty) with a
minimum contract size of Rs. 1 lakh at the time has been
introduced.
(C) PAN has been made as the sole identification number for all
transactions in the securities market.
III. Mutual Funds
Waiver of load for direct applications. No entry load will be charged
for direct applications received by the Asset Management Company
(AMC) i.e. applications received through internet, submitted to AMC
or collection centre/Investor Service Centre that are not routed through
any distributor/agent/broker.
IV. Regulatory Developments
(A) Guidelines for consent orders for considering request for
composition of offences has been introduced.
(B) Securities and Exchange Board of India (Certification of As-
sociated Persons in the Securities Markets) Regulations,
2007 introduced.
B. Fast Track Issues (FTIs)
As stated earlier, some listed companies are now able to proceed
with follow-on public offering/rights issue by filing a copy of the Red
Herring Prospectus (in case of book built issue)/Prospectus (in case
of fixed price issue) registered with the Registrar of Companies or the
17 April 2008
 Academic Guidance
letter of offer filed with Designated Stock Exchange, as the case may
be, with SEBI and stock exchanges. Such companies are not required
to file draft offer document with SEBI and stock exchanges. Accordingly
the provisions relating to filing of offer document are not applicable to
public issue of securities by a listed issuer company or a rights issue
of securities by a listed issuer company, where the aggregate value of
such securities, including premium, if any, exceeds Rs. 50 lacs, if the
following conditions are satisfied:
(a) The shares of the company have been listed on any stock ex-
change having nationwide terminals for a period of at least three
years immediately preceding the reference date;
(b) The average market capitalisation of public shareholding of the
company is at least Rs. 10,000 crores for a period of one year up
to the end of the quarter preceding the month in which the pro-
posed issue is approved by the Board of Directors/shareholders
of the issuer; Average market capitalisation of public shareholding
has been defined to mean the sum of daily market capitalization
of public shareholding for a period of one year up to the end of
the quarter preceding the month in which the proposed issue
was approved by the Board/shareholders, as the case may be,
divided by the number of trading days. For this purpose, public
shareholding shall have the same meaning as assigned to it in
clause 40A of the Listing Agreement.
(c) The annualized trading turnover of the shares of the company dur-
ing six calendar months immediately preceding the month of the
reference date has been at least two per cent of the weighted av-
erage number of shares listed during the said six months period;
(d) The company has redressed at least 95% of the total shareholder/
investor grievances or complaints received till the end of the quar-
ter immediately preceding the month of the reference date;
(e) The company has complied with the listing agreement for a period
of at least three years immediately preceding the reference date;
(f) The impact of auditors qualifications, if any, on the audited
accounts of the company in respect of the financial years for which
such accounts are disclosed in the offer document does not
exceed 5% of the net profit/loss after tax of the company for the
respective years.
(g) No prosecution proceedings or show cause notices issued by the
Board are pending against the company or its promoters or whole
time directors as on the reference date; and
(h) The entire shareholding of the promoter group is held in
dematerialised form as on the reference date. Reference date
means in case of a public issue of securities by a listed company
satisfying all the requirements specified in this clause, the date of
filing of red herring prospectus (in case of a book built issue) or
prospectus (in case of a fixed price issue) with ROC; and in case
of a rights issue of securities by a listed company satisfying all
the requirements specified in this clause, where the aggregate
value of such securities, including premium, if any, exceeds Rs.
50 lacs, the date of filing of letter of offer with Designated Stock
Exchange.
A listed issuer company satisfying all the requirements specified in
this clause and filing a red herring prospectus (in case of a book built
issue) or prospectus (in case of a fixed price issue) with ROC or letter
of offer with Designated Stock Exchange, as the case may be, shall
simultaneously with such filing or as soon thereafter as reasonably
practicable, but in any case not later than the opening of the issue, file
a copy thereof with the Board.
C. IPO Grading
IPO grading (initial public offer 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.
Student Company Secretary
IPO grading is 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.
As per SEBI (DIP) Guidelines, an unlisted company making an
IPO of equity shares or any other security which may be converted
into or exchanged with equity shares at a later date has to mandatory
to obtain grading for such an IPO from one or more credit rating
agencies.
Accordingly, no unlisted company shall make an IPO of equity
shares or any other security which may be converted into or exchanged
with equity shares at a later date, unless the following conditions are
satisfied as on the date of filing of Prospectus (in case of fixed price
issue) or Red Herring Prospectus (in case of book built issue) with
ROC:
(i) the unlisted company has obtained grading for the IPO from at
least one credit rating agency;
(ii) disclosures of all the grades obtained, along with the rationale/
description furnished by the credit rating agency(ies) for each of
the grades obtained, have been made in the Prospectus (in case
of fixed price issue) or Red Herring Prospectus (in case of book
built issue); and
(iii) the expenses incurred for grading IPO have been borne by the
unlisted company obtaining grading for IPO.
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.
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 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 issues fundamentals. Thus, IPO grading is an additional
investor information and investment guidance tool.
Procedure for IPO Grading
Credit Rating agencies (CRAs) registered with SEBI will carry out
IPO grading.
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.
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 read as: Rating
Agency name IPO Grade 1 viz. CARE IPO Grade 1, CRISIL IPO
Grade 1 etc.
18 April 2008
 Academic Guidance
The assigned grade would be a one time assessment done at the transacted during 2007. the Bombay Stock Excange (BSE) sensex,
time of the IPO and meant to aid investors who are interested in which had been witnessing an upswing since the latter part of 2003,
investing in the IPO. The grade will not have any ongoing validity. scaled a high of 20, 000 mark at the close of calendar year 2007. The
The company needs to first contact one of the grading agencies National Stock Exchange (NSE) Index rose in tandom to close above
and mandate it for the grading exercise. The agency would then follow the 6,100 mark at the end of 2007. Both the indices more than tripled
the process outlined below. between 2003 and 2007, giving handsome yearly returns. Along side
the growth of business in the Indian capital markets, the regulatory
Seek information required for the grading from the company. and oversight norms have improved over the years ensuring a sound
On receipt of required information, have discussions with and stable market.
the companys management and visit the companys oper- Primary Market
ating locations, if required.
The primary capital market grew in 2006 and 2007 after the set
Prepare an analytical assessment report. back of 2005. The amounts raised and the number of new issues
Present the analysis to a committee comprising senior ex- which entered the market increased in 2007. The total amount of capital
ecutives of the concerned grading agency. This committee raised through different market instruments during 2007 was 31.5 per
would discuss all relevant issues and assign a grade. cent higher than during 2006, which itself had seen a rebound of 30.6
per cent over the lows of 2005 (See Table 1)
Communicate the grade to the company along with an as-
sessment report outlining the rationale for the grade assigned. Table 1 : Resource Mobilization through Primary Market
(Rs. Crore)
Though this process will ideally require 2-3 weeks for completion,
it may be a good idea for companies to initiate the grading process CALENDAR YEAR
about 6-8 weeks before the targeted IPO date to provide sufficient
Mode 2004 2005 2006 2007
time for any contingencies.
1. Debt 2383 66 389 594
SECURITIES LAWS AND REGULATIONS OF FINANCIAL 2. Equity 33475 30325 32672 58722
MARKETS/FINANCIAL, TREASURY AND FOREX Of which, IPOs 12,402 9918 24779 33912
MANAGEMENT Number of IPOs 26 55 75 100
Mean IPO size 477 180 330 339
INDIAN CAPITAL MARKET AN
CAPITAL 3. Private Placement 93,506 83,812 117,407 1,11,838*
OVER VIEW6
OVERVIEW 4. Euro Issues 2,029 9,788 11,301 41,567
(ADDR/GDR)
State of Economy
Total (1 to 4) 1,31,393 1,23,991 1,61,769 2,12,721
The economy has moved decisively to a higher growth phase. Till
a few years ago, there was still a debate among informed observers Source: SEBI and RBI (for Euro issues)
about whether the economy had moved above the 5 to 6 per cent @ Till November 2007
average growth seen since the 1980s. There is now no doubt that the
economy has moved to a higher growth plane, with growth in GDP at Component-wise, private placement at Rs. 1,11.838.crore (up to
market prices exceeding 8 per cent in every year since 2003-04. The November 2007) accounted for the major share during 2007. The total
equity issues mobilized was Rs. 58,722 crore, of which Rs. 33,912
projected economic growth of 8.7 per cent for 2007-08 is fully in line
crore was accounted for by the Initial Public Offerings (IPOs). During
with this trend. There was an acceleration in domestic investment and
2007, the total number of IPOs issued was 100 as compared to 75 in
saving rates to drive growth and provide the resources for meeting the
the previous year.
9 per cent (average) growth target of the Eleventh Five-Year Plan.
Macroeconomic fundamentals continue to inspire confidence and the In line with the rising trend in resources raised in the primary market,
investment climate is full of optimism. Buoyant growth of government the net inflow of savings into mutual funds increased by over 30 per
revenues made it possible to maintain fiscal consolidation as mandated cent in 2007 to Rs. 1,38,270 crore (see Table 2)
under the Fiscal Responsibility and Budget Management Act (FRBMA). Table 2 : Trends in resource mobilization (net) by mutual funds
The decisive change in growth trend also means that the economy (Rs. Crore)
was, perhaps, not fully prepared for the different set of challenges that
accompany fast growth. Inflation flared up in the last half of 2006-07 CALENDAR YEAR
and was successfully contained during the current year, despite a global Sector 2004 2005 2006 2007
hardening of commodity prices and an upsurge in capital inflows. An
appreciation of the rupee, a slowdown in the consumer goods segment 1. UTI -1,487 1,273 6,426 9,245
of industry and infrastructure (both physical and social) constraints,
2. Public Sector -1,262 4,446 12,229 8,259
remained of concern. Raising growth to double digit will therefore
require additional reforms. 3. Private Sector 7,524 19,735 86,295 1,20,766
Capital Market
4. Total (1 to 3) 4,775 25,454 1,04,950 1,38,270
The capital market remained buoyant during 2007. Relatively
stable macro economic conditions as reflected in moderate rate The sharp increase in funds flowing into mutual funds during 2007
of inflation, growth-conducive interest rate situation, improved was partly due to buoyant equity markets and partly to efforts made by
fiscal conditions and larger investor participation augured well for the Indian mutual funds to introduce innovative schemes. Income/
capital market as measured in terms of volume and value of debt-oriented schemes fared relatively better during the year compared
transactions. to other schemes. The private sector mutual funds outperformed the
public sector mutual funds in terms of resource mobilization in 2007.
The India Capital Market attained further depth and width in business The share of UTI and other public sector mutual funds in total amount
mobilized gradually declined over the years to 17.8 per cent in 2006
6. Compiled by V.P. Sharma, Joint Director, The ICSI and further to 12.7 per cent in 2007.
Student Company Secretary 19 April 2008
 Academic Guidance
Secondary Market
In the secondary market segment, the market activity expanded
further during 2007-08 with BSE and NSE indices scaling new peaks
of 21,000 and 6,300, respectively, in January 2008. Although the indices
showed some intermittent fluctuations, reflecting change in the market
sentiments, the indices maintained their northbound trend during the
year. This could be attributed to the larger inflows from Foreign
Institutional Investors (Flls) and wider participation of domestic
investors, particularly the institutional investors. During 2007, on a
point-to-point basis, Sensex and Nifty Indices rose by 47.1 and 54.8
per cent, respectively. The buoyant conditions in the Indian bourses
were aided by, among other things, India posting a relatively higher
GDP growth amongst the emerging economies, continued uptrend in
the profitability of Indian corporates, persistence of difference in
domestic and international levels of interest rates, impressive returns
on equities and a strong Indian rupee on the back of larger capital
inflows.
While the climb of BSE Sensex during 2007-08 so far was the
fastest ever the journey of BSE Sensex from 18000 to 19,000 was
achieved just four trading sessions. During October 2007. It further
crossed the 20,000 mark in December 2007 and 21,000 in an intra-
day trading in January 2008. However, BSE and NSE indices declined
subsequently reflecting concerns on global developments. BSE Sensex
yielded a compounded return of 36.5 per cent per year between 2003
and 2007. In terms of simple average, BSE Sensex has given an annual
return of more than 40 per cent during the last three years. BSE 500
recorded compounded annual return of 38 per cent between 2003
and 2007.
Among the Asian stock markets, Chinese and Indonesian markets
outperformed the Indian markets in terms of cumulative performance
over 2003 levels. While the BSE Sensex rose by 47.1 per cent during
2007, SSE Composite Index (Shanghai, China) rose by 96,7 per cent
and the Jakarta Composite Index (Indonesia) increased by around 52
per cent.
As the stock indices scaled new highs, investors' wealth as
reflected in market 'capitalization also rose correspondingly. The market
capitalization in India nearly doubled in 2007. The markets were more
stable in 2007 as measured by the standard deviation of daily volatility
of the Indian indices as compared to the previous year. The price-to-
earnings (P/E) ratio, which partly discounts future corporate earnings
reflecting investors' expectations of corporate profit, was higher at
around 27 by end-December 2007 as compared to around 21 at end-
December 2006.
Other Initiatives
Under the overall guidance of SEBI, BSE and NSE jointly launched
a common electronic platform at www.corpfiling.co.in [also referred as
Corporate Filing and Dissemination System (CFDS)] on April 1, 2007.
This portal acts as:
(i) A common place for filing of information on listed companies, and
(ii) A common place for viewing information about listed companies.
A subcommittee appointed by the SEBI Committee on Disclosures
and Accounting (SCODA) has been given the task of integrating initial
and continuous disclosures of listed companies. The main objective
of this exercise is to reduce duplication of disclosures by issuers.
Policy and Regulatory Initiative 2007
During 2007, several policy initiatives relating to the capital market
were taken. The salient developments in the primary and secondary
markets, as well as FII investment and mutual funds are delineated below.
Primary Market Regulations
During 2007, SEBI amended Disclosure Investor Protection (DIP)
Guidelines to
(i) Permit "Fast Track Issues" for well established and compliant
listed companies so as to enable such companies to access the
capital market in a time effective manner.
Student Company Secretary
(ii) Allow all categories of investors to apply in an IPO of Indian De-
pository Receipts (IDRs) and reduced the minimum application
value in an IDR issue to Rs. 20,000 from Rs. 2 lakh.
(iii) Mandate use of Permanent Account Number (PAN) in all applica-
tions irrespective of value.
(iv) Enable companies making public issues to issue securities to
retail individual investors/retail individual shareholders at a dis-
counted price.
(v) Include mandatory grading of IPOs under the eligibility criteria for
an IPO.
(vi) Relax certain provisions like minimum dilution requirements and
minimum period of holding of pre-issue capital to be issued in an
offer for sale, eligibility of shares for the purpose of computation
of promoters' contribution, etc., to facilitate Government
companies/ corporations, statutory authorities/ corporations or any
special purpose vehicle set up by any of them, which are engaged
in infrastructure sector, to raise funds in the Indian primary market
through IPOs.
(vii) Remove the stipulation that debt instruments issued through
public/rights issues shall be of at least investment grade to widen
the corporate bond market. Further, issuers now need to obtain
rating from only one credit rating agency instead of two,
intermediaries/investors and improving access to the information
placed on the public domain.
A group called GRIP (Group on Review of Issue Process) appointed
by the Primary Market Advisory Committee has been given the task of
reviewing the entire issue process with the objective of making the process
(i) More efficient in terms of time and cost and align it with interna-
tional standards;
(ii) Widely accessible to all;
(iii) Leverage the existing infrastructure and databases of Indian se-
curities market; and
(rv) Bring more efficiency in discovering price of public issues.
SEBI registered VCFs, desirous of making investments in offshore
venture capital undertakings, can submit their proposal for investment
directly to SEBI for prior approval, without separate permission from RBI.
To provide a better framework for delisting of securities from the
stock exchanges, SEBI has initiated work for converting the SEBI
(Delisting of Securities) Guidelines, 2003 into Regulations.
With the objective of developing the corporate bond market, SEBI
has proposed the simplification of the primary debt market issuance
process. Some of the major features of the proposed regulations
include rationalization of disclosure requirements, enhanced
responsibilities to merchant bankers for exercising due diligence and
issuance of certificates in regard to new issuances, and mandatory
listing of private placement of debt.
SEBI has proposed Regulations for "Public Offer and Listing of
Securitized Debt Instruments". The draft regulations provide for a
system of special purpose distinct entities which could offer securitized
debt instruments to the public or could seek listing of such instruments.
Secondary Market Regulations
To implement the budget announcement on creation of a unified
platform for trading of corporate bonds, SEBI stipulated that an
authorized reporting platform be established to capture all information
related to trading in corporate bonds as accurately and as close to
execution as possible. Permission was accorded for setting up trading
platforms at BSE and NSE for corporate bonds.
It was made mandatory for companies issuing debentures to
disseminate all the required information in the event of: (i) default by
issuer company to pay interest on debentures or redemption amount;
(ii) failure to create a charge on the assets; and (iii) revision of rating
assigned to the debentures.
SEBI has stipulated that Permanent Account Number (PAN) would
20 April 2008
 Academic Guidance
be the sole identification number for all participants in the securities market, the candidates in most of the papers, some candidates were not able to
irrespective of the amount of transaction with effect from July 2, 2007. clear the examination due to various drawbacks in their answers. Therefore,
Sixteen stock exchanges successfully completed their it would be beneficial for these candidates to know the general weakness/
demutualization process during August-September 2007 by diluting drawbacks in their answers. Although, it is not possible to give comments
at least 51 per cent of their equity shareholding to public, other than on each and every candidates answer scripts, some common drawbacks
shareholders having trading rights. Presently, there are 18 corporatized based on the comments and observations noted by the examiners have
and demutualized stock exchanges in the country. been culled and given paper-wise hereunder for information of the
candidates so as to enable them to overcome their deficiencies and
On December 20, 2007, SEBI permitted short selling by institutional improve their performance in the forthcoming examination.
investors, in addition to the retail investors who were allowed to short
sell hitherto. Table A
SEBI has approved the introduction of seven new products - mini- Statement Showing the Pass Percentage of Papers in
contracts on equity indices, options with longer life/tenure, volatility December 2007 Examination
index and Futures and Options (F&O) contracts, options on futures, Subjects Percentage of
bond indices, exchange-traded currency (foreign exchange) futures & Candidates Secured
options, and introduction of exchange-traded products to cater to 40 to 49% 50 % and
different investment strategies. The mini derivatives contract on index marks above
(Sensex and Nifty) with a minimum contract size of Rs. 1 lakh was marks
introduced from January 1, 2008.
INTERMEDIATE COURSE
SEBI has proposed additional regulations to the SEBI (Prohibition
of Insider Trading) Regulations, 1992, with a view towards incorporating 1 General and Commercial Laws 22.0 52.6
an additional corporate governance measure which aligns the interests 2 Company Accounts and Cost & 28.1 32.7
of a company's shareholders to that of the company's insiders. This Management Accounting
seeks to compel an "insider" to surrender such profits to the company
in any of his/her transaction concerning equity based securities of the 3 Tax Laws 25.1 43.1
company (including its parent's or subsidiary's shares) in the event 4 Management Information Systems 27.9 46.0
both the buy and sell sides of the transaction are entered into within and Corporate Communication
six months of the other. Such a regulation would check insiders, who
have greater access to price sensitive company information, from taking 5 Company Law 21.6 54.6
advantage for making short-term profits. 6 Company Secretarial Practice 21.8 56.3
During the year the investment limit for FIIs in Government 7 Economic, Labour and Industrial Laws 23.7 51.7
Securities was enhanced from US$ 2 billion to US$ 2.6 billion. In
October 2007 SEBI prohibited Flls and their sub-accounts from Issuing 8 Securities Laws and Regulation 21.2 57.8
or renewing Participatory Notes using offshore derivative instruments of Financial Markets
like futures and options. FINAL COURSE
In respect of Mutual Funds, SEBI amended the SEBI (Mutual Funds) 1 Advanced Company Law and Practice 32.4 57.7
Regulations, 1996, to disallow a trustee of a mutual fund to act as a
trustee or a director on the asset management company of any other 2 Secretarial Practice Relating to 52.1 30.7
Economic Laws and Drafting &
mutual fund and specifying the methodology for the valuation of gold
Conveyancing
for the purpose of gold exchange traded funds.
Guidelines were issued restricting the limit of parking of funds by 3 Secretarial, Management and 26.3 65.7
Systems Audit
mutual funds to 15 per cent of their net assets in short-team deposits
with all scheduled commercial banks with a sub-limit of 10 per cent 4 Financial, Treasury and Forex 19.8 68.2
with any one scheduled commercial bank. Also, SEBI increased the Management
limit for overseas investment by each mutual fund from US$ 200 million 5 Corporate RestructuringLaw and 28.9 65.1
to US$ 300 million. Practice
With effect from January 4, 2008, entry load by mutual funds was 6 Banking and InsuranceLaw and 39.8 50.7
waived for investors making applications for investment in mutual fund Practice
schemes directly. SEBI has proposed Real Estate Investment Trust
Regulations with a view to encourage and facilitate growth of such 7 World Trade Organization 26.7 59.3
trusts in India. In pursuance of Budget (2007-08) announcement SEBI International Trade, Joint Ventures
and Foreign Collaborations
has appointed a committee on the launch of dedicated infrastructure
funds (DIF) by mutual funds. In consonance with the international 8 Direct and Indirect TaxationLaw 22.3 67.3
practices, SEBI proposes to introduce the fast-track model for the and Practice
launch of products by mutual funds. 9 Human Resource Management and 48.6 40.9
Industrial Relations
EXAMINERS OBSERVATIONS AND COMMENTS
OBSERV INTERMEDIATE COURSE
ON THE PERFORMANCE OF EXAMINEES IN 1. GENERAL AND COMMERCIAL LAWS
DECEMBER 2007 EXAMINA TION*
EXAMINATION* The candidates in this paper were lacking conceptual clarity as at
The December 2007 session of the Company Secretary Course times wrote lengthy and irrelevant answers. They failed to mention
Examination was held from 26th December, 2007 to 3rd January 2008. relevant legal provisions and could not give sound legal reasoning
The pass percentage for all papers of both Intermediate and Final Courses while dealing with problem oriented questions. Majority of the
have been compiled and given in Table A hereunder for the information of candidates while attempting the descriptive questions quoted neither
the students. Though the pass percentage showed good performance by relevant statutory provisions nor the case law. The candidates could
not communicate their knowledge about the subject due to poor
*Compiled from Examiners Report communication skills.
Student Company Secretary 21 April 2008
 Academic Guidance
The performance of the candidates in Question No. 1 was not good.
The answers written to part (ii) of the question were irrelevant. Majority
was confused with part (vi) of the Question referring Article 21 instead
of section 11 of Civil Procedure Code. In Question No.2, many ignored
to refer case law under Article 21. The question required elaboration
with decided cases. In Question No. 3(i) the distinction between sub-
mortgage and puisne mortgage was not given by many. Question No.
4 was attempted by majority and their performance was satisfactory.
Some displayed poor performance in Question No. 4(a) and 4(c). The
performance in Question No.5 was extremely poor. Very few attempted
Question No.5 (i) pertaining to noscitur a sociis. Question No. 6 was
fairly well attempted. However, very few attempted methods of stamping
in part (b) of the Question. The performance in Question No 7 was not
up to the mark in particular the problem relating to Societies Registration
Act and Indian Trusts Act. The general level of performance in Question
No. 8 was not satisfactory. Many could not answer part (c) of the
Question properly.
Candidates are advised to read the study material along with
suggested readings given in the study material so as to have in-depth
knowledge of the subject. Read Bare Acts to have through knowledge
of the legal provisions and support your answers by quoting relevant
legal provisions, latest amendments and case law. While dealing with
problem oriented questions quote relevant legal provisions and support
your answers by giving sound legal reasoning. Avoid irrelevancy and
write to the point answers. Read Student Company Secretary Bulletin,
Chartered Secretary and other professional journals to update with
latest legislative developments as well as judicial pronouncements.
2. COMPANY ACCOUNTS AND COST & MANAGEMENT
ACCOUNTING
It was observed that candidates in general were not found to be
quite familiar with how to write specific answers so that examiner can
assess their knowledge. In objective type questions, answers were
not tailored to suit what was asked in the questions. In few cases, it
was observed that candidates were not familiar in passing of journal
entries. Lack of understanding of basic concepts and fundamental
principles of accounting and cost accounting was evident from the
answers.
In Question No.1 (a) and 5(a) some candidates could not give
sufficient reasons while justifying correct or incorrect statements. Few
candidates narrated lengthy answers or subject matter. In part (b) exact
answers for filling the blanks were missing. In part (c) candidates were
not familiar with the rates of managerial remuneration payable to
different directors. In Question No.2 candidates were not familiar with
AS 9 regarding the effect of uncertainties on revenue recognition. In
part (b) some candidates even prepared consolidated balance sheet
which was not asked in the question. Many made mistakes in arriving
at the pre-acquisition profits and reserves resulting in wrong amount
of cost of control. In Question No.3 (a) candidates could not find out
the correct rate of dividend resulted in wrong value of equity shares.
In part (b) accounting treatment pertaining to reconstruction was not
clear and many candidates did mistakes in passing journal entries
that too at times without narration. In Question No.4(c) candidates
found confused while passing journal entries in the given situation.
Question No.5(c) knowledge of the basic concepts of cost accounting
were absent while distinguishing the given terms. By and large,
Question No.6 was answered including the practical question on
marginal costing. Question No 7(a) though from the study material,
many could not correctly prepare a statement of apportionment of
joint costs to other products. Mistakes were observed in calculating
the cash from operating activities in part (b). In Question No.8 some
candidates discussed the meaning of the terms spoilage and
defectives instead of giving its accounting treatment in cost accounting.
Calculation of closing stock was the main mistake while arriving stock
turnover ratio in part (b).
Being a problem oriented paper more practice is required in solving
practical questions to score good marks. It should be ensured that
working notes should also be shown along with the answers wherever
Student Company Secretary
necessary. Further, candidates are advised to have thorough study of
the subjects by referring to study material, suggested readings,
guideline answers, etc, to have clear conception in various topics.
3. TAX LAWS
It was observed that in some cases, candidates lacked clarity and
preciseness while answering questions relating to direct tax and indirect
tax. The conceptual knowledge, of various provisions of the Income
Tax and Wealth Tax Act was lacking. In some cases answers were
vague and ambiguous.
Question No.1(a) dealt with Sections 64(1A), 142(1) and 80CCC
of the Income Tax Act, while Part (b) dealt with matters concerning tax
return preparers under Section 139B of the Income Tax Act. By and
large the performance of candidates was satisfactory. In Question
No.2(b), candidates lacked clear understanding of matters relating to
business income, salary income and FBT. In Question No.3, some
candidates gave out of context comments on matters relating to house
property, business and professional income, residential status and they
lacked conceptual understanding of TDS provisions relating to
contractors. In Question No.4(a) candidates gave answers in general
terms relating to RPF, UPF, Survey and Tax Audit. In Question
No.4(b), majority of candidates failed to compute wealth tax liability
correctly. In Question No.5(b), majority of the candidates failed to give
correct treatment to the capital gain tax having exchange rate and
conversion rate ramifications. In Question No.6, the provisions relating
to e-filing under Central Excise Act, 1944 and transfer of documents
of title under Central Sales Tax, where many candidates could not
perform. The performance in part (c) was poor due to lack of analytical
knowledge about important components of CST. Candidates fared
satisfactory in Question No.7 consisted of mainly objective questions
and short notes relating to CENVAT Credit Rules, Customs Act, 1962,
Central Excise Act, 1944 and CST. In Question No.8 pertaining to
CST, Customs Act and Central Excise Act, 1944 most of the candidates
answered satisfactorily baring few.
Candidates are advised to be thorough of the various provisions of
direct taxes and indirect taxes for scoring good marks. Moreover
candidates should make use of the Study Material, Suggested
Readings, Bare Acts, reference books and other relevant periodicals
in order to sharpen their skills and knowledge.
4. MANAGEMENT INFORMATION SYSTEM AND
CORPORATE COMMUNICATION
Candidates in general lacked conceptual clarity of the subject. They
were not very conversant with the various emerging concepts in the
field of information technology and the emerging trends in corporate
communication.
Except for Parts (a) of Question No.1 the candidates were unable
to answer the other parts of the question satisfactorily. Very few
candidates gave correct answers to fill in the blanks in part (b) of the
question. Part (c) of the question was not attempted by a majority of
the candidates. In part (d) of the question candidates failed to provide
any feasible solutions to the company to solve its infrastructure
constrains. Very few candidates attempted Question No.2, but those
who attempted the question answered it quite well. The candidates
presented good analytical skills and were able to understand the case
study. Question No. 3 was not satisfactorily answered by a majority of
the candidates. In part (a) of the question candidates had no knowledge
of digital wallet and electronic wallet. Similarly, in part (b) of the
question a majority of the candidates failed to list the advantages
accruing to the citizens and the officials of Coimbatore Municipal
Corporation by this shift to e-governance. In Question No.4 only a few
candidates could present the four basic parts of a decision table in
part (a) of the question. Similarly the candidates had very little or no
idea at all about the ERP modules and their objectives in part (b) of
the question. However, the candidates could easily sail through part
(c) of the question relating to short notes. Question No.5(a) relating to
multiple choice questions was correctly answered by a majority of the
candidates. In part (b) the candidates failed to fill in the blanks with the
22 April 2008
 Academic Guidance
correct word. In part (c) the candidates lacked knowledge of the
ACHIEVE model and thus failed to comment properly on the statement.
In part (d) majority of the candidates copied the question itself in the
answer and failed to do justice. While answering Question No.6 the
candidates lacked expression and presentation skills. The candidates
failed to suitably draft the advertisement for the post of Director
(Administration) in part (a) and were unable to provide suitable reasons
in part (c). In certain cases the one line press release required in part
(b) ran upto one page leading to putting in of irrelevant details. Part
(a) of Question No.7, was satisfactorily answered by almost all the
candidates. However, a majority of the candidates lacked understanding
of the case study while attempting part (b) of the question. Overall the
performance of the candidates in Question No. 8 was good. This
question relating to short notes was favourite among the candidates
and enabled them to score good marks.
Candidates need to have thorough understanding when answering
the questions relating to case studies. The quality of expression and
writing skills need to be enhanced while answering the questions.
5. COMPANY LAW
General performance for this subject was not found satisfactory.
Lack of clarity and expression of thought was observed in the answers.
While attempting case law based questions, analytical approach was
missing. Stating the relevant section or rule and citation of leading
cases in support of the answers, was also found missing in many
answers.
All the parts of Question No. 1 were not attempted satisfactorily by
most of the candidates. Majority failed to understand the meaning of
word sense in part (ii). In Question No. 2, candidates were asked to
comment whether the statements were correct or not. The answers
were very vague, general and lengthy. Most of the candidates answered
correctly to Question No. 3. Part (a) to Question No. 4 asking for
distinguishing the terms was very well attempted by most of the
candidates. Part (b) was case law based question and answers showed
lack of in-depth knowledge on the part of candidates. Some of the
candidates answered part (c) well. Both parts (a) and (b) to Question
No.5 were answered satisfactorily. Part (c) again showed lack of
understanding and reasoning on the subject. Part (a), (b) and (c) to
Question No. 6 were attempted fairly well. In Part (d), majority of the
students could not give the legal support to the answer. Question No.
7(b) i.e. provisions for payment of interest out of capital was
unsatisfactorily answered, other parts i.e. (b) and (c) were attempted
well.
More attention should be given for practical application of law while
writing answers, i.e. stating the law with relevant sections, citing case
laws and concluding the answers with appropriate decisions/advice.
Candidates must also improve English language for perfect expression
of thought. Very intensive coaching is the need of the day. Candidates
must give greater emphasis on response sheets, importance to Bare
Act for precise knowledge of statutory provisions of the Companies
Act. Candidates are further advised to continuously update their
knowledge by referring to the latest edition of standard text books,
Chartered Secretary, Student Company Secretary and other corporate
journals.
6. COMPANY SECRETARIAL PRACTICE
In this paper, though candidates exhibited reasonable academic
knowledge but lacked practical knowledge. Improvement is required
in the approach of candidates towards practical application of theoretical
concepts. Some candidates wrote lengthy and irrelevant answers and
made repetition as well as mistakes. Drafting of resolutions and notice
was poor. Conceptual clarify of the subject was missing. Candidates
were not very well versed with the concept of electronic filing.
In Question No.1, the performance of the candidates was average.
Candidates were not aware of the provisions regarding proxy, MDs
remuneration and sole selling agent. Question No. 2 was not properly
answered as many candidates had redrafted the notice but not pointed
out the errors in it. In Question No. 3, candidates were aware about
Student Company Secretary
the meeting in which the resolution was required to be adopted but
absence of drafting skills was much evident in the answers. Very few
candidates have attempted Question No. 4 and they were not aware
of the provisions of book closure. Very few Candidates were having
knowledge regarding the procedure for removal of statutory auditor.
For Question No. 5, candidates answered correctly in many cases
but failed to give the appropriate reasoning in the light of legal
provisions. Question No. 6 was answered well but the latest provisions
regarding e-filing were not known by many. Part (a) of Question No. 7
i.e. procedure for shifting its registered office was well answered.
However, part (b) related to Compounding of offences was correctly
answered only few candidates. Question No. 8 was attempted by
majority of candidates and secured good marks.
It is observed that candidates do not make a detailed study of their
subject. Candidates are therefore advised to give time and have
patience while going through the study material, keep themselves
abreast of the latest developments, answer the questions by quoting
the necessary provisions/sections of the Act and relevant case laws.
Candidates should read and understand the questions properly before
answering the same. They should improve their presentation skill and
written English. Neat and clear handwriting helps in fetching good
marks. Drafting skills need to be strengthened and they are advised to
focus more on application of law. Candidates should study articles
and write ups in financial dailies like Economic Times, Business
Standard etc. They should attend Seminars/Conferences.
7. ECONOMIC LABOUR AND INDUSTRIAL LAWS
The overall performance of the candidates in this paper was fairly
well. However, in certain questions, candidates lacked through
knowledge and practical approach. Lack of knowledge of the provisions
of various Acts especially Foreign Exchange Management Act, Foreign
Contribution Regulation Act, intellectual property laws was noticed.
Many candidates wrote general answers without supporting them with
relevant statutory provisions and case law.
Majority of candidates answered Question No.1 well. However,
some answers were found vague, lacking conceptual clarity and
knowledge of the relevant statutory provisions particularly in respect
of Competition Act. Answers to Question No.2 were found to be
reasonably good. However, in some cases candidates failed to give
reasons to their answers. In Question No.3(a) answers pertaining to
distinctions between small scale undertaking and ancillary industrial
undertaking, RTPs and UTPs were not found satisfactory. Most of the
candidates correctly filled-up the blanks with appropriate words/
numbers in Question No.3(b). In Question No.4 candidates showed
lack of knowledge of relevant statutory provisions of Foreign Exchange
Management (Current Account Transactions) Rules, 2000. Some
candidates did not attempt question 4(b) and (c). Answers to Question
No.5 being general in nature was well attempted by the candidates.
In Question No.6 answers were just average as candidates wrote
answers without referring to specific provisions of relevant Laws. The
given practical question was also not correctly, explained the light of
decided cases. In Question No.7 candidates did not properly explain
the given cases by referring to the case laws and provisions of relevant
laws.
Candidates are advised to read the questions carefully and answer
logically conforming to the requirements of each question. Candidates
are required to support their answers with relevant case laws particularly
in practical questions. They should continuously update their knowledge
to keep abreast of latest developments taking place by referring to
Chartered Secretary, Student Company Secretary and other corporate
journals.
8. SECURITIES LAWS AND REGULATION OF FINANCIAL
MARKETS
Most of the candidates were lacking practical aspects of securities
market. Some of the candidates did not read and understand the
question. Most of the candidates had written general answers and not
answers to the point.
23 April 2008
 Academic Guidance
Though the performance of the candidates to Question No.1 was
good, reasons given for true or false were not appropriate in most of
the answers. Candidates showed average performance to Question
No 2. The short notes on rolling settlement and STP were not attempted
in logical manner. The concept of FCCB was not clear in Question No
3(b). Candidates were not clear about the concept of anti money
laundering; guidelines on voluntary delisting etc in Question No 4. In
Question No 5, many students failed to calculate the NAV correctly. In
Question No 7, the answers for unique client code were hardly written.
The clarity was lacking especially in Question 7(b) pertaining to SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
Most of the Candidates attempted Question No.8 correctly.
The candidates are expected to be conversant with study material.
They are suggested to keep themselves updated with latest guidelines,
circulars and amendments issued by SEBI from time to time. To
understand the practical implications on the subject, candidates are
advised to read economic daily, corporate journals etc., in addition to
student company secretary and chartered secretary.
FINAL COURSE
1. ADVANCED COMPANY LAW AND PRACTICE
The overall performance of the candidates in this paper was just
satisfactory. The basic knowledge of company law, i.e. knowledge about
sections, decided case laws, etc. expected from the candidates of
final course was lacking. There was further scope for updated
knowledge.
Candidates did very well in answering all parts of Question No. 1
except for parts (v) and (vi), which were related to rules relating to
Company Secretary in full-time employment and provisions on sick
company. Candidates were not specific in answering Question No. 2
they had written every thing they knew on the topic. Answers were not
logical. Lack of clarity was found in answers to Question No. 3(a) on
procedure for filing a petition. Part (b) relating to provisions on receivers,
was not attempted by most of the candidates. Answers to Question
No. 4 (a) and (b) were reasonably good but very few candidates could
give correct answer to part (c) which was related to circumstances
under which a company as a plaintiff was asked to provide for costs.
The candidates were able to answer all parts of Question No. 5.
Answers to question no. 6(a) were satisfactory. In part (b), many
candidates did not comment on the position of the dissenting
shareholder. Answers to Part (a) and (b) of Question No. 7 were
satisfactory, many were not aware of the provisions of Canadian
Company Law under Question No. 7(c). Very few candidate could
answer part (a) and (c) of Question No.8 correctly. Part (a) was related
to section 293(a) of the Companies Act, 1956 and part (c) was related
to the provisions of SICA in combination with repayment of deposits
under section 58A(9) of the Companies Act, 1956.
Candidates should note that it is the quality of the answers and not
the quantity which helps in scoring marks. They must develop precision
in answering the questions, should be to the point and specific while
answering. Candidates should answer what exactly is asked.
Candidates are further advised to continuously update their knowledge
by referring to the latest edition of standard text books, Chartered
Secretary, Student Company Secretary and other corporate journals.
2. SECRETARIAL PRACTICE RELATING TO ECONOMIC
LAWS AND DRAFTING AND CONVEYANCING
The overall performance of the candidates in this paper was found
to be reasonably fair, except few questions in which candidates resorted
to guess work perhaps due to lack of adequate preparation.
The candidates answered Question No.1 reasonably well; however,
they could not reason out and support their answers with relevant
case laws. Most candidates attempted Question No.2 well exhibiting
knowledge and understanding of the law and subjects. Answers to
Question No.3 were found to be just satisfactory, moreover answers
to Question No.3(c) were found to be below desired levels. In Question
No.4 candidates were found to be well prepared as the candidates
answered this question reasonably well. Answers to Question No.5
Student Company Secretary
were below expectations. Candidates found lacking in drafting skills,
particularly in Question No. 5(iv) and (v) dealing with drafting of
dismissal order and deed for surrender of lease. Candidates answered
Question No.6 well, except in some cases the lack of adequate
knowledge was apparent. Answers to Question No.7 were not found
to be satisfactory. Lack of drafting skills was noticed in answers to
Question No.8 relating to deed of gift for immovable property and
specimen power of attorney to sell a specific immovable property.
This paper requires understanding on application of law. The
candidates are therefore advised to use the legal language in drafting
agreements, deeds, etc. and also include all-important clauses. As
the candidates were found very poor in drafting of legal documents,
they are advised to read the suggested readings on drafting and
conveyancing. Problems based on decided cases should be supported
by relevant case law. Candidates are advised to prepare themselves
in an organized manner and keep themselves abreast of the
government guidelines and the new declared policies.
3. SECRETARIAL, MANAGEMENT AND SYSTEMS AUDIT
Candidates in general showed superficial knowledge of basic
concepts of the subject. They gave irrelevant details while answering
short answer questions. It was observed that candidates did not study
the subject thoroughly to have expert knowledge of the applicable
statutes.
Parts (a) and (c) of Question No.1 were answered quite well by the
candidates. Candidates lacked knowledge of the legal provisions
relating to transfer of shares in case of loss of share certificate in part
(b). Only a few candidates could present the relevant case law in this
regard. In Question No.2 the performance of the candidates was
satisfactory. Only a few candidates attempted part (a) of the question
relating to the additional infrastructural requirements required for setting
up professional practice as a Practising Company Secretary
consequent upon the implementation of MCA-21 scheme. In parts (b)
and (c) of the question the answers were not of the standard expected
from candidates of the final course. Question No.3 was not very
satisfactorily answered by a majority of the candidates. In part (b)
candidates had no knowledge of the circular issued by the National
Stock Exchange authorising Practising Company Secretaries to issue
certifications at par with Chartered Accountants regarding compliances
by its trading members. Similarly, in part (c) of the question reference
to the relevant sections of the Act were missing in the answers. In part
(d), candidates were unable to understand the question itself and
majority of the candidates were of the view that the PCS need not
make any observations or comments. The overall performance of the
candidates in Question 4 was good. Part (a) of the question relating to
SWOT analysis was fairly attempted by a majority of the candidates.
However, originality and pertinent points were missing in respect of
each of the comments of the operational auditor in part (b) of the
question. Question No.5(a) on the duties of the statutory auditor
pursuant to Companies (Auditors Report) Order, 2003 was not
completely answered by a majority of the candidates. In part (b) the
candidates had very vague idea about criteria to be adopted by the
statutory auditor while reviewing the work of internal auditor. In part (c)
the candidates lacked knowledge of the provisions of Chapter VI Part
IXA of the Companies Act, 1956. In part (d) majority of the candidates
lacked understanding and referred to custodian agreements and
assets under the custody of an outsider. Question No.6 was
satisfactorily answered by only a few of the candidates as they could
not calculate the various ratios correctly. The candidates were unable
to present the correct conclusions and working notes were missing
from the answer scripts. In Question No.7, the candidates did not have
adequate knowledge of change management and systems audit.
Overall the performance of the candidates in this question was good.
This being a core subject attracting thorough knowledge of the
applicable statutes, candidates are advised to read the professional
journals, newsletters, magazines, etc. on a regular basis to update
their knowledge.
24 April 2008
 Academic Guidance
4. FINANCIAL, TREASURY AND FOREX MANAGEMENT
Candidates in general showed just satisfactory performance in this
paper. Question No.1 was very well attempted by a majority of the
candidates except for part (iii) of the question relating to options as a
risk hedging instrument. The candidates showed very good
performance in Question No.2(i) as most of them were conversant
with the computation of EPS. But in part (iii) of the question very few
candidates were aware that risk is determined by combined leverage.
Detailed working notes were missing in most of the answer books.
Most of the candidates failed to calculate working capital requirement
through operating cycle method in part (a) of Question No.3. Similarly,
in part (b) they found difficulty in calculating the expected market price,
if increase in required yield is 80 basis points. The performance of the
candidates was found to be average in answering Question No.4
relating to distinction between concepts/terminologies. The
presentation skills were not upto the mark and candidates lacked
knowledge of the concept of efficient market theory in which the
candidates presented very vague thoughts. Very few candidates
attempted Question No.5(a) relating to computation of Rate of Return
and those who attempted were unable to answer correctly. The concept
of Marginal Cost of Capital was not clear to majority of the candidates.
Part (b) of the question relating to selection of machine was well
attempted by the candidates. The candidates seem to have little or no
knowledge about Futures Market. Part (a) of Question No.6 relating to
futures contracts was poorly attempted. However, part (b) of the
question relating to use of Modigliani-Miller Model for ascertaining the
price of the companys shares at the end of the year, when dividend is
declared and when no dividend is declared, was answered correctly
by most of the candidates. In Question No.7 on short notes majority of
the candidates failed to present the answers to the examiners
satisfaction. The candidates had poor knowledge of Sharpe index.
Parts (ii) and (iii) relating to Re-financing and bridge finance were
satisfactorily answered. Candidates also could not answer parts (iv)
and (v) relating to arbitrage-free market and Hedge funds satisfactorily.
Part (vi) relating to depository system in India was a cake walk for a
majority of the candidates as they could answer this part quite well.
Candidates are advised not to restrict themselves to the study
material only. They should also refer to standard text books and financial
dailies and have thorough understanding of the subjects for conceptual
clarity. They are also advised to practice practical problems (numerical)
on the subject to enhance their analytical skills.
5. CORPORATE RESTRUCTURINGLAW AND PRACTICE
The performance of the candidates in this paper was satisfactory.
However, improvement is required in the approach of candidates
towards practical application of theoretical concepts. Drafting of
resolutions requires more consideration. Facts and relevant provisions
of laws should be properly blended while drafting the resolutions.
Question No. 1(a) was answered correctly by most of the candidates.
In Question No. 1(b), which was asking whether the given statements
were correct or not, clarity of understanding was needed. Answers were
not supported by the legal provisions by many candidates. Question
No.2 which was based on practical problem on corporate restructuring,
was attempted by very few candidates. Further, those who have
attempted did not answered satisfactorily. Question No. 3 was well
attempted by almost all the candidates. Question No. 4 was a direct
question based on distinction between terms and short notes was very
well attempted by the candidates. Answers to Question No.5, relating to
SEBI, Takeover Regulations illustrated fair knowledge of provisions of
takeover regulations in the candidates. Part (b) relating to drafting of
the resolution was poorly attempted by many candidates. In part (a) of
Question No. 6, most of the candidates could not understand the
difference between shares and warrants. They gave their answers only
on the basis of shares. Question No. 7(a) was well attempted by the
candidates. In writing answer to part (b), many candidates wrote the
steps to be taken instead of the key clauses to be covered in the scheme
of amalgamation. Part (a) of Question No. 8 was replied satisfactorily
while in part (b), resolution was poorly drafted.
Student Company Secretary
Recent case laws and statutory provisions are the backbone of the
subject, Corporate Restructuring. Current updates relevant to the studies
are must. Candidates should build up strong fundamentals by being
thorough with the study material of the Institute and developing analytical
and reasoning skills. Mentioning the related rules, sections, forms,
competent authority etc. will help in securing good marks. Answer to
the questions should be specific and to the point. Candidates should
update their knowledge with the latest developments taking place in the
corporate restructuring arena by referring to SEBI updates, Chartered
Secretary, Student Company Secretary and other corporate journals.
6. BANKING AND INSURANCE LAW & PRACTICE
Some candidates lacked understanding of basic concepts of the
subject. They put irrelevant details to fill more pages of answer books.
It was observed that candidates did not study the subject thoroughly
to abreast themselves of the latest changes and amendments taking
place in the area.
Parts (a), (c) and (d) of Question No.1 were answered quite well by
the candidates. Candidates lacked knowledge about calculation of
credit limits as per projected annual turnover method in part (b). The
candidates are expected to have in-depth knowledge of the
recommendations of various committees on banking sector reforms.
In Question No.2 the performance of the candidates was satisfactory.
Only a few candidates attempted part (i) of the question relating to
investment fluctuation reserve account. Question No.3 was well
answered by a majority of the candidates. Candidates had good
knowledge of Tier I and Tier II capital. They could easily distinguish
between internet banking and tele-banking. The overall performance
of the candidates in Question 4 was very poor as they gave only sketchy
answers. Part (ii) of the question as to whether the exposure norms
have helped banks in containing the level of non-performing assets in
India was attempted by very few candidates. Part (iii) on scope of gold
banking business in India was fairly attempted. The candidates were
not very conversant with the process of securitisation while answering
part (iv). Question No.5(a) on the various documents required at various
stages of life insurance was not completely answered by a majority of
the candidates. In part (b) the candidates had very vague idea about
how the banks should proceed for insurance of a house mortgaged
with it. In part (c) candidates lacked clear understanding of the
applicable law; very few candidates could reproduce the case law in
their answers. Parts (d) and (e) were answered by the candidates
quite well. Question No.6 was a favourite of a majority of the candidates
as they could answer this question quite well. The candidates were
able to present the role of insurance ombudsman in Redressal of
complaints relating to claims, procedure for appointment and licensing
of surveyors, sue and labour clause. etc. In Question No.7(i), the
candidates did not have adequate knowledge of the need for opening
up of the insurance sector to private participants. Part (iii) of the question
on necessity for insurance against third parties was also very poorly
answered. The answers to part (iv) of the question relating to objectives
of the reinsurance programme under the IRDA guidelines was not
answered properly by the candidates. Question No.8 was well
attempted by a majority of the candidates.
This being a dynamic subject attracting many amendment/changes
in the banking and insurance sector, candidates are advised to be well
aware and update about the latest developments taking place in this
area.
7. WORLD TRADE ORGANISATIONINTERNATIONAL-
TRADE, JOINT VENTURES AND FOREIGN COLLA-
BORATIONS
The overall performance of the candidates in this paper was found
to be fairly well. However, there is still room for improvement in some
areas. Candidates answered Question No. 1 well, however in some
cases the consistency required was found to be missing. In Question
No. 2, performance of the candidates was good, but answers to part (b)
were found to be lacking in proper understanding of various modes of
supply of services under GATS. Question No.3 was attempted fairly
good by most of the candidates. Most of the candidates performed well
25 April 2008
 Academic Guidance
in Question No.4 and 5(c). However, lack of understanding of law was
apparent in Question No. 5. Performance of candidates in Question No.
6 was reasonably good, except Parts (ii) & (iv), where the candidates
reflected poor understanding. Overall performance in Question No. 7
was just satisfactory as the desired clarity and understanding of the
subject was missing. Answers to Question No. 8 were found to be
average as the same reflected lack of understanding of the subject.
This paper requires continuous updation of knowledge and
candidates are expected to be well versed with latest developments in
the Government Policy on FDI, international trade, regional developments
and developments at WTO for scoring good marks. Candidates are
advised to regularly read the financial news papers and journals and
develop analytical and logical skills and improve their presentation skills.
8. DIRECT AND INDIRECT TAXATION LAW AND
PRACTICE
It was observed that some candidates in this paper failed to give
any credible performance in answering issues like Deemed Fringe
Benefits, CENVAT Credit Rules, computation matters under Customs
Act and duty drawback matters. In the direct tax also candidates in
some cases fared poorly in answering questions relating to Wealth
Tax, and other matters. In theoretical questions, most of the candidates
provided answers in a general way.
In Question No.1, some candidates gave poor answers relating to
Section 80JJA, salary income and FBT matters. In Question No.2,
many candidates failed to give correct answers specially to the issues
stipulated in Section 264. Answers to Question No.3 showed lack of
understanding of slump sale as stated in Section 50B and the concept
of demerger. On Wealth-tax aspect also many candidates gave vague
answers. In Question No.4(a), majority of the candidates failed to
give true implication to the Rule 5 of the Central Excise (Appeal) Rules,
2001 and in part (b), lack of understanding of the concepts in Central
Excise Laws, Service Tax and CST was evident. In Question No.5, it
was observed that majority of the candidates were not able to give
satisfactory answers to the case law based problem. In Question
No.6(a) and (b) related to duty drawback, transit of goods and
transhipment of goods where the candidates gave inconsistent
answers. In Question No.7, where many candidates incorrectly
calculated the value of excise duty exposing their inherent weakness
in solving practical problems in indirect taxes. By and large answers
given to Question No.8 was satisfactory.
Candidates are advised to thoroughly and meticulously study the study
material, reference books and relevant Bare Acts. They should give precise
and correct answers instead of vague and lengthy explanations.
9. HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL
RELATIONS
The approach adopted by candidates towards this paper was
casual. Vague answers were written to the questions without reference
to the context. The knowledge of legal provisions and its application
was displayed poorly by the candidates.
In Question No.1, answers were well presented with real life
exposure. However Question No.1 (iv) was not answered correctly.
Though Question No. 2 was attempted correctly by majority, some
faced difficulty in attempting Question No. 2(c) (iii) on morale and
productivity. The impact of globalization was not effectively answered
in Question No. 3(iv).Very few attempted Question No. 4 and the
answers written were reasonably good. The performance in Question
No. 5 and 6 was good. However, most of the candidates did not refer
case law in Question No.5 (a). In Question No. 6, matters to be specified
in standing orders of a company was not covered properly by majority.
In Question No. 7(b), matters to be specified in Third Schedule of the
Industrial Disputes Act, 1947 was not answered correctly by the
candidates. Answers written to Question No. 8 were below expected
level. Criticism against adjudication in Question No. 8 (b) was not
properly attempted by many.
The candidates are advised to avoid casual approach towards the
examination. Only hard work followed by seriousness can help them to
Student Company Secretary
improve their performance. Plan the answers before writing. Quote relevant
case law in support of your answers to secure good marks and improve
communication skills. Read Student Company Secretary Bulletin,
Chartered Secretary and other professional journals to keep yourselves
abreast of the latest legislative developments and judicial decisions.
ATTENTION STUDENTS!
Applicability of Latest Finance Act and other changes
for Company Secretaries June 2008 Examination.
DIRECT TAXES
All students may note that for the June 2008 Examination
session, in respect of Direct Taxes, the applicable Assessment
Year shall be 2008-09 (Previous year 2007-08).
Thus, they will have to study Finance Act, 2007 for June
2008 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 December 1999 session onwards unless otherwise
informed.
INDIRECT TAXES
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 take note of
the following changes applicable for June 2008 Examination:
1. All changes made by the Finance Act, 2007.
2. All Circulars, Clarifications/Notifications issued by CBE&C/
Central Government which became effective six months
prior to the date of examination.
STUDENTS QUIZ
PRIZE QUERY
A company preferred a petition before a High Court for
confirmation of a Scheme of Arrangement under section
391 of the Companies Act, 1956? The High Court
approved the Scheme with some modification which
modification had the effect of changing the nature of the
Scheme. Can the High Court effect such a modification?
CONDITIONS
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 16th May, 2008.
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 superscribed Students Query,
April 2008 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.
26 April 2008
 Legal World
LEGAL WORLD
Compiled by T.K.A. Padmanabhan, FCS, Advocate, New Delhi.
CORPORATE LAWS
LW(S) 18.04.2008
SEVERN TRENT WATER PURIFICATION INC. v. CHLORO
CONTROLS (INDIA) P. LTD. & ANR [(2008) 142 Comp Cas 81 (SC);
JT 2008 (2) 618 SC], C.K.Thakker & Tarun Chatterjee, JJ. [Decided
on 18.02.2008]
Companies Act,1956-Section 433-Winding up-CCD the
shareholder of JV company CCI merged with another company
ST STs name was not entered in the members register of CCI
due to non intimation of merger ST filed winding up petition
against CCI Whether maintainable- Held, No.
Brief Facts: The appellant (ST) a USA corporation was formerly
known as CCD. In or about 1990, STs group acquired CCC whose
name was subsequently changed to ST. On March 31, 2003, CCD
amalgamated with and merged into ST and pursuant to the merger
agreement, CCD went out of existence. CC, a company controlled by
K, and CCD set up a joint venture company, CCI, in Mumbai
(respondent herein). For the said purpose, a joint venture agreement
was executed by the parties on November 16, 1995. CCD held 50
percent of the equity share capital of CCI, the other 50 percent being
held by CC. ST did not intimate the merger of CCD with it and failed to
enter its name as shareholder in the members register of CCI. Owing
to a deadlock in management ST terminated the joint venture
agreement and filed a petition, in the capacity of contributory, under
section 433(f) of the Act seeking winding up of the company CCI,
under the just and equitable ground. The respondent company
contested the petition on the ground that ST was not a contributory as
its name is not recorded in its members register because ST failed to
intimate the merger of CCD with it.
Decision: Petition dismissed.
Reasons: It is clear that the provisions of the Act must be
complied with before presenting a winding up petition under Section
439(4) (b) of the Act. If a person intends to present a petition for
winding up of a company as a contributory, he/it has to satisfy the
Company Court that his/its case is covered by one of the
eventualities contemplated by clause (b) of sub-section (4) of
Section 439 of the Act.
In the instant case, despite merger and amalgamation of Capital
Controls (Delaware) Company Inc. into Severn Trent, no step has been
taken by Severn Trent for rectification of the register and registration
of shares in its name. In our opinion, the Division Bench of the High
Court is right in observing that it cannot be contended by Severn Trent
that in view of dispute between Severn Trent and Kochs, the Company
would not have registered shares in the name of Severn Trent. Had
Severn Trent applied and the prayer rejected, an appropriate action
could have been taken in accordance with law.
The provisions of the Companies Act, 1956, must be complied
with before presenting a winding up petition under section 439(4) (b)
of the Act. If a person intends to present a petition for winding up of a
company as a contributory, he or it has to satisfy the company court
that his or its case is covered by one of the eventualities contemplated
by clause (b) of sub-section(4) of section 439 of the Act.
Sub-section (4) of section 439 is a self contained code as to
presentation of petition by a contributory. A person claiming to be a
contributory and presenting a petition for winding up of a company in
that capacity must fulfill the conditions laid down in the said section.
A winding up petition can be presented by a contributory in the
following three eventualities: (i) shares must have been originally
allotted to him; or (ii) shares must have been held by him and registered
Student Company Secretary
in his name for at least six months during the eighteen months
immediately before the commencement of the winding up proceeding;
or (iii) shares must have devolved on him through the death of a former
shareholder.
The phrase or have devolved on him through the death of former
holder would apply to natural persons who are holding shares in their
individual capacity and not to juristic entities. In the context of company
law, winding up of a body corporate is not the same thing as or
equivalent to death of a member. An individual and a body corporate
expressly have been treated separately which is clear from section
430, 431, and 432 of the Act. Under the scheme of the Act, every
creditor may present a petition for winding up of a company, but every
contributory cannot. A contributory to be eligible and qualified to present
a winding up petition must be covered by sub-section (4) of section
439 of the Act and the Legislature, in its wisdom, excluded certain
categories of persons from being entitled to present a petition for
winding up as contributory. The provision is exhaustive in nature and
its sweep cannot be extended by judicial interpretation.
LW(S) 19.04.2008
SUMITOMO CORPORATION v. CDC FINANCIAL SERVICES
(MAURITIUS) LTD. & ORS [JT 2008 (3) SC 32 ;( 2008) 142 Comp
Cas 114(SC)], Tarun Chatterjee & P. Sathasivam JJ. [Decided on
22.02.2008]
Companies Act,1956 read with the Arbitration and Conciliation
Act,1996 Dispute between joint venture parties CLB rejected
to refer the dispute to arbitration Whether appeal lies to the
High Court where the registered office of the JV company situated
Held, yes.
Brief Facts: In 1984, a joint venture agreement was entered into
between S, the appellant, PTL, (respondent No.5) and SML (respondent
No.6) comprehensively specifying the respective rights and obligations
of the parties including the management control of the affairs of the
company. The joint venture agreement contained an arbitration
agreement between the parties. In 2005, an agreement was entered
into between PTL, S, and SML for purchase by S, the appellant, of
1,573,000 shares of SML from PTL. This agreement also contained an
arbitration agreement. In May-June, 2006, disputes arose between the
parties regarding rights of the parties envisaged in the provisions of the
joint venture agreement and PTL and respondents Nos.1 to 5 filed a
petition before the Principal Bench of the Company Law Board under
sections 397, 398 and 402 of the Companies Act 1956. In the company
petition, the appellant filed an application seeking reference to arbitration
under section 45 and alternatively under section 8 of the Arbitration and
Conciliations Act, 1996, where upon the Company Law Board passed
an order refusing to refer the parties to arbitration under section 45 of
the Act. The appellant filed an appeal in the Delhi High Court which
dismissed the appeal for lack of territorial jurisdiction holding that section
10(1)(a) of the Companies Act took precedence over Section 50 of the
Arbitration Act. Appellant appealed to the Supreme Court.
Decision: Appeal dismissed.
Reasons: To our mind, the reading of Section 50 clearly suggests
that an appeal shall lie from the order of the CLB to the court authorized
by law to hear the appeals from such order of the CLB. To make it
clear that in the event the order under Section 45 is passed by the
CLB, the forum which is provided under law for hearing the appeal
from the order of the CLB will be the Appellate Forum. In other words,
while Section 50 of the Arbitration Act provides for the orders which
can be made the subject-matter of the appeal, the forum to hear the
appeal is to be tested with reference to the appropriate law governing
the authority or forum which passed the original order, that is , in the
case on hand, the CLB. Section 10F read with Section 10(1) (a) of the
Companies Act provides for such forum to hear the appeal from the
orders of the CLB as the High Court within the jurisdiction of which the
Registered Office of the company in issue is situated.
Now let us look into Section 10(1) (a) and Section 10F of the
27 April 2008
 Legal World
Companies Act. An appeal against any order of the CLB including an
order passed refusing reference to arbitration shall lie to the High Court
within the jurisdiction of which the Registered Office of the company is
situated. That is the reason Section 50 of the Arbitration Act purposively
uses the expression authorized by law to hear the appeal. As rightly
pointed out, it cannot be that an order passed by the CLB becomes
appealable to a civil court or a court exercising civil jurisdiction when
Parliament has chosen to provide for a specific appellate forum which
should hear the appeal from the orders of the CLB.
LW(S) 20.04.2008
S.K.ALAGH v. STATE OF U.P. & ORS [(2008) 142 Comp Cas
228 (SC)], S.B.Sinha & V.S.Sirpurkar JJ [Decided on 15.02.2008]
Indian Penal Code, 1860 Sections 405 and 406 Criminal
breach of trust Offence by company Whether managing
director vicariously liable for the offence Held, No.
Brief Facts: The appellant herein was the managing director of
the company B. One wholesale dealer A, whose dealership was
terminated by B, sent two demand drafts for the supply of goods despite
the fact that the dealership had been terminated earlier. When B
asked A to take back the demand drafts, A refused to take them back
and instead made a demand on the company to deliver goods stating
that the company owned him a sum of Rs.1,00,000. The company
stated that his dealership had been terminated. The proprietor of the
firm A filed a complaint against the appellant, the managing director of
the company, of an offence under Section 406 of the Indian Penal
Code but B was not impleaded as an accused therein. After the filing
of the complaint petition, A took back the said demand drafts. The
appellant filed an application for recalling the summoning order upon
which the Chief Judicial Magistrate discharged the accused holding
that there was no appropriate basis to initiate any action against the
accused. A revision petition filed there against by the complainant was
allowed and a petition filed by the appellant before the High Court was
dismissed by the High Court. Appellant appealed to the Supreme Court:
Decision: Appeal allowed.
Reasons: The Indian Penal Code, 1860, save and except some
provisions specifically providing therefore, does not contemplate any
vicarious liability on the part of a party who is not charged directly for
commission of an offence. In a case falling under Section 406 of the
Indian Penal Code vicarious liability is not extendable to the directors
or officers of the company.
Admittedly, the drafts were drawn in the name of the company,
even if the appellant was its managing director, he could not be said to
have committed an offence under Section 406 of the Indian Penal
Code. If and when a statute contemplates creation of such a legal
fiction, it provides specifically therefore. In the absence of any provision
laid down under the statute, a director of a company or an employee
cannot be held to be vicariously liable for any offence committed by
the company itself.
TAX LAWS
LW(S) 21.04.2008
COMMISSIONER OF INCOME TAX v. AUTOMETERS LTD [(2008)
167 TAXMAN 286 (DEL)], Madan B Lokur & V.B.Gupta, JJ. [Decided
on 02.03.2007]
Income tax Act,1961 Section 36(1)(vii) Assessee wrote off
bad debts AO disallowed on the ground that no proof as to the
efforts taken by assessee was produced Whether AO was correct
Held, No.
Student Company Secretary
Brief Facts: In the financial year relevant to the assessment year
1994-95, the assessee wrote off some amount that was due to it as
irrecoverable in its books of account and claimed deduction thereof
under section 36(1)(vii). The Assessing Officer was of the view that
the assessee could not produce any documentary evidence to show
that any efforts were made by it to recover the amount and, therefore,
the debts had become bad and disallowed the deduction. On appeal,
the Commissioner (Appeals) allowed the claim and on further appeal
by the Revenue, the Tribunal confirmed the order of the commissioner
(Appeals). The Revenue appealed to the High Court.
Decision: Appeal dismissed.
Reasons: There is significant difference between the provision of
section 36(1) (vii) as it stood prior to 1-4-1989, and the provision as
stands till date. Prior to 1-4-1989, it was necessary for the assessee
to establish that the debt had become bad, whereas after 1-4-1989 for
the debt to be classified as bad, the assessee has only to write it off as
irrecoverable in its accounts.
While making the amendment in section36(1)(vii), the Central Broad
of Direct Taxes issued a circular bearing No.551, dated 23-1-1990,
wherein it was stated that the earlier provision generated a considerable
amount of litigation on the issue whether the assessee had been able
to establish that the debt had become bad. It was to overcome this
that the amendment was made resulting in a bad debt now being
straightaway allowed in the year of write off.
There was no error in the view taken by the Tribunal. The
amendment made to Section 36(1) (vii) was a conscious decision taken
to eliminate litigation with regard to establishing what is bad debt. If an
assessee writes off a debt as a bad debt without giving any reason, he
will not get any benefit. This is for the reason that by virtue of Section
41(1), where a deduction has been allowed in respect of a bad debt
which is irrecoverable but the amount or a part thereof is subsequently
recovered, that amount shall be deemed to be profits and gains of
business or profession of that relevant previous year.
Thus, in view of above discussion, no substantial question of law
arose of consideration and, hence the appeal is dismissed.
LW(S) 22.04.2008
DEPUTY COMMISSIONER OF INCOME TAX v. M/S.CORE
HEALTH CARE LTD. [JT 2008(2) SC 367], S.H.Kapadia &
B.Sudershan Reddy, JJ. [Decided on 8.02.2008]
Income tax Act, 1961 Section 36 Interest on borrowed capital
Production not yet started Whether allowable Held, Yes.
Brief Facts: The respondent company purchased machinery and
claimed deduction thereof in its return of income. The cost of the
machinery included interest on borrowings. The AO disallowed the
interest on capital claimed on the ground that the production had not
started. The first appellate authority upheld the addition and the Tribunal
reversed the decision. The High court confirmed the decision of the
Tribunal against which the Revenue appealed to the Supreme Court.
Decision: Appeal dismissed.
Reasons: Interest on moneys borrowed for the purposes of
business is a necessary item of expenditure in a business. For
allowance of a claim for deduction of interest under the said section,
all that is necessary is that firstly, the money, i.e. capital, must have
been borrowed by the assessee; secondly, it must have been borrowed
for the purpose of business; and, thirdly, the assessee must have paid
interest on the borrowed amount. The expression for the purpose of
business is satisfied in respect of the capital borrowed, the assessee
would be entitled to deduction under Section 36(1) (iii) of the 1961
Act. An assessee is entitled to claim interest paid on borrowed capital
provided that capital is used for business purpose irrespective of what
28 April 2008
 Legal World
may be the result of using the capital which the assessee has borrowed.
Section 36(1) (iii) is attracted when the assessee borrows the capital
for the purpose of his business. It does not matter whether the capital
is borrowed in order to acquire a revenue asset because of that the
section requires is that the assessee must borrow the capital for the
purpose of his business. This dichotomy between the borrowing of a
loan and actual application thereof in the purchase of a capital asset
seems to proceed on the basis that a mere transaction of borrowing
does not, by itself bring any new asset of enduring nature into existence,
and that it is the transaction of investment of the borrowed capital in
the purchase of a new asset which brings that asset into existence.
GENERAL LAWS
LW(S) 23.04.2008
THIRUVENGADA PILLAI v. NAVANEETHAMMAL & ANR. [JT
2008 (2) SC 585], R.V.Raveendran & P.Sathasivam, JJ.[Decided
on 19.02.2008]
Indian Stamp Act, 1899 Section 54 Use of stamp paper
Whether it should be used within 6 months of purchase Held, No.
Issue: Whether a stamp paper purchased is required to be used
within 6 months of the date of purchase?
Decision: NO. It can be used at any time.
Reasons: The Indian Stamp Act, 1899 nowhere prescribes any
expiry date for use of a stamp paper. Section 54 merely provides that
a person possessing a stamp paper for which he has no immediate
use (which is not spoiled or rendered unfit or useless) can seek refund
of the value thereof by surrendering such stamp paper to the Collector
provided it was purchased within the period of six months next
preceding the date on which it was so surrendered. The stipulation of
the period of six months prescribed in Section 54 is only for the purpose
of seeking refund of the value of the unused stamp paper, and not for
use of the stamp paper. Section 54 does not require the person who
has purchased a stamp paper, to use it within six months. Therefore,
there is no impediment for a stamp paper purchased more than six
months prior to the proposed date of execution, being used for a
document.
The Indian Stamp Rules, 1925 applicable to Tamil Nadu, do not
contain any provision that the stamp papers of required value should
be purchased together from the seamed vendor with consecutive serial
numbers. The Rules merely provide that where two or more sheets of
paper on which stamps are engraved or embossed are used to make
up the amount of duty chargeable in respect of any instrument, a portion
of such instrument shall be written on each sheet so used. In the
absence of any Rule requiring consecutively numbered stamp papers
purchased on the same day, being used for an instrument which is not
intended to be registered, a document cannot be termed as invalid
merely because it is written on two stamp papers purchased by the
same person on different dates.

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 & Export and 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 Duration of the Venue of Programme Contact Address

Programme
Bangalore 15.09.2008 Office Executive Officer & Programme Co-ordinator, Bangalore Chapter of ICSI,
Chapter of to Premises Sheriff Chambers, 3rd Floor, Rear Block 14, Cunningham Road,
SIRC of the 01.10.2008 Bangalore-560052 Tel. 080-22286574/22287158, Fax: 22261861, E.Mail:
ICSI bangalore@icsi.edu
ICSI-CCRT 20.09.2008 Director - Programmes, ICSI-CCRT, Plot No. 101, Sector-15, Institutional Area,
to Office Premises CBD Belapur, Navi Mumbai-400614 Tel. : 022- 27577814-16 Fax No. :
06.10.2008 022-27574384 E-mail : ccrt@vsnl.com
(Residential
SMTP)
SIRC of 30.06.2008 Deputy Director, SIRO of the ICSI, ICSI-SIRC Building, New No. 9,
the ICSI to Office Premises Wheat Crofts Road, Nungambakkam, Chennai-600034 Tel. : 044-
16.07.2008 28279898/28222212 E-mail : siro@icsi.edu/ icsisiro@md3.vsnl.net.in.
NIRC of 21.05.2008 The Executive Officer, NIRC of the ICSI, ICSI-NIRC Building, Plot No. 4,
the ICSI to Office Premises Prasad Nagar, Institutional Area, New Delhi-110005 Tel. : 25763090/
07.06.2008 25767190, 25816593 Fax : 25722662 (STD CODE : 011)
E-mail : niro@icsi.edu/icsi@eth.net
Chandigarh 04.05.2008 Coordinator, Chandigarh Chapter of NIRC of the ICSI, GGDSD College, Sector
Chapter of NIRC to Office Premises 32-C, Chandigarh-160047 Tel. : 2661840 (STD Code : 0172),
of the ICSI 18.05.2008 E-mail :chandigarh@icsi.edu.

The schedule of other SMTPs proposed to be conducted by NIRC, SIRC and ICSI-CCRT during 2008 is as under:
NIRC : (i) 10.06.2008 to 27.06.2008 (ii) 04.08.2008 to 22.08.2008 (iii) 01.09.2008 to 18.09.2008 (iv) 19.09.2008 to 07.10.2008 (v) 03.11.2008
to 21.11.2008 (vi) 01.12.2008 to 19.12.2008. SIRC : (i) 15.09.2008 to 01.10.2008. ICSI-CCRT : (i) 17.05.2008 to 06.07.2008 (Special Residential
SMTP-15 week-ends).

Student Company Secretary 29 April 2008

 Student Services
STUDENT SERVICES
REGISTRATION AND POSTAL TUITION
1. Cancellation of Registration
Registration of students registered upto and including May, 2003
stands terminated on expiry of five-year period on 30Th April, 2008
leading to the following immediate consequences :
(a) Supply of Student Company Secretary bulletin will be dis-
continued from MAY, 2008 onwards.
(b) Response sheets will not be accepted even if submitted and
coaching completion certificates will not be issued (after the
expiry of registration period)
l 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, 2008 are,
however, eligible to appear in June, 2008 examination without seeking
extension of registration/ registration de-novo subject to fulfilling other
requirements laid down in the registrations.)
2. Change of Address
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.
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.
3. E-Mail Address of the Students
Those students who are having e-mail address may communicate
the same to the Student Services Section at dss@icsi.edu which will
facilitate quick and economic communication from the Institutes side.
The e-mail address may be sent in the following format.
Name : dent along with the attested photocopies of marks sheets
Registration No. : for all parts of the Degree/examination (on the basis of which
E-Mail Address :
4. Students Identity Card
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 Institutes 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.
5. Compulsory Enrolment for Final Course.
Students who have passed/completed both groups of Intermediate
Student Company Secretary
examination are advised to seek compulsory enrolment for undergoing
coaching for the Final course on payment of Rs. 7500/- 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 Iintermediate examination and subject to completion
of coaching and fulfillment of other requirements.
6. Issue of admission Certificates June, 2008
Examination
The admission certificates for June,2008 examination to all the
eligible students will be dispatched by ordinary post latest by
10.05.2008. Simultaneously, the Admit Card Extracts would also be
uploaded on the website of the Institute viz. www.icsi.edu.
All the students are hereby advised to carefully check up the
particulars viz. Name, Centre, medium, Group, Exemptions granted
etc. shown in the Admit Card Extracts which are available on the website
of the Institute, If they come across any discrepancy, it should at once
be brought to the notice of Mr. T.P. Balasubramanian Administrative
Officer for verification / rectification.
While the requests for duplicate Admission Certificates are promptly
being attended to by the Headquarters, students may, as per their
convenience, also download Admit Card Extract from the website of
the Institute which alongwith the Student Identity Card issued by the
Institute would be equally valid for appearing in the C S Examinations.
Alternatively, the students may approach Regional/ Chapter/Satellite
Chapter Offices for issue of duplicate Admission Certificates from
28th May, 2008 onwards.
7. Uniformity in Signatures
It has been observed that some of the enrollment applications/
letters received from the students are either unsigned or bear different
signatures from time to time.
All the students are, therefore, advised to maintain uniformity in
their signatures on all the correspondence with the Institute including
students identity card, enrollment application and attendance sheet
provided in the examination hall at the time of writing examinations.
8. Clarification Regarding Paperwise Exemption
a. The paperwise exemption is granted only on the basis of
specific request received in writing from a registered stu-
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 ses-
sion of examination during the validity of registration period.
(b) The application for claiming paperwise exemption must reach
the Institute on or before the last date for submission of en-
rolment 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.
(c) The paperwise exemption once granted holds good during
the validity of registration period or passing/completing the
examination, whichever is earlier.
d) 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 applica-
tion. 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,
30 April 2008
 Student Services
request, etc., at the Examination Centre at the last moment,
his/her appearance in such paper(s) shall automatically be
treated as cancelled.
(e) 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.
(i) 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 Institutes examination.
(j) Paperwise exemption fee is payable only when the exemption
is to be availed on the basis of qualification(s) specified for
the purpose.
9. Exemption from Computer Training
A student can be exempted from undergoing the course on the
basis of his existing qualification/degree in the computer field and
qualifies the need of Course Contents Syllabus as scheduled by
NIIT for C.S. Students, subject to the condition that he or she enrolls
himself/herself for an online exemption test (to be conducted by NIIT)
from any of the NIIT Center on all India basis and successfully clears
the test

(f) Exemption once cancelled on request in writing shall not be
granted again under any circumstances.
(g) 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.
(h) 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.
10. Important
While making any correspondence regarding examination, the
students are advised to quote the following particulars for taking prompt
action :
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
Balwant Kulkarni, Director at the Institutes address.

SCHEDULE OF TRAINING ORIENTATION PROGRAMMES (TOP)

Organised by Duration of the Venue of the Programme Contact Address
the Programme

Bangalore 08.09.2008 Office Executive Officer & Programme Co-ordinator, Bangalore Chapter of ICSI,
Chapter of to Premises Sheriff Chambers, 3rd Floor, Rear Block 14, Cunningham Road,
SIRC of the 12.09.2008 Bangalore-560052 Tel. 080-22286574/22287158, Fax: 22261861, E.Mail:
ICSI bangalore@icsi.edu
NIRC of 12.05.2008 The Executive Officer, NIRC of the ICSI, ICSI-NIRC Building, Plot No. 4,
the ICSI to Office Premises Prasad Nagar, Institutional Area, New Delhi-110005 Tel. : 25763090/
16.05.2008 25767190, 25816593 Fax : 25722662 (STD CODE : 011)
E-mail : niro@icsi.edu/icsi@eth.net
SIRC of 16.06.2008 Deputy Director, SIRO of the ICSI, ICSI-SIRC Building, New No. 9,
the ICSI to Office Premises Wheat Crofts Road, Nungambakkam, Chennai-600034 Tel. : 044- 28279898/
20.06.2008 28222212 E-mail : siro@icsi.edu/ icsisiro@md3.vsnl.net.in.
NIRC of 19.05.2008 The Executive Officer, NIRC of the ICSI, ICSI-NIRC Building, Plot No. 4,
the ICSI to Office Premises Prasad Nagar, Institutional Area, New Delhi-110005 Tel. : 25763090/
30.06.2008 25767190, 25816593 Fax : 25722662 (STD CODE : 011)
E-mail : niro@icsi.edu/icsi@eth.net

Agra Chapter 07.05.2008 To be Programme Incharge, Agra Chapter of NIRC of the ICSI B-623, Kamla Nagar
of NIRC of the to announced Agra. Tel. : (0562) 2881618, 9897602111, 9319114911
ICSI 11.05.2008
The schedule of other TOPs proposed to be organised by NIRC and SIRC is as under : NIRC : (i) 01.07.2008 to 05.07.2008 (ii) 15.07.2008 to
19.07.2008 (iii) 26.08.2008 to 30.08.2008 (iv) 13.10.2008 to 17.10.2008 (v) 20.10.2008 to 24.10.2008 (vi) 25.11.2008 to 29.11.2008
SIRC: (i) 13.10.2008 to 17.10.2008.

Student Company Secretary 31 April 2008

 Student Services
EXAMINATION
1. JUNE, 2008 EXAMINATION
The next examination for the Foundation Course, Intermediate and
Final, scheduled in June, 2008, will be held from Monday, the
02nd June, 2008 to Tuesday, the 10th June, 2008 at the 66 examination
centers, viz., 1. Agra, 2. Ahmedabad, 3. Allahabad, 4. Ambala,
5. Aurangabad*, 6. Bangalore, 7. Bareilly*, 8. Bhilwara, 9. Bhopal,
10. Bhubaneswar, 11. Chandigarh, 12. Chennai (West), 13. Chennai
(South), 14. Coimbatore, 15. Dehradun, 16. Delhi (East), 17. Delhi
(North), 18. Delhi (South), 19. Delhi (West), 20. Ernakulam,
21. Faridabad, 22. Ghaziabad, 23. Gurgaon 24. Guwahati,
25. Hyderabad, 26. Indore, 27. Jaipur, 28. Jammu, 29. Jamshedpur,
30. Jodhpur, 31. Kanpur, 32. Kolhapur*, 33. Kolkata (North), 34. Kolkata
(South), 35. Lucknow, 36. Ludhiana, 37. Madurai, 38. Mangalore,
39. Meerut, 40. Mumbai (CG), 41. Mumbai (GTK), 42. Mumbai (JOG),
43. Mysore, 44. Nagpur, 45. Nasik, 46. Noida, 47. Panaji, 48. Patna,
49. Pondicherry, 50. Pune, 51. Raipur, 52. Rajkot, 53 Ranchi,
54. Shimla, 55. Srinagar*, 56. Surat, 57. Thane, 58.Thirvananthapuram,
59. Tiruchirapalli, 60. Udaipur, 61. Vadodara, 62. Varanasi,
63. Vijayawada, 64. Visakhapatnam, 65. Yamuna Nagar (Haryana)
and one Overseas Centre Dubai as per the Time-Table and
Programme published on the last cover page of this issue.
NOTE:
1. *Examination Centres opened purely on experimental basis.
2. The Institute reserves the right to withdraw any centre at
any stage without assigning any reason.
The addresses of examination centres will be published in the
forthcoming issue of this bulletin for general information
2. USE OF CALCULATORS IN EXAMINATIONS
Candidates are allowed to use their own battery operated noiseless
and cordless pocket calculators with not more than 6 functions, 12
digits and 2 memories. Exchange or lending/borrowing of calculators
among students will not be allowed in the examination hall.
3. HINDI AS AN OPTIONAL MEDIUM FOR WRITING THE
FOUNDATION, INTERMEDIATE AND FINAL
EXAMINATIONS
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 Examination Form each time while applying for appearing
in the examination;
(ii) option of medium for writing examination once exercised in
the Examination Form 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 Form for writing Foundation examination
and Group-I of Intermediate examination will be provided
Question Papers printed both in English and Hindi version
(except for English & Business Communication paper,
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 in English only;
Student Company Secretary
(v) if a candidate writes his/her answers in Hindi Medium without
exercising such an option in the Examination 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, 1B, as the case may be; and
(vii) candidates opting Hindi Medium for the examination may
write answers to practical questions, headings, quotations,
technical and legal terms, sections, rules, etc., in English
Medium, if they so desire.
4. IMPORTANT INSTRUCTIONS TO EXAMINEES
Candidates enrolled for appearing in the June, 2008 examinations
are advised to carefully read and observe the Instructions to
Examinees printed on the Admission Certificate (Roll Number) and
enclosures thereto, and also on the Question Papers and Answer
Books. However, attention of candidates is especially invited to the
following instructions:
(i) on receipt of Admission Certificate (Roll No.), first of all, the
candidates must verify carefully the entries appearing therein.
Discrepancy/error, if any, in the Admission Certificate
concerning spellings of his/her name, stage of examination
and examination centre; medium of writing the answers,
subject of examination in which exemption was sought/
shown, etc., should, at once, be brought to the notice of Shri
Sohan Lal, Jt. Director (Student Services) well on time before
commencement of the examination;
(ii) candidates are required to bring daily to the Examination
Hall their Admission Certificates and Student Identity Cards
failing which they may not be allowed admission to the
Examination Hall and/or to appear in the examination;
(iii) before attempting to write answers in the answer book,
each candidate must write his/her Roll Number on the
special slip affixed to Answer Book Nos. 1, 1-B and 1-C,
date of examination, stage of examination, name of the
paper, etc. against the relevant columns on the first page
of the main answer book and also on the top of Question
Paper;
(iv) candidates must attempt questions in accordance with
the directions given on each Question Paper. If the
questions are attempted in excess of the prescribed
number, only the questions attempted first upto the
required numbers will be valued and awarded marks and
the remaining questions will be ignored;
(v) Questions relating to graph/prcis should be attempted only
on graph/prcis sheets appended as last page to the Answer
Book wherever required. Do not write your roll number on
the Graph/Prcis Sheets and additional Answer Book No. 2.
The additional answer book(s) used, if any, should be
fastened along with the main answer book. Candidates who
fail to observe this instruction will be penalised;
(vi) each question should start on a fresh page and sub-
question(s) be attempted consecutively;
(vii) while attempting a fresh question/sub-question, candidates
should distinctly mention respective question number against
the answer in bold capital letters with coloured sketch pen/
different colour ink and underline the same [(e.g. ANS. TO
Q. NO. 3(A)] on the left-hand side margin of the answer book
and also simultaneously mark (X) in the table provided on
the cover page against the respective question number;
(viii) candidates must not, for any reason whatsoever, tear out
any page(s) from the Answer Book or leave any blank page
or unused spaces in between the pages. If such spaces are
left score them out. If a candidate uses more than one answer
book, he/she should, indicate on the cover page of main
32 April 2008
 Student Services
answer book, the total number of answer books used by
him/her;
(ix) candidates are expected to write precise and to the point
answers to questions set in for the examinations in neat
and legible handwriting citing relevant provisions of the
Act/rules quoting case laws, etc., in support of the
answers wherever applicable;
(x) no candidate shall leave/be allowed to leave the
Examination Hall; (i) within first one hour of
commencement of examination (ii) during last 15 minutes
of examination timing; (iii) without signing the
attendance sheet; and (iv) without properly handing over
his/her answer books to the Invigilator on duty;
(xi) a few minutes prior to the time of conclusion of
examination or before handing over the answer books
to the supervisory staff, candidates must re-check and
ensure that they have filled up relevant particulars on
the cover page of Answer Book Nos. 1, 1-B and 1-C, as
the case may be, and properly tied up all the additional
answer book(s) No.2 along with the main answer book;
(xii) candidates are strictly forbidden to carry with them into
the Examination Hall any book or printed/handwritten
material, notes, mobile phone, etc., OR to talk or
converse inter se with other candidates in the
Examination Hall;
(xiii) candidates are strictly warned against any attempt to copy
from the answer papers of any other candidate nor allow
their answers to be copied nor give nor attempt to give nor
obtain nor attempt to obtain irregular assistance of any
description. It will be the responsibility of each and every
candidate to ensure that his/her answers are not copied by
another candidates. Failure to do so will invite stern
disciplinary action and penalty for adoption of unfair means;
(xiv) no candidate shall leave his/her seat in the examination
hall during the course of examination without the specific
permission of the Invigilator on duty for any reason
whatsoever;
(xv) on completion of examination or expiry of the prescribed
examination timing, the answer book(s) must be handed
over immediately to the Invigilator on duty and
Invigilators signature be obtained in the relevant column
of acknowledgement printed on the Admission
Certificate in token of handing over the answer books.
(xvi) it shall be the personal responsibility of the candidate
concerned to properly hand over his/her answer book(s)
to the Invigilator on duty in the Examination Hall and
obtain acknowledgement therefor. Any representation
regarding omission to handover the written answer
book(s) or not obtaining the acknowledgement from the
Invigilator at the time of handing over his/her answer
book(s) for any reason whatsoever will not be entertained
after the conclusion of that particular session of
examination;
(xvii) candidates are warned that any attempt to misbehave in
any manner or create disorderly scene in and around the
examination hall or harass or bodily harm the staff deployed
for the conduct of examination will be viewed seriously and
severely punished; and
(xviii) any attempt or act of violation of Instructions to Examinees
shall be viewed seriously and entail disciplinary action under
the Company Secretaries Regulations, 1982.
Student Company Secretary
NOTIFICATION
ICSI NO. 1 OF MARCH, 2008
MERIT-CUM-MEANS ASSISTANCE SCHEME, 1983
In pursuance of para 13 of the Merit-cum-Means Assistance
(Company Secretaryship Course) Scheme, 1983, as amended
upto 14th and 15th October, 2006, applications are invited to reach
the Institute in the prescribed form on or before 25th May, 2008
for award of 15 numbers of financial assistance each for pursuing
Intermediate and Final course of the company secretaryship from
students who fulfil the eligibility criteria laid down under the said
scheme.
According to the scheme, a candidate applying for assistance
should have passed Foundation or Both Groups of the Intermediate
examination without exemption in any paper, at one sitting, in the
first attempt in December, 2007 examination. The income of such
a candidate, if employed or is having an independent source of
income, should not be more than Rs.1,50,000/- per annum and if
he/she is dependent on his/her parents/guardian/spouse whether
partially or wholly, the combined income from all sources should
not be more than Rs.2,50,000/- per annum.
Prescribed application form together with a copy of the Merit-
cum-Means Assistance (Company Secretaryship Course) Scheme,
1983 can be downloaded from the Institutes website www.icsi.edu
or obtained by post from the Institute free of cost by sending a
self-addressed envelope of 23 cms. x 11 cms. size duly affixed
with postage stamp worth Rs.10/-. Applications not made on the
prescribed forms and/or without supporting documents, incomplete
applications, applications not fulfilling the eligibility criteria laid down
under the scheme or applications not reaching the Institute on or
before 25th May, 2008 are liable to be rejected.
BY ORDER OF THE COUNCIL
File No.207:Exams:2008
New Delhi 110 003. (N. K. JAIN)
Dated, the 3rd March, 2008 Secretary & CEO
PROHIBITION ON CARRYING MOBILE
PHONES TO EXAMINATION VENUE
Candidates intending to appear in the
Company Secretaries examinations may note
that carrying of Mobile phones, or any other
communication devices are strictly prohibited into
the premises where Company Secretaries
examinations are conducted. Candidates are,
therefore, advised not to bring any such
prohibited items to the examination venue, as the
Institute and/or the Examination Centre Staff shall
not be responsible for safekeeping of any such
item(s). Infringement of these instructions shall
tentamount to adoption of unfair means and entail
disciplinary action.
33 April 2008
 Student Services
LIST OF FIRST 25 TOP RANK HOLDERS, IN ORDER OF 40 18 2950 NU0297498/09/2006 KUNAL MEHTA
MERIT, WHO HAVE SECURED NOT LESS THEN 55% MARKS
IN THE AGGREGATE IN FOUNDATION EXAMINATION, 41 18 5364 NU0319451/03/2007 AKSHAY AGARWAL
DECEMBER, 2007 42 18 6263 SU0108200/03/2007 SHERILL PAL
Sl. Rank Roll Registration Name of the Student 43 19 270 EU0090764/03/2005 RAVI KAPOOR
No No. No.
44 19 2430 NU0298479/09/2006 SHIKHER GUPTA
1 1 5614 WU0191796/03/2007 ANKITA CHHAZED
45 19 3637 NU0308276/03/2007 DEEPIKA KHURANA
2 2 5275 SU0102711/09/2006 ABHISHEK A
46 19 4409 SU0107108/01/2007 VIVEK ADITYA V
3 3 522 EU0116969/03/2007 ABHISHEK SETHIA
47 20 334 EU0107559/06/2006 PIYUSH GUPTA
4 4 493 EU0114970/03/2007 ROHIT RUNGTA
48 20 2780 NU0319143/03/2007 ARPIT SOMANI
5 4 644 EU0119306/03/2007 SHRUTI CHHALANI
49 21 477 EU0114582/03/2007 HARSH BARDIA
6 5 2314 NU0320602/03/2007 REEMA ARYA
50 21 647 EU0119381/03/2007 VIJAY SHARMA
7 6 525 EU0117036/03/2007 PRAGYA NAHATA
51 21 694 EU0120487/03/2007 VIKASH AGARWAL
8 6 4389 SU0097029/06/2006 SHANKARNARAYA-
52 21 1200 EU0114540/02/2007 HARSH KUMAR
NAN K
DHANUKA
9 7 638 EU0119226/03/2007 ANKITA DHARIWAL
53 21 1239 EU0118856/03/2007 NITIKA SINGH
10 7 1199 EU0114535/02/2007 PRIYANKAR GHOSH
54 21 1257 EU0119715/03/2007 SIDDHI JHUNJHUN-
11 8 473 EU0114396/02/2007 HARSH JOSHI WALA
12 8 592 EU0118506/03/2007 NETI DUDHWEWALA 55 21 2003 NU0304592/02/2007 TARUN AGGARWAL
13 9 3707 NU0315311/03/2007 SWATI MURKYA 56 21 2961 NU0306373/03/2007 MAMTA JAIN
14 9 4519 SU0109303/03/2007 NIRANJAN J 57 21 5987 WU0190242/03/2007 VINNI AMIT JHAYERI
15 10 514 EU0116767/03/2007 ANKIT KANODIA 58 22 1226 EU0117572/03/2007 SHRIKANT SHAH
16 11 639 EU0119231/03/2007 RITIKA JAIN 59 22 1260 EU0119858/03/2007 PALLAVI PODDAR
17 11 2754 NU0314821/03/2007 ANKIT GARG 60 22 1374 NU0318545/02/2007 PRITIKA AGARWAL
18 11 6353 WU0186618/11/2006 NAMRATA ASHOK 61 22 4393 SU0098137/07/2006 DHIRAV RAMESH
MANKAR SHAH
19 12 442 EU0112860/09/2006 SHREYA 62 23 454 EU0113549/11/2006 RITESH PUGALIA
BHATTACHARYA
63 23 517 EU0116831/03/2007 NEHA DOKANIA
20 12 540 EU0117302/03/2007 PRIYANKA MOHTA
64 23 1198 EU0114460/02/2007 HONEY SETHI
21 12 2074 NU0316254/03/2007 DANISH AHMED
65 23 2677 EU0120567/03/2007 SANCHIT GOYAL
22 13 475 EU0114434/02/2007 MANPREET ARORA
66 23 6370 WU0188218/03/2007 ANKUR AGRAWAL
23 14 5609 WU0191728/03/2007 SAURABH BADJATIA
67 24 1176 EU0111322/09/2006 ANKIT SIPANI
24 14 6375 WU0188324/02/2007 PURNIMA K
68 24 1251 EU0119332/03/2007 PRIYANKA AGARWAL
25 15 2755 NU0314835/03/2007 ANKUR GARG
69 24 2750 NU0314760/03/2007 PRIYANKA JAIN
26 15 6629 WU0156061/07/2005 ABHISHEK MAHESH
70 24 3148 NU0301348/09/2006 MOHITA SRIVASTAVA
MITTAL
71 24 4441 SU0112589/03/2007 AISHWARYA S
27 16 362 EU0108688/07/2006 RACHNA GUPTA
72 24 5594 WU0187881/03/2007 SWEENA KHANUJA
28 16 381 EU0109674/08/2006 RIDDHI KHEMKA
73 24 6402 WU0192862/03/2007 KANCHAN ANIL
29 16 439 EU0112733/09/2006 DHANVIR JAIN
GOGATE
30 16 516 EU0116793/03/2007 VINEET GUPTA
74 25 1173 EU0110825/09/2006 PRIYANKA AGARWAL
31 16 670 EU0120078/03/2007 ASHISH SHARMA
LIST OF FIRST 25 TOP RANK HOLDERS, IN ORDER OF
32 16 5989 WU0190359/03/2007 VIKRANT MORESH-
MERIT, WHO HAVE SECURED NOT LESS THEN 55% MARKS
WAR HARDAS
IN THE AGGREGATE IN INTERMEDIATE EXAMINATION,
33 16 6367 WU0188171/03/2007 AMRUTA ANIL BILGI DECEMBER, 2007
34 17 460 EU0113815/12/2006 SOURAV MODI Sl. Rank Roll Registration No. Name of the Student
35 17 662 EU0119922/03/2007 VINEET KESAN No No
36 17 3709 NU0315353/03/2007 DIMPLE PATWARI 1 1 8806 ER0249355/02/2007 TANUJ AGARWAL
37 18 479 EU0114601/03/2007 ADITYA PODDAR 2 2 8485 NR0502608/08/2006 GAGAN JAIN
38 18 669 EU0120062/03/2007 MONICA TIBREWAL 3 3 16396 NR0517582/02/2007 APEKSHA NANDAWAT

39 18 1231 EU0117694/03/2007 ROHIT KOCHAR 4 3 27414 WR0473238/02/2007 NEETHU JAMES

Student Company Secretary 34 April 2008

 Student Services
5 4 8141 ER0241531/08/2006 RITTIKA CHOWDHARY
LIST OF FIRST 25 TOP RANK HOLDERS, IN ORDER OF
MERIT, WHO HAVE SECURED NOT LESS THEN 55%
6 5 8306 ER0250489/02/2007 ISHAN SONTHALIA MARKS IN THE AGGREGATE IN FINAL EXAMINATION,
DECEMBER, 2007
7 6 8186 ER0243636/08/2006 RAHUL RUNGTA
8 6 8445 ER0252482/02/2007 ABHISHEK KAILASH Sl. Rank Roll Registration Name of the Student
RATHI No. No. No.

9 7 28094 WR0467737/02/2007 MAYANK RAJENDRA 1 1 56441 WR0399836/06/2005 POONAM PREM-

CHAND CHOPRA
SARDA
2 2 30853 ER0229781/02/2006 DIPAK DAGA
10 8 8378 ER0251461/02/2007 MANISH KUMAR SONI
3 2 55247 WR0380985/08/2004 ANAND NAND-
11 8 10189 NR0526031/02/2007 NEETI GOYAL KISHOR MANDHANE
12 9 8036 ER0224547/08/2005 SUMAN BHURA 4 3 30923 ER0231363/02/2006 AKKAL DUDHWE-
13 9 9924 ER0251701/02/2007 DEEPAK AGARWAL WALA
14 10 8417 ER0252031/02/2007 GOLDY AGARWAL 5 4 37714 NR0407591/02/2004 AMIT JAIN
15 11 8140 ER0241526/08/2006 KUSHAL AGARWAL 6 5 30891 ER0230643/02/2006 SWETA BAJAJ

16 11 8167 ER0242921/08/2006 MOHIT AGARWAL 7 6 30919 ER0231316/02/2006 ANKIT MATHRAN

17 12 8418 ER0252047/02/2007 ANKIT KUMAR JAIN 8 7 30947 ER0232243/02/2006 GOVINDA TAPARIA

9 8 30898 ER0230824/02/2006 VIRENDRA SHARMA
18 13 8324 ER0250729/02/2007 AAYUSH BAGRI
10 9 33048 ER0213053/02/2005 ADITYA JAIN
19 13 10190 NR0526052/02/2007 SANJEEV KUMAR
MANGAL 11 10 45003 CR0331248/03/2007 NISHA TULSYAN

20 14 8161 ER0242761/08/2006 SANJAY KHEMKA 12 11 35803 NR0455502/08/2005 SHUCHI BANSAL

13 11 41374 NR0464705/08/2005 NEHA HIRAN
21 14 28934 WR0455201/08/2006 BALAJI SUNDARA-
RAMAN 14 12 30841 ER0227006/11/2005 ASHISH AGARWAL

22 15 14070 NR0524186/02/2007 RAGHAV KUMAR BAJAJ 15 12 30858 ER0229941/02/2006 MANISHA RAKHECHA

23 16 8333 ER0250814/02/2007 RUHI AGARWAL 16 13 30899 ER0230845/02/2006 PRERNA AGARWAL

17 13 31423 ER0219463/08/2005 SWATI JAIN
24 17 22063 SR0348644/03/2006 RLS NANDA GOPAL
LANKA 18 13 41373 NR0464439/08/2005 NIDHI HIRAN

25 17 23285 WR0335465/08/2003 BHOOMI PRADIPB- 19 14 35804 NR0455725/08/2005 JATIN

HAI PATEL 20 14 50406 SR0329167/08/2005 MAHESHRAJ M R
26 18 9926 ER0251762/02/2007 ARHAM BENGANI 21 15 35205 NR0454671/08/2005 SIMPY MAHINDROO

27 19 10188 NR0526026/02/2007 SHWETA SAHANI 22 16 36854 NR0476621/02/2006 CHITRA MEHTA

28 20 17601 NR0516150/02/2007 ABHISHEK 23 17 30765 ER0215057/02/2005 ASHISH GUPTA

JAKHETIYA 24 17 30851 ER0229769/02/2006 RUCHI SINGHANIA
29 20 28088 WR0467657/02/2007 JASHUK KAMLESH 25 18 30902 ER0230871/02/2006 AMRITA JAIN
SHAH 26 18 30926 ER0231544/02/2006 SWATI KHOWALA
30 21 8308 ER0250506/02/2007 RAUNAK TOSHNIWAL 27 18 30982 ER0233292/02/2006 MOHIT BARASIA
31 21 13205 NR0519490/02/2007 ASHISH GARG 28 18 35209 NR0464611/08/2005 RAHUL PASSI

32 22 8409 ER0251943/02/2007 NEHA SINGHANIA 29 19 30670 ER0179934/02/2003 GAURAV BAJLA

33 23 8002 ER0206056/08/2004 ROHIT LATH 30 19 30789 ER0216861/05/2005 AKRAM JAMAL

34 23 8377 ER0251454/02/2007 NEHA AGARWAL 31 19 30876 ER0230377/02/2006 ISHA AGARWAL

32 19 30892 ER0230685/02/2006 MOHIT JAIN
35 23 14045 NR0523259/02/2007 ABHIYANK PAREEK
33 19 30895 ER0230765/02/2006 RAHUL AGARWAL
36 23 18943 SR0385963/02/2007 NETRAVATI V MADLUR
34 19 53827 WR0337681/08/2003 ROOPAK RAVINDRA
37 24 8334 ER0250821/02/2007 HARSHA AGARWAL
UBHAYAKAR
38 24 19786 SR0380003/02/2007 SRIRAM VAIDYANATHAN
35 19 55263 WR0399039/06/2005 SWAPNIL PRAKASH
39 25 8361 ER0251193/02/2007 PANKAJ SHAW PATIL
40 25 26095 WR0459461/09/2006 NISHANT KIRTI- 36 20 38546 NR0476355/02/2006 AKASH PHOPHALIA
KUMAR PATEL 37 20 50401 SR0319860/02/2005 SUMOD TOM THOMAS
41 25 28079 WR0446501/08/2006 SWATI MOTILAL JALAN 38 21 30907 ER0230972/02/2006 MOHIT SANGANERIA

Student Company Secretary 35 April 2008

 Student Services
39 21 55266 WR0399192/06/2005 ATUL VINODKUMARJI
HURKAT UNIFORMITY IN SIGNATURES
40 22 30745 ER0213321/02/2005 KHUSHBOO GUPTA
It has been observed that some of the enrollment
41 22 30945 ER0232191/02/2006 PUJA KHEMKA applications/ letters received from the students are
42 22 30954 ER0232403/02/2006 ATUL DUGAR either unsigned or bear different signatures from time
43 22 54329 WR0374278/08/2004 SUSHRUT SUNAY to time.
DARYAPURKAR All the students are, therefore, advised to maintain
44 23 30854 ER0229812/02/2006 ABINASH AGRAWAL uniformity in their signatures on all the correspondence
45 23 38545 NR0472401/01/2006 VIKAS LALWANI with the Institute including students identity card,
46 24 33033 ER0179976/02/2003 APURVA BHOTIKA enrolment application and attendance sheet provided
in the examination hall at the time of writing the
47 25 30819 ER0223200/08/2005 ARCHANA SRIDHAR
examination.
48 25 57410 WR0422918/12/2005 UMANG HASMUKH
SOMESHWAR

LIST OF INSTITUTES EMPANELLED IN IMPARTING THE ORAL 9. M/s Muley Classes December'08 and June'09
COACHING FACILITIES TO THE CS STUDENTS UNDER PUBLIC/ Shop No. 14, Ashoka Gardens Sessions of CS
PRIVATE PARTNERSHIP SCHEME B-Wing, M.P. Road, Examinations
Panvel-410206
S. Name & Address of Validity for CS Session
No. Empanelled Institutions of Examination SOUTHERN INDIA REGIONAL COUNCIL

EASTERN INDIA REGIONAL COUNCIL 10. Mohans Institute of Company December07 & June08
Secretaries, Sreyas Sessions of CS
1. Institute for Inspiration and Self December07 & June08 Chettiparambil Lane Examinations.
Development Sessions of CS Thekkumbhagam, Tripunithura
1-B-200/1, Sector-III, Examinations. Ernakulam (Distt.), Kerala-682301
Salt Lake City
Kolkata-700 016 11. St. John Foundation June '08 & December '08
Little Kingdom Montessori Sessions of CS
2. M/s Jain Classes June'08 & December'08 School Compund Examinations.
First Floor, Dey Complex Sessions of CS 338/3, West of Medical College
Outer Circle Road, Bistupur Examinations Nagercoil, Kanyakumari Distt.
Jamshedpur-831001 Asaripallam-629201
NORTHERN INDIA REGIONAL COUNCIL 12. Dr. G.G. Shetty Educational June'08 & December'08
3. M/s BRM Academy June'08 & December'08 Society, Jnana Degula, Sessions of CS
Kumbha Circle, Azad Nagar, Sessions of CS Near K.M.F. Examinations
Bhilwara-311001 (Rajasthan) Examinations Dharwad-580004

WESTERN INDIA REGIONAL COUNCIL 13. M/s Bright Academy of December'08 and June'09
Excellence, Baba Foundation Sessions of CS
4. Career Classes December07 & June08 Plot No. 46, Door No. 102 Examinations
303, Shalimar Corporate Center Sessions of CS Flat No. 6, 1st Floor, South
8, South Tukoganj, Near Hotel Examinations. West Boag Road, T. Nagar
Balwas, Indore (M.P) Chennai-600017
5. Institute of Management December07 & June08 14. M/s Prize Academy December'08 and June'09
Training & Research Sessions of CS 17, Hasthinapuram Main Road Sessions of CS
MIT Gate, Chromepet, Examinations
Artha Complex, 2nd Floor Examinations.
Chennai-600044.
Near IMA House and Tapdiya
Terrace, Off. Adalat Road 15. M/s Sree Saraswathi Thyagaraja December'08 and June'09
Aurangabad-431 001 (M.S) College Sessions of CS
Palani Road, Thippampati Examinations
6. M/s Career Consultant December'07 & June'08 Coimbatore Distt.
3018, Trade House, Ring Road Sessions of CS Pollachi-642107
Surat-395002 Examinations.
7. Madhu Jas Promotions Pvt. Ltd. June '08 & December '08
12/1, Dr. Sarju Prasad Marg Sessions of CS ERRATA
Behind Kanchan Hotel Examinations.
Near Gokuldas Hospital ATTENTION STUDENTS
Indore-452001 Final Course: Direct and Indirect Taxation Law and Practice
8. Tolani Commerce College June '08 & December '08 Suggested Answers: 2007 Series
P.O. Box No. 27 Sessions of CS In pages: 3,19,29,38 and 49 Insert Answer two questions from
Adipur (Kachchh) 370205 Examinations this part in place of Answer all questions. The error is regretted.

Student Company Secretary 36 April 2008

 Guidelines for Switch Over to New Syllabus
GUIDELINES FOR SWITCH OVER TO NEW SYLLABUS TABLE OF CORRESPONDING EXEMPTIONS (PAPERWISE)
The Council in exercise of the powers vested under clause (a) of Paper passed/exempted under Exemption from paper(s)
Sub-section (2) of section 15 of the Company Secretaries Act, 1980 the old Syllabus under the New Syllabus
as amended by the Company Secretaries (Amendment) Act, 2006-
Foundation Course CS Foundation Programme
has approved the New Syllabus and decided as under :-
1. English & Business English & Business Communi-
1. The last Foundation Course examination under the existing syl-
Communication cation
labus as specified in Part-I of Schedule CCB shall be held in
June, 2009 and the syllabus specified in the said Part I of Sched- 2. Basic Economics & Business Economics & Statistics
ule CCB shall crease to operate after the said examination. Environment
2. The last Intermediate Examination under the existing syllabus as 3. Financial Accounting Financial Accounting
specified in Part II of Schedule CCB shall be held in December, 4. Elements of Business Elements of Business Laws &
2009 and the syllabus specified in the said Part II of Schedule Laws and Management Management
CCB shall cease to operate after the said examination.
3. The last Final Examination under the existing syllabus as speci- Intermediate Course CS Executive Programme
fied in Part III of Schedule CCB shall be held in December 2010 Group-I Module-I
and the syllabus specified in the said Part III of Schedule CCB
5. General and Commercial General and Commercial Laws
shall cease to operate after the said examination.
Laws
4. All students who are not able to complete the Foundation/Inter-
6. Company Accounts & Cost & Company Accounts, Cost &
mediate/Final Examination under the existing syllabus as speci-
Mgt. Accounting Mgt. Accounting
fied in Part-I, Part- II and Part-III of Schedule CCB shall compul-
sorily be required to appear under the New Syllabus effective 7. Tax Laws Tax Laws
from December 2009, June 2010 and June 2011 sessions of CS 8. Management Information Sys NIL
Examination(s) respectively. & Corporate Commn.
5. Subjects under the New Syllabus are :- Group-II Module-II
CS FOUNDATION PROGRAMME 9. Company Law Company Law
1. English & Business Communication 10. Company Secretarial Practice Company Law
2. Economics and Statistics 11. Economic, Labour and Economic and Labour Laws
3. Financial Accounting Industrial Laws
12. Securities Laws and Regula- Securities Laws and Compli-
4. Elements of Business Laws and Management.
tion of Financial Markets ances
CS EXECUTIVE PROGRAMME Final Course CS Professional Programme
Module-I Group-I Module-I
1. General and Commercial Laws 13. Advanced Company Law Company Secretarial Practice
2. Company Accounts, Cost and Management Accounting & Practice
3. Tax Laws 14. Secretarial Practice Relating Drafting, Appearances and
to Economic Laws & Drafting Pleadings
Module-II
& Conveyancing
4. Company Law
15. Secretarial Management & Due Diligence & Corporate
5. Economic and Labour Laws Systems Audit Compliance Mgt. (Module-IV)
6. Securities Laws and Compliances Group-II Module-II
CS PROFESSIONAL PROGRAMME 16. Financial, Treasury & Forex Financial, Treasury & Forex
Management Management
Module-I
17. Corporate Restructuring Corporate Restructuring &
1. Company Secretarial Practice
Law and Practice Insolvency
2. Drafting, Appearances and Pleadings
18. Banking & Insurance Law and Governance, Business Ethics &
Module-II Practice Sustanability (Module-IV)
3. Financial, Treasury and Forex Management Group-III Module-III
4. Corporate Restructuring and Insolvency 19 World Trade Organisation, Strategic Management, Alli-
Module-III International Trade, Joint Ventures ances and International Trade
and Foreign Collaboration
5. Strategic Management, Alliances and International Trade
20 Direct and Indirect Taxation Advanced Tax Laws and
6. Advanced Tax Laws and Practice Law and Practice Practice
Module-IV 21 Human Resources Manage- Governance, Business Ethics
7. Due Diligence and Corporate Compliance Management ment and Industrial Relations and Sustainability (Module-IV)
8. Governance, Business Ethics and Sustainability 7. Students switching over to the News Syllabus shall be eligible to

Student Company Secretary 37 April 2008

 Guidelines for Switch Over to New Syllabus
seek exemption in the corresponding subject(s) of the New Sylla-
bus on the basis of having passed/secured exemption in any in-
dividual subject/group under the Old Syllabus as per table of cor-
responding exemptions noted above.
8. Similarly, students who have partially completed coaching, shall
be exempted on their switechover from undergoing coaching in
the corresponding subject(s) of the New Syllabus on the basis of
their having completed coaching in the individual subject(s)
group(s) under the Old Syllabus as per the table of correspond-
ing exemptions given in para-5 above. They shall be required to
undergo and complete coaching in the remaining subjects in
order to become eligible to appear in a particular group under the
New Syllabus. Credit for the response sheets already submitted
under the Old Syllabus for any subject shall be available where
there is a corresponding subject under the New Syllabus. Such
students are required to submit response sheets for the remain-
ing subjects under the New Syllabus.
9. Consequent upon compulsory switchover to the New Syllabus,
study material shall not be supplied free of cost. However, mak-
ing the payment towards its cost @ Rs. 120/- per subject can
purchase study material under the New Syllabus.
10. Please note that once a candidate has been switched over to the
New Syllabus, he/she shall not be allowed to revert to the Old
Syllabus under any circumstances.
Note : In case interested to switch over to the New Syllabus
for CS Foundation Programme, you are advised to opt for the
same on Declaration of the results for June' 08 of CS
Examination vis-a-vis while seeking the enrolment to appear
in December '08 Session onwards of CS Foundation
Programme Examination.
Note : In case interested to switch over to the New Syllabus
for CS Executive Programme, you are advised to opt for the
same on Declaration of the results for June '08 of CS
Examination vis-a-vis while seeking the enrolment to appear
in December '08 Session onwards of CS Executive Programme
Examination. And
Similarly if interested to switch over to the New Syllabus for CS
Professional Programme, you are advised to opt for the same
on Declaration of the results for December '08 of CS Examination
vis-a-vis while seeking the enrolment to appear in June '2009
Session onwards of Professional Programme Examination.
CLARIFICATION REGARDING HINDI MEDIUM
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 Institutes 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 paperwise basis.
Answering to test papers and writing examination partly in
English and partly in Hindi medium is not permissible.
REVISION
OF
LICENTIATESHIP FEE
This is to inform that effective from 1st April, 08 students
who have completed/passed the final examination of the Institute
and wish to apply for licentiateship will be required to pay a sum
of Rs. 1000/- instead of Rs. 200/- towards annual licentiateship
fee alongwith his application.

SCHEDULE OF ACADEMIC DEVELOPMENT PROGRAMMES (ADP)

Every student of the Institute, who has been sponsored for 15 months training either in a company or under a Company Secretary in Practice is
compulsorily required to attend and complete 25 Hours Academic Development Programme (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.
The Schedule of ADP proposed to be organized by the SIRC and NIRC is as under :-

Organised by Duration of the Venue of the Contact Address

the Programme Programme

SIRC of 19.07.2008 Office Premises Deputy Director, SIRO of the ICSI, ICSI-SIRC Building, New No. 9,
the ICSI Wheat Crofts Road, Nungambakkam, Chennai-600034 Tel. : 044- 28279898/
28222212 E-mail : siro@icsi.edu/ icsisiro@md3.vsnl.net.in.
NIRC of 19.05.2008 Office Premises The Executive Officer, NIRC of the ICSI, ICSI-NIRC Building, Plot No. 4,
the ICSI Prasad Nagar, Institutional Area, New Delhi-110005 Tel. : 25763090/
25767190, 25816593 Fax : 25722662 (STD CODE : 011)
E-mail : niro@icsi.edu/icsi@eth.net
Agra Chapter 07.05.2008 To be Programme Incharge, Agra Chapter of NIRC of the ICSI B-623, Kamla Nagar
of NIRC of the announced Agra. Tel. : (0562) 2881618, 9897602111, 9319114911
ICSI

The schedule of other ADPs proposed to be organised by SIRC and NIRC during 2008 is as under : SIRC : (i) 01.11.2008
NIRC: (i) 30.06.2008 (ii) 14.07.2008 (iii) 02.08.2008 (iv) 13.09.2008 (v) 01.11.2008 (vi) 24.11.2008 (vii) 29.12.2008.

Student Company Secretary 38 April 2008

 News and Announcements
NEWS AND ANNOUNCEMENTS NOTE: l Each Lecture is of two hours duration. l Admission
on first come first served basis. l Commencement of classes
is subject to availability of sufficient number of students in
Oral Coaching Classes for December 2008 Examinations each batch. l The students undergoing Oral Coaching and
of the Institute passing the required eligibility tests need not to submit the
response sheets under postal tuition scheme.
NORTHERN INDIA REGIONAL COUNCIL Admissions to the above mentioned batches will remain
open even after commencement of the classes and on
receipt of sufficient enrolments some more sections/
REGULAR CLASSES THROUGH INTERACTIVE LEARNING
batches may be conducted.
FOR DECEMBER, 2008, EXAMINATION
DATE OF COMMENCEMENT OF CLASSES: 15.4.2008 Interested students may deposit the fee at NIRC of ICSI, 4,
Prasad Nagar Institutional Area, New Delhi-110005 by Cash/
VENUE: NIRC-ICSI, 4, PRASAD NAGAR INSTITUTIONAL
Demand Draft in favour of the NIRC of ICSI payable at New
AREA, NEW DELHI-110005 Delhi. Admission in open from 26th March, 2008 onwards. For
STAGE TIMINGS NO. OF FEE DAYS further details contact: Education Officer, NIRO of the ICSI. Tel.:
LECT- (Rs.) 011-25769352, 25763090, 25767190, Tele fax: 011-25722662,
URES Email: icsi@eth.net, niro@icsi.edu, edoniro@icsi.edu
FINAL ICSI-MOTHER TERESA INSTITUTE OF MANAGEMENT
GROUP I 7.30A.M.- 90 4,500/- Daily two AND VOCATIONAL STUDIES ORAL TUITION CENTRE
12.00 Noon lectures. Oral Coaching Classes for Foundation and Intermediate Group
I&II*- December 2008 session
7.30A.M.- 90 4,500/- (Mon/Wed/
Oral Coaching classes for Foundation and Intermediate Group
9.30A.M. Fri) I&II* are likely to commence from 28.4.2008 and 26.5.2008
Daily one respectively. Course Fee : l Foundation Rs.4000/- l Inter
lecture Group-I Rs.4500/- l Inter Group-II Rs.4000/- Timings : 4.00 to
GROUP II 7.30A.M.- 95 5,000/- Daily one 5.30 P.M. (Monday to Saturday) Registration open on all
9.30 A.M. lecture. working days between 9.30 A.M. and 5:30 P.M. Admission
on first-come-first-served basis.
GROUP III 7.30 A.M.- 100 5,500/- Daily two (* Provided sufficient number of students are registered for
12.00 Noon lectures. Group-II). For further details, please contact: Mr. J.K.Chawla/
7.30A.M.- 100 5,500/- (Tue/Thu/ Mr.Vinay Gupta, Mother Teresa Institute of Management &
9.30 A.M. Sat) Vocational Studies, C- Block, Preet Vihar, Delhi-110092,
Daily one Phones: 22057200, 42420552, 42420553 Fax : 22509200 Email:
lecture. mtim@vsnl.net
INTERMEDIATE SONEPAT SATELLITE CHAPTER
GROUP I 7.30A.M.- 130 4,500/- Daily one Commencement of Oral Coaching Classes
9.30A.M lecture W.e.f. 1.5.2008 the Chapter proposes to commence Oral
GROUP I 10.00 A.M.- 130 4,500/- Daily two Coaching Classes for Executive Programme (both Groups).
2.30P.M. lectures Fee: Rs.4,500/- per Group; Contact No. 09416972240.
3.00 P.M. - 130 4,500/- Daily two Admission on first come first served basis.
7.00 P.M. lectures
3.00 P.M. - 100 4500/- Daily two SOUTHERN INDIA REGIONAL COUNCIL
7.00 P.M. lectures
(New Syllabus) ORAL COACHING CLAS SES FOR EXECUTIVE
PROGRAMME FOR DECEMBER 2008 EXAMINATION
GROUP II 7.30A.M.- 115 4,000/- Daily one From 21.4.2008 The Southern India Regional Office of The
9.30A.M. lecture ICSI is commencing Oral Coaching Classes for Executive
GROUP II 10.00A.M.- 115 4,000/- Daily two Programme (both Modules) for December 2008 examination of
2.30P.M. lectures the Institute. Executive Programme: Module-I (Morning),
3.00P.M. 115 4,000/- Daily two Module-II (Evening); Date of commencement of Classes:
7.00 P.M. lectures 21.04.2008, Fees: Rs.3350/- per Module.
FOR FURTHER DETAILS PLEASE CONTACT: SIRC OF THE ICSI
3.00P.M. 90 4,000/- Daily two
New No.9, Wheat Crofts Road, Nungambakkam Chennai
7.00 P.M. lectures
600 034 Phone: 28279898, 28268686 E-mail: siro@icsi.edu,
(New syllabus)
icsisirc@md3.vsnl.net.in
FOUNDATION
7.30 A.M.- 150 4,000/- Daily one
WESTERN INDIA REGIONAL COUNCIL
9.30 A.M. lecture THANE CHAPTER
10.00 A.M.- 150 4,000/- Daily two Intermediate Course Oral Coaching Classes
2.30P.M. lectures W.e.f. 16.6.2008 the Chapter proposes to commence its next batch
3.00 P.M.- 150 4,000/- Daily two of Intermediate Course Oral Coaching Classes for Grs.I & II for
7.00P.M. lectures December 2008 examination. Fee: Rs.3500/-. Timings: 06.30 to
08.30 P.M. For further details contact the Chapter Office at 203,
3.00 P.M.- 120 4,000/- Daily two
Mankame Building, 2nd Floor, Opp. Saraswati Book Depot,
7.00P.M. lectures
Dattamandir Road, Chendani Koliwada, Thane (W) 400 601.
(New Syllabus)
Phone No. 2544 4479 E-mail: icsi_thanechapter@yahoo.co.in

Student Company Secretary 39 April 2008

 Student Services

ONLINE REGISTRATION FOR FOUNDATION/REGULAR COURSE

Student Company Secretary 40 April 2008

 Student Services

C-37, Sector-62, NOIDA-201309

Student Company Secretary 41 April 2008

 EMPANELMENT OF PRIVATE COACHING CENTRES FOR CONDUCTING ORAL
COACHING CLASSES FOR CS STUDENTS ON BEHALF OF THE INSTITUTE
In a path-breaking initiative, the Council of The Institute of Company Secretaries of India has decided to empanel
Private Coaching Centres for conducting the Oral Coaching Classes for the students undergoing CS Course on
behalf of the Institute. At present, the Institute is conducting the Oral Coaching Classes on its own through its
Regional Councils/ Chapters/ Satellite Chapters.

This landmark decision will undoubtedly have a far reaching impact on the entire Oral Coaching System under
the Company Secretaryship Course and it provides a golden opportunity to reputed Coaching Centres in the private
sector to get associated with one of the premier professional institutes in India constituted under Company Secretaries
Act, 1980, functioning under the administrative jurisdiction of Ministry of Corporate Affairs, Government of India.

The Institute invites applications from interested institutions for conducting Oral Coaching Classes for CS
Students under the aforesaid Scheme. The Regional Councils/ Chapters/ Satellite Chapters of the Institute scattered
all over India have been authorized to scrutinize and forward the applications to Headquarters after preliminary
assessment of infrastructure, etc. in the respective areas along with their recommendations. For format of application,
comprehensive guidelines and modus operandi of the Scheme, please visit the Institutes website www.icsi.edu
OR send an application directly to:-

Shri Sohan Lal, Joint Director (Student Services)

The Institute of Company Secretaries of India,
C-37,Sector-62, NOIDA-201309

STATUS OF TRAINING
(Period from 01-03-2008 to 31-03-2008)
15 Months Training with Company/Company Secretary in Practice and 03 Months & 15 days Practical Training
STAGE-I STAGE-II
Biodata of the students sent to the companies/company Students sponsored for training
secretaries in practice for consideration
APPLICATIONS CASES
Pending Received Forwarded for Pending Pending Received No. of students Pending
Training as on during the consideration as on as on during who have actually as on
Type 29.02.08 month (upto 31.03.08) 31.03.08 29.02.08 the month taken for training 31.03.08
(upto 31.03.08)
15 Months in 33 102 105 30 29 129 126 32
Companies

15 Months with 09 37 36 10 34 134 128 40

CS in Practice

3 Months in 06 190 181 15

Company/
15 Days in
Optional Area

2. Exemption
1. Number of applications pending as on 29.02.2008 : 20
2. Number of applications received for exemption : 132
3. Number of exemptions granted/correspondence attended : 67
4. Number of pending applications as on 31.03.2008 : 85

Student Company Secretary 42 April 2008

 Training Orientation Programme

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
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 attend five days Training
Orientation Programme (TOP) before they are sponsored for
training. It has also been decided that henceforth students
will be sponsored for training in the companies or with company
secretaries in practice as per the following schedule.

Activities Session1 Session 2 Session 3 Session - 4

Registration of students January 1 to March 01 to June 01 to September 01 to
for 15 months Training January 10 March 10 June 10 September 10
Organisation of TOP January 15 to March 15 to June 15 to September 15 to
January 24 March 24 June 24 September 24
Campus Interview January 25 to March 25 to June 25 to September 25 to
January 31 March 31 June 30 September 30
Commencement of February 01 April 01 July 01 October 01
Training Onwards Onwards Onwards Onwards
Completion of April 30* June 30* September 30* December 31*
Training Next Year Next Year Next Year Next Year
* If the student avails extra leave, the training will be extended accordingly.
Training Orientation Programme is a part of the 10. Usefulness of reading newspapers
Management/Apprenticeship training and is based on Guru 11. Self-assessment
Shishya Parampara. Training Orientation Programme will not SWOT analysis
only expose the students to the business environment and Career prospects
corporate functioning but would also help them in acquiring
Personality
the desired skill and confidence.
12. Writing of curriculum vitae
The Regional Councils will organize the Training Orientation
Programme from 15th to 24th of the four fixed months i.e. 13. Interview Techniques
January, March, June & September. 14. Career Planning
For effective interaction and participation, not more than 15. Computer-Internet/E-mail
40 students would be enrolled in each TOP. A fee of Rs. 400/ 16. File management
- per participant will be charged. 17. Organisation structure, role and functioning of Competition
The following topics will be included in the programme : Commission of India, CLB/NCLT, ROC, Stock Exchange,
SEBI, RBI, DRT
1. Importance of Training
18. Usefulness of Professional Development Programmes.
2. Personality Development- Dress Code & How to carry
oneself 19. Code of Conduct
20. Future Prospects
3. Time Management
For helping the students to identify Companies or Company
4. Meaning of Professionals
Secretaries in practice for undergoing training, the Regional
5. Office Culture Councils would also arrange Campus Interviews, immediately
6. Communication Skill on conclusion of each TOP for on-the-spot selection of
Writing ability candidates. Such Campus Interviews will be organized during
Drafting of letters the four fixed months from March 25 to 31; June 25 to 30;
September 25 to 30 and January 25 to 31.
Speaking ability
All students intending to commence Management/
7. Group discussion, Drafting of Minutes, Notices,
Apprenticeship training are advised to contact the respective
Resolutions etc.
Regional Councils for enrolling themselves for TOP. Only on
8. How to qualify professional examination successful completion of TOP, students would be sponsored
9. Managing under crisis for training by the Institute.

Student Company Secretary 43 April 2008

 Companies Registered for Imparting Training
LIST OF THE COMPANIES REGISTERED FOR IMPARTING Videocon Industries Limited 15 and 03 Suitable
TRAINING DURING THE MONTH OF FEBRUARY, 2008 221, Fort House, Dr. D.N. Road Months
Fort, Mumbai-400601 Practical Training
Region Training Stipend
Type (Rs.) Panchshil Techpark Pvt. Ltd. 15 Months 10,000
G-3, Phoenix Building Training
NORTHERN Bund Garden Road, Pune
Career Launcher India Limited 15 Months Suitable Coastal Gujarat Power Limited 15 Months Suitable
B-52, Okhla Industrial Area, Phase-I Training Tata Power Backbay Receiving Station Training
New Delhi-110020 (A Tata Power Company)
Dish TV India Limited 15 Months 7000 148, Lt. Gen. J Bhonsle Marg,
FC-19, Film City, Sector-16A Training Nariman Point, Mumbai-400021
Noida-201301 Cinevistaas Limited 15 Months Suitable
Cellnext Solutions Limited 15 Months Suitable Plot No. 1, L.B.S. Marg, Gandinagar Training
A-186, Okhla Phase-I Training Kanjurmarg (West), Mumbai-400078
New Delhi-110020
Wimplast Limited 15 Months Suitable
Amira Foods (India) Limited 15 Months Suitable 8, Vakil Industrial Estate Training
54, Prakriti Marg, Sultanpur Farms Training 2nd Floor, Walbhat Road,
Mehrauli, New Delhi-110030 Goregaon (East), Mumbai-400063
Vikas Telecom Limited 15 Months Suitable Shardul Securities Limited 15 Months Suitable
Vrindavan Park, S-19, 1st Floor Training G-12, Tulsiani Chambers Training
Panchseel Park, New Delhi-110049 Nariman Point, Mumbai-400021
CHD Developers Limited 15 Months Suitable Artefact Projects Limited 15 Months Suitable
SF-16-17, First Floor, Madame Bhikaji Training
1st Floor, Bhiwapurkar Chamber Training
Cama Bhawan, 11, Bhikaji Cama Place,
Opp. Yeshwant Stadium, Dhantoli
New Delhi-110066
Nagpur-440012
Office of the Official Liquidator 03 Months
Mirae Asset Global Investment 15 Months Suitable
UP and Uttrakhand Practical
Management (India) Pvt. Ltd. Training
33, Tashkant Marg, Civil Lines, Training
Allahabad UP 606, Windsor, Off. CST Road Kalina
Santacruz (East), Mumbai-400098
Office of the Commissioner Service Tax 03 Months -Nil-
17-B, Indraprastha Estate Practical ING Investment Management (India) Pvt. Ltd. 15 Months 8000-
New Delhi-110002 Training 101, "Windsor", Off. C.S.T. Road Training 10,000
Kalina, Santacruz (E), Mumbai-400098
Vishal Retal Limited 15 Months Suitable
Bramha Bazaz Hotels Limited 15 and 03 Suitable
Khasra No. 332, Near Telco Service Training
Station, Behind Shokeen Property LE Meridien, R.B.M. Road Months
Rang Puri, Delhi-110037 Pune-411001 Practical Training
Resurgere Mines & Minerals 15 Months Suitable
Canara HSBC Oriental Bank of 15 Months 10,000
India Limited Training
Commerce Life Insurance Company Training
156, Maker Chamber-III, Nariman Point
Limited, C/o Amsort Systems,
Unitech Trade Centre, Sector-43, Mumbai-400021
Sushant Lok-1, Opp. Park Plaza Hotel Ess Dee Aluminium Limited 15 Months Suitable
Gurgaon-122001 Ess Dee House, Akurli Road Training
Kandivali (East), Mumbai-400101
Cords Cable Industries Limited 15 Months Suitable
B-1/A-26, Mohan Co-operative Ind Training Reliance Life Insurance Company Ltd. 15 Months 8500-
Estate Mathura Road, New Delhi-110044 Midas Wing, Sahar Plaza, Andheri Training 10,000
WESTERN East, Mumbai-400059
IFCI Financial Services Limited 15 Months 6000 Grindwell Norton Limited 03 Months Suitable
7th Floor, Earnest House, Nariman Point, Training Leela Business Park Practical
Mumbai-400021 5th Level, Andheri-Kurla Road Training
Mumbai-400059
Bombay Rayon Fashions Limited 15 Months 4000
D-1st Floor, Oberio Garden Estates Training Intime Spectrum Registry Limited 15 Months Suitable
Chandivali Farms Road, Chandivali 308, 1st Floor, Jaldhara Complex Training
Andheri (E), Mumbai-400072 Opp. Manisha Society, Saiyad Vasana
Road, Vadodara-15
Sahyadri Industries Limited 15 Months Suitable
39/D, Gultekadi, Jawaharlal Nehru Training Eastern
Road, Pune-411037 SKP Securities Limited 15 Months Suitable
Euro Ceramics Limited 15 Months Suitable Chatterjee International Centre Training
Boston House, Ground Floor Training Level-21, 33A, Jawahar Lal Nehru Road,
Suren Road, Chakala, Andheri (E) Kolkata-700071
Mumbai-400093
Manali Credit & Securities Limited 15 Months Suitable
Orbit Corporation Limited 15 Months Suitable C/o P. Gaggar & Associates Training
The view 165, Dr. Annie Besent Road Training Aastha Tower, 2nd Floor, C.K. Road,
Worli, Mumbai-400018 Panbazar, Guwahati-781001

Student Company Secretary 44 April 2008

 Practising Members Registered for Imparting Training
SREI Capital Market Limited 15 and 03 5000- MADHUKAR B. GOLE PCSA-1645
Hi-Tech Chambers, 84/1B, Months 10000 Plot No. 44, "Ambika", Bilvadal Polce Colony
Topsia Road (South), Kolkata-700046 Practical Training Near Swamy Ayyappa Mandir, Savedi
Ahmednagar-414003.
SOUTHERN
The Lakshmi Vilas Bank Ltd. 03 Months Suitable SANIVARAPU SARVESWAR REDDY PCSA-1646
Salem Road, Kathaparai Practical 6-3-354/13/B2, Second Floor, Suryateja Apartment
Karur-639006 Training Hindi Nagar, Panjagutta, Hyderabad-34.
Arham Plastics Limited 15 Months Suitable SANDEEP KUMAR PCSA-1647
Thiru Complex, 44, Pantheon Road Training 17/49, 3rd Floor, Front Side, Subhash Nagar
Egmore, Chennai-600008 New Delhi-110027.
Everonn Systems India Ltd. 15 Months 5000 PANKAJ KANTHA PCSA-1648
No. 82, IV Avenue, Ashok Nagar Training S01/184, Old Mahavir Nagar, Near Tilak Nagar
Chennai-600083 New Delhi-110018.
Sai Advantium Pharma Ltd. 15 Months Suitable G.S. JAMBEKAR PCSA-1649
Luxor Park, Road No. 2, Banjara Hills Training B/3, Om Malayagiri Co-op Hsg. Soc. Ltd.,
Hyderabad-500033 Sant Dnyancshwar Marg, Near Shri Krishna Nagar
Borivali (East), Mumbai-400066.
Alphageo (India) Limited 15 Months Suitable
317/A, M.L.A.'s Colony, Road No. 12 Training SANDEEP INDUBHAI GANDHI PCSA-1650
Flat No. 3, Vasant Vihar
Banjara Hills, Hyderabad-34
New Nagardas 'X' Road, Andheri (East)
Satyam BPO Limited 15 Months Suitable Mumbai-400069
4th Floor, Cyber Pearl, Hitec City Training
MADHURI KULKARNI PCSA-1651
Madhapur, Hyderabad-500081
#131, 3rd Cross Green Garden, Gokul Road,
Sugal & Damani Finlease Limited 15 Months Suitable Hubli-580030
City Centre Plaza (1st Floor) Training
SHAILENDRA TIWARI PCSA-1652
7, Anna Salai, Chennai-600002
4th Floor, Behramji Mansion, Sir P.M. Road,
Fort, Mumbai-400001
LIST OF PRACTISING MEMBERS REGISTERED FOR THE
PURPOSE OF IMPARTING TRAINING DURING THE MONTH NEHA SHARMA PCSA-1653
OF FEBRUARY, 2008 B/B3, Nawlakha Apts, Bharatmata Path
J.L. Bajaj Marg, C-Scheme, Jaipur-302001.
YOGESH DINANATH DABHOLKAR PCSA-1644 CHITRA V.S. PCSA-1654
4, Manda/Sunanda Niews, Nandivli A-80, Deepam, Gandhari Amman
Cross Road, Dattanagar, Dombivli (East) Kovil Street, Mele Thampanoor Statue
Thane-421201 Thiruvananthapuram-695001

ICSI INTRODUCES 24 5 7 STUDY THROUGH E-LEARNING

(http://elearning.icsi.edu)
In order to facilitate students, e-learning portal is available for the Company Secretary Foundation Programme which will
also be extended to Executive Programme and Professional Programme in due course. All students from rural, urban areas
at national level and also other countries can avail this 24x7 on-line study facility as the portal has global reach.
Under e-learning, students can have continuous access to studies and guidance of faculties on-line. The e-learning
module will enable the students to have access to learning and faculty support at any time as per their convenience. Interactivity
will be established by modules such as Discussion Boards and Online Chat. After the proposed virtual classroom facility
under e-learning portal starts, students will be able to interact live with the faculty. This will take the CS course studies
virtually into the space age.
Undergoing of e-learning is in addition and not in substitution to compulsory postal tuition. E-learning is designed to
provide a virtual contact between the teacher and the taught. Student intended to join e-learning are therefore, required to
pay additional fees as determined by the Institute from time to time.
To access the E-learning Portal of ICSI the candidates may log on to http://elearning.icsi.edu
A nominal annual fee of Rs 250/-**(Rupees Two hundred and fifty only) plus taxes for first year has to be paid for WBT (Web
Based Self Paced Learning).
The candidate can use the following modes of payment for availing the service:
l Online on the website http://elearning.icsi.edu by Credit Card / Debit card/ ECS (electronic clearing services)
l By way of Demand Draft (DD) in the name of ICSI GurukulOnline payable at Mumbai(For more information visit the
website http://elearning.icsi.edu)
** The charges for subsequent years are listed on http://elearning.icsi.edu. The charges are in addition to the Registration fees.

Student Company Secretary 45 April 2008

 Advertisement Tariff
(With Effect From 1.9.2006)
Back Cover Cover III
Non-Appointment Appointment Non-Appointment Appointment
Rs. Rs. Rs. Rs.
Per Insertion 18,000 7,000 Per Insertion 14,000 6,000
4 Insertions 64,800 25,200 4 Insertions 50,400 21,600
6 Insertions 95,040 36,960 6 Insertions 73,920 31,680
12 Insertions 1,83,600 71,400 12 Insertions 1,42,800 61,200

Full Page Half Page

Non-Appointment Appointment Non-Appointment Appointment
Rs. Rs. Rs. Rs.
Per Insertion 12,000 4,500 Per Insertion 7,000 2,500
4 Insertions 43,200 16,200 4 Insertions 25,200 9,000
6 Insertions 63,360 23,760 6 Insertions 36,960 13,200
12 Insertions 1,22,400 45,900 12 Insertions 71,400 25,500

Panel (Qtr. Page) Extra Box No. Charges

Per Insertion 5,000 1,500 For 'Situation Wanted' ads 25/-
(Subject to availability of Space)
For Others 50/-
Classified Ads 120/- Per 35/- per
col. line Col. line
The Institute reserves the right not to accept order
for any particular advertisement.
Mechanical Data
The Bulletin is published in the 3rd week of every
month and the advertisement material should be
Full page 18 5 24 cm
sent in the form of typed manuscript, art pull or in
Half Page 9 5 24 cm or 18 5 12 cm CD (open file) before 10th of any month for inclusion
in the same month's issue.
Quarter page 9 5 12 cm

FOR FURTHER INFORMATION WRITE TO:

THE EDITOR
STUDENT COMPANY SECRETARY

ICSI House, 22 Institutional Area, Lodi Road, New Delhi-110 003

Ph. : 41504444, 24617321-24 and 24644431-32
Fax : 91-11-24626727 E-mail : info@icsi.edu

Student Company Secretary 46 April 2008

 SHIFTING OF STUDENT SERVICES SECTION
In order to provide Single Window Services to the students - in close co-ordination with the Directorate of Information Technology,
Directorate of Examinations and Directorate of Finance & Accounts - the Directorate of Student Services has been shifted from 17th
August, 2007 to a more spacious building located at Noida; which is one of the fully developed townships in the periphery of Delhi and also
home to some of the big names in the field of Information Technology / IT Enabled Services. In view of the above, effective from 17th
August, 2007 for all queries and services, students are advised to contact the following address: -

Joint Director (Student Services)

The Institute of Company Secretaries of India
C-37, Sector-62, NOIDA 201 309

Further, the contact numbers and E-Mail ids of the contact persons for various queries and services are furnished below. Students may
please note that, it is in their own interest to address the query to the right person for prompt response.

S. Nature of Query Contact Person Telephone Number E-Mail id

No. (STD Code :0120;
From Delhi : 95120)

1. Registration Status/ Issue of Study

Material, etc. for

(a) Intermediate Course Ms. Hema Malini/ 4239993-98 ss_reg@icsi.edu

Ms. Anju Gupta Extension 2022

(b) Foundation Course Ms. Archana Goel/ 4239993-98 ss_fond@icsi.edu

Ms. Seema Kamboj Extension 2023

(c) Denovo/Extn./Final Enrolment Ms. Shobha Bhaskar/ 4239993-98 ss_post@icsi.edu

Ms. Harvinder Kaur Extension 2126

2. Paper-wise Exemption/ Non-receipt Mr. B S Chopra/ 4239993-98 ss_enrol@icsi.edu

of Registration Letter/ Identity Card/ Mr. Om Prakash Extension 2124/2131 ss_misc@icsi.edu
Student Company Secretary Bulletin/
CS Foundation Course Bulletin

3. Coaching Completion Certificates/ Mr. Vinod Jetly/ 4239993-98 ss_coaching@icsi.edu

Suggested Answers and Response Ms. Neelam Wadhwa Extension 2122/2128
Sheet Status / Compulsory Computer
Training

4. Issue of Admission Certificate for Mr. T P Balasubramanian/ 4239993-98 ss_lic@icsi.edu

Examinations Ms. Durga Shankar Extension 2123/2125
5. Duplicate Pass Certificiate
(a) Intermediate Mr. S P Singh/ Ms. Prem Lata 4239993-98 spsingh@icsi.edu
Extension 2129

(b) Foundation/ Final Ms. Durga Shankar/ 4239993-98 ss_lic@icsi.edu

Ms. Archana Goel Extension 2125

6. Transcripts/ Verification of Mr. S P Singh/ 4239993-98 ss_lic@icsi.edu

Qualifications (only for students) Ms. Durga Shankar Extension 2125/2129

In case of any difficulty, Shri Sohan Lal, Joint Director(Student Services) may be contacted at Tel. No. 4239999.

Student Company Secretary 47 April 2008

 ATTENTION STUDENTS
SCHEDULE OF FEES W.E.F. 01.04.2008
PARTICUALRS FEES (RS.) REMARKS
FOUNDATION PROGRAMME

Admission Fee 1200

Postal Tutition Fee 2400 Total Fees 3600

EXECUTIVE PROGRAMME
Registration Fee 1500 Total Fees 7000
Foundation Examination Exemption Fee 500 (For commerce
Postal Tuition Fee for Executive Programme 5000 graduates)
Postal Tuition Fee for Foundation Programme (payable by 750
Non-Commerce Graduates who are seeking exemption from Total Fees 7750
passing the Foundation Programme Examination under (For others)
clause (iii) of Regulation 38)

PROFESSIONAL PROGRAMME
Postal Tuition Fee 7500
Registration De-Novo Fee 1500
Exemption from Foundation Examination Fee 500
Exemption from Executive Programme Examination Fee 500

EXTENSION OF REGISTRATION
Extension of Registration Fee 500
Service Charges for Extension of Registration 150

EXAMINATION FEE
Foundation Programme 875
Executive Programme 900
(Per Module)
Professional Programme 750
(Per Module)
Late Fee for receipt of Examination Application 100
Change of Examination 100
Center/Module/Medium

OTHER FEES
Paper-wise Exemption Fee 100
Issue of Duplicate Identity Card Fee 50
Issue of Duplicate Pass Certificate Fee 50
Verification of Marks Fee 100
(Per Subject)

Student Company Secretary 48 April 2008

 COMPANY SECRETARIES EXAMINATIONS JUNE, 2008
TIME TABLE & PROGRAMME
MORNING SESSION AFTER-NOON SESSION
9.30 AM TO 12.30 PM 1.30 PM TO 4.30 PM
DATE AND
FINAL FOUNDATION INTERMEDIATE
DAY
02.06.2008 Advanced Company English and Business General and Commercial Laws
Regn. No. 42947/84

Monday Law and Practice Communication

03.06.2008 Secretarial Practice relating to Basic Economics and
Tuesday Economic Laws and Drafting Business Environment Company Accounts and Cost &
& Conveyancing Management Accounting

GROUP-I
Posting Date : 20/21-04-2008

04.06.2008 Secretarial, Management Financial Accounting Tax Laws

GROUP-I
Wednesday and Systems Audit
05.06.2008 Financial, Treasury Elements of Business Laws Management Information Systems
Thursday and Forex Management and Management & Corporate Communication
06.06.2008 Corporate Restructuring Information Systems and Company Law
Friday Law and Practice Quantitative Techniques
07.06.2008 Banking and Insurance Company Secretarial Practice

GROUP-II
Saturdary Law & Practice
08.06.2008 World Trade Organisation
Sunday International Trade, Economic, Labour and Industrial Laws
Joint Ventures and
Foreign Collaborations GROUP-II
09.06.2008 Direct and Indirect Taxation Securities Laws and Regulation
Monday Law and Practice of Financial Markets

GROUP-III
10.06.2008 Human Resources Management and
Tuesday Industrial Relations

Delhi.

SECRETARIES OF INDIA
MODE OF PAYMENT
FOR PROMPT REPLY

Lodi Road, New Delhi-110003.

If undelivered, please return to:
correspondence for prompt reply.

Secretaries of India, payable at New

All fees and other dues payable to

favour of The Institute of Company

Delhi Postal Regn. No. DL(S)01/3167/2006-07-08

Licensed to post without prepayment at N.D.P.S.O.

Licence No. U (C) 130/2006-08

the Institute may be remitted only by

crossed demand draft drawn in

ICSI House, 22, Institutional Area,

THE INSTITUTE OF COMPANY
Students are requested to quote
their Registration Number in all