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BARODA BRANCH OF WESTERN INDIAN CHARTERED ACCOUNTANTS STUDENTS' ASSOCIATION (WICASA)

OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

VOL. XII JANUARY 2012lThe Institute of Chartered Accountants of India(Setup by an Act of Parliament)

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Taking Learning to a New Dimension……..

DISCLAIMER

The views and opinion expressed or implied in the Newsletter are those of the authors/contributors and do not necessarily reflect those of ICAI. Unsolicited articles and transparencies are sent at the owner's risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of ICAI.

Students are requested to kindly send article / paper of interest to [email protected]. The same may be published in the newsletter subject to availability of space & editing.

WICASA COMMUNITY :

Be a part of the “WICASA Baroda” on FACEBOOK Community. Exchange views and news. Keep updated about ICAI Announcement and forthcoming events of WICASA.

STUDY CIRCLE - FOR THE STUDENT'S, BY THE STUDENT'S, OF THE STUDENT'S:

Join now .... where in students can exchange knowledge with the help of group discussion. Contact Mr. Amit Muley (M) 9974621161, Mr. Manish Gandhi (M) 9824385565, Mr. Ashish Agrawal (M) 9722852279

WICASA HELPLINE :

Students are invited to send their feedback suggestions or grievances to [email protected] or contact Mr. Amit Muley (M) 9974621161

PRINTED AND PUBLISHED BY“ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012. Telefax : +91 (265) 2680593, 2681115 E-mail: [email protected] Web : www.baroda-icai.org Designed at Multiprints, 30/B, Gandhi Oil Mill Compound, Near BIDC, Gorwa, Vadodara - 390 016.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIAICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110002.

l lTel. : +91 (11) 39893989 E-mail : [email protected] Website : www.icai.in

WESTERN INDIAN CHARTERED ACCOUNTANTS STUDENTS' ASSOCIATIONICAI Bhawan, 27, Cuffe Parade, Post Box No. 6081, Colaba, Mumbai - 400 005.

l lTel. : +91 (22) 39893989 Email : [email protected] Website : www.wirc-icai.org

BARODA BRANCH OF WICASA“ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012.

l lTelefax : +91 (265) 2681115, 2680593 E-mail: [email protected] Web : www.baroda-icai.org

Managing Committee Members

CA. Pradeep Agrawal Chairman 9898560967

Mr. Amit Muley Vice Chairman 9974621161

Mr. Nandan Soni Secretary 9429257237

Ms. Priyanka Thakkar Treasurer 9979100633

CA. Ashish Parikh Ex-officio 9825231545

Ms. Sheekha Kotak Member 9825312097

Mr. Ravi Gandhi Member 9427983598

Ms. Anshul Bhatia Member 9974627595

CA. Pradeep Agrawal Editor 9898560967

Ms. Anshul Bhatia Joint Editor 9974627595

Mr. Amit Muley Member 9974621161

Mr. Ajay Prasad Member 9925170598

Editorial Board

While I pen down this last message as the WICASA Chairman, I am reminded of the objectives and goals which I had undertaken while assuming the post.

My theme for the year was “Taking Learning To A New Dimension…” the theme was evolved on the concept of not only seeing new lands but seeing it with new eyes as well. New eyes filled with creativity, innovation, passion and excellence.

My prime aim was to involve maximum number of students in WICASA activities and this we have been able to accomplished by involving 4000+ students in various activities and due to the overwhelming response in participation, we were able to cross a mark of 200+ activities in the year.

Beside regular featured activities like Seminars, Lectures, Industrial Visits, New Initiatives like Revisionary Sessions, Pop –The –Question, BOS - Mock Test Series, Monthly E- Newsletter, WICASA Facebook, Vitcos Bus Facility, Celebration of Republic & Independence Day, got inspiring response, and motivating me to explore new avenues for the students.

Further, to bring out the creativity and talent in the students we held two mega events in this year. Indoor & Outdoor Sports Competition and CA Students Festival-“UDAAN 2011”

In Indoor and Outdoor sports, we introduced new games Volleyball, Billiards and Chess. And the game of cricket witnessed participation of ten teams.

The Students Youth Festival which is held at the end of every year and students very eagerly wait for this event, we tried to conduct it in an unusual manner this year. We designed the Festival based on the Theme “UDAAN 2011” symbolizing that student is like a free bird- Spreading their wings far and wide and soaring high above in the skies.

The idea was to give complete freedom of thought and independent decision making. The concept of fun- fair was developed with the objective to bring out the marketing, execution and business skill of the students also to make them aware of the real life situations.

And I am pleased that my objective has been accomplished as we got a very fine response. The two days of the festival were energetic, fun filled and full of experiences.

And while concluding this farewell message, I feel contented and satisfied that I along with my Enthusiastic Team have been able to create a room for innovation, creativity and excellence which was my motto for the year.

With this note, I conclude my last message and thank you all for your unbound support and convey my Best Wishes to the In-Coming Team of WICASA 2012.

CA. Pradeep Agrawal

Chairman’s Communication

While I pen down this last message as the WICASA Chairman, I am reminded of the objectives and goals which I had undertaken while assuming the post.

My theme for the year was “Taking Learning To A New Dimension…” the theme was evolved on the concept of not only seeing new lands but seeing it with new eyes as well. New eyes filled with creativity, innovation, passion and excellence.

My prime aim was to involve maximum number of students in WICASA activities and this we have been able to accomplished by involving 4000+ students in various activities and due to the overwhelming response in participation, we were able to cross a mark of 200+ activities in the year.

Beside regular featured activities like Seminars, Lectures, Industrial Visits, New Initiatives like Revisionary Sessions, Pop –The –Question, BOS - Mock Test Series, Monthly E- Newsletter, WICASA Facebook, Vitcos Bus Facility, Celebration of Republic & Independence Day, got inspiring response, and motivating me to explore new avenues for the students.

Further, to bring out the creativity and talent in the students we held two mega events in this year. Indoor & Outdoor Sports Competition and CA Students Festival-“UDAAN 2011”

In Indoor and Outdoor sports, we introduced new games Volleyball, Billiards and Chess. And the game of cricket witnessed participation of ten teams.

The Students Youth Festival which is held at the end of every year and students very eagerly wait for this event, we tried to conduct it in an unusual manner this year. We designed the Festival based on the Theme “UDAAN 2011” symbolizing that student is like a free bird- Spreading their wings far and wide and soaring high above in the skies.

The idea was to give complete freedom of thought and independent decision making. The concept of fun- fair was developed with the objective to bring out the marketing, execution and business skill of the students also to make them aware of the real life situations.

And I am pleased that my objective has been accomplished as we got a very fine response. The two days of the festival were energetic, fun filled and full of experiences.

And while concluding this farewell message, I feel contented and satisfied that I along with my Enthusiastic Team have been able to create a room for innovation, creativity and excellence which was my motto for the year.

With this note, I conclude my last message and thank you all for your unbound support and convey my Best Wishes to the In-Coming Team of WICASA 2012.

CA. Pradeep Agrawal

Baroda Branch of WICASA of The Institute of Chartered Accountants of India

02Taking Learning to a New Dimension……..

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VOL. XII JANUARY 2012l

FORTHCOMING EVENTS

Committee meeting

Date & Day : 02.01.2012, MondayTime : 18:30 HrsSubject : Meeting with WICASA 2011

Cultural activity

Date & Day : 13.01.2012, FridayTime : 16:00 HrsSubject : Kite flying competition and festivalSpeaker : RJ Manan (Radio Mirchi)

Brain trust session

Date & Day : 18.01.2012, WednesdayTime : 18:30 HrsSubject : Direct tax - PGBPSpeaker : Moderator: CA Nirav Shah

Cultural activity

Date & Day : 26.01.2012, ThursdayTime : 09:00 HrsSubject : Flag Hoisting - Independence Day

celebration

Outdoor sports

Date & Day : 26.01.2012, ThursdayTime : 09:30 HrsSubject : Volley ball sports tournament

Cultural activity

Date & Day : 26 to 29.01.2012, Thursday to SundaySubject : Participating in IIM Ahemdabad Chaos

2012Venue : IIM Ahmedabad

ICAI Announcements

1) BoS e-Learning Module on Financial Analysis Using MS-Excel 2010 - (13-12-2011)

The Board of Studies has launched online e-Learning Module on “Financial Analysis using MS-Excel 2010” to provide Hands-On Practical Training (HoT) on use of MS-Excel 2010 for financial analysis for the benefit of students.

Welcome & Objectives

Marginal Costing Case Study (Under Updation)

Depreciation Case Study

Capital Budgeting Case Study

Income Tax Case Study – Part I

Income Tax Case Study– Part II

Cash Budgeting Case Study

EMI Case Study

Students are advised to take advantage of this online resource to facilitate greater use of MS-Excel 2010 for their financial analysis and reporting requirements. Views and suggestions to improve this facility are invited by e-mail to [email protected]

2) Self-Assessment Quiz for Common Proficiency Test (CPT) - (12-12-2011)

The Board of Studies has launched Subject Wise Online Self-Assessment Quiz for the CPT Course to enable students make a self assessment of their preparation for the forthcoming examination with 25 questions to be answered within 30 minutes. The online system would generate a new Question Paper every time the quiz is taken by the student.

CPT Self Assessment Quiz on Fundamentals of Accounting-1

CPT Self Assessment Quiz on Fundamentals of Accounting-2

CPT Self Assessment Quiz on Mercantile Laws-1

CPT Self Assessment Quiz on Mercantile Laws-2

CPT Self Assessment Quiz on General Economics-1

CPT Self Assessment Quiz on General Economics-2

CPT Self Assessment Quiz on Quantitative Aptitude-1

CPT Self Assessment Quiz on Quantitative Aptitude-2

Students are advised to take advantage of this online resource to facil itate their examination preparation in a timed environment.Views and suggestions to improve this facility are invited by e-mail to [email protected]

Contributed by Mr. Prateek Kumar Patel (PCE Student)

Internal Audit Reporting – Quality Aspects

The term Report refers to “Opinion formally expressed after investigation or consideration or collation of information.”

An audit report is the only output of the Internal Auditor’s work, which people outside the Internal Audit function get to see. It is a formal document summarizing the work done and reports the findings and recommendations. It is a means of communicating all of the auditor's work to management. The report must concisely present the total essence of the audit effort. Findings must be supported by sufficient evidence and be within the audit's scope and objectives. Each recommendation must fit the facts of the finding and materially reduce the potential risk as indicated by the facts of the finding. It is not important what an auditor believes; the important thing is what the auditor can prove. Auditor beliefs, without proper documentation will not be carried to the report.

The objective of report is to inform the facts to the management, which helps them to know that the workings at functional level are in accordance with policy formed by authorities and take corrective actions if required.

Cultural activity

Date & Day : 01.01.2012, SundayTime : 21:00 Hrs. onwardsSubject : Distribution of Blankets to needy people

Venue :ICAI Bhawan, Baroda

Study circle meeting

Date & Day : 31.01.2012, MondayTime : 18:30 HrsSubject : Direct Tax PGBP



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Value of report = Quality – cost

Audit report organization;

The results of the audit process are promoted through the audit report. Report is used to build the case and explain how and why the recommendation should be accepted. Report should identify the problem – analyze – offer solution, provide information for decision making.

Whether audit report is a formally written document or an informal one it should have the following information:

lFindings

lDescription and quantification of findings

lSuggestions and Recommendations

lDocumentation of plans and Views of auditee

Essential Attributes of a Report;

No. Report-Writing Attribute Recommended Solution

1 Objective of audit report is obvious to the reader Develop procedures requiring the establishment of report objective(s)

2 After the audit no additional investigation is Develop procedures requiring the report narrative to be needed for report writing written whenever a finding occurs

3 Impact of finding and recommendation is stated Quantify findings and recommendations

4 Recommendations are reasonable and supported Fully develop recommendations

5 Findings and requirements are accepted and acted upon Market the report findings and recommendations

The audit report must be written in a neutral tone and flawless in its accuracy, logic, clarity, grammar and spelling. It is the only output of the auditor's professional efforts, which is seen by outsiders.

The report writing process;

5 C’s – Report writing toolkit;

Condition : Statement of the issue :

What is the key point you want to communicate to your readers?

E.g. Capital expenditure of Rs. 10.8 crores for the hospital equipment upgrade project were not monitored, and time and budget overruns were not approved

Criterion : Description of What Should Be:

What is the policy, standard, principle or business practice you are evaluating?

E.g. Finance policy requires continuous monitoring by the project manager and VP approval of capital expenditure over Rs. 2 crores

Consequence : Explanation of the Significance or Impact:

What is the impact or materiality? What has gone or could go wrong as a result of the condition?

E.g. The project was over budget by 30% and the contractors paid no penalties

Cause: Explanation of What Allowed the Condition to Occur :

What is the root cause of the problem? Why was the condition not detected or corrected?

E.g. A project manager had not been appointed to manage the hospital equipment upgrade project

Corrective : Action Description of action Necessary to Correct the Condition:

What is the policy, standard, principle or business practice you are evaluating?

E.g. The Finance manager will require a VP’s written approval of all capital expenditure project plans, monthly reports and cost overruns.

The VP will appoint a project manager for each capital expenditure project

January 2012 Service Tax Payment in Form GIR7 & Excise Duty Payment for the month of December (6th in case of electronic payment,otherwise due date in 5th)

Remittance of withholding tax

Excise return (ER 1) for the month of December 2011, ER-6 Monthly Return U/R9A(3) of CCR, 2004

Contributed by :Mr. Ajay Prasad (CA Final Student)

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Filing of e-return of witholding tax for the quarter ended December 2011

VAT & CST monthly payment & filing of VAT & CST returns for the month of December.

Sta

tuto

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ESI remittance for the month of December.

Excise return (ER 1) for the quarter ended December 2011

PF monthly return for the month of December

TDS (Form 280/281)/TCS payment for the month of December.

PF payment for the month of December

Professional Tax payment for the month of December

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Report of the CA Students’ Festival – Udaan 2011 at Baroda

The Baroda branch of WICASA of WIRC of ICAI was the proud host of the CA Students’ Festival - Udaan 2011 held at Baroda as per the guidelines of the Board of Studies.

Date/Day : 23rd December, 2011;Friday

: 24th December, 2011;Saturday

Venue : Shivam Estate, Vuda Circle, Karelibuag, Baroda

Udaan was our way to convey to our dear student friends to let go of their fears, spread their wings far and wide without a care in the world and soar high above in the skies, higher than all the worldly tensions and experience the real excitement, for it is the flight which is more pleasurable than the destination itself.

This year we had organised this youth festival spread over a period of two days in order to help maximum students participate in this fun filled event. Also, apart from the regularly conducted activities over the years, this year Team Baroda WICASA 2011 brought about a revolution by organising a fun fair in this festival. This was the first time such a fair had been organised in the history of Baroda WICASA which helped the students to have fun and at the same time learn to conduct business in the practical sense.

The fun fair was organised for two days in the evening from 7:00 to 10:00 pm. The fair was kick started by the speech of WICASA Chairman, CA Pradeep Agrawal after which CA Rahul Parikh declared the event open. After the official opening the sounds of DJ filled the air and the entire drama unfolded before everyone’s eyes. The students had shown unprecedented enthusiasm in intially booking the stalls and also later on had taken pains to decorate and present their stalls in the best manner possible. Professionalism of the CA students was evident

from the way they had conceptualised their stalls – right from menu, look and decoration of stalls, variety in games, pricing and discounting stratergy, marketing stratergy till way they had dressed up. Three food stalls and one game stall were awarded the best stall as adjudged by the judges Mr. Sumesh Bakshi (c/o Flavors Restaurant) and Ms. Kavita Ratnani (c/o Chatkaaaz Restaurant) and were presented with cash prizes also.

This event was kept open for the general public as well. Hence, we received an overwhelming response of more than 7000 people spread over two days. The members of the general public as well as members of the Institute were very satisfied with the overall organisation of the event as well as the fine discipline and decorum shown by the CA students at large.

The second day began a little early at 4:00 pm wherein the CA students participated in various cultural and creative activities and showcased their inherent talents. WICASA had organised a plethora of events like, Mehendi Competition, Solo Songs, Mimicry, Tug of War, Treasure Hunt, Pani Puri Competition, etc. These was well participated and appreciated by all the students. The winners of the different events as adjudged by Ms. Alka Doshi and Ms. Nisha Bakshi were awarded with the medals.

During the event, the hand over ceremony of the Baroda WICASA 2011 to team 2012 also took place. Finally CA Pradeep Agrawal took this opportunity to thank all the dignitaries, his team, support staff, organisers and volunteer members and students for their untiring efforts.

This event has proved to be a major successul innovation of the Baroda WICASA 2011 and has helped to create a brand image of the Institute even amongst the general public.

From the editor’s desk………..

As I don the hat of the editor of WICASA e-newsletter for the last time, I realize that time indeed flies quickly. It seems just the other day when we all were declared as winners of the elections and very apprehensively took over the responsibilities. There was an air of uncertainty and at the same time a feeling of excitement to be a part of this dynamic student association of our Institute. And today, it is the concluding edition of our tenure as a part of the Baroda WICASA team of 2011. The team has given me this difficult task to put down our feelings in words. So here goes….

The journey of team Baroda WICASA 2011 has been very eventful to say the least. We have gathered pleasant and not so pleasant memories to last for a life time, created relations and friendships with students and mentors spread far and wide over the nation and have emerged as more mature, understanding and confident individuals who have the experience and assurance to handle all that life has to offer with open arms.

As we look back over the year, I’m sure we all feel proud to be a part of such an innovative committee under the chairmanship of our dear Pradeep sir who has guided us through every stumble block and has efficiently recognized and harnessed our inherent talents while at the same time ensuring that at all times team work gets its due

importance. We have, as a team managed to cross many milestones, putting huge efforts to surpass our predecessors and definitely creating a benchmark of sorts for our successors.

On a professional level, WICASA has provided us the oppor tunity to gain exposure to the happenings of the real world, handle situations and events and enhance our management skills apart from academic prowess. On a personal level, it has enhanced our public behavior, presentation skills, boost our morale and has helped us to create an identity for ourselves in this competitive scenario.

It has been a pleasure to serve you all dear student friends and we hope that you are also satisfied with our services and reciprocate the same feelings. We have tried to provide you the best of everything with the maximum input of efforts and are happy to see that we did receive a warm and positive response for each event organized by us, especially the mega events like Vibrant Gujarat summit, National Convention for CA Students – 2011 and more recently CA Students Festival – Udaan 2011.

On a concluding note, we hand over the baton of responsibility to the new Baroda WICASA: Team 2012 and wish them all the best in their endeavor to serve you all.

Also wishing you a very Happy and a Prosperous New Year!!

Ms. Anshul Bhatia



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Date Day Events Venue Atten.

03-12-2011 Saturday Pop the Question- Current Affairs 4th Round ICAI Bhawan, Baroda 20

03-12-2011 Saturday Pop the Question- Current Affairs Final Round ICAI Bhawan, Baroda 20

04-12-2011 Sunday Half Marathon - Save Girl Child Kalaghoda, Baroda 50

04-12-2011 Sunday CPT-Mock Test-Dec-11 ICAI Bhawan, Baroda 72

08-12-2011 Thursday 2nd School Level Elocution Competition-2011 ICAI Bhawan, Baroda 150

08-12-2011 Thursday Career counseling of students of various schools ICAI Bhawan, Baroda 150

09-12-2011 Friday SAP - Neccessity of today's corporate world ICAI Bhawan, Baroda 10

10-12-2011 Saturday Educational tour Champaner, World Heritage Site 60

13-12-2011 Tuesday Outdoor Sports Competition Cricket Tournament SRP Ground, Makarpura, Baroda 135

14-12-2011 Wednesday Indoor Sports Competition Polo Club, Palace Road, Baroda 100+

15-12-2011 Thursday Participation in Sadbhavna Mission Akota Stadium, Baroda 5

15-12-2011 Thursday Attitude towards Excellence ICAI Bhawan, Baroda 10

15-12-2011 Thursday Business games around us ICAI Bhawan, Baroda 10

19-12-2011 Monday WICASA- Election-2012 ICAI Bhawan, Baroda 315

24-12-2011 Saturday CA Students' Festival-2011 Shivam Party Plot, Vuda Circle, 150+Udaan Various Cultural Competitions Karelibaug, Baroda

23-12-2011& Friday & CA Students' Festival-2011 Shivam Party Plot, Vuda Circle, 7000+24-12-2011 Saturday Udaan Fun- Fair Karelibaug, BarodaD

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IMPORTANT JUDGEMENT IN DIRECT TAXES Contributed by : Ms. Priyanka Thakkar (CA Final Student)

a) Dell Products vs. State (Supreme Court, Norway)

In absence of “legal right” to bind principal, Dependent Agent is not “PE”

The assessee, a company registered in the Netherlands but resident in Ireland for tax purposes appointed Dell AS, a Norwegian company, as its “commissionaire” for sales to customers in Norway. Dell AS entered into agreements in its own name and its acts (under the commission agreement and Commission Act) did not bind the principal. The assessee claimed that it was not taxable in Norway in respect of the products sold through Dell AS on the ground that Dell AS was not its “Dependent Agent Permanent Establishment” (DAPE) under Article 5(5) of the Norway-Ireland DTAA on the ground that (a) the agent had no authority to enter into contracts “in the name of the assessee” and legally bind the assessee and (b) the agent was not a “dependent” agent. However, the income-tax department took the view that Dell AS constituted a PE under Article 5(5) of the DTAA and that 60 percent of Dell Products’ net profit on sales in Norway was attributable to the PE. This was confirmed by the Oslo District Court. On appeal by the assessee, the Court of Appeal held that for Ar ticle 5(5) of the DTAA, the question whether the agent has the authority to conclude contracts on behalf of the enterprise had to be considered, not from a literal sense whether the contracts are “in the name of the enterprise”, but from a functional sense whether the agent “in reality” binds the principal. On further appeal, HELD reversing the Court of Appeal:

Article 5(5) of the DTAA provides that “when a person, not an independent status to whom paragraph 6 applies, acting on behalf of an enterprise and has and habitually exercises in a Contracting State authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent

establishment in that State for any activities which that person undertakes for the enterprise.” There is no dispute that Dell AS is not an independent agent. The expressions “on behalf” and “have authority to conclude contracts on behalf of” in Article 5(5) mean that the contracts must be legally binding. These expressions must be given their normal meaning as per the Vienna Convention. This is also supported by the Commentary on the OECD Model Convention on which the DTAA is based. A similar view has been taken by the Conseil d’Etat of France in Zimmer (included with the Appeal Court’s order). As the language of the Article is clear, it is not possible to adopt the “functional approach” proposed by the Revenue. Consequently, Dell Products does not have permanent establishment in Norway.

3.CA students at Delhi

- Mr. Ashay Upadhyay(Best Paper - 2nd Technical Session)

- Mr. Pankaj Agrawal - Mr. Milind Joshi (1st Runner up in 3rd Technical Session)

National Convention for

CONGRATULATIONS TO PAPER PRESENTERS 1. National Convention for CA Students

at Faridabad

- Mr. Tanmay Buch - Mr. Dhruvank Parikh

2. National Convention for CA Students at Chennai

- Mr. Vishal Thakkar



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PHOTO FLASHDECEMBER 2011

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