CWA: A Better Career Option?

105 Responses to CWA: A Better Career Option?

1. Sandeep | December 30, 2010 at 6:54 pm | Reply

   Hello Anupbhai!

   A really great logical article.
   I would like to ask you following:
   I am an Engineer (B.E. civil engineering) with M.Tech. in Project Management and presently working in an EPC firm as a Project Planning & Scheduling Manager. I have about 6 years of experience in the same field. I am 31 years. I wanted to add some professional certifications further and shortlisted some courses like PMP (Project management professional), CWA etc. I was impressed with the kind of syllabus ICWAI was having. My question is:
   1. Do you feel that having CWA qualifications will help me rapidly grow in my career of Project Management (may be very senior position in large EPC firm like L&T/Siemens or something like that)
   2. Whether with CWA certification, can i go in to field of Infrastructure financing (which i have natural inclination a bit) in the firm like IL&FS/IDFC. What are the chances of going in these kind of field?
   3. Overall, do u feel that CWA will be very different qualifications to mykind of profile and i should look forward to another qualifications/certifications OR do u feel it will be most complementary certification to my kind of profile??

   Awaiting your reply before i take my final call.

   Regards

   Awaiting your frank and neutral reply.

   • Anup Mukherjee | December 30, 2010 at 7:52 pm | Reply

     To your questions – Yes, Yes and Yes. Corporates as such have very few people who are professionally qualified in areas of engineering and accounting. A CWA qualification would definitely be a plus to your profile and help you in a rapid professional growth.

     However, in area of financing, in terms of qualification (as well as recruitment), the preference is usually BE + MBA (Finance) – largely from IIM. Apart from IIMs, other MBAs dont stand a chance in front of a statutory qualification like CWA.

     A CWA in an organisaiton is like a ‘heavy weight’ in charge of control functions – planning, disbursements etc.

     I would suggest, since you have an MTech in Project Mngt, and interested in CWA – its better to have a strategy of focus rather than diversification. Have focus on Project Management rather than Infrastructure Finance – at least initially.

     Also, you can get exemption from practical training, as Project Management is one of the recognised areas of training for CWA. Read point (6) of http://www.icwai.org/icwai/students-faq-trg.asp And also unlike MBA you would not have to leave job for doing the course.

     However I must add a word of caution – these statutory courses like CWA (CA and CS) at times become pretty tedious partly because one has to be self motivated, and partly because they are not easy – as is usually thought from outside. So you should be prepared to slog it out for three to four years.

     GoodLuck

     • Sandeep | December 30, 2010 at 9:00 pm | Reply

       Hi Anupbhai!

       Thanks a ton for your guidance. I would definetly try to apply the strategy of focus. Would like to know if you have seen ICWA graduates with engineering background in EPC Project Management field. If yes, can u tell what kind of positions/profiles they are involved in?

       Thanks again,
       Regards.

       • Anup Mukherjee | December 30, 2010 at 11:20 pm | Reply

         Never met them. But did hear about such people working at GM / Director levels during audits in Steel sector companies

2. Manoj | December 30, 2010 at 8:58 pm | Reply

   Hi Mr. Anup !
   Thanks a lot for providing such a rare guidance, which others know in a hard way.

   I am confused about following facts:
   1. What is the passing criteria for ICWA exam? Does it have absolute passing marks or it is based on predecided number of students (percentile)
   2. What is the average number of student appearing in the exam and passing the exam for the intermediate and for final?
   3. If by chance one can not clear one/two subject out of the group of intermediate can he get admission in final or he has to first clear all the subject of intermediate and than only appear for final?
   4. If one can not clear one/two papers of intermediate/final does he have to take all the subjects exam again or only not cleared one?

   Pl. guide as early as possible.

   Thanks.

   • Anup Mukherjee | December 30, 2010 at 11:31 pm | Reply

     There is no percentile system. And there is no ATKT system – so one has to clear each level before getting admission to the next level.

     As far as I know, if one gets 60 marks or more in particular paper s/he is exempted from that paper.

3. Sandeep | February 4, 2011 at 8:56 pm | Reply

   Hi Anup,

   As you advised, I have taken up the decision to go for ICWA.
   As you know, I am Engineer with about 6 years of experience in Project Management field, I still want you to give me one more clarity, regarding Post ICWA what can be my career alternatives.
   And also I am not very sure how my previous experience of let say 8 years (after ICWA) will be counted / of use professionally. What sort of companies and positioin i can expect after ICWA?
   Looking forward to your detailed response pls.
   Regards

   • Anup Mukherjee | February 5, 2011 at 5:20 pm | Reply

     Hi. Firstly, when you enrol for CWA, that means that you have decided to make a clear shift in career from engineering to finance / accounts / cost management. Only then taking up the CWA would make sense.

     Secondly, as for the opportunities – its a vast field. Just some scenarios:

     1) Planning & financial control of Projects

     2) Financial Controller in manufacturing sector like capital goods – in fact CWA is no more just a manufacturing thing – but has work in any sector where there are lots of cost and pricing calculations – so it can be competitive sectors like Telecom or even areas like International Trade (because you would know engg, accounts & tax)

     3) Project evaluation division in the banking / financial institution
     etc.

     For detailed job profile, I would suggest you post query at:
     http://cmaindia.informe.com/forum/

     And for ‘mkt research’ purpose, you can put in dummy profile on couple of job portals to see the response

4. Nilesh Gaykar | February 7, 2011 at 10:13 pm | Reply

   Hi Sir,
   I have completed my PGDBM in finance from AICTE it was Full time collage in mumbai..then i join one IT company there i am working as Executive Accounts and financial services from last few months i want to know that i want higher position in mnc like finance manager or in middle management so after completing CWA course (Degree) will i get this Exposure? also i get job in budgeting or finance analysis…
   Waiting For Your Reply…

   • Anup Mukherjee | February 8, 2011 at 9:12 am | Reply

     Yes. In industry CWA has a better scope than MBA. MBAs have a better utility in the financial sector – but not really in the non financial sector. Moreover MBAs dont have the training in various compliance / tax / ethical issues involving business. If you have CWA you will have much better scope compared to non IIM MBA. Even in the non financial sectors in the Finance dept its the CAs and CWAs who dominate. Even the IIM MBAs are hard to find in such sectors

5. Nilesh | February 8, 2011 at 8:56 pm | Reply

   Thank You Anup Sir for for Your Valuable Feedback…

   Sir I want to discuss more things in detail with you that i have done my financial modeling course from national stock exchange and Passed with “A” Grade. course include making equity Research Report by doing fundamental analysis on companies.. but problem is that wherever i applied they ask for same experience in Research field this is one part and i am confused that whether to persue CFA or CWA because my area of interest is Financial Analysis and Research in finance. also i have 4 month of experience in Equity Dealer in anand Rathi..
   so Please give me good Direction so that i can success in my career because i have ability to complete any of the course ..

   i am waiting for your valuable feed back as it will change my life…

   Thanks a lot sir,

   • Anup Mukherjee | February 9, 2011 at 8:41 am | Reply

     If your PGDBM was two years, and you have done all these courses relating to stock exchange, then I would suggest dont waste time in doing any other course – but do the related work. You can do work relating to (equity) research in any of the stock broking houses or financial consultancies or even in the business newspapers / magazines

     The financial market is a big and diverse area – and you have to decide which kind of work you would like to do. If at all you want to do a course, then try for MBA from IIM – because that would be the one that would push you in this area in the best possible way – alternately I wont recommend any other course – but only recommend job experience

6. Amit | February 22, 2011 at 3:35 pm | Reply

   Dear Anup,
   Thanks for such an insight and much needed support for people like me who are trying to make a career change from pure technical to financial engineering.

   In my case, i opted for CWA as i have ~5 years work experience in manufacturing sector and i think CWA qualification would be the best as Financials in manufacturing sector are completely different than Banking, Insurance sectors. Combine that with my technical qualification.

   Please correct me on that.
   Also please guide me on possible portfolios/Positions i should target (Except for the post of MD as of now!!!!) after completing CWA.

   Thanks & Regards
   Amit

7. charanteja.nsr | February 24, 2011 at 9:07 pm | Reply

   hi sir, this is charan recently qualified cwa . Iam interested in joining CIMA so please help me whether it is a right move or not Because I dont have any degree (Bcom…) . My friend said for getting job degree is compulsary for this reason i want to study further … If you suggest CIMA let me tell the tution providers list …
   thaking you.

   • Anup Mukherjee | February 24, 2011 at 9:24 pm | Reply

     In CA now a days one does not need to have university degree to enroll as member – I am not updated on this matter w.r.t CWA

     Also, in private corporate sector that should not be a handicap. However job in Govt /PSU may require university degree

     As to your doing CIMA, I would say first get some job experience – say two /three years – and then decide if you see any benefit in going for an additional course or if CIMA would lead to better career progression. Only then take up such course.

8. Puneet Sharma | July 18, 2011 at 3:03 pm | Reply

   Dear Sir

   I have done my B.com in Year 2004 & working as Sr. Finance Exe in reputated company with 5 year of industry exp. I would like to draw my career in Accountancy field. Please advice CWA course will be suitable for me in & also do I need to undergo with articleship for CWA

   • Anup Mukherjee | July 18, 2011 at 3:44 pm | Reply

     As you are already working in the finance /accounts department of a company for so many years, you should get exemption based on past experience. Plz read the post / previous comments for the link to icwai webpage relating to conditions for exemption

9. Nilesh G. | July 19, 2011 at 12:37 am | Reply

   Hi Anup Sir,
   I am Currently working in BPO handling Indirect Taxation like VAT/WCT making Payment and Return. i have completed my PGDBM in finance based on that i am working here from last 6month.
   my question is- if i took admission for ICWA will it will help me in my future with current experience?
   also will i get good position after 2-3 years along with experience and Degree of ICWA and PGDBM (finance)?
   because i am working in BPO and our client is Telecom Sector Company so i well versed with Account payable Process and its taxation.Please suggest…

   • Anup Mukherjee | July 19, 2011 at 7:06 am | Reply

     Now that you are working in the field of compliance, definitely CWA would help to enhance your career – provided you stick to this area. Infact, in my opinion, if you even clear the intermediate of CWA, with you current area of work, you can well move into the mainstream Companies.

     Also, read about the exemption part in previous comment: http://indiapoint.net/ca/2009/04/21/cwa-a-better-career-option/comment-page-1/#comment-635

     Good Luck

10. Sandip Kr. Das | July 19, 2011 at 9:23 am | Reply

    1. What is the legal authority of the Companies (Cost Accounting Records) Rules 2011?

    Central Government, in exercise of the powers conferred by clause (b) of sub-section
    (1) of section 642 read with clause (d) of section 209 of the Companies Act, 1956 (1 of
    1956), has notified Companies (Cost Accounting Records) Rules 2011.

    2. What is the effective date from which Companies (Cost Accounting Records) Rules
    2011 come into force?

    The Companies (Cost Accounting Records) Rules, 2011 have been published vide
    G.S.R. 429(E) dated 3rd June, 2011. As per sub-rule (2) of Rule 1, these rules have
    come into force on the date of publication in the Official Gazette.

    3. What is the status of the 44 Cost Accounting Records Rules issued till the date of
    issue of Companies (Cost Accounting Records) Rules 2011 and what is its
    applicability?

    The Companies (Cost Accounting Records) Rules 2011 has superseded 36 cost
    accounting record rules [refer Annexure 1 of this FAQ].
    The said Rules are applicable to all companies engaged in production, processing,
    manufacturing and mining activities as defined under Rules 2(j), 2(k), 2(l) or 2(o)
    respectively and where:

    a) the aggregate value of net worth as on the last date of the immediately preceding
    financial year exceeds five crores of rupees; or
    b) the aggregate value of the turnover made by the company from sale or supply of
    all products or activities during the immediately preceding financial year exceeds
    twenty crores of rupees; or
    c) the company’s equity or debt securities are listed or are in the process of listing
    on any stock exchange, whether in India or outside India.

    Any company meeting the above criteria would be required to maintain cost
    accounting records and file a Compliance Report in the prescribed format from
    financial year commencing on and from 1st April 2011.
    These Rules are not applicable to a company which is a body corporate governed by a
    Special Act.
    Further, the Companies (Cost Accounting Records) Rules 2011 is not applicable to
    activities or products covered in any of the following rules:

    (a) Cost Accounting Records (Bulk Drugs) Rules, 1974
    (b) Cost Accounting Records (Formulations) Rules, 1988
    (c) Cost Accounting Records (Fertilizers) Rules, 1993
    (d) Cost Accounting Records (Sugar) Rules, 1997
    (e) Cost Accounting Records (Industrial Alcohol) Rules, 1997
    (f) Cost Accounting Records (Electricity Industry) Rules, 2001

    (g) Cost Accounting Records (Petroleum Industry) Rules, 2002
    (h) Cost Accounting Records (Telecommunications) Rules, 2002

    In case a company is engaged in activities, in addition to the activities covered by the
    above 8 Rules, such activities shall be covered under the Companies (Cost Accounting
    Records) Rules 2011.

    4. The Companies (Cost Accounting Records) Rules 2011 have not prescribed any
    specific formats for the cost statements. In what manner and format would the cost
    statements be kept under these Rules?

    As per sub rule (2) of Rule 4, the companies are required to maintain cost records on
    regular basis in such manner so as to make it possible to calculate per unit cost of
    production or cost of operations, cost of sales and margin for each of its products and
    activities for every financial year on monthly/quarterly/half-yearly/annual basis. The
    cost statements are to be prepared for every unit and every product produced,
    processed, manufactured or mined.
    As per sub rule (3), the cost records are to be maintained in accordance with the
    generally accepted cost accounting principles and cost accounting standards issued
    by the Institute; to the extent these are found to be relevant and applicable.
    These Rules have not prescribed any specific formats for the cost statement. A
    guidance note on the subject is under preparation by ICWAI, inter alia, containing
    model formats for cost records, statements, schedules etc.

    5. What does turnover mean under these Rules? Is gross turnover Inclusive of excise
    duty?

    As per Rule 2(p), “Turnover” means gross turnover made by the company from the
    sale or supply of all products or services during the financial year. It includes any
    turnover from job work or loan license operations but does not include any non-
    operational income.
    From a reading of the Rules, it appears that the word “Gross” denotes “total”. Hence,
    the “Turnover” under these Rules would exclude duties and taxes.

    6. Who can authenticate the Compliance Report as per the Companies (Cost
    Accounting Records) Rules 2011?

    As per Rule 5, the Compliance Report and annexure thereto is required to be certified
    by a “cost accountant” as defined under Rule 2(c).
    As per Rule 7, the annexure to the Compliance Report is to be duly approved by the
    Board of Directors.
    A “cost accountant” within the definition of these Rules does not include:

    a) A member holding a part-time certificate of practice; or

    b) A member who is in full time employment whose membership fees are in arrears;
    c) A member of ICWAI who has been admitted as a member through reciprocal
    arrangement of membership by virtue of being a member of Institute of
    Management Accountants USA.
    7. Will companies engaged in the eight (8) products/activities, which have been
    excluded from the purview under Rule 3(a) to 3(h) of Companies (Cost Accounting
    Records) Rules 2011, be required to file Compliance Report?

    Companies engaged in activities or products to which the cost accounting records
    rules listed under Rule 3(a) to 3(h) apply will not be required to file a Compliance
    Report until these Rules are amended.
    However, if the concerned company is also engaged in other activities covered under
    the Companies (Cost Accounting Records) Rules 2011, in that case the company
    would be required to file a Compliance Report.

    8. Is there any ceiling on the number of Compliance Reports which can be
    authenticated by a practicing cost accountant or a cost accountant in permanent
    employment of the company?

    There is no ceiling on the number of Compliance Reports that can be authenticated
    by a cost accountant in whole-time practice. A cost accountant working as permanent
    employee can authenticate the Compliance Report of the company where he is
    employed provided his membership dues are not in arrears. He cannot authenticate
    Compliance Report of any other company even under the same group.

    9. Can a cost accountant who is working as permanent employee of a company and
    responsible for maintenance of cost records therein authenticate Compliance
    Report of the same company?

    Yes.

    10. Can a cost accountant who has been appointed as cost auditor of the company
    authenticate the Compliance Report of that company?

    Yes.

    11. What constitutes the cost records under Rule 2(e)? Whether the format of
    “Abridged Cost statement” prescribed in the Companies (Cost Audit Report) Rules,
    2011 can be considered as a sample cost statement?

    Books of account and other records relating to utilization of materials, labour and
    other items of cost that provides data/information to compute the cost of
    production, cost of sales and margin of each of the products/activities of the
    company on monthly/quarterly/half-yearly/annual basis are considered part of the
    cost records. It includes statistical, quantitative and other records which enable the
    company to exercise, as far as possible, control over the various operations and costs
    with a view to achieve optimum economies in utilization of resources. Cost records

    are required to be maintained on continuous basis from the basic stage of inputs to
    the final output.
    There cannot be any exhaustive list of cost records. This would depend on the
    materiality of cost components in the cost of the product/activity.
    The abridged cost statement can be used as a sample cost statement. This may be
    modified according to the need of the company.

    12. Whether production, processing, manufacturing or mining involving manual
    operation, without the use of power will be also covered under these Rules?

    Yes. The definition of product in Rule 2(m) includes manual operation as well.
    Therefore, any production, processing, manufacturing or mining activity – whether by
    use of power or not – are included for the purposes of these Rules.

    13. Whether product manufactured for 100% captive / self consumption shall be
    covered under the Companies (Cost Accounting Records) Rules 2011?

    The test of inclusion under the Rules is whether it is a production, processing,
    manufacturing or mining activity resulting in a product [for definition of “product”
    refer to Rule 2(m)] intended for use, consumption, sale, transport, store, delivery or
    disposal and whether the company carrying out the activity falls within the criteria
    mentioned under Rule 3(1). If the company meets requirement of Rule 3(1), the
    activity – whether or not for captive/self consumption – will come under the ambit of
    these Rules.

    14. Will the companies subject to cost audit be also required to file Compliance Report
    under these Rules?

    Every company covered under Companies (Cost Accounting Records) Rules 2011 is
    required to file a Compliance Report irrespective of whether all or any of its products
    are covered under cost audit. Thus the Compliance Report shall include product
    groups covered under cost audit as well as product groups not covered under cost
    audit.

    15. Whether the Compliance Report is to be prepared for the ‘company as a whole’.

    Yes, the Compliance Report is to be prepared for the ‘company as a whole’ under
    different product groups.

    16. A company with multiple product range is having cost audit for some of its
    products. What would be the applicability of cost audit on other products now
    covered under Companies (Cost Accounting Records) Rules 2011?

    The status of the company so far as applicability of cost audit is concerned will remain
    unchanged until cost audit orders are issued for its other products/activities now
    covered under Companies (Cost Accounting Records) Rules 2011. The company would

    now be required to maintain cost records for all the products/activities irrespective of
    whether these are under cost audit or not and also file a Compliance Report.

    17. Is it necessary to first prepare “unit wise” and “product/activity-wise” cost
    statements and then merge into product group-wise cost statement for the
    company as a whole?

    It is mandatory to prepare unit-wise and product/activity-wise cost statements as per
    the Companies (Cost Accounting Records) Rules 2011. For Compliance Certificate
    purposes, no cost statement is required to be submitted.
    However, if any or all the products/activities of the company is also covered under
    Cost Audit, then for the purposes of submission of Cost Audit Report under the
    Companies (Cost Audit Report) Rules 2011, a consolidated cost statement for the
    product group(s) under cost audit is required to be prepared.