Institute of Cost Accountants of India

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Institute of Cost Accountants of India
File:ICMAI Logo.png
Abbreviation	ICMAI
Formation	28 May 1959; 65 years ago (1959-05-28)
Legal status	Active
Headquarters	CMA Bhawan, 12 Sudder Street, Kolkata – 700016 India Kolkata, India
Coordinates	22°33′29″N 88°21′13″E / 22.558103°N 88.353672°E / 22.558103; 88.353672
Region	India
Members	90000+
President	CMA Vijendra Sharma
Vice President	CMA Rakesh Bhalla
Secretery	CMA Kaushik Banerjee
Parent organization	Ministry of Corporate Affairs, Government of India
Students	6,80,000 (Approx)
Website	www.icmai.in
Formerly called	The Institute of Cost & Works Accountants of India

The Institute of Cost Accountants of India (ICMAI), which was previously known as The Institute of Cost & Works Accountants of India (ICWAI) is a professional accountancy body in India under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 28 May 1959 as a statutory body under the The Cost and Works Accountants Act, 1959 enacted by the Parliament for regulation of the profession of Cost and Works Accountants in India. It has as its prime responsibility (by the Ministry of Corporate Affairs) to contribute to the Cost and Management Accounting profession at the global level. It is the largest CMA body in Asia and 2nd largest in the World.

In India, Cost Accounting Standards are issued and developed by the Cost Accounting Standards Board (CASB) constituted by ICMAI with the objective of formulating the Cost Accounting Standards. Similarly, Standards on Cost Auditing are issued the Cost Auditing and Assurance Standards Board (CAASB) constituted by the Institute with the responsibility to formulate standards and develop guidance notes in the areas of auditing, assurance, related services and quality control. The other reputed accounting research bodies in India are Institute of Chartered Accountants of India, University of Delhi, University of Calicut and University of Mumbai.

Members of the Institute are known as Cost and Management Accountants (CMAs) or Cost Accountants (either Fellow or Associate). CMAs are subject to a published Code of Ethics and professional standards, violation of which is subject to disciplinary action. Only a member of ICMAI can be appointed as cost auditor of a company under the Companies Act, 2013. The management of the Institute is vested with its council with the president acting as its Chief Executive Authority. A person can become a member of ICMAI and become a cost auditor of Indian Companies. The professional membership organization is known for its non-profit service. ICMAI has entered into mutual recognition agreements with other professional accounting bodies worldwide for reciprocal membership recognition. ICMAI is one of the founding members of the International Federation of Accountants (IFAC), South Asian Federation of Accountants (SAFA), and Confederation of Asian and Pacific Accountants (CAPA).

The Institute of Cost Accountants of India was established under the Cost and Works Accountants Act, 1959 passed by the Parliament of India with the objective of regulating the profession of Cost and Works Accountants in India. It prescribes the qualifications for a Cost and Management Accountant and conducts the requisite examinations and grants Certificate of Practice.

History

The Institute of Cost Accountants of India was first formed as a registered limited company on 14 June 1944 as per the provisions of the Companies Act of 1913. Post Independence, the Institute got statutory recognition when the Parliament of India enacted "The Cost and Works Accountants Act, 1959" (Act No.23rd of 1959), a special act, on 28 May 1959 to accord statutory recognition to ICMAI (previously ICWAI) as an autonomous professional Institute.

It has since been continuously contributing to the growth of the industrial and economic climate of the country. The Institute of Cost Accountants of India is the only recognized statutory professional organization and licensing body in India specializing exclusively in Cost and Management Accountancy. The head office is situated in Kolkata and operates through four regional councils are Kolkata, Chennai, Delhi and Mumbai as well as through a number of important chapters situated elsewhere in India and abroad. As of now, there are more than 90,000 active members of ICMAI.

The CWA Amendment Bill of 2011 was passed by both the Houses of Indian Parliament. Lok Sabha and the Rajya Sabha on 12 December 2011 and assented by the president of India on 12 January 2012. The changes were published in the Official Gazette of India on 13 January 2012.

Motto, Vision and Mission

The motto of the ICMAI is "Asato mā sadgamaya, tamasomā jyotir gamaya, mrityormāamritam gamaya, Oṁ śhānti śhānti śhāntiḥ" (Sanskrit), which literally means "From ignorance, lead me to truth; From darkness, lead me to light; From death, lead me to immortality; Peace, Peace, Peace". It is a quotation from the Upanishads (Brihadaranyaka Upanishad). An extract of the verses are also present on the Institute's emblem with the figure of an illuminated earthen lamp which seems perfectly synced with first line of its motto. ICMAI also has a separate logo for exclusive use by its members.

ICMAI in its prospectus puts its Vision Statement as "The Institute of Cost Accountants of India would be the preferred source of resources and professionals for the financial leadership of enterprises globally."

The Mission Statement of ICMAI as per the prospectus is "The CMA Professionals would ethically drive enterprises globally by creating value to stakeholders in the socio-economic context through competencies drawn from the integration of strategy, management and accounting."

International affiliations

The ICMAI is a Founding Member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA). ICMAI is a member of the National Foundation of Corporate Governance (NFCG).

Apart from the above, the Institute is also a member of the National Foundation for Corporate Governance (NFCG), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII) and The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Membership

Members of the Institute are known as Cost and Management Accountants. Becoming a member requires passing the prescribed examinations, 36 months of practical training and meeting other requirements under the Act and Regulations. The Institute has more than 90,000 members currently.

Associates and fellows

Generally, associates are members of the Institute with less than five years of membership after which they become entitled to apply for being a fellow member. Some associate members, particularly those not in practice, often voluntarily chose not to apply to be a fellow due to a variety of reasons.

An associate member who has been in continuous practice in India or has worked for a commercial or government organization for at least five years and meets other conditions as prescribed can apply to the Institute to get designated as a "Fellow". Responsibilities and voting rights of both types of members remain the same but only fellows can be elected to the council and regional councils of ICMAI. Fellows are perceived as enjoying a higher status due to their long professional experience.

Practicing Cost Accountants

Any member wanting to engage in public practice has to first apply for and obtain a Certificate of Practice (COP) from the Council of ICMAI. Only members holding a Practicing Certificate may act as cost auditors of Indian companies.

In India, an individual Accountant, a firm or a Limited Liability Partnership of Accountants can practice the profession of Accountancy.

Companies in India cannot practice profession of accountancy.

Role of Cost and Management Accountants

Cost and Management Accountants work in all fields of business and finance, including taxation, financial reporting and management, strategic management and auditing. CMAs also aim to strengthen the manufacturing and service sector by providing values like cost effectiveness, cost reduction techniques, resource management and Budget & MIS etc.

Job roles of CMAs include Financial Planning and Analysis, Cost Management, Financial Reporting, Strategic Planning, Risk Management, etc. CMAs are considered fit for Financial Accounting, Cost Accounting as well as Management Accounting, the latter two being their domain of expertise. Some CMAs are engaged in public practice work, others work in the private sector and some are employed by government bodies.

Council of the Institute

The management of the affairs of the Institute is undertaken by a council constituted under the Cost and Works Accountants Act, 1959. The council consists of 15 elected fellow members and up to 5 members nominated by the Government of India. The elected members of the council are elected under the single transferable vote system by the members of the Institute. The council is re-elected every four years. The council elects two of its members to be president and vice-president who hold office for one year. The president is the chief executive authority of the council.

Network of the Institute

The network of the Institute consists of Regional Offices, Chapters, Centers for Excellence, Overseas Center and CMA Support Centres.

The Institute currently has 4 Regional Offices in Mumbai, Delhi, Kolkata and Chennai, 11 Overseas Centers, 53 CMA Support Centres and a Centre For Excellence at Hyderabad.

Regions and Chapters

Eastern Region Chapters (Regional Office Kolkata)

Northern Region Chapters (Regional Office Delhi)

Southern Region Chapters (Regional Office Chennai)

Western Region Chapters (Regional Office Mumbai)

Overseas Centers

The Institute currently has 11 overseas centers at Bahrain, Botswana, Canada, Dubai, London, Muscat, Nepal, Singapore, Tanzania, Washington and Zambia.

CMA Support Centers

The Institute has setup CMA Support Centers in order to promote and support the academic courses of the Institute in their location and provide assistance to students seeking admission. The Institute currently has 53 CMA Support Centers in various states in India with the most of them present in Southern Region.

Qualification

A person is eligible to apply for membership of ICMAI upon completion of all the three levels (Foundation, Intermediate, and Final) of examinations and three years of practical training in areas like Management Accounting, Cost Accounting, Financial Accounting, Taxation, Cost audits, GST audits, Internal audit, Corporate laws, etc. and enables an individual to become a Cost & Management Accountant (CMA).

Syllabus

The Institute has introduced new Syllabus 2022 which fulfills the requirements of the New Education Policy, 2020 and has increased the level of skill development and improved Course Learning objectives.
The old syllabus was introduced in August 2016 following the International Education Guidelines (IEG) of IFAC to get the advantages in the process of Mutual Recognition Agreement (MRA) among different member countries of the world under GATS in WTO.
Subjects for examinations include Corporate Financial Reporting, Management Accounting, Financial Accounting, Strategic Management, Taxation, Corporate Law, Financial Management, Business Valuation, Cost & Management Audit, and Operations Management, etc.
Students who have passed the degree examination of any recognized university or equivalent are eligible for admission directly to the Intermediate Level.
Paper-wise exemptions on the basis of reciprocal arrangement are available to students who have passed Institute of Company Secretaries of India Final Examinations.
Examinations are held twice a year, in June and December, in various examination centers in India and overseas centers. The results are declared in August and February for the June term and December term exams respectively.

Examination

Entry to the profession can be made by taking the CMA Foundation Course after completion of schooling (12th grade). Alternatively, candidates may get admission directly into Intermediate Course on completion of graduation or after completion of Intermediate of Chartered Accountant or Company Secretary. A comprehensive 140 hours of Skills Training including SAP FICO, Microsoft Office, e-Filing and Soft Skills training by Cambridge University have to be completed before appearing for both or remaining groups of Intermediate. Paper-wise exemptions on the basis of reciprocal arrangement are available to students who have passed Institute of Company Secretaries of India Final Examinations.

The first level of examination i.e., Foundation level is MCQ-based with 4 papers while the latter two levels being a mix of objective and subjective exams with 8 papers in each. Intermediate and Final level exams can be given either as complete 8 papers or in two groups of 4 papers each. A candidate needs to score at least 40% marks in each paper and 50% in aggregate in order to pass the level or group. Examinations are held twice a year, in June and December, in various examination centers in India and overseas centers. The results are declared in August and February for the June term and December term exams respectively.

ICMAI has entered into an agreement with Indira Gandhi National Open University (IGNOU), to help CMA students acquire a Bachelor's Degree and Master's Degree by writing four papers for each. A Bachelor's Degree in Commerce (B.Com) with major in Financial & Cost Accounting and Master's Degree in Management Accounting & Financial Strategies can be obtained from IGNOU provided the student is able to pass the term end examination conducted by IGNOU. This initiative has helped a lot of students attain both the degrees without any duplication of subjects and credits.

ICMAI offers study materials and describes the syllabus in great detail via a prospectus. While ICMAI claims that this study material on the website is sufficient for motivated students to study, most students opt to attend oral coaching classes or learn from e-learning portals.

Notable alumni

Mrityunjay Athreya, Padma Bhushan, Management Advisor
Subhash Chandra Garg, Finance Secretary, Government of India
Chanda Kochhar, former CEO, ICICI Bank
J Ramachandran, Professor, IIMB
P. K. Mukherjee, Executive Director of Sesa Sterlite Limited
Samir Bhatia, Entrepreneur
Kailasam Raghavendra Rao, Entrepreneur
B. B. Chakrabarti, Professor
G. J. R. Krishnan, Musician
Sanjay Subrahmanyam
T. V. Somanathan, Finance Secretary, Government of India
Sadanand Date, IPS, Government of India

References

ICMAI Official Notification for adoption of acronym 'ICMAI'.
"ICWAI Act on MCA website" (PDF). Retrieved 30 July 2012.
Official Gazette ICWAI to ICMAI
ICMAI Official Prospectus
"Founding Members of IFAC in 1977". Ifac.org. Retrieved 30 July 2012.
"India". CAPA. Archived from the original on 15 September 2012. Retrieved 30 July 2012.
"SAFA Member Institutions". SAFA. Archived from the original on 9 October 2011. Retrieved 30 July 2012.
Seemant Ahlawat (1 October 2003). "Stakeholder in NFCG". Nfcgindia.org. Retrieved 30 July 2012.
List of Chapters as displayed on ICMAI website.
Overseas Centers listed on ICMAI website.
CMA Support Centres listed on ICMAI website.
Present Syllabus of ICMAI
new practical training scheme
"Studies".
"Welcome to the Institute of Cost Accountants of India Website ::Students | Exemptions | for Various Qualification". Archived from the original on 25 April 2013. Retrieved 25 April 2013.
ICMAI Examination
"Archived copy". Archived from the original on 26 August 2018. Retrieved 11 November 2019.{{cite web}}: CS1 maint: archived copy as title (link)

v t e IFAC Member Bodies and Associates
Asia	IICA ICAI ICMAI (formerly ICWAI) ICAN ICASL ICMASL ICAB ICMAB ICMAP ICAP ICPAI PIPFA MIA CICPA HKICPA ISCA PICPA IUAA IAI JICPA
Africa	LICPA ICAG ICPAK ICAN ICAN ICASL ONECCA SAICA SAIPA NBAA OECT ICPAU ICAZ
Europe	AAT ACCA CA Ireland CPA Ireland CIMA CIPFA ICAEW ICAS IDW IEKA IFA OEC KWT
Americas	AICPA CMA USA BICA CPA Canada CISPA ICAB ICAG ICAJ ICATT
Oceania	CA ANZ CPA Australia IPA

v t e Professional Regulators in India
Academics	National Council for Teacher Education (Teachers)
Architecture and Planning	Council of Architecture (Architects)
Banking, Finance and Management	Institute of Actuaries of India (Actuaries) Indian Institute of Banking and Finance (Banking) Institute of Chartered Accountants of India (Chartered Accountants) Institute of Company Secretaries of India (Company Secretaries) Institute of Cost Accountants of India (Cost Accountants)
Engineering and Technology	All India Council for Technical Education Engineering Council of India
Healthcare	Dental Council of India (Dentists) National Medical Commission (Physicians) National Commission for Allied and Healthcare Professions Paramedics Allied health professions Indian Nursing Council (Nurses) Pharmacy Council of India (Pharmacy) Central Council of Homoeopathy (Homoeopathy)
Other Professionals	Veterinary Council of India (Veterinary)

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