How to study CA (Chartered Accountant) Examination?

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Here is some useful tips while studying Chartered Accountants Examination.
 CA degree is not hard but you have to take efforts according to that.
1. In every subject, there are some critical questions which we cannot remember its answers particularly theory subjects like IT, ISCA, Law, Audit or SFM theory etc.

Tip : 
a. If you find such a questions then take xerox copy of same pages from that book and you will find total 20 to 25 pages per subject. Then, while at the time of every revision when you will reach such question in book, please read the same question from that xerox copy. Hence, in exam hall when questions from that theory comes then you will automatically remember only these xerox pages. 

b. One more tip for this problem : Select  one common place for such type of questions for e.g. if you daily study in your bedroom, then read such a critical questions on your terrace and at the time of every revision read such type of question on your terrace only.

2. Everyone finds difficulty in remembering some definition, some important sections or some important sentences. 
Tip : If you find such a difficulty, my suggestion is……
Whenever you will think that I have to remember this definitions or sections then wherever you will find such a definitions or sections in book then pickup some 50 to 60 pages of the same book from that page and write the same definition on header of the page no. 50 or 60.
With the help of this, when you will come on page no. 50 or 60 then automatically  you will once again read and remember these definitions or sections.

3. In practical subject like SFM, Costing we have to remember formulae without which we cannot solve problems and also for remembering Sections.
Tip :
a. In practical subjects, you will find at least four or five chapters which contains important formulae. In my opinion write all five chapters formulae on five blank pages and staple it. While solving problems see formulae from that pages only and paste it on wall wherever you daily study.
b. And also whenever you will become boring or at every night after completion of your study review these pages.
c. And you can also ask one another while going outside or while chatting with your friends for e.g. what is AS 9, what is Section 274 etc.
d. Same tip you can follow for remembering Sections, AS and SAs.

4. For practical subjects like Accounts, Costing, SFM following practices you have do :
In my opinion, for practical subjects PRACTICE IS MUST.
a. Every Practical subject’s chapter contains 50 to 60 problems then while at the time of every revision you have to solve all these problems without seeing. First solve all problems from tuition notes without seeing and from Practice Manual of ICAI and then if you use any other author book then solve some unsolved problems from it.
Solving from Practice Manual is must. (Purchase dot matrix print pages from outside and solve on it)

Suggestion is that….
  Any type of Success will never come without struggle, So you have to take so much efforts for achieving such type of course like Study daily minimum 11 hours. I am talking about net 11 hours (i.e. only study hours).
  Keep your daily schedule fixed for e.g time of breakfast, time of lunch and time of taking break.
  Make Plan for study : For next 5 to 6 days you should make a plan
  Following you have to do :
Keep your mobile in switched off mode for 2 months.
Don’t recharge for net package.
Meet friends only for some queries.
  Everyone study daily 2 or 3 subjects but my way is that I had studied one subject for all four or five days and after completion of that only I used to study another subject. And for this purpose you have to plan accordingly and according to that plan only you must complete particular subject.
             For e.g.  From 1 to 6 march   -  Accounts
                            From 7 to 10 march  -  Law
                            From 11 to 15 march – SFM 
                            From 16 to 20 march     - Audit


Budget 2015-16 Changes in Service Tax on Goods Transport Agency (GTA)

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Budget 2015 has a few amendments with respect to existing exemptions and abatements. Entry no.21 of item (d) of mega exemption notification no.25/2012 has been amended to restrict the scope of exemption on GTA services. The details are as follows:

SI. No.Exemption given upto 31.03.2015Exemption from 1st April 2015
1Foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beveragesMilk, salt and food grain including flours, pulses and rice

By amending the above entry, exemption has been restricted only for Milk, Salt and food grain including flours, pulses and rice transported. For other goods like food stuff, tea, coffee, jaggery, sugar, milk products, edible oil and alcoholic beverages no exemption would be available. When such goods are transported, the same would be liable for service tax after availing the abatement under Notification no.26/2012-ST in the hands of service recipient or provider as the case may be.
Apart from this, amendment has been made to entry no.7 of Notification No.26/2012 wherein the abatement has been reduced to 70% from 75% resulting in increase of liability of service tax from 25% to 30% of the service value. This change is effective from 01st April 2015.
Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport is exempt from service tax vide notification No. 31/12-ST dated 20.6.2012. Scope of this exemption is also widened to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station.This change is effective from 01st April 2015.


How to Prepare and Crack CA Final Examination?

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Let’s begin with Do’s & don’t subject wise while preparing for CA Final Exam.

General Tips:
1. It is always said that before jumping directly to fight war first test your weapons, might be they got rusted in 2.5 Year period of articleship which is no exam zone. So I would suggest you to solve few past examination papers by making exam atmosphere at home.

2. Whatever you’re read last six months it doesn’t matter if you are not good & motivated in those 3 Hours of Exam Room. Most of the people face problem that they get blank in exam hall. So friends please feel motivated while entering in exam fall, feel you are going to rock the show. What I do at my time to feel enthusiastic is by listening motivational song on full voice while taking bath before going for exam. One song which I could suggest is “Ruk jana nahi tu kahin haar ke”. So feel motivated guys because difficult roads often lead to beautiful destinations. Take pride in how far you have come and have faith in how far you can go.

3. In Exam hall do not forgot to bring wrist watch. From the beginning of every exam allot 30mint exactly for each question. Make this 30mint as your deadline make yourself disciplined that you will short the answer but complete it before this deadline than only you can attempt 100% paper.

4. When examiner handover you the paper you have 15mints. To read. I never read & waste time on reading first question of paper in this time because it is compulsory. I always do NPV analysis in this 15mint to find out question which I will eliminate to answer as option. While reading question I write few points from pencil on question paper around question which I need to write in answer book. It will save time to remind those points while answering question. Writing on question paper is not allowed but we Indian are expert in hiding things. So be Smart.

5. Don’t run for course completion, Revision is most important part. Find time for revision also.

6. Make Study Plan, time table put recovery time in that to cover up topics which couldn’t get completed in schedule due to lack of time. Make short period time table & revise it periodically. I had attached my Study Schedule at the end of blog for reference.

a) Accounts:
i) Reference book MP VijayKumar is more than sufficient for this subject. One must refer this book to crack accounts.
ii) Do not do audit of question, solve it thoroughly in rough copy because minor errors will be detected only by solving problems in copy only. Never look for solutions first, try to solve it by your own it doesn’t matter how much time it takes 1hour-2hour etc, just gave it because the thing which you learn by wasting this time will get attached to your mind for lifetime. 
iii) Always begin topic with concepts given at the start of every chapter than move forward slowly towards basic question of your coaching class & than move forward for questions of reference book. That means much focus towards basic part.
iv) While solving first time you must mark two things in every chapter first is the Key point or unique point in question & its treatment by reversing notebook & second is the question which covers all concepts or which is typical one or which you felt unable to do at once.
But Why so? It will help you at the time of revision. At the time of revision you just have to look key point which you marked above & solve key question to revise whole topic.
Have a look at my notebook by visiting link at the end of blog.
v) Make one concept copy for accounts which includes all concepts & formula chapter wise that will help you at the time of revision. Apart from concepts it must cover few exceptional situations (with their solutions) which you face during solving question. For example if your mind struggles to crack one situation of chain holding in Consolidated financial statement than jot it down on your concept copy with its solution & logic. Soon you will be used to of these tough problems because this concept copy is used to revise regularly & with the passage of time these will be habitual for you to solve such type of problems.
Have a look at my Accounts & AS Concept copy by visiting link at the end of blog.

b) Strategic Financial Management (SFM)
 Most interesting & favourite subject I learned in Final.
i) Do make a good, neat, clean, systematically arranged chapter wise Formula Copy in this subject. It will be like Holy Bible & Geeta for everyone. Don’t get it Xerox of any good student, prepare it by own because everyone has its own way of writing. Formula copy must cover following elements:
(1) As mentioned in name it must cover each and every formula of chapter along with alternatives formula’s because you never know which formula may come in use in problem. I experienced it when Beta in Portfolio chapter may calculate in various alternative manners.
(2) Logics of formula, connection of various formulas & way of remembering it. But where you will find it? By analysing & going deep during study in SFM.
(3) Make Graphical presentation. It is always said that human’s memorise pictures easily.

c) Auditing & assurance:
i) One of the flirty subject of 1st Group like ISCA in 2nd Group. You can never expect how much you will score in this subject. According to me there are two strategies to crack this subject these are
(1) SA’s from book of Aseem Trivedi, Miscellaneous audit from notes of Sarthak Jain sir which have good summary of Module, Code of Ethics from notes of Sarthak sir (FAST Academy Indore) & Aseem sir(NPA Academy Indore) both. I know this is one of the mysterious ways of study but due to insufficiency of time I did this.
(2) Reference book of Surbhi Bansal fits best from the point of exam. If someone think graphical presentation is easier to learn than he/she may refer Pankaj Garg Book also.
(3) Instead of covering SA’s daily for 1-2 hours, I would suggest learn it once in a  while by continuous seating of 2-3 days, because all the SA’s are interconnected with each other & this way of study may help to establish link between al the topics.
(4) Do not forget to read & write the way of answering from Practise Manual. Most of the students defeated because of their answer writing approach.

d) Corporate Law & Allied Laws:
i) There is only one God Father which can help you to crack this exam, one & only “Munish Bhandari”. Do not go for handbook only to save few bucks. If possible buy both books otherwise at least main book. 
ii) Read & learn thoroughly from book by dedicating minimum 3Hours daily. Only read topic, do not solve questions right now after reading topics. There must be minimum gap of 2 days between what you read & what you are solving. I mean you should practise questions of topic which you read 2 days ago.
iii) Since there are bunch of repetitive questions & case study in book. I would suggest while practising question, must mark the good question which will help you in revisions.
iv) Don’t get panic while reading topics like Winding up, Compromise & arrangement, Producer Company, SEBI, SCRA. I know they are most boring topics of book so it’s better to give them 2-3 reading like news paper & learn selected questions of these topics from Practise manual.
v) After completing whole subject when you are with another subject to complete off find 15-20 mints. Daily to solve practise manual of this subject. It is just like breakfast for you. Don’t dedicate much time but at least 15-20 mints which help you to revise the subject.

e) Management Accounting (Cost & QT)
i) Regarding study material of this subject you have two option, first one is “Paduka” Only & second one is “your coaching notes + Practise Manual”. Remember if you are solving paduka than there is no need of referring Practise Manual.
ii) First of all I would like to disappoint you because it is the only paper of 80 Marks. Surprised! Yes but it is the bitter truth. There are few rare people who had attended 100 marks paper. ICAI always throws paper of 4 hours in this subject which you have to solve in 3 hours. In my attempt I have to left question of 30-35 marks due to lack of time. So it is very important to manage time in this paper, you have to compulsorily attend theory question to attempt 80 marks paper so do not left theory while covering this subject.
iii) It is not easy to solve questions of costing. To understand such a lengthy question & finding what they want is toughest task. So before solving question always break question in 3 parts by writing in rough side 1. Given Data 2. What they want? 3. What resources you required? Some time questions are so lengthy that you feel lost from the start & drop the question. This is wrong approach, always pick pen & start writing details of question Whether you know what to do or not. Most of the time I realised that when I started writing details of question I found a way to crack the question more easily than by seating & thinking constantly.
iv) Practise Hard is the only key to unlock the doors of success. The more you solve the problem the more you get familiar with topic. Solve on copy by writing & Do not look for solution until you waste 15-20 mints of time on question by your own. Mark Star points in question.
v) For theory Practise Manual is sufficient.
vi) For QT read & mugging up steps to solve is the only way. For the topic like Simplex Method in Linear programming I would suggest read it with calm mind by dedicating whole day you can understand it to the some extent. 

i) I know everyone is most interested to read way to crack this DEVIL subject. It is tough to decide which study material to use for cracking this subject. As per my view if you have time for classes than do batches of Mr. Swapnil Patni Sir he is the magician of this subject, his teaching skills are unbeatable. But if you had not done any batch & if you are interested in understanding, learning ISCA in easy language then go for Dinesh Madaan otherwise Devang Dalal. People says that ICAI doesn’t give marks on the language based on book of Dinesh Madaan but from my view you can’t write exact content or language in exam by reading any other book also. So it’s better to understand & than write in exam. My personal experience of Devang Dalal book is not good because you are getting no extra content in this book just an extract of module. But most of the my friends suggest that Dalal is best from exam point of view so I write here.
ii) Repetitive reading the topics will be helpful to memorize content. Make mnemonics of your interest to learn points because most of the student forgot points in exam room. 
iii) While revising from practise manual always write answers in copy because most of  the time you think you remember all the points of answer but when you write yourself on paper than only you realised in how much water you are.
iv) One important issue with ISCA is that there are most of the questions which looks similar but have different answers so bifurcate such question during study. For Eg: most of the student writes advantages of ERP as answer for the question like Characteristics of ERP.

g) Direct Tax Laws
i) As per my experience paper of both taxation subject comes 80% directly from Practise Manual, Amendments, RTP, Supplementary material & Case laws issued by ICAI. So if you don’t have enough time than you can rely over this study material. That is how i got exemption in both subject. But in case you are left with sufficient time than you can refer book TN Manoharan. 
ii) It is very lengthy subject so do make summary charts, notes, limit while going through the subject.
iii) Be focused toward Practise Manual & amendments.
iv) You can’t revise whole DTL just before exam but you can revise topics from which compulsorily one question come i.e. Business Head, Assessment Procedure, International Taxation, TDS, Wealth Tax.

h) Indirect Tax Laws
i) I would suggest one & only book for IDTL i.e. Bangur. Sometime you will realise it as a boring book without any chart but there are no other better option.
ii) Your main focus should be towards Service Tax. It is easy & interesting topic & covers half of IDTL.
iii) Custom is very typical among all because for few marks you have to study a major content so for procrastinators like me I would suggest to read thoroughly upto valuation rules only.
iv) Must solve Practise Manual & supplementary material in this subject.
New CA Course


Budget 2015 Highlights Economy & Related

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1) Real GDP growth to jump to 7.4%, making India the largest growing economy in the world.
2)  CAD for this year is expected to be 1.3% of GDP 
3)  Expect CPI inflation to remain close to 5% by end of the year, FM: Our objective is to keep inflation below 6 percent
4)  Expect to implement Goods & Services tax by April 2016
5)  Incremental change is not going to take us anywhere we have to think in terms of quantum
6)  MNREGA to stay, says FM
7)  Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in 2016-17, 3% in 2017-18.
8) Govt to bring a comprehensive bankruptcy code for the ease of doing business by 2015-16,
says FM Jaitley

1)  To abolish Wealth Tax;
2) Corporate Tax Rate reduced to 25% for over next four years. Exemptions & deductions to be scrapped
3)  Exemptions For Individual Tax Players To Continue
4)  Yoga to be included as Charitable Purpose
5)  To Enact New Law For Black Money
6) Concealment of income will attract 10 yrs of rigorous imprisonment
7) Stringent penalties and jail for Black Money holders and evaders
8) Benami property transaction bill to tackle black money transaction in real estate soon
9) Foreign Exchange Management Act To Allow For Seizure Of Foreign Assets
10) FEMA Act to be amended to incorporate Black Money provisions: Finance Minister
11) To Allow Tax Pass-through For Alternative Investment Funds
12)  To Tighten Reporting Of Cash Transactions
13) To Have Benami Transaction Prohibition Bill For Domestic Black Money
14)  Quoting PAN a must for all purchases above One Lakh
15)  100% deduction allowed for all contributions in Swachh Bharat Abhiyan [except contribution in CSR]
16) Proposes to rationalise capital gains tax regime for real estate investment trusts
17)  To defer GAAR by 2 years
18) Tax pass through to be allowed in alternative investment funds to boost small firms, startups
18) Propose To Rationalise Capital Gains Regime For REITs/InvITs
19) To reduce Custom Duty on 22 items
20) Rental Income from REITS to have pass through facility
21) Income Tax On Royalty Fees For Technical Reduced To 10%
22) 2% Addl. Surcharge on Super Rich.
23) Reduced taxes on Technical Services to 10% from 25%
24) Tax reduce for foot wear above 1k per pair
25)  Service Tax increased to 14%
27) 80D Health insurance 15000 to 25000, For senior citizens 30000
28)  80DDB increased to 80000
29)  Wealth Tax abolished
30)  Tax on royalty income decrease from 25% to 10%
31)  Transport Allowance exemption increased to 1600 pm
32)  Domestic Transfer Pricing limit increased from 5crores to 20 crores
33)  NBFCs with size of Rs 500 cr and above to get parity in recoveries by including in SERFASIA Act as financial institution.


TIN number validation with State code

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State code and Tin number co-relation for implementing and validation .

The chart given below is very useful for verification of Tin number with the respected State code.


Best Valuation Method of Companies

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Different valuation tools are used for valuation of companies at different levels of business.

(a) Start-Ups
Start-ups are driven by far too many factors to be captured by simplistic valuation models. Their sensitivity to economic factors, sector specific and company specific factors must be captured as far as possible to reasonably value them. These factors can only be captured with the DCF method.

(b) High Growth Companies
High growth companies have drastically changing market shares and hence it is very difficult to compare them with a benchmark, making comparable valuation difficult and leaving one to go with the DCF approach.

(c) Matured Companies
Matured companies have fairly predictable financials and hence DCF will result in a fairly reliable valuation. However, the Dividend Discount Model will also work reliably, as matured companies have nominal expansion needs and hence a high dividend payout ratio along with predictability of growth rates.

(d) Cyclical Companies
Cyclical companies by virtue, have a very high degree of uncertainty. Secondly, such companies are always on the radar for news & management comment both of which are immediately reflected in Comparables. On the other hand, DCF may have to wait for a quarter or more to reflect a change.

(e) Distressed Companies
Distressed company valuation, is particularly tricky as the challenge lies in finding fair value and not the lowest value! By distressed, we mean loss making companies or those that are restructuring their businesses by selling off ‘toxic assets’ and toning down capital structure. Traditional valuation approaches fail miserably as a result of the uncertainty involved and this is where Liquidation Value & Replacement cost method come to the rescue. Liquidation value measures return from selling off or liquidating the assets while replacement cost measures the opportunity cost of setting up a business.

(f) IPO Valuation
Although, for such situations it is best to use DCF as it determines the intrinsic value, not many will want to use it as it is likely to understate value as against Comparable valuation. Simply because, the idea behind an IPO is to raise maximum possible capital for a minimum dilution in equity! Hence most IPOs come out in bull markets where valuations are already stretched and comparable valuation will result in higher values as compared to DCF, as a result of circularity involved in such the approach.
Consequently, you may notice that IPOs are ‘demand driven’ rather than intrinsic value; as a result many average companies get extraordinary valuations