VOLUME NO.

XXIII 2 FEBRUARY 2006

EDITORIAL ADVISORY CENTRAL COUNCIL

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Edited, printed and published
(In alphabetical order) PREETI MALHOTRA (MS.) by N.K. Jain for the Institute of
V. K. AGARWAL MEMBERS Company Secretaries of India,
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N. K. JAIN AMIT KUMAR SEN
action taken on the basis of the
V. SREEDHARAN advertisements published in
SECRETARY & CHIEF EXECUTIVE OFFICER this Bulletin.
N. K. JAIN

H I G H L I G H T S
l From the President 03
l Academic Guidance 05
l Legal World 18
l Students Services 22
l Students Quiz 27
Prize Winners 28
l Schedule of Training Orientation Programmes 30
l SMTP Organised by HQ/RCs/Chapters 31
l Schedule of Academic Development Programmes 31
l News and Announcements 32

Student Company Secretary 1 February 2006

 TRAINING ORIENTATION PROGRAMME
As per Company Secretaries Regulations, 1982 (amended
from time-to-time) every student apart from passing the final
examination of the Institute is also required to possess the
practical experience and undergo practical training or be
exempted therefrom before becoming eligible to the Associate
Membership of the Institute. Students who do not possess
practical experience are required to undergo compulsorily 15
months Management/Apprenticeship training.
Most of the students commencing training are not aware of
the significance and methodology of training, business
environment, corporate culture, communication and
behavioural aspects. Keeping in view the above factors, the
Council of the Institute has decided that students requiring to
undergo training should compulsorily attend five days Training
Orientation Programme (TOP) before they are sponsored for
training. It has also been decided that henceforth students
will be sponsored for training in the companies or with company
secretaries in practice as per the following schedule.

Activities Session1 Session 2 Session 3 Session - 4

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

Student Company Secretary 2 February 2006

 FROM THE PRESIDENT

Every day you make progress. Every step may be fruitful.

Yet there will stretch out before you an ever-lengthening,
ever-ascending, ever-improving path. You know you will
never get to the end of the journey. But this, so far from
discouraging, only adds to the joy and glory of the climb.
Sir Winston Churchill
Dear students,

I am indeed greatly honoured to be elected as the President of this premier professional body of the country. I would like
to express my heartfelt thanks for the confidence my colleagues on the Council and all of you have shown in me by
electing me to this post. I am very much aware of the responsibility it carries. I accept this honour with a great sense of
mission and responsibility and feel extremely happy to address my maiden communication to you. During my tenure, I
would like to work with you in a spirit of openness and it will be my endeavour to improve upon the initiatives taken and
strengthen all student related activities with the active involvement of Regional Councils/Chapters and with the excellent
cooperation of the Secretariat of the Institute whose dependable support has always been a cornerstone of our work.
Your continued trust and support will be my most important asset.
Company Secretaries in the dynamic global competitive environment have to shoulder greater responsibilities to stay
competitive and aim for excellence in their professional career. Company Secretaries have the capability to perform
beyond Company Law has been recognized almost by all the sectors. This requires working relentlessly to expand
horizons of your knowledge so as to have an in-depth perception of major management functions as well as understand
the needs of industry. Industry requires professionals who have vision and capability to lead the organization efficiently.
It is therefore, imperative that Company Secretaries keep themselves fully prepared in terms of competence and knowledge
to meet the challenges that lie ahead in terms of quality of service and professional excellence. To explore more
employment opportunities and new areas of practice, it will be my endeavour to impress upon Government, Regulatory
Authorities and Chambers of Commerce to recognise the competence and expertise of Company Secretaries as
independent corporate professional who can provide advice and objectivity not only in the decision making process of
the corporate boards, but also management, administration and governance of companies.
Besides, it is equally important to acquire important soft skills which a professional must possess to achieve success in
his professional career. Some of these important soft skills are communication skills, computational skills and IT skills,
presentation skills: motivational skills, interactive skills, interview skills reading and writing skills. From the Institutes
side efforts are already on to include training programmes for students to enable them to acquire these life skills.
Whenever and wherever opportunity arises, I advise you to take benefit of such programmes in order to make your
professional lives successful.
Mostly professional organizations whether at its inception or afterwards adopt a mission to be pursued to achieve
professional excellence. The product of an organization reflects the values it practises and the vision with which it
pursues its mission. An early completion of the revision of the syllabus and remodelling of the training requirements
shall therefore be of utmost importance in my priority list. The contents of the syllabus and training should be formulated
in such a manner that reflect the needs of the developing corporate paradigm. Similarly, implementation of E-learning
project and preparation of interactive CD Rom on important subjects by experts for students would be on priority of my
agenda.

Student Company Secretary 3 February 2006

 Friends, self development is the best development as we are the architects of our destiny. The statement gains more
relevance when applied to the student community as it is in their hands to shape their destiny particularly in the rapidly
changing global business environment. Therefore, right from the joining the CS Course, you have to prepare yourselves
to adapt to the changing environment and develop the vision to face the challenges of the change boldly. Moreover,
during my tenure it will be my endeavour to pursue vigorously the agenda for creating awareness about the Company
Secretaryship course in much more effective ways with more vigor and zeal. It would require concerted efforts on the
part of all of us to be able to attract greater number of students.
The Institute has various Chapters and Satellite Chapters spread all over the country to serve the students and members
besides enhancing the visibility of the profession and create desired awareness about the Company Secretaryship
course in their adjoining areas. To achieve better results, they require better infrastructure facilities. My efforts would
continue, towards strengthening the infrastructure and communications facilities upto Satellite Chapter level, so as to
ensure that they are able to provide single window services to our students and members. I wish all our extended arms,
i.e., Regional Councils, Chapters and Satellite Chapters to act, as Customer Care Centres, providing value added
efficient services.
I am pleased to inform you that CCRT of the Institute is organizing its 15th Residential Secretarial Modular Training
Programme at ICSI- CCRT, Navi Mumbai commencing from 18th March, 2006 to 2nd April, 2006. Registration will be on
first-come-firstserved basis. The 15th Residential SMTP has been planned with special emphasis on Management
Subjects and time-tested and well appreciated methodologies on imparting training. Attending Residential SMTP at
CCRT will be an experience by itself for you as it provides all the facilities enabling students to interact with the expert
faculty, senior academics and corporate leaders.
On this note, I would like to conclude by stating that to achieve excellence in your professional career you have to work
with determination, perseverance and vision. Face the challenges boldly and be a winner in this global race of competition.
Friends, I am conscious of the fact that you must be eagerly waiting for the results that will be declared by the Institute
on 25th February 2006 at 4.00 p.m all over India. I wish all those who appeared in the December 2005 examinations the
best of luck.
With best wishes,

Yours sincerely,

(H M Choraria)
choraria123@vsnl.net
Kolkata
February 14, 2006

Student Company Secretary 4 February 2006

 ACADEMIC GUIDANCE
ACADEMIC GUIDANCE
ECONOMIC LABOUR & INDUSTRIAL LAWS
HUMAN RESOURCES MANAGEMENT
& INDUSTRIAL RELA TIONS
RELATIONS
WAGES*
A brief write up on wages has been given herein below for the
information of the students covering the Minimum Wages Act,
Payment of Wages Act and the Payment of Bonus Act. Statistical
information on statewise range of mimimum wages as well as
enforcement of Minimum Wages Act, 1948 in different States/Union
Territories has also been given. Generally statistical information is
not easily available. Students will definitely find the information useful.
INTRODUCTION
As of now there is no uniform and comprehensive wage policy for
all sectors of the economy in India. Wages in the organized sector
are determined through negotiations and settlements between
employer and employees. In unorganized sector, where labour is
vulnerable to exploitation due to illiteracy and having no effective
bargaining power, minimum rates of wages are fixed both by Central
and State Governments in the scheduled employments falling within
their respective jurisdictions under the provisions of the Minimum
Wages Act, 1948. The Act binds the employers to pay to the workers
the minimum wages so fixed from time to time.
MINIMUM WAGES ACT, 1948
On the recommendation of the 8th Standing Labour Committee,
the Minimum Wages Bill was introduced in the Central Legislative
Assembly on 11.04.1946 to provide for fixation of minimum wages in
certain employments. The Minimum Wages Bill was passed by the
Indian Dominion Legislature and came into force on 15th March 1948.
Under the Act both State and Central Government are Appropriate
Governments for fixation/ revision of minimum rates of wages for
employments covered by the Schedule to the Act. The minimum rate
of wages also include Special Allowance i.e. Variable Dearness
Allowance (VDA) linked to Consumer Price Index Number, which is
revised twice a year effective from April and October. The Central
Government and Twenty-five States/UTs have adopted VDA as a
component of minimum wage.
NATIONAL MINIMUM WAGE
The 28th Indian Labour Conference in 1985 recommended a
national basic subsistence level wage below which no wages may be
fixed regardless of the nature of work, nature of employment and
other considerations. In the absence of uniformity in minimum wages
the Central Government adopted the concept of national floor level
minimum wage and fixed it at Rs.35/- per day in 1996, based on the
recommendation of the National Commission on Labour in 1991 and
subsequent increase in the price level.
The Central Government raised the national floor level minimum
wage to Rs.40/- per day in 1998 and further to Rs.45/- w.e.f.
01.12.1999 and Rs.50/- per day w.e.f. 01.09.2002 keeping in view
the rise in consumer price index. The national minimum wage has
last been revised upwards to Rs.66/- per day with effect from
01.02.2004 on the basis of the recommendations of Central Advisory
Board. The range of wages for the unskilled workers as fixed/revised
in respect of employments covered under Central and State sphere
are at Table 5.1.
ENFORCEMENT OF MINIMUM WAGES ACT, 1948
Minimum Wages under Central sphere are enforced through
Central Industrial Relations Machinery (CIRM). Under the States, the
* Compiled by Archana Kaul, Education Officer, The ICSI.
Student Company Secretary
State Industrial Relation Machinery ensures its enforcement. The
position of enforcement of Minimum Wages Act, 1948 in different
States/UTs during 2003-04 is shown in Table-5.2.
The Government has initiated the process of examining certain
amendments to the Minimum Wages Act, 1948 with a view to make
the provisions more worker friendly.
THE PAYMENT OF WAGES ACT, 1936
The Payment of Wages Act, 1936 was enacted to regulate
payment of wages to workers employed in Industries and to ensure a
speedy and effective remedy to them against illegal deductions and/
or unjustified delay caused in paying wages to them. The Act ensures
that no deductions, which are unauthorized, shall be made from the
wages of the employees. The specific day for paying the wages is
7th day of the month in case of industries employing less than 1000
workers.
STATUS OF PAYMENT OF WAGES (AMENDMENTS)
BILL, 2002
The existing wage ceiling of Rs.1600/- p.m. was fixed way back in
1982 and depreciation of money since then has resulted in narrowing
down of its applicability. Keeping this end in view, a Bill named The
Payment of Wages (Amendment) Bill, 2004 to enhance the wage
ceiling upto Rs.6500/- as well as to improve upon certain other
features, was introduced in the Rajya Sabha on 16th May, 2002. The
Bill was there from referred to the Standing Committee on Labour &
Welfare. The Standing Committee has inter-alia recommended for
periodic revision of the wage ceiling by way of notification instead of
the legislation method. The Ministry has decided in consultation with
the Ministry of Law & Justice to accept most of the recommendations
of the Standing Committee on Labour & Welfare and accordingly an
official amendment to the Bill namely The Payment of Wages
(Amendment) Bill 2004 was considered and passed by Rajya Sabha
on 02.12.2004.
MANISANA WAGE BOARDS
The Working Journalists and other Newspaper Employees
(Conditions of Service) and Miscellaneous Provisions Act, 1955
provides for regulation of conditions of service of working journalists,
non-journalists newspaper and news-agency employees. Section 9
and 13 of the Act, inter-alia, provide for constitution of two Wage
Boards for fixing or revising rates of wages in respect of working
journalists and non-journalist newspaper and news-agency employees
respectively. According to the Act, a Wage Board shall consist of the
following:
1. Two persons representing employers in relation to newspaper
establishments;
2. Two persons representing Working Journalists/non-journalists
and
3. Three independent persons, one of whom shall be a person who
is, or has been a judge of High Court or the Supreme Court and
who shall be appointed by the Government as the Chairman of
the Wage Boards.
The Act does not lay down the periodicity for constituting the Wage
Board. The Government, in September 1994 constituted two Wage
Boards - one for the working journalists and the other for the non-
journalists newspaper and news agency employees under the
common Chairmanship of Justice Rajkumar Manisana Singh. The
Wage Boards submitted their final recommendations to the
Government on 25.07.2000. The Government accepted these
recommendations with some minor modifications and decisions of
the Government were notified in the Gazette of India (Extraordinary)
on 05.12.2000 and 15.12.2000 respectively. However, the
recommendations are required to be implemented by the State
Governments under the provisions of the Act.
All States and Union Territories have been asked to take following
steps for implementing the recommendations of the Wage Boards:
5 February 2006
 ACADEMIC GUIDANCE
(i) Creation of special cells in the state/Union Territories to oversee consultation with other concerned Departments/Ministries.
the progress of the implementation of awards. Table- 5.1
(ii) Constitution of a Tripartite Monitoring Committee to monitor the STATE-WISE RANGE OF MINIMUM WAGES
progress of implementation. AS ON 31.12.2004
(iii) Gearing up of the State Labour Enforcement Machinery for Sl. Centre/States/ No. of Lowest and Highest
speedy implementation of the recommendations. No. UTs. Scheduled rates of minimum
(iv) Submission of quarterly progress reports to the Ministry on Employ- wages
implementation of the recommendations commencing from the ments per day (in Rupees)
quarter ending 31.03.2001.
(1) (2) (3) (4) (5)
A Central Level Monitoring Committee has also been constituted
under the Chairmanship of Labour & Employment Adviser for reviewing 1. Centre Sphere
the implementation of the recommendations. Other members of the
Committee are Joint Secretary of Ministry of Information and (i) Agriculture 1 94.04 104.89
Broadcasting, Chief Labour Commissioner (Central) and Director-in- (ii) Stone Mines for
charge of Wage Board Section in the Ministry as the Member Secretary. stone breaking and 1 76.12 192.11
stone crushing
Four meetings of the Committee were held on 08.03.2002,
13.11.2002, 06.06.2003 and 28.01.2004 wherein it was decided that (iii) Construction & 40 58.96 71.12
Chief Labour Commissioner (Central) through his Regional Labour Mining
Commissioners (Central) would liaise with State Governments with
regard to effective implementation of the awards, following which there (iv) Loading/ 2 56.71 81.70
has been overall improvement in performance. It has also been Unloading
decided that Central Monitoring Committee should visit various States & Ash Pit cleaning
where the implementation of the award is not satisfactory. The first in Railways
round of visit scheduled for Assam and West Bengal was made during (v) Security Service 1 70.00 70.00
10-12th July 2003 to review the implementation of the Award. (Draft (Draft
In pursuance of the Directions of the Central Government, so far Notification) Notification)
information about 1211 Newspaper Establishments have been 2 Andhra Pradesh 65 45.00 110.00
received from the State Governments/Union Territories. Out of 1211 3 Arunachal Pradesh 25 39.87 42.11
Newspaper Establishments, only 333 (27.5%) have fully and 101 4 Assam 67 50.00 63.00
(8.34%) have partially implemented the Award. 777 Newspaper 5 Bihar 74 45.18 64.62
Establishments (64.2%) have not yet implemented the 6 Chhattisgarh 36 52.87 79.13
recommendations of the Manisana Wage Board. Out of 35 States/ 7 Goa 20 60.00 94.00
Union Territories, only 19 States/Union Territories are sending quarterly
8 Gujarat 52 50.00 99.20
progress report regularly. 10 States /Union Territories are not at all
9 Haryana 47 87.29 88.29
furnishing the quarterly progress re[port even after repeated reminders.
The recommendations of the wage Board are not applicable to 7 10 Himachal Pradesh 24 65.00 65.00
States/Union Territories because either there is no newspaper 11 Jharkhand 61 64.73 64.73
establishment or the Newspaper establishments are very small. 18 12 Jammu & Kashmir 18 45.00 45.00
States/ Union Territories have formed Tripartite Committees to oversee 13 Karnataka 72 56.30 97.07
the implementation of the recommendations. 14 Kerala 40 67.14 169.04
15 Madhya Pradesh 36 54.56 82.58
PAYMENT OF BONUS ACT, 1965
16 Maharashtra 67 45.00 169.04
The Payment of Bonus Act, 1965 provides for payment of bonus 17 Manipur 15 66.00 66.00
to employees. According to the Act, employee means any person 18 Meghalaya 24 70.00 70.00
(other than an apprentice) employed on a salary or wage not exceeding 19 Mizoram 3 84.00 84.00
Rs.3500 per mensem in any industry to do any skilled or unskilled, 20 Nagaland 37 50.00 50.00
manual, supervisory, managerial, administrative, technical or clerical 21 Orissa 83 52.50 52.50
work for hire or reward. However, according to Section 12 of the Act,
22 Punjab 60 82.65 82.65
the bonus payable to employees whose salary or wage exceeds
23 Rajasthan 61 73.00 74.00
Rs.2500 per mensem, has to be calculated as if his salary or wage
24 Sikkim The Minimum Wages Act has been
were Rs.2500 per mensem. The above wage ceilings under Section
extended to Sikkim w.e.f. 01.10.2004.
2(13) and Section 12 of the Act respectively were last revised vide
Payment of Bonus (Amendment) Ordinance, 1995 promulgated on 25 Tamil Nadu 65 52.15 125.20
09.07 1995 and made effective from 01.04.1993. 26 Tripura 12 50.00 53.00
27 Uttar Pradesh 65 58.00 105.07
The proposal regarding amendment to the Payment of Bonus Act, 28 Uttaranchal 62 58.00 106.31
1965 to enhance eligibility limit from Rs.3500/- to Rs.5000/- and 29 West Bengal 55 62.42 203.86
calculation ceiling from Rs.2500/- to Rs.3500/- had been under
30 Andaman & Nicobar 6 100.00 124.42
consideration of the Government. Meanwhile, the Second National
Islands
Commission on Labour (NCL) has submitted its report recommending
31 Chandigarh 44 100.00 100.00
enhancement in the ceilings for reckoning entitlement and for calculation
32 Dadra & Nagar Haveli 43 84.00 84.00
of bonus to Rs.7500/- and Rs.3500/- respectively. As per Second
33 Daman & Diu 71 50.00 60.00
National Commission on Labour recommendations, a proposal for
amendment in Payment of Bonus Act, 1965 so as to raise the eligibility 34 Delhi 29 110.10 110.10
ceiling from Rs.3500/- to Rs.7500/- p.m. and the calculation ceiling 35 Lakshadweep 3 52.00 52.00
from Rs.2500/- p.m. to Rs.3500/- p.m. is under consideration in 36 Pondicherry 5 45.00 65.00

Student Company Secretary 6 February 2006

 ACADEMIC GUIDANCE
Table-5.2
DETAILS REGARDING ENFORNCEMENT OF MINIMUM WAGES ACT, 1948
IN DIFFERENT STATES/ UTS. 2003- 2004
Sl Name of the No. of No. of No. of No. of No. of No. of Amount of fine
No. State/UTs inspections irregularities irregularities Claims Claims Person Realised
made detected rectified filed settled Prosecuted in rupees
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. Andhra Pradesh 52204 506 404 19820 15293 1185 134573
2. Assam 2831 584 416 14 13 - 600
3. Bihar 297439 55996 55491 24590 2057 54 4800
4. Goa 1038 3202 140 9 15 36 29900
5. Gujarat 60299 52769 29552 1878 477 522 698375
6. Haryana 5212 - - 2928 193 829 4136805
7. Jammu & Kashmir 931 221 81 - - 146 13600
8. Maharashtra 39585 52001 22475 33 116 94 119735
9. Manipur 118 31 9 - - - -
10. Meghalaya 633 - - - - - -
11. Orissa 29798 23535 12212 57 2 214 12750
12. Rajasthan 7681 266 113 293 239 251 80990
13. Sikkim The Minimum Wages Act has been extended to Sikkim w.e.f.1.10.2004.
14. Uttaranchal 3322 1045 388 223 177 334 26960
15. West Bengal 28478 6710 6340 215 2 1 64250
16. A & N Islands 234 1170 1124 24 21 3 7500
17. Chandigarh 62 23 23 38 33 11 7500
18. Dadra & Nagar Haveli 71 28 28 1 - 04 -
19. Daman & Diu 295 - - - - - -
20. Pondicherry 8589 - - - - -
Note:- 1.
The information has not been received from the States of Chhattisgarh, Himachal Pradesh, Jharkhand, Karnataka, Kerala,
Madhya Pradesh, Nagaland, Punjab, Tamil Nadu, Tripura, Uttar Pradesh, Delhi.
2. Information received from Arunachal Pradesh, Mizoram, Lakshadweep is stated to be Nil.
Source: Annual Report of Ministry of Labour 2004-2005

STUDY UPDATES1
SECURITIES LAWS AND REGULATION OF
FINANCIAL MARKETS (INTER,GROUP II)
A. AMENDMENTS TO SEBI (DISCLOSURE AND
INVESTOR PROTECTION) GUIDELINES, 2000
SEBI, vide its circular no SEBI/CFD/DIL/DIP/18/2006/20/1 dated
January 20, 2006 has amended SEBI (DIP) Guidelines, 2000 to
provide for various modes of making refunds to the applicants viz
ECS (Electronic Clearing Service)/ Direct Credit/ RTGS (Real Time
Gross Settlement)/ NEFT (National Electronic Funds Transfer) .
The applicants residing in 15 centres where clearing houses are
managed by the Reserve Bank of India (RBI), will get refunds through
ECS only except where applicant is otherwise disclosed as eligible to
get refunds through direct credit & RTGS.
1. Prepared by Sonia Baijal, Asst. Director, The ICSI.
In this regard, Registrars to the Issue are required to ensure that
for refund through any mode of electronic transfer of funds, the relevant
electronic data file is transferred to the Clearing System within the
time period specified in the Guidelines and obtain necessary
confirmation for records. They are also required to simultaneously
send individual intimation to the applicants giving details of the bank
where refunds shall be credited alongwith the amount and expected
date of electronic credit of refunds. Suitable instructions regarding
various modes of despatch of refund orders are also required to be
incorporated in the application form, abridged prospectus and the
prospectus/letter of offer in consultation with the Lead Manager/s.
B. GUIDELINES ON ANTI MONEY LAUNDERING
MEASURES
The Prevention of Money Laundering Act, 2002 (PMLA) has been
brought into force with effect from 1 st July 2005. Necessary
Notifications / Rules under the said Act have been published in the
Gazette of India on 1st July 2005 by the Department of Revenue,
Ministry of Finance, Government of India.

Student Company Secretary 7 February 2006

 ACADEMIC GUIDANCE
As per the provisions of the Act, every banking company, financial
institution (which includes chit fund company, a co-operative bank, a
housing finance institution and a non-banking financial company) and
intermediary (which includes a stock-broker, sub-broker, share transfer
agent, banker to an issue, trustee to a trust deed, registrar to an
issue, merchant banker, underwriter, portfolio manager, investment
adviser and any other intermediary associated with securities market
and registered under section 12 of the Securities and Exchange Board
of India Act, 1992) shall have to maintain a record of all the
transactions; the nature and value of which has been prescribed in
the Rules notified under the PMLA. Such transactions include:
l All cash transactions of the value of more than Rs 10 lakhs or its
equivalent in foreign currency.
l All series of cash transactions integrally connected to each other
which have been valued below Rs 10 lakhs or its equivalent in
foreign currency where such series of transactions take place
within one calendar month.
l All suspicious transactions whether or not made in cash.
SEBI has laid down the minimum requirements / disclosures to
be made in respect of clients. The intermediaries are required to
specify additional disclosures to be made by clients to address
concerns of Money Laundering and suspicious transactions
undertaken by clients, according to their requirements.
All intermediaries are advised to ensure that a proper policy
framework as per the Guidelines on anti-money laundering measures
is put into place within one month from the date of the circular. The
intermediaries are also reqired to designate an officer as Principal
Officer who would be responsible for ensuring compliance of the
provisions of the PMLA.
C. FAQs ON IPO GRADING 2
1. What is IPO grading?
IPO grading (initial public offering grading) is a service aimed at
facilitating the assessment of equity issues offered to public. The
grade assigned to any individual issue represents a relative
assessment of the fundamentals of that issue in relation to the
universe of other listed equity securities in India. Such grading is
assigned on a five-point point scale with a higher score indicating
stronger fundamentals.
2. How is IPO grading different from an investment
recommendation?
Investment recommendations are expressed as buy, hold or
sell and are based on a security specific comparison of its assessed
fundamentals factors (business prospects, financial position etc.)
and market factors (liquidity, demand supply etc.) to its price.
On the other hand, IPO grading is expressed on a five-point scale
and is a relative comparison of the assessed fundamentals of the
graded issue to other listed equity securities in India.
As the IPO grading does not take cognizance of the price of the
security, it is not an investment recommendation. Rather, it is one of
the inputs to the investor to aiding in the decision making process.
All other things remaining equal, a security with stronger
fundamentals would command a higher market price.
3. What is the requirement for IPO grading?
SEBI has been taking a pioneering role in investor protection by
increasing disclosure levels by entities seeking to access equity
markets for funding. This has caused India to be amongst one of the
more transparent and efficient capital markets in the world. However,
these disclosures demand fairly high levels of analytical sophistication
of the reader in order to effectively achieve the goal of information
dissemination.
2. Downloaded from SEBI website (www.sebi.gov.in)
Student Company Secretary
IPO grading is positioned as a service that provides an
independent assessment of fundamentals to aid comparative
assessment that would prove useful as an information and investment
tool for investors. Moreover, such a service would be particularly useful
for assessing the offerings of companies accessing the equity markets
for the first time where there is no track record of their market
performance.
4. How will IPO grading meet this requirement?
As mentioned above, the IPO grade assigned to any issue
represents a relative assessment of the fundamentals of that issue
in relation to the universe of other listed equity securities in India.
This grading can be used by the investor as tool to make investment
decision. The IPO grading will help the investor better appreciate the
meaning of the disclosures in the issue documents to the extent that
they affect the issues fundamentals. Thus, IPO grading is an additional
investor information and investment guidance tool.
5. Who will carry out the IPO grading ?
Credit Rating agencies (CRAs) registered with SEBI will carry out
IPO grading.
6. Does SEBI have a role in the grading exercise?
No. SEBI does not play any role in the assessment made by the
grading agency. The grading is intended to be an independent and
unbiased opinion of that agency.
7. Is this IPO grading mandatory?
No. IPO grading is optional.
8. How would the grading be indicated?
It is intended that IPO fundamentals would be graded on a five
point scale from grade 5 (indicating strong fundamentals) to grade 1
(indicating poor fundamentals). The grade would be read as: Rating
Agency name IPO Grade 1 viz CARE IPO Grade 1, CRISIL IPO
Grade 1 etc.
9. For how long would the assigned grade be valid?
The assigned grade would be a one time assessment done at the
time of the IPO and meant to aid investors who are interested in
investing in the IPO. The grade will not have any ongoing validity.
10. How can a company get its IPO graded?
The company needs to first contact one of the grading agencies
and mandate it for the grading exercise. The agency would then follow
the process outlined below.
n Seek information required for the grading from the company.
n On receipt of required information, have discussions with the
companys management and visit the companys operating
locations, if required.
n Prepare an analytical assessment report
n Present the analysis to a committee comprising senior executives
of the concerned grading agency. This committee would discuss
all relevant issues and assign a grade
n Communicate the grade to the company along with an
assessment report outlining the rationale for the grade assigned.
Though this process will ideally require 2-3 weeks for completion,
it may be a good idea for companies to initiate the grading process
about 6-8 weeks before the targeted IPO date to provide sufficient
time for any contingencies.
The contact details of the grading agencies are as under:
1. The Credit Rating Information Services of India Ltd. (CRISIL)
CRISIL House, 121-122, Andheri-Kurla Road, Andheri(E)
Mumbai 400 093
Tel : + 91 (22) 6913001 09, Fax : + 91 (22) 6913010
Email: crisil@giasbm01.vsnl.net.in
8 February 2006
 ACADEMIC GUIDANCE
2. Fitch Ratings India Private Ltd.
15th Floor, Nirmal, Nariman Point,Mumbai 400 021.
Tel : + 91 (022) 56370920-23, Fax : + 91 (022) 56370924
3. ICRA Ltd.
Kailash Building, 4th Floor, 26, Kasturba Gandhi Marg,
New Delhi 110001.
Tel : + 91 (11) 3357940 50, Fax : + 91 (11) 3357014
Email: icra@giasdl01.vsnl.net.in
4. Credit Analysis & Research Ltd. (CARE)
Godrej Coliseum, 4th Floor, Somaiya Hospital Road, Eastern
Express Highway, Sion (E), Mumbai 400 022
Tel : + 91 (22) 55543456, Fax : + 91 (22) 55543457
Email: care@careratings.com
10. Does the company have to accept the grade assigned?
CRAs have to forward the names and details of IPOs graded by
them on monthly basis to SEBI/ Stock Exchanges for uploading on
their website for public information. As such the company which has
opted for IPO grading, does not have a choice in accepting or rejecting
the grade. The IPO grading given by CRAs, shall form part of the
prospectus for the IPO.
11. What can the company do if it is not satisfied with the
grade assigned by the grading agency?
The company has no choice in this regard. If it has opted for IPO
grading, the same needs to be disclosed in the Prospectus.
12. Who would pay for the grading exercise?
The cost of grading IPOs shall be borne from investor protection
funds administered by Stock Exchanges or from IEPF administered
by Ministry of Companies Affairs.
FAQ
AQss ON COMP ANY LA
COMPANY W
LAW
DIRECTORS
Question 1
How is the appointment of first directors made?
Answer
The Articles of Association of a company may name the individuals
who will be the first directors of the company. If articles of association
do not name the first directors, then subscribers to memorandum of
association, who are individuals, will be deemed to be the first directors
by virtue of Section 254 of the Companies Act, 1956. Section 254
states that in default of and subject to any regulations in the Articles
of a Company, subscribers of the memorandum who are individuals
shall be deemed to be the directors of the company, until the directors
are duly appointed in accordance with the provisions of Section 255.
Question 2
Who is an alternate director?
Answer
An alternate director simply means a director appointed by the
Board of Directors of a company to act for a regular director during
his absence for a period of not less than three months from the State
in which meetings of the Board are ordinarily held. [Section 313].
State means a State in which Board Meetings are ordinarily held
and not necessarily the State where the registered office of the
company is situate. Absence from the State where the registered
office is situate will not, unless it is also the State where Board Meetings
are ordinarily held, enable the appointment of an alternate director.
Period of not less than three months indicate a continuous
period. Hence, there should not be any break in the absence of the
original director from the State in which meetings of the board of
directors of the company are ordinarily held, if provisions of Section
313 are to be brought into play.
Student Company Secretary
Question 3
The articles of the company PQR Ltd. provide for the
appointment of an alternate director. X, a director of PQR
Ltd. while proceeding on a long foreign tour, appointed Y as
his alternate to act for him during his absence. Whether the
appointment of Y by X is valid?
Answer
In term of Section 312, no director shall assign his office to any
other person. If he does, the assignment shall be void. As per section
313, the Board is empowered to appoint an alternate director in place
of a director who is absent for a period of 3 months or more from the
State in which the Board meetings are ordinarily held. Board can
appoint an alternate director only if it is authorized by the articles or
by a resolution passed at a general meeting.
The appointment of Y as an alternate director by X would amount
to assignment of office which is prohibited by section 312 and therefore
the appointment of Y as an alternate director is void. Further, as an
alternate director is appointed by the Board of directors and not by
the director in whose place he is appointed (i.e., the original director),
the Board can appoint Y or any other person as an alternate to X.
Question 4
What is meant by small shareholders director?
Answer
Since directors are elected by majority shareholders, small
shareholders do not get any representation on Board and their
interests are often neglected. To avoid this lacuna, a provision has
been inserted for electing a director by small shareholders.
Section 252 of the Companies Act, 1956 provides that a public
company having :
(a) a paid-up capital of five crores or more
(b) one thousand or more shareholders,
may have a director elected by small shareholders in the manner
prescribed.
Small shareholders shall mean a shareholder holding shares of
nominal value of twenty thousand rupees or less in the aforesaid
public company.
Question 5
Can a director appoint a proxy to attend a Board Meeting?
Answer
A director cannot appoint a proxy to attend a Board Meeting as
proxies are not allowed at Board Meetings. Accordingly, no director
is authorized to send his representative to attend and vote for him at
Board Meetings. However, in accordance with the terms of Loan
Agreements with Financial Institutions, the Institutions may reserve
the right to send their representative when their Nominee Director is
unable to attend Board Meetings.
Question 6
What will be the consequences if a person acts as a director
without obtaining qualification shares?
Answer
The Companies Act, 1956 does not prescribe any academic or
professional qualification for directors. Also, the Act imposes no share
qualification on the directors. So, unless the companys Articles
contain a provision to that effect, a director need not be a shareholder
unless he wishes to be one voluntarily. But the Articles usually provide
for a minimum share qualification.
If a director fails to obtain his qualification shares as required by
the Articles of the company, within 2 months, he vacates office
automatically on the expiry of 2 months from the date of his
9 February 2006
 ACADEMIC GUIDANCE
appointment (Section 283). If he acts as director after the expiry of
said two months without taking qualification shares, he shall be liable
to fine upto Rs.500 for every day between such expiry of two months
and the last day on which he acted as a director (Section 272).
Question 7
A company incorporated in 2000 had a provision in its Articles
that a director should hold 200 shares of the value of Rs.10
each as qualification shares. At an AGM in 2003, an ordinary
resolution was passed increasing the share qualification to
600 shares. The company then issued notice to the directors
who did not hold 600 shares to acquire additional shares
within one month. M, a director, who was asked to acquire
additional qualification shares, received the notice. Advice.
Answer
The alteration in the articles is invalid because :
(a) Special resolution required to alter the articles is not passed.
(b) It violates the provisions of Section 270 of the Companies Act,
1956.
Sub-section (2) of Section 270 provides that any provision in the
articles of the company shall be void in so far as it requires a person
to obtain qualification shares within a shorter time than two months
after his appointment as such.
Section 270(3) provides that the nominal value of these shares
must not exceed Rs.5000 or nominal value of one share where it
exceeds Rs.5000. Any provision requiring a director to hold as
qualification shares more than the said amount is invalid. Hence, M
need not purchase additional qualification shares.
Question 8
P was a director of XYZ Ltd. The shareholders of the company
by altering its Articles of Association made compulsory
qualification for directors to be at least graduate with
immediate effect. P who was not graduate was asked to quit.
Advise P.
Answer
The Companies Act, 1956 does not lay down any specific
academic qualification for appointment as a company director.
Section 274 specifies the circumstances in which a person cannot
be appointed as a director of a company, which does not include any
educational qualification. Compulsory qualification fixed by the
company in its Articles is violative of Section 274. Unlike a private
company, a public company cannot provide for additional
disqualifications as laid down in sub-section (3) of Section 273 and
hence P need not quit.
Question 9
Should a director who has attained the age of 65 years cease
to serve on the Board of the Company?
Answer
No age limit for Directors has been laid down in the Companies
Act, 1956 except the limit of 70 years for a Managing/whole-time
Director specified in Schedule XIII. However, Company Boards are
at liberty to fix an age limit for their Executive as well as Non-Executive
Directors.
Question 10
One of the directors has not attended any of the last four
Board meetings. Does it amount to vacation of office?
Answer
Section 283(1)(g) of the Companies Act, 1956 provides that a
director shall vacate his office in case he absents himself from three
consecutives meetings of the Board of directors or from all meetings
of the Board for a continuous period of three months, whichever is
longer, without obtaining leave of absence from the Board.
Student Company Secretary
Accordingly, the Director shall not vacate office, if:
(i) three months have not elapsed (i.e. last 4 Board meetings were
held within a period of three months); or
(ii) the director has obtained leave of absence from the Board.
Thus, the Board should check whether any of the above conditions
has been complied with or not. If not, the director is liable to vacate
his office.
Question 11
P, a director in a PSU is a nominee director of State
Government. Whether any general notice is required to be
given by him regarding companies in which he is interested?
Answer
The nominee directors appointed by the Government stand on
the same footing as other directors of the company. The duties,
responsibilities and obligations of all the directors are uniformly
controlled by the provisions of the Companies Act, 1956 and the
articles of association the company.
As per Section 299, every director who is in anyway, directly or
indirectly, interested in a contract or arrangement shall disclose the
nature of his interest. The provisions of Section 299 also apply to a
director nominated by the Government [Department Letter No.8/299/
63-PR, dated 20.9.1963]. Therefore, directors nominated by the State
Government or by the Central Government under Section 408 are
required to disclose the nature of their interest in any contract or
arrangement in accordance with the provisions of Section 299.
Question 12
X was appointed as a Managing Director for life by the
Articles of Association of a private company incorporated
on 1st June 2003. The articles empowered X to appoint a
successor. X appointed by will G to succeed him after his
death. Can G be Managing Director after the death of X?
Answer
Section 312 prohibits assignment of his office by a director and
such assignment shall be void. However, in case of private companies,
the appointment of successor does not amount to assignment of office.
The Supreme Court in Oriental Metal Pressing Works Pvt. Ltd. v.
Bhaskar Kashinath Thakur (1961), 31, Com Cases 143 held that where
in the case of a private company a managing director who was holding
his office for life and was empowered by the Articles to appoint a
successor, appointed by will G to succeed him as managing director
after his death, the appointment of the successor i.e. G will not
come within the prohibition of Section 312.
Question 13
Whether appointment of additional directors can be made
where such appointment makes the number of non-rotational
directors more than one-third of total strength of directors?
Answer
Section 260 provides that nothing in Sections 255, 258 or 259
shall affect any power conferred in the Board of Director by the articles
to appoint additional directors.
Accordingly, the Board may appoint additional directors even
though the inclusion of such additional directors in the category of
non-rotational directors will make the number of non-rotational
directors more than one-third of the total number of directors. The
condition is that the maximum strength fixed for the Board by the
articles shall not be exceeded.
Question 14
Which directorships are excluded from calculation of total
number of directorships which can be held by a person?
Answer
Section 278 of the Companies Act, 1956 lays down that
10 February 2006
 ACADEMIC GUIDANCE
directorships in the following companies shall be excluded for the
purpose of calculation of the permissible maximum limit:
(a) a private company which is neither a subsidiary nor a holding
company of a public company;
(b) an unlimited company;
(c) an association not carrying on business for profit or which
prohibits the payment of a dividend;
(d) a company in which a person is only an alternate director.
Question 15
Can D who is a director in 14 public limited companies accept
directorships of :
(i) ABC Pvt. Ltd., which is the holding company of a public
limited company; and
(ii) RM company which is an unlimited company.
Answer
(i) Directorship of D in ABC Pvt. Ltd. will be counted within the limit
of 15 companies prescribed under Section 275 of the Companies
Act, 1956. Section 278 excludes a private company which is not
a subsidiary or holding company of a public company while
calculating the directorships. Since, it is a holding company of a
public limited company, it will be counted within the limit.
(ii) RM Company is an unlimited company which is excluded under
Section 278. Therefore, it shall not be included in the limit of 15
companies and hence D can accept the directorship in RM Ltd.
also.
Question 16
What is sitting fee and how much of it should be payable?
Answer
Sitting fee is payable to a director for each meeting of the Board
of Directors or a committee thereof.
Rule 10B of the Companies (Central Governments) General Rules
and Forms, 1956 provides that for the purpose of the proviso to Section
309(2), the amount of remuneration by way of fee for each meeting of
the Board of Directors or a committee thereof, shall be as under:
(a) Companies with a paid-up Sitting fees not to exceed the sum
share capital and free of twenty thousand rupees.
reserves of Rs.10 crore
and above or turnover
of Rs.50 crore and above.
(b) Other companies Sitting fees not to exceed the sum
of ten thousand rupees.
Question 17
Mr. X, the Managing Director sends his notice of resignation.
Discuss the validity and its effect.
Answer
The resignation of a director takes effect immediately without any
need for its acceptance where the articles do not contain any provision
relating to resignation of directors or where the articles allow the
directors to resign at any time. However, a managing director cannot
resign by merely sending his resignation. His resignation becomes
effective only when the company accepts the resignation and relieves
him from the office. This is because he occupies two positions viz.
one that of a director and other that of an employee of the company.
An employee cannot resign at his pleasure by giving notice. Instead,
his resignation is required to be approved and accepted by the
company to relieve him from his duties and responsibilities. [Achutha
Pai v. ROC (1966) 36 Comp. Cas. 598]
Mr. X, the Managing Director therefore, cannot resign merely by
giving notice.
Student Company Secretary
Question 18
X, who was appointed as a Director at the last annual general
meeting resigned. The Board filled up the casual vacancy by
appointing Y. But within a few days of his becoming Director,
Y died. Can the Board fill up the casual vacancy by appointing
Z in place of Y in the next Board meeting?
Answer
Section 262 of the Companies Act, 1956 provides that in the case
of a public company or a private company which is a subsidiary of a
public company, if the office of any director appointed by the company
in general meeting is vacated before the expiry of his term of office in
the normal course, the resulting casual vacancy may, subject to any
regulations in the Articles of the company, be filled by the Board of
directors at a meeting of the Board.
The Board of directors is empowered to fill a casual vacancy only
in respect of a director appointed by the company in general meeting.
If a casual vacancy arises in the office of a director appointed in the
casual vacancy under Section 262, there is no casual vacancy within
the meaning of Section 262 and cannot be filled up by the Board of
directors. Consequently, Board cannot appoint Z in place of Y. Z may,
however, be appointed as an additional director.
Question 19
A, one of the shareholders of a company, filed a civil suit in a
Court for removal of directors B, C & E. Is the suit
maintainable?
Answer
A civil court has no jurisdiction to entertain a suit for removal of a
director since the matter relates to the internal management of the
company which is governed by the Companies Act, 1956. [Khetan
Industries Pvt.Ltd. v. Manju Ravindra Prasad Khetan (1995) 16 CLA
169 (Bom)].
Section 284 has given to the shareholders necessary powers to
remove a director and thus a civil court has no jurisdiction to entertain
a suit for removal of a director.
Refer Question No.5 of FAQs on Directors in November 2005,
page 10 issue of Student Company Secretary Bulletin. As the
question is silent on the provision contained in the Articles of
Association of the company regarding the retirement of directors
of the company. Therefore the answer to the said question is
reframed as below:
Question 20
Total strength of the Board of Directors of your company is
ten. How many directors are liable to retire by rotation at the
next annual general meeting?
Answer
As per section 255(1) of the Companies Act, 1956, if the Articles
provide for retirement of all directors at the every Annual General
Meeting, then all the directors (i.e. all the ten directors) shall be persons
liable to retire by rotation at the next Annual General Meeting.
If Articles do not provide for the retirement of all directors at every
annual general meeting, then in the case of a public company or a
private company which is a subsidiary of a public company, not less
than 2/3rd of total number of directors shall be persons liable to retire
by rotation. The 2/3rd of 10 shall be 6.66 i.e. 7 directors.
Section 256(1) of the Companies Act, 1956 provides that at the
first annual general meeting held after the appointment of first directors
in accordance with Section 255 and at every subsequent annual general
meeting, one-third of such of the directors for the time being as are
liable to retire by rotation, or if their number is not three or a multiple of
three, then the number nearest to one-third, shall retire from office.
Of these 7 directors liable to retire by rotation, nearest to 1/3rd
shall be 2 directors. Accordingly, 2 directors shall retire by rotation at
the next annual general meeting.
11 February 2006
 ACADEMIC GUIDANCE
TAXATION
TAX LAWS/DIRECT AND INDIRECT
LAWS/DIRECT
TAXATION-LA
AXATION-LA
TION-LAWW AND PRACTICE
Students appearing in Tax Laws (to the extent of topics covered in
the Syllabus) and Direct and Indirect Taxation-Law and Practice
Papers of Intermediate and Final Examination may take note of the
following changes in the Direct Tax portion, made by the Finance Act
2005 applicable for June 2006 Examination.
I INCOME TAX
1. SECTION 2DEFINITIONS
(a) In section 2 of the Income-tax Act, with effect from the 1st day of
April, 2006, in clause (7), sub-clause (a), for the words
assessment of his income or assessment of fringe benefits ,
the words assessment of his income has been substituted;
This has been done so as to provide that the term assessee
shall also include every person, being an employer in respect of
whom any proceeding under the Act has been taken for the
assessment of the fringe benefits in respect of which he is
assessable.
Also, after clause (23A), the following new clause (23B) has been
inserted, namely:
(23B) fringe benefits means any fringe benefits referred to in
section 115WB;;
(b) In Proviso to clause (42A), the words or a zero coupon bond
has been inserted after the words, brackets, figures and letter
clause (23D) of section 10.
This change has been made so as to treat zero coupon bond
held not for more than twelve months as a short-term capital
asset.
(c) In clause (43), the words, figures and letters and in relation to
the assessment year commencing on the 1st day of April, 2006,
and any subsequent assessment year includes the fringe benefit
tax payable under section 115WA has been inserted after the
words the aforesaid date.
Above change has been made so as to provide that the term
tax shall include the fringe benefit tax chargeable under the
new section 115WA.
(d) in clause (47), a new sub-clause (iva) has been inserted after
sub-clause (iv), which reads
(iva) the maturity or redemption of a zero coupon bond; or;
(e) A new clause (48) has been inserted after the existing clause
(47) and the Explanation relating thereto, which reads
(48) zero coupon bond means a bond
(a) issued by any infrastructure capital company or infrastructure
capital fund or public sector company on or after the 1st day of
June, 2005;
(b) in respect of which no payment and benefit is received or
receivable before maturity or redemption from infrastructure
capital company or infrastructure capital fund or public sector
company; and
(c) which the Central Government may, by notification in the Official
Gazette, specify in this behalf.
Explanation : For the purposes of this clause, the expressions
infrastructure capital company and infrastructure capital fund shall
have the same meanings respectively assigned to them in clauses
(a) and (b) of Explanation 1 to clause (23G) of section 10.
Prepared by Yogindu Khajuria, AEO, The ICSI.
Student Company Secretary
2. SECTION 10.INCOMES NOT INCLUDED IN TOTAL
INCOME
Section 10 has been amended in the following manner with effect
from the 1st day of April, 2006,
(a) In sub-clause (ii) of clause (4), the second proviso has been
omitted;
(b) in clause (6BB), the words, figures and letters entered into after
the 30th day of September, 2005 has been substituted for the
words, figures and letters entered into after the 31st day of March,
2005;
This has been done so as to allow the said exemption in respect
of all such agreements entered on or after 1st October, 2005.
(c) In sub-clause (c) of clause (10D), in the second proviso, the
words, brackets, figures and letters Explanation to sub-section
(3) of section 80C or the Explanation to sub-section (2A) of section
88, as the case may be has been substituted for the words,
brackets, figures and letter Explanation to sub-section (2A) of
section 88;
(d) In item (fa) of Clause (15)(iv), the words, figures and letters
before the 1st day of April, 2005 has been omitted;
(e) In proviso to clause (15A), the words, figures and letters the 1st
day of October, 2005 has been substituted for the words, figures
and letters the 1st day of April, 2005,.
3. SECTION 10A.SPECIAL PROVISION IN RESPECT OF
NEWLY ESTABLISHED UNDERTAKINGS IN FREE
TRADE ZONE, ETC.
In sub-section (1A), after clause (ii), the following proviso has been
inserted with effect from the 1st day of April, 2006, namely:
Provided that no deduction under this section shall be allowed to
an assessee who does not furnish a return of his income on or before
the due date specified under sub-section (1) of section 139..
4. SECTION 16.DEDUCTIONS FROM SALARIES
In section 16 of the Income-tax Act, clause (i) has been omitted
with effect from the 1st day of April, 2006.
5. SECTION 17-SALARY, PERQUISITE AND PROFITS IN
LIEU OF SALARY DEFINED
In clause (2), for the existing sub-clause (vi), new sub-clause (vi)
has been substituted, with effect from the 1st day of April, 2006,
namely:
(vi) the value of any other fringe benefit or amenity (excluding
the fringe benefits chargeable to tax under Chapter XII-H) as may be
prescribed:.
This change has been made to provide that the value of any other
fringe benefit or amenity which may be prescribed, shall exclude those
fringe benefits which are chargeable to tax under Chapter XII-H .
This amendment is therefore consequential in nature.
6. SECTION 32.DEPRECIATION
In section 32 of the Income-tax Act, in sub-section (1),
(a) for the existing clause (iia), the following new clause (iia) has
been substituted with effect from the 1st day of April, 2006, which
reads
(iia) in the case of any new machinery or plant (other than ships
and aircraft), which has been acquired and installed after the
31st day of March, 2005, by an assessee engaged in the business
of manufacture or production of any article or thing, a further
sum equal to twenty per cent of the actual cost of such machinery
or plant shall be allowed as deduction under clause (ii):
Provided that no deduction shall be allowed in respect of
(A) any machinery or plant which, before its installation by the
assessee, was used either within or outside India by any
other person; or
12 February 2006
 ACADEMIC GUIDANCE
(B) any machinery or plant installed in any office premises or
any residential accommodation, including accommodation
in the nature of a guest-house; or
(C) any office appliances or road transport vehicles; or
(D) any machinery or plant, the whole of the actual cost of which
is allowed as a deduction (whether by way of depreciation
or otherwise) in computing the income chargeable under
the head Profits and gains of business or profession of
any one previous year;;
(b) In clause (iii), in the Explanation, in clause (2), the words,
brackets, letter and figures an Indian company or in a scheme
of amalgamation of a banking company, as referred to in clause
(c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)
with a banking institution as referred to in sub-section (15) of
section 45 of the said Act, sanctioned and brought into force by
the Central Government under sub-section (7) of section 45 of
that Act, of any asset by the banking company to the banking
institution has been substituted for the words an Indian
company,.
7. SECTION 33AC.RESERVE FOR SHIPPING BUSINESS
In sub-section (4), the words, brackets, letter and figure so much
of such sale proceeds which represent the amount credited to the
reserve account and utilised for the purposes mentioned in clause
(c) of sub-section (3) has been substituted and shall be deemed to
have been substituted with effect from the 1st day of April, 2004 for
the words, such sale proceeds,.
This has been done so as to provide that only so much amount of
the sale proceeds which represent the amount credited to the reserve
account and utilized for acquisition of the ship would be deemed to
be the profits.
8. SECTION 35.EXPENDITURE ON SCIENTIFIC
RESEARCH
In clause (5) to sub-section (2AB), the figures, letters and words
31st day of March, 2007 has been substituted with effect from the
1st day of April, 2006 for the figures, letters and words 31st day of
March, 2005,.
This change has been made to provide that deduction under the
said sub-section shall be allowed with regard to such expenditure
incurred upto 31st March, 2007.
9. SECTION 35DDA.AMORTISATION OF EXPENDITURE
IN CASE OF AMALGAMATION OR DEMERGER
In sub-section (1), the words in connection with his voluntary
retirement shall be substituted and shall be deemed to have been
substituted with effect from the 1st day of April, 2004 for the words
at the time of his voluntary retirement,.
Above change has been made so as to allow the whole expenditure
incurred by the assessee in making payment to the employee in
connection with his voluntary retirement either in the year of retirement
or in any subsequent year, each part payment being entitled to
deduction in five equal annual instalments beginning from the year in
which such part payment is made to the employee.
10. SECTION 36.OTHER DEDUCTIONS
In sub-section (1), with effect from the 1st day of April, 2006, a
new clause (iiia) has been inserted after clause (iii), which reads:
(iiia) the pro rata amount of discount on a zero coupon bond
having regard to the period of life of such bond calculated in the
manner as may be prescribed.
Explanation : For the purposes of this clause, the expressions
(i) discount means the difference between the amount received
or receivable by the infrastructure capital company or
infrastructure capital fund or public sector company issuing the
bond and the amount payable by such company or fund or public
sector company on maturity or redemption of such bond;
Student Company Secretary
(ii) period of life of the bond means the period commencing from
the date of issue of the bond and ending on the date of the
maturity or redemption of such bond;
(iii) infrastructure capital company and infrastructure capital fund
shall have the same meanings respectively assigned to them in
clauses (a) and (b) of Explanation 1 to clause (23G) of section
10;
Also, after the existing clause (xii), a new clause (xiii) has been
inserted, namely:
(xiii) any amount of banking cash transaction tax paid by the
assessee during the previous year on the taxable banking
transactions entered into by him.
Explanation : For the purposes of this clause, the expressions
banking cash transaction tax and taxable banking transaction shall
have the same meanings respectively assigned to them under Chapter
VII of the Finance Act, 2005..
This has been done to provide deduction in respect of banking
cash transaction tax paid by the assessee during the year on the
taxable banking transactions entered into by him. Explanation to this
section provides that for the purposes of this clause the expressions
banking cash transaction tax and the taxable banking transaction
shall have the same meanings respectively assigned to them under
Chapter VII of the Finance Act 2005.
11. SECTION 40.AMOUNTS NOT DEDUCTIBLE
In clause (a), after sub-clause (ib), a new sub-clause (ic) has been
inserted with effect from the 1st day of April, 2006, namely:
(ic) any sum paid on account of fringe benefit tax under Chapter
XII-H;.
12. SECTION 47.TRANSACTIONS NOT REGARDED AS
TRANSFER
A new clause (viaa) has been inserted after the existing clause
(via), which reads
(viaa) any transfer, in a scheme of amalgamation of a banking
company with a banking institution sanctioned and brought into force
by the Central Government under sub-section (7) of section 45 of the
Banking Regulation Act, 1949 (10 of 1949), of a capital asset by the
banking company to the banking institution.
Explanation : For the purposes of this clause,
(i) banking company shall have the same meaning assigned to it
in clause (c) of section 5 of the Banking Regulation Act, 1949
(10 of 1949);
(ii) banking institution shall have the same meaning assigned to it
in sub-section (15) of section 45 of the Banking Regulation Act,
1949 (10 of 1949);.
Above amendment has been made so as to provide that the
provisions of Section 45 shall not be applicable in respect of any
transfer of a capital asset by a banking company to a banking
institution in a scheme of amalgamation of such banking company
with such banking institution sanctioned and brought into force by
the Central Government under sub-section (7) of section 45 of the
Banking Regulation Act, 1949. The Explanation to this section defines
the meaning of expressions banking company and banking
institution used in clause (viaa).
13. SECTION 49.COST WITH REFERENCE TO CERTAIN
MODES OF ACQUISITION
In sub-section (1)(iii), in sub-clause (e), after the words, brackets,
figures and letter or clause (via), the words, brackets, figures and
letters or clause (viaa) has been inserted.
14. SECTION 54EC.CAPITAL GAIN NOT TO BE CHARGED
ON INVESTMENT IN CERTAIN BONDS
A new sub-section (3) has been substituted for the existing sub-
section (3), with effect from the 1st day of April, 2006, namely:
13 February 2006
 ACADEMIC GUIDANCE
(3) Where the cost of the long-term specified asset has been
taken into account for the purposes of clause (a) or clause (b) of sub-
section (1),
(a) a deduction from the amount of income-tax with reference to
such cost shall not be allowed under section 88 for any
assessment year ending before the 1st day of April, 2006;
(b) a deduction from the income with reference to such cost shall
not be allowed under section 80C for any assessment year
beginning on or after the 1st day of April, 2006..
This has been done in order to provide that where the cost of the
long term specified asset has been taken into account for the purposes
of exemption under this section, a deduction from the income with
reference to such cost shall not be allowed under new Section 80C.
15. SECTION 54ED.CAPITAL GAIN ON TRANSFER OF
CERTAIN LISTED SECURITIES OR UNIT, NOT TO BE
CHARGED IN CERTAIN CASES
A new sub-section (3) has been substituted for the existing sub-
section (3), with effect from the 1st day of April, 2006, namely:
(3) Where the cost of the specified equity shares has been taken
into account for the purposes of clause (a) or clause (b) of sub-section
(1),
(a) a deduction from the amount of income-tax with reference to
such cost shall not be allowed under section 88 for any
assessment year ending before the 1st day of April, 2006;
(b) a deduction from the income with reference to such cost shall
not be allowed under section 80C for any assessment year
beginning on or after the 1st day of April, 2006..
16. INSERTION OF NEW SECTION 72AA
After existing Section 72A of the Act, a new Section 72AA stating
the provisions relating to carry forward and set-off of accumulated
loss and unabsorbed depreciation allowance in scheme of
amalgamation of banking company in certain cases has been inserted,
namely:
72AA. Provisions relating to carry forward and set-off of
accumulated loss and unabsorbed depreciation allowance in scheme
of amalgamation of banking company in certain cases.
Notwithstanding anything contained in sub-clauses (i) to (iii) of clause
(1B) of section 2 or section 72A, where there has been an
amalgamation of a banking company with any other banking institution
under a scheme sanctioned and brought into force by the Central
Government under sub-section (7) of section 45 of the Banking
Regulation Act, 1949 (10 of 1949), the accumulated loss and the
unabsorbed depreciation of such banking company shall be deemed
to be the loss or, as the case may be, allowance for depreciation of
such banking institution for the previous year in which the scheme of
amalgamation was brought into force and other provisions of this Act
relating to set-off and carry forward of loss and allowance for
depreciation shall apply accordingly.
Explanation : For the purposes of this section,
(i) accumulated loss means so much of the loss of the
amalgamating banking company under the head Profits and
gains of business or profession (not being a loss sustained in a
speculation business) which such amalgamating banking
company, would have been entitled to carry forward and set-off
under the provisions of section 72 if the amalgamation had not
taken place;
(ii) banking company shall have the same meaning assigned to it
in clause (c) of section 5 of the Banking Regulation Act, 1949
(10 of 1949);
(iii) banking institution shall have the same meaning assigned to it
in sub-section (15) of section 45 of the Banking Regulation Act,
1949 (10 of 1949);
(iv) unabsorbed depreciation means so much of the allowance for
Student Company Secretary
depreciation of the amalgamating banking company which
remains to be allowed and which would have been allowed to
such banking company if amalgamation had not taken place..
This amendment provides that where a banking company has
been amalgamated with a banking institution under a scheme
sanctioned and brought into force by the Central Government under
sub-section (7) of section 45 of the Banking Regulation Act, 1949,
the accumulated loss and unabsorbed depreciation of the
amalgamating banking company shall be deemed to be the loss or
the allowance for depreciation of the banking institution with which
the banking company has been amalgamated and all the provisions
contained in the income-tax Act relating to set-off and carry forward
of loss and unabsorbed depreciation shall apply accordingly.
17. SECTION 73.LOSSES IN SPECULATION BUSINESS
In sub-section (4), the words four assessment years has been
substituted with effect from the 1st day of April, 2006 for the words
eight assessment years.
18. INSERTION OF NEW SECTION 80C
After section 80B of the Income-tax Act, new Section 80C providing
for deduction in respect of life insurance premia, deferred annuity,
contributions to provident fund, subscription to certain equity shares
or debentures, etc. has been inserted with effect from the 1st day of
April, 2006, which reads:
80C.(1) In computing the total income of an assessee, being
an individual or a Hindu undivided family, there shall be deducted, in
accordance with and subject to the provisions of this section, the
whole of the amount paid or deposited in the previous year, being the
aggregate of the sums referred to in sub-section (2), as does not
exceed one lakh rupees.
(2) The sums referred to in sub-section (1) shall be any sums paid
or deposited in the previous year by the assessee
(i) to effect or to keep in force an insurance on the life of persons
specified in sub-section (4);
(ii) to effect or to keep in force a contract for a deferred annuity, not
being an annuity plan referred to in clause (xii), on the life of
persons specified in sub-section (4):
Provided that such contract does not contain a provision for the
exercise by the insured of an option to receive a cash payment
in lieu of the payment of the annuity;
(iii) by way of deduction from the salary payable by or on behalf of
the Government to any individual being a sum deducted in
accordance with the conditions of his service, for the purpose of
securing to him a deferred annuity or making provision for his
spouse or children, in so far as the sum so deducted does not
exceed one-fifth of the salary;
(iv) as a contribution by an individual to any provident fund to which
the Provident Funds Act, 1925 (19 of 1925), applies;
(v) as a contribution to any provident fund set up by the Central
Government and notified by it in this behalf in the Official Gazette,
where such contribution is to an account standing in the name
of any person specified in sub-section (4);
(vi) as a contribution by an employee to a recognised provident fund;
(vii) as a contribution by an employee to an approved superannuation
fund;
(viii) as subscription to any such security of the Central Government
or any such deposit scheme as that Government may, by
notification in the Official Gazette, specify in this behalf;
(ix) as subscription to any such savings certificate as defined in
clause (c) of section 2 of the Government Savings Certificates
Act, 1959 (46 of 1959), as the Central Government may, by
notification in the Official Gazette, specify in this behalf;
(x) as a contribution, in the name of any person specified in sub-
14 February 2006
 ACADEMIC GUIDANCE
section (4), for participation in the Unit-linked Insurance Plan,
1971 (hereafter in this section referred to as the Unit-linked
Insurance Plan) specified in Schedule II of the Unit Trust of India
(Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(xi) as a contribution in the name of any person specified in sub-
section (4) for participation in any such unit-linked insurance
plan of the LIC Mutual Fund notified under clause (23D) of section
10, as the Central Government may, by notification in the Official
Gazette, specify in this behalf;
(xii) to effect or to keep in force a contract for such annuity plan of
the Life Insurance Corporation or any other insurer as the Central
Government may, by notification in the Official Gazette, specify;
(xiii) as subscription to any units of any Mutual Fund notified under
clause (23D) of section 10 or from the Administrator or the
specified company under any plan formulated in accordance with
such scheme as the Central Government may, by notification in
the Official Gazette, specify in this behalf;
(xiv) as a contribution by an individual to any pension fund set up by
any Mutual Fund notified under clause (23D) of section 10 or by
the Administrator or the specified company, as the Central
Government may, by notification in the Official Gazette, specify
in this behalf;
(xv) as subscription to any such deposit scheme of, or as a
contribution to any such pension fund set up by, the National
Housing Bank established under section 3 of the National
Housing Bank Act, 1987 (53 of 1987) (hereafter in this section
referred to as the National Housing Bank), as the Central
Government may, by notification in the Official Gazette, specify
in this behalf;
(xvi) as subscription to any such deposit scheme of
(a) a public sector company which is engaged in providing long-
term finance for construction or purchase of houses in India
for residential purposes; or
(b) any authority constituted in India by or under any law enacted
either for the purpose of dealing with and satisfying the need
for housing accommodation or for the purpose of planning,
development or improvement of cities, towns and villages,
or for both, as the Central Government may, by notification
in the Official Gazette, specify in this behalf;
(xvii)as tuition fees (excluding any payment towards any development
fees or donation or payment of similar nature), whether at the
time of admission or thereafter,
(a) to any university, college, school or other educational
institution situated within India;
(b) for the purpose of full-time education of any of the persons
specified in sub-section (4);
(xviii)for the purposes of purchase or construction of a residential
house property the income from which is chargeable to tax under
the head Income from house property (or which would, if it had
not been used for the assessees own residence, have been
chargeable to tax under that head), where such payments are
made towards or by way of
(a) any instalment or part payment of the amount due under
any self-financing or other scheme of any development
authority, housing board or other authority engaged in the
construction and sale of house property on ownership basis;
or
(b) any instalment or part payment of the amount due to any
company or co-operative society of which the assessee is
a shareholder or member towards the cost of the house
property allotted to him; or
(c) repayment of the amount borrowed by the assessee from
(1) the Central Government or any State Government, or
(2) any bank, including a co-operative bank, or
(3) the Life Insurance Corporation, or
Student Company Secretary
(4) the National Housing Bank, or
(5) any public company formed and registered in India with
the main object of carrying on the business of providing
long-term finance for construction or purchase of
houses in India for residential purposes which is eligible
for deduction under clause (viii) of sub-section (1) of
section 36, or
(6) any company in which the public are substantially
interested or any co-operative society, where such
company or co-operative society is engaged in the
business of financing the construction of houses, or
(7) the assessees employer where such employer is an
authority or a board or a corporation or any other body
established or constituted under a Central or State Act,
or
(8) the assessees employer where such employer is a
public company or a public sector company or a
university established by law or a college affiliated to
such university or a local authority or a co-operative
society; or
(d) stamp duty, registration fee and other expenses for the
purpose of transfer of such house property to the assessee,
but shall not include any payment towards or by way of
(A) the admission fee, cost of share and initial deposit which
a shareholder of a company or a member of a co-
operative society has to pay for becoming such
shareholder or member; or
(B) the cost of any addition or alteration to, or renovation
or repair of, the house property which is carried out
after the issue of the completion certificate in respect
of the house property by the authority competent to
issue such certificate or after the house property or
any part thereof has either been occupied by the
assessee or any other person on his behalf or been let
out; or
(C) any expenditure in respect of which deduction is
allowable under the provisions of section 24;
(xix) as subscription to equity shares or debentures forming part of
any eligible issue of capital approved by the Board on an
application made by a public company or as subscription to any
eligible issue of capital by any public financial institution in the
prescribed form.
Explanation : For the purposes of this clause,
(i) eligible issue of capital means an issue made by a public
company formed and registered in India or a public financial
institution and the entire proceeds of the issue are utilised
wholly and exclusively for the purposes of any business
referred to in sub-section (4) of section 80-IA;
(ii) public company shall have the meaning assigned to it in
section 3 of the Companies Act, 1956 (1 of 1956);
(iii) public financial institution shall have the meaning assigned
to it in section 4A of the Companies Act, 1956 (1 of 1956);
(xx) as subscription to any units of any mutual fund referred to in
clause (23D) of section 10 and approved by the Board on an
application made by such mutual fund in the prescribed form:
Provided that this clause shall apply if the amount of subscription
to such units is subscribed only in the eligible issue of capital of any
company.
Explanation : For the purposes of this clause eligible issue of capital
means an issue referred to in clause (i) of the Explanation to clause
(xix) of sub-section (2).
(3) The provisions of sub-section (2) shall apply only to so much
of any premium or other payment made on an insurance policy other
than a contract for a deferred annuity as is not in excess of twenty
per cent of the actual capital sum assured.
15 February 2006
 ACADEMIC GUIDANCE
Explanation : In calculating any such actual capital sum assured, no
account shall be taken
(i) of the value of any premiums agreed to be returned, or
(ii) of any benefit by way of bonus or otherwise over and above the
sum actually assured, which is to be or may be received under
the policy by any person.
(4) The persons referred to in sub-section (2) shall be the following,
namely:
(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-
section,
(i) in the case of an individual, the individual, the wife or
husband and any child of such individual, and
(ii) in the case of a Hindu undivided family, any member
thereof;
(b) for the purposes of clause (ii) of that sub-section, in the
case of an individual, the individual, the wife or husband
and any child of such individual;
(c) for the purpose of clause (xvii) of that sub-section, in the
case of an individual, any two children of such individual.
(5) Where, in any previous year, an assessee
(i) terminates his contract of insurance referred to in clause (i)
of sub-section (2), by notice to that effect or where the
contract ceases to be in force by reason of failure to pay
any premium, by not reviving contract of insurance,
(a) in case of any single premium policy, within two years
after the date of commencement of insurance; or
(b) in any other case, before premiums have been paid for
two years; or
(ii) terminates his participation in any unit-linked insurance plan
referred to in clause (x) or clause (xi) of sub-section (2), by
notice to that effect or where he ceases to participate by
reason of failure to pay any contribution, by not reviving his
participation, before contributions in respect of such
participation have been paid for five years; or
(iii) transfers the house property referred to in clause (xviii) of
sub-section (2) before the expiry of five years from the end
of the financial year in which possession of such property is
obtained by him, or receives back, whether by way of refund
or otherwise, any sum specified in that clause,
then,
(a) no deduction shall be allowed to the assessee under
sub-section (1) with reference to any of the sums,
referred to in clauses (i), (x), (xi) and (xviii) of sub-section
(2), paid in such previous year; and
(b) the aggregate amount of the deductions of income so
allowed in respect of the previous year or years
preceding such previous year, shall be deemed to be
the income of the assessee of such previous year and
shall be liable to tax in the assessment year relevant to
such previous year.
(6) If any equity shares or debentures, with reference to the cost of
which a deduction is allowed under sub-section (1), are sold or
otherwise transferred by the assessee to any person at any time
within a period of three years from the date of their acquisition,
the aggregate amount of the deductions of income so allowed in
respect of such equity shares or debentures in the previous year
or years preceding the previous year in which such sale or transfer
has taken place shall be deemed to be the income of the
assessee of such previous year and shall be liable to tax in the
assessment year relevant to such previous year.
Explanation : A person shall be treated as having acquired any shares
or debentures on the date on which his name is entered in relation to
those shares or debentures in the register of members or of
debentureholders, as the case may be, of the public company.
(7) For the purposes of this section,
Student Company Secretary
(a) the insurance, deferred annuity, provident fund and
superannuation fund referred to in clauses (i) to (vii);
(b) unit-linked insurance plan and annuity plan referred to in
clauses (xii) to (xiiia);
(c) pension fund and subscription to deposit scheme referred
to in clauses (xiiic) to (xiva);
(d) amount borrowed for purchase or construction of a
residential house referred to in clause (xv), of sub-section
(2) of section 88 shall be eligible for deduction under the
corresponding provisions of this section and the deduction
shall be allowed in accordance with the provisions of this
section.
(8) In this section,
(i) Administrator means the Administrator as referred to in
clause (a) of section 2 of the Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 (58 of 2002);
(ii) contribution to any fund shall not include any sums in
repayment of loan;
(iii) insurance shall include
(a) a policy of insurance on the life of an individual or the
spouse or the child of such individual or a member of a
Hindu undivided family securing the payment of specified
sum on the stipulated date of maturity, if such person is
alive on such date notwithstanding that the policy of
insurance provides only for the return of premiums paid
(with or without any interest thereon) in the event of such
person dying before the said stipulated date;
(b) a policy of insurance effected by an individual or a
member of a Hindu undivided family for the benefit of a
minor with the object of enabling the minor, after he has
attained majority to secure insurance on his own life by
adopting the policy and on his being alive on a date (after
such adoption) specified in the policy in this behalf;
(iv) Life Insurance Corporation means the Life Insurance
Corporation of India established under the Life Insurance
Corporation Act, 1956 (31 of 1956);
(v) public company shall have the same meaning as in section
3 of the Companies Act, 1956 (1 of 1956);
(vi) security means a Government security as defined in clause
(2) of section 2 of the Public Debt Act, 1944 (18 of 1944);
(vii) specified company means a company as referred to in
clause (h) of section 2 of the Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 (58 of 2002);
(viii) transfer shall be deemed to include also the transactions
referred to in clause (f) of section 269UA..
This amendment is consequential in nature.
19. SECTION 80CCC.DEDUCTION IN RESPECT OF
CONTRIBUTION TO CERTAIN PENSION FUNDS.
A new sub-section (3) has been substituted for the existing Sub-
section (3) with effect from the 1st day of April, 2006, which reads:
(3) Where any amount paid or deposited by the assessee has
been taken into account for the purposes of this section,
(a) a rebate with reference to such amount shall not be allowed
under section 88 for any assessment year ending before the 1st
day of April, 2006;
(b) a deduction with reference to such amount shall not be allowed
under section 80C for any assessment year beginning on or
after the 1st day of April, 2006..
This change has been made so as to provide that where any
amount paid or deposited by the assessee, has been allowed as a
deduction under the aforesaid section, a deduction with reference to
such amount shall not be allowed under Section 80C.
[... To be continued in March, 06 Issue of this Bulletin.]
16 February 2006
 ACADEMIC GUIDANCE

UNIFORMITY IN SIGNATURES ATTENTION STUDENTS!

It has been observed that some of the enrolment TRAINING
applications/letters received from the students are either
unsigned or bear different signatures from time to time. It has been observed that the students opting for undergoing
15 months training with Company Secretaries in whole-time
All the students are, therefore, advised to maintain
Practice are submitting the Contract of Apprenticeship and other
uniformity in their signatures on all the correspondence
relevant documents and registration fees to the Institute after a
with the Institute including student identity card and
enrolment application for appearing in the examination. considerable period of time.
As per the Training Guidelines, the students should submit
the underlisted documents within 15 days from the
ATTENTION STUDENTS commencement of training to enable the institute to take their
Applicability of Latest Finance Act and other changes for training on record with effect from the date of execution of
Company Secretary June 2006 Examination. Contract.
DIRECT TAXES (i) Contract of Apprenticeship in duplicate on a non-judicial
stamp paper of requisite value as applicable to the particu-
All the students may kindly note that for the June 2006
Examination session, in respect of Direct Taxes, the applicable lar State, where the contract is executed.
Assessment Year shall be 2006-07 (Previous year 2005-06). The Contract should be executed by both the parties
Thus, they will have to study Finance Act, 2005 for June viz., the trainee and the Company Secretary in whole-
2006 examination. Further, as per the syllabus students are time Practice.
required to update themselves about all the Circulars, (ii) Statement of Particulars to be submitted in duplicate for
Clarifications, Notifications issued by CBDT & Central registration as a trainee (Part A & B).
Government, which come in to effect on or before 6 months (iii) Rs. 50/- being the Registration Fee.
prior to the date of the respective Examination. If the aforesaid documents/information is not received within
Gift Tax Act has been excluded from the scope of the stipulated time, the training shall not be taken on record.
examination from June 1999 session onwards unless otherwise
informed.
INDIRECT TAXES
Students appearing in the Tax Laws (Indirect Tax portion
to the extent of topics covered in the syllabus) and Direct and
Indirect Taxation-Law and Practice (Indirect tax portion) paper
of the Intermediate and Final Courses respectively may please
take note of the following changes applicable for June, 2006
Examination:
1. All changes made by the Finance Act, 2005.
2. All Circulars, Clarifications/Notifications issued by CBE&C/
Central Government which became effective six months
prior to the date of examination.

TRAINING DIARY
Every student sponsored for 15 months' training either in a
company or under a company secretary in practice, is essentially
required to maintain a Training Diary brought out by the Institute.
The trainees are required to record all activities/jobs undertaken on
daily basis in the Training Diary during the entire period of training.
The Training Diary can be purchased from the Headquarters and
the Regional Offices located at EIRC, NIRC, SIRC, WIRC and also
at the Chapter Offices at Ahmedabad, Bangalore, Chandigarh,
Jaipur, Hyderabad and Pune. The cost of a Training Diary is Rs.
100/-. The Training Diary is being sent to students by Un-registered
and Registered post only at the following rates.
1. Unregistered Parcel = Rs. 40/- per diary
2. Registered Parcel = Rs. 55/- per diary
Students are advised to maintain the Diary as per the Training
Guidelines and submit the same to the Training Department along
with the Training Completion Certificate.

Student Company Secretary 17 February 2006

 LEGAL WORLD
LEGAL WORLD
Compiled by T.K.A. Padmanabhan, FCS, Advocate, New Delhi.
CORPORATE LAWS
LW(S) 6.02.2006
SHERNO INVESTMENT & FINANCE LTD v. REGISTRAR OF
COMPANIES [(2006) 70 CLA 21 (Guj)] Jayant Patel,J. [Decided
on 6.9.2005]
Companies Act, 1956 - Sections 21 read with section 394 -
Amalgamation of companies - Scheme provided for change of
name of transferee company - Scheme sanctioned by the court -
company filed the order of the court with ROC - ROC refused to
effect change of name and insisted that procedure laid down
under section 21 should be followed - Whether the contention of
the ROC is valid - Held, No.
Brief Facts : The applicant company filed the sanction order of the
court with the ROC and requested him to issue a certificate of
incorporation by incorporating the change of name in accordance
with the scheme sanctioned by the court. The ROC insisted that the
company should follow the procedure laid down under section 21 of
the Act and refused to effect the change of name. It is pertinent to
point out here that the ROC took the same objection before the court
when the petition for sanction of the scheme of amalgamation came
up before the Court and the court dismissed the objection of the
ROC and sanctioned the scheme which provided for the change of
name of the transferee company. The applicant company moved the
court against the refusal of the ROC.
Decision : Application allowed.
Reason : It appears that when the scheme which was proposed is
on the basis of the resolution of the company, the same can be the
basis, together with the sanction order passed by this court and in
the event such meeting is dispensed with by this court while
sanctioning the scheme under section 394, mere reference to the
order of this court will be sufficient. In any event, such format cannot
be validly pressed in service as against the implementation of the
order of this court sanctioning the scheme for amalgamation. It would
be for opponent to correct the format accordingly and to issue the
necessary certificate by implementing the order already passed by
this court. In the result, the only answer would be that it is not open to
the Registrar of Companies to raise objection for change of name,
which is part of the scheme of amalgamation duly sanctioned by this
court on the ground that separate procedure under section 21 of the
Act is not followed or is required to be followed.
LW(S) 7.02.2006
THE UP STOCK EXCHANGE ASSOCIATION LTD v. VEGPRO
FOODS & FEEDS LTD [(2005) 6 COMP LJ 397 (ALL)] Sunil
Ambwani, J. [Decided on 29.8.2005]
Companies Act, 1956 - Section 433 (10(e) - Read with section
22(1) of the SICA -Respondent company registered with BIFR -
Failed to pay annual listing fees to the petitioner association -
petitioner filed winding up petition against the respondent -
Whether maintainable - Held, No.
Brief Facts :The respondent company was listed with the petitioner.
The respondent became a sick company and a reference was made
to the BIFR under the SICA. The respondent did not pay the annual
listing fee to the petitioner. The petitioner filed a winding up petition
against the respondent company on the ground that in spite of the
statutory demand notice, dues towards annual listing fees had
remained unpaid. The respondent company resisted the petition on
the ground that the petitioner had not obtained the permission from
the BIFR to file the winding up petition.
Decision : Petition dismissed.
Student Company Secretary
Reason : The bar under section 22(10) of the SICA is applicable as
soon as the reference under section 15(1) of the Act is registered by
BIFR and in such case, no company petition to wind up such company,
shall lie or proceed with, subject to exception that it may be instituted
or proceeded with the sanction of the BIFR or as the case may be, by
the Appellate Authority. In the present case, the petitioner has not
applied to the BIFR for permission to file company petition, and as
such, no exception can be taken. The company petition is accordingly
dismissed with liberty to the petitioner to either apply to BIFR for
permission to file a company petition to wind up the respondent
company or await the conclusion of the proceedings before the BIFR.
LW(S) 8.02.2006
JUMGO COTTON ENTERPRISES v. RAYALASEEMA MILLS LTD
[(2005) 6 COMP LJ 355 (AP)] S.Ananda Reddy, J. [Decided on
20.4.2005]
Companies Act, 1956 - Section 433 Winding up - Inability to pay
debts - Agreements between the parties required reconciliation
of petitioners claim with the books of accounts of the respondent
company - Alleged claims were not reconciled - Whether there is
ascertained and determined debt entitling the petitioner to
maintain the winding up petition - Held, No.
Brief facts : Petitioner firm along with its sister concerns and the
respondent company had many cross dealings. An agreement was
entered into between the parties on 16.2.1997 where in the respondent
company agreed to pay the amounts due to the petitioner to its sister
concern. Later this agreement was amended and fresh agreements
were entered into by them on 19.1.2000 and 21.3.2001. These
agreements stipulated that claims of the petitioner firm should be
reconciled with the books of accounts of the respondent company.
The alleged claim of the petitioner was not reconciled with the books
of account of the respondent company. The respondent company
failed to pay the petitioner firm and the petitioner filed a winding up
petition based on these agreements and also claiming that there was
a running account between the parties up to 23.3.2002. The
respondent company resisted the petition on the grounds that there
was no ascertained and determined debt and that it was time barred.
Decision : Petition dismissed.
Reason : The petitioner claims that it is entitled to make a demand
even with reference to its sister concern with regard to the amount of
liability from the respondent. Though there was a reference to the
same in the earliest agreement dated 16.2.1997, there is no
subsequent reference to the same in later agreements dated
19.1.2000 and 21.3.2001. With reference to the interest claimed by
the petitioner firm, there is no specific provision under the later
agreements and finally according to the petitioner the last agreement
was entered into on 21.3.2001 and thereafter, there was a running
account, which was continued up to 31.5.2002. But no material was
placed on record showing that there was any running account till
31.5.2002 between the parties. The copies of the accounts filed for
the broken periods show that the account continued till 23.3.2002
and thereafter, there is only a letter of the petitioner firm dated 9.5.2002
under which the petitioner claimed only a sum of Rs.12, 82,000 and
not the amount of Rs.95, 15,697 which the petitioner had shown as
liability in the statutory notice. Further, even during the alleged running
account between the parties, there is no communication from the
respondent admitting any liability. In addition all the agreements
stipulate that alleged claims of the petitioner firm are required
reconciliation with the books of the respondent company. Admittedly
there is no such reconciliation made. When once there is no
reconciliation of the claims of the petitioner with the books of the
respondent company, it is difficult to accept the claim of the petitioner
that there is an ascertained and determined debt. When there is no
ascertained and determined debt, the petitioner cannot maintain a
winding up petition. In addition, even assuming that the running
account continued up to 23.3.2002, if the said debt is taken into
account even from that date also, the claim is barred by limitation, as
18 February 2006
 LEGAL WORLD
three year period had elapsed by the date the company petition was
taken up for hearing. Since no winding up order is passed within the
period of three years from the alleged date of running account between
the petitioner and the respondent, (even assuming it to be true) the
present claim is barred by limitation.
GENERAL LAWS
LW(S) 9.02.2006
APPAREL EXPORT PROMOTION COUNCIL v. PRABHATI PATNI
& ANR [125(2005) DLT 511] Badar Durrez Ahmed, J. [Decided on
1.12.2005]
Arbitration and Conciliation Act, 1996 - Section 34 - Challenge of
award - Contract between the parties confers exclusive
jurisdiction on Jaipur court - Arbitration proceedings held in Delhi
and award made - Whether courts in Delhi have jurisdiction to
entertain the petition - Held No.
Brief Facts : The petitioner and the respondent had entered into a
contract and exclusively reserved the jurisdiction to the courts of Jaipur,
besides providing for arbitration to resolve disputes that may arise
from the contract. Disputes arose between them and the same was
referred to arbitration. Arbitration proceedings were held in Delhi and
the arbitral award was made in Delhi. Dissatisfied with the award, the
petitioner challenged the award in the High Court of Delhi and the
Respondent challenged the award by filing an objection petition in
the district courts of Jaipur. The respondent objected to the petition
of the petitioner contending, inter alia, that the Delhi court had no
territorial jurisdiction to entertain the petition of challenging the award.
The petitioner contended that since the arbitration was held in Delhi
and the award was made in Delhi, courts in Delhi had jurisdiction to
entertain the objection petition.
Decision : Petition dismissed.
Reason : Where two or more competent courts have jurisdiction to
entertain a matter, if the parties by contract agree to fix jurisdiction in
only one of them, then such a contract or agreement would have to
be held to be valid. The consequences thereof would be that the
court on which the jurisdiction was conferred by agreement would be
the only court entitled to exercise such jurisdiction. Assuming that
this court otherwise has jurisdiction, in view of Clause 7 of the
agreement, such jurisdiction has been excluded by agreement
between the parties and only the Courts at Jaipur would have
jurisdiction in the matter. In view of the discussions above, it becomes
clear that even if this Court had jurisdiction, assuming for the moment
that conduct of the arbitration proceedings and making of the award
confers jurisdiction, the same is expressly excluded in view of the
ouster clause i.e.Clause 7 referred to above.
LW(S) 10.02.2006
M.ETHIRAJULU V.RANGAM ADINARAYANA & ORS [(2005) 128
Comp Cas 703 (AP)] T.Ch.Surya Rao, J. [Decided on 17.2.2005]
Negotiable Instruments Act, 1881 - Sections 8, 9, 138 and 142 -
Drawer issuing cheque to second accused (SA) - SA giving the
cheque to the complainant towards the payment of sarees
purchased - Complainant not recording the endorsement on the
reverse of the cheque - Cheque dishonoured - Complainant
bringing action against the drawer and SA - Trial court took
cognizance of the offence - whether tenable - Held No.
Brief Facts : The petitioner, who is the first accused in the complaint,
had issued a cheque to the second accused. The second accused
purchased silk sarees from the first respondent and made the payment
therefor giving the cheque issued by the petitioner to him for
discharging the liability with the permission of the petitioner. However,
the first respondent did not record the endorsement on the reverse of
the cheque. On presentation the cheque was dishonoured and the
first respondent filed a complaint under section 138 of the Negotiable
Instruments Act [the NIA] .
Student Company Secretary
Against the petitioner and the second accused. The petitioner
contended before the Trial court that since the endorsement was not
made on the reverse of the cheque as required under the NIA the
first respondent was not a holder or holder in due course and no
action was maintainable against him qua the cheque. However, the
trial court took cognizance of the offence. Against this the petitioner
moved the High court for quashing the proceedings.
Decision : Petition allowed.
Reason : Under section 8 of the NIA, mere possession of the cheque
is not sufficient to become the holder and one can become a holder
only when the conditions specified are satisfied. No endorsement is
made on the reverse of the cheque which enabled the first respondent
to possess it in his own name so as to receive or recover the contents
thereof from the parties thereto. Therefore, the first respondent cannot
be considered to be a holder much less a holder in due course.
Under section 138 of NIA, it is only the payee or holder in due course
who can file a complaint on dishonour of the cheque. The first
respondent not being a holder in due course cannot maintain the
complaint.
TAX LAWS
LW(S) 11.02.2006
COMMISSIONER OF CENTRAL EXCISE v. SIVANESAN & CO
[2005(190) ELT 236(Tri-Chennai)] P.G.Chacko (J) & T.K.Jayaraman
(T). [Decided on 22.9.2005)]
Central Excise Act, 1944- Duty exemption - SSI units - Two
partnership firms in the same name but with additional partner
besides having common partners Brand name jointly owned
by the partners - Assessee firm used the brand name in its
products and claimed duty exemption - Revenue denied
exemption on the ground of use of brand name of another person-
Whether denial of duty exemption is valid - Held, No.
Brief Facts : There were two partnership firms in the name of M/s.
Sivanesan & Co having common partner and the second firm had
additional partner. Both the firms are SSI units engaged in the
manufacture of pressure cookers and they used the brand name
PREMIER and also the logoSS on their clearances. The partners
jointly owned the brand name. The revenue denied duty exemption
to the assessee firm on the ground that it had used the brand name
of another person. The first appellate authority allowed the appeal of
the assessee and the Revenue came in appeal before the Tribunal.
Decision : Appeal dismissed.
Reason : We have gone through the records of the case carefully.
There are actually two partnership firms in the name M/s. Sivanesan
& Co. In the case of the second partnership firm viz M/s. Sivanesan
& Co the additional partner, mother of Shri.Sivanesan who is a partner
in the respondent firm along with his sister in law Smt.K.Parvati. Both
the partnership firm used the brand name of PREMIER along with
the logo SS in respect of the products cleared by them emphasized
that when the brand name is jointly owned, each person is owner of
the brand name. In this view, in the present case, we cannot say that
the respondents were using the brand name of another person.
Moreover, the Commissioner (Appeals) has given a finding that even
if the clearances of both the units are clubbed together, they will come
within the exemption limit provided in the Notification. In these
circumstances, we do not find any infirmities in the impugned order
of the commissioner (Appeals). The Revenue appeal is rejected.
LW(S) 12.02.2006
MAHINDRA & MAHINDRA LTD v. COMMISSIONER OF CENTRAL
EXCISE [2005(190) ELT 301(Tri-Del LB)] Justice J.K.Abichandani
(P), K.C.Mamgain (T) & M.V.Ravindran (J). [Decided on 18.11.2005]
Central Excise Act, 1944 - Sections 2(f) and 3 - Manufacture and
excisability - Fabrication and erection of steel structure - Materials
like angles, rods, plates, tubes used - assessee did not pay excise
19 February 2006
 LEGAL WORLD
duty on the erection of structure - Revenue considering the
erected structure as excisable goods levied excise duty - Whether
the stand of Revenue is tenable - Held, yes.
Brief Facts : Batch of appeals raising a common issue was disposed
of by the Larger Bench of the Tribunal under a common order. In the
case of Elcon Engineering Ltd v. CCE, 1999(107) ELT 337 (Tri-Del) it
had been held that there was no manufacture of goods involved in
making of structural components by processing structural materials
and that the goods were not marketable and therefore no excise duty
could be levied. This judgment was set aside by the Constitution
Bench of Supreme Court [2003 (152) ELT A88 (SC)] and remanded
to the Tribunal for fresh consideration in the light of Tariff head 73.08.
The tariff head 73.08 pertains to structures and related structural
goods made of steel which came into force w.e.f.1.3.1988.
Issue: Whether the structurals are new and identifiable goods?
Whether structurals are produced as a result of manufacture
of processes?
Whether structurals are marketable?
Decision & Reasons : There can be no dispute over the proposition
that immovable property, be it immovable steel structure embedded
on earth or a constructed building, cannot be subjected to excise
duty which applies to excisable goods i.e.to movables. In the making
of an immovable structure or building are used a variety of movables.
Raising iron and steel structures like sheds involves fabrication work
and many of the articles used in raising the structure come into
existence through fabrication as per the pre determined design to be
fitted into the structure that is to be raised. For example, roof frame
may be fabricated for the roof structure of a shed. Such fabrication of
frames may be done at construction site or at some factory premises.
The iron and steel frames fabricated at the factory premises away
from the site of construction would be brought to the site for their use
in erecting the structure. Both the frames pre-fabricated and brought
to the site and frames fabricated at the site of erection are goods
manufactured. There will be variety of parts of structures of iron and
steel that can be fabricated either at the site or at some factory
premises away from the site. The iron and steel raw material such as
angles, rods, plates, tubes etc are used in making part of structures
and they acquired a distinctly different shape to suit the structural
design. Unlike in liquid mixtures, the raw material of iron and steel or
wood will retain their identity, but it is precisely their being cut and
designed, punched and fitted to make an article commercially known
that involves manufacture of an article distinct from the angles, tubes,
plates etc used in it.
Mere drilling holes or mere cutting jobs in isolation may not by
themselves involve manufacture of an article, but, converting raw
material like angles, tubes, plates etc to bring about a distinct
commodity will surely amount to manufacture as it is not mere drilling
holes or cutting, but the activity is aimed at bringing about a distinct
commodity.
It is only for the purpose of valuation of the parts of structures
used in erecting the designed structure, that the quantities of raw
material such as angles, rods, tubes, plates etc used for the purpose
and their value were considered for working out the duty evasion.
The entire exercise of projecting the matter as if mere angles, rods,
tubes or plates that went into the making of the designed structure
were being subjected to excise duty is misconceived and misleading.
When a part of structure is prepared and disassembled, the
members thereof will be angles, rods etc prepared for the use in
such structure. These are not angles or plates merely cut or drilled
without reference to a particular structure. The later part of Heading
73.08 would apply to the members such as plates, rods, angles etc
that are prepared for use in structures or their parts in their pre-
assembled or disassembled state of an identifiable article of the types
of the parts of structures covered under Heading 73.08.
Student Company Secretary
LW(S) 13.02.2006
COMMISSIONER OF CENTRAL EXCISE v. S.KUMARS LTD
[2005(190) ELT 145(SC)] Ruma Paul & H.K.Seema, JJ. [Decided
on 21.11.2005]
Central Excise Act, 1944 - Section 4 - Central Excise (Valuation)
Rules, 1975 - Assessee processing grey fabrics of own and
received from merchant manufacturers who were its group
concerns - Assessee paid duty on the goods received from
merchant manufacturers on cost+ processing charges+
manufacturing profit while duty on its own processed goods was
paid on whole sale market price - Revenue rejected the valuation
of the assessee and demanded differential duty with respect to
goods processed for merchant manufacturers as the transaction
was between related persons - Whether the stand of the Revenue
tenable - Matter remanded back to Tribunal
Brief Facts : The assessee is a processor of grey fabric besides
being manufacturer and trader. The assessee received fabrics from
its group concerns for job processing. The assessee paid excise duty
on the processed fabric on wholesale price of the merchant
manufacturers up to 28.2.1989 in accordance with the decision
rendered in Empire Industries Ltd v. UOI (1985) 3 SCC 314. With
effect from 1.3.1989 the assessee adopted two methods for paying
excise duty. For the processed fabric of its own the duty was paid on
the whole sale price and for the fabrics supplied by other merchant
manufacturers the duty was paid based on the value comprising of
cost of the fabric + processing charges+ manufacturing profit.
Obviously this value was less than the wholesale price of the merchant
manufacturers. The assessee adopted this later method with respect
to job processed fabrics based on the judgment rendered in Jaguar
Prints v. UOI (1989) 3 SCC 488[Ujagar Prints II] and as explained
Ujagar Prints v. UOI (1989) 3 SCC 531[Ujagar Prints III]. The Revenue
rejected the valuation of the assessee and levied duty at the whole
sale price charged by the merchant manufacturers on the ground
that all the merchant manufacturers who gave fabrics for processing
were group concerns of the assessee and that the ratio of Ujagar
Prints III does not apply to transaction between related parties. The
assessee challenged the levy before the Tribunal which upheld the
assessees contention.the Revenue appealed to the Supreme Court.
Decision : Appeal allowed. Matter remanded to Tribunal for fresh
adjudication.
Reason : We do not agree that Ujagar prints III would apply even to
a processor who is not independent and, as alleged in this case, the
merchant manufacturers and the purchasing traders are merely
extensions of the processor. In the latter case, the processor is not a
mere processor but also a merchant manufacturer who purchases/
manufactures the raw material, processes it and sells it himself in the
wholesale market. In such a situation, the profit is not of a processor
but of a merchant manufacturer and a trader. If the transaction were
between related persons, the profit would not be normally earned
within the meaning of Rule 6(b)(ii). If it is established that the dealings
were with related persons of the manufacturer the sale of the
processed fabric would not be limited to the formula prescribed by
Ujagar Prints III but would be subject to excise duty under the principles
enunciated in Empire Industries as affirmed in Ujagar prints II ,
incorporating the arms length principle. Since the Tribunal, in our
opinion, wrongly upheld the respondents contention that the formula
in Ujagar Prints III would apply in full measure, it is now necessary for
the Tribunal to consider whether the respondents were related persons
and whether the Respondent No.1 would be entitled to claim discounts
or could exclude the advertisement expenses incurred by the dealers.
We therefore allow the appeals and remand the matter back to the
Tribunal for the purpose of determining the nature of the alleged
relationship between the Respondent no.1 and other respondents.
20 February 2006
 LEGAL WORLD
LW(S) 14.02.2006
GOOGLE ONLINE INDIA (P) LTD IN RE [(2006) 3 STT (AAR New
Delhi)] Justice S.S.M.Quadri (C), Somnath Pal (M) & B.A.Agrawal
(M). [Decided on 13.12.2005]
Finance Act, 1994 - Service Tax - Section 96C - Advance ruling -
Applicant proposing to provide internet web based search service
free of cost and also sell advertisement space/slot on Google
search site on payment of charges - Whether the proposed
service is advertisement service - Held, Yes.
Brief Facts : The applicant is the wholly owned Indian subsidiary of
USA based Google International LLC. The parent company is in the
business of providing internet web based search service free of cost
and also provides advertisement space/slot to clients to display the
names of their websites on its sites on payment of charges. The
applicant also proposes to provide similar service free of charge as
well as to sell advertisement space slots on the Google search site to
advertisers/clients in India and Pakistan, Nepal and Sri Lanka also.
The applicant sought an advance ruling on its proposed activity as to
its nature whether it would be either of (1) Advertisement Service (2)
Computer Network Service (3) Business Auxiliary Service (4) any
other taxable service.
Decision : Proposed service is advertising service.
Reason : It is a common ground that the applicant would be providing
(1) service free of charge, and (2) service on payment of charges,
and that it is a commercial concern. That the applicant would be
providing/selling space for display or exhibition of advertisement is
not the 3 subject matter of the controversy and this is enough to
satisfy the requirements of the term advertising agency. However,
what is asserted by the applicant is that it will not be providing any
service connected with the display or exhibition of advertisement.
This has been controverted by the commissioner in his additional
comments who referred to websites (1) http:// services.google.com/
ads/inquiry/en and (2) http://adwords.google.com/select/
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Dealing with Mutual Fund, FEMA, RBI, IPR, Banking, Legal,
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TRAINEES/APPRENTICE TRAINEES
Interested Candidates Please send their resume at :
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Student Company Secretary
jumpstartwelcome. The websites support the plea that the applicant
proposes to provide not only the value added service to its clients
who advertise with it with respect to display of an advertisement but
would also provide services with respect to preparation of an
advertisement and that its sales representative would personally help
clients to design the advertisement in case the proposed expenditure
is more than $ 4000 a month and where a client or an advertiser
would be spending more than $30 in a month, it has jump start offer
where the campaign is personalized and its sales representative would
help treat a campaign via e-mail. The applicant would also have a
say on the content of the advertisers advertisement to be displayed
on the applicants web page in case such contents are found to be
not in line with their editorial policy. From the service to be offered by
the applicant, we are of the view that the applicant would not merely
be selling the slot on website but would also be assisting in preparation
of advertisement and displaying/exhibiting advertisement; thus, it
squarely falls within the meaning of advertising agency. It is also clear
that it is proposing to provide to a client service in relation to making,
preparation, display and exhibition of an advertisement. In fact, without
prejudice to the factual position stated above, any service to a client
connected with even any one or more of the four activities mentioned
above, would be sufficient to bring the commercial concern providing
such service, within the ambit of the definition of advertising agency.
This has been made clear in the Ministry of Finance, letter F.No.341/
43/96-TRU, dated 31.10.1996 in the context of the definition of
Advertising Agency to the effect that the scope of the service which
is included in the tax net extends not only of any service connected
with making, preparation of advertisements but also includes any
service connected with display or exhibition of advertisements.
Therefore, it follows that the service provided by the applicant clearly
falls within clause (9e) of sub-section (105) of section 65 of the Act
which has a very wide coverage inasmuch as it means any service
provided or to be provided by an advertising agency to a client in
relation to advertisement, in any manner.
21 February 2006
 STUDENTS SERVICES
STUDENTS SERVICES
REGISTRATION AND POSTAL TUITION
1. CANCELLATION OF REGISTRATION
Registration of students registered upto and including March, 2001
stands terminated on expiry of five-year period on 28th February, 2006
leading to the following immediate consequences :
(a) Supply of Student Company Secretary bulletin will be
discontinued from March, 2006 onwards.
(b) Response sheets will not be accepted even if submitted and
coaching completion certificates will not be issued (after the expiry
of registration period)
They are advised to apply for registration de novo/extension of
registration as per the guidelines published in this bulletin.
(Students whose registration is valid upto February, 2006 are
however, eligible to appear in June, 2006 examination without
seeking extension of registration/registration de-novo subject
to fulfilling other requirements laid down in the regulations.)
2. CHANGE OF ADDRESS
Change of address, if any, should be intimated to the Institute by
sending a separate letter in this regard. While intimating the change
in their mailing address, the students are advised to invariably quote
the PIN CODE number alongwith the student registration number,
name and full postal address with city, state in capital letters.
PIN CODE is required to be mentioned for quick delivery of
the mail. Students may, therefore, check up the computerised
mailing address as printed on the Student Company Secretary
bulletin. In case, it does not carry or carry the wrong PIN CODE
number, the same may be intimated immediately quoting
student registration number and full postal address with Postal
Index Number so that it could be incorporated in the
computerised mailing list.
3. STUDENTS IDENTITY CARD
All the students appearing in the examination must hold Identity
Card in the manner prescribed by the Institute, if not already obtained
at the time of seeking registration. For obtaining the Identity Card,
students are advised to obtain a proforma from the Headquarters/
Regional Offices of the Institute and send it again to the Institute duly
filled up and attested as per instructions given in the prospectus/
registration letter.
Students who have so far not obtained Identity Cards are advised
to write to the Institute immediately. The students should carry their
Identity Cards without fail for appearing in the Institutes examination.
If the Identity Card already issued has been lost or mutilated, student
should send a request for obtaining duplicate Identity Card together
with the mutilated Identity Card/Identity Card proforma duly filled in
and attested together with Rs. 50/- towards duplicate Identity Card
fee.
4. COMPULSORY ENROLMENT FOR FINAL
COURSE
Students who have passed/completed both groups of Intermediate
examination are advised to seek compulsory enrolment for undergoing
coaching for the Final course on payment of Rs.4200/- towards postal
tuition fee.
Please note that a student is admitted to the final examination
only after a minimum period of nine calendar months has elapsed
since his/her passing the Intermediate examination and subject to
completion of coaching and fulfillment of other requirements.
Student Company Secretary
5. COMPANY SECRETARIES EXAMINATION
JUNE, 2006.
I. EXAMINATION FEE:
Foundation : Rs.500 (Lumpsum)
Intermediate : Rs.400 (Per group)
Final : Rs.300 (Per group)
Students seeking paperwise exemption for the first time (on
qualification basis) are required to remit the exemption fee @ Rs.100
per subject in addition to the examination fee on or before the last
date.
II. ELIGIBILITY FOR APPEARING IN THE INTERMEDIATE
EXAMINATION :
In terms of regulation 33 of the Company Secretaries Regulations,
1982, students registered upto and including August, 2005 are eligible
to appear in both groups of the Intermediate examination to be held
in June, 2006 subject to completion of coaching and fulfilment of
other conditions laid down in the regulations. However, candidates
registered as students upto and including the month November, 2005
are eligible for appearing in any one group in June, 2006 session (i.e.
either in Group-I or Group-II) subject to fulfilment of other conditions
as laid down in the regulations.
III. ELIGIBILITY FOR APPEARING IN THE FINAL
EXAMINATION :
In terms of regulation 43 of Company Secretaries Regulations,
1982, students who have passed/completed both groups of the
Intermediate examination upto and including June, 2005 are eligible
to appear in all the three groups or in combination thereof in any two
groups of the Final examination to be held in June, 2006 under New
Syllabus, subject to completion of coaching and fulfilling other
conditions as laid down in the regulations.
IV. LAST DATE FOR RECEIPT OF ENROLMENT
APPLICATIONS
The last date for receipt of applications for enrolment to the June,
2006 examination, complete in all respects, together with the requisite
examination fee in the Institute, is 27th March, 2006 (25th & 26th March,
2006 being holidays). However, enrolment applications accompanied
with late fee of Rs. 100/-, if received, in the Institute after the closing
date, but on or before 10th April, 2006 (9th April, 2006 being a holiday)
will be entertained.
Students who could not be enrolled in the earlier examination owing
to late receipt of enrolment application, cancellation of registration
etc. and whose examination fee was kept at credit, are advised to
send fresh enrolment applications requesting therein for the
adjustment of amount at their credit together with the balance of
examination fee, if any. Formal application along with the original
letter issued by the institute showing credit amount, must reach the
Institute on or before the closing date as otherwise such students
shall not be enrolled for appearing in June, 2006 examination.
No other remittance/letter/query should be clubbed with the
enrolment application/examination fee.
6. CLARIFICATION REGARDING PAPERWISE
EXEMPTION
(a) The paperwise exemption is granted only on the basis of specific
request received in writing from a registered student along with
the attested photocopies of marks sheets for all parts of the
Degree/examination (on the basis of which the paperwise
exemption is sought) and the exemption fee @ Rs. 100/- per
paper. It is one time payment and not to be remitted for availing
of paper wise exemption in every session of examination during
the validity of registration period.
(b) The application for claiming paperwise exemption must reach
22 February 2006
 STUDENTS SERVICES
the Institute on or before the last date for submission of enrolment
application i.e. 25th March and 25th September for June and
December examinations respectively and with a late fee of Rs.
100/-, the application can be accepted upto 9th April and 10th
October respectively.
(c ) The paperwise exemption once granted holds good during the
validity of registration period or passing/completing the
examination, whichever is earlier.
(d) The paperwise exemption is cancelled only on receipt of a specific
request in writing from the student concerned on or before the
last date for submission of the enrolment application. If any
candidate appears in the exempted paper(s) of examination
without receiving the written confirmation from the Institute, but
by making personal representation, appeal, request, etc., at the
Examination Centre at the last moment, his/her appearance in
such paper(s) shall automatically be treated as cancelled.
(e) It may be noted that candidates who apply for grant of paper
wise exemption or seek cancellation of paper wise exemption
already granted, before the last date of submission of enrolment
applications for a particular examination, must see and ensure
that they receive written confirmation from the Institute at least
15-20 days prior to the commencement of the examination.
Candidates who would presume automatic grant or cancellation
of paper wise exemption without obtaining written confirmation
on time and absent themselves in any paper(s) of examination
and/or appear in the exempted paper(s) would do so at their
own risk and responsibility and the matter will be dealt with as
per the above guidelines.
(f) Exemption once cancelled on request in writing shall not be
granted again under any circumstances.
(g) The candidates who have passed either group of the
Intermediate/Final examination under the old syllabus, may claim
the paperwise exemption in the corresponding subject(s) of new
syllabus indicating the basis of exemption as APO in the
appropriate column of the enrolment application.
(h) In case the paperwise exemption has already been granted on
the basis of qualification or the candidates is eligible for grant of
exemption on the basis of securing 60% or more marks, a
photocopy of the letter/marks-sheet issued by the Institute should
be enclosed with the enrolment application while claiming such
exemption, failing which the same may not be granted for the
ensuing examination.
(i) No exemption fee is payable for availing paperwise exemption
on the basis of APO or on the basis of securing 60% or more
marks in the Institutes examination.
(j) Paperwise exemption fee is payable only when the exemption is
to be availed on the basis of qualification(s) specified for the
purpose.
7. COMPLETION OF COACHING AND FILLING UP
OF EXAMINATION FORMS
At times queries are received by the Institute from the students
with regard to filling up of examination forms for want of issue of
coaching completion certificate. It is clarified that students (i) who
are undergoing oral coaching, and (ii) students who have submitted
or re-submitted their response sheets and/or would be submitting or
re-submitting the response sheets within the stipulated period, are
eligible to fill up the examination forms for the respective session of
examination Such students need not withhold the submission of
their enrolment application for want of coaching completion
certificates. The students concerned are advised to make a note in
the application form to the effect that they are undergoing oral
coaching/have submitted response sheets and are awaiting coaching
completion certificates. Since there cannot be any change with regard
to the closing date for submission of examination forms, students
Student Company Secretary
need not wait for the issue of coaching completion certificates for
filling up their examination forms. They are advised to mention against
the appropriate column in the enrolment application form that coaching
completion certificates are being awaited.
Students who were issued with limited permission letters, for
appearing in December, 2005 examination, are advised to
submit the deficient response sheets immediately as such
students, if failed, will not be allowed to appear in June, 2006
examination, unless they are issued with the regular coaching
completion certificate(s) for the group(s) for which limited
permission letter was issued.
Students who secure 35% or more marks in aggregate and
30% marks in individual paper in a group in December, 2005
examination, are advised to submit photocopy of the marks
sheet for the issue of Coaching Completion Certificate, if
eligible.
8. SUBMISSION OF RESPONSE SHEETS FOR
JUNE, 2006 EXAMINATION.
The last date for receipt of response sheets, including
resubmission, if any, from the students who wish to be enrolled for
the June, 2006 examination is 28.02.2006. Students are advised to
send the response sheets to the Institute in a regular flow without
waiting for the last date. The last date mentioned above is just an
indicator for students who suitably plan their submission. This will not
only give the Institute reasonable time to get the response sheets
evaluated in time but also an opportunity to the students to resubmit
the response sheets in which they have failed to obtain a minimum of
forty per cent marks. Students are advised to get acknowledgement
from the Institute for the response sheets sent by attaching a self
addressed stamped post card. It may be noted that credit is given for
the response sheets received in the Institute on or before the stipulated
due date, as above. Name of student, registration number, subject,
test paper number, number of sheets used and postal address with
PIN code number should be written on the title sheets attached with
each response sheet. The above information may also be indicated
on the first , middle and last pages of each response sheet besides
mentioning the Registration Number on each page on the right hand
corner on top. It will facilitate early evaluation and return of the
evaluated response sheets. It may be noted that no response sheet
will be entertained by the Institute in the absence of above information.
Accordingly, no credit will be given to students of such response sheets
received by the Institute.
Students are also advised to write the subject/paper, number of
sheets used and examination correctly on the title sheet before
sending the response sheets to the Institute. Similarly, relevant title
sheets may be appended with them. There are separate title sheets
for Foundation, Intermediate and Final course. Even when the
response sheets are sent in a bunch, complete particulars are to be
given on each title sheet and first, middle and last pages of each
response sheet. No cognizance of the response sheets will be taken
if the student fail to comply with the above instructions. It is
emphasized that separate title sheets are to be attached with each
response sheet.
Students are aware that the Institute has made arrangements for
acceptance of response sheets for Foundation, Intermediate and Final
Course in its Regional/Chapter Offices in Ahmedabad, Bangalore,
Calcutta, Chennai, Delhi, Hyderabad, Jaipur, Kanpur, Mumbai,
Madurai and Pune. Students located in and around these cities are
advised to contact and submit their response sheets in the respective
Regional/Chapter offices.
9. IMPORTANT
While making any correspondence regarding examination, the
students are advised to quote the following particulars for taking
prompt action :
23 February 2006
 STUDENTS SERVICES
i) Name in full (ii) Student Registration number (iii) Stage of
examination (Intermediate/Final) (iv) Group opted (v) Centre opted
(vi) Particulars of fee remitted, i.e. Demand Draft (printed) number,
date , amount, name of the bank and its branch (vii) Date and mode
of despatch of enrolment application and their complete address with
PIN code, telephone number, mobile number or e-mail address.
In case of any specific problem/complaint regarding registration,
post-registration, students services and postal/oral coaching, students
may contact personally or write to Sohan Lal, Joint Director and for
academic guidance and suggestions, if any, students may write to
V K Aggarwal, Principal Director, at the Institutes address.
ATTENTION STUDENTS
INTENDING TO APPEAR IN COMPANY
SECRETARIES EXAM. JUNE, 2006
1. (a) Last date for receipt of Examination 27.03.2006*
application in the Institute
(b) With a late fee of Rs. 100 10.04.2006
(09.04.2006 being a holiday)
2. Examination fees
Foundation Rs.500 (Lumpsum)
Intermediate Rs.400 (Per group)
Final Rs.300 (Per group)
3. Last date for seeking paperwise 27.03.2006*
exemption
4. Last date for seeking extension of 27.03.2006*
registration/registration de-novo
*(25 & 26-03-2006 being holidays)
Notes :
I. Examination fee is payable on groupwise and not on paperwise
basis for intermediate/Final examinations as above.
II. The students who have submitted/ would be submitting all the
response sheets within the stipulated time, may submit their
enrolment applications for appearing in the examination pending
issue/receipt of the coaching completion certificates. But
coaching completion certificate would be issued only when they
have successfully completed the coaching for the group(s)
concerned.
III. Please note that unsigned, incomplete and applications not filled
in their own handwriting by the students will not be accepted.
IV. No change of group(s) will be allowed after submission of the
enrolment application.
V. No request for change of medium for writing the examination
will be entertained after submission of the enrolment application.
VI. No cutting and over writing is to be done in the examination
form.
VII. No request for grant/cancellation of paperwise exemption shall
be entertained after the last date i.e. 25th March/25th September
for June/December examination respectively.
VIII. No request / correspondence for withdrawal of application
from appearing in the examination or adjustment of amount
for the next examination shall be entertained after
submission of the examination form under any
circumstances.
Students are, therefore, once again advised to fill in the new
and revised enrolment applications/examination forms EXA
carefully to avoid last moment problem for themselves as well
as for the Institute.
IX. All the students appearing in the examination are required to
Student Company Secretary
enclose the photocopies of the following documents with their
enrolment application forms :
1. Letter granting the paperwise exemption (wherever
paperwise exemption has been granted on the basis of
qualification)
2. Marks-sheet for availing paperwise exemption on the basis
of securing 60% or more marks in the earlier examination
of the Institute.
3. Original letter issued by the Institute showing the credit
balance, if any, for adjustment towards the examination fee.
4. Coaching Completion Certificate, if already issued from the
Institute.
5. It is again emphasised that students who have already been
granted exemption in any paper included in the group for
which the enrolment has been sought, must indicate in the
appropriate column of the enrolment application and enclose
a photocopy of the letter issued by the Institute granting
such exemption. Similarly, in those cases where the student
has applied for exemption for the first time, the same must
also be indicated in the appropriate column of the enrolment
application form along with the attested photocopies of the
relevant marks sheets and the exemption fee.
6. In case, student is interested in cancellation of exemption
which has already been granted to him, a separate request
should be made for the same along with the enrolment
application. Please note that once paperwise exemption is
cancelled, it shall not be restored/reviewed under any
circumstances.
7. No exemption fee is payable for availing of paperwise
exemption on the basis of APO (already passed under
old syllabus) or securing 60% or more marks in the
Institutes examination.
X Mode of Payment : All fees and other dues payable to the
Institute may be remitted only by crossed demand draft drawn
in favour of The Institute of Company Secretaries of India,
payable at New Delhi.
XI Students Identity Card : All the candidates appearing in the
Company Secretaries Examination are advised to timely
complete necessary formalities for obtaining their identity cards
duly countersigned by the issuing authority of the Institute as
per instructions published in the prospectus "Career in
Company Secretaryship A Handbook.
SPECIAL REQUIRMENTS FOR SCANNING SYSTEM
Applicants must affix/paste their latest photograph in the
application form
Applicants are also required to mention their particulars, viz.,
name, student registration no., examination application no. ,
stage of examination, group and examination centre on the
reverse of the Demand Draft to be sent along with the
application form towards examination fee.
In cases involving adjustment of credit amount, the original
documents in support of the contention showing the exact
credit amount is to be attached with the application.
Please enclose only relevant documents for availing
exemption, etc.
All enclosures should be stapled in one bunch and clipped
with the application. Please mention registration no., name,
centre, stage, group and application form no. on the first page
of the bunch.
Students need not hesitate to seek any further information/
clarification/assistance with regard to the above from
either of the following:
Sohan Lal, Joint Director (Students Services)
Tele : 24602622(D)/41504444 (Extn. 511)
E-Mail : slal@icsi.edu
24 February 2006
 STUDENTS SERVICES
ISSUE OF ADMISSION CERTIFICATE WITH
THE SCANNED PHOTOGRAPH
JUNE, 2006 SESSION OF EXAMINATION
The Institute would be issuing Admission Certificate carrying
the scanned photograph and signature of the examinees for
appearing in June, 2006 session of examination. The candidates
interested to appear in June, 2006 session of examination are
necessarily required to fill up the new and revised enrolment
application form EXA which has been specifically designed taking
in to account the state of art technology. The new examination
forms would be available with the Institute. The students concerned
may obtain the requisite application form by sending a crossed
demand draft of Rs.30/-(including postage). These forms can also
be obtained from the Regional Councils and Chapters on cash
payment of Rs. 20/-. Students may please note that the photo
copies of the examination forms will not be accepted by the
Institute.
The following precautions are to be taken by the students while
filling up the new form:
t The instructions, guidelines and code list printed in the form
must be carefully gone through before filling up the form
t The applications are to be filled up by the applicants themselves
with the help of black ballpoint pen
t There should not be any corrections/cuttings/over-writings in
the form
t All information and particulars are to be given in the boxes/
space earmarked for the purpose
t Handwriting must be legible and all entries are to be filled up in
capital letters.
t While every care would be taken by the Institute in processing
the examination forms through the scanning system and the
students would be advised if there is any short -comings in the
application forms, it is imperative that the students would also
make sure that they have filled up the examination form,
correctly.
CLARIFICATION REGARDING HINDI MEDIUM
Queries are often being received by the Institute with regard to
the option of medium for pursuing the Company Secretaryship
Course.
It is clarified that the students may opt for pursuing the course in
English/Hindi medium. However, the study material at present is
available in English medium only. In any case, the students can
enjoy the facility of submitting their response sheets to the test
papers under the Postal Tuition Scheme in English or Hindi medium.
Similarly, they can opt to write the Institutes main examination in
English or Hindi Medium.
As regards writing of examination, the option is to be exercised
while filling up the examination form as and when the students intend
to appear in the examination. This option is to be exercised on group
wise basis and not on individual basis. Answering to test papers
and writing examination partly in English and partly in Hindi medium
is not permissible.
E-MAIL ADDRESS OF THE STUDENTS
Those students who are having e-mail address may communicate
the same to the Students Services Section at dss@icsi.edu which
will facilitate quick and economic communication from the Institutes
side. The e-mail address may be sent in the following format.
Name : _______________________________
Registration No. : _______________________________
E-mail Address : _______________________________
Student Company Secretary
EXAMINATION
1. DECLARATION OF DECEMBER, 2005
EXAMINATION RESULTS
Results of the Foundation Course, Intermediate and Final
examinations of the company secretaries held in December, 2005
are scheduled to be declared at 4.00 P.M. on Saturday, the 25th
February, 2006. As in the past, the results will be displayed
simultaneously on the Notice Boards at the Institutes Headquarters,
Offices of the Regional Councils and Chapters, and Examination
Centres. The results along with break-up of subjectwise marks will
also be available on Institutes Website www.icsi.edu on 25th
February, 2006 after 4.00 P.M.
The result-cum-marks statements will be despatched to all
candidates latest by 03rd March, 2006. Meanwhile, if there has been
any change in the mailing address of a candidate, he/she should
immediately intimate the same enclosing a self-addressed envelope
of 23 cms. x 11 cms. size for posting his/her result-cum-marks
statement at the changed address. Further, any candidate who does
not receive his/her result-cum-marks statement by 13th March, 2006,
should immediately write to the Sr. Director (Exams.) for issuing
duplicate marks statement giving relevant particulars, i.e., his/her
name, student registration number, stage of examination and group(s)
in which he/she appeared, roll number, examination centre along with
a self-addressed stamped envelope worth Rs.5/-.
2. VERIFICATION OF MARKS
In terms of regulation 46 (2) of The Company Secretaries
Regulations, 1982, as in force, a candidate can seek Verification of
Marks in any subject(s) of December, 2005 examination within one
month from the date of declaration of results. The application for
verification of marks should be made on a plain paper, in candidates
own handwriting together with requisite fee @ Rs.100/- per subject
within 30 days from the date of declaration of results, i.e., upto 27th
March, 2006 (25th and 26th March, 2006 being holidays). Candidates
are advised not to club any other query/matter or remittance along
with request for verification of marks to facilitate an early reply.
After completion of verification process, candidates are
communicated outcome of the verification of marks, normally within
2-3 weeks time. However, if a candidate does not receive any
communication by 20th April, 2006, he/she should write to the
Sr. Director (Exams.) giving relevant details (i) his/her name;
(ii) student registration number; (iii) stage of examination and roll
number; (iv) name of the subject(s) in which verification of marks
was sought; (v) date of application and mode of its despatch;
(vi) amount of verification fee and mode of its remittance, viz., Bank
Draft No., date of issue of Bank Draft, Name of drawee and drawer
bank; and (vii) complete postal address along with PIN Code.
3. JUNE, 2006 EXAMINATIONS
Next examination for the Foundation Course, Intermediate and
Final, scheduled in June, 2006, will be held from Friday, the 02nd
June, 2006 to Saturday, the 10th June, 2006, as per the Time-Table
and Programme published on the back inside cover page of this
issue. The last date for receipt of enrolment application for June,
2006 examinations in the Institute together with the requisite
examination fee is 27th March, 2006 (25th,and 26th March, 2006 being
holidays) and with late fee of Rs.100/- upto 10th April, 2006. (9th
April, 2006 being holiday).
Important : Candidates should note that non-receipt/delayed
receipt of result-cum-marks statement, response to result
queries, verification of marks, etc., will not be accepted as valid
and sufficient reason for seeking any relaxation or not complying
with the requirements of regulations and/or last dates for
submission of enrolment applications for the next examinations.
Therefore, the candidates in their own interest are timely advised
to keep track of important announcements, last dates and
observe the time schedule.
25 February 2006
4. HINDI AS AN OPTIONAL MEDIUM FOR WRITING
THE FOUNDATION, INTERMEDIATE AND FINAL
EXAMINATIONS
Candidates are allowed to use Hindi as an optional medium for
writing all papers of the Foundation (except the English & Business
Communication paper), Intermediate and Final examinations on
the following conditions:
(i) option of Hindi medium for writing the examination is to be exercised
for all papers of an examination OR a particular group of
examination, and not for any individual paper(s) in the enrolment
application form each time for appearing in the examination;
(ii) option once exercised is irrevocable for that particular session of
examination;
(iii) answer books of candidates who write part of papers/answers in
one medium and the remaining part in other medium are liable
to be cancelled without any notice;
(iv) candidates who have exercised option of Hindi Medium in their
examination enrolment form for writing Foundation examination
and Group-I of Intermediate examination will be provided
Question Papers printed both in English and Hindi (except for
English & Business Communication paper of Foundation
examination which will be printed/required to be answered
in English only). The Question Papers for Group-II of the
Intermediate examination and all papers of Final examinations
will be printed/supplied in English only;
(v) if a candidate writes his answers in Hindi Medium without
exercising such an option in the enrolment application form, he/
she may not be given credit for his/her answers;
(vi) candidates opting Hindi Medium for the examination must write
HINDI MEDIUM in bold letters on the top of the cover page of
Answer Book No.1 and 1B, as the case may be; and
(vii) candidates opting Hindi Medium for the examination may, if they
so desire, write answers to practical questions, headings
quotations, technical and legal terms, sections, rules, etc., in
English medium.
Student Company Secretary
ATTENTION STUDENTS APPEARED IN
DECEMBER, 2005 EXAMINATIONS!
The Institute awards Merit Scholarships and Merit-cum-
Means Assistance to students for pursuing Intermediate and
Final Courses on the basis of their meritorious performance
in the Institutes examinations and/or merit-cum-need basis
on their passing Foundation and Intermediate examinations
respectively, as per the criteria stipulated under the Merit
Scholarships (Company Secretaryship Course) Scheme,
1983 and Merit-cum-Means Assistance (Company
Secretaryship Course Scheme), 1983.
MERIT SCHOLARSHIP
In pursuance of para 7 of the Merit Scholarships
(Company Secretaryship Course) Scheme, 1983, 15 Nos.
of scholarships are awarded each for Intermediate and Final
examinations per session only to registered students, purely
in order of merit, from amongst the candidates who appeared
and passed in all the subjects of their respective examination,
at first attempt, in one sitting, without claiming exemption in
any subject, on all-India basis and subject to fulfilling other
terms and conditions as stipulated in the said scheme.
Accordingly, students who pass the Foundation
examination, December, 2005 and wish to be considered for
award of Merit Scholarships should get themselves registered
with the Institute for pursuing Intermediate Course within 3
months from the date of declaration of results to become
eligible for award of Scholarship.
MERIT-CUM-MEANS ASSISTANCE
In pursuance of para 8 of the Merit-cum-Means
Assistance (Company Secretaryship Course) Scheme,
1983, 15 Nos. of financial assistance are awarded each for
Intermediate and Final examinations per session, only to
registered students. According to the scheme, a candidate
has to apply in the prescribed form obtainable from the
Institute free of cost, and submit his/her application within a
specified date as notified from time to time. Any candidate
applying for financial assistance should have passed all
papers of the Foundation/Both Groups of Intermediate
examination, at first attempt, in one sitting, without claiming
exemption in any subject. If the candidate is employed or
having an independent source of income, in that case his/
her individual income should not be more than Rs.1,00,000/
- per annum and if he/she is dependent on his/her parents/
guardian/spouse, then the total combined income from all
sources should not be more than Rs.1,50,000/- per annum,
besides fulfilling other terms and conditions as stipulated in
the said scheme.
Students who pass the Foundation examination,
December, 2005 must get themselves registered with the
Institute for pursuing Intermediate Course within three months
from the date of declaration of results to become eligible for
award of this financial assistance.
A separate notification inviting applications for award of
Merit-cum-Means Assistance will be published in the March/
April and September/October issue of C.S. Foundation
Course Bulletin and Student Company Secretary Bulletin.
26 February 2006
LIST OF THE COMPANIES REGISTERED FOR IMPARTING LIST OF PRACTISING MEMBERS REGISTERED FOR THE
TRAINING DURING THE MONTH OF DECEMBER, 2005 PURPOSE OF IMPARTING APPRENTICESHIP TRAINING
Sl. Region Training Stipend DURING THE MONTH OF DECEMBER, 2005
No. Period (Rs.) 1. M. RAMA KRISHNA PCSA-1318
Northern Region 301, Akshya Apts
1. Intra Infotech Limited 15 Months Suitable 8-3-841, Yellareddyguda
704, 7th Floor, Deepali Building Training HYDERABAD-500073
92, Nehru Place 2. K.G. MOHAN PCSA-1319
New Delhi-110019 'Sreyas', Thekkumbhagom
2. Kampsax India (P) Limited 15 Months Suitable Tripunithura, Ernakulam Distt.
809, Phase-V, Udyog Vihar Training KERALA-682301
Gurgaon-122016, Haryana 3. ANSHUL JAIN PCSA-1320
103A, Shyam Anukampa
3. Panasonic India Private Limited 15 Months 2500-
0-11, Ashok Marg
C-52, Phase-II Training 3000
C Scheme,JAIPUR-302001
NOIDA-201301
4. S. VENKITARAMAN PCSA-1321
Western Region C/o Singhania & Partner
4. Radhakrishna Hospitality 15 Months Suitable B-92, 9th Floor, Himalaya House
Services Pvt. Ltd. Training 23 K.G. Marg, NEW DELHI-110001
6-7, Jyoti Wire House
23A, Shah Industrial Estate 5. REKHA N AMBAWAT PCSA-1322
Off. Veera Desai Road 452-A, J.S.S. Road, Shanti Sadan
Andheri (West), Mumbai-400053 Opp. Dr. Vighas Street, 2nd Floor
Flat No. 202, Chira Bazar Road
5. Lotus India Asseet Management 15 Months 7500- MUMBAI-400002
Company Pvt. Ltd. Training 10000
th
5 Floor, Khetan Bhavan 6. NITIN KOCHHAR PCSA-1323
198, J.T. Road, Churchgate X-26 (Basement)
Mumbai-400020 Hauz Khas
NEW DELHI -110016
6. Enercon (India) Limited 03 Months Suitable
Kolsite House, Plot No. 31 Practical ATTENTION STUDENTS!
Shah Industrial Estate Training
Veera Desai Road Students writing answers to response sheets for the Test Papers
Andheri (West), Mumbai-400053 1/2006 to 5/2006 of paper Direct and Indirect Taxation Law and
7. Aryaman Financial Services Ltd. 15 Months Suitable Practice of Final course may please note that in Part A of all test
208, Maker Chambers-V Training papers, they are required to write answer to Question No. 1, which
2nd, Floor, Nariman Point is compulsory and any one Question from the rest of the two
Mumbai-400021 Questions i.e., either Question No. 2 or Question No. 3 respectively.
8. ISMT Limited 15 and 03 3000- ATTENTION!
Lunkad Towers, Months 5000 CHANGE IN THE TELEPHONE NUMBER
Viman Nagar Practical OF THE ICSI HEADQUARTERS
Pune-411014 Training The telephone number 51504444 of the ICSI Headquarters has
9. Lazard India Private Limited 15 Months Suitable been changed and the new number is 41504444.
20th Floor, Express Towers Training

STUDENTS QUIZ
Nariman Point
Mumbai-400021
Eastern Region
10. Ashika Stock Broking Ltd. 15 Months 3500- PRIZE QUERY
"Trinity", 226/1, A.J.C. Bose Road Training 5000 A proprietary concern in India is rendering professional
7th, Floor, Kolkata-700020 services to a company abroad. The foreign company desires
11. Apeejay Securities Pvt. Ltd. 15 Months Suitable to allot shares in it in lieu of the fees payable to the proprietary
concern for professional services rendered. Can this
Apeejay House Training
15, Park Street proprietary concern accept the allotment of shares?
Kolkata-700016 CONDITIONS
12. Tide Water Oil Co. (India) Ltd. 15 Months 2500 1. Answer should not exceed one page typed in double space.
Yule House Training The answer sheet should contain the name, registration number
8, Dr. Rajendra Prasad Sarani and address of the student.
Kolkata-700001 2. Last date for receipt of answer is 16th March, 2006.
3. Two prizes (a first and a second) in kind will be awarded to the
Southern Region best answers and the names of the contributors will be published
13. Kerala Ayurveda Pharmacy Ltd. 03 Months Suitable in the Bulletin.
Athani-683585 Practical 4. The envelope should be superscribed Students Query, February
Aluva, Kerala Training 2006 and addressed by name to N.K. Jain, Secretary & Chief
14. TNT India Private Limited 15 Months 6000- Executive Officer, The Institute of Company Secretaries of
82/1, Richmond Road Training 8000 India, ICSI House, 22, Institutional Area, Lodi Road, New
Bangalore-560025 Delhi-110003.

Student Company Secretary 27 February 2006

 QUIZ - PRIZE WINNERS
QUIZ - PRIZE WINNERS
May 2004
QUERY
Section 11A of the Central Excise Act, 1944 was amended
retrospectively. Is such a retrospective amendment Valid?
WINNERS
First Prize : None eligible
Second Prize : (Joint Winners)
A. Vishnu Priya (Regn. No. SRO258027/02/03), D/o Narayan, A
Opp. Gandhi Nagar Park, Darji Eranna Compund, Gandhi Nagar,
Bellary-583103, Karnataka
R. Pattu Rathi, (SRO 246083/09/2002), 5/286, Annai Indhira Nagar,
1st Street, Tuticorin 628002, Tamilnadu
ANSWERS
Second Prize
[1]
Introduction : Amendments are inserted in an Act in order to cover
certtain loopholes of that particular section and to achieve the
objectives of the Act & to cover new area of activity. Like wise Sec.
11A of Central Excise, Act, 1944 was amended retrospectively in
order to achieve the object of recovering the non-levied or paid, short
levied or paid, or erroneously refunded excise duty, even if department
had approved, accepted or assessed value or rate of duty & in order
to make good the wrongly assessed excise duty due to any reasons
where the excise officer is of opinion that the duty paid is not correct
due to difference in valuation, classification or rate of duty.
Amendment inserted by the Finance Act, 2000, with retrospective
effect from 17.11.1980 in section 11A of the Central Excise Act, 1944.
[Whether or not such non-levy or non-payment, short levy or short
payament or erroneous refund, as the case may be, was on the basis
of any approval, acceptance or assesment relating to the rate of duty
on or valuation or excisable goods under any other provisions of this
Act or the rule made there under.]
Case wherhe loophole was covered by inserting amendment with
retrospective effect.
In the case of SAIL (Steel Authority of India Limited) of Durgapur
(M.P.), the SAIL had been paying the excise duty in the previous
period at a rate of 15% (assumed figure) as stated by the
Commissioner was transferred & a new Commissioner was placed,
he was of the opinion that the SAIL should actually pay the excise
duty at the rate of 20% (assumed figure) where it was paid only 15%
(assumed figure). The opinion of new Commissioner was challeged
by SAIL where the court held that SAIL is not bound to pay the amount
specified by the new Commissioner. The Finance Act, 2000 inserted
amendment with retrospective effective from 17.11.1980 whereby the
SAIL was bound to pay the duty specified by the new Commissioner
even though the court's decision was in SAIL's favor. Thus the loophole
was covered by giving retrospective effect to the amendment made
by which the person shall be served with the notice to show cause
even if department had approved, accepted or assessed value or
rate of duty paid by him during previous period.
Constitutional validity : It even has the constitutional validity to make
the Act, insert amendments.
Conclusion : Therefore, the amendment with retrospective effect of
Section 11A of Central Excise Act, 1944 is valid,
(1) in order to recover the non-levied or not paid or short levied or
short paid or erroneously refunded excise duty during the previous
period.
(2) to make good the wrongly assessed excise duty.
(3) to achieve the objectives of the Act.
Student Company Secretary
[2]
The given question "Is a retrospective Amendment valid under
Section 11A of the Central Excise Act 1944 (Recovery of duties not
levied or not paid or short levied or short paid or erroneously refunded)
was raised in a decided case namely Easland Combines v. Collector
of Central Excise 2003(1) reported in Student Company Secretary,
May 2003.
Facts : The Central Excise Act, 1944 amended Section 11A with
retrospective effect. In Collector of Central Excise v. Cotspun Ltd :
1999 (113) the Supreme Court considered two of its earlier decisions
in Rainbow Industries (P) Ltd v. Collector of Central Excise 1994 6
SSC 563 and Ballarpur Industries Ltd v. Assistant Collector of Customs
and Central Excise (1995) Supp. 3 SSC 429.
The conflicting decisions of these two cased made the Parliament
to amend Section 11A of the Act of fill in the lacuna pointed out by the
Supreme Court interpreting rule 10 as it existed. Certain actions under
Section 11A of the Act was validated with retrospective from
17.11.1980 (i.e. the day on which Section 11A was introduced in the
Act) stating that it was necessary to overcome certain judicial
pronouncements.
Decision : Rejecting the contents the Supreme Court held that the
amendment had changed the entire basis of the judgement in
Cotspun's case. Also the differential duty could not be recovered on
the ground that it was a short levey and Rule 10 then would have no
application.
By giving retrospective effect to Section 11A the legislature had
empowered the Cental Excise Officer to set at naught the erroneous
approval of assessment order and the concerned office could issue
notices in respect of all proceedings pending with the department till
then.
The conditions on which the judgement in Cotspun were based,
were altered fundamentally. Hence the amended section 11A was
invalid because the levey of Excise Duty on the basis of the approved
assessment order being the correct levy it cannot be accepted.
November 2004
QUERY
BC Limited a manufacturer of excisable goods produced also
waste in the course of manufacture of the excisable goods. The
revenue levied excise duty on the waste also. Will this stand to
legal scrutiny?
WINNERS
First Prize :
Ajay Trimbak Kokate (Regn. No. WRO367185/07/2004), A/102,
Suryadarshan Soc., Murbad Road, Kalyan (W) 421301 Dist Thane.
Second Prize :
Maanas Srivastava (Regn. No. CGO317236), 124/141 Block-C,
Govind Nagar, Kanpur 208006.
ANSWERS
First Prize
Opinion : Excise duty is levied on the goods manufactured which
are specified in the schedules of the central excise, which are
marketable. If goods are not marketable they are not chargeable to
Excise even though they are specified in the Schedule as per Bhor
Indutries Ltd v. C.C.EX.
The Long Legal battle on the dutiability of waste and scrap was
settled by the Supreme Court by its decision in Khandelwal Metal &
Engineering Works v. U.O.I by holding that not withstanding that
process waste and scrap arose as intermediate products or by-
products out of final products, nevertheless such process waste and
scrap, if marketable, would be chargeable to duty in view of the
incorporation of the specific sub-headings in various chapters of the
28 February 2006
 QUIZ - PRIZE WINNERS
revised Traiff. The apex court held that process waste and scrap was
a commerically distinct and identifiable product and has commerical
value.
Hence, such waste and scrap were chargeable to duty, if covered
in the Traiff.
Hence the position as it currently stands is that all process waste
and scrap, if incorporated in the tariff and if marketable, would be
chargeable to duty. However, the Supreme Court in Indian Aluminium
Co. Ltd.'s case has held that refuse, ashes and rubbish are different
from waste and scrap and though they may fetch a value, they are
not marketable and hence not excisable goods. In that case,
Aluminium dross was considered to be a refuse.
Following the decision in Khandelwals case, the tribunal, in Tata
Iron & Steel Co. Ltd v. CCE , has held that a waste product is excisable
if classified under the central excise tariff. In CCE v. Oswal Vanaspati
& Allied Industries, it was held that spent earth is excisable goods in
the fact it is classifiable under a particular subheading of the Central
Excise Tariff.
It is important to note here that as the excise duty is on the
manufacture, the waste and scrap actually generated in the course
of manufacture alone is chargeable to duty and the waste and scrap
generated without any process is not liable to excise duty. For example
Resin packed in drums was purchased as input by a factory and
Modvat credit availed. After emptying the drums, they are collected
and sold as waste/scrap without payment of duty. Merely emptying
drums/barrels of its contents will not amount to manufacture as no
new commercially different product has emerged.
In this case of BC Limited the issue is of dutiability of waste. Here
BC Limited can make an appeal if waste generated is not different
from refuse, ashes, rubbish as decided by Supreme Court in UOl v.
Aluminium Co. Ltd.
Second Prize
Central Excise Act, 1944 does not contain any specific provisions
with respect to levy of excise duty on waste and scrap. Section 3 is
the charging Section of Central Excise Act, 1944 which imposes duty
on excisable goods manufactured or produced in India. As waste
and scrap are not manufactured but arise as a result of manufacture
or final product, therefore, generally there should not be levied any
tax on waste and scrap.
For clear position reference has to be given to some case laws. In
case of Modi Rubber Ltd., it was held that even though the waste was
capable of fetching some amount of sale it would not be chargeable
to excise duty. Later on in Asiatic oxygen Ltd. v. CCE, it was held that
question as to whether waste would be charged to duty or not would
depend upon:
l Whether a process of manufacture has taken place.
l Whether the waste generated is marketable.
However, when the new tariff was introduced in 1985, individual
subheadings were incorporated under the relevant chapters, in order
to charge excise on waste and scraps. For example, under Chapter
39 relating to plastics, entry 39 - 15 specifies waste and scrap of
plastic goods. In Khendelwal Metal and Engg. Works v. UOI the
Supreme Court held that notwithstanding that waste and scrap arose
as intermediate product chargeability to duty would arise if it was
marketable. The scrap would be liable to duty if it is known in
commercial parlance by that name and has an established market.
In Greysham v. CCE, it was held that waste and scrap of steel
arising during manufacture is dutiable, as it is marketable and
specifically mentioned in tariff. The waste and scrap will not be
'excisable goods unless they are specified in Central Excise and
Tariff Act,1985. Hence, every waste and scrap that is sold is not
necessarily a marketable commodity as known to commerce and
which it may be worthwhile to trade in. Thus dross and skimming
arising during manufacture of Aluminum is not excisable goods.
Therefore, in the light of above the waste, which is produced by BC
LIMITED, is only taxable if it is marketable and excisable i.e. mentioned
in Central Excise and Tariff Act,1985 (CETA).

Attention Students!

SUBSCRIPTION TO CHAR TERED

CHARTERED
SECRETAR
SECRETAR
ARYY
Students may perhaps be aware that the Institute has been bringing out a monthly journal Chartered Secretary for
corporate professionals for the last over thirty-five years. The journal is rated to be one of the best professional journals
consistently maintaining high standards in providing Government notifications, legal decisions and analytical and informative
articles. The journal is not only important for corporate professionals, members of the Institute and lawyers but is equally
important for students for keeping them well informed about the latest changes and developments.This in turn will not
only help the students to write their examinations well but will also help them to step into the professional world with
confidence. The Legal World section provides all the latest and important cases, the From the Government column
provides changes/ amendments in various statutes/Laws/Rules etc. and the Articles section provides informative and
analytical articles on contemporary topics.
The annual subscription of the journal is Rs. 500/-for members whereas the same is supplied at a concessional
annual subscription of Rs. 300/- to the Registered Students of the Institute. It is in the interest of the students to
subscribe to the Journal. Students interested in receiving the monthly journal Chartered Secretary may send a Demand
Draft favouring the Institute of Company Secretaries of India for an amount of Rupees 300/- and forward the same to :
Joint Director (Publications)
The Institute of Company Secretaries of India
22, Institutional Area, Lodi Road, New Delhi-110003.

Student Company Secretary 29 February 2006

 STATUS OF TRAINING
(Period from 01-01-2006 to 31-01-2006)
15 Months Training with Company/Company Secretary in Practice and 03 Months & 15 days Practical Training
STAGE-I STAGE-II
Biodata of the students sent to the companies/company Students sponsored for training
secretaries in practice for consideration
APPLICATIONS CASES
Pending Received Forwarded for Pending Pending Received No. of students Pending
Training as on during the consideration as on as on during who have been actually as on
Type 31.12.05 month (upto 31.01.06) 31.01.06 31.12.05 the month taken for training 31.01.06
(upto 31.01.06)
15 Months in NIL 33 18 15 NIL 38 24 14
Companies
15 Months with NIL 4 4 NIL NIL 15 15 NIL
CS in Practice

3 Months in NIL 47 47 NIL

Company/
15 Days in
Optional Area
2. Exemption
1. Number of applications pending as on 31.12.2005 : NIL
2. Number of applications received for exemption : 24
3. Number of exemptions granted : 24
4. Number of pending applications as on 31.01.2006 : NIL

SCHEDULE OF TRAINING ORIENTATION PROGRAMMES (TOP)

Organised by Date Venue of the Programme Contact Address
EIRC of 04.04.2006 EIRO Premises Executive Officer, EIRO of the ICSI, ICSI-EIRC Bldg., 3-A, Ahiripukur 1st
the ICSI to Lane, Near Beck Bagan Nursing Home, Kolkata-700019 Tel. : 22832973/
08.04.2006 22816541 Fax No. : 033-22816542 E-mail : eiro@icsi.edu
NIRC of 27.03.2006 NIRO Premises Executive Officer, NIRC of the ICSI, ICSI-NIRC Bldg., Plot No. 4, Prasad
the ICSI to Nagar Institutional Area, Rajendra Place, New Delhi-110005 Tel. : 25763090/
31.03.2006 25767190 Fax No. : 25722662 (Code No. 011) E-mail : niro@icsi.edu,
icsi@eth.net
Chandigarh 21.05.2006 To be announced Secretary, Chandigarh Chapter of NIRC of the ICSI, GGDSD College, Sector-
Chapter of NIRC to 32C, Chandigarh-160047 Tel. : 0172-2661840
of the ICSI 25.05.2006
Jaipur Chapter 22.03.2006 Chapter Premises Executive Officer, Jaipur Chapter of NIRC of the ICSI, A-5/A, Institutional
of NIRC of to Area, Jhalana Doongri, Jaipur-302004 Tel. : 0141-2707236/2707736
the ICSI 26.03.2006 E-mail : jpicsi@datainfosys.net
Kanpur Chapter 11.03.2006 Kanpur Chapter Premises The Chairman, Kanpur Chapter of NIRC of the ICSI, 118/90, Gumti Plaza,
of NIRC of to Kaushalpuri, Gumti No. 5, Kanpur-208012 Tel. : 0512-2296535
the ICSI 15.03.2006 Fax : 0512-2212767 E-mail : kcics@sancharnet.in & kanpur@icsi.edu
SIRC of 14.03.2006 SIRC Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam,
the ICSI to Premises Chennai-600035 Tel. :044-28279898/28268685 Fax No. : 044-28268685
18.03.2006 E-mail : icsisirc@md3.vsnl.net.in/siro@icsi.edu
Hyderabad 07.03.2006 Chapter Premises Programme Co-ordinator, Hyderabad Chapter of SIRC of the ICSI,
Chapter of SIRC to 6-3-609/5, Anand Nagar Colony, Khairatabad, Hyderabad-500004
of the ICSI 11.03.2006 Tel. : 23399541/23396494 Fax No. : 040-23325458
E-mail : hyderabad@icsi.edu
Bangalore 06.03.2006 Chapter Premises Executive Officer, Bangalore Chapter of SIRC of the ICSI, Sheriff Chambers,
Chapter of SIRC to 3 rd Floor, Rear Block, 14, Cunningham Road, Bangalore - 560052
of the ICSI 10.03.2006 Tel. : 080-22286574/22287158 Fax No. : 22261861
E-mail : bangalore@icsi.edu, icsibc@sify.com
The schedule of other TOPs proposed to be organized during 2006 is as under :
SIRC : 04.09.2006 to 08.09.2006
Bangalore Chapter : 04.09.2006 to 08.09.2006

Student Company Secretary 30 February 2006

 SMTP ORGANISED BY H.Q./REGIONAL COUNCILS/CHAPTERS
ELIGIBILITY OF PARTICIPANTS : ICSI Final passed candidates. SMTP COURSE CONTENTS: Module I-Filling and Filing of Forms under the
Companies Act, 1956. q Module II-Practical and Procedural Aspects of Convening and Conducting Board Meetings & Annual General Meetings
and Related Aspects. q Module III-Managing Public Issues. q Module IV-Loan Documentation, Joint Ventures & Foreign Collaborations, Raising
Finance through EURO Issues and Export & Import Procedures and Documentation. q Module V-Practical and Procedural Aspects relating
to Appearance before CLB/Under SICA, Consumer Protection Act and Case Studies in RTP/UTP. In addition, the participants would be exposed
to case studies and mock board/general meeting, etc.
Organised by Dates & Duration Venue of Programme Contact Address
NIRC of 03.03.2006 NIRC Premises Executive Officer, NIRC of the ICSI, ICSI-NIRC Bldg., Plot No. 4, Prasad
the ICSI to Nagar Institutional Area, Rajendra Place, New Delhi-110005 Tel. : 25763090/
18.03.2006 25767190 Fax No. : 25722662 (Code No. 011) E-mail : niro@icsi.edu,
icsi@eth.net
Chandigarh 30.04.2006 To be announced Secretary, Chandigarh Chapter of NIRC of the ICSI, GGDSD College, Sector-
Chapter of NIRC to 32C, Chandigarh-160047 Tel. : 0172-2661840
of the ICSI 14.05.2006
Jaipur Chapter 01.03.2006 Chapter Premises Executive Officer, Jaipur Chapter of NIRC of the ICSI, A-5/A, Institutional
of NIRC of to Area, Jhalana Doongri, Jaipur-302004 Tel. : 0141-2707236/2707736
the ICSI 18.03.2006 E-mail : jpricsi@datainfosys.net
SIRC of 08.03.2006 SIRC Premises Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam,
the ICSI to Chennai-600035 Tel. :044-28279898/28268685 Fax No. : 044-28268685
24.03.2006 E-mail : icsisirc@md3.vsnl.net.in/siro@icsi.edu
Bangalore 13.03.2006 Chapter Premises Executive Officer, Bangalore Chapter of SIRC of the ICSI, Sheriff Chambers,
Chapter of SIRC to 3rd Floor, Rear Block, 14, Cunningham Road, Bangalore - 560052
of the ICSI 29.03.2006 Tel. : 080-22286574/22287158 Fax No. : 22261861
E-mail : bangalore@icsi.edu, icsibc@sify.com
Hyderabad 13.03.2006 Chapter Premises Programme Co-ordinator, Hyderabad Chapter of SIRC of the ICSI,
Chapter of SIRC to 6-3-609/5, Anand Nagar Colony, Khairatabad, Hyderabad-500004
of the ICSI 29.03.2006 Tel. : 23399541/23396494 Fax No. : 040-23325458
E-mail : hyderabad@icsi.edu
WIRC of 10.03.2006 ICSI-CCRT Joint Director, WIRO of the ICSI, 13 Jolly Maker Chambers No. 2, First Floor,
the ICSI to Plot No. 101, Sector 15 Nariman Point, Mumbai-400021 Tel.:22047580/22021826/22844073/
26.03.2006 Institutional Area 22047569 Fax No. : 022-22850109 E-mail : wircicsi@vsnl.com/ wiro@icsi.edu
CBD Belapur
Navi Mumbai-400614
CCRT of 18.03.2006 ICSI-CCRT Programme Co-ordinator, SMTP, CCRT of the ICSI, Plot No. 101, Sector-15
the ICSI to Plot No. 101, Sector 15 Institutional Area, CBD Belapur, Navi Mumbai-400614
02.04.2006 Institutional Area Tel. : 27577814-16 (STD Code : 022) Fax No. : 022-27574384
(Residential CBD Belapur E-mail : ccrt@vsnl.com
SMTP) Navi Mumbai-400614
The schedule of other SMTPs proposed to be organised by NIRC, SIRC & Bangalore Chapter during 2006 is as under :
NIRC : (1) 26.04.2006 to 12.05.2006 (2) 30.05.2006 to 15.06.2006 (3) 01.07.2006 to 19.07.2006
(4) 01.08.2006 to 19.08.2006 (5) 04.09.2006 to 20.09.2006
SIRC : (1) 26.07.2006 to 11.08.2006 (2) 12.09.2006 to 28.09.2006
Bangalore Chapter : 11.09.2006 to 27.09.2006

SCHEDULE OF ACADEMIC DEVELOPMENT PROGRAMMES (ADP)

Every student of the Institute who has been sponsored for 15 months training with effect from 01.07.2004 either in a company or under a Company
Secretary in Practice is compulsorily required to attend and complete 25 Hours Academic Development Programmes (ADP). The duration of each
ADP would be eight hours and those who have attended three such programmes would be deemed to have attended 25 Hours ADP. Fee
Rs. 250/- per participant per ADP.
The Schedule of ADPs proposed to be organized by Regional Councils/Chapter is as under :
Organised by Day & Date Venue of the Contact Address
Programme
NIRC of 15.04.2006 NIRO Premises Executive Officer, NIRC of the ICSI, ICSI-NIRC Bldg., Plot No. 4, Prasad
the ICSI Nagar Institutional Area, Rajendra Place, New Delhi-110005 Tel. : 25763090/
25767190 Fax No. : 25722662 (Code No. 011) E-mail : niro@icsi.edu/icsi@eth.net
SIRC of 29.04.2006 SIRO Premises Deputy Director, SIRC-ICSI House, No. 9, Wheat Crofts Road, Nungambakkam,
the ICSI Chennai-600035 Tel. :044-28279898/28268685 Fax No. : 044-28268685
E-mail : icsisirc@md3.vsnl.net.in/siro@icsi.edu
Hyderabad 09.04.2006 Chapter Premises Programme Co-ordinator, Hyderabad Chapter of SIRC of the ICSI, 6-3-609/5,
Chapter of SIRC Anand Nagar Colony, Khairatabad, Hyderabad-500004 Tel. : 23399541/
of the ICSI 23396494 Fax No. : 040-23325458 E-mail : hyderabad@icsi.edu

Student Company Secretary 31 February 2006

 NEWS AND ANNOUNCEMENTS
NEWS AND ANNOUNCEMENTS
EASTERN INDIA REGIONAL COUNCIL
TWELFTH TRAINING ORIENTATION PROGRAMME
From 16.1.2006 to 20.1.2006 the Regional Council conducted its
12 th Training Orientation Programme. The programme was
inaugurated by S. Gangopadhyay, Past President, The ICSI. Santosh
Kumar Agarwala, Chairman, TEFC of EIRC in his welcome address
stated that by virtue of statutory provisions the company secretaries
get the unique opportunity to interact with the Board of Directors of a
company. He said that before a student commences training he should
be able to appreciate the corporate culture and need an attitudinal
transformation from being a student to a professional. The programme
is supposed to groom them accordingly. He advised the students to
keep themselves abreast with latest amendments to be able to meet
professional challenges. He narrated some experiences of his early
days in the profession to boost the morale of the participants.
Rajesh Poddar, the then Vice Chairman in his address emphasised
the need for training for building a sound professional. He advised
the students to take note of what will be taught and to interact with
the faculties to clear their doubts during the programme. He also
advised the participants to study them carefully and preserve it for
future life. He was hopeful that inputs provided in such orientation
would definitely help a lot.
S. Gangopadhyay while addressing the participants stated that
the CS curriculum is able to build a solid backbone of knowledge in
the students, what is required to give a final touch in the making of a
professional is the training. Practice makes a man perfect. He said
that pleasing personality and right professional attitude is the need of
the hour. He urged the participants to utilize the TOP platform to
equip themselves for their forthcoming training days. Every
professional must have undergone training to be able to learn the
practical ways of trade. He also added that the TOP will motivate the
students to utilize the training to the fullest and urged upon them to
regard their seniors at workplace as Guru and learn from them. He
was sure that after attending the training orientation programme the
students will be able to think , talk, behave , dress and work like
professionals.
Subrata Kumar Ray, the then Secretary, EIRC spoke about the
concept of TOP. He advised the students to be humble enough to
accept their ignorance and learn while undergoing training.
At the valedictory session of the Training Orientation Programme
held on 20.1.2006 Subrata Kumar Ray, Vice Chairman, EIRC said
that mere study is not enough, some sharpening of skills is also
necessary. He stated that students should be careful in writing correct
English. Such orientation programme help the students in this regard
and the students should be modest enough to seek knowledge and
that there is no shortcut to hard work.
Ashok Kumar Parekh, Secretary, EIRC advised the students to
inculcate professional attitude right from the beginning. He was of
the opinion that such programmes will be of immense help for the
students in grooming their right attitude towards working in the
industrial houses.
Mahesh Shah, Past President of the ICSI was the chief guest of
the valedictory session who apart from the valedictory address also
distributed TOP Completion Certificates to the eligible students. He
also advised the students to keep themselves updated on day- to-
day basis.
BHUBANESWAR CHAPTER
CAREER AWARENESS PROGRAMMES
On 31.01.2006, the Chapter organised a career awareness
Student Company Secretary
programme at P.G. Department of Commerce, Utkal University,
Bhubaneswar. Prof. R.K. Bal and Prof. J.K. Parida, of the Commerce
Department attended the programme. S.S. Sonthalia, Vice Chairman
and D.M. Rao, Managing Committee Member of the Chapter
addressed the students on the occasion.
In his welcome address, Prof. R.K. Bal hoped that all students
from the P.G Department of Commerce must have a fair knowledge
about the Company Secretary course and its future prospects as one
of the pioneering professional courses in India to-day. He lauded the
efforts of the ICSI, Bhubaneswar Chapter for bringing awareness
among the students on CS course.
S.S. Sonthalia, Vice Chairman is his address advised the students
to choose CS course as a career option to become a corporate leader.
He said that they have come here to apprise the students about the
position and the role of a Company Secretary in public sector as well
as in the private sector and also as an independent practitioner. D.M.
Rao, Member of the Managing Committee explained the students
the admission procedure, various fee structure, course contents,
syllabus, coaching & library facilities and other programmes conducted
by the ICSI on regular basis for the benefit of the students. He advised
the students to contact the Chapter office for admission and other
procedural aspects. He also informed the students about the
construction of new office building of the Chapter, wherein all
infrastructural facilities will be created and provided to the students.
Multimedia presentation on CS course supplied by the Institute was
shown to the students during the programme through LCD projector.
Institute's published brochures were also distributed among the
students. U.C. Mishra, Chapter Official arranged the entire programme
in coordination with the P.G Department of Commerce of Utkal
University.
Again on 10.01.2006, the Chapter organized a Career Awareness
Programme at Banki Autonomous College, Dist: Cuttack, Orissa
wherein S.S. Sonthalia and D.M. Rao, addressed the students and
the faculty members of the college.
Dr. S.K. Pattnaik, Principal & Dr. S.N. Padhi, HOD, Commerce in
his welcome address advised the students that the ICSI is a very
reputed Institute in India providing company secretaryship course,
which is one of the prestigious professions in the country today. They
appreciated the efforts of the ICSI, Bhubaneswar Chapter for bringing
awareness among the students of different colleges of Orissa, which
will definitely help them in planning their future career.
While S.S. Sonthalia, spoke about the Institute, role & functions
of the Company Secretary, its future prospects & job opportunities,
D.M. Rao, spoke about the course curriculum, admission procedure,
various fees, training procedure, date of examination and declaration
of results, library, system of coaching and other student related
facilities being provided by the Institute on regular basis. They advised
the students to start the course right from 10+2 level. Institute's
published pamphlets explaining CS Foundation and Intermediate
Course, Role of Company Secretary and FAQ on Company
Secretaries Course were distributed among the participating students
and lecturers of the college. U.C. Mishra, Chapter official arranged
and co-coordinated the programme.
PARTICIPATION OF CHAPTER STUDENTS IN ICSI
LIVE PANEL DISCUSSION
On 31.1.2006, the students of the Chapter visited the local IGNOU
Study Centre to watch the nation wide ICSI LIVE panel discussion on
GD-II on MCA-21. During the live panel discussion students of the
Chapter raised telephonic queries on the topic, which were clarified
by the panelists. U.C. Mishra, Junior Assistant coordinated with the
IGNOU center and also accompanied the students to visit the IGNOU
studio at Bhubaneswar.
NORTHERN INDIA REGIONAL COUNCIL
VALEDICTORY FUNCTION OF 99TH SMTP
On 8.12.2005 the Valedictory Function of the 99th SMTP was held
32 February 2006
 NEWS AND ANNOUNCEMENTS
at ICSI-NIRC Building, New Delhi. P.K. Bhalla, Executive Director,
Mawana Sugars Ltd. was the chief guest who gave a brilliant piece of
advice to the young budding professionals. The academic knowledge
is to be put to practice then the success follows. Success demands
hard work and patience. It does not come overnight. Communication
skill is an important element of success. There is no school to teach
that. The Chief Guest also impressed upon the participants that there
is huge world of opportunities ahead but there is no bed of roses.
One has to strive hard and grab the opportunities. Earlier G.P. Madaan
complemented the participants on their successful completion of
training. In his opening remarks, he drew the attention of the
participants that we are passing through the era of merger/
amalgamation. Those who develop expertise in this field will yield
high rewards. Innumerable developments are taking place globally.
India, as a part of globalization is making strides in economic progress.
Limited Liability Partnership is being introduced. Corporate tax
collections have gone up by 25% despite losses by oil majors. All
these developments augur well for the Professionals. Satwinder Singh
emphasized the need for embracing the change that demands
updation. Life is a school of learning. A company secretary is holding
a core position and one can climb high if one learns to apply the
knowledge. The function concluded with the distribution of certificates
to the participants
INAUGURATION OF 100TH SMTP
On 27.12.2005 the 100th SMTP conducted by the Regional Council
was inaugurated at ICSI-NIRC Auditorium, New Delhi. Deepak Kukreja
in his opening remarks appreciated the efforts made by the participants
to reach this last leg of training. He advised them to expand their horizon
of knowledge by day to day updation. Hitender Mehta in his welcome
address apprised the participants of the opportunities and challenges
open to the professionals. He also impressed upon the participants
that SMTP is a platform to strengthen their professional skill and to
provide an opportunity to interact with faculty in their respective fields
of expertise. The other area covered by the SMTP is personality
development a sine qua non for personal growth. He urged all the
participants to realize and fully utilize entry level statutory recognition.
Yogesh Gupta hailed the event of 100th SMTP of NIRC as a
memorable one. The experience in SMTP is altogether different from
others, rich benefits can be reaped by interacting with the faculty.
S Kumar expressed his happiness over conducting of 100th SMTP.
He cautioned the participants that the globalization, liberalisation and
privatization cast more responsibilities on the professionals.
Knowledge comes, no doubt from books, but ready information comes
from Senior colleagues of the profession. He strongly urged the
participants to make every endeavour to interact with the faculty during
the last 15 days of training. S Kumar also gave some tips to the
participants.
Nesar Ahmad elaborated on the opportunities available to the CS
profession especially in the practising area. He also assured that the
Institute would make all the efforts to improve the visibility of the
profession. India is now being considered as global hub for services.
we should be a part of that service sector boom.
G P Madaan extended his warm welcome to the participants of
100th SMTP. G P Madaan was full of compliments for the participants.
India is on the threshold of economic explosion. The concept of limited
partnership, Right to Information Act, the Companies (Amendement)
Bill, all augur well for the profession. In conclusion he asserted that
there are opportunities but one should be able to seize them. Exchange
of ideas enhances the abilities.
MOOT COURT COMPETITION
On 28.12.2005 the Regional Council conducted a moot court
competition for its students at ICSI-NIRC auditorium, New Delhi. A.K.
Soni, Advocate, Supreme Court acted as the judge whereas Shikha
Goel and Latika Aggarwal were the student counsels for the petitioners
while Aditya Singhal and Aashima were the counsels for the
respondents.
Student Company Secretary
FARIDABAD CHAPTER
ORAL COACHING FOR JUNE 2006 EXAMINATIONS
The Chapter in collaboration with DAV Institute of Management
Faridabad (Haryana) proposes to conduct Oral Coaching
Classes for Foundation and Intermediate Courses of the Institute
for June 2006 examinations. For admission and other details
contact DAV Institute of Management, NH3, NIT, Faridabad
121005. Co-ordinators : Gaurav Arora-Faridabad Chapter of the
ICSI (Mobile : 9891332610); Juhi Kohli The DAV Institute of
Management (Mobile : 9810344129).
JAIPUR CHAPTER
ACADEMIC DEVELOPMENT PROGRAMME
On 22.1.2006 the Academic Development Programme conducted
by the Chapter was held at its premises. Arunima Bhatanagar speaker
of the First session addressed on Listing of Securities and participants
were informed about the procedure and rules. In the 2nd session Amrita
Khandelwal apprised the participants about IPO through Book Building
procedure. In the 3rd session Mayank Sharma informed in detail the
skills of making an effective presentation and thereafter a mock group
discussion was held.
SOUTHERN INDIA REGIONAL COUNCIL
INAUGURATION OF REFURBISHED LIBRARY OF THE
ICSI SIRC
On 16.1.2006 the refurbished Library of The ICSI SIRC situated
at ICSI-SIRC House, Chennai was inaugurated by R. Ravi, the then
President, The ICSI. The well furnished Library with latest books of
professional relevance also had two computers exclusively for the
use of Library Members which were donated by M/s. Surana & Surana,
International Attorneys, Chennai. R. Ravi and R. Sridharan, then
Chairman, SIRC also spoke on the occasion.
BANGALORE CHAPTER
CAREER COUNSELLING PROGRAMMES
On 1.12.2005 and 2.12.2005 the Chapter conducted two different
Career Counselling Programmes at Christ College, Bangalore. Over
150 students on the first day and over 200 students on the second
day of the 2nd year Pre-University stream attended the programmes.
The first programme was addressed by Sangeetha Flora, Executive
Officer of the Chapter Office while J. Sundharesan, then Chairman of
the Chapter addressed on the second day.
The speakers explained in detail the course offered by the Institute
and eligibility criteria for the course, examination, requirements of
training etc. She also highlighted the importance of making the right
career choice so as to be successful in life. She then spoke about the
role of a Company Secretary and importance of the profession of
Company Secretary in the changing economic scenario. She also
highlighted the opportunities available to anyone who has completed
a Company Secretaryship course. She further enumerated the
emerging areas of practice and the changing role of a Company
Secretary. She also focused on what would be the mindset and
preparation required from a student who wanted to pursue the
Company Secretaryship Course. Brochures containing brief details
of the Company Secretaryship Course were distributed to the
participants.
Sangeetha Flora clarified the various doubts and issues raised by
the participants on both the days.
COIMBATORE CHAPTER
INAUGURATION OF ORAL COACHING CLASSES
On 4.1.2006 the Chapter inaugurated the June 2006 session of
Foundation, Intermediate Group-I & Group-II Oral Coaching Classes.
G. Vasudevan, G. Balasubramaniam and R. Maheswaran, faculties
gave a detailed account of the course contents and training
requirements.
33 February 2006
 NEWS AND
INTERACTIVE SESSION WITH STUDENTS
On 10.1. 2006 the Chapter organized an interactive session with
R.Sridharan, then Chairman, SIRC relating to recent developments
in the profession. He described new avenues of practice for Company
Secretaries and other opportunities available in the wake of economic
growth in the country.
HYDERABAD CHAPTER
CAREER AWARENESS PROGRAMME
On 28.1.2006 the Chapter organized a Career Awareness
Programme for Dharmavaram Handloom Silk Sarees Manufactures
& Merchants Sangham Association officials at the request of the
Association. V.Ahalada Rao, Chapter Chairman welcomed the
gathering and explained about the Institute, Company Secretaryship
Course, difference between the regular course and professional
course, role & importance of the Company Secretary to the corporate
world, system of imparting oral coaching, examination pattern etc.
through a presentation. KK Rao, Chapter Treasurer
explained the functions of Private Companies, Public Companies and
Non-profit organisations (Companies under Section 25 of the
Companies Act, 1956). He also highlighted the role played by
Company Secretaries in Companies.
Again during the month of January 2006 the Chapter conducted a
number of Career Awareness Programmes which were as under :
On 3.1.2006 the Career Awareness Programme was held at
Government Degree College for Women. S.Bala Chandra, company
secretary addressed the gathering; on 4.1.2006 the programme was
held at Kesav Memorial Degree College. V.Ahalada Rao, the then
Vice-Chairman of the Chapter addressed the gathering; on 6.1.2006
at Dr.Ambethkar Degree College, AV Syamala , Member, SIRC
addressed the gathering; on 7.1.2006 at RK Degree College,
Kamareddy for B.A I, II year students, B.Sc I, II & III year students,
on 9.1.2006 at Karshak Engineering College V. Ahalada Rao,
addressed the gathering, on 16.1.2006 at Government Jr. College,
S.Bala Chandra Company Secretary addressed the gathering; on
20.1.2006 at Signodia Degree College, V.Ahalada Rao & Ajay Kishen
Company Secretary addressed the gathering; On 24.1.2006 at Ideal
Jr. College. V. Ahalada Rao and A. Ravi Shankar, Company Secretary,
addressing the gathering; On 25.1.2006 at Agarwal Jr. College for
Boys, Radha Krishna Womens College for 1 year students and at
Durgaprasad Banwalarlal Girls Jr. College. Datla Hanumanta Raju,
Council Member, the ICSI addressed the gathering; on 28.1.2006 at
AV College, V. Ahalada Rao, Mahipal Reddy & Ajay Kishan,Company
Secretaries addressed the gathering; On 30.1.2006 St.Anns
Jr.College, Dr.P.V.S. Jagan Mohan Rao, past President, the ICSI
addressed the gathering.
MADURAI CHAPTER
CAREER AWARENESS PROGRAMME
On 20.1.2006 the Chapter conducted a career awareness
programme at Mangayarkarasi College for Women Arts Science College
Madurai, for B.Com I & III year, BBA I & III year students.
V.S.Krishnamurthy, Vice Chairman of the Chapter explained about the
Institute, Course structure of foundation and Intermediate levels, course
fees, subjects, admission procedures, examination details etc. He also
explained the company secretary course in employment and in practice.
Pamphlets of the Foundation and Intermediate course were distributed
among the students, Institutes CD was screened through LCD
presentation. Nearly 250 students attended the programme.
PALAKKAD SATELLITE CHAPTER
INAUGURATION OF THE SATELLITE CHAPTER
On 10.1.2006 the Palakkad Satellite Chapter of SIRC of the ICSI
was inaugurated by R.Ravi, then President, the ICSI in the august
presence of S.S. Moni, Managing Director, Malabar Cements Ltd.
Palakkad who was the Chief Guest of the function, R. Sridharan,
then Chairman, SIRC of the ICSI and in the presence of a good
Student Company Secretary
ANNOUNCEMENTS
audience notably, Chairmen of Palakkad Branch of SIRC of the ICAI
& ICWAI and members of professions. The Chief Guest spoke about
the growing awareness of professional ethics in the Corporate
Management and the key roles company secretaries have been
playing in this sphere.
R. Ravi in his address stated that the Institute has adopted a new
Vision and Mission considering the four key developments in
corporate world viz. Corporate Governance, Technology, Globalisation
and Public-private partnership. He stated that the new vision of the
Institute is of a global leader with commitment in development of
professionals, specialized in corporate governance and global
leadership, but not a global dominance. He also spoke about the
various efforts taken by the Institute to bring company secretarial
services under the service secretoral classification list of the WTO
and Internationalisation of company secretary profession.
R. Ravi explained the MOU signed between the ICSI and the
Institute of Chartered Secretaries and Administrators, UK. He further
stated that Federation of Company Secretaries with its Secretariat
ICSI has been constituted with participation of the Institutes of
Bangladesh, Kenya and Pakistan so that the global brand Company
Secretary would help the profession to work unitedly at the WTO and
such other multi lateral forums. He also spoke about Information
Technology as well as IT enabled services where company secretaries
can play their role for establishment of 100% export oriented units for
IT and BPO industries, foreign collaboration, and joint venture
agreements etc. He opined that in this age of globalisation, a company
secretary can render services in Multinational Regulatory Framework
and Corporate Governance, Business Process Outsourcing,
Commercial Arbitration, Fund Raising, Intellectual Property Rights,
Legal and Compliance Management etc.
Ravi spoke about the in principle agreement between the
professions of ICSI, Chartered Accountants and Cost and Works
Accountants for a multi disciplinary partnership and he stated that
this will be realized soon after suitable amendments to the Acts
governing these professions are approved. He stated that in order to
increase competency to appear before the national Company Law
Tribunal and the Competition Commission, it is proposed to invigorate
efforts to develop deeper skills and expertise of the members of the
Institute. He viewed that the registration granted by the Ministry of
Company Affairs to the Institute under the aegis of investor education
and protection fund is a significant and major milestone. He also
lauded the New Company Law (Irani Committee Report) for the
importance given to the profession of company secretaries.
S. Sridharan in his key note address explained the salient features
of the profession and the par excellence of this profession. A Managing
Committee of the Chapter was constituted and following office bearers
have been elected : M. Damodaran Chairman; P.K. Padmanabhan,
Vice Chairman and Secretary and Faroz Khan,Treasurer.
A press conference was addressed by the President in the
Afternoon. Sreedharan, Damodaran, Padmanabhan and Feroz Khan
were present at the press conference.
A meeting of HODs of the leading colleges in Palakkad and a
students meet were also held in the afternoon. Sreedharan, elaborately
explained about the profession of Company Secretaries at the students
meeting.
WESTERN INDIA REGIONAL COUNCIL
TWELFTH TRAINING ORIENTATION PROGRAMME
(TOP)
From 17.1.2006 to 21.1.2006 the Regional Council organised its
12th Training Orientation Programme (TOP) at CCRT, Navi Mumbai.
Fifty Six candidates enrolled and completed, the programme
successfully. Antony Paul, Joint Director CCRT was the Co-ordinator
of the programme.
On 17.1.2006 at the inaugural session, S.N.Ananthasubramanian,
34 February 2006
 NEWS AND ANNOUNCEMENTS
the then Chairman, WIRC addressed the participants emphasizing
on personality development, communication and other soft skills. He
also stressed the importance and relevance of Training. Earlier Paul
explained the modalities and the structure of the Five days
programme.
A galaxy of senior /experienced company secretaries and other
professionals addressed the participants on various subjects like
Personality Development, Communication & Presentation Skills; Use
of Information Technology in work areas especially company
secretaries, Code of Conduct & Ethics, Office Culture & Organizational
Behaviour, Drafting of documents Minutes, Notices, Resolutions,
Functioning of Stock Exchanges, CLB, ROC, SEBI, RBI etc. and
practical aspects of Company Secretarys work. One session on Group
Discussion with practical tips and example was also arranged.
Besides, interactive sessions on Corporate Governance & Clause 49
and SSB were also organized. The Co-ordinator also explained the
procedures & formalities regarding Training Requirements under CS
Regulations.
On 21.1.2006 at the valedictory session Arvind Guadana,
Chairman WIRC and A. Lahiri, Dean CCRT were the guest speakers
who addressed the gathering highlighting the importance of interaction
with senior members/other professionals so as to gain more
knowledge which is a must to cope up with increasing demands of
varied nature of professional work/assignments. During the session,
Training Completion Certificates were distributed to all the eligible
candidates.
SIXTY EIGHTH SECRETARIAL MODULAR TRAINING
PROGRAMME
From 3.12. 2005 to 18.12.2005 the Regional Council conducted
its 68th Secretarial Modular Training Programme at CCRT, Navi
Mumbai. In all 22 candidates enrolled and successfully completed
the 15 days programme.The programme was inaugurated by S.N.
Ananthasubramanian, then Chairman WIRC.
During the fifteen days programme senior and experienced
company secretaries and other professionals experts addressed the
participants on various subjects such as Corporate Governance ,
IPO, ADR, GDR, Forex & Treasury Management, Joint Venture &
Foreign Collaboration etc. to name a few. Participants were also
exposed to practical and procedural aspects of working of company
secretary especially convening and conducting of AGMs and Board
meetings and appearance before CLB. During the programme visits
to Stock Exchange and Share Depositories were organised. Special
sessions were also organized on Commodity Exchange Leadership
and Financial Statement Analysis-Case studies.
On 18.12.2005 participants were divided into three groups
presented their group projects on the following subjects: 1. IPO;
2. IPR and 3. Arbitration.
Out of the above three project presentations, the presentation
made by Group I on IPO was adjudged as the best one. Tanay Kasera
was selected as Best presenter and Manish Acharya as the Best
Participant of the whole programme.
S.R.Halbe, Practising Company Secretary was the chief guest at
the valedictory session. S.N.Ananthasubramanian, requested the
participants to give genuine feedback about the training programme
which will enable WIRC to revise the contents of the programme in
future. V.Sitapathy, Regional Council Member also addressed the
participants exhorting them to enroll in the Company Secretaries
Benevolent Fund. He also urged the participants to take full advantage
of various professional development programmes conducted by the
Regional Council/Chapters.
The Chief Guest distributed the Course Completion Certificates
and Silver Jubilee Commemorative Medallion to all the participants
of the programme. The Special Medallion was issued as a part of
Student Company Secretary
WIRCs Celebration of Silver Jubilee Year of the Institute as a Statutory
Body.
DOMBIVLI CHAPTER
CAREER FAIR 2005
From 16 to 18.12.2005 the Chapter participated in Career Fair
2005 organized at Pragati College Dombivli. The Chapter set up
informative stall and displayed banners about prospects of company
secretary in employment and self employment, eligibility requirement
for entry in to the profession of company secretaries and various
facilities available at the Chapter. Around 1500 visitors including
prospective students, parents, professors and principals of various
colleges visited the stall.
On 16.12.2005 S.N. Ananthasubramanian, then Chairman, WIRC
inaugurated the stall. Apart from Office bearers of the Chapter and
WIRC, Srividya Iyer, the faculty for Foundation Course oral coaching,
Nandlal Bafna, then Chairman , Anand Kumashi, then Vice Chairman,
Sateesh Wadagbalkar, then treasurer, Mahesh Hurgat, the then
Programme Committee Chairman of the Chapter, Rajesh Mittal,
Member of the Managing Committee contributed and guided the
visitors about admission requirements, prospects of the course and
future of the company secretary.
INDORE CHAPTER
STUDENTS PROGRAMME
On 5.1.2006 the Chapter organized a whole day programme for
the students at Indore. About 40 students took part in the programme
and made it a grand success. The highlights of the programme were
as follows: The Quiz session included questions on Corporate Laws,
General Economic Knowledge. Some questions having funny answers
were also included in it. The students were totally involved in the
session and gave innovative answers to the funny questions. In the
special performance session every student including members of the
Chapter present had to give a special performance on the specific
item of performance allocated to them and every body performed at
its best. This trend of innovativeness and enjoyment continued with
an Ad-Made Show where the reams of students were at their best.
With an intention that every student present should win at least one
prize around 70 prizes were distributed to the winners of various
competitions.
Kaushal Agrawal, then Chapter Secretary along with Rajesh
Lohiya, Shilpesh Dalal, Manish Jain, Tanay Kasera, Nitisha Kasera,
Rahul Singh and Mukesh Gupta inaugurated the programme and
they were the judges jointly or severally for all the above competitions.
All the passed out students of June 05 session of Examination present
were given a token of appreciation. Mukesh Gupta was felicitated for
his meritorious achievement. Gupta presented views about his study
by which he got 5th Rank in Final Exam of June 05 session. For
achieving special recognition in SMTP. Rahul Singh and Tanay Kasera
got special prizes. Best anchor female award was given to Neha
Asawa and for male to Gorav Jain. A special prize was given to Ruchi
Khandelwal for her active participation in the whole programme.
In the open House various suggestions of the students were noted.
Kaushal Agrawal, appreciated the contributions of this programme
organization committee comprising Neha Asawa, Rahul Singh,
Abhishek Shukla, Mukesh Gupta, Rishabh Jain, Praveen Jain, Jyotsna
Choudhary, Vaibhav Jain, Harpriya Singh, Pramod Jain and Ruchi
Khandelwal. On behalf of the Chapter Kaushal Agrawal expressed
his sincere thanks to the studens, members of the sub-committee
present and those who were not present but actively involved in the
success of the programme and also to the sponsors who provided
valuable contribution to the Chapter for the programme. The
programme was given wide coverage in the leading newspapers also.
Dainik Bhaskar, Nai Dunia, Chowtha Sansar etc. published detailed
report along with photos of the programme.
35 February 2006
 ONLINE REGISTRATION FOR FOUNDATION/REGULAR COURSE

Student Company Secretary 36 February 2006

Student Company Secretary 37 February 2006
Student Company Secretary 38 February 2006
 COMPULSORY SWITCHOVER TO NEW SYLLABUS - FINAL COURSE
1. All students are required to appear in the Final Examination to be held in June, 2006 under the New Syllabus only.
2. Their Student Registration Code Nos. have also been changed from CG/EG/NG/SGIWG to CR/ER/NR/SR/WR and the identity cards
already issued to them will hold good under the new syllabus as well.
3. With a view to mitigate the hardship to the students who have already passed any one Group of the Final Examination under the Old
Syllabus that they will have to appear in more number of papers on switch over to the New Syllabus, the Council reconsidered and
decided that a candidate at the Final Level shall be exempted on the basis of having passed/secured exemption in papers under the
syllabus specified in Part - III of Schedule CCA on switch over to the new syllabus specified in Part - III of Schedule CCB and the
following scheme of exemption shall be applicable to him:
Papers passed/exempted under the syllabus specified Exemption from papers under the syllabus specified
in Part - III of Schedule CCA in Part-III of Schedule CCB
1 Financial Management Financial, Treasury& Forex Management
2 Management Control and Information Human Resource Management and Industrial Relations
3 Corporate Tax Management - Direct Taxes Direct & Indirect Taxation - Law & Practice
4 Corporate Tax Management - Indirect Taxes Banking & Insurance-Law & Practice
5 Corporate Laws & Practice - I Advanced Company Law & Practice
6 Corporate Laws & Practice - II Corporate Restructuring -Law & Practice
7 Corporate Laws & Practice - III Secretarial Practice relating to Economic Laws and
Drafting and Conveyancing
8 Secretarial and Management Audit Secretarial, Management & System Audit
4. As per the revised scheme of exemptions approved as above, a student who has passed Group I or Group - II of the Final Examination
under the Old Syllabus comprising of four papers will be exempted from the four papers under the New Syllabus and shall be required
to appear in the remaining papers as per the following details:
TABLE OF CORRESPONDING EXEMPTIONS (FINAL)
Particulars of the Group Passed under Papers in which the student shall be Remaining Papers in which student will
Old Syllabus entitled for the Exemption under the be required to appear under the New
New Syllabus (as per revised scheme) Syllabus (as per revised scheme)
Group-I Group-II Group-I
1. Financial Management 1. Financial Treasury & Forex Management 1. Advanced Company Law & Practice
2. Management Control & Information 2. Banking & Insurance Law and Practice 2. Secretarial Practice relating to
3. Corporate Tax Management Group-III Economic Laws and Drafting &
Direct Taxes 1. Direct & Indirect Taxation Conveyancing
4. Corporate Tax Management Law & Practice 3. Secretarial Management & Systems
Indirect Taxes 2. Human Resource Management Audit
and Industrial Relations Group-II
1. Corporate Restructuring
Law & Practice
Group-III
1. WTO-International Trade, Joint Ventures
& Foreign Collaborations
Group-II Group-I Group-II
1. Corporate Laws & Practice-I 1. Advanced Company Law & Practice 1. Financial, Treasury and Forex
2. Corporate Laws & Practice-II 2. Secretarial Practice relating to Economic Management
3. Corporate Laws & Practice-III Laws and Drafting & Conveyancing 2. Banking & InsuranceLaw & Practice
4. Secretarial & Management Audit 3. Secretarial Management & Systems Audit
Group-II Group-III
1. Corporate Restructuring 1. WTO-International Trade, Joint
Law & Practice Ventures & Foreign Collaborations
2. Direct and Indirect Taxation
Law & Practice
3. Human Resource Management
and Industrial Relations
5. Students who have completed coaching for both groups of the Final Course under the Old Syllabus will be exempted from undergoing
coaching in all the three groups under the New Syllabus. However, students who have completed coaching in a single group/subject(s)
will also be eligible for the corresponding exemption as per table given under para (3) above.
6. All the students of Final Old Syllabus (Under the Compulsory Switchover Category) will be enrolled for June 2006 session of Examination
as per the above guidelines. The paper wise exemption(s) will be printed & mentioned on the Admit Card as well as in the Attendance
Sheet. In case of any discrepancy, the same may be brought to the notice of the Institute immediately or may contact Sohan Lal, Joint
Director or T.P. Balasubramanian, Desk Officer on Tele No. 41504444 Extn. 511/515.

Student Company Secretary 39 February 2006

Student Company Secretary 40 February 2006