Keeping a tab on the world of business March-April 2013
Vol IV
Message from
Ayan Mahapatra National Head - Academic Relations
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In the year 2013, five more universities have shown interest in partnering with CIMA to offer the qualification as an option to their undergraduate students.
Message from Ayan ...................1 Recap ......................................... 2 • People Matter Round Table • GBC regional round • CIMA Convocation 2013.................3
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Content
Up Next .................................... 3 • Revision Lectures • Whiz competition
Member Speak ......................... 4 Latest Vacancies on CIMA MYJOBS ....................................6 Important Dates ..................... 6 CIMA Applause – November 2012 (PC Based) ........................ 7 New Members – NovemberDecember 2012 ......................... 8 CIMA in News ............................ 8
Greetings from CIMA India!
qualification within the reach of more number of students, has led to It is my privilege to write the university partnerships with Manipal introduction to this edition of CIMA University and Symbiosis Centre of Pulse. To introduce myself, I am Ayan Distance Learning in 2012. In the year Mahapatra, my team and I work towards 2013, five more universities have shown building partnerships with educational interest to partner with CIMA to offer institutions and tuition providers in India the qualification as an option to their to make CIMA more accessible to undergraduate students. students around the country. Last year, CIMA focused on creating new In 2013, we will continue to expand our partnership network while we support learning partnerships across India with existing partners to succeed and sustain. leading professional accounting training institutions. The idea was to help CIMA students to progress to the next level of qualification and the result is visible with most of the learning partners registering pass rates above 70% and one partner even registering a 100% pass rate in November 2012 exam across all levels. Our endeavour is to make quality tuitions available in every city where we have a substantial student population. Through our learning partnerships, we have now reached out to places like Jaipur, Lucknow and Ranchi. Over the past two years, we have seen an increase in the number of students opting for tuition support with such learning partners, which is encouraging for us and our partners.
The academic relations team is proud to contribute to CIMA's mission to help people and businesses to succeed, by growing the talent pool of financially qualified business leaders, who drive business success. We are grateful to the CIMA students and members who have consistently supported our initiatives by volunteering to speak at or judge college and university events organised by CIMA. If you would like to be a part of CIMA's academic partnership initiatives in the future or would like to recommend a college/training institute in your city as a partner, please do get in touch with us. We would appreciate and look forward to your continued support.
Our efforts towards bringing the
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recap Evening Round Table with Learning and Development (L & D) Heads Date: 22 March 2013 Time: 7:00 pm to 08:30 pm Venue: The Leela Kempinski, Gurgaon
keeping it at the center of business – a time for companies to celebrate L&D and the impact it can have on business and the bottom line.
CIMA along with People Matters organised an Evening Round Table on the theme "L&D: Building Efficiency, Impacting Business" at The Leela Kempinski, Gurgaon on Friday, 22nd March 2013 from 7:00pm – 8:30pm. Kedar Vashi, National Head – Learning & Development, Hindustan Coca-Cola Beverages and Ester Martinez, Editor-inChief, People Matters Media, led the round table session. The objective of the event was to recognise that looking at learning interventions in isolation is not enough, and that this alone cannot deliver the desired business outcomes. There is a clear need to look at integration of learning initiatives and
The Round Table was attended by L&D Heads, HR Heads and Senior HR Professionals.
GBC regional round The Global Business Challenge, Regional rounds were successfully held at Delhi, Bangalore, Mumbai and Kolkata. 483 teams participated in GBC this year. We congratulate all the deserving winners of Regional Finals for CIMA GBC 2013 and also to other category-wise winners. Northern Regional Winners: Vaibhav Yadav Deepanshu Agarwal Surabhi Yadav
The Ambers
IIT Delhi
Sahebjeet Singh Arora Find the online article here to know the winners for Best Business Report, Best Speaker and other awards.
Infinity Plus One
Akshay Patil Shantanu Rai Chiranth Hegde Chirag Mahapatra
Shudh
NIT, Surathkal
Find the online article here to know the winners for Best Business Report, Best Speaker and other awards. Eastern Regional Winners:
Western Regional Winners: Soham Kanade Ashwini Kolte Prachi Vaidya Abhyudaya Choumal
Southern Regional Winners:
Sardar Patel Institute Of Technology
Find the online article here to know the winners for Best Business Report, Best Speaker and other awards.
Khushi Gupta Ajinkya Malasane Priti Choudhary Mriganka Pattnaik
Breakeven
Indian Institute Of Technology, Guwahati
Find the online article here to know the winners for Best Business Report, Best Speaker and other awards.
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Keeping a tab on the world of business
Panel Discussion with CIMA Matters Convocation 2013 People Magazine
Mumbai event Bangalore event
The CIMA India Liaison Office conducted the first ever CIMA Convocation event in Bangalore and Mumbai. Mr. Gulzari Babber, President, CIMA conferred the membership certificates
to those who acquired CIMA membership in 2012. He also presented trophies of recognition to students for outstanding performance in CIMA Exams.
Up
ne t Revision Lectures
Whiz Competition
As a continuation to our efforts to support students in the exams, we would be conducting free revision workshops for the May 2013 exam diet. We plan to hold this workshop in the form of Web conferences. The details would also be available on the CIMA Facebook Page and would be mailed to you. Dates
Morning
Afternoon
Evening
E1 - Tharindu
E3 - Arj
F1 - Tariq
E2 - Tharindu
P3 - Shrikant
F2 - Tariq
20th April 21st April 27th April 28th April 4th May 5th May Please send in your confirmations at india@cimaglobal.com
A case study competition for professionals working in different job roles across reputed organisations nationally. The competition aims to bring together tomorrow's business leaders on one common platform and help them “think and take decisions like a business leader”. The Whiz competition will challenge the participants to evaluate an industry based business scenario. The emphasis on the evaluation would be on – analysis, judgement & creativity based on the financial and non-financial data provided in the business scenario. The competition is likely to witness participation from leading organisations to compete at the city level (Bangalore, Chennai, Mumbai & Delhi) culminating in the National Finals to be held on 29th June 2013. If you would like your organisation to participate, please click on Register The registration is open from 15th March – 15th April.
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Member Speak
Shrikant Koundinya FCMA, CGMA VP-Market Development Universal Commodity Exchange Shrikant Koundinya, Vice President (Market Development & Training), Universal Commodity Exchange, is a Fellow Member of the Chartered Institute of Management Accountants having diverse experience in finance and capital markets in areas such as audit, research, ERP, MIS and training. His areas of specialisation are exchange risk management, market operations, clearing and settlement, delivery mechanism and price risk management amongst others. He has designed and delivered presentations to corporates, banks and academic institutes in all financial asset classes and was involved in imparting knowledge to regulators in Mauritius & Maldives ( Financial Services Commission, CMDA) besides taking part in the World Bank aided project, International Food Policy Research Institute (IFPRI) for training professionals from Ethiopia. Shrikant has lived and worked in Africa and the United Kingdom and has worked with a number of exchanges and corporates. He shares some vital insights and emphasises on the approach a management accountant should have. Management Accountants must apply the concepts The Changing Environment: In this day and age, we are swamped with economic information emanating from all the major economies of the world. In the commodity
As a Management Accountant working for a commodity exchange, I am perfectly positioned to spread awareness, educating various participants to hedge their raw material price risk on commodity exchanges and likewise, currency risks on currency exchanges.
space, which is and has always been a major segment within the financial asset class, even the minor economies have had major impact on businesses. An event that comes to mind is the oil pipeline explosion in Ije Ododo, on the outskirts of Lagos, Nigeria in December 2012. The International Energy Agency recently estimated that widespread thefts of crude oil in Nigeria, cost the country $7 billion a year. As the gasoline pipeline burned unstopped, countries and entities that do business involving oil watched with baited breath the price movement, and calculated risk impact. According to data compiled by the IMF, nations around the world, from Brazil to Iraq to China have bought gold to add to their official reserves. While Credit Suisse forecasts a 2013 average of over $1,700/troy ounce, it expects improved economic growth later this year to curb gold's appeal. This is again the result of economic expectations from the Euro zone and America having its impact felt across smaller economies. Turmeric exporters, from the state of Kerala in southern India watch nervously while the elephants play ball. India accounts for a little over 80% of the world's turmeric production and the manner in which the currency will move will have consequences. The problem is that the Rupee-Dollar exchange rates continue to remain volatile.
The US House of Representatives passed legislation on January 1, breaking an impasse over how to prevent more than $600 billion in tax increases and spending cuts from coming into force. The so-called fiscal cliff had threatened to push the world's largest economy into a recession. The budget package passed by Congress though won't reduce deficits enough to avoid a sovereign rating downgrade and maybe a financial chaos ahead; the rest of the world however, is watching and trying to get cues to understand its impact on business. Confused? You may be if you are not a 'Management Accountant'. As business managers we have to face economic challenges that are thrown at us which are more often than not, not due to our own making as we are merely at the receiving end and we will continue to be until economies grow to their potential. As Management Accountants we are well placed to understand the systematic risk and provide solutions to our immediate business environment and it is for us to stand-up and be counted as professionals who can decipher the complex global trends with all the economic indicators and provide clear, timely and decisive solutions to our respective corporates. Systematic risk can be mitigated only by being hedged, and as a Management Accountant working for a commodity exchange, I am perfectly positioned to spread awareness, educating various participants to hedge their raw material price risk on commodity exchanges and likewise, currency risks on currency exchanges. The CIMA syllabus is broadbased, providing us flexibility to effortlessly fit into any situation. It gives us tremendous satisfaction to relate even purely theoretical concepts to our daily work environment as below. We all know the definition of 'Perfect Competition' which has been a part of all curriculums in basic economics and also a part of 'basic economics' where it is defined as a market structure in which the following five criteria are met: 1. Many buyers & sellers 2. Freedom of entry and exit
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Member Speak 3. All firms are price takers and have a relatively small market share. 4. Perfect information 5. Homogenous or identical product It is a theoretical market concept, often used as a yardstick against which other market structures such as monopoly, oligopoly etc., are compared. However, in the ‘Exchange traded derivative’ industry, a very distinctive comparison can be made and similarities can be appreciated. It must be observed that the regulatory structure upon which exchanges are based have effectively helped in meeting some of the assumptions on which Perfect Competition criteria are based. Basic characteristics of Perfect Competition and Exchange Mechanism • Many buyers and sellers – An infinite number of consumers with the willingness and ability to buy the product at a certain price, and infinite producers with the willingness and ability to supply the product at a certain price. • On an exchange traded derivative platform, financial contract is the product that is bought and sold. On a commodity exchange the underlying for a financial derivative instrument is the physical commodity. For example, a Gold futures contract is backed up by a healthy physical market in Gold; likewise Soya bean futures contracts are backed by a flourishing Soya bean physical market. Both the exchange and the regulator take the initiative for conducting a thorough market research in order to ascertain whether a contract should be designed and launched. An existing healthy trade is an indication that there could be tremendous interest which could translate into high transaction volumes for exchange traded contracts; and in this manner the assumption of many buyers and many sellers laid out in the perfect competition assumptions is met. • Free entry and exit barriers – Lack of barriers make it extremely
easy to enter or exit a Perfectly Competitive market. • For trading purposes there are generally no entry and exit barriers in the exchange industry. As long as one trades on the exchange, within the stipulated trading hours and within the limits set for trading by the exchange/regulators (such as position limits/ financial limits), one can enter and exit the contract at will. • Participant is a price taker, and does not have the ability to influence the price of the product. • The number of trading participants for a contract automatically ensures that an individual participant, whether a buyer or seller, is not able to influence the price. • One can trade only within the limits prescribed for trading. The fact that a contract is launched for trading means that a high level of participation has been assured. In cases the participation levels were to fall, commonly referred to as 'poor liquidity', the exchange stops further launch of any new contracts in the failed commodity. • A single participant is so small relative to the entire derivative market that their presence or absence leaves the price very nearly unaffected. • Perfect information - All consumers and producers are assumed to have perfect knowledge of price, utility, quality and production methods. • On an 'Exchange traded derivatives' platform the participants have near perfect information. • Thanks to the electronic platform, the trader work station (TWS), all participants can view online the trading taking place. All participants are informed about the quantity and price of the last trade made.
• The ticker on the bottom of the screen also displays all information relevant to the contract which helps decision making. • And finally we can say that all information is available to all participants on an equitable basis; same information to all, at the same point in time. • Homogenous or identical products - The qualities and characteristics of a market good or service do not vary between different suppliers. • As far as exchange traded derivatives is concerned, we cannot have a more homogenous tradable item than a financial derivative contract, where the specifications do not change during the trading life of the contract.
Conclusion: The assumptions based on which the micro economic concept of 'Perfect Competition' is founded have been successfully adopted in exchange traded derivative segment, where almost all the conditions are met ensuring that the trading takes place in a perfect environment. It must be stated that technology is the basis on which information is decimated in an equitable manner. Trading in exchange traded derivatives instruments is a current day example where theory and realism meet. The true reward for a 'Management Accountant' is to be able to apply the concepts, earned through hard work.
• On the TWS one can view the number of participants waiting in the wings to buy or sell (quantity & price) the contracts.
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Latest Vacancies on
CIMA MYJOBS
Current opportunities for CIMA qualified professionals Employer : Hewlett Packard (HP) Position : Industrial Training Program Internal Audit Location : Bangalore Sector : IT Link : http://myjobs.cimaglobal.com/job/ 473284/industrial-trainingprogram-internal-audit
Employer : JCB India Position : Manager – NPIP & Cost Accounting Location : Delhi Sector : Manufacturing Link : http://myjobs.cimaglobal.com/job/ 476133/manager-npip-andcost-accounting
APPLY
APPLY
For more vacancies, log on to http://myjobs.cimaglobal.com
Important Dates 2013 Exams dates - May 2013 Extra - T4 only Exam entry deadline students
12 April 2013
Tuition provider web entry deadline
17 April 2013
Deadline for applying for extra time
17April 2013
Pre-seen material for tutors/ students
Mid January 2013
Exam fee deadline
1 May 2013
Admission advice
w/c 6 May 2013
Exam
23 May 2013
Exam results released
13 June 2013
Time Table for May Professional Exam
Morning Afternoon
Tuesday 21 May
Wednesday 22 May
Thursday 23 May
E1
P1
F1
E3
P3
F3
E2
P2
F2
G1/M1/A1
T4 part B
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CIMA Applause! November 2012 (paper based) CIMA is delighted to announce the names of students who have achieved top ranks in various papers of the November 2012 exams. Congratulations! You make us proud! Name
Paper Name
Marks
Country Rank
Test for Professional Competence T4 Part B Case Study Mr Pavan Udayagiri
T4 Part B Case Study Examination
35
1
Miss Gayatri Iyer
T4 Part B Case Study Examination
33
2
Mrs Aarthy S.
E3 Enterprise Strategy
67
1
Miss Radhika Menon
E3 Enterprise Strategy
67
1
Mr Rangamani Rahuveer
F3 Financial Strategy
76
1
Mr Anish Dangra
F3 Financial Strategy
72
2
Mr Shivraj Subbiah
F3 Financial Strategy
72
2
Mr Anant Bagri
F3 Financial Strategy
72
2
Mr Sohil Poojara
F3 Financial Strategy
72
2
Mrs Prasanna Nageswaran
P3 Performance Strategy
83
1
Mr Akhil Iyer
P3 Performance Strategy
80
2
Miss G Aishwarya
A1 Professional Gateway
81
1
Mr Sree Madavan
A1 Professional Gateway
78
2
Mr Ramanuj C Kankani
G1 Management Accountant Gateway
85
1
Mr Ankur Gupta
G1 Management Accountant Gateway
81
2
Mr Shivaraj Math
M1 Masters Gateway
72
1
Mr Peush Pillai
M1 Masters Gateway
72
1
Mr Sheldon Dsouza
E2 Enterprise Management
71
1
Mr Ravi Venkatraman
E2 Enterprise Management
64
2
Mrs Ann Dattani
F2 Financial Management
76
1
Ms Shriti Sinha
F2 Financial Management
68
2
Mrs Renu Gupta
P2 Performance Management
71
1
Mr Srijith S
P2 Performance Management
66
2
Ms Usha Ganapathy Subramanian
E1 Enterprise Operations
83
1
Ms Shriti Sinha
E1 Enterprise Operations
74
2
Mr Bamby Arackal
F1 Financial Operations
80
1
Miss Sangeetha Krishnamurthy Iyer
F1 Financial Operations
79
2
Mr Rajat Karnani
P1 Performance Operations
77
1
Mr Mithun Banerjee
P1 Performance Operations
76
2
Strategic Level Paper
Gateway Assessment
Management Level Paper
Operational Level Paper
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CIMA Applause! New Members – November- December 2012 CIMA congratulates all new members on earning their ACMA, CGMA designation Name
Designatory Letters
Mr Dinesh Jain
ACMA, CGMA
Mr Kapil Kshirsagar
ACMA, CGMA
Mr Ravi Dhanavada
ACMA, CGMA
Ms Divya Sudhakaran
ACMA, CGMA
Dr Batani Rao
ACMA, CGMA
Prof Asish Bhattacharyya
ACMA, CGMA
Mr Shyam Prasad
ACMA, CGMA
Mr Yogesh Malik
ACMA, CGMA
Mr Akshaya Sahoo
ACMA, CGMA
Mr Paresh Sampat
ACMA, CGMA
Mr Pravin Kumar
ACMA, CGMA
Mr Sridhar Bagalkot
ACMA, CGMA
CIMA in News • Business India featured 'Survival strategies', an article addressing why a substantial percentage of MSMEs (Micro, Small and Medium Enterprises) fail to sustain their business. The story highlighted how the CIMA qualification & management accountants can change the picture for them. Arati Porwal Chief Representative, CIMA was quoted in the article saying “For a small business, expanding into a valuable company and sustaining its success is priority. Essential is strong financial acumen, leadership skills and a 360 degree vision. CIMA's qualification gives a global professional qualification by transcending geographical and functional boundaries. You cannot drive a business ahead by just looking in a rear view mirror. CIMA qualified professionals bring forth the mindset,” Reference: Business India Magazine, Issue dated April 14, 2013.
• The Economic Times featured an article on CIMA president, Gulzari Babber motivating the future business leaders through his invaluable insights. In the article Mr. Babber shared some inspiring personal experiences and a 'stay dedicated and don't let adversities become a barrier in your success' mantra that helps separate leaders from great leaders. Reference: The Economic Times. 'Exemplars of Success' Special edition on January, 2013
• The Free Press Journal, featured the CIMA President, Mr. Gulzari Babber in an article on changes in management accounting in recent times. India Infoline and Kannada Prabha also published thought invoking interview coverage from the CIMA president. News of the CIMA Global Business Challenge in India, before the event, was carried in newspapers such as The Hindustan Times, Afternoon Despatch and Courier and websites such as Shiksha, India education diary and Education in India.
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