BANKING SECTOR OPPORTUNITIES FOR CMAS PRESENTATION BY CMA

BANKING SECTOR- OPPORTUNITIES FOR CMAS PRESENTATION BY CMA R P GORE FOR ICMAI-AURANGABAD CHAPTER ON 10 TH MAR. , 18

Banking sector opportunities Banking sector CMA IN SERVICE IN PROFESSIO N Indian Banking sector growing & lot of opportunities for CMAs – in service and in profession Although CMAs in profession have got lessor number they are seen as image of profession. More emphasis is given on professional opportunities

BANKING SECTOR OPPORTUNITIES - FOR CMA IN EMPLOYMENT In banks, there are positions / opening in officer grade for which CMAs are well qualified However we find that Chartered Accountants still have preference & in recent advertisements of SBI & Maharashtra State Co-operative Bank, CMAs were ignored It is our say that if the CMAs do project appraisals there would be certainly reduction in NPAs as they are better equipped to do analysis / viability of the project

Types of Banks Public Sector Bank Private Sector Bank Rural Bank Foreign Banks Urban C 0 Operative Bank Co-operative Banks Payment Bank like paytm Special purpose banks like NABARD, SIDBI

CMA PROFESSIONALS -WHAT WE CAN OFFER TO BANKS Financial Audit (Co-Op. Banks only in Mah & Karnataka) Concurrent Audit J & K bank & some other rural banks Internal Audit (Risk Based Internal Audit) Revenue Audit Revenue leakage Audit Stock Audit. (CBI, BOM, Cosmos, . . IOB) Forensic Audit , System Security Audit (DISA) Project Finance, IFRS Implementation & Certification (IDBI Case) etc

Points in support Our institute formed by Act of parliament , Code of conduct for members Ministry of Finance circular to include CMA in Internal audit, information system (security) audit & Concurrent audit C & AG Letter IBA Letter List of Audits allowed to us The Companies Act 2013 & other contentions

Points in support - Continued The Judgement of Honourable Karnataka High Court ‘…. . Audit is not the domain of Chartered Accountants’ The Judgement of the Honourable Supreme Court in IAAL Vs Shetty case ‘The State can not discriminate …. . ’

Annexure a concurrent audit– RBI Notification We refer for Concurrent Audit the RBI Notification RBI/ 201516/133 DBS CO ARS NO BC 2/08. 91. 021/2015 -16 dated July 16, 2015 for selecting / appointment of outside professional Auditor There is no insistence for selection / appointment of ‘Chartered Accountant’ as outside professional auditor. (the word’ Chartered Accountant’ is used only once in the total notification that also with respect to remuneration. )

Annexure A Concurrent audit. RTI reply There is also RBI’s reply to RTI application of CMA Navneet Jain which clarifies the matter We quote ‘As per the RBI instruction to Scheduled Commercial bank on concurrent audit the option to consider whether the audit should be done by bank’s own staff or external auditors (including Cost Accountants) is left to the discretion of individual banks’ unquote

Annexure A–Concurrent audit MINISTRY OF FINANCE guide lines The Ministry of Finance, Department of Financial Services (henceforth called as DFS) in the guidelines on ‘Internal audit, Information audit & Concurrent audit’ through its master circular dated 28 th June, 2012 says that for appointment of outside professional auditor for concurrent Audit only ‘Firm of Chartered Accountant’ should be considered

Annexure A –Concurrent Audit the REAL PROBLEM As per DFS guidelines, for selection of auditor, the RBI Panel is to be used. There is no separate RBI Panel for Concurrent Audit & hence Statutory Auditor’s panel is used. As this panel is formed by Institute of Chartered Accountants, Cost Accountants do not have chance to get empaneled. This may not do justice to our capabilities.

ADVANTAGES Round the year work All over India work Entry for New / young CMA Exposure to various Industries Establishing our Identity in Banks & Developing relations

How to prepare / make us ready –Basic steps Form Partnerships Get Experience, knowledge of the industry/ unit Face the examinations & get qualified Start from ‘ 0’ Try to get empaneled know criterias / selection process

How to prepare / make us ready Study – books published by the Institute Study – Get Experience where ever possible Understand – Risk Understand- Various Allied Laws Understand- Reporting Format Plan the Audit , Inform & Act Care to keep Proper records

Faq only by CMA For last 10 years I am in search of partner, but could not find a proper person………………… In the experience column, I do not have Audit experience Can I give certificate…………………. The quote / what amount to quote……………. .

Faq only by CMA continued - Whether I woul d be able to complete the assignment… I do not have sufficient staff…. I do not want to keep any file in records……. Fees are small. Whether to do assignment……

Thanks a lot AFTER PNB SCAM , WE CAN SURELY SAY, WE , THE CMAs IN ALL POSIBILITIES, CAN NOT DO AUDIT AS WORSE AS THAT!!!!!!