PRACTICAL TRAINING SCHEME
Every student having registered under Revised Syllabus 2008/Syllabus 2012, shall be required to undergo practical training for a period of 3 years on whole time basis to the satisfaction of council in any one or more of the organization specified in clause 3, in areas as specified in clause 4 for the recognition for training. However, student of final course must complete atleast 6 months of training for being eligible to make an application to appear in the final examination. This is applicable for students who would be appearing from December 2013 examination onwards.
1. Objectives of the Practical Training
To develop among the students the necessary skill required to apply theoretical knowledge of cost and management accounting to practical situations in different professional fields.
Exposure to environments under which different organizations work.
Providing on-job experience of practical aspects of cost and management accounting.
Developing disciplined attitude required for a professional.
Creating awareness on ethical values in professional work.
2. Who are to undergo Practical Training
A Student having registered under Revised Syllabus 2008/Syllabus 2012, unless exempted has to undergo Practical Training with any of the organizations as specified in Clause 3, in the areas as specified in Clause 4 to become eligible for appearing in Final Examination of the Institute.
3. Organizations recognized for Practical Training
A Cost Trainee shall undergo practical training under (1) Practicing Cost Accountant or (2) a firm of Cost Accountants or (3) in any of the following organizations.
Central/State Government / Semi-Government / Public Utilities.
Banks/Insurance/ other Financial Institution
Public Sector Unit
Universities, Management Institutes and any other recognized educational institute
Co-operative societies engaged in Banking, Manufacturing.
Any other organization with a turnover of Rs. 50 Lakhs in case service sector or Rs. 1 crore in case of other than service sector.
Any other institution as approved by the Council
4. Recognized areas for Training:
Corporate Laws, Industrial Laws, Commercial Laws
Systems Analysis, Information Technology (including ERP system)
Teaching in Finance, Accounts, Costing, Taxation and Management.
Management Consultancy Services as defined in appendix 6 under Regulation 111 of CWA Regulation, 1959.
Engineering Services involved in production of power or any manufacturing activities, Project Planning & Management, Quality Assessment, and Supply Chain Management.
Any other areas approved by the Council.
5. Period of Practical Training:
A Student of Revised Syllabus 2008/Syllabus 2012, unless exempted from taking practical training, must register for Practical Training with the Practicing Accountants/firm of Cost Accountants or organizations as referred to clause 3 above, for a period of at least one year and must have completed at least 6 (Six) months of Training for becoming eligible to make application for appearing in the Final Examination. This Period of 6 (Six) months as referred to herein, should be completed by 31st March or 30th September for the following June & December term of Examination respectively. In case of change of Principal/Employer, i.e. students serving under different Principal/Employer, the accumulated period of training shall include training periods undergone with different Principal/Employers, including the days of leave availed as per rules but excluding excess leave availed, if any. Not more than two changes shall be allowed within a period of one year. This scheme of completion of at least 6 (Six) months of Training, having registered for training of one year will be effective from December 2013 term of examination onward.
6. Exemption from Practical Training
A student of the Institute who is working or has already worked in any of the recognized areas as given in Clause 4 and in any of the recognized Organizations as given in Clause 3, can claim exemption from Practical Training by following the procedures given below:
Submission of Form T-3 to Directorate of Training and Placement of the Institute along with a DD for Rs. 2000/- drawn in favour of Institute of Cost Accountants of India payable at New Delhi.
The students whose applications are received & found eligible on or before 31st March will be eligible to appear for June Examination & 30th September will be eligible to appear for December Examinations.
A student can seek exemption from Practical Training immediately after joining the Intermediate course, or at any time during the course of studies subject to dates given in 6(iv) if he is otherwise eligible.
Documents to be submitted along with Form T-3
Experience certificate (stating designation, area of work & duration), duly signed by the Competent Authority of the organization in which employed/were employed.
Audited balance sheet of employers or any other proof of turnover (A letter mentioning the turnover of the company on the letterhead of the company, signed with seal)
Copy of current salary slip duly attested by employer.
7. Procedure for Intimation of Practical Training
A student desirous of undergoing Practical Training can approach any Organizations as defined in Clause 3 or Practicing Cost Accountants.
A student after joining an Organization/Practicing Cost Accountants has to intimate the Institute about the fact of his/her Training by following the given below procedures:
a. Submission of Form No. T-1 in case of PCA/firm of Cost Accountants.
b. Submission of T-4 in case of Organizations.
c. The qualifying dates for the purpose of determining the eligibility for Final Examination would be:
31st March- for June Term Examination
30th September- for December term Examination
(The intimation of Practical Training in the Form T-1/ T-4 should reach the Institute before the above dates)
d. A student shall inform any change in the Principal or employer to the Institute within 30 Days of such changes with all the relevant documents i.e. experience certificate from past principal or employer along with a fee of Rs. 1000/- in form of DD drawn in favour of Institute of Cost Accountants of India payable at New Delhi.
After completion of one year training, with PCA/firm of Cost Accountants/Organization a student shall submit Form T-5 to The Director (T&P), Institute of Cost Accountants of India, 4th floor, CMA Bhawan, 3, Institutional Area, Lodhi Road, New Delhi -110003.
All the forms T-1, T-3, T-4 and T-5 relating to Practical Training can be downloaded from the Institute’s Website www.icmai.in
In order to help the students, Institute will also maintain database of organizations and firms interested to impart practical training to the students, in its website.
8. Minimum Stipend to Cost and Management Trainees
Every Trainee shall receive the following minimum monthly stipend from the employer:
Employer 1st year 2nd year 3rd year
Practicing Cost Accountant/ a firm of Cost Accountants Rs. 2000 Rs. 3000 Rs. 4000
Organization Rs. 4000 Rs. 5000 Rs. 6000
The stipend indicated above is minimum prescribed by the Institute. However, Practicing Cost Accountant/a firm of Cost Accountants/ Organizations may fix higher stipend. The stipend under this regulation shall be paid by the principal to the trainee either by (a) a crossed a/c. payee cheque every month or (b) by depositing the amount every month in an account opened by the trainee in his own name with a branch of the bank to be specified by the principal.
9. Leave to Cost and Management Trainees:
i. A Cost trainee shall be entitled to one day’s leave with pay per month excluding the normal holidays.
ii. The trainee shall be eligible for one month leave without pay for appearing in the examination of the Institute.
iii. The trainees availing leave in excess of the period of leave to which he is entitled to shall be required to undergo training for a further period equivalent to the excess leave taken by him.
10. Working Hours of Cost Trainee:
i. The minimum working hours of a Cost Trainee shall be 35 hours per week.
ii. Hours spent on any conference, course, seminar organized by the Institute/Region/Chapter shall be treated as period covered under training.
11. Restriction on Number of Trainees
The Firms and the organizations intending to engage Trainees shall have the following restriction on the number of trainees.
Practicing Cost Accountant No. of Trainees
a) Practicing Cost Accountant
(Associate Member) 10
b) Practicing Cost Accountant
(Fellow Member) 15
c) Firms of Cost Accountants Depending upon status of the partner as given in (a) and (b) above. For the purpose of calculation of number of Trainees, the total number of trainees under a Cost Accountant as Individual member and a partner in firm(s) shall not exceed the limit prescribed in (a) or (b) above, as the case may be.
Organizations No Limits
“Restriction on the number of Changes of Principle- a student registered under the course, shall be eligible to having an option to change Principal for a maximum of 2 times during the Training Period”
Every change must be executed under intimation in prescribed form and payment of fee of Rs. 1000/- (Rs. One Thousand only) to the Directorate of Training and Placement. The fee shall have to be paid in Demand Draft.[please refer website www.icmai.in
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Form T1 Intimation for Engagement of CMA Students as Trainees (for PCA / Firm of PCA)
Form T3 Application for Exemption from Practical Training
Form T4 Intimation for Engagement of CMA Students as Trainees (for Company / Organisation)
Form T5 Certificate of Training Imparted by PCA or Firm of PCA or Organisation
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