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May 2017

CA Industrial Training – Answer to Your Queries

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An articled clerk who has passed the Intermediate examination may, at his discretion, serve as an industrial trainee for the period specified in sub-regulation (2) in any of the financial, commercial, industrial undertakings.

CA Industrial Training - Answer to Your QueriesWhat is industrial training

In short industrial training is articleship in industry. You can undergo industrial training in the last year of your articleship. The period of such training may range between 9-12 months during the last year of articleship and only students of final chartered accountancy course  are eligible for industrial training.

An articled clerk who has passed the  Intermediate examination may, at his discretion, serve as an industrial trainee for the period specified in sub-regulation (2) in any of the financial, commercial, industrial undertakings.

Industrial training is a scheme by which a student can undergo practical training with an industrial undertaking having specified amount of fixed assets or turnover or paid up share capital. Industrial training can be undertaken in financial, commercial, industraial undertakings with minimum

  • Minimum fixed assets of Rupees One crore ;or
  • Minimum total turnover of Rupees ten crore; or
  • Minimum paid up share capital of Rupees Fifty lakhs; or
  • Such other institutions or organisations as may be approved by the Council from time to time.

What is the difference between articleship and Industrial training?

Articleship is supposed to be a period where you are trained in different areas of work of a Chartered Accountant in order to make you job ready while industrial training basically gives you a corporate exposure to the same.

Articleship if in small or mid-size firm gives you a more or less homely atmosphere, whereas industrial training would give you a practical experience of working with professionals in different fields.

Dow you know what is Secondment of Articleship? – Click here

Will industrial training give me the right exposure – Pro & Cons

There are a lot of benefits of doing Industrial Training in the 3rd year of articleship when a student has already spent 2 years in regular work in a CA firm. One gets to know how a company actually works. This really helps in future as one can apply the same fundamentals to every industry or company. If you do good work in a corporate during Industrial Training, you are likely to get placed in the same company post qualification. You will get better compensation because of your experience in that Company as a trainee and hence you get a better start in your career.

Benefits

  • You’ll get salary. This is much higher than what we are paid in articleship.
  • Better exposure. If you come from a small or mid-size firm, you’ll get to meet many more new people and bigger projects to handle.
  • Professionalism.Oh yes, you won’t be working till whatever time it is on the clock. You’ll be professional even with the working hours and holidays.
  • Saturday and Sunday. An extra day off is more time for studies.
  • Better decisions.You can make a decision on joining a company or starting your own practice a little more easily,because you have your job experiences to guide you.
  • Corporate parties.Oh yes, many of them. To the envy of all others, you’ll have dinner parties and clubbing.

Negatives

  • Only the pre-decided 2 months leave allowed before finals. No home like atmosphere to consider some extra leaves.
  • Corporate politics.One faces this during articleship too but that is generally at a mediocre level.This can be very frustrating at times and hence, have a very negative impact on your mental stability. It can either make you or break you. However, this might make you aware of your own emotional intelligence.

How does industrial training affect the career of a CA?

Industrial training can be very useful if you are particularly going for a job. I would suggest to choose the Industry type carefully before going for Industrial training.

For Example : If you have done industrial training from steel industry then your qualification might not be suitable for Telecom Industry. Telecom Industries will search for people who have better grasp regarding their sector.

So better be wise while choosing industry type. Choose that sector which you love to work in long run too.

Industrial training will help you to get exposure from Organization prospective rather than prospective of auditor or consultant.

Are students who have done industrial training given preference in CA campus placements?

Most of the companies that come on campus offer Audit, tax or accounts & finance related profiles.
In fact, if you’ve done industrial training from a good organization then, you probably won’t even have to apply for campus placements. There’s a high chance you might get retained by your employer or you can simply hunt for a job offline – becomes relatively easier if you’ve done industrial.

Is it possible to pursue CA industrial training outside India?

Yes, Articleship and Industrial Training – both are permitted to be undertaken outside India.

ICAI has also drafted certain rules for doing Articleship outside India. These rules can be accessible from here

How do I calculate leave period to join industrial training for ca student in articleship?

Calculation of leaves are to be done in the following manner considering two years articleship done.

Total Days = 730 days
Less – Leaves taken = 100 days
Balance days = 730 – 100 =630 days

Leave allowed = 1/6th of balance days = 1/6 x 630 = 105 days

Therefore, excess leaves = 0 days.

If the leaves taken is 130 days instead of 100 days in above example.

Balance days = 730 – 130 = 600 days

Leave allowed = 1/6 x 600 = 100 days

Excess leave = 130 – 100 = 30 days.

How do I manage my studies and CA Industrial Training?

I have never done Industrial training but on a special request one of my friend Neha Sharma share her experience of time management during Industrial training.

Here is how I managed my studies with Industrial training:

  1. Get up early. Sleep has to be sacrificed at least on week days. I used to get up at 4 A.m.

2) Stretch a little. Physical fitness shall never be ignored. I learnt the lesson the hard way. I used to exercise at least 30 minutes.

3) After relaxing yourself, start with your studies. I used to start by 5 a.m. I always started with practical subjects. One of my tuition teacher once said that doing sums first activates your brain and makes it easier to capture theory fast. I solved practical for 3 hours. From 8 am I would quickly revise some theory points which I studied earlier. Quickly grab my breakfast and rush to office.

4) My office timings were 9 to 6. But it always extended by 7 p.m. So I reach home by 7.30. After coming home the war starts in your head to choose between bed , Internet or books. I used to be so tired that my first thought would be to sleep. But somehow I motivated myself to study. Once I did manage to start studying I would keep going.

5) I would relax and then start studying by 8.30 p.m till 11.30 pm. I studied theory in evening.

6) Saturday and Sunday were free days. I would often keep these days for revising theory and formulas. Mostly I used to be out with friends.

The above schedule helped me clear my finals in one go. Although I would like to mention that my preparation was quite good even before my industrial training started. I tried to cover topics as soon as they are done in tuitions. Also I did not take tuitions for all subjects which did save my time. Making concise topic wise notes and revising them helps a lot. Over all I would say that do not take much pressure. This phase will teach you time management. You just require extra efforts and you will make it.

What are the companies providing industrial training for ca students?

There are number of companies approved by ICAI providing industrial training for CA students.

Click the below link to get all the details regarding listed industries approved by ICAI.

The Institute of Chartered Accountants of India

How did I apply for industrial training?

Get a list of companies registered with ICAI offering industrial training.

Click the below link to get all the details regarding listed industries approved by ICAI.

The Institute of Chartered Accountants of India

One more website provides regular updates related to vacancies of industrial Training. Although i have no guarantee of the correctness of the content of the website : Find here

Don’t pick and choose your options now

I think the biggest mistake at this point of time when you are looking for industrial training opportunity is to pick and choose a company you like since you don’t know which organization would call you and which would not. Therefore, to improve your chances, I suggest you send your CV to all the firms in the city where you are located or where you want to do industrial training. Send it to as many companies as you can so your chances of getting an interview call are bright and promising.

How do you send your CV

The next question you might face is the way to send your CV. Should you send it via email or via courier? The importance of this question is more relevant now than it was at my time because we didn’t have too much of email system. Majority of the correspondence used to happen via hard copies, i.e. courier.

I was checking the details of some of the companies and realized that the ICAI’s list does not necessarily provide email addresses to which CV can be sent. In such a case, you would only have the option to either visit personally the Company’s office or send your CV by courier.

I suggest that wherever you don’t have the email ID, just send your CVs to the postal address of the Company and address it to the HR manager.

Expect a low turnaround

There is a high likelihood of majority of the companies not responding to your emails/ couriers because either the address would be incorrect or the HR manager would be sitting in some other office or your letter may not even reach the right place. Consequently, the chances of you receiving any call or email are low.

However, don’t panic or get demoralized. As I mentioned earlier, the more companies you send your CVs to, the brighter are the chances to receive interview calls. Ultimately you need only one company to work with and that one company you would surely find.

How do I select the right organization for industrial training?

This question would arise only if by God’s grace you receive calls from more than one organization. And therefore, the chances of you struggling to identify the right organization. Selecting the right organization is very critical as a wrong decision can ruin your last 9-12 months of articleship. I am saying 9-12 months because that’s the period for which you are allowed to undergo industrial training during the last year of articleship.

Try and have clarity on the following aspects by getting answers to these questions, whenever you meet the company’s HR or the technical manager:

  • What kind of work are they offering?

Since you would be moving away from your current employer (i.e. CA Firm) and going to a new company, you should be very clear of the kind of work they offer to industrial trainees. A lot of companies hire industrial trainees for their finance departments only to engage them for bank or other reconciliations. This kind of job might turn out to be really frustrating and you should therefore be careful before picking. Please weigh the pros and cons between your current articleship experience and the one offered by the Company.

  • Be upfront to ask about the work profile

Be very clear asking for your work profile with the interviewer. Asking for the work profile is your right, which should be exercised every time.

  • Is it a Company or a Bank and the division in it

Lot of banks also hire industrial trainees for a lot of their departments like corporate finance, private banking, wealth banking etc. You should therefore, be clear which division would you work for and what kind of work would they offer you.

  • Other miscellaneous things like leave policy, office working hours etc

There is no harm in candidly asking the above questions from the interviewer. Since you would be needing leaves for your study preparation, asking about their leave policy, working hours etc would be helpful in determining your decision to join that organization.

The CA firm might give 2-3 months of study leave whereas the company may offer you less and therefore, you would have to take a call what suits you. There is no set mechanism to take a decision and it would purely depend upon your circumstances in that moment.

What is the procedure to apply for Industrial training during final year of CA Articleship?

*.The Company imparting Industrial Training is to be approved by the Institute and such list is available in the The Institute of Chartered Accountants of India.

*.Students must inform his Principal three months before the date on which training is to commence, his/her intention to undertake Industrial Training.

*.The Form 104 on a non-judicial stamp paper or affix ‘Special Adhesive Stamp’ as per the rates applicable in the respective Cities / States in duplicate and submit the same to the Institute within 30 days from the date of commencement of such training.

*.Articled Assistants should have passed Both Groups of Intermediate Examination .

*.The period of registration as Industrial Trainee should not be less than nine months and more than twelve months including period of excess leave taken and the training can be during the last year of Practical Training.

*.Industrial Training can be received only under a member of the instituted under the Organisation approved by the Institute. The employment details of the members must be updated in ICAI Database.

External Links :

My CA Industrial Training Experience at GE

My CA Industrial Training Experience at TATA

Best of luck!

 

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1 Comment on CA Industrial Training – Answer to Your Queries

  1. Any one want to join in ITC for industrial training leave your CV at pola.mahesh@outlook.com

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