Frequently Asked Questions on CMA New Practical Training Scheme 2020

Cost and Management Accountancy Course offered by the Institute of Cost Accountants of India

The main purpose of designing of this course is to nurture young minds into business leaders of tomorrow, wherein cost accountants can play a very important role in decision making.

Students are more inclined in understanding the concepts of costing and management accounting and applying them in the practical work of field, they usually opt for this course instead of Company Secretary or Chartered Accountancy Course. 

The different stages of examination includes the following-

• Foundation Programme
• CMA Intermediate Programme
• CMA Final Programme

FAQs

Q-What is the total duration of the CMA New Practical Training Scheme-2020?

15 months [for every student having registered for the intermediate course on or after 11th February, 2020]

Q-What are the Objectives of the CMA New Practical Training Scheme-2020?

Developing necessary skill-sets among the students enabling them to apply theoretical knowledge of cost and management accounting to practical situations in various professional fields 

▪ Providing practical exposure to the eco-system under which different organizations operate 

▪ Providing on-job experience of practical and contemporary aspects of cost and management accounting arena ▪ Developing and nourishing pool of employable and future-ready professionals

 ▪ Developing disciplined attitude required to grow as a professional 

▪ Creating awareness and consciousness on ethical values in the professional journey

Q-Who are to undergo the CMA New Practical Training Scheme-2020?

Every student having registered for the intermediate course on or after 11th February, 2020 shall be required to undergo practical training for a period of 15 months before the date of declaration of examination result of both or remaining group of final examination to the satisfaction of Council in any one or more of the organization(s) specified in ‘Appendix A’, and in areas as specified in ‘Appendix B’ for the recognition for training [UDIN is mandatory wherever applicable].

However, a student to become eligible to appear in the final examination must satisfy the criteria on such cut-off date as may be specified from time to time. The cut-off date for certification of Form T-5 shall be 31st August for appearing in December examination which shall specify completion of at least 10 months of training as on that date. The cut-off date for certification of Form T-5 shall be 28th/29th February for appearing in June examination which shall specify completion of at least 10 months of training as on that date.

Q-When should I start the CMA New Practical Training Scheme-2020?

You can start the Practical Training immediately on registration the Course at the Intermediate Level.

Q-Which are the Organizations Recognized for the CMA New Practical Training Scheme-2020?

A Cost & Management 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: 

i. Central/State Government / Semi-Government / Public Utilities. 

ii. Banks/Insurance/ other Financial Institution 

iii. Public Sector Undertakings 

iv. Universities, Management Institutes and any other recognized educational institute 

v. Co-operative societies and NGOs 

vi. If the firm of Chartered Accountants/ Company Secretaries has separate Management Consultancy Division and if the applicant has exclusively worked in that division, credence to such service is given on percentage basis depending on the nature of job related with cost/ management accounting/ financial accounting/ taxation/ MIS or of similar nature, size of the firm, nature of duties handled by the applicant, size of the client companies etc.

CA/CS articleship will not be set off/entertained / not be recognized for CMA Practical Training. 

vii. Management Consultant in individual capacity depending on the size of the firm, nature of duties handled by the applicant related with cost and management accounting/ financial accounting/ taxation/ MIS or of similar nature, size of the client companies etc. 

viii. Any other organization(s) with a turnover of `25 Lakhs in case service sector or `50 Lakhs in case of other than service sector. 

ix. Any other organization(s) as approved by the Council.

Q-Which are the Recognized areas for the CMA New Practical Training Scheme2020?

i. Management Accounting

ii. Cost Accounting

iii. Financial Accounting

iv. Financial Management

v. Auditing

vi. Regulatory compliances

vii. Direct Taxation

viii. Indirect taxation

ix. Corporate Laws, Industrial Laws, Commercial Laws

x. Systems Analysis, Information Technology (including ERP system)

xi. Project Management

xii. Banking Operation

xiii. Insurance

xiv. Insolvency & Valuation

xv. Financial Services

xvi. Teaching in Finance, Accounts, Costing, Taxation and Management.

xvii. Management Consultancy Services as defined in appendix 6 under Regulation 111 of CWA Regulation, 1959.

xviii. Engineering Services involved in production of power or any manufacturing activities, Project Planning & Management, Quality Assessment, and Supply Chain Management.

xix. Any other areas approved by the Council.

Q-How can you claim Exemption from the CMA New Practical Training Scheme-2020?

A student of the Institute who is working or has already worked in any of the recognized Organizations as given in ‘Appendix A’ and in any of the recognized areas as given in ‘Appendix B’, can claim exemption from Practical Training by following the procedures given below: ▪ Submission of Online Form T-3 to Directorate of Training and Placement of the Institute along with a Payment for `2000/

The students whose applications are received and found eligible on or before 31st May will be eligible to appear for June Examination and 30th November will be eligible to appear for December Examination respectively.

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 above if the student is otherwise eligible.

Practicing Chartered Accountants/ Company Secretaries are exempted from the Practical Training Scheme and they will have to seek exemption after duly following the procedures on payment of exemption fee as prescribed above.

Q-What is the procedure for the CMA New Practical Training Scheme-2020?

A student desirous of undergoing Practical Training can approach any Organizations as defined in ‘Appendix A’ or Practicing Cost Accountants. 

A student after joining an Organization/ Practicing Cost Accountants has to intimate the Institute within 30 days from the date of joining about the fact of his/her Training by following the below mentioned procedures: 

a. Online Submission of Form No. T-1 (with UDIN) in case of PCMA/firm of Cost Accountants. 

b. The documents that need to be submitted along with Form T-3 are as follows: 

▪ Scan copy of Experience certificate (stating designation, area of work & duration), duly signed by the Competent Authority of the organization in which employed/were employed.

Scan Copy of Audited balance sheet of employers or any other proof of turnover, wherever required (A letter mentioning the turnover of the company on the letterhead of the company, signed with seal) 

▪ Scan Copy of current salary slip duly attested by employer. 

c. Online Submission of T-4 in case of training with recognized Organizations as specified in ‘Appendix A

d. Online Submission of Form T-5 before applying for both or remaining group in Final Examination. 

e. All the forms T-1, T-4, T-5, relating to Practical Training can be downloaded from the link http://eicmai.org/training-forms-new/ 

f. 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 www.icmai.in

Q-How do I submit the Forms related to the Practical Training Scheme 2020?

The entire process for submitting the Forms related to the Practical Training Scheme is online. No Offline Forms/Hard Copies related to the Practical Training is entertained. The required link for the same is as follows: https://eicmai.in/Training-forms-new/login.aspx

Q-What are the documents that need to be submitted along with Form T-3?

The documents that need to be submitted along with Form T-3 are as follows: 

▪ Scan copy of Experience certificate (stating designation, area of work & duration), duly signed by the Competent Authority of the organization in which employed/were employed. 

▪ Scan Copy of Audited balance sheet of employers or any other proof of turnover, wherever required (A letter mentioning the turnover of the company on the letterhead of the company, signed with seal) ✓ Scan Copy of current salary slip duly attested by employer.

Q-Can I do Practical Training in a CA/CS Firm under the CMA New Practical Training Scheme-2020?

CA/CS articleship will not be set off / entertained / not be recognized for CMA Practical Training. If the firm of Chartered Accountants/ Company Secretaries has separate Management Consultancy Division and if the applicant has exclusively worked in that division, credence to such service is given on percentage basis depending on the nature of job related with cost/ management accounting/ financial accounting/ taxation/ MIS or of similar nature, size of the firm, nature of duties handled by the applicant, size of the client companies etc.

Management Consultant in individual capacity depending on the size of the firm, nature of duties handled by the applicant related with cost and management accounting/ financial accounting/ taxation/ MIS or of similar nature, size of the client companies etc.

Q-In case, the Company/ Organisation is not providing the Balance Sheet of the organisation, what can I do?

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) (Any other organization(s) with a turnover of `25 Lakhs in case service sector or `50 Lakhs in case of other than service sector.

Q-How can I apply for a refund of fees in case of excess payment in case of Practical Training?

Kindly place in a request via mail for refund to the Training mail ID Training@icmai.in.

Q-What is the difference between Acknowledged mail and Approved mail in case of the System Generated mail related to Practical Training?

Acknowledged means we are in receipt of the documents related to Practical Training and is the first phase. But, the process is not yet complete. Approved means the second phase and the process related to Practical Training is now complete. You are now eligible to sit for the exams

Q-In which all cases, we will not require the Balance Sheet of an Organisation related to Practical Training?

You do not require/need a Balance Sheet in case of Educational Organisations, MNCs, PSUs, Govt. Organisations, Banking and Insurance Companies.

Q-What will happen in case there is a change of employer during the tenure of Practical Training?

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. New online Form T-1 (with UDIN)/ T-4, experience certificate from principal or employer alongwith a fee of `1000/-. 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 eave availed, if any. Not more than three (3) changes shall be allowed within a period of fifteen months of training.

Q-Which Form needs to be submitted after completion of Training?

On completion of minimum fifteen months of Training, you have to upload Form T5 in the Practical Training Portal.

Q-From where can I get complete Training Scheme to verify the Organizations recognized for Training and for recognized areas for Training and other related matters?

You can see Training Scheme at: http://icmai.in/studentsIbsite/Training_prac_train.php

Q-I have already completed 3 years/15 months of Training but failed to inform the Institute about the same. Can I inform the Institute now?

Yes, You should immediately inform the Institute with application for reason of delay and upload the respective forms

Q-I have registered with the CMA Institute before 1st January 2008. Am I required to undergo Practical Training?

No. Training is not applicable on you and you can appear in the final examination without submitting any form to the institute.

Q-If I am not able to find any employer, can Institute help me to join an Organization who imparts Training under the Training Scheme of the Institute?

If you are not able to find an employer who can impart the Training, you may visit the website of the Institute. The List of Practicing Cost Accountants are given at: http://icmai.in/studentsIbsite/Training_cost_account_firm_register. php and list of Organizations are given at http://icmai.in/studentsIbsite/Training_org_register.php for imparting Training you may search these PCMAs/Organizations “City wise” and approach them with your resume for tying up for Practical Training. Opportunities are also being uploaded in the Training Portal of the Institute as and when it arises

Q-If I want to undergo Practical Training in an Organization as per my choice but its name is not appearing in the empaneled list, can I get Training from that Organization?

Yes, you can.

Q-Can I avail leave in excess of my entitlement? If I avail excess leave, what would be consequences?

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.

Q-I have already completed 15 months of Training and now eligible to appear for final examination. Am I supposed to intimate the Institute every time, before I submit my examination form?

No. Only one time Intimation is required for appearing in the examinations (Form T-5)

Q-Can I apply for exemption through email?

Only Online Submission of Practical Training Forms is applicable. No off line mode or e-mail communication is entertained

Q-In which address, application for exemption need to be sent?

Only Online Submission of Practical Training Forms is applicable. No off line mode or e-mail communication is entertained.

Q-Which items are required in case of submission of Audited Balance Sheet?

The Profit and Loss figures are not required. We need the audited Balance Sheet figures stating the total revenue or total sales or total liabilities.

Q-How much stipend will be paid by an Organization/ PCMA during the Training period?

Every Trainee shall receive the following minimum stipend from the employer:

** Metropolitan and ‘A’ Grade Cities * Other Places This is effective from 1st October, 2018 onwards. 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/employer 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.

Q-What is the rule for Leave to Cost & Management Trainee?

1. A Cost & Management trainee shall be entitled to one day’s leave with pay per month excluding the normal holidays. 
2. The trainee shall be eligible for 60 days leave without pay for appearing in the examination of the Institute in the total span of training period. 
3. The trainees availing leave in excess of the period of leave to which he/she is entitled to shall be required to undergo training for a further period equivalent to the excess leave taken by him.

Q-What is the Working Hours of Cost & Management Trainee?

The working hours of a Cost & Management Trainee shall be 35 hours per week. 

Hours spent on any conference, course, seminar organized by the Institute/Region/Chapter shall be treated as period covered under training.

Q-What is the restriction on Number of Trainees in case of Practical Training under a PCMA?

Q-Is the Old Practical Training Scheme still valid?

Yes. Old Practical Training Scheme is valid for the students who have registered for Intermediate Course before 11th February, 2020.

Q-How long the Old Practical Training Scheme will be continued?

Old Practical Training Scheme for the students who have registered for Intermediate Course before 11th February, 2020 will be continued till further notification is released on the same.

Q-Will Practical Training Period tenure be counted to have minimum experience of 3 years to obtain membership of the Institute?

Yes, Practical Training Period tenure will be counted to have minimum experience of 3 years to obtain membership of the Institute

Q-What is the full form of ‘UDIN’?

The full form of ‘UDIN’ is Unique Document Identification Number.

Q-Where ‘UDIN’ is required?

From 5th July 2019, for all practicing Cost & Management Accountants (CMAs) to generate and obtain UDIN for all Certificates issued, containing financial information or any other contents; which are certified by them to be True and Fair. Unique Document Identification Number (UDIN) is an 18-Digits system generated unique number for to be entered on every document certified/attested by Practicing Cost Accountants/CMAs. The concept of UDIN (Unique Document Identification Number) is implemented to enable user Authorities and Stakeholders to ensure that the certification and/or attestation of the Costing Data / documents / certificates is done by an eligible Practicing Cost Accountant/CMA only. UDIN secures the certificates attested / certified by practicing CMAs (in full time practice only). UDIN Web Portal enables the third parties (Authorities / Regulators / Banks / Others) to check the authenticity of the documents.

Q-What is the usefulness of ‘UDIN’?

Kindly refer to the following links to know more about UDIN:  https://eicmai.in/udin/Home.aspx https://icmai.in/upload/pd/FAQs_UDIN.pdf

Q-For further query on Practical Training, where can I approach?

You may drop in an email at training@icmai.in or call at 033-40364750.