Optional subject in CS Professional Programme

First, I congratulate you in clearing executive level and quickly get registered to professional programme without waiting for cutoff dates.

With effect from 1st September, 2018 Institute of Company Secretaries of India (ICSI) has launched New Syllabus of Professional Programme covering nine subjects / papers under three modules.

Students getting registered to Professional Programme during the period from 1st September, 2018 to 30th November, 2018, will be eligible for appearing in One Module (out of Three Modules) during June, 2019 Session. Similar system will be continued in subsequent sessions of examinations.

Complete Syllabus – Module and Paper Wise

When comes to module 3, you may be confused with the optional subjects regarding which paper will benefit you, which will be the scoring paper for you, etc..

ICSI, has increased the elective papers from 5 to 8 in 2018 syllabus.

Elective subjects in module 3 are as follows:

1. Banking – Law and Practice
2. Insurance– Law and Practice
3. Intellectual Property Rights– Laws and Practices
4. Forensic Audit
5. Direct Tax Law and Practice
6. Labour Laws
7. Valuations & Business Modelling
8. Insolvency

Out of these Forensic Audit, Labour Laws, Valuations & Business Modelling, Insolvency are new faces among the elective papers.

Let analyse each paper respectively.

Elective Paper –

1.Banking – Law and Practice

Syllabus

Overview of Indian Banking System – Regulatory Framework of Banks – Control over Organization of Banks – Regulation of Banking Business – Banking operations – IT in Banking – Payment and Collection of Cheques and Other Negotiable Instruments – Case Laws on Responsibility of Paying Bank – Case Laws on Responsibility of Collecting Bank – Various Government Schemes – Consumer Protection – Loans and Advances – Securities for Banker’s Loans – Documentation – Calculation of Interest and Annuities – Calculation of YTM – Foreign Exchange Arithmetic – Non Performing Assets – Final Accounts of Banking Companies – Risk Management in Banks and Basel Accords

Analysis

• Syllabus is almost similar to the paper under old syllabus.
• Banking is considered as a scoring paper
• As it was included in the old syllabus, resource materials are easily available in the market
• There is a chance of case laws
• There may be practical problems on preparation of final accounts of banking companies
• ICSI avoided financial analysis in new syllabus (ratio analysis, working capital, cash flow, fund flow etc.). So there may not be any problem on that topic.

Reference Books for Banking Law and Practice

1. Study Material
2. Scanner
3. Khan and Jain for Financial Statement analysis and working capital – Buy Online
4. Guide To JAIIB Legal Aspects Principles Of Banking & Accounting (set of 3 books) – Buy Online
5. Principles and Practices of Banking – Buy Online 

2. Insurance– Law and Practice

Syllabus

Concept of Insurance – Regulatory Framework of Insurance Business in India – Life Insurance – Practices – Life Insurance – Underwriting – Applications of Life Insurance – Life Insurance – Finance – Health Insurance – General Insurance – Practices and Procedures – Fire & Consequential Loss Insurance – Marine Insurance – Agricultural Insurance – Motor Insurance – Liability Insurance – Aviation Insurance – Risk Management – Corporate Governance for Insurance Companies

Analysis

• One of the least opted subject under old syllabus (even though it was a preferred subject of rank holders)
• Concepts and law will be comparatively new to the students
• Under new syllabus, focus is more on type of insurances
• One interested in insurance sector can opt this paper

Reference Books for Insurance – Law and Practice

1. Study Material
2. Scanner

3. Intellectual Property Rights– Laws and Practices

Syllabus

Introduction – Types of Intellectual Property- Origin and Development- An Overview – Role of International Institutions – Patents – Indian Patent Law – Patent Databases & Patent Information System – Preparation of Patent Documents – Process for Examination of Patent Application – Patent Infringement – Recent Developments in Patent System – Trademarks – Copyrights – Industrial Designs – Geographical Indications – Layout – Designs of Integrated Circuits – The Protection of Plant Varieties and Farmers’ Rights – Protection of Trade Secrets – Key Business Concerns in Commercializing Intellectual Property Rights – Case Laws, Case Studies and Practical Aspects

Analysis

• One among the most opted subject under old syllabus
• Syllabus almost similar to the paper of old syllabus
• Bare acts and reference materials are available
• High chance on case laws
• IPR will provide good career opportunity and will be a value addition, especially for those who plan to do practice

Reference Books for Intellectual Property Rights – Law and Practice

1. Study Material
2. V.K.Ahuja – Buy Online

4. Forensic Audit

Syllabus

Introduction – Fraud and Audit – Audit and Investigations – Forensic Audit: Laws and Regulations – Forensic Audit and Indian Evidence Law – Cyber Forensics – Case Laws, Case Studies and Practical Aspects

Analysis

• New Paper in the Syllabus
• More focus on law and case studies

5. Direct Tax Law and Practice

Syllabus

An Overview of Income Tax Act, 1961 – Computation of Income under the head of Salary – Computation of Income under the head of House Property – Computation of Income – Profits and Gains from Business and Profession – Computation of Income under the head of Capital Gains – Computation of Income from Other Sources – Exemptions/Deduction, Clubbing provisions, Set Off and/or Carry Forward of Losses, Rebate and Relief – Computation of Total Income and Tax Liability – TDS/TCS, Returns, Refund & Recovery – Tax Planning & Tax Management – International Taxation – An Overview – Recent Case Laws

Analysis

• Syllabus is almost same as covered in tax laws and practice of executive level (direct tax portion)
• Plenty of reference material are available
• Preferable to students who scored good marks in tax laws of executive level and for those who has interest in tax laws
• Income Tax Law is beneficial in your career as everyone is required to comply income tax laws

Reference Books for Direct Tax Laws and Practice

1. Income tax law and accounts by Dr.H.C.Mehrotra – Buy Online
2. Study Material

6. Labour Laws

Syllabus

Constitution and Labour Laws – International Labour Organization – Law of Welfare & Working Condition – Law of Industrial Relations – Law of Wages – Social Security Legislations – The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988 – Labour Codes – Industrial and Labour Laws Audit covering the above Acts and other Industry Specific Acts.

Analysis

• New Paper in the Syllabus
• An advanced paper to the labour law portion covered in executive level
• Bare acts are available

7. Valuations & Business Modelling

Syllabus

Overview of Business Valuation – Purpose of Valuation – International Valuation Standards Overview – Valuation guidance resources in India – Business Valuation Methods – Steps to establish the Business Worth – Valuation of Tangibles – Valuation of Intangibles – Accounting for share based payment – Valuation during Mergers & Acquisitions – Valuation of various magnitudes of Business Organizations – Valuation of Business during Distressed Sale

Part- II: Business Modelling (30 Marks)
Introduction to Business Modelling – Business Model Analysis: Facets of Analysis

Analysis

• New paper in the syllabus
• Problem Paper
• Beneficial for those who are planning to become registered valuer
• Reference materials of other institute may be used

8. Insolvency

Syllabus

Insolvency – Concepts and Evolution – Introduction to Insolvency and Bankruptcy Code – Corporate Insolvency Resolution Process – Insolvency Resolution of Corporate Persons – Resolution Strategies – Fast Track Corporation Insolvency Resolution Process – Liquidation of Corporate Person – Voluntary Liquidation of Companies – Adjudication and Appeals for Corporate Persons – Debt Recovery and Securitization – Winding-Up by Tribunal – Cross Border Insolvency – Insolvency Resolution of Individual and Partnership Firms – Bankruptcy Order for Individuals and Partnership firms – Bankruptcy for Individuals and Partnership Firms – Fresh Start Process – Professional and Ethical Practices for Insolvency Practitioners

Analysis

• New paper in the syllabus
• Specialised paper on insolvency in addition to the insolvency portion of Corporate Restructuring, Insolvency, Liquidation and Winding up of module 2.
• Beneficial for those who aims to become an Insolvency Professional

Reference Books for Insolvency

1. Insolvency and Bankruptcy Code (Bare Act) – Buy Online from Taxmann
2. Study Material

Is elective subject relevant for better placement?

This is a most common question received since the launch of optional subject in old syllabus.

Elective paper do not play much role in getting better placements. Only thing matter in interview is your membership of the ICSI and your performance.

Go through the syllabus. Choose the one which will be a scoring paper for you and which will enhance your knowledge.