Wish you every one A HAPPY AND PROSPEROUS DIWALI. We and the profession have been demanding many things over the last decade particularly in the recent session we have demanding GST and Companies law etc. I am not here to give sermons neither I am training any cost accountants. I am provoking the thoughts within our fraternity and the line of the action we should adopt quickly to enhance our Abilities.  I know many of my friends might not like the article but truth is just like SUN. The biggest question that have been chasing simultaneously and invisibly is that how much the professional’s who are in the corporate sector are capable to move ahead with the new things which will come up in the economy. We are simply getting happy with couple of stock audit opportunities where as the profession has a bigger role to play within Indian economy.  In the similar ways today after the new central government have come up a host of new policy initiatives and the biggest question at the moment is that is the working professionals of Cost Accountants are prepared and did the Institute its veteran have taken adequate steps to train and bridge the gap of working in a competitive fashion in the new areas of changes.   Never otherwise the professional who have passed should not have been getting so low packages and we should not have been getting low recognition. The biggest growth opportunity which is going to come over the next few years will be the recent FDI gates which have been opened up for inflow of capital and technology to build Indian economy for the 10% GDP growth.  According to the recent policy initiatives taken by the Indian Government where Foreign Investment Promotion Board (FIPB) to clear proposals up to Rs 5,000 crore from Rs 3,000 crore earlier. This will open up the gates of inflow of capital within the economy. Hence efficient utilization of resources and strategic cost management and enterprise value creation would be the key factors behind the growth and establishment opportunities. Cost Accountants need to be well prepared for such things where they can compete with other professionals and not profession.

Real estate sector which is one of the biggest sectors of Indian construction industry accounting for 80% has got lot of relief for stupendous growth in the coming days. For instance, area restriction (20,000 sq m) and minimum capitalization requirement of $5 million to be brought in within six months of commencement of business have been removed. Further, foreign investors can exit and repatriate investments before a project is completed, but with a lock-in of three years. My point is that how many cost accountants are well trained to join the industry for efficient valuation management which will be the key factor behind the success of the industry.
Media and entertainment industry have been growing like anything over the last 5 years or 1o years. The foreign direct investment (FDI) inflows in the information and broadcasting (I&B) sector (including print media) in the period April 2000 – June 2015 stood at US$ 4,050.58 million, as per data released by Department of Industrial Policy and Promotion (DIPP).   Now FDI limits have been hiked in teleports (uplinking hubs), DTH (direct-to-home) and cable networks to 100 per cent with government approval required beyond 49 per cent. Further, news and current affairs TV channels and FM radio companies can now bring in up to 49 per cent FDI under the government route compared with 26 per cent earlier. For non-news and down-linking of TV channels, 100 per cent FDI has been permitted under the automatic route. Hence cost accountants and cost management demand will be high but the question is that how much the institute and its senior segment is ready to train and groom the working segments of the profession.

Banking industry is going to get huge inflow of capital particularly the private banks and hence asset quality management is going to be key factor where cost accountants would find demand. The government has allow full fungibility in foreign direct investment (FDI) and foreign institutional investment (FII) in Indian private banks will give these lenders good flexibility to raise capita Please don’t be happy with getting couple of stock audits of banking industry.From M&A ,target costing, efficient risk management  system, corporate value creation to quality production process all are the areas of cost accountants and we are just sleeping over them. We need to move and act fast to get the same applied within these opportunities to flourish the profession.

In the retail space the government has relaxed the business opportunities and inflow of capital into the system. The Indian retail industry in the single-brand segment has received Foreign Direct Investment (FDI) equity inflows totaling US$ 275.4 million during April 2000–May 2015, according to the Department of Industrial Policies and Promotion (DIPP).How many cost accountants are prepared to tap into the industry and create growth opportunities for the industry?  The industry will require better simulation better management strategies to optimize profitability so that foreign inflow of capital can come within the industry.  The point is very clear that before we keep on asking only one area of operation we should focus on the other areas which are being given as an opportunity. But why we are quite ignorant about the same. The reason behind that we cost accountants never bothered about the ample opportunities given at large. We want always special powers where as working professional development is a complete different aspect altogether.

What I am tarrying to say is that what the economy is giving as opportunity, how much we cost accountants and its veterans are prepared for the same and rather running at the back of GST and all those things how much value working professionals could add to the economy would indirectly lead to the growth of the profession.  Focus where the profession grows, don’t forget that even if GST and other bills we get position we will never get exclusivity since the economy is larger and practicing members are less. Hence work for the working professionals and develop their opportunities.Did you ever think that once make in India become active India will require huge amount of expertise in cost management and process for improving the profitability though efficient cost accounting techniques.
But we are having very low numbers of passing students compared to other professions.  Job market is internationally down but what we have has long term VISION to cater the Indian economic growth is more important. The time and long term demand is that we need more final qualified cost accountants.