NEWSLETTER - Baroda Branch of WIRC of ICAI

The Institute of Chartered Accountants of India 

(Setup by an Act of Parliament) 

N E W S L E T T E R 

INDEX 

VOL. X l NOVEMBER 2010 

Baroda Branch of 

Western India Regional Council of 

The Institute of Chartered Accountants of India

MANAGING COMMITTEE 

CA. Rahul Parikh 

Chairman 93272 43479 

CA. M J Parsiya 

Vice Chairman 98251 10620 

CA. Pradeep Agrawal 

Secretary 98985 60967 

CA. Ashish Parikh 

Treasurer 98252 31545 

CA. Rajesh Shah 

Ex-officio 98250 41142 

CA. Abhishek Nagori 

Immediate Past Chairman 94260 75397 

CA. Nayan Kothari 

Member 98244 33445 

CA. Yash Bhatt 

Member 99243 88339 

CA. Viral Shah 

Member 98243 62211 

EDITORIAL BOARD 


CA. Viral Shah 

CA. Gaurang Parikh 

CA. Vishal Doshi 

CA. Narendra Hindocha 

CA. Bimal Bhatt 

CA. Ashok Thakkar 

CA. Neena Patel 

CA. Rachana Parikh 

THE INSTITUTE OF 

CHARTEREDACCOUNTANTS OF INDIA 

ICAI Bhawan, Post Box No. 7100, 

Indraprastha Marg, New Delhi - 110002. 

Tel. : +91 (11) 39893989 

E-mail : president@icai.org Web : www.icai.org 

WESTERN INDIA REGIONAL COUNCIL 

ICAI Bhawan, 27, Cuffe Parade, Post Box No. 

6081, Colaba, Mumbai - 400 005. 

Tel. : +91 (22) 39893989 

Email : wirc@icai.org Web : www.wirc-icai.org 

BARODA BRANCH OF WIRC OF ICAI 

“ICAI Bhawan”, Kalali-Tandalja Road, 

Atladra, Vadodara - 390 012. 

Telefax : +91 (265) 2681115 / 2680593 

E-mail: baroda@icai.org 

Web : www.baroda-icai.org 

DECENTRALISED OFFICE - VADODARA 

“ICAI Bhawan”, Kalali-Tandalja Road, 

Atladra, Vadodara - 390 012. 

Tel. : +91 (265) 2681115 / 2680593 

E-mail: baroda@icai.org 

Web : www.baroda-icai.org 

DISCLAIMER 

The ICAI and the Baroda Branch of WIRC of 

ICAI is not in any way responsible for the result 

of any action taken on the basis of the 

advertisement published in the Newsletter. 

The members, however, may bear in mind the 

provisions of the Code of Ethics while 

responding to the advertisements. 

The views and opinion expressed or implied in 

the Newsletter are those of the authors / 

contributors and do not necessarily reflect 

those of ICAI. Unsolicited articles and 

transparencies are sent at the owner's risk and 

the publisher accepts no liability for loss or 

damage. Material in this publication may not 

be reproduced, whether in part or in whole, 

without the consent of ICAI. 

Members are requested to kindly send article / 

p a p e r o f p r o f e s s i o n a l i n t e r e s t t o 

vkshah3@gmail.com. The same may be 

published in the newsletter subject to 

availability of space & editorial editing. 

Dear Members, 

A very Happy Diwali and a Happy and Prosperous 

New Year to all. By the time, you receive this 

newsletter, most of us would be preparing and 

perhaps would have already started enjoying the 

Diwali Vacation. 

Diwali is the festival of lights. It is the time to spread joy all around. It 

may also be a good time to take a pause from our hectic lives and 

reflect on our good fortunes. This will also enable us to introspect on 

the efforts undertaken by us to share our good fortunes with those 

who are not so lucky. It is precisely with this intention in mind and 

with the active encouragement of many of our seniors in the 

Profession that we had launched the Financial Assistance Scheme for 

CA Students. The scheme was a chance for all of us to share our good 

fortune with needy students and give them a reasonable chance at 

achieving a life, which we already enjoy and take for granted. I am glad 

to inform our Members that our efforts have borne fruit and in the 

past two months, we have had a steady flow of commitments for 

financial support to students. The details of the same are mentioned 

elsewhere in the newsletter. Our scheme has been appreciated as an 

innovative tool of helping students at ICAI level. Similarly, the 

Chartered Accountants’ Benevolent Fund is also a very important tool 

of helping our Colleagues and their family members in need during 

their unfortunate times. Our Hon. President, CA. Amarjit Chopra has 

made it one of his prime mission to strengthen this noble initiative of 

the Institute. As members, it is our duty to support this mission. 

Members of Baroda Branch have already responded positively to our 

President’s appeal. However, more is required. I hence request to 

come forward and wholeheartedly support both the above initiatives 

and imbibe the true spirit of Diwali in our lives. 

2010 is the last of 3 year rolling period of the CPE Calendar for all 

members. Members are requested to kindly check their CPE Hours and 

ensure that they fulfill the CPE requirements laid down by the 

Institute. CPE requirements for various categories of members are 

given elsewhere in the Newsletter by CA. Rajesh Shah, our Regional 

Council Member. 

The 2nd Batch of IFRS and the National Workshop on Internal Audit 

have been great success with excellent participation from Members. 

The structure of both these programs has been appreciated at all 

levels of ICAI. 

We have an exciting line up of programs to enjoy not only Diwali but 

also fulfill the CPE requirements. The Diwali Milan function promises 

to be a laughter riot with celebrated artist Shri Vasant Paresh. We also 

have a family workshop on Total Health, where members are invited 

with their family. We shall also be having Full Day Seminars on a 

variety of novel topics with various Committees of ICAI including the 

Direct Taxes Committee, the Committee on Economic & Commercial 

Laws & WTO, the Indirect Taxes Committee & the Committee for 

Capacity Building for CA Firms of ICAI. I am sure in addition to 

fulfilling their CPE requirements, Members will find real value 

addition in each of these programs. 

I again wish members a very happy Diwali and a joyous New Year. 

With warm regards, 


CHAIRMAN'S MESSAGE 

Baroda Branch of WIRC of The Institute of Chartered Accountants of India NOVEMBER 2010 02

FORTHCOMING EVENTS 

Diwali Milan 

Diwali is the festival of joy and light. It is the time of 

sharing happiness with family and friends. The 

Baroda Branch of WIRC of ICAI is pleased to 

announce its annual Diwali Milan Celebrations, 

which promises this time to be a laughter riot. Come 

and enjoy with family and friends, a “Hasya Darbar” 

with the celebrated hasya kalakar from Jamnagar, 

Shri Vasant Paresh. 

Day & Date : Saturday, 13.11.2010 

Time : 7.00 p.m. onwards 

Program : Live entertainment followed by dinner 

Venue : ICAI Bhawan, Baroda 

Fees : ` 200 per person 

Full Day Workshop on Tally 

as an Audit Tool 

Day & Date : 

Saturday, 20.11.2010 

Time : 09:30 a.m. to 05.30 p.m. 

Faculty : CA. Rashmi Thakkar, Baroda 

CPE 06 

hrs 

Venue : Auditorium, ICAI Bhawan, Baroda 

Fees : ` 100 up to 17.11. 2010 and ` 150 

thereafter (Including Lunch) 

Topics to be covered: 

• Data Analysis & Auditing using Auditor Version of 

Tally.ERP9 

• Audit Journal for finalization of entries using 

Auditor Version of Tally.ERP9 

• Schedule VI balance sheet with re-grouping using 

Auditor Version of Tally.ERP9 

• Tax Audit under section 44AB, with Form 3CD & 

annexures using Auditor Version of Tally.ERP9 

• Audit through remote access using Auditor 

Version of Tally.ERP9 

Family Workshop on Total Health 

The Baroda Branch of WIRC of ICAI is pleased to 

announce a workshop for its members and their 

family on Total Health through Scientific Yoga 

practices. The Workshop aims at providing 

participants with understanding and tools for 

their physical, mental, emotional and physic 

well being. Yoga involves much more than 

physical asanas or physical exercise. The 

Workshop will teach the participants techniques 

of undertaking short duration yogic practice, 

which are to be undertaken daily to achieve total 

health. The details of the Workshop are as under: 

Day & Date : Sunday, 21.11.2010 

Time : 10:00 a.m. to 12:00 a.m. 

Faculty : Dr. Dara Bhesania, Baroda. 

Venue : ICAI Bhawan, Baroda. 

Fees : Nil 

Full Day Workshop on Assessments & Appellate Proceedings 

Day & Date : 

Key Note Address 

ST 

1 TECHNICAL SESSION 

: Shri (CA) G. D. Agrawal, Vice President, ITAT, Ahmedabad. 

(Confirmation Awaited) 

Assessments, Reassessments, : 

Revisions & Rectifications 

Submissions & Representations : CA. Jayant Gokhale, 

before CIT(A) Chairman, Direct Taxes Committee, ICAI. 

ND 


Saturday, 27.11.2010 

Time : 09.00 a.m. to 05.30 p.m. (Breakfast at 08:30 a.m.) 


Fees : ` 550 up to 24th November, 2010 and ` 650 thereafter 

CA. Amar Shah, Baroda 

Procedure & Preparation for Appeals 

before ITAT, Representation before ITAT 

: Shri Rajul K. Patel, Advocate, Ahmedabad 

Mock Tribunal : Scripted by CA. Milin Mehta 

Come join us for an evening of fun and frolic 

as it is said that “Laughter is the Best Medicine” 

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In view of limited seating available at the Auditorium, Members are requested to register in advance. 

Organised by: The Direct Taxes Committee of ICAI Hosted by: Baroda Branch of WIRC of ICAI 

Baroda Branch of WIRC of The Institute of Chartered Accountants of India NOVEMBER 2010 03 

CPE 06 

hrs

Full Day Seminar on FEMA 

Organised by: The Committee on Economic 

& Commercial Law & WTO 

Hosted by: Baroda Branch of WIRC of ICAI 

CPE 06 

hrs 


Time : 09:00 a.m. to 05.30 p.m. 


Fees : ` 550 up to 8th December, 2010 

and ` 650 thereafter 

Program Structure : 

ST 


�Overview of FEMA-Introduction & Framework 

�Definitions 

& Concepts under FEMA 

�Remittance 

Facilities for Residents & Non- 

Residents 

ND 


�Inbound 

Investments including Sector Specific FDI 

and procedural aspects thereon. 

�Outbound 

Investments – An overview 

�Borrowings 

under FEMA 

WICASA EVENTS 

Diwali Milan to be followed by Dinner 


Time : 07:00 p.m. onwards 

Topic : Hasya Darbar 

Artist : Shri Vasant Paresh, Jamnagar 


Fees : . 200/- per person 

` 

Industrial Visit 


Time : 08:00 a.m. onwards 

Venue : Akshay Patra Kitchen, Dharampura, 

Baroda 

Lecture Meeting 

Day & Date : Tuesday, 30.11.2010 

Time : 06:00 p.m. to 07:30 p.m. 

Topic : To be decided 

Speaker : To be decided 

Venue : Conference Room, ICAI Bhawan, Baroda 

Joint Program with M. S. University on “Emerging Trends in Accounting, Taxation & Finance” 


Time : 06:00 p.m. to 07:30 p.m. 

Venue : C. C. Mehta Auditorium, M. S. University, Baroda 

Fees : ` 50/- 

STUDY CIRCLE EVENTS 

Inaugural Session : 09:00 

a.m. to 10:00 a.m. 

Chief Guest : Shri Ramesh Goyal, Vice-Chancellor, M. S. University 

Key-note Speaker : Eminent Personality from ICAI 

1st Technical Session : 10:00 a.m. to 12:30 p.m. 

IFRS on Plant Property and Equipment : CA. Vishal Doshi, Past Chairman, Baroda Branch 

Service Tax : Mr. Yogen Mahadevia, Baroda 

Lunch Break : 12:30 p.m. to 01:30 p.m. 


Day & Date : Tuesday, 23.11.2010 CPE 

Time : 06:00 p.m. to 08:00 p.m. 

Topic : I n t r o d u c t i o n t o P r i v a t e E q u i t y 

Investment 

Speaker : CA Shrirang Tambe, Baroda 

Venue : Conference Room, ICAI Bhawan, Baroda 

Fees : ` 100/- for Non-members 

2 

hrs 


Day & Date : Tuesday, 30.11.2010 CPE 

Time : 06:00 p.m. to 08:00 p.m. 

Topic : Economic Value Added (EVA)- A Tool for 

Value Creation 

Speaker : CA Bhupesh Porwal, Baroda 

Venue : Conference Hall, 

ICAI Bhawan, Baroda 

Fees : ` 100/- for Non-members 

2 

hrs 

TH 

9 BATCH OF ISA AT BARODA 

The 9th Batch of ISA is to tentatively commence 

from 20th November, 2010. Interested members 

are requested to register their names with CA 

Pradeep Agrawal, Secretary, Baroda Branch of WIRC 

on 098985 60967 

Members are requested to add Rs. 100 towards 

contribution to CABF in addition to the regular program fees. 

..... Send in your Compilation for Directory’2010 has 

data now started. Directory’2010 to be released by 

December’ 2010. Members are 

requested to fill in Data Form enclosed 

Members' with the Newsletter and submit to ICAI 

Bhawan, Baroda latest by 30th 

Directory 

2010 

November, 2010. 

Alternatively, avail the online facility 

available on www.baroda-icai.org and 

submit data online. 

Drop box facility for Registration : 

Members can avail drop-box facility by 

dropping their cheques for registration 

in Drop Box at 2-B Ramkrishna 

Chambers, BPC Road, Baroda. Kindly 

mention your name, membership number and the 

program for which registration is sought, on the 

backside of the Cheque. 

2nd Technical Session : 01:30 p.m. to 05:00 p.m. 

Life Cycle of Investment : Shri Jagdish Thakkar, Baroda 

Overview of Revised DTC : CA. Milin Mehta, Past Chairman, Baroda Branch 

Motivational Topic : Shri Animesh Bhatt, Baroda 


Income-Tax updates Compiled by CA. Narendra Hindocha 

1. Quarterly returns of tax deducted at source 

NSDL notified changes in data structure and 

validations for filing eTDS statements effective 

from statements due on October 15, 2010. In 

brief, this requires: 

- Quoting of valid P.A. No. in all cases, including 

cases of Nil deduction, except when the higher 

rate under section 206AA is applied. In cases in 

which such higher rate is applied, mark `C” to be 

placed in column for non-deduction/ deduction 

at lower rate. 

- In cases of payments to transporters made 

without deduction of tax for the reason that PA 

No. is submitted by them, remark `T’ to be placed 

in the column for non-deduction/ deduction at 

lower rate. 

- Email ID and telephone no. of deductor 

mandatorily to be stated. 

- In case of payment of TDS by book entry by 

Government deductors, the 7 digit and 5 digit 

code generated by TIN for accepted Form 24G to 

be stated. 

Statements to be validated by new FVU 3.00 

2. Reopening of assessments in pursuance of 

Supreme Court decision 

We would believe that when Supreme Court takes 

a view, it becomes final and binding and an 

assessment done earlier, if not in accordance with 

such a view, may be reopened. However, in case 

of Commissioner of Income Tax vs.M/s. Baer 

Shoes (India) Pvt. Ltd. Madras High Court held 

that this would amount to change in opinion held 

by the Assessing Officer earlier and that does not 

enable him to reopen a concluded assessment. It 

followed decision of the 

Hon'ble Gujarat High Court in Austin Engineering 

Co. Ltd. vs. JCIT (312 ITR 70) 

Which has taken the view that in a case where the 

material facts were fully disclosed and the 

assessment was completed allowing deduction 

under Section 80HHC on export incentive, such 

an assessment cannot be reopened based upon a 

subsequent decision of the Supreme Court, since 

it merely would amount to a change of opinion. 

3. Depreciation on Stock Exchange Card 

In CIT vs. Techno Shares & Stocks 323 ITR 69 the 

Bombay High Court considered the definition of 

an “intangible asset” in s. 32(1)(ii) and held that a 

stock exchange card was not an intangible asset 

eligible for depreciation. 

This judgement has been reversed by the 

Supreme Court and it has been held that a stock 

exchange card is a “license” and eligible for 

depreciation u/s 32(1)(ii). 

4. TDS from payments to Non-residents 

Karnataka High Court in CIT vs. Samsung 

Electronics 320 ITR 209 held that u/s 195 the 

payer was required to deduct tax at source form 

every kind of payment to non-resident and could 

not avoid the obligation taking a view that the 

payment was not chargeable to tax in the hands 

of the non-resident recipient. TDS could be 

avoided only after taking the Assessing Officer’s 

approval. The Supreme Court has reversed the 

judgement of the Karnataka High Court and the 

matter is remanded to the High Court for a 

decision on whether or not the payments were 

taxable in the hands of the non-resident recipient. 

5. Vodafone’s acquisition of Hutchison stake in 

Indian Operations 

In this high profile tax litigation, in one more 

decision, Bombay High Court gave a ruling 

against the assessee. In this case, Vodafone 

International Holdings of Netherlands acquired 

shares in CGP(Holdings) of Cayman Islands for US 

$ 11.2 billions from Hutchison Telecommunications 

International. The apparent view was 

that Indian Income-tax was not attracted in 

respect of income arising from this transaction, 

as the transaction represented transfer, outside 

India, of shares in a company located outside 

India, between two entities also resident outside 

India. The Income-tax Department appears to 

have done hard work and made out a strong 

case that what was apparent was not real for the 

reason that the transfer of share effectively 

transferred little more than shareholding in 

Indian company and also that apart from the 

transfer of shares in a company, the transaction 

also involved transfer of various rights relating 

to Indian operations and hence the income 

accrued in India. Apparently Vodafone will 

explore various other options to absolve itself 

from the liability and we may have many more 

rulings from different forums in respect of 

litigation in respect of various issues. For the tax 

practitioners, the case may change the way we 

understand the tax law and also the way we plan 

transactions and terms thereof and the way we 

draft the documents. 

Effective Leadership - Brian Tracy 

Complied by CA. Bimal R. Bhatt 

• Leadership is the ability to get extraordinary 

achievement from ordinary people. 

• Leaders are those who determine the Area of 

Excellence for the group. 

• Develop a bias for action, a sense of urgency, to 

get things done. 

• Lead the field! Start earlier, work harder and stay 

later. 

• Ask yourself continuously, “What can I and only I 

can do, that, if done well, will make a difference?” 

• Identify your areas of strength and concentrate 

on those areas in which you can make a major 

contribution. 


• Simplify the task. Continually look for faster, 

better, easier way to get the job done. 

• Be action oriented. Lead, follow or get out of the 

way. 

• Flexibility in a time of great change is a vital 

quality of leadership. 

• Get the facts! Not the apparent facts, the 

assumed facts or the hoped-for facts, but the real 

facts. 

• Trust your intuition-listen to your inner voice. 

• Dare to go forward. Courage is the mark of 

greatness in leadership. 

• Continually seek ways to increase productivity, 

performance and output. 

• Continually tell people how good they are and 

what a great job they are doing. 

• Manage by objectives. Tell people exactly, what 

you want them to do and then get out of their 

way. 

• Manage by responsibility. It is a powerful way to 

grow people. 

• Manage by exception. Only require reporting 

when there is a deviation from the plan. 

• Develop a clear Vision for your organization. 

Where do you want to be in five years? 

• What are your values? What do you stand for? 

Does everyone know? 

• Delegate the right job to the right person at the 

right time and be ready to change quickly. 

• Management is a mental game. The better you 

think, the greater the results you will achieve. 

• Keep people informed. Everyone wants to know 

what is really going on. 

Announcements for Members about CPE Hours 

Complied by CA. Rajesh Shah, Regional Council Member (Chairman – WICASA) 

A) CPE Credit requirement for a rolling period of 3 

years: 2008-10. 

1) The first calendar year 2008 of the three years 

rolling period is on the verge of completion by 

31-12-2010. 

2) Members holding Certificate of Practice (except 

those members residing abroad), unless 

exempted are required to complete 90 hours of 

CPE in each rolling period of three years, out of 

which 60 CPE credit hours should be of 

structured learning. 

3) Minimum 20 hours of structured learning in each 

year is compulsory. Balance 30 hours may be 

required of structured or unstructured learning 

during the rolling period. 

4) Members not holding Certificate of Practice 

(except those members residing abroad), unless 

exempted are required to complete 45 hours of 

CPE structured/unstructured in each rolling 

period of three years. Subject to 10 hours of 

structured/unstructured learning in each year. 

5) Members with age of 60 years and above and 

holding certificate of Practice (except those 

members residing abroad), unless exempted are 

required to complete 70 CPE credit of structured 

and unstructured in a rolling period of three 

years 2008-10. The structured CPE credit should 

be 10 hours in 2008, 20 hours in 2009 and 20 

hours in 2010. Balance CPE hours may be of 

structured or unstructured learning during the 

rolling period. 

6) Members with age of 60 years and above and not 

holding Certificate of Practice (except those 

members residing abroad), unless exempted are 

required to complete 35 hours of CPE 

structured/unstructured in each rolling period 

of three years. Subject to 5 years in 2008, 10 

hours in 2009 and 10 hours of structured 

learning in 2010. 

B) Few of the unstructured learning: 

1) Web-based learning modules (e-learning) 

2) Self learning modules & courses (audiotapes, 

videotapes, correspondence course, computer 

based learning programs. 

3) CPE Teleconferencing. 

4) Group or bilateral discussion on technical issues. 

C) Exempted from CPE: 

1) A member, for the year during which he gets his 

Certificate of Practice for the first time. 

2) On medical ground, but no blanket exemption is 

granted, relaxation on temporary basis decided 

by the CPE committee. 

3) Diseases covered u/s. 80DD of the Income Tax 

Act will be considered for purpose of granting 

exemption. 

ICAI Announcements 

Special Placement Programme through Video 

Conferencing Mode for Organizations functioning 

in Gulf Council Countries (GCC)/ Middle East, 

November - December, 2010 

The Committee for Members in Industry of the 

Institute of Chartered Accountants of India 

provides opportunity to the employers to interact 

with newly qualified Chartered Accountants 

providing a cost effective mode of recruiting newly 

qualified Chartered Accountants. 

Special Placement Programme is a step ahead as an 

extension to the same programme but with a 

different objective. For the first time CMII has taken 

an initiative to organize a separate Special 

Placement Programme through video conferencing 

mode for Chartered Accountants. Chartered 

Accountants are getting placed not only within the 

country but are also taking up jobs abroad. Many 

CAs are providing their services to the 

organizations in GCC/ Middle East. To facilitate 

employment of chartered accountant in the GCC/ 

Middle East, CMII of ICAI is organizing Special 

Placement Programme. 

This programme would enable the corporates 


working in Gulf Council Countries (GCC)/ Middle 

East to recruit Chartered Accountants through 

video conferencing mode from Chennai, Kolkata, 

Mumbai and New Delhi centres from India. 

Invitation to Chartered Accountants 

It has been decided to organise Special Placement 

Programme at 4 centres, viz., Chennai, Kolkata, 

Mumbai and New Delhi centres through video 

conferencing mode. A large number of leading 

organisations are expected to participate. 

The schedule of the Special Placement Programme 

is as below: 

Centre Registration 

of the 

Companies 

Chennai, 

Kolkata, 

Mumbai 

and 

New 

Delhi 

Upto 22nd 

November, 

2010 

Registration 

of the 

Candidates 

23rd 

November 

to 26th 

November, 

2010 

Short-listing 

by 

Companies 

1st 

December, 

2010 

Consent Interviews 

sending by 

Candidates 

2nd-3rd 

December, 

2010 

7th–8th 

December, 

2010 

Eligibility of candidates for Special Placement 

Programme 

Chartered Accountants fulfilling the following 

conditions are eligible to take part in Special 

Placements. 

1. Having the membership number of Institute as 

on 20th November, 2010. The membership 

number should be available with you and would 

be required for registration. 

2. Passed C.A. final examination on or before May, 

2010. 

The members who have got placements through the 

placement programme organized by the Institute 

between 01.10.2009 to 1.11.2010 are not eligible to 

apply. 

Invitation to Employers 

Corporates working in Gulf Council Countries 

(GCC)/ Middle East can now end their search by 

participating in Special Placement Programme 

wherein they would have access to a vast database 

of members of The Institute of Chartered 

Accountants of India. 

The event would provide an opportunity to 

companies to select Chartered Accountants as per 

their requirement criterion. 

Organisations intending to recruit Chartered 

Accountants through the above scheme of Special 

Placement Programme are requested to get in touch 

with Committee for Members in Industry, 

Indraprastha Marg, New Delhi - 110002, Tel. No. 

( 0 0 9 1 ) ( 1 1 ) 3 0 1 1 0 4 5 0 / 4 9 1 E - m a i l : 

placements@icai.org, mii@icai.in . 

An organisation can participate in one or more 

centres, as per its requirements. Firms of Chartered 

Accountants are also welcome to join. For further 

details please logon to www.cmii.icai.org . 

Chairman 

Committee for Members in Industry 

MOBILE PHONES – VIRUS 

Compiled by CA Pradeep Agrawal (Source : Internet) 

Background : 

Since the advent of the Internet, computer virus 

hoaxes have competed with computer viruses. The 

same is true for the mobile phone virus. There are 

real hoaxes, just as there are real viruses. One 

recent one had humor believing that, phone calls 

from Pakistan to Afghanistan would transmit an 

actual physical virus that could cause users to 

become sick. Mainly, you simply need to be worried 

about the viruses that might make your mobile 

phone sick. Installing antivirus programs makes 

good sense, especially if you want to keep your 

smart phones healthy. 

With the growth of the smart phone, mobile 

phones with Internet connectivity that work like a 

handheld computer, phone users have also seen 

the advent of the mobile phone virus. In 2004, the 

first mobile phone virus, called Cabir, was 

unleashed, and proved relatively safe. The virus 

form affected phones running Symbian operating 

systems (OS). It affected phones that were using 

Bluetooth, and once the virus was in the phone, it 

would seek out other Bluetooth capable devices, 

infecting them also. 

Meaning : 

A mobile virus is an electronic virus that targets 

mobile phones or wireless-enabled PDAs. 

As wireless phone and PDA networks become more 

numerous and more complex, it has become more 

difficult to secure them against electronic attacks 

in the form of viruses or other malicious software 

(also known as malware). 

History: 

The first instance of a mobile virus occurred in 

June 2004 when it was discovered that a company 

called Ojam had engineered an anti-piracy Trojan 

virus in older versions of their mobile phone game 

Mosquito. This virus sent SMS text messages to the 

company without the user's knowledge. This virus 

was removed from more recent versions of the 

game; however it still exists on older, unlicensed 

versions. These older versions may still be 

distributed on file-sharing networks and free 

software download web sites. 

In July 2004, computer hobbyists released a proofof-concept 

mobile virus named Cabir. This virus 

replicates itself on Bluetooth wireless networks. 

In March 2005 it was reported that a computer 

worm called Commwarrior-A has been infecting 

Symbian series 60 mobile phones. This worm 

replicates itself through the phone's Multimedia 

Messaging System (MMS). It sends copies of itself to 

other phone owners listed in the phone user's 

address book. Although the worm is not 


considered harmful, experts agree that it heralds a 

new age of electronic attacks on mobile phones. 

In August 2010, Kaspersky Lab reported the first 

malicious program named Trojan-SMS. Android 

OS. FakePlayer. a classified as a Trojan-SMS has 

been detected for smart phones running on 

Google’s Android operating system. It has already 

infected a number of mobile devices. It sends SMS 

messages to premium rate numbers without the 

owner’s knowledge or consent which can rake up 

huge bills. For a security concern, Android users 

are advised to download from a trusted source. 

Notable mobile viruses : 

Duts: A parasitic file infector virus and is the first 

known virus for the PocketPC platform. It attempts 

to infect all EXE files in the current directory 

(infects files that are bigger than 4096 bytes). 

Skulls: A trojan horse piece of code. Once 

downloaded, the virus, called Skulls, replaces all 

phone desktop icons with images of a skull. It also 

will render all phone applications, including SMSes 

and MMSes useless. 

Cabir: Infects mobile phones running on Symbian 

OS. When a phone is infected, the message 'Caribe' 

is displayed on the phone's display and is 

displayed every time the phone is turned on. The 

worm then attempts to spread to other phones in 

the area using wireless Bluetooth signals. 

Cabir was an example of a worm, a virus that 

replicates on other devices. Since Bluetooth only 

has a short range, the virus technically could only 

spread to other devices in close proximity, but, as 

people moved, they could technically encounter a 

lot of other smart phones on the move. The spread 

was quick and the virus is now present in 

numerous countries. Fortunately, this mobile 

phone virus only changed a few words, and didn’t 

affect operation of the phone, though the scanning 

for other Bluetooth devices could quickly drain the 

phone’s battery. Other viruses are not so innocent, 

and folks are worried that some viruses might be 

used to completely disable phones, charge 

customers (which has occurred with the 2006 

RedBrowser), or gather secure information about 

smart phone users. 

Commwarrior: 

First worm to use MMS messages in order to spread 

to other devices. Can spread through Bluetooth as 

well. It infects devices running under OS Symbian 

Series 60. The executable worm file, once launched, 

hunts for accessible Bluetooth devices and sends 

the infected files under a random name to various 

devices. 

Another worm making its appearance in 2005 was 

CommWarrior. It also sends out copies of itself 

through Bluetooth, and it can make automatic 

replies to texts, thus sending the worm on to other 

users. Doombot appeared in 2006, a Trojan horse 

virus that appears to be a downloadable cell phone 

copy of the game Doom 2. When it is downloaded 

onto a cell phone, it automatically installs both 

Cabir and CommWarrior, and then keeps the 

phone from operating properly. 

RedBrowser has been most expensive for people, 

especially in Russia, and is another example of the 

Trojan horse virus. It makes text calls to a phone 

number in Russia, which are then charged to the 

user. Another mobile phone virus that has many 

people concerned is Flexispy, a bit of spyware that 

sends logs of the phone calls you make to an 

Internet server. 

Conclusion: 

People are right to be concerned about the spread 

of mobile phone viruses to their phones, yet many 

who study and research this area find that most 

people don’t take basic precautionary measures. 

There are numerous security programs for mobile 

phones, and a lot of people don’t take the time to 

install them. Additionally, if you want to avoid 

viruses transmitted by Bluetooth, you can set your 

phone to “hidden” or “undiscoverable” mode, 

while you’re not using it. Taking precautions is 

excellent, and it’s a good idea not to accept or 

download any files you don’t recognize, especially 

if they come from an unknown user. 

Latest Developments in Banking, Finance, 

Commerce and Industry Compiled by CA Vihang Bakshi 

Indian Banks’ Association (IBA) Invites Bids for E- 

Registry Project: 

The IBA has opted to the fast track project of central 

electronic registry. This project will help to dodge 

multiple loans on the same property & will ensure 

non-selling of same property to the different 

customers. So, IBA invites bid to design & develop the 

registry system to implement registry in next six 

months. The registry will collect data from banks & 

financial institutes for all home loan transactions, & 

will help to general public to access any property’ 

status. This project has an initial investment of ` 25 

crores and will have joint holding of Central 

Government & National Housing Bank in the ratio of 

51:49. According to Mr. R. V. Verma, Executive 

Director, NHB, “when this project gets 

operationalized, it will significantly reduce scams in 

home loans segment”. This stand becomes 

compulsory due to scams around ` 600 crores. 

A Bit of Adhesive is All That’s Needed to Steal From 

ATM 

It could be mischief by swindler if you swipe your 

ATM card, enter you PIN & its screen goes blank, you 

hold there for some time, become impatient & leave 

the ATM in a huff. Fraudsters enter! A screwdriver & 

an adhesive are all that’s needed to outwit hi-tech 

safety gadgets. Assam police & Kolkata police has 

recently tracked 3 swindlers who have mastered the 

tampering of ATMs. They use adhesive to stick the 

keys of keyboard, so that it can not take its original 

position. They use a screwdriver to release the key, 


ATM starts working & they release the cash. CCTV 

camera shows that customer enters the PIN but can’t 

withdraw the money. 

Central Bank Opts For Flying Squads 

Central Bank of India has planned to engage retired 

officials of Public sector bank & RBI as Flying squad 

on surprise inspection for suspected branches. For 

this purpose they will use senior officers on 

contractual basis. The squad will ensure that correct 

certificates & reports are regularly submitted to 

controlling authority. An officer of the central bank 

said that they are trying to resolve fraud cases 

cumulating to ` 500 Crores. 

RBI Comes Down on Banks Over Misuse of 

Securitization 

The Reserve Bank of India has come down against 

banks using securitization, a system under which 

loans are sold to third party, to enhance liquidity and 

book profits. As a prudent practice, banks should 

apply regulatory instructions according to the 

substance of transaction rather than form. On the 

challenges, Gopinath said, though securitized paper 

issued by securitization SPVs has been recognized as 

‘security’ under SCRA, there are still some tax issues 

relating to recognition of pass-through structure of 

the SPV. It is also important to ensure that such 

investors have better access to essential information 

and less reliance on rating agencies. This will require 

dissemination of loan pool composition and ongoing 

performance detail. 

Pre-Deposit of Half the Loan must before Hearing 

Appeal 

Banks are the Trustees of public funds and they have 

a duty to recover debts by adopting all legally 

permissible methods, the Supreme Court stated while 

setting aside the judgments of the Madras High Court 

in the case, Indian Bank vs. Blue Jaggers Estates Ltd. 

According to the provisions of the securitization and 

Reconstruction of Financial Assets and Enforcement 

of Security Interest Act, the debtor must deposit half 

the amount claimed to be due before the tribunal 

hears his appeal against sale of securities. 

CIBIL Launches Database of Mortgaged Properties 

Credit Information Bureau Ltd, a repository of 

mortgage information, in consultation with National 

Housing Bank, launched the database that will 

contain information on properties against which 

owners have availed loans and comprehensive 

information on those properties. It will help lenders 

share and access mortgage information, exercise 

stronger due diligence and reduce fraudulent 

transactions. NHB has finalized the standards of 

valuation of residential property. Once it is approved 

by the Indian Banks Association, it would be applied 

by all banks and housing finance companies. This will 

ensure uniform valuation norms for all residential 

properties and also lay down norms for market 

intermediaries such as real estate brokers and agents. 

NHB is in talks with State governments to register 

equitable mortgages, but at a lower cost. CIBIL has a 

database of 160 million consumer or individual 

records and has already received over six million 

mortgage records from lenders. 

Banks Gross NPAs to Touch 3.5% by March 2011: 

CARE 

Reflecting the trend of a sizable chunk of 

restructured assets turning into bad loans, rating 

agency CARE sees Indian Banking Sector’s gross nonperforming 

assets at 3.5% of the gross advances by 

March 2011. It expects 15% restructured assets to be 

converted into NPAs, in FY 2011. Hence managing 

credit growth and asset quality while sustaining 

earnings growth would be key challenges for the 

banking industry. At the time of reviewing the 

banking sector’s performance for the nine months 

ended December 2009, CARE had projected gross 

NPA levels at 2.8% by March 2010, which actually 

stood at 2.5% as on 31st March 2010. Asset quality 

continued to deteriorate during April-June Quarter 

F.Y. 2010-11 with public sector banks witnessing 

higher level of slippages leading to pressure on their 

gross and net NPA ratios. 

Only 27 banks appointed BCs for Financial 

Inclusion. 

Out of 50 public sector and private sector banks, only 

27 banks have so far reported of engaging business 

correspondents. Most of the banks that have engaged 

BCs have appointed Section 25 companies have been 

floated by the technology service providers who had 

provided the smart card or biometric solutions for 

account openings, etc. RBI in its discussion paper, on 

the “engagement for profit companies as business 

correspondents” said that the BC model may evolve 

into two distinct patterns. Banks could enter into a 

separate agreement with corporates for using their 

retail network with specific responsibilities and 

functions to be performed by them for a fee. The RBI 

examined the pros and cons of appointing corporates 

as BC and examined that corporates with large and 

widespread retail network can bring in larger 

resources, higher organizational strength and 

financial backing needed for a large network of BCs 

besides providing financial security to the bank. 

RBI Not to issue Fresh Local Area Bank Licenses 

The RBI does not intend to issue fresh licenses for 

setting up local area banks (LABs), Parliament was 

informed. RBI is not considering allowing setting up 

of any local area bank in the country. RBI had 

introduced the Local Area Bank scheme in 1996 to 

encourage financial activities in unbanked areas. The 

scheme envisaged setting up of LABs with a minimum 

capital of ` 5 crores, to operate in an area comprising 

three contiguous districts. 

Credit Information Report Now Available to 

Borrowers 

The Credit Information Bureau (India) Ltd allows 

individuals access to their credit information reports. 

Home Loan seekers can access their credit 

information details prepared by CIBIL. CIBIL is an 

independent organization, and has access to credit 

information of individuals and commercial 

establishments. It collects information from its 

members, collates it and circulates it on request. CIRs 

of CIBIL have become an important tool for banks and 

housing finance companies. They provide vital 

information on the credit history of applicants. 


The 99 Club Compiled by CA Nayan Kothari 

Once upon a time, there lived a King who, despite his 

luxurious lifestyle, was neither happy nor content. 

One day, the King came upon a servant who was singing 

happily while he worked. This fascinated the King. Why 

was he, the Supreme Ruler of the Land, unhappy and 

gloomy, while a lowly servant had so much joy? 

The King asked the servant, "Why are you so happy?" 

The man replied, "Your Majesty, I am nothing but a 

servant, but my family and I don't need too much - just a 

roof over our heads and warm food to fill our tummies." 

The king was not satisfied with that reply. Later in the 

day, he sought the advice of his most trusted advisor. 

After hearing the King's woes and the servant's story, 

the advisor said, "Your Majesty, I believe that the 

servant has not been made part of The 99 Club." 

"The 99 Club? And what exactly is that?" the King 

inquired. 

The advisor replied, "Your Majesty, to truly know what 

The 99 Club is, place 99 Gold coins in a bag and leave it 

at this servant's doorstep." 

When the servant saw the bag, he took it into his house. 

When he opened the bag, he let out a great shout of 

joy... So many gold coins! 

He began to count them. After several counts, he was at 

last convinced that there were 99 coins. He wondered, 

Commitments Received under the Financial 

Assistance Scheme for CA Students (IPCC/Final) 

Name of 

Member 

No. of students 

sponsored 

Amount 

` 

CA. Manish Baxi 1 10,000 

CA. Mayur Swadia 1 10,000 

CA. Neena Patel 4 40,000 

CA. Rachana Parikh 1 10,000 

CA. Jay Chaira, RCM 5 50,000 

CA. S. R. Parikh 3 30,000 

CA. K. K. Shah 1 10,000 

Commitments Received under the Financial 

Assistance Scheme for CA Students (CPT) 

Name of No of Students Amount 

Member Sponsored ` 

C. D. Amin & 

R. J. Parikh Fund* 1 4,000 

Shantaben R. Parikh 

Fund* 1 4,000 

CA. Neena Patel 1 3,000 

*Commitments from the said funds are based on 

utilization of interest accruals from Corpus already 

available with the Branch in the said funds. 

Members desirous of contributing to the above 

scheme are requested to kindly contact the 

Chairman, Baroda Branch on +91-9327243479. 

"What could've happened to that last gold coin? Surely, 

no one would leave 99 coins!" 

He looked everywhere he could, but that final coin was 

elusive. Finally, exhausted, he decided that he was 

going to have to work harder than ever to earn that gold 

coin and complete his collection. 

From that day, the servant's life was changed. He was 

overworked, horribly grumpy, and castigated his 

family for not helping him make that 100th gold coin. 

He stopped singing while he worked. 

Witnessing this drastic transformation, the King was 

puzzled. When he sought his advisor's help, the advisor 

said, "Your Majesty, the servant has now officially 

joined The 99 Club." 

He continued, "The 99 Club is a name given to those 

people who have enough to be happy but are never 

content, because they're always yearning and striving 

for that extra 1 telling to themselves: "Let me get that 

one final thing and then I will be happy for life." 

We can be happy, even with very little in our lives, but 

the minute we're given something bigger and better, we 

want even more! We lose our sleep, our happiness, we 

hurt the people around us; all these as a price for our 

growing needs and desires. 

That's what is called joining The 99 Club! Let's be aware 

that unknowingly we don't join The 99 Club. 

Appeal for contribution to the Chartered 

Accountants’ Benevolent Fund 

Dear Members, 

Our Visionary President CA Amarjit Chopra has 

undertaken a mammoth task of enhancing the 

Corpus Fund of the Chartered Accountants’ 

Benevolent Fund. The CABF Fund has till date 

rendered exemplary service to the family members of 

a deceased member by providing one time financial 

assistance as well as regular monthly support in 

special cases. The need is however felt that such 

financial assistance needs to be enhanced 

substantially and for this very purpose we need to 

enhance the corpus of the CABF substantially. This 

indeed is a very noble task and it is our solemn duty to 

contribute to this noble cause. The members of 

Baroda Branch have always been very generous in 

contributing to cause of the Profession. It is hence we 

great hope that I request all Members to make 

contributions to the Chartered Accountants 

Benevolent Fund. Contributions to the CABF may be 

made by drawing cheques in favour of the Baroda 

Branch of WIRC of ICAI. The Baroda Branch shall 

thereafter forward your contributions to the CABF. In 

addition to single one time contributions, we can also 

make smaller contributions, wherein I would request 

that in addition to the regular program fees, Members 

may contribute Rs. 100/- per program additional, 

which shall be forwarded by the Branch to the CABF. 

I look forward to your support in this noble task. 

With personal regards, 

CA Rahul Parikh 

Chairman 

Baroda Branch of WIRC of ICAI 


GLIMPSES 

Day 1 : 07.10.2010 

CA Khushroo Panthaky, Mumbai 

Day 4 : 10.10.2010 

CA Chirag Doshi, Mumbai 

Day 2 : 08.10.2010 

CA Himanshu Kishnadwala, Mumbai 

Day 5 : 14.10.2010 

CA Vishal Doshi, Baroda 

Day 2 : 08.10.2010 

CA Chintan Patel, Ahmedabad 

Day 6 : 15.10.2010 

CA Mayur Choksi, Mumbai 

Day 3 : 09.10.2010 

CA Yagnesh Desai, Mumbai 

Day 7 : 16.10.2010 

CA Pratiq Shah, Mumbai 

NATIONAL WORKSHOP ON INTERNAL AUDIT ON 23.10.2010 & 24.10.2010 

Sitting on dais (from L to R) CA Rajesh Shah, Chairman, WICASA, CA Rahul Parikh, Chairman, Baroda Branch, Shri Ashok Dullu, Guest of Honor, CA Rajkumar Adukia, Chairman, 

Internal Audit Standards Board, ICAI & CA Ashish Parikh, Treasurer, Baroda Branch during the Inaugural Session 

Shri Ashok Dullu, MD, Integra India Ltd., Guest of Honor 

speaking on “Industry Perspective of Internal Audit” 

CA Dhinal Shah, Central Council Member 

speaking on “Case Studies in Internal Audit” 

2ND BATCH OF 7 DAYS INTENSIVE COURSE ON IFRS 

CA Rajkumar Adukia, Chairman, Internal Audit 

Standards Board, ICAI delivering his address 

CA Satish Shenoy, Head, Internal Audit, Reliance Retail 

Ltd. speaking on “Role of Internal Audit in Strengthening 

Corporate Governance” 

CA Chetan Dalal, Mumbai speaking on 

“Fraud Investigation in Internal Audit” 

STUDY CIRCLE EVENT 

CA Pathik Patel, Baroda speaking in Study Circle on 

12.10.2010 on “Understanding Cycles & Phases 

of Capital Market” 


th 

20 Residential Refresher Course 

Back Cover (Multi color) 

Inside Front Cover (Multi color) 

Inside Back Cover (Multi color) 

* Discount - 3 to 6 issue of 10%, 7 to 12 issue 15% 

* Circulated to more than 1300 Chartered Accountants 

Newsletter 

(Per Issue ` ) 

10,000 

7,500 

7,500 

If undelivered, please return to : 

Baroda Branch of WIRC of 

The Institute of 

Chartered Accountants of India 

“ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 12. 

Telefax : 0265-3266489 

E-mail: baroda@icai.in l info@baroda-icai.org 

www.baroda-icai.org l WIRC : www.wirc-icai.org l ICAI: www.icai.in 

Full Page (Single Color) 

Half Page (Single Color) 

CPE 12 

hrs 

The Baroda Branch of WIRC of ICAI is pleased to announce its 20th RRC (2011) 

at the Deogarh, Rajsamand District, Rajasthan during 7th (Friday) to 9th January, 2011 (Sunday) 

Venue: The Deogarh Mahal (www.deogarhmahal.com) 

About Deogarh Mahal 

Experience the Abode of the Gods. Experience living in Historical Splendor. Standing high on a plateau of the Aravalli Hills, the Mahal 

offers commanding views of the village, lakes and hills in the distance. Deogarh Mahal has a selection of luxurious suites and fine 

double rooms painstakingly restored to blend with the period and architectural style. The Rooms and their extremely large 

bathrooms have all the modern amenities but at the same time will provide you the experience of living as Royalty. Each Room has its 

own identity and decoration. Enjoy a variety of activities including the Jeep Safari in World War II vintage jeeps and trekking trips 

around the hills. 

The Mahal offers a variety of amenities including a heated Swimming Pool, Jacuzzi, Gym, Snooker Table, Table Tennis etc. 

DETAILED ITINERARY 

06/01/2011 Thursday Departure from Baroda by Suryanagari Express (2480) at 19.25 hrs by III Tier AC 

07/01/2011 Friday Arrival at Marwar Jn at 5.00 hrs and depart by Bus for Deogarh (Approx 1.5 hrs) 

07/01/2011 Friday Breakfast and Check in to Mahal. Morning available for relaxation and Mahal Tour. 

07/01/2011 Friday Inauguration and First Technical Session (14:00 hrs to 18:00 hrs) 

07/01/2011 Friday 19:30 hrs onwards Evening Party with Live Traditional Rajasthani Entertainment 

08/01/2011 Saturday Group Discussion & Technical Session (09:00 hrs to 13:30 hrs) 

08/01/2011 Saturday Jeep Safari (16:00 hrs to 18:00 hrs) and Evening Party (19:00 hrs onwards) at Fort Seengh Sagar 

09/01/2011 Sunday Morning Free for Train Safari or Trekking. Check out Rooms at 12:00 hrs 

09/01/2011 Sunday Brain Trust Session (13:00 hrs to 17:00) 

09/01/2011 Sunday Proceed to Marwar Jn. (Dinner on route). Departure for Baroda by Ajmer Bandra Express (2990) 

10/01/2011 Monday Arrival at Baroda Station at 07.05 hrs. 

Fees: Rs. 9,500/- per member on triple sharing basis on or before 15.12.2010 (Rs. 10,000 thereafter) 

Rs. 9,900/- per member on double sharing basis on or before 15.12.2010 (Rs. 10,400 thereafter) 

Rs. 15,000/- per member on single sharing basis on or before 15.12.2010 (Rs. 15,500/- thereafter) 

Above fees are inclusive of to and fro travel by Train in III Tier AC Coach and to & fro transfer between Marwar Junction & Deogarh. 

Cheques / DD payable at Vadodara are to be drawn on “Baroda Branch of WIRC of ICAI”. 

Newsletter 

(Per Issue ` ) 

Baroda Branch of WIRC of The Institute of Chartered Accountants of India NOVEMBER 2010 12 

5,000 

3,000

NEWSLETTER - Baroda Branch of WIRC of ICAI

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