More demand for CWAs

Rahat Bano interviews N Venkataraman, president, Institute of Cost and Works Accountant of India.

What’s the demand and supply of these professionals?

As an institution, we have completed 51 years. We have 48,000 members and two lakh students. Cost accountants are decently employed. The moment they pass the exams they are picked up by employers. Even in the slowdown last year, students got pay packages of Rs 4 lakh to Rs 6 lakh in campus placements.

The demand for cost accountants is expanding. About 1500-2000 cost accountants come out every six months. But the demand is greater. We are trying to catch up.

Reportedly, only about three per cent CWAs practise?

There is not much regulatory power given to us. But we are trying for that. An expert group headed by cost adviser BB Goyal in its report to the ministry of corporate affairs, suggested that all companies with a threshold limit of Rs 50 crore turnover or paid-up capital of Rs 10 crore must get cost audits done and maintain cost audit records. We hope that once this recommendation is implemented, the practice area will improve and boost the demand for cost accountants. We are expecting changes in the law, which would automatically require more companies to get cost audits done.

Also, the ministry is going to allow us to call ourselves cost and management accountants. It’s only because of a law that we are called cost and works accountants and it’s going to change soon.

Tell us about the certificate in accounting technicians.

There is a big demand for one million junior accountants. CAs and CWAs cannot fulfil all the requirements of the economy. To facilitate inclusive growth, we introduced the certificate course for 10+2-pass village youth who are trained to man small and medium enterprises, e-choupals, panchayats, etc. They may continue training to become cost accountants.


Author: HT Horizons
Date: 25th Feb., 2010

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