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Indian economy has been growing at 9 %, in a sustained manner. The study of commerce holds a special interest in a growing economy. It also ensures multiple job openings in the field. Before you opt for a course in commerce, make sure that you have the right aptitude IF numbers excite you, and you enjoy reading and analysing numerical data, you can aspire to make a career in the financial and business world. Subjects like taxation, costing and accounting, statistics and business law will constitute your area of interest. The subjects offered Financial accounting: This subject would deal with the preparation of profit and loss statements, balance sheets and final accounts of a company, knowledge of Indian and international accounting standards, calculation of depreciation and valuation of shares and goodwill of a company.
Cost accounting: This would include process, job and contract costing, costing of overheads, standard and variance costing and budgetary control. Income tax: This would encompass the nature and basis of charge of income tax, tax planning, tax deduction, incomes not taxable etc. Auditing: This would deal with vouching, valuation and verification of transactions, assets and liabilities. It will also include studying the auditing of different organisations like clubs, hospitals and charitable concerns. Business finance: This would include in its scope financial analysis as a diagnostic tool, the management of working capital and its components as well as capital structure leverages. Business law: This subject would discuss the different laws in India relating to, among others, the Companies Act and the Consumer Protection Act. Marketing: This subject would deal with products, pricing methods, promotion, channels of distribution, logistics etc. Business communication: This subject focuses on the art of business correspondence —business letter writing, memo writing, notices etc. There are a number of career streams that open up for you once you opt for commerce. Here are some of the most popular choices: Chartered accountancy: A chartered accountant is responsible for auditing companies, stock brokers and income tax assesses. A student can join a CA course either after the 10+2 board examination by registering for the Professional Education (PE) I course (a 10-month course) or after graduating (with the specified percentage) by registering for the PE II course (also 10-months long). Cost accountant: The option of pursuing cost accountancy is open to any student of 17 years of age who has passed the Senior Secondary Examination (under the 10+2 scheme) of a recognised board. Company secretary: A person who is responsible for ensuring that the company meets its statutory obligations is called a company secretary. Any student who has passed the Senior Secondary (10+2) examination is eligible to apply for a company secretary course. Chartered financial analyst: A chartered financial analyst can operate in the areas of financial accounting, management accounting, financial management, investment management, security evaluation, project planning, venture capital management and credit rating. The course is a 3-year post graduation degree. Apart from the careers mentioned above, a person taking up commerce can also get into streams like advertising, marketing, banking, law and business consulting among many others. It’s just a matter of knowing your interests and applying for relevant course. Which course is best
for me? The difference is only in the depth of the subjects studied and the examination orientation. Chartered accountancy course`A0offers an in depth study relating to financial accounting, auditing and tax aspects. Cost`A0accounting course has an in depth study relating to cost and management accounting. Company secretaryship prepares you thoroughly for company law. Which course you take up dependents on what you are interested in and what you wish to specialise in. Depending on your ability, aptitude, career outlook, you need to choose the relevant course. Those who look at an independent career like practicing professional accounting, chartered accountancy would be better suited as the opportunities for practicing are more in that profession. This does not mean that there is no scope for private practice for cost accountants and company secretaries. They too have the option to carry on as practicing professionals. But the avenues available for them are far lesser compared to CA, CWA/ICWA and CS in that order are to be considered if you target this. Those who look at working in a manufacturing or production environment may look at cost accountancy as it provides an ample opportunity to think in terms of controlling costs using accounting techniques. Even chartered accountants and company secretaries study cost and management accountancy. But the objective of the course is specialisation in CWA/ICWA and having knowledge in CA and CS. Those who look at working in an administrative environment dealing with legal aspects may look at company secretaryship as it involves in depth aspects relating to company law and its application to companies. Even cost accountants and chartered accountants study corporate laws. But, they do not study it in as much detail and depth as a company secretary does. Even 90% is not
enough
The
New Money Bags There are currently only 20 lakh Insurance Advisors and just about 70,000 Mutual Fund Advisors for a population of 1.2billion. The scope for growth in the financial sector is phenomenal. A commerce graduate is well-equipped to enter the great Indian financial sector. The financial sector in India has become stronger in terms of capital flow and the number of aspiring investors. With no provision for social-security, for the rainy day, which is offered by most developed economies, and, the crumbling of old practices of saving, the young generation is anxious about creating financial security at a very young age. This translates into more openings for`A0jobs in the financial sector, for which a commerce student is well trained. Furthermore, the economy has become globally competitive and diverse, aiming at higher productivity and efficiency. Exposure to worldwide competition and deregulation in Indian financial sector has led to the emergence of better quality products and services in the financial sector. Reforms have changed the face of Indian banking and finance. The banking sector has improved manifolds in terms of capital adequacy, asset classification, profitability, income recognition, provisioning, exposure limits, investment fluctuation reserve, risk management, etc. Diversifying into investment banking, insurance, credit cards, depository services, mortgage financing, securitisation has increased revenues. But, the potential of all these sectors still remains almost unrealised. The scope of Insurance and mutual funds is immense in India. The penetration by mutual fund is only 2 to 3% in India as against over 80% in a country like the USA. Over 80% of Indian household saving goes into banks and earns less than inflation. There is a strong need for investors to earn higher than the rate of inflation, which can be earned consistently only through investment in share markets and mutual funds. Skilled fund managers, thus, are in much demand, as rate of inflation continues to grow, thereby devaluing the buying power of rupee. The stream of commerce prepares students for future expertise of a fund manager. Since more and more investors will look at mutual funds for a sound financial planning, the need for professionals from this field is bound to grow. With CFA ( certified financial analyst) exam, now also conducted in India, the possibilities of career diversification are immense. Same is the true for insurance sector; the penetration of this sector is only about 25% , out of which about 90% remain under insured. The government is also planning to raise the FDI limit to 74% from the present 49% to give further boost to this sector, which will further generate job openings in the industry. (The author is a city-based financial advisor)
Top of the pops Commerce colleges y
Sri Ram College Of
Commerce, Delhi y
GGDSD College, y
Kirori Mal College,
Delhi y
MCM DAV ( Women),
Chandigarh y
Jesus And Mary College
(Women), Delhi y
DAV College, Sector 10,
Chandigarh y
Hans Raj College,
Delhi y
Post Graduate
Government College For Girls, Sector-11, Chandigrah y
Saroop Rani Government
College for Women, Amritsar y
Government Bikram
College of Commerce, Patiala (Based on selected
lists from India Today, Outlook and other surveys)
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