CS FOUNDATION NEW SYLLABUS
Published On : 2019-09-03
New Syllabus for Foundation Programme
ICSI Notification No.4 (updated)of 2017
Introduction of New
Syllabus for the Foundation Programme of
the Company Secretaryship Course
The
Council of the Institute of Company Secretaries of India in exercise of the
powers vested under clause (a) of sub-section (2) of Section 15 of the Company
Secretaries Act, 1980, as amended by the Company Secretaries (Amendment) Act,
2006 approved the Syllabus (2017) for the Foundation Programme of the Company
Secretaryship Course, as under:
THE SYLLABUS FOUNDATION PROGRAMME SHALL COMPRISE OF
FOUR PAPERS.
PAPER
1: BUSINESS ENVIRONMENT AND LAW
PAPER
2: BUSINESS MANAGEMENT, ETHICS & ENTREPRENEURSHIP
PAPER
3: BUSINESS ECONOMICS
PAPER
4: FUNDAMENTALS OF ACCOUNTING AND AUDITING
PAPER
1: BUSINESS ENVIRONMENT AND LAW
Level
of Knowledge: Basic Knowledge
Objective:
To give orientation about different forms of organizations, functions in
organizations, usiness strategies and
environment, along with an exposure to elements of business laws.
PAPER 1: BUSINESS ENVIRONMENT AND LAW
PART A: BUSINESS ENVIRONMENT (40 MARKS)
1.
Business Environment
Introduction
and Features; Concepts of Vision & Mission Statements; Types of
Environment-Internal to the Enterprise(Value System, Management Structure and
Nature, Human Resource, Company Image and Brand Value, Physical Assets,
Facilities, Research & Development, Intangibles, Competitive
Advantage),External to the Enterprise(Micro- Suppliers, Customers, Market Intermediaries; Macro Demography, Natural, Legal &
Political, Technological, Economy, Competition, Sociocultural and
International); Business Environment with reference to Global Integration;
Comparative Analysis of Business Environment: India and Other Countries
2.
Forms of Business Organization
Concept
and Features in relation to following business models- Sole Proprietorship;
Partnership; Company; Statutory Bodies and Corporations; HUF and Family
Business; Cooperatives, Societies and Trusts; Limited Liability Partnership;
OPCs; Other Forms of Organizations.
3.
Scales of Business
Micro,
Small and Medium Enterprises; Large Scale Enterprises and Public Enterprises;
MNCs
4.
Emerging Trends in Business
Concepts,
Advantages and Limitations-Franchising, Aggregators, Business Process
Outsourcing (BPO) & Knowledge Process Outsourcing (KPO); E-Commerce,
Digital Economy
5.
Business Functions
Strategic-
Planning, Budgetary Control, R&D, Location of a Business, Factors affecting
Location, Decision Making and Government Policy; Supply Chain Objectives,
Importance, Limitations, Steps, Various Production Processes; Finance-Nature,
Scope, Significance of Financial Management, Financial Planning (Management
Decisions – Sources of Funds, Investment of Funds, Distribution of Profits);
Marketing- Concept, Difference between Marketing and Selling, Marketing Mix,
Functions of Marketing; Human Resources- Nature, Objectives, Significance;
Services- Legal, Secretarial, Accounting, Administration, Information and
Communication Technology; Social Functions.
PART B: BUSINESS LAWS (60 MARKS)
6.
Introduction to Law
Meaning
of Law and its Significance; Relevance of Law to Modern Civilized Society;
Sources of Law; Legal Terminology and Maxims; Understanding Citation of Cases
7.
Elements of Company Law
Meaning
and Nature of Company; Promotion and Incorporation of a Company;
Familiarization with the Concept of Board of Directors, Shareholders and
Company Meetings; Company Secretary; E-Governance
8.
Elements of Law relating to Partnership and LLP
Nature
of Partnership and Similar Organizations- Co-Ownership, HUF; Partnership Deed;
Rights and Liabilities of Partners- New Admitted, Retiring and Deceased
Partners; Implied Authority of Partners and its Scope; Registration of Firms;
Dissolution of Firms and of the Partnership; Limited Liability Partnership Act.
9.
Elements of Law relating to Contract
Meaning
of Contract; Essentials of a Valid Contract; Nature and Performance of
Contract; Termination and Discharge of Contract; Indemnity and Guarantee;
Bailment and Pledge; Law of Agency
10.
Elements of Law relating to Sale of Goods
Essentials
of a Contract of Sale; Sale Distinguished from Agreement to Sell, Bailment,
Contract for Work and Labour and Hire-Purchase; Conditions and Warranties;
Transfer of Title by Non-Owners; Doctrine of Caveat Emptor; Performance of the
Contract of Sale; Rights of Unpaid Seller.
11.
Elements of Law relating to Negotiable Instruments
Definition
of a Negotiable Instrument; Instruments Negotiable by Law and by Custom; Types
of Negotiable Instruments; Parties to a Negotiable Instrument Duties, Rights,
Liabilities and Discharge; Material Alteration; Crossing of Cheques; Payment
and Collection of Cheques and Demand Drafts; Presumption of Law as to
Negotiable Instruments.
12.
Elements of Information Technology Act
Cyberspace;
Cyber laws; Scope of Cyber Laws; Classification ofCyber Crime; Information
Technology Act 2000; Regulation of Certifying Authorities; Adjudication.
13.
Role of CS- Duties and Responsibilities, Areas of Practice
Introduction;
Role of Company Secretary under Companies Act, 2013- Role of Company Secretary
in Employment, Role of Company Secretary in Practice; Recognition to Company
Secretary in Practice under Various Laws.
PAPER 2: BUSINESS MANAGEMENT, ETHICS &
ENTREPRENEURSHIP
Level
of Knowledge: Basic Knowledge Objective: To acquaint with the basic principles
of management, ethics, communication techniques and entrepreneurship
PART
A: BUSINESS MANAGEMENT (40 Marks)
Nature
of Management and its Process
Meaning,
Objectives, Importance; Nature of Management- Science, Art, Profession;
Evolution of Management; Management Functions- Planning, Organising, Personnel
Management, Directing and Control; Principles of Management- Fayol and Taylor
Principles; Managerial Skills; Task and Responsibilities of Professional
Manager
1.
Planning
Concept,
Features, Importance, Limitations; Planning process; Types of Plans Objectives,
Strategy, Policy, Procedures, Method, Rule, Budget; Plan vs Programme Policies
and Procedures; Decision making
2.
Organizing
Concept,
Features, Importance, Limitations; Organising process; Types of Organisation;
Structure of Organisation; Centralisation and De-Centralisation; Delegation;
Growth in Organisation
3.
Human Resource Management
Concept,
Features, Importance, Limitations; Recruitment process- Selection; Training and
Development- Methods; Functions of Personnel Manager; Performance Management;
Appraisal Methods; Human Resource Planning,; Talent Management; Organization
Development
4.
Direction and Co-ordination
Direction:
Concept, Features, Importance, Limitations; Elements of DirectingSupervision,
Motivation, Leadership, Communication; Co-Ordination-Concept, Features,
Importance, Limitations; Co-Ordination Types- Internal and External;
CoOrdination- the Essence of Management
5.
Controlling
Concept,
Features, Importance, Limitations; Control process; Essentials of a Good
Control System; Techniques of Control- Traditional and Non-Traditional Control
devices; Relationship between Planning and Controlling
6.
Recent Trends in Management
Change
Management; Crisis Management; Total Quality Management; Risk Management;
Global Practices
PART B: BUSINESS ETHICS (10 MARKS)
7.
Business Ethics
Overview
of Ethics in Business; Elements; Ethical principles in Business- Indian and
Ancient Indian Perspective
PART C: BUSINESS COMMUNICATION (25 MARKS)
8.
Business Communication
Concept,
features, importance, limitations; means of Communication- Written, Oral,
Visual, Audio Visual; Principles and Essentials of Business Communication;
Process of Communication; Barriers to Communication
9.
Essentials of Good English
Grammar
and Usage; enriching vocabulary, words- multiple meaning, single word for a
group of words, choice of words, words frequently misspelt, punctuations,
prefix and suffix, parts of speech, articles; synonyms and antonyms, tenses,
idioms and phrases; foreign words and phrases commonly used; abbreviations and
numerals; pronunciation, Latin, French and Roman words used in abbreviated
form; Legal Terminologies- idioms and phrases
10.
Business Correspondence
Introduction;
Meaning of Business Correspondence; Importance of Business Correspondence;
Essential Qualities of a Good Business Letter; Parts of a Business Letter;
Types of Business Letters; Human
Resource; Purchase; Sales; Accounts
11.
Interdepartmental Communication
Internal
memos; messages through Electronic Media; Public Notices and Invitations;
Representations to Trade Associations, Chambers of Commerce and Public
Authorities
12.
E Correspondence
Concept
of E-Correspondence: Web, Internet; Concept of e-mail- History of E-mail,
Features; Electronic Mail System- optimizing personal e-mail use, proper E-mail
Correspondence, E-Mail Etiquette; Advantages and Disadvantages of E-mail;
Intranet- Benefits of Intranet, Purpose of Intranet
PART D: ENTREPRENEURSHIP (25 MARKS)
13.
Entrepreneurship
Four
Key elements of Entrepreneurship; Traits of an Entrepreneur; Characteristics of
an Entrepreneur; Who is an Entrepreneur; Why Entrepreneurship; Types of
Entrepreneur
14.
Entrepreneurship-Creativity and Innovation
Creativity
and Innovation in an Entrepreneurial organisation; Tools for Environment
Scanning- SWOT Analysis, PESTLE Analysis, Porters approach to Industry
Analysis; Environmental Scanning Process; Types of Environmental Scanning;
Market Assessment; Assessment of Business Opportunities- Developing, Effective
Business Plans, identification and evaluation of the opportunity, Determination
of the required Resources, management of the resulting enterprise
15.
Growth and Challenges of Entrepreneurial Ventures
Entrepreneurial
opportunities in contemporary business environment; Strategic Planning for
emerging venture- Financing the entrepreneurial Business, Resource Assessment-
Financial and Non-Financial; Fixed and Working Capital Requirement; Funds flow;
Sources and means of Finance; Managing the growing Business Effecting Change,
Modernization, Expansion and
Diversification
16. Social Entrepreneurship
Introduction;
Definition of Social Entrepreneurship; Who is a Social Entrepreneur; how to
identify a Social Entrepreneurship Opportunity; Creating a social business
model; Funding social ventures; Strategies for success; Challenges for the
Indian Social Enterprise Sector
17.
Government Initiatives for Business Development
Skill
India; Ease of Business; Start Up India; Stand Up India
PAPER 3: BUSINESS ECONOMICS
Level
of Knowledge: Basic Knowledge
Objective:
To familiarize the basic concepts and theories of economics, elementary
statistics and mathematics.
PART
A: ECONOMICS (80 MARKS)
1.
The Fundamentals of Economics
The
Economic Problem-Scarcity and Choice; Nature and Scope- Positive and Normative
Economics, Micro and Macro Economics; Central Problems of an Economy;
Production Possibility Curve; Opportunity Cost; Working of Economic Systems;
Economic Cycles
2.
Basic Elements of Demand and Supply
Demand-
Meaning, Demand Schedule, Individual and Market Demand Curve, Determinants of
Demand, Law of Demand, Changes in Demand; Supply- Meaning, Supply Schedule,
Individual and Market Supply Curve, Determinants of Supply, Law of Supply,
Changes in Supply; Equilibrium of Demand and Supply- Determination of
Equilibrium Price and Quantity, Effect of a shift in Demand or Supply;
Elasticity of Demand and Supply
3.
Theory of Consumer Behaviour
Cardinal
Utility Approach-Law of Diminishing Marginal Utility, Law of Equi-Marginal
Utility; Indifference Curve Approach- Indifference Curves, Properties of
Indifference Curves, Budget Line, Consumer’s Equilibrium
4.
Theory of Production and Costs
Theory
of Production- Factors of Production, Basic Concepts, Production Function, Law
of Variable Proportions, Returns to Scale; Producer’s Equilibrium- Least-Cost Factor
Combination and Output Maximisation for a given Level of Outlay; Theory of Costs-
Basic Concepts, Short-run Total Cost Curves- Fixed and Variable, Short-run Average
and Marginal Cost Curves, Relationship between Average and Marginal Cost Curve,
Average and Marginal Cost Curves in the Long-run
5.
Analysis of Markets
Basic
Concepts of Revenue, Revenue Curves, Relationship between Average and Marginal
Revenue Curve; Concept of Market and Main Forms of Market; Equilibrium of the
Firm- Meaning, Objectives of the Firm, Total Revenue-Total Cost Approach, Marginal
Revenue-Marginal Cost Approach; Price and Output under Determination Perfect
Competition, Monopoly, Monopolistic Competition and Oligopoly.
6.
Indian Economy- An Overview
Basic
Characteristics of the Indian Economy; Major Issues of Development; Development
Experience and Recent Trends in Indian Economy; Indian Economy in Comparison to
Major Economies of the World
7.
Basic Elements of Money and Banking
Concept
of Money-Its Functions, Quantity Theory of Money, Credit Creation; Central Bank
(Reserve Bank of India)-Role and Functions; Commercial Banks-Role and Functions;
Basic Elements of E-Banking; Monetary Policy in India
PART B: ELEMENTARY STATISTICS (20 MARKS)
8.
Descriptive Statistics
Statistics-
Definition, Functions, Scope, Application in Business, Law of Statistics, Limitations
of Statistics; Collection and Presentation of Statistical Data-Primary and Secondary
Data, Classification and Tabulation, Frequency Distribution, Cross Tabulation;
Diagrams and Graphs; Measures of Central Tendency-Mean, Median, Mode; Measures
of Dispersion-Mean Deviation, Standard Deviation, Range, Coefficient of
Variation; Bi-variate Analysis-Covariance, Coefficient of Correlation.
9.
Mathematics of Finance and Elementary Probability
Mathematics
of Finance-Simple Interest, Compound Interest; Time Value of Money Compounding
& Discounting, Present Value & Future Value of an Annuity; Probability-
Random Experiments, Sample Spaces, Events and Probability, Approaches to
Probability- Classical & Empirical; Expected Value.
PAPER 4: FUNDAMENTALS OF ACCOUNTING AND AUDITING
Level
of Knowledge: Basic Knowledge
Objective:
To familiarize and develop an understanding of the basic aspects of accounting,
auditing concepts and their principles.
PART
A: FUNDAMENTALS OF ACCOUNTING (70 MARKS)
1.
Theoretical Framework
Meaning
and Scope of Accounting; Accounting Concepts; Accounting Principles, Conventions
and Standards - Concepts, Objectives, Benefits; Accounting Policies; Accounting
as a Measurement Discipline - Valuation Principles, Accounting Estimates
2.
Accounting Process
Documents
& Books of Accounts- Invoice, Vouchers, Debit & Credit Notes, Day books,
Journals, Ledgers and Trial Balance; Capital and Revenue- Expenditures and Receipts;
Contingent Assets and Contingent Liabilities; Rectification of Errors
3.
Bank Reconciliation Statement
Meaning;
Causes of difference between Bank Book Balance and Balance as per Bank Pass
Book /Bank Statement; Need of Bank Reconciliation Statement; Procedure for Preparation
of Bank Reconciliation Statement
4.
Depreciation Accounting
Brief
of various Methods; Computation and Accounting Treatment of Depreciation (Straight
line and Diminishing Balance Method); Change in Depreciation Methods 5.
Preparation of Final Accounts for Sole Proprietors Preparation of Profit &
Loss Account; Balance Sheet
6.
Partnership Accounts
Goodwill-
Nature of Goodwill and Factors Affecting Goodwill; Methods of Valuation Average
Profit, Super Profit and Capitalization Methods; Treatment of Goodwill; Final
Accounts of Partnership Firms- Admission of a Partner, Retirement/Death of a Partner,
Dissolution of a Partnership Firm; Joint Venture and Consignment Account
7.
Introduction to Company Accounts
Issue
of Shares and Debentures; Forfeiture of Shares; Re-Issue of Forfeited Shares;
Redemption
of Preference Shares
8.
Accounting for Non-Profit Organizations
Receipt
and Payment Accounts; Income and Expenditure Accounts
9.
Computerized accounting environment
Basic
Utility of SAP, TALLY, ERP PART B: FUNDAMENTALS OF AUDITING (30 MARKS)
10.
Auditing
Concepts
and Objectives; Principles of Auditing; Types of Audit; Evidence in Auditing;
Audit Programmes
11.
Audits and Auditor’s Reports
Internal
Audit; Statutory Auditor- Appointment, Qualification, Rights and Duties; Secretarial
Audit- An Overview; Cost Audit- An Overview; Reporting- Types, Meaning,
Contents, Qualifications.
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