vasai branch of wirc newsletter - vasai-icai.org for the september 2015.pdf · mock test for ipcc...

www.vasai-icai.org September 2015T E A Mogether veryone chieve ore

NEWSLETTER

VASAI BRANCH OF WIRCT E A M

The Institute of Chartered Accountants of India

` 25/- For Members Only

Wish you a Happy Janmashtami, Ganesh Chaturthi & Bakri Eid to all of our members

Orientation Programme for New CAs held on 17th August 2015 at Bhayander

(L-R) CA. Vyas Vinodchandra (Speaker), CA. Umesh Mestry (Chairman-Vasai Branch) & CA. K. B. Kothari

(Vice Chairman-Vasai Branch) at the dais

Mock Interview Interview Session

Participants

Group Photo

CA. Umesh Mestry (Chairman-Vasai Branch) presenting bouquet CA. Amit Jain (Speaker) also seen by CA. K. B. Kothari

(Vice Chairman-Vasai Branch) and CA. Preksha Jain (Committee Member-Vasai Branch).

Campus Interview for New CAs held on 18th August 2015 at Mira Road

Speakers

CA. Amit N. Jain

CA. Vyas Vinodchandra

Ms Saloni Ganesh

Mr. Amod Amle

CA. Vrushal M. Chaudhari

Mr. Raghuvir Mukherji

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter2 September - 2015

PHOTO - GALLERY

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter September - 2015 3

thereafter. Students, however, should focus on the existing curriculum, since the implementation of Revised Scheme would be announced in quite advance.

ICAI Elections

The term of 22nd Council of the ICAI is set to complete very soon. Nominations will open from 3rd September and would be accepted till 24th September. Elections will be conducted on 4th and 5th December 2015. We appeal to our membership fraternity to participate in the election process and make judicious choices. In a democratic process, it is important that franchise is exercised in large numbers.

Forthcoming Events

Seminar on International Taxation & transfer Pricing-Branch has schedule half day seminar where the galaxies of speaker from Deloitte orgnaisations will make clear concept on International taxation and Transfer Pricing

Certificate Course on Concurrent Audit – The Internal Audit Standards Board of the ICAI is pleased to offer Certificate Course on “Concurrent Audit of Banks” to enable members to understand the intricacies of Concurrent Audit of Banks. By undergoing this Certificate Course you will be able to hone your skills in carrying out internal check of the transactions and other verifications and compliance with the procedures laid down. We request you to take advantage of said course by early enrolment. Commencement of said batch course in the month of November. Limited Seats only.

Mock Test for IPCC & Final CA Students – We, have always been taking several initiatives including providing academic inputs in the form of Study Material, Practice Manual, Suggested Answers, RTPs, etc., so that students can prepare well for the examinations. With a view to further encourage the students to evaluate their preparation for the examination; Branch is conducting Mock Test for IPCC & Final level students.

Debate Competition 2015 – Branch also schedule Debate Competition for students of classes XI & XII in the month of September. The Debate Competitions organsied by ICAI has been acclaimed by various stakeholders of the school children and instrumental in identifying thought leaders of tomorrow.

The will to win, the desire to succeed, the urge to reach your full potential... these are the keys that will unlock the door to personal excellence.

Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.

– Thomas A. Edison With Warm Regards

CA. Umesh P. Mestry Chairman

Dear Professional Collagues,This is one of the most holy months in the Indian calendar. By the time you receive this Newsletter we will in full mood of preparing for celebrating the festivals like Janmashtami, Ganesh Chaturthi, Micchami Dukkadam and Bakri Eid and would be preparing for the upcoming Navratri and Dussehra festivals.

I extend my wishes for these festivals to all Members, Students and their families

while at the same time ask everyone to imbibe the spirit of wisdom, righteousness and forgiveness as extolled by these festivals.

As you know, the ICAI holds campus placement programmes for the Newly-qualified Chartered Accountants twice a year, and an Orientation Programme before a placement programme to brush up their soft/technical skills so as to prepare them to effectively face the interviews. It is third time that Vasai Branch supported to Committee for Members in Industry in organizing placement programme for Newly-Qualified CAs. We are thankful to the organization like Deloitte Haskins & Sells LLP, Dorf Ketal Chemicals and Bassein Catholic Co-Operative Bank Limited for joining at Campus Interview and selecting fresher New CAs. This placement provides an opportunity – both to employing organisations as well as the young professional aspirants

Concerning students, an event which turned out to be a grand success was the CA Students Youth Festival. The purpose of this festival is to improve the liner instincts and personality of the CA Students. Huge Number of Students gathered in these grand events which help them to overcome their exam pressure.

To enhance the practical aspects of learning, branch has organsied Educational Visit at Head office of Bassein Catholic Co. Operative Bank Ltd. It is good platform wherein the students directly interact with concern officers of various departments of Banking Institutions.

Branch also successful conducted Workshop on Indirect Taxes jointly with Committee for Indirect Taxes, the sessions focused on subject like Declared Services, Negative List and Exemptions and Cenvat & Valuation related to Builders.

Branch also commenced Post Qualification on Information Systems Training Course jointly with Committee on Information Technology on 1st August with the participants of 42 Members at Bhayander.

If you remember, the ICAI had announced the Revised Scheme of Education and Training. Now it has made certain desired changes in the Chartered Accountants Regulations which are being sent for the mandatory approval of the Government. Once approved, the Scheme shall be open for public comments for 45 days. Simultaneously the finalisation of syllabus and transition Scheme is also being worked out. Study material as per the Revised Scheme shall also be prepared

CHAIRMAN’S COMMUNICATION

MANAGING COMMITTEE

CA. Umesh P. Mestry ChairmanCA. Kanhaiyalal B. Kothari Vice-Chairman

CA. Sumeet Doshi Secretary & TreasurerCA. Ramanand Gupta WICASA-Chairman

EDITORIAL BOARD

Editor : CA. Umesh Mestryl CA. Pramod Dhamankar l CA. Unmesh Narvekar l CA. Nidhi Kothari l CA . Bhanu Prakash Ashawa l CA. Anadi Bhase l CA. Rajesh Kotak l CA. Hemant Shah l CA. Lalit Munoyat l CA. Haresh Mehta

CA. Kishor Vaishnav Imm. Past ChairmanCA. Preksha Jain Committee Member


FORTHCOMING PROGRAMMES FOR MEMBERS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE12th Sept. 2015 Seminar on International

Taxation and Transfer Pricing 6.00 pm to 9.00 pm

Branch premises, Indralok phase-II, New Golden Nest Road, Bhayander (East)

CA.Hema Lohiya CA.Ajit Jain

CA. Kishor Vaishnav 9892194382 CA. Ravi Gupta 9819241018

` 100 3

7th Nov to 22nd Nov 2015 (Every Sat & Sun)

Certificate Course on Concurrent Audit of Banks

9.30 am to 5.30 pm

GCC Club, Mira Bhayander Road, Mira Road (East)

Eminent Speaker CA. K. B. Kothari 9594196090 CA. Sumeet Doshi 9869525956

` 12,500 36

FORTHCOMING - PROGRAMMES

Venue GCC Club, Mira Bhayander Road, Mira Road (East)

Day & Date 7th Nov to 22nd Nov 2015 (Every Saturday & Sunday)

Timing 9.30 am to 5.00 pmCPE 36 hrs.Fees Delegate fee ` 12,500 per delegate payable

by cheque/DD in favor of “Secretary, ICAI” payable at Delhi and should be sent to Vasai Branch at “Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayander (East), Dist-Thane Bhayander-401105” along with duly filled registration form available on link: http://220.227.161.86/29878iasbform19476.pdf

Course Chairman CA. Charanjot Singh Nanda(CCM & Chairman, Internal Audit Standards Board)

Course Co-ordinator CA. Umesh Mestry(Chairman, Vasai Branch of WIRC of ICAI)

For Registrations and Details Please contact

Mr. Khushmat JainPlease Contact (Branch Incharge, Vasai Branch of WIRC of ICAI)Contact No. : 07208099778, (022) 65568900/01/02.Email : [email protected]

Two Hundred First Batch of the Certificate Course on Concurrent Audit of Banks

Organized by :Internal Audit Standards Board of the ICAI

Hosted ByVasai Branch of WIRC of ICAI

Date TopicsNovember 7, 2015 Inaugural Session Loans and Advances Book Debts and Stock Audit

Prudential norms on Income Recognition, Assets Classification and Provisioning pertaining to Advances

November 8, 2015 Concurrent Audit ProceduresNovember 14, 2015 Treasury and Investment Function Part I

Treasury and Investment Function Part IIImplementation of Basel Capital Regulatory Requirements in India.Disclosure RequirementsBankers’ Panel Discussion (GMs of Banks to Address)

November 15, 2015 Legal and Regulatory Frame workKYC norms & Obligation of banks under Prevention of Money Laundering Act (PMLA 2002)Effective Concurrent AuditDiligence Reports of Banks

November 21, 2015 FOREX & TRADEFraud Detection, Classification and Reporting Discussion on Case Studies on Frauds Occurred in Banking Industries

November 22, 2015 Audit in CBS EnvironmentSoftware Usage in Banks – CBS DemonstrationObjective Assessment

Programme DetailsCertificate Course on Concurrent Audit of Banks

Programme Schedule

The Institute of Chartered Accountants of India(Set up by an Act of Parliament)

ANNOUNCEMENT3rd September, 2015

FOR ATTENTION OF MEMBERSIt is notified for general information of members that the List of Voters for election to the twenty third Council and twenty second Regional Council is available for sale effective from 3rd September, 2015 at a price of ` 1500/- (Rupees One Thousand Five Hundred only) per copy. The List can be had from the Sale Counter of the Branch on payment of ` 1500/- per copy in Cash/Demand Draft. The List of Voters is also available in CD at a cost of ` 500/- (Rupees Five Hundred only) per CD from the Head Office of the Institute at New Delhi and the respective Decentralised Offices at Mumbai, Chennai, Kolkata and Kanpur.

(V. SAGAR)RETURNING OFFICER AND SECRETARY


DIRECT TAXES – LAW UPDATE

— Compiled by — Haresh P. Kenia

|e-mail:[email protected] |9821351838

SECTION 14 OF THE WEALTH-TAX ACT, 1957 – RETURN OF WEALTH –

CLARIFICATION ON EXTENSION OF DUE DATE OF FILING RETURN OF WEALTH FOR A.Y. 2015-16

LETTER [F.NO.328/08/2015-WT], DATED 27-7-2015

In terms of Explanation to sub-section (1) of section 14 of the Wealth-tax Act, 1957, ‘due date’ of filing Return of wealth in relation to an assessee under the Wealth-tax Act shall be the same date as that applicable to an assessee under the Income-tax Act under the explanation to sub-section (1) of section 139 of the Income-tax Act. Central Board of Direct Taxes vide order under section 119 of the Income-tax Act F.No.225/154/ 2015/ITA-II dated 10-6-2015 has extended the ‘due date’ for filing Return of Income for assessment year 2015-16 in respect of assessees falling under clause (c) of explanation 2 to sub-section (1) of section 139 of the Income-tax Act from 31-7-2015 to 31-8-2015. In view of the same, the ‘due date’ for filing Return of wealth by such assessees for assessment year 2015-16 also stands extended from 31st July 2015 to 31st August 2015.

INCOME-TAX (TENTH AMENDMENT) RULES, 2015 - SUBSTITUTION OF FORMS ITR-3, ITR-4, ITR-5, ITR-6 AND ITR-7

NOTIFICATION NO.61/2015 [F.NO.-142/1/2015-TPL]/SO 2070(E), DT 29-7-2015

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. These rules may be called the Income-tax (Tenth Amendment) Rules, 2015

2. They shall be deemed to have come into force with effect from the 1st day of April, 2015.

3. In the Income-tax Rules, 1962, in Appendix-II, New FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7 shall be substituted for old forms.

INCOME-TAX (ELEVENTH AMEND-MENT) RULES, 2015 – INSERTION OF RULES 114F, 114G, 114H AND FORM 61B

NOTIFICATION NO.62/2015 [142/21/2015-TPL]/2155(E), DATED 7-8-2015

The Central Government with respect to registration of persons, due diligence and maintenance of information, and the Board for matters relating to statement of reportable accounts has made the above amendment. Details of the amendment can be obtained from above citation.

SECTION 90 OF THE INCOME-TAX ACT, 1961 – DOUBLE TAXATION AGREEMENT – AGREEMENT FOR EXCHANGE OF INFORMATION WITH REGARD TO TAXES WITH FOREIGN COUNTRIES – SAN MARINO

NOTIFICATION NO.63/2015 [F.No.500/02/-2003-FTD-I], DATED 12-8-2015

An agreement (hereinafter referred to as the said agreement) between the Government of the Republic of India and the Government of the Republic of San Marino for the exchange of information with respect to taxes was signed at Rome, on the 19th day of December, 2013. The date of entry into force of the said agreement is the 29th day of August, 2014, being the date


of the later of the notifications of completion of the procedures as required by the respective laws for entry into force of the said agreement in accordance with paragraph 1 of Article 11 of the said agreement. Paragraph 2 of Article 11 of the said agreement provides that the agreement shall enter into force on the date of later of the notifications and shall thereupon have effect forthwith. Now, therefore, in exercise of the powers conferred by section 90 of the Income tax Act, 1961 (43 of 1961), the Central Government hereby directs that all provisions of the said agreement between the Government of the Republic of India and the Government of the Republic of San Marino on the exchange of information with respect to taxes, as set out in the said agreement annexed hereto, shall have effect in the Union of India from the 29th day of August, 2014.

INCOME-TAX (TWELFTH AMEN-DMENT) RULES, 2015 - INSERTION OF RULE 126

NOTIFICATION 70/2015 [F.NO.142/12/2015-TPL]/SO 2240(E), DT 17-8-2015

In exercise of the powers conferred by Explanation 2 to clause (1) of section 6 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (Twelfth Amendment) Rules, 2015.

(2) They shall come into force with retrospective effect from the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in Part XV, after rule 125, the following rule shall be inserted, namely:—

‘126. Computation of period of stay in India in certain cases.—(1) For the purposes of clause (1) of section 6, in case of an individual, being a citizen of India and a member of the crew of a ship, the period or periods of stay in India shall, in respect of an eligible voyage, not include the period computed in accordance with sub-rule (2).

(2) The period referred to in sub-rule (1) shall be the period beginning on the date entered into the Continuous Discharge Certificate in respect of joining the ship by the said individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage.

Explanation: For the purposes of this rule,—

(a) “Continuous Discharge Certificate” shall have the meaning assigned to it in the Merchant Shipping (Continuous Discharge Certificate-cum-Seafarer’s Identity Document) Rules, 2001 made under the Merchant Shipping Act, 1958 (44 of 1958);

(b) “eligible voyage shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic where –

(i) for the voyage having originated from any port in India, has as its destination any port outside India; and

(ii) for the voyage having originated from any port outside India, has as its destination any port in India.’

DIRECT TAXES – LAW UPDATE


— Compiled by — CA. Hemant R. Shah | e-mail: [email protected] |9869011148

HIGH COURTS

1) Shri Thomas George Muthoot vs The Commissioner of Income Tax,

(High Court of Kerala at Earankulam)

TDS is to be deducted on both amount paid as well as payable Section 40(a)(ia)

[Income Tax Appeal no.278/2014, Date of Pronouncement 28/08/2014]

The Hon. High court has held that TDS, is to be deducted by individual who required to get his accounts audited. A statutory provision, unless otherwise expressly stated to be retrospective or by intendment shown to be retrospective, is always prospective in operation and the language of the Section 40(a)(ia) does not warrant an interpretation that it is attracted only if the interest remains payable on the last day of the financial year.

2) DIT vs. Lufthansa Cargo India, Delhi HC

Technical services utilized for making a source of income outside India is not taxable in India

[IT Appeal No.- 95/2005, Date of Pronouncement – May 27, 2015]

The Hon’ble Delhi HC in the case of Lufthansa Cargo India held that the fee for technical services would not be taxable in India where such services are utilized for earning income from any sources outside India.

Thus, where the assessee has paid overhauling and other charges paid for maintaining the aircraft in the flying condition as per the guidelines of DGCA to possess a valid airworthiness certificate, such charges are not subject to TDS U/s 195 because the aircrafts were wet leased to non-resident operating outside the same India.

3) CIT vs. Kabul Chawla (Delhi High Court)

Section 153A/153C: Entire law on the scope of additions that can be made in a pending assessment and in a completed assessment pursuant to a search U/s 132 explained

Completed assessments can be interfered with by the AO while making the assessment U/s 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment.

4) Pr. CIT vs. Control & Switchgear Ltd. (Delhi High Court)

Section 271(1)(c): Claim that compensation received from foreign party is a capital receipt, though wrong on merits, does not attract penalty if assessee disclosed facts in Return of Income (ROI) and was supported by a legal opinion.

These facts are sufficient to distinguish the present case from the facts in CIT Delhi v. Zoom Communication 327 ITR 510 (Del) where the Court observed that apart from a making wrong claim, the Assessee did so not on the basis of any advice given to it by an auditor or tax expert. Even in MAK Data P. Ltd. v. CIT 358 ITR 593 (SC), the Supreme Court held on facts that the Assessee there had no intention to declare its true income and no explanation was offered by it for the concealment of income. In the facts of the present case, the Court is satisfied that no error of law was committed either by the CIT (A) or the ITAT in holding that Explanation 1 to Section 271(1)(c) of the Act was not attracted. This was not a case of an Assessee furnishing inaccurate particulars.

TRIBUNAL DECISIONS

1) Shri Hasmukh N. Gala vs. Income Tax Officer, (ITAT, Mumbai)

(Income Tax Appeal no 7512/2013, Date of Pronouncement 19/08/2015)

If substantial amount for new property is paid, exemption u/s 54 is available even if actual construction is not completed:

RECENT CASE LAWS & – OTHER DEVELOPMENT/AMENDMENTS


In the case of Shri Hasmukh N. Gala vs. ITO, ITAT has held that if the assessee has invested substantial amount in new property, also received letter of allotment for new property, then the Assessing Officer (AO) can’t deny exemption available U/s 54 of the Income Tax Act 1961.

OTHER AMENDMENTS / UPDATES

1) Best Practices for scanning and uploading of attachments:

You may kindly note that whenever any document is uploaded to any e-Filing website , the following best practices should be complied:

Scan settings:

l Scan to a PDF

l Scan at 300dpi

l Scan in Black and White only

l Do not upload files with Read/Write/Password protection

Scanning Source Documents

l Scan the original document to avoid scanning copies and faxes

l Scan the document in A4 or Letter size only

l Scan multi-page documents together, in logical order

l Do not leave the tray cover open when scanning single pages on a flatbed scanner

Key points to avoid poor quality

l Documents with faint or faded text

l Handwritten documents that contain important identifying information such as PAN etc. making it difficult to read

l Documents with ink bleeding or smudging

l Clipped or cut forms that exclude important identifying information

Note: Department proposes to impose file size limits for uploaded documents. It is, therefore, strongly recommended to follow above mentioned guidelines.

2) CBDT Instruction No. 08/2015 Dt 31/08/2015 regarding Compulsory Manual Selection of Cases for Scrutiny during F.Y.2015-2016

The CBDT has issued Instruction No. 08/ 2015 dated 31/08/2015 to lay down the parameters for compulsory manual selection of cases for scrutiny during the Financial Year 2015-16.

3) Income Tax Return due date extended to 7th September, 2015

Government has extended the due date for filing of Income Tax Return for Assessment Year 2015-16 to 7th September 2015 from 31st August 2015 for tax payers who were required to file their tax-return by 31st July, 2015. It has been done considering hardships faced by taxpayer in E-Filing Returns of Income on the last date i.e. 31st August, 2015 due to slowing down of certain e-services. CBDT has already extended due date for Assessee of Gujarat to 7th September by its order dated 31st August 2015.

[F.No.225/154/2015/ITA.II, Government of India, Ministry of Finance, Department of Revenue, CBDT]

4) CBDT’s Directive on revival of Appeals dismissed due to low Tax Effect Circular:

The CBDT has issued a directive dated 27/08/2015 stating that in view of the judgement of the Supreme Court in CIT-VIII, Delhi Vs. Suman Dhamija, holding that the monetary limits specified in Instruction No. 3/2011 dated 09/02/2011 shall apply only to appeals filed after that date and not to the pending appeals. The Department should file Miscellaneous/Review Petitions to seek revival of the Department’s Appeals which have been dismissed on the interpretation that the said Instruction No. 3/2011 applies to pending appeals.

RECENT CASE LAWS & – OTHER DEVELOPMENT/AMENDMENTS


SUPPORT AND RESISTANCE

— Compiled by — CA Anadi Bhase

|e-mail:[email protected] |9890121996

Introduction Basics of support and resistance How Support and Resistance levels

reverse their roles

Psychology of Support and Resistance.

Introduction:

‘Support’ and ‘Resistance’ are two common words one comes across while studying about technical analysis. Knowing the basics of these two terms is significant as they occur time and again in technical study of market.

Basics of support and resistance:

Support-

During price movements, the troughs, or reaction lows are called support. Support is buying, actual or potential, sufficient in volume to halt a downtrend in prices for an appreciable period. The level at which price tends to find support when it is going down is known as support level.

Support is that area in the market where demand will outstrip supply. This means, in an uptrend, the price is more likely to “bounce” off this level rather than break through it. However, once the given level of support is broken, it is likely to continue dropping until it finds next support level. It is the level or area on the chart where buying interest is sufficiently strong to overcome selling pressure. Decline is halted and prices are assumed to turn up again.

Resistance-

A resistance level is the opposite of a support level. It represents a level or area on the chart where selling pressure overcomes buying interest and price advance is halted. Resistance is selling, actual or potential, sufficient in volume to satisfy all bids, stopping prices from going higher. Resistance is that area in the market where supply exceeds demand. However, once the price has passed this level, by an exceeding amount, it is likely that it will continue rising until it finds next resistance level.

Support and resistance levels can be identified by trend lines. In an uptrend, the resistance levels represent pauses in the uptrend and are usually exceeded at some point. In a downtrend, support levels are not sufficient to stop the decline permanently, but are able to check it atleast temporarily. For an uptrend to continue, each successive low i.e. support level must be higher than the one preceding it. Each resistance level must also be higher than the one before it.

How Support and Resistance levels reverse their roles:

One of the most interesting phenomena regarding support and resistance is when they tend to reverse their roles. It occurs when the price of the underlying asset is finally able to fall down beyond an identified support or raise above the resistance level. When this happens, it is not uncommon to see a previous level of support change its role and become a new area of resistance. In other words, a resistance level becomes a support level and support becomes resistance.

Let us understand the concept of role reversal more clearly through the real life examples of Infosys ltd and ITC ltd:


In the above chart, during the initial period from december 2012 to august 2013, the prices moved up and found resistance around line L1 on few occassions. However, the prices surpassed the resistance level L1 and moved up further until it found another resistance level at around line L2. The role of resistance is to push the price down, which it did. The price went down to find support at line L1 which was the previous resistance level. Thus, the earlier resistance level has changed its role from being a resistance to support. After may 2014, the prices again went upwards to surpass the earlier resistance level of line L2. It exceeded the resistance level L2 and since then on several times as you can see this line has provided a strong support. Here again the previous resistance level L2 has turned into support level. As resistance level of L2 is higher than the earlier resistance level of L1, it clearly indicates of an uptrend. Looking at the current scenario, the best level to buy would be around 960 with the anticipated resistance around 1170.

Similar role reversal can be seen in the following chart of ITC ltd.

Psychology of Support and Resistance:

Chart analysis is actually a study of human psychology and the reactions of traders to changing market conditions.

In a financial market, there are three categories of participants, at any given price level:

I) Those who are long and waiting for price to rise

II) Those who are short and hoping that price will fall

III) Those who have not decided which way to trade

As price rises from a support level, those who are long are happy. If the market would dip back near that support area again, they could add to their existing stocks. Those who are short in this situation are beginning to question their positions, and may buy to cover (exit the position) to get out at, or near, breakeven, if price reaches the support level again. The final group, the undecided, now realise that prices are going higher and resolve to enter the market on the long side on the next good buying opportunity. Hence all the groups resolve to buy the next dip. If all these participants do buy at this level, price will likely rebound from the support once again. The longer the period of time that prices trade in a support or resistance area, the more significant that area becomes.Conclusion:Stocks follow the path of least obstruction. When it meets with resistance, it will turn down and attempt to touch supports. If supports give way, prices will move more downwards. Identifying areas of supports and resistance helps to tentatively determine the future direction of stock price movements.

Educational Visit on 23rd August 2015 at Bassein Catholic Co. Operative Bank LTD-Vasai Road

CA Students Festival held on 22nd August 2015 at Bhayander


PHOTO - GALLERY

Celebrating Independence Day on 15th August 2015 at Branch Premises, Bhayander

Post Training on Information System Audit Course begin from 1st August 2015 at Bhayander

Workshop on Indirect Taxes held on 23rd August 2015 at Bhayander

(L-R) CA. Kunal Mody (Class Monitor-ISA Batch), CA. Umesh Mestry (Chairman-Vasai Branch), Dr. Sandhya Patil (Speaker) & CA.K.B.Kothari

(Vice Chairman-Vasai Branch) at the dais.

(L-R) CA. Kevin Shah (Speaker), CA. Umesh Mestry (Chairman-Vasai Branch) & CA. K.B.Kothari (Vice Chairman-Vasai Branch) at the dais.

Participants

Group photo

CA. Hetal Thakkar (Class Monitor-ISA Batch), Mrs. Srabani Kapoor (Sr. Faculty–WIRC) &

Dr. Sandhya Patil (Speaker) at the dais.

Dr. Sandhya Patil (Speaker)

CA. Vikram Menda (Speaker)


PHOTO - GALLERY

ANNOUNCEMENTOn Line Articles Placement Portal for selection of Articled Assistants by CA Firms

The Board of Studies of the ICAI has been providing Online Articles Placement facility for selection of Articled Assistants by CA Firms through its Articles Placement Portal on pan India basis. It provides a platform to the firms of Chartered Accountants having vacancies for Articled Assistants to shortlist eligible students for selection of articled assistants, and call them for Interview at their offices, as per date and time convenient to them. The eligible candidates who have passed Group-I or both Groups of the Intermediate (Integrated Professional Competence) Course or have been admitted under the Direct Entry Scheme and are willing to join articled training can register themselves on the portal. The services to the Online Placement Portal are available free of charge for both CA Firms and students and they can register themselves online through the Portal at http://bosapp.icai.org.

The services on the Portal would be available for two months, twice a year, from the date of registration by the firms. Similarly the bio data of a student will also be available on the portal for a maximum period of 2 months from student’s registration. The candidates shortlisted by CA Firms would be informed by e-mails through the Portal, to appear for interview at their respective Offices, at the designated date and time. Detailed guidelines are available at the institutes’ website www.icai.org and on the Portal. In case of any further clarification, please contact the Board of Studies, ICAI Bhawan, A-29, Sector-62, Noida-201309, Tel. No. 0120-3045930/931/988; eMail: [email protected].

Chairman, Board of Studies


To

Undelivered please return to :

The Institute of Chartered Accountants of India,Vasai Branch of WIRCAddress: Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayander (East), Thane - 401 105. Telephone: 6556 8900. Email: [email protected] Website: www.vasai-icai.org

Editor: CA. Umesh Mestry Published by Vasai Branch of Western India Regional Council of The Institute of Chartered Accountants of India and printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est., Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 4036 4600

The views and opinions expressed or implied are those of the authors or contribution and do not necessarily reflect those of Vasai Branch. Unsolicited articles and transparencies are sent in 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 Vasai Branch.

DISCLAIMER: The Vasai branch 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 provision of the Code of Ethics while responding to the advertisements.

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