CMAs become strategic management accountants in corporate boardrooms

Hyderabad: Renowned accountants and board members of ICMAI addressed the media on the initiatives of The Institute of Cost Accountants of India (ICMAI), developing CMAs as key executives in the era of disruption; at a press conference in Hyderabad. CMA Ashwinkumar G. Dalwadi, Chairman, ICMAI, CMA Dr. K.CH.AVSN Murthy, Central Board Member, ICMAI and CMA Hima Vidya Sanagavarapu, Chairman, ICMAI, Hyderabad Chapter addressed a press meet in Hyderabad.

Ashwinkumar G. Dalwadi said that the role of Cost & Management Accountants (CMAs) has undergone a complete transformation over the years. Today, CMAs serve government, policymakers, industry and business in building a strong and resilient economy. CMAs play a crucial and decisive role in business activities and operations, allowing management to make effective decisions and propose corporate policies and plans. CMAs help organizations achieve their objectives by evaluating and improving the suitability and effectiveness of their operations, internal controls, governance processes, risk management and control systems. This helps entities improve their performance, efficiency, productivity, profitability and sustainability.

CMAs also help advise the government and various government agencies in areas such as cost accounting, pricing, formulating appropriate tax and fiscal policies and monitoring them. The importance of the profession of Cost and Management Accountancy in the economic development of the country is underlined by the fact that the Central Government established the Indian Cost Accounts Service in 1978, on par with other Class-I services such as IAS, IFS, etc. Further, under the Companies Act, the government has introduced a provision for certain industries, including the services sector, to maintain and audit statutory cost accounting.

With approximately 1,00,000 qualified CMAs and half a million students pursuing the CMA course, the Institute of Cost Accountants of India has emerged as the world’s largest professional body of cost and management accountants. ICMAI is at the forefront of developing competent cost accounting professionals who play a key role in helping business entities achieve cost competitiveness; improve performance, efficiency, productivity and profitability; ensure sustainability and improve the effective use of the resources they deploy. The CMAs also design cost-effective business models with life cycle cost benefits to remain consistent and perform with economic, environmental and social balance. Business entities are provided with professional vision and expert input allowing management to make effective decisions to demonstrate their ability to exist in a volatile, uncertain, complex and ambiguous business environment.

ICMAI has provided valuable support to policy makers and central government ministries and organizations in developing cost-efficient strategies, systems and manuals. ICMAI has recently developed an Activity Based Performance Costing system for Indian Railways that would help Indian Railways to measure and assess the performance of various activities or operations correctly and in a timely manner. The proposed performance costing system will also help the Indian Railways to arrive at appropriate pricing or tariff decisions for passenger and freight services; to identify profitable, loss-making and non-value adding activities; and to monitor and improve business planning, budgeting, resource allocation, resource utilization and investment decisions.

CMA Ashwinkumar G. Dalwadi said that over time, there has been a positive paradigm shift in our profession, which has evolved and undergone major changes in all aspects from curriculum to accountability. CMAs have become partners in nation-building, with their role shifting from cost accountants in factories to management accountants in boardrooms. There have also been many milestones for our profession, with CMAs now working in areas such as tax, corporate law, arbitration, insolvency, valuation, social auditing, independent governance, banking and insurance.

CMAs play a key role in supporting the government’s Atma Nirbhar Bharat initiative, which aims to help India become cost-competitive, capture export markets, catalyze broader employment generation and GDP growth – all of which are necessary to achieve the goal of the government to achieve an income of $5. Trillion economy.