E- News

letter

The Institute of
Chartered Accountants of India

Kurnool Branch (SIRC)

ज्ञानवाणी
Jnanavani

Volume: 1 | Issue: 02 | April-24

April – 2024 ICAI – Kurnool Branch (SIRC)

Index
S.No Segment Topic Page
No.

1 Chairman’s Message Message 02

2 Compliance Calendar Due Dates 05

3 TDS Rates TDS Rates 06

4 Members Corner Information System 09

Audit
5 Students Corner SA - 560 13

6 Business Corner Business 15

Performance
Management
7 Social Corner “From Heritage to 18
Horizon:Envisioning
Kurnool's
Development
Journey”
8 Upcoming Events 20

9 Gallery Program Glimpse 21

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 April – 2024
Chairman’s Message
Dear Members,
With the advent of the new financial year, I
extend my warmest greetings to all the
esteemed members of the Kurnool Branch of
ICAI. It's a time of fresh beginnings, renewed
aspirations, and boundless possibilities. As
we turn the page to this new chapter, I am
filled with optimism for the journey that lies
ahead. The transition into a new financial
year marks a period of reflection, renewal,
and revitalization. It provides us with the
opportunity to set new goals, forge new paths,
and elevate our collective aspirations.
Our branch has always stood as a bastion of
excellence, driven by the collective efforts and
dedication of our members. As we gather
momentum for the year ahead, let us reflect
on our achievements, learn from our
experiences, and set our sights on even
greater accomplishments.
Together, let us embrace the opportunities
that await us, leveraging our strengths,
expertise, and camaraderie to chart a course
towards success. Here's to a year brimming
with growth, prosperity, and shared
achievements.
2
ICAI – Kurnool Branch (SIRC)
The Kurnool Branch of ICAI celebrated the
Installation of the New Managing Committee
for the term 2024-2025 with great zeal and
enthusiasm. The event, held on 29th
February 2024 at Hotel Sign Regency, was
graced by esteemed dignitaries including
Chief Guest CA Geetha A.B, Chairperson of
SIRC of ICAI, and Guests of Honour CA
Prasanna Kumar D CCM and CA Cotha
Srinivas S CCM from ICAI. Special guests CA
Muppala Subba Rao, Secretary of SIRC of
ICAI, and CA Sunil Kumar Mandava,
Chairman of SICASA – SIRC of ICAI, along
with CA Chengal Reddy R, Ex-officio of our
Kurnool Branch, RCM - ICAI, added prestige
to the occasion. The presence of our valued
members from the Kurnool Branch further
enhanced the significance of this auspicious
event, marking the beginning of a new
chapter in our journey. Additionally, the
felicitation of Past-Chairmen of the branch for
their unwavering efforts and continuous
support added a touch of nostalgia and
gratitude to the proceedings, highlighting
their invaluable contributions to the growth
and success of our branch.
I am pleased to announce the formation of two
pivotal sub-committees: The first, the
Newsletter Committee, will be tasked with the
responsibility of compiling and disseminating
pertinent information and updates to our
members, ensuring effective communication
within our community. The second sub-
committee, the Continuing Professional
Education (CPE) Committee, will focus on
providing opportunities for our members to
further their professional development
through workshops, seminars, and other
educational initiatives. These sub-committees
are integral to the success of our branch, as
they will play pivotal roles in fostering
communication, learning, and growth among
our members.
In addition, I am honored to share that our
distinguished chief guest, CA AB Geetha,
Chairperson of the Southern India Regional
Council (SIRC) of the Institute of Chartered
Accountants of India (ICAI) along with other
Guests, graciously inaugurated our inaugural
 April – 2024
newsletter during the program. I encourage
each of you to actively participate in the
activities and initiatives outlined in this
newsletter, as together, we strive for
excellence and advancement in our
profession.
I am proud to announce the active
participation of our New Managing Committee
in the prestigious All India Managing
Committee Members meet (AIMCMM -2024),
organized by the Institute of Chartered
Accountants of India (ICAI). This event, held
on 9th and 10th of March 2024 at ITC Royal
Bengal, Kolkata, West Bengal, under the
theme of ‘DRISHTI’ – The Vision of the
Profession, provided a platform for aligning
the activities of our Regional Councils,
Branches, Study Circles & Chapters with the
overarching vision of ICAI.
Led by the dynamic leadership of CA Ranjeet
Kumar Agarwal, President of ICAI, and CA
Charanjot Singh Nanda, Vice-President of
ICAI, the AIMCMM -2024 brought together
CCMs, RCMs, Managing Committee
Members, Convenors of CPE Study Circles,
and Chapters from all ICAI branches. This
gathering served as a forum for exchanging
insights, sharing best practices, and charting
a collective course towards advancing the
profession.
The invaluable experiences and learnings
gained from this event will undoubtedly guide
our Managing Committee in aligning our
branch's activities with the broader vision of
ICAI, thereby furthering our commitment to
excellence and service to the profession.
Empowering our members with the latest
knowledge and skills is paramount for
professional growth, and the Kurnool Branch
of ICAI continues to uphold this commitment.
Recently, on 23rd March 2024, we hosted a
full-day Workshop on Bank Branch Audit,
organized by the Auditing and Assurance
Board of ICAI. The workshop, held at our
Branch Premises, featured esteemed
speakers CA Siva Prasad Annavarapu and CA
V Jawahar, who shared their expertise and
insights. This initiative aimed to enhance the
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ICAI – Kurnool Branch (SIRC)
proficiency of our members in bank audit
practices, equipping them with invaluable
tools and techniques to excel in their
professional endeavours. We extend our
heartfelt gratitude to the speakers and all
participants for making this event a
resounding success."
In celebration of International Women’s Day,
the Kurnool Branch of ICAI organized a
thought-provoking Women’s Day CPE
Seminar titled “Excellence@360” on 27th
March 2024 at Vasavi Mahila Kalasa. The
seminar featured esteemed speakers Dr. K
Sophie Rani MBBS, DGO and V Nagalakshmi
Devi, BA, LLB, PP for CID (Kurnool Dist), who
shared their insights on achieving excellence.
Additionally, the event showcased a video
message from CA Priti Paras Salva,
Chairperson of WMEC, ICAI, and a live
address by our very own CA Geetha A.B,
Chairperson of SIRC of ICAI, adding great
value to the occasion. We extend our sincere
gratitude to the management of Vasavi Mahila
Kalasa for graciously providing the premises,
as well as the Principals of Vasavi Mahila Jr
College and Vasavi Mahila Degree College for
their invaluable cooperation, which
contributed significantly to the grand success
of the program.
I am thrilled to share the success of our recent
Career Counselling Programme, held on 27th
March 2024 at Vasavi Mahila Kalasa. With
nearly 180 students in attendance, the event
showcased our commitment to guiding and
nurturing the next generation of
professionals. Under the expert guidance of
our dedicated career counsellor, CA Aytha
Syamala Gowri, students were provided with
invaluable insights into the diverse
opportunities within the field of accountancy
and finance. Such initiatives exemplify our
branch's dedication to empowering and
shaping the future leaders of our community.
In a bid to promote fitness and camaraderie
among our members, a friendly cricket match
was organized between the Members of
Kurnool Branch of ICAI and the Postal
Department team on 29th March 2024. The
 April – 2024 ICAI – Kurnool Branch (SIRC)

match took place at Mapir Cricket Ground,

Joharapuram Road, Kurnool, where members
showcased their sporting spirit and
enthusiasm. Such initiatives not only foster a
healthy lifestyle but also provide a platform
for networking and strengthening bonds
within our professional community. We
extend our appreciation to all participants for
their active involvement, contributing to the
success of this enjoyable event.
As we embark on a new month, let us carry
forward the energy and inspiration from
March. April presents us with fresh
opportunities to innovate, collaborate, and
strive for excellence. Together, let us seize
these opportunities and continue to elevate
our branch and profession.
I extend my heartfelt appreciation to each of
you for your dedication and contributions.
With our collective efforts, I am confident that
we will make April another month of
achievement and progress.

Thank you.
Warm regards,
CA R.Veera Shanmukesh
Chairman

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April – 2024 ICAI – Kurnool Branch (SIRC)

Compliance Calendar – April 2024

Due date Compliance Act

7th April 2024 TDS/TCS payment for the month of March 2024 Income Tax
Act

10th April 2024 Filing of Form GSTR 7/8 – Summary TDS/TCS GST
deducted & deposited respectively under GST law
for the month of March 2024.

11th April 2024 Monthly Filing of Form GSTR-1 for March 2024 GST

13th April 2024 Furnishing of GSTR 1 in Invoice Furnishing Facility GST

by taxpayers who opted for QRMP Scheme for the
month of March 2024.

13th April 2024 Filing of Form GSTR 5/6 for the month of March GST
2024.

15th April 2024 PF/ ESIC Payment for the month of March 2024. PF/ESI

18th April 2024 Filing of Form CMP-08 by Composition dealers for GST
Q4

20th April 2024 Furnishing GSTR-3B (Monthly) by Taxpayers who GST

have not opted for QRMP Scheme for the month of
March 2024.

20th April 2024 Furnishing GSTR-5A (Monthly) to be filed by a Non- GST

Resident OIDAR Service Providers for the month of
March 2024.

25th April 2024 ITC-04, Summary of Goods supplied to or received GST

from a job – worker
 Those with AATO greater than Rs.5 crore –
Half-yearly from October 23 to March 24, due
on April 25th, 2024.
 Taxpayers with an annual aggregate turnover
of up to Rs. 5 crore are required to file ITC-04
every year

30th April 2024 GSTR-4: Yearly Return for taxpayers who opted for GST
the composition scheme.

30th April 2024 Filling of Form MSME-1 a half-yearly return that GST
designated enterprises are required to file regarding
their outstanding payments to the MSME

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April – 2024 ICAI – Kurnool Branch (SIRC)

TDS Rates for F.Y 2024-25

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April – 2024 ICAI – Kurnool Branch (SIRC)

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April – 2024 ICAI – Kurnool Branch (SIRC)

8
 April – 2024
Members Corner
Information System Audit
In the present age of globalization,
Information Systems have become the
backbone for any organization whether the
field of its operations is manufacturing,
education, trading, technology or
entertainment, etc. Nowadays, the success of
any organization thrives on information that
is generated within the information systems.
Earlier computer systems were used to merely
record business transactions, but now they
are actually used for taking business
decisions for the enterprise. They are complex
and have many components coming together
to make a complete business solution. Their
usage into accounting systems changed the
way data was stored, retrieved and controlled.
IT auditing is the future of the accounting
profession. In today’s world, company
dynamics / financial state is determined by
the use of computers. The role IT auditors play
maybe unknown to most but it impacts the
lives of all. IT auditing adds security, reliability
and accuracy to the information systems.
Without IT auditing, we would be unable to
safely shop on the internet or control our
identities.
Although AASs issued by ICAI are primarily
concerned with the audit of financial
information, they can be adapted for the
purposes of Information System Audit
depending on its scope and objectives
Information System Audits are classified
under seven different areas for better
understanding. Areas of Information System
Audit are
1) ITGC Audit which covers the general
controls in IS department such as
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ICAI – Kurnool Branch (SIRC)
access controls, change management
and system development etc.
2) Application control audit covers the
areas of input, processing and output
controls.
3) Network security audit covers the
areas of access, functioning of network
and mobile devices security.
4) Data Migration audit covers data
mapping, data conversion and
operational changes relating to the
same.
5) BCM audit covers the risk assessment,
business impact analysis, preparation
of BCP and DRP, backup and
maintenance of BCP and DRP.
6) E- Commerce audit covers area of
risks, authorisation, data transfer, and
access in relation to e-commerce
activities.
7) Data centre audit covers change
management, equipments, backup
and environment controls in relation to
data centre
Out of above we shall now discuss about
Migration Audit and audit procedures with an
example in practical approach
Let us assume that XYZ Bank limited has
changed their CBS from “M” software to “N”
Software and appointed M/s ABC & Co to
conduct Migration Audit.
According to the Wikipedia, data migration is
“the transferring of data between storage
types, formats or computer system. it is
required when organizations or individuals
change computer systems or upgrade to new
systems
Below described procedures are completely
based on practical work conducted
XYZ bank limited has invited for proposal to
conduct migration audit describing scope,
approach, required qualifications, experience,
remuneration, duration (time lines) and other
requirements to conduct Migration Audit
 April – 2024
After receiving the proposal from bank M/s
ABC & Co has responded to the proposal
quoting there auditor qualifications, support
staff details, audit plan, audit procedures,
audit time lines (Nature – Time – Extent of
audit procedures), methodologies,
requirements from XYZ bank limited, nature
of data required for conducting audit, support
from software vendors and other things in
form of quotation along with above details
incorporated
XYZ bank limited finalises from various
proposals received and intimates to M/s ABC
& Co officially
M/s ABC & Co officially communicated Letter
of Engagement with all the details, relevant
terms & conditions
Once the LoE is accepted audit work will be
initiated
Migration Audit
Objective:
 To confirm all the data has been migrated
correctly from old software to new
software
 Post migration Audit
Data Requirements:
1) Last working day / Closing day at old
software
2) First Working day / Opening day at new
software
3) Date of migration
4) Date from which new software is live
5) Trail Balance, Balance Sheet, Profit &
Loss from both the softwares
a) Old software – on last day
of working
b) New software – on first day
of working
6) Account level balances reports of all the
ledgers from both software as on days as
prescribed above
7) Contract agreements with both software
vendors
8) Migration policy document if any
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ICAI – Kurnool Branch (SIRC)
9) Migration strategy document, procedures
related document if any
10) Account level balance reports shall be
obtained either in .csv / .xlsx note pads
Practical Approach:
 Size of audit team/ extent of audit/
duration of audit purely depends on size
of bank i.e, number of branches, number
of accounts, number of products(ledgers)
available with bank, number of services
received/ provided by bank
 Conduct a initial discussion (preliminary
investigation) with the audit to enquire
the above things
 Obtain TB/ P&L/ BS for each branch and
for the bank as consolidated from both
softwares as prescribed
 Also receive vendor agreements and look
for their authenticity. Look for migration
related procedures adopted if any
services provided/ Support provided in
case of data discrepancies
 Obtain data migration policy/ procedures
adopted of approved by management if
any document
 If there are any procedures adopted for
migration of data, analyse step by step
procedures adopted and validate the
appropriateness of the same.
 Our primary considerations in practical
approach is about
1. No loss of data
2. No duplication of data
3. Correctness of data
4. Verification of same at transaction
level data.
 After receiving TB from both softwares as
stated following observations has to be
done before starting Mapping transaction
from both softwares.
April – 2024
Observations to be made:
1. Chart of accounts from both softwares
2. Changes in numbering of GL codes
3. Change in names of GL if any
4. Merging of GL’s / Division of GL from
one software to another software
5. Whether the same chart of accounts
is followed at each branch level in
consolidated documents.
Workings:
1. Ensure data is received in .csv/ excel or
notepad formats
2. We need to preserve the original data in
its original condition  Primary &
mandatory concern.
3. Retain a copy of original data separately
4. Take a copy of original data and start
working on it
5. Towards first step we need to convert the
data in to excel formats for easy data
analytics & Mapping.
Useful Excel Formats:
1. Data import function
2. Convert text to columns function
3. Checking or converting the formats
[Date formats/ number formats/ Text
formats]
4. Pivot table  Very useful tool
5. Sum it/ Subtotal/ sum/ Trim/ Right/ Left/
concatenate/ If/ count/ Count if/
Convert/ ABS/ char/ clean/ count blank/
date/ day/ Len/ Vlookup/ Hlookup and
other hybrid formula can be used.
6. Data Transpose/ Date conversion etc.,
7. Before compiling data/ Data verification/
Data comparison, ensure the relevant
fields are in requisite formats  else
correct them to their requisite formats.
If this is not done, results are variable.
8. After data conversion ensure its
correctness with the original data by
performing column total/ number of
transactions/ row totals
9. Data correctness can be compared with
relevant GL balances available in original
data as well as from relevant TB
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ICAI – Kurnool Branch (SIRC)
10. Data conversion & data analysis to be
done branch wise and GL Code wise
11. For mapping between two sheets, we
need to identify one unique filed
available in both the sheets, if there is
nothing unique, we need to use existing
fields and create a hybrid one which can
be made unique
12. After confirming that data converted for
analysis & Mapping is correct, we need to
map the data b/w
i. Old software  New software
ii. New software  Old software
Mapping of data means tracing
transaction with details from one
software to another software for its
correctness.
Observations:
1. Old software  New Software
 Most of the transaction must have traced
to new software with exact balances
 Few transaction can be traced with excess
balances
 Few transaction can be traced with short
balances
 Few transaction may not get traced
2. New Software  Old Software
 Same as above should have been the
result
 Thing to remember is the number of
traced with exact balances, excess
balances, Short balances must be same
Reasons for differences:
 Exact reasons has to be validated by the
auditee.
 But before proceeding & communicated
with auditee we need to assure from our
end that the observations are genuine
and error free based on original data that
is received.
 Errors from our side that can be resolved,
possible reasons are
i. Check for availability of
complete data there could be
April – 2024 ICAI – Kurnool Branch (SIRC)

missing data of transactions from the auditee incorporate the same

with Zero balances/ inactive and prepare the final draft and
accounts/ dormant communicate with the auditee.
accounts/closed accounts.  Prepare ATR [Action Taken Report]
 Grouping or ungrouping of GL codes  beside audit report need to be
possibility continuously followed up with the team
 Errors in formats of data of the software for closing all the observations at the
 Lag in posting of transaction updates in earliest
real time for example accrual of interest  Once ATR is closed, with the approval of
on deposits/ interest on loans should board/ management the new software
have done in individual account level but can be continued in live environment by
the same, will not be updated in GL level, closing the old software.
which is due to absence of real time
processing
 Level of automation of processing the
transactions
 Level of real time processing and posting
to the GL, transactions
 Any default in migrating procedures
 Loss of data during migration process
 Duplication of data [Which can be
eliminated while checking the
CA Nagendra
completeness of data]

How to Deal with differences

 All the differences are moved to suspense

account or any parking account
 All the marked transactions are moved to
line environments.
 Ensure that until the completion of entire
migration audit both the old software and
new software are in live parallelly

Communication of Errors

 Draft of preliminary list of observations in

detail the transaction level/ GL level
 Provide as much clarity as possible
 Arrange a meeting with respective
member from auditee site
 Communicate our observations with
auditee clearly in a prescribed format
 Obtain clarifications from auditee
 As soon as the transactions are getting
corrected and completed, the same will
be moved out from suspense/ Parking GL

Reporting:

 After receiving all the replies/

confirmations/ Clarifications/ conclusions

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 April – 2024
Student’s Corner
SA 560 – Auditor’s Responsibility Relating
To Subsequent Events In an Audit Of
Financial Statements
Meaning - Subsequent events are favourable
and unfavourable events to the entity that occur
after reporting date.
1. As per IND AS 10 - the cutoff date for
considering subsequent events is the
Date of approval of financial statements
by the Board (Adjusting & non-adjusting
events).
2. But, in the context of Standards on
Auditing (SA), it is different.
3. Two types of subsequent events arise as
per SA 560.
a. Events occurring after reporting date
but before signing the Audit Report.
b. Facts known to the auditor after
signing Audit report i.e., to sign & to
put date on Audit Report.
i) Financial Statements along with
Audit Report are not yet issued by
the entity.
ii) Financial Statements along with
Audit Report are already issued by
the entity.
4. Events occurring after reporting date
but before signing the Audit Report :
a. The auditor has to perform audit
procedures for all the events till the
date of signing audit report.
b. The audit procedures include the
following:
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ICAI – Kurnool Branch (SIRC)
i) Inquiry with the management
about their process of identifying
subsequent events.
ii) Whether or not any subsequent
events have been identified.
iii) Read the minutes of Shareholders
and Board of Directors to detect
subsequent events, if any. If not
available, inquire about the
matters discussed in the meetings.
iv) Read the Latest Interim Financial
Statements for any subsequent
events.
c. The auditor has to verify whether all
the subsequent events occurred have
been properly identified, accounted,
presented and disclosed as per
entity’s applicable financial reporting
framework.
d. The auditor has to request a Written
Representation from the Management
as per SA 580 that the Management
that they acknowledge their
responsibility relating to subsequent
events and they have identified,
accounted, presented and disclosed
as per entity’s applicable financial
reporting framework.
5. Facts known to the auditor after
signing Audit report and before FS &
Audit Report are issued :
a. Generally, auditor shall not perform
any audit procedures after signing the
Audit report.
b. In exceptional circumstances, if any
facts existing prior to date of Audit
report comes to his knowledge
afterwards and in his view if such
facts were known to him before would
have caused him to give different
opinion/ different audit report, then
he shall perform additional audit
procedures.
c. The auditor shall perform the
following audit procedures:
i) Discuss with Management about
such facts.
ii) Assess whether FS are required
to be amended.
iii) How management are planning to
amend the FS.
April – 2024
d. Scenario 1 - Management amends
the FS (unless prohibited by law
or regulation) :
i) Auditor shall extend his audit
procedures covering the
subsequent events.
ii) He shall provide new audit report.
iii) He shall not put a date on his new
audit report until the management
approves the new financial
statements.
Scenario 2- Management doesn’t
amends the FS:
The Management doesn’t amend the
FS, even if it is required by Law or
regulation or Auditor says it is
required to amend, then
i) If the auditor has not yet provided
the audit report to the
management, then he shall modify
his opinion as per SA 705 and
hand it over to the entity,
ii) If the auditor has already provided
the audit report to the
management, then he shall
communicate with management
not to issue FS and Audit Report
without amending the FS. Further
he shall communicate to those
charged with governance as per
SA 260. If they don’t respond, the
auditor shall take appropriate
steps to prevent user’s reliance on
FS and Audit Report. (speak at
AGM and give public notice).
6. Facts known to the auditor after
signing Audit report and after FS &
Audit Report are issued :
a. Same as 6(a)
b. Same as 6(b)
c. Same as 6(c)
d. Scenario 1 - Management amends the
FS (unless prohibited by law or
regulation):
The management has to take necessary
actions to inform users not to rely on the FS
& Audit Report and to wait for new FS and
new Audit Report. The auditor shall perform
audit procedures as in 6(d) above and
provide new Audit Report.
Scenario 2- Management doesn’t take
necessary steps inform users as required in
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ICAI – Kurnool Branch (SIRC)
Scenario 1 above or doesn’t agree to amend
the FS even if it is required by law or
regulation or auditor says it’s required, then
:
The auditor shall communicate to those
charged with governance as per SA 260. If
they don’t respond, the auditor shall take
appropriate steps to prevent user’s reliance
on FS and Audit Report. (speak at AGM and
give public notice).
7. Other adjustments:
a. If there exists any adjustments in
amended FS that are not related to
subsequent events, then auditor may
either cover those adjustments or
may restrict his procedures to only
adjustments regarding subsequent
events only.
b. If he restricts his procedures to only
adjustments regarding subsequent
events only, then he shall in his audit
report shall mention-
i) Additional date along with Original
date and stating that he has
conducted audit procedures only on
adjustments that arose as a result
of subsequent events decribed in
Notes to accounts.
ii) Put an EMP or OMP stating that he
has restricted his audit procedures
solely to subsequent event
adjustments.
8. Conclusion: The auditor has to confirm
that all the subsequent events have been
identified, accounted and disclosed by the
management as per entity’s applicable
financial reporting framework. The
auditor has to ensure that users get
transparent data relating to entity and
take decisions accordingly.
Sruthi Dupam
CA-Final
 April – 2024
Business Corner
“Role of Business Performance
Management in Creating Value for
a Business”
Introduction:
It is axiomatic to say that a business exists to
create value for its owners. By serving the
needs of its customers in an efficient manner
and adapting to an ever-changing business
environment, businesses aim to generate
returns to their owners. But as organizations
grow larger and their operating environment
becomes more competitive, the cohesiveness
between organizational strategy, operating
plans and business performance can come
under pressure. When that happens,
organizations find that their strategy,
however well-defined, is no longer sufficient to
drive business performance. In this article, we
examine the role that a Business Performance
Management framework can play in such
situations to improve business performance.
Value creation in a business
It would be prudent to start with a primer on
value creation in a business.
Every business begins with the purpose of
solving a problem or meeting the needs of its
customers. It aims to achieve this either by
doing things differently from its competitors
(e.g., innovation) or doing the same thing but
in a more efficient manner than its
competitors (e.g. efficiency), or in rare cases,
doing both. By doing so, the business earns a
profit (or return) on the capital it has
employed in the business.
In financial terms, a business is generating
value when its Return on Capital Employed
(ROCE) is higher than its Weighted Average
Cost of Capital (WACC). WACC is the cost
incurred by the business in acquiring its
capital.
Although a simple proposition in theory, the
reality can be different. As Professor Aswath
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ICAI – Kurnool Branch (SIRC)
Damodaran points out in one of blog posts
from January 2019, “…Globally,
approximately 60% of all firms globally earn
less than their cost of capital, about 12% earn
their cost of capital and only 28% earn more
than their cost of capital. There is no region
of the world that is immune from this
problem, with value destroyers outnumbering
value creators in every region.”
Business Performance Management –
Concept
“Business Performance Management” as “a
set of performance management and analytic
processes that enables the management of an
organization’s performance to achieve one or
more pre-selected goals”.
In early 2000s, the term “Corporate
Performance Management” was coined as “an
umbrella term that describes the
methodologies, metrics, processes and
systems used to monitor and manage the
business performance of an enterprise”.
Conceptually, business performance requires
three essential elements:
a) setting of goals with an underlying
strategy
b) implementing the strategy to achieve
those goals and
c) measuring and reporting progress
against those goals
In this context, Business Performance
Management can be defined as a framework
that enables an organization to:
 define its goals and the strategy to
achieve them
 cascade its strategy, cohesively, to all
levels of the organisation
 define operating plans that clarify how
each department contributes to the
delivery of the strategy
 identify factors that are relatively more
important to the achievement of the
strategic goals than others
 April – 2024
 define targets for each department that
are properly defined, relevant and
measurable
 consistently measure the actual
progress against targets and provide
feedback.
Business Performance Management
Popular Frameworks & Methodologies
Some of the more common frameworks or
methodologies of Business Performance
Management are summarized below:
1) Balanced Scorecard
Balanced Scorecard was a framework
proposed by Robert Kaplan and David Norton
of the Harvard Business School in the early
1990s. The fundamental premise of this
approach was to go beyond simply measuring
the financial metrics of a business and to
achieve a balance between short-term and
long- term performance. The four
perspectives proposed by Kaplan and Norton
were:
(a) financial, (b) customer,
(c) internal, and (d) innovation and learning.
2) Total Quality Management, Six Sigma,
Lean, and Theory of Constraints
Total Quality Management became popular in
1980s to expand the concept of continuous
improvement from the factory shopfloor to
functions across the organisation. It enables
an organisation to maintain a high standard
of quality while being efficient with its cost.
Six Sigma is a related approach focusing on
managing quality. It was made famous by
Motorola in the 1980s. According to the ASQ,
Six Sigma is a method “that provides
organizations tools to improve the capability
of their business processes.”
Lean is a framework with a similar concept
that requires organisations to identify areas of
‘waste’ and eliminate them as customers
should not be paying for them. The ASQ says
that the distinction between Six Sigma and
Lean is getting blurred.
ICAI – Kurnool Branch (SIRC)
Business Performance Management:
Implementation Process
The typical process for implementing a
Business Performance Management
framework is as below:
Step 1: Strategic Planning:
–
Strategic Planning is the process by which a
business clarifies its vision, mission and
overall direction. The organisation’s
management is faced with the question: who
are we and what is our purpose?
This requires analysing industry trends and
customer preferences. It also requires
analysing internal capabilities and resources
required to meet customer requirements.
Step 2: Tactical Planning and Organisation
Structure
Once a strategy has been defined, the
management needs to implement it by
defining a set of clear operating plans across
the organisation. At this stage, the
management is faced with the question: how
do we achieve our purpose?
Operating plans provide clarity, so each
department knows what is expected of them
in the delivery of the overall business
strategy.
Step 3: Implementation, Measurement and
Reporting
As the operating plans begin to get
implemented through the business, quality
and efficiency become critical. Operating
policies and procedures within department
become important for conducting day-to-day
activities. Information systems enable
transactions to occur and record
transactional data.
Conclusion
The application of a Business Performance
Management framework enables
organisations to better understand the factors
that drive value. In doing so, they can focus
on those factors and build them in the
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 April – 2024 ICAI – Kurnool Branch (SIRC)

operating plans and activities, such that the

daily performance of the organisation is much
more aligned to the strategic direction of the
organisation. By enabling this cohesiveness
between the organisational strategy,
operations and performance measurement,
Business Performance Management can help
a business consistently generate value for its
owners.

CA. Baleswar
Gupta Aitha

17
 April – 2024
Social Corner
“From Heritage to Horizon:
Envisioning Kurnool's
Development Journey”
To the Esteemed Members of the CA Institute,
Kurnool Branch
As we stand on the cusp of significant political
milestones with the forthcoming Assembly
and Parliament elections, it's imperative that
we, as Chartered Accountants and proud
residents of Kurnool, unite for a cause that is
larger than ourselves. Our shared vision for a
brighter, more prosperous Kurnool compels
us to advocate for a comprehensive Public
Manifesto. This blueprint will pave the way for
sustainable growth and development in our
district.
Kurnool, with its rich heritage and strategic
location, is a land brimming with untapped
potential. However, to convert this potential
into tangible development, a well-structured
plan is needed, one that encompasses the
aspirations of all its constituents. This is
where our proposal for the Public Manifesto
comes into play, emphasizing the need for
specialized development across various
sectors such as logistics, IT services,
agriculture, tourism, and sports.
Our proposed approach includes conducting
seven meticulously planned meetings across
the constituencies of Kurnool District. These
meetings will serve as platforms for inclusive
dialogue, allowing us to gather valuable
insights, concerns, and suggestions directly
from the communities we aim to serve. The
culmination of these discussions will be a
grand meeting in Kurnool, where we will
consolidate our findings and articulate a
unified vision for the district.
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ICAI – Kurnool Branch (SIRC)
Key Highlights of Our Proposal
Include:
1. Constituency-Level Meetings: By organizing
meetings in each constituency, we aim to
engage with local stakeholders, understand
their unique challenges and opportunities,
and incorporate their visions into the broader
development agenda for Kurnool.
2. Final Consolidation Meeting in Kurnool:
This meeting will serve as the epicentre for
synthesising the insights gathered from the
constituency meetings into a cohesive and
comprehensive development manifesto for
Kurnool.
3. Establishment of the Kurnool Economic
Council: Post-elections, our efforts will focus
on the formation of an Economic Council
dedicated to the implementation and
oversight of the manifesto’s objectives. This
council will play a pivotal role in steering
Kurnool towards its developmental goals,
ensuring accountability, and fostering
collaboration among stakeholders.
4. Brand Kurnool: Inspired by the
developmental models of Surat, Pune, and
Coimbatore, we aim to elevate Kurnool to a
brand synonymous with innovation, startup
culture, and economic prosperity. This
initiative will focus on marketing Kurnool’s
unique assets on national and international
platforms, attracting investment, and
promoting tourism and cultural heritage.
As Chartered Accountants, we possess the
analytical skills, economic insight, and
ethical grounding to lead this transformative
journey for Kurnool. Our profession has
always been about more than numbers; it's
about fostering trust, promoting
transparency, and contributing to the
economic and social well-being of our
communities.
 April – 2024 ICAI – Kurnool Branch (SIRC)

Therefore, I urge each of you to join this noble

cause. Let us leverage our collective expertise
and passion for the betterment of Kurnool.
Share your ideas, participate in the
discussions, and be a part of this historic
movement to re-imagine and re-invigorate our
district.
Together, we can turn the tide of development
in favor of Kurnool, setting a precedent for
future generations and making our district a
beacon of progress and prosperity.
In unity and anticipation of our shared
success,

CA. Mohan Kadimpalli

Founder, Kurnool Development Forum

Author Can be reached at:

mohan.kadimpalli@gmail.com

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 April – 2024 ICAI – Kurnool Branch (SIRC)

Upcoming Events

20
 April – 2024 ICAI – Kurnool Branch (SIRC)

Gallery of Events

Oath Taking Ceremony for Year 2024-25

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April – 2024 ICAI – Kurnool Branch (SIRC)

Installation of the New Managing Committee for the term 2024-2025. The event was held
on 29th February 2024 at Hotel Sign Regency

Seminar on Bank Audit

A full-day Workshop on Bank Branch Audit, organized on 23rd March 2024

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April – 2024 ICAI – Kurnool Branch (SIRC)

Women’s Day Celebrations

International Women’s Day Celebration on 27th March 2024 at Vasavi Mahila Kalasa.

Career Counselling Programme

Career Counselling Programme conducted on 27th March 2024 at Vasavi Mahila Kalasa.

Kurnool CA’s Cricket Team

A friendly cricket match between the Members of Kurnool Branch of ICAI and the Postal
Department team held on 29th March 2024 at Mapir Cricket Ground, Joharapuram Road,
Kurnool

23
April – 2024 ICAI – Kurnool Branch (SIRC)

Felicitation to past chairman’s of Kurnool Branch

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April – 2024 ICAI – Kurnool Branch (SIRC)

INVITATION TO WRITE ARTICLES

Our monthly E-newsletter, “Jnanavani”, A Wave of Wisdom,"
welcomes contributions from Chartered Accountants, students, and
subject experts with a passion for academia and writing. We encourage
articles on diverse topics relevant to the accounting industry, covering
areas such as audits, finance, legal aspects, strategies, taxes,
technology, and more.

Submissions should adhere to the following guidelines:

1) articles should not exceed six pages, include a 100-word executive

summary, and provide unique and engaging content.

2) We invite contributors to share their insights and contribute to the

collective knowledge within our community.

Please send articles in word format to Kurnool@icai.org.

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 Follow us on
kurnoolbranchofsircoficai2483
Kurnool Branch of SIRC of ICAI
Icai Kurnool Branch
Kurnool Branch of SIRC of ICAI

Contact us
kurnool@icai.org +91 90305 00709

Road no.4, Above Karur Vysya Bank,

Venkata Ramana Colony, Kurnool