Industrial Training for CA Students: All You Need to Know

Are you a CA student who has cleared your Intermediate (PC) Examination or PE (Examination-II) or Intermediate examination and completed at least 12 months of practical training? If so, you might be interested in Industrial Training!

Industrial Training offers a great opportunity for article assistants to gain experience in diverse industrial settings before becoming a qualified Chartered Accountant. It helps you explore career paths beyond traditional CA firms and understand how businesses operate from the inside.

This blog post will cover the guidelines for companies offering Industrial Training, how the training can be terminated, and other key details.

What is Industrial Training?

Industrial Training, as per Regulation 51 of the ICAI, allows eligible CA students to undergo practical training in various organizations. This training typically lasts between nine and twelve months. You can do this training in places like:

• Central or State Government offices • Central statutory and judicial authorities • Regulatory bodies • Banking companies • Other government departments, institutions, or organizations approved by the Council • Financial, commercial, or industrial undertakings that meet certain financial criteria

Guidelines for Companies Offering Industrial Training

For a company to offer Industrial Training to CA Article Assistants, it needs to meet specific requirements:

1. Financial Standing: The company should be a financial, commercial, or industrial undertaking with:

   • Minimum fixed assets of ₹1 crore; OR
   • Minimum total turnover of ₹10 crores; OR
   • Minimum paid-up share capital of ₹50 lakhs.
   • Other similar organizations may also be approved by the ICAI Council.

2. Proof of Eligibility: Companies must upload a copy of their printed, published, and audited balance sheet from the immediate previous year. This balance sheet needs to show a minimum total turnover of ₹10 crore as proof of their eligibility, along with the online application for registration.

3. Self-Declaration Option: If a company registering for Industrial Training, even if eligible, cannot submit an Annual Report or Balance Sheet, they can provide a self-declaration about their financial details. This self-declaration should be made by the company's member along with the application.

4. Qualified Trainer: The Chartered Accountant responsible for imparting training within the company should be an Associate or Fellow Member of the Institute for at least three continuous years. Such a member can train two Industrial Trainees at a time (whether they are article assistants or audit assistants). In the case of government bodies, institutions, or organizations, an officer who is also an ICAI member can impart the training.

5. Member Employment Record: The employment of the ICAI member providing Industrial Training must be on record with the Institute to determine their association with the company. If it's not, the member needs to update Form 190A in the Self Service Portal.

6. Company Registration: Companies interested in providing Industrial Training must first register themselves with the Institute. The members of the company can follow these steps for registration:

   • Member Log in
   • Membership Functions
   • Member Module
   • Other Forms
   • Organization Empanelment/Addition form.

Terminating Industrial Training Before Completion

Industrial Training can be terminated before its completion under certain circumstances:

• Death of the principal (the CA supervising the training). • Resignation of the Principal (if the principal leaves the organization). • Removal of the Principal's name from the Register of Members.

In such cases, the student must submit Form 105 for termination. This process updates the leaving details or death intimation of the previous principal/membership status in the Self Service Portal (SSP).

Key Points for Industrial Trainees

• Stipend: The minimum monthly stipend for an industrial trainee is ₹15,000. • Notice Period: An articled assistant must inform their Principal about their intention to undergo Industrial Training at least three months before the training starts. • Foreign Training: An articled assistant can also serve as an industrial trainee for six to twelve months in a foreign country under an accountancy body recognized by the International Federation of Accountants (IFAC). A member can also depute a trainee for industrial training for up to three months in a foreign country.

Industrial Training is a fantastic way to broaden your horizons and gain valuable experience in the corporate world. Many students look for suitable firms offering such opportunities. CAnnect.in is a platform that connects CA students with CA firms offering articleship opportunities, and it can also be a helpful resource for finding such training roles.

The above information is based on the ICAI training guide February 2025 edition. For the latest updates, please refer to the official ICAI website.