ICSI SYLLABUS: FOUNDATION PROGRAMME

Scheme of papers at Foundation stage will be as follows:

Foundation Programme
1. English and Business Communication
2. Economics and Statistics
3. Financial Accounting
4. Elements of Business Laws and Management

DETAILED COURSE CONTENTS FOR FOUNDATION PROGRAMME

Each paper will be of three hours duration and will carry 100 marks.
The medium of writing the examination will be English; provided that
it shall be competent for the Council to permit, subject to such
conditions as it may deem fit and after giving sufficient advance
information to the candidates, the use of Hindi as a medium of
writing for any particular subject(s). Candidates are expected to be
conversant with the amendments to the laws made up to six months
preceding the date of examinations.
 FOUNDATION PROGRAMME

PAPER 1: ENGLISH AND BUSINESS COMMUNICATION

Level of knowledge: Working knowledge.

Objective: To help students acquire competence in English to use the

language.

Detailed contents:

Part A: English (50 Marks)

1. Essentials of Good English
Grammar and usage; enriching vocabulary, words - multiple meaning, single
word for a group of words - choice of words - words frequently mis-spelt;
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 which are used in abbreviated form like “e.g., RSVP, viz. etc.”.
2. Essay Writing
Essays on matters of current interest on trade, commerce, industry and
profession.
3. Precis Writing
Preparation of summary of office notes; summary of matters appearing in
economic and commercial dailies and journals for use in committee meetings in
the office; summary of decisions taken in meetings and conferences.
Part B: Business Communication (50 Marks)
4. Business Communication
Meaning and significance of good communication; principles of business
communication; means of communication - oral, written, visual, audiovisual;
essentials of a good business letter, etc.
5. Business Correspondence
Personnel: drafting of interview letters, call letters and offer of appointment;
provisional appointment orders; final orders of appointment.
Purchase: requests for quotations, tenders, samples and drawings; test order;
complaints and follow-up.
Sales: drafting of sales letters, circular letters, preparation of sale notes with
conditions of sale; status inquiries; reports to sales manager such as sales
promotion matters.
Accounts: correspondence with various agencies: customers - regarding dues,
follow up letters; banks - regarding over-drafts, cash credits and account
current, insurance companies - regarding payment, renewal of insurance
premium, claims and their settlement.
Secretarial: correspondence with shareholders and debenture-holders
pertaining to dividend and interest, transfer and transmission, Stock
Exchanges, Registrar of Companies and various authorities like RBI, SEBI.
Miscellaneous: Resume, letter of application, goodwill messages, condolence
letters.
6. Administration and Miscellaneous
Drafting of telegraphic and facsimile messages, messages through electronic
media; public notices and invitations; representations to Trade Associations,
Chambers of Commerce and public authorities.
7. Inter-departmental Communication
Internal memos; office circulars; office orders; office notes; representation to
chief executive and replies thereto; communication with regional/branch offices.
8. Preparation of Press Releases.
PAPER 2: ECONOMICS AND STATISTICS

Level of knowledge: Basic knowledge

Objective: To provide basic and conceptual understanding of economic

concepts, principles of economics and statistical tools to interpret and analyse
various economic phenomena.

Detailed contents:

Part A: Economics (50 marks)

1. Nature and Scope of Economics
Definition, nature and scope of economics; micro and macroeconomics;
positive and normative economics; working of economic systems with special
reference to the capitalistic, socialistic and the mixed economies.
2. Demand and Supply Analysis
Utility analysis - Law of diminishing marginal utility; law of equi-marginal utility;
consumers’ equilibrium; law of demand; elasticity of demand; law of supply,
elasticity of supply; demand & supply equilibrium.
3. Production, Costs and Revenue Analysis
Factors of production, meaning of production, laws of returns; returns to scale;
cost concepts and cost curves; revenue concepts and revenue curves.
4. Market Forms and Equilibrium of the Firm and Industry
Market forms - meaning and characteristics; price and output determination and
equilibrium of firm and industry under perfect competition, monopoly and
monopolistic competition.
5. Basic characteristics of Indian Economy
Role of Agriculture, Industry & Service Sectors in the development of the Indian
Economy; National income of India – Concept, significance, trends and
measurement of national income.
6. Select Areas of Indian Economy
Population – size and growth and impact of population on economic
development; unemployment –nature, various measures to reduce it; foreign
trade and India’s balance of payments. Five Year Plans and economic
development; fiscal policy and national budget.
7. Money and Banking
Concept of money – its functions; Commercial Banks – role and functions;
quantity theory of money; credit creation; Reserve Bank of India and its
functions and monetary policy.
8. Economic Reforms and Liberalisation
Major economic reforms since 1991; Globalisation and its impact on Indian
Economy; concept of WTO- an overview.

Part B: Statistics (50 Marks)

9. Descriptive Statistics: Definition and functions of statistics, statistical
techniques commonly used in business activities, law of statistics, limitations of
statistics.
10. Collection and Presentation of Statistical Data: Primary and secondary
data; Classification and, tabulation of data; frequency distribution of data;
diagrams and graphs.
11. Measures of Central Tendency: Mean, median and mode, geometric
mean and harmonic mean.
12. Measures of Dispersion: Range, quartile deviation, mean deviation,
standard deviation.
13. Correlation Analysis: Meaning, significance, nature and types of
correlation; Karl Pearsons coefficient of correlation; rank correlation.
14. Index numbers and Time Series Analysis: Familiarisation with the
concepts relating to index numbers and time series (Simple Numerical
Problems).
PAPER 3: FINANCIAL ACCOUNTING

Level of knowledge: Basic knowledge

Objective: To familiarize and develop an understanding the skills of accounting

principles for effective recording of business operations of an entity.

Detailed Contents:
1. Introduction to accounting
2. Recording of transactions
3. Preparation of bank reconciliation statement
4. Rectification of errors
5. Preparation of final accounts (non-corporate entities)
6. Accounting for depreciation
7. Accounting for bills of exchange
8. Accounts of non-profit organizations
9. Single entry accounts - preparation of accounts from incomplete records
10. Accounting for consignments and joint ventures
11. Partnership accounts – simple problems
12. Insurance claims
PAPER 4: ELEMENTS OF BUSINESS LAWS AND MANAGEMENT

Level of knowledge: Basic knowledge

Objectives:
(i) To give an exposure to the students of some of the important commercial
laws, the knowledge of which is essential for an understanding of the legal
implications of the general activities of a modern business organisation.
(ii) To acquaint the students with the principles of management.

Detailed contents:

Part A: Elements of Business Laws (50 Marks)

1. Law
Meaning of law, its significance and relevance to modern civilized society;
sources of law.
2. Law relating to Contract – An Overview
Contract - meaning; essentials of a valid contract; nature of contract;
performance of contract; termination and discharge of contract; indemnity and
guarantee; bailment and pledge; law of agency.
3. Law relating to Sale of Goods – An Overview
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 ; unpaid seller - his rights against the goods
and the buyer.
4. Law relating to Negotiable Instruments – An Overview
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.
5. Law relating to Partnership – An Overview
Nature of partnership and certain similar organisations; co-ownership;
Joint Hindu Family; partnership deed; rights and liabilities of partners including
those of newly admitted partners, retiring and deceased partners; implied
authority of partners and its scope; registration of firms; dissolution of firms and
of the partnership.
6. Elements of Company Law
Meaning and nature of company; promotion and incorporation of a company;
familiarisation with the concept of Board of directors, shareholders and
company meetings; Company Secretary.

Part B: Elements of Management (50 Marks)

7. Nature of Management and its Process
Meaning; nature of management and its process; planning, organising;
directing; coordination and controlling.
8. Planning
Policies and procedures; methods of planning; decision-making.
9. Organising
Structure; principles and theories of organisation; span of management;
centralisation and de-centralisation; line and staff functions; delegation;
functional organisation; formal and informal organisation; growth in
organisation.
10. Staffing
Meaning; nature and functions of personnel management; selection, training
and development; performance appraisal.
11. Direction and Co-ordination
Communication; motivation, morale and leadership; internal and external co-
ordination; committees in management; management of change; organisation
development (O.D.).
12. Controlling
Concepts and basic control process; essentials of a good control system;
traditional and non-traditional control devices.
13. Social Responsibility of Business.

ABOUT OURSELVES
AIMS EDUCATION is a one stop solution for all your educational needs – Hobby
Courses, Educational Courses, Test Preparations and Professional courses. Belief in
the overall development of its students is the life-breath of this Institute. The Institute is
dedicated towards furthering student’s creativity, knowledge & performance in various
fields of Learning. The knowledge and skills that you will gain at our Institute will open
doors to a brighter future.
We are renowned for our best results in Indian Chartered Accountancy and Company
Secretary Course. We provide coaching for all levels and all subjects of CA, CS &
ICWA.
Educational enquiries are welcome from students of any country, in case he/she is
interested in gaining professional education in India. You can contact us at:
[email protected] for any sort of assistance we can provide.