Rote learning by students and the Institute of Chartered Accountants in India's decision to have a "stringent grace marks" policy could be the reason behind the shocking dip in the final chartered accountancy (CA) results announced on Wednesday. Only 3.11% of the 32,536 candidates cleared it, the lowest pass rate in recent years.

Several students found the question papers on the tougher side. Even topper Gaurav Shrawagiclaimed the accounts paper was tricky. "One had to read the questions carefully before attempting them," he said. Delhi's Mridu Garg, who came second, also said, "It was more practical-oriented."

But ICAI president Subodh Agrawal reiterated that the results reflected students' performances and their way of studying. "Students need to focus on their articleship training very sincerely. They are supposed to study carefully the material provided by the institute to score better. Practical knowledge is the plus-point of articleship," said Agrawal. Kirti Agrawal, secretary of the Nagpur branch of the western region of ICAI, had also pointed out that students tried to memorize study material without understanding the basic concept. "Sheer reading without understanding and over-dependence on private coaching have scaled down the results. Students need to focus on how to acquire knowledge," she had said.

According to experts, the institute's "sudden decision to be strict with grace marks also led to the low pass rate". CA Arun Giri, who writes a blog on ICAI affairs, said, "Now they have seem to have decided to give grace marks only in rare cases, such as when there is a mistake in a question paper." But a sudden clampdown on grace marks will definitely affect candidates," said Giri.

When asked about the strict grace-mark policy, ICAI president Subodh Agrawal did not wish to comment. as "several policy issues were decided from time to time."

The president of ICAI, Subodh Agrawal, however, reiterated that the results reflect students' performances. "Students need to focus on their article-ship training very sincerely and also read the study material provided by the institute to score better. Practical knowledge is the plus point of article-ship," said Agrawal.

Those in the industry, however, seem to be happy with the low pass percentage as "the low number will ensure quality CAs". Professor J K Shah, who runs a chain of CA coaching schools, said, the low success rate is a good sign for the industry.

"The ICAI has corrected the problem in their exam system. Recently, the pass percentage was on the higher side, leading to an excessive supply of CAs. Qualified CAs were getting a starting package of not more than Rs 5,000-10,000 per month, Several were jobless," he said. Shah added there were more CAs coming out in the market than what met the eye. "The success rate of students who cleared individual groups was also as high as 25-30%. So if a student cleared group I, and clears the group II subsequently, he also is a CA. This year, the pass percentage in individual groups also is in single digit, which will keep a check on the quality," he added. (Times of India)